Oral Answers to Questions Debate

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Department: Scotland Office

Oral Answers to Questions

Alistair Carmichael Excerpts
Wednesday 25th February 2015

(9 years, 2 months ago)

Commons Chamber
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Baroness McIntosh of Pickering Portrait Miss Anne McIntosh (Thirsk and Malton) (Con)
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1. What recent discussions he has had with the First Minister on the supply of energy in Scotland; and if he will make a statement.

Alistair Carmichael Portrait The Secretary of State for Scotland (Mr Alistair Carmichael)
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I have regular discussions with colleagues on issues affecting the energy sector in Scotland, including with the Scottish Government on energy supply issues.

Baroness McIntosh of Pickering Portrait Miss McIntosh
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People in north Yorkshire have noted with great interest that the Scottish Government have banned fracking for the moment. Will my right hon. Friend update the House on progress towards a debate on energy supply not only for Scotland, but for the whole of the United Kingdom?

Alistair Carmichael Portrait Mr Carmichael
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My hon. Friend’s key words were “for the moment”. The Scottish Government have come forward with a moratorium, and I am sure that we shall all watch the debate with keen interest. I remind her and the House that we removed the Scottish provisions from the Infrastructure Bill, and that the power to license onshore exploration for oil and gas will be devolved under the Scotland Act that will come after the next election.

Brian H. Donohoe Portrait Mr Brian H. Donohoe (Central Ayrshire) (Lab)
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When the Secretary of State meets the First Minister, will he get information—this is not in the public arena—on how much compensation is being paid to wind farms in Scotland from his and my electricity bills as a consequence of the fact that they are, in my view, inefficient?

Alistair Carmichael Portrait Mr Carmichael
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I am sure that if the hon. Gentleman seeks that information from my right hon. Friend the Secretary of State for Energy and Climate Change, it will be forthcoming.

Charles Kennedy Portrait Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)
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I am sure that the Secretary of State, as a highlands and islands MP, will share the sense of anger and injustice at SSE’s 2p surcharge on electricity costs, given that it made a profit of £1.5 billion last year. Will he do everything possible at the UK level to ameliorate this state of affairs, not least by endorsing the excellent campaign by The Press and Journal?

Alistair Carmichael Portrait Mr Carmichael
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I rarely have any difficulty in endorsing a campaign run by The Press and Journal. The question of the price being paid by electricity consumers across the highlands and islands is complex, but I know that we all benefit from being part of the wider UK energy market.

Angus Robertson Portrait Angus Robertson (Moray) (SNP)
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Scottish generators, including Longannet, provide 12% of the electricity going into the British network, but pay 35% of the transmission charges. The Secretary of State has been in government for five years. What has he done to end that discrimination?

Alistair Carmichael Portrait Mr Carmichael
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The hon. Gentleman is well aware that transmission charging is the responsibility of Ofgem, the energy market regulator. He will also be aware of the work that Ofgem has been doing with other parts of the energy industry in relation to Project TransmiT.

Angus Robertson Portrait Angus Robertson
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Last week, the First Minister wrote to the Prime Minister about this very subject, asking

“the UK Government to initiate a dedicated capacity assessment for Scotland, informed by stakeholder views, and take steps to transfer to the Scottish Parliament the authority to set our own national reliability standard for electricity.”

Having failed to end the discriminatory transmission charges, will the UK Government agree to those reasonable suggestions?

Alistair Carmichael Portrait Mr Carmichael
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The hon. Gentleman and the First Minister must both be aware that National Grid has a constant process of reviewing energy supply. The system operators in Scotland have stress-tested 140 scenarios in which Longannet and other Scottish fossil fuel generators were closed, and National Grid has the tools to keep the lights on in every one of those scenarios, including by being resilient against one-in-600-year risks. Those are the facts, and they are preferable to the sort of scaremongering that we hear from the nationalists.

John Bercow Portrait Mr Speaker
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We are now better informed, I am sure.

Philip Hollobone Portrait Mr Philip Hollobone (Kettering) (Con)
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But is the Secretary of State satisfied that the capacity of the electricity interconnector between Scotland and England is sufficient and will not act as a brake on competition in the supply and generating markets?

Alistair Carmichael Portrait Mr Carmichael
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That is exactly the kind of work that is within the ambit of National Grid and Ofgem.

Sandra Osborne Portrait Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)
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I have raised many times the devastation caused by abandoned coal mines in my constituency. The Secretary of State will be aware of the proposal for an exemption from carbon price support, which would greatly help their restoration and create 1,000 jobs. Can we expect good news on this in the Budget, and does he agree that the Scottish Government should step up to the plate with some of their £500 million surplus to help the restoration?

Alistair Carmichael Portrait Mr Carmichael
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First, I am happy to pay tribute to the hon. Lady, who has been a doughty fighter for her constituents’ interests in this regard. As for what will be in the Budget, I am afraid that, like the rest of us, she will have to wait and see, although I can assure her that my Department remains engaged on this issue. We continue to work closely with the Scottish Government on their joint taskforce, which will next meet in March. My right hon. Friend the Under-Secretary of State for Scotland will represent the UK Government on that occasion.

Guy Opperman Portrait Guy Opperman (Hexham) (Con)
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2. What assessment he has made of the potential effect on cross-border trade between the north of England and the border region of Scotland of the proposals of the Smith commission.

Alistair Carmichael Portrait The Secretary of State for Scotland (Mr Alistair Carmichael)
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As a result of the clear no vote in the referendum, there remain no barriers to trade across the whole of the UK. Nothing in the draft clauses changes that.

Guy Opperman Portrait Guy Opperman
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Does the Secretary of State agree that all political parties need to come together to ensure that airports such as Newcastle in the north-east have air passenger duty support so that they are not unfairly disadvantaged by the proposals of the Smith commission?

Alistair Carmichael Portrait Mr Carmichael
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I assure my hon. Friend that the basic principle of the Smith commission proposals is that there should be no detriment to any part of the UK—that was very much what the people of Scotland voted for on 18 September. Of course, it remains to be seen what will happen to levels of APD, once it is devolved, but he should take comfort from the fact that the principle is already well established that variable rates within the UK are possible, and he would be well advised to speak to the Chancellor of the Exchequer in that regard.

Angus Brendan MacNeil Portrait Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
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Had the Smith commission been faithful to the famous vow and had the Better Together parties not watered down the tepid Smith commission, does the Secretary of State think that the benefits to the north of England, as well as to Scotland, would have been greater?

Alistair Carmichael Portrait Mr Carmichael
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I know that it hurts the hon. Gentleman and causes him genuine pain, but the truth of the matter—he will have to accept this sooner or later, so he might as well get on and accept it now—is that the Smith commission has delivered on the vow. That was why his party signed up to it, even if, having done so, the Scottish National party could not run away from its commitments fast enough.

Michael Moore Portrait Michael Moore (Berwickshire, Roxburgh and Selkirk) (LD)
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The single market of the United Kingdom is vital to the fish processors and agricultural producers of Berwickshire, the coat hanger manufacturers of Jedburgh and the world-class knitwear manufacturers of Hawick, among others, so does my right hon. Friend agree that one of the major achievements of the Smith commission was to bring more powers to Scotland, but preserve that single market?

Alistair Carmichael Portrait Mr Carmichael
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Yes, absolutely. I particularly enjoyed joining my right hon. Friend recently in his constituency and learning from him about not only the challenges but the opportunities facing the knitwear industry. I know that that industry is of great importance to the economy in his area, and he has been a remarkable champion of it over the years.

Russell Brown Portrait Mr Russell Brown (Dumfries and Galloway) (Lab)
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There is obvious eagerness within local authorities in the south of Scotland to have closer trade links with their counterparts in the north of England, as evidence from the work of the Scottish Affairs Committee suggests. Does the Secretary of State intend to engage with the Scottish Government to ensure that the borderland areas are able to exploit their full potential?

Alistair Carmichael Portrait Mr Carmichael
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Indeed. I am well aware of the work of the borderlands initiative and am more than happy to engage with it in any way it considers would be helpful. That has been very much the approach that I have taken in dealing with Scotland’s island communities—the Western Isles, Orkney and Shetland—on their “Our Islands Our Future” campaign. I suggest that this Government’s willingness to hand power back to communities in Scotland bears very favourable contrast with the SNP Government in Edinburgh, who seem determined to centralise everything.

Jim Sheridan Portrait Jim Sheridan (Paisley and Renfrewshire North) (Lab)
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3. What discussions he has had with the Scottish Government on practical steps to encourage employers to pay the living wage.

--- Later in debate ---
Anne McGuire Portrait Dame Anne McGuire (Stirling) (Lab)
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4. What recent discussions he has had with Ministers of the Scottish Government on property taxes in Scotland.

Alistair Carmichael Portrait The Secretary of State for Scotland (Mr Alistair Carmichael)
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As part of the Scotland Act 2012 implementation process, UK Government Ministers have been in contact with Scottish Government Ministers to discuss devolved taxes, including property taxes, since the beginning of this year.

Anne McGuire Portrait Dame Anne McGuire
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May I encourage the Secretary of State to be a little more forthcoming and share with the House his view on whether Revenue Scotland is ready for the transfer of property taxes in April?

Alistair Carmichael Portrait Mr Carmichael
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The right hon. Lady will understand my hesitation when I say that we have to take the Scottish Government at their word. They assure us that they are ready and we have done everything within our power to assist them. If it should transpire that there are further difficulties that have not yet been foreseen or disclosed, we will do everything that we can to ensure that the system operates.

Fiona O'Donnell Portrait Fiona O'Donnell (East Lothian) (Lab)
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Does the Secretary of State see the SNP Government’s U-turn on the land and buildings transaction tax as a cause for concern or the sincerest form of flattery—#TartanTories?

Alistair Carmichael Portrait Mr Carmichael
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I think that is quite remarkable. The whole point of devolution is to allow the Scottish Government to do things differently. We devolved stamp duty land tax under the 2012 Act. They came forward with something that was different until this Government introduced a new system, when before we knew it they had changed to follow what was happening in the rest of the United Kingdom.

John Bercow Portrait Mr Speaker
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Gordon Henderson—not here.

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Christopher Chope Portrait Mr Christopher Chope (Christchurch) (Con)
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7. What public consultation his Department is carrying out in Scotland on the draft clauses published following the recommendations of the Smith commission.

Alistair Carmichael Portrait The Secretary of State for Scotland (Mr Alistair Carmichael)
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The Scotland Office is holding a series of events across Scotland to enable stakeholders to provide feedback on the draft clauses and how the new powers might be used. I can announce to the House today that the Government will now begin a public information campaign to enable people in Scotland to learn more about the devolution settlement and how it is changing. [Interruption.] This campaign will use social media, local media and an information booklet for every house in Scotland. [Interruption.]

John Bercow Portrait Mr Speaker
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Order. There is a lot of noise in the Chamber. The House and perhaps the nation should hear Mr Christopher Chope.

Christopher Chope Portrait Mr Chope
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The nation would be interested to know that draft clause 1 has been widely condemned as legally vacuous. What is the Secretary of State going to do to ensure that the people of Scotland realise that it is legally vacuous and that if they support it, they will be supporting a meaningless constitutional proposal?

Alistair Carmichael Portrait Mr Carmichael
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I absolutely refute that suggestion and the hon. Gentleman’s characterisation of that analysis as being widespread.

Michael Connarty Portrait Michael Connarty (Linlithgow and East Falkirk) (Lab)
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13. Has the Secretary of State specifically discussed the question of varying tax bands under the Smith agreement, which seems a marvellous opportunity for Scotland to decide how it treats people with differing levels of income? It might be different from the way they are treated in the rest of the UK.

Alistair Carmichael Portrait Mr Carmichael
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The hon. Gentleman is right and he takes the debate in a direction in which it has to go. Surely the time has come when we should no longer be discussing where powers lie, but discussing what can be done with the substantial powers that the third most powerful devolved legislature anywhere in the world will have as a result of these proposals.

None Portrait Several hon. Members
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rose

Alan Reid Portrait Mr Alan Reid (Argyll and Bute) (LD)
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Thank you, Mr Speaker. The out of touch House of Lords Constitution Committee has said that not enough thought has been given to the impact of giving 16 and 17-year-olds the vote. I hope the Government will reject this recommendation and give 16 and 17-year-olds the right to have their say on who represents them in the Scottish Parliament.

Alistair Carmichael Portrait Mr Carmichael
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I confess that I always hold their lordships’ views in very high regard, but they would not normally be the first port of call that I would make when I was looking for advice either on democratic elections or on young people. The order will be before their lordships’ House tomorrow night. I am confident that it will be passed, as it was passed in this House, without Division.

Tom Clarke Portrait Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)
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Given the powers that the Scottish Government already have, has the Secretary of State ever received an apology from them for their failure to spend £34 million on disabled children and their families and instead using it for the gimmick of keeping council tax static?

Alistair Carmichael Portrait Mr Carmichael
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There are many, many things for which the Scottish Government should apologise and I suspect that in the event that these apologies ever start coming, the right hon. Gentleman and I will not be at the top of the list to receive them. He is right, though, to point out that the freeze on council tax has caused real difficulties for many local authorities in Scotland, which will be outraged to see the size of the Scottish Government’s underspend this year.

Lord Beith Portrait Sir Alan Beith (Berwick-upon-Tweed) (LD)
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8. What discussions he has had with Scottish Government Ministers on the co-ordination of programmes to dual the A1.

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Andrew Turner Portrait Mr Andrew Turner (Isle of Wight) (Con)
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10. What discussions he has had with his ministerial colleagues on the potential implications for Scotland of English votes for English laws.

Alistair Carmichael Portrait The Secretary of State for Scotland (Mr Alistair Carmichael)
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There is clear consensus that change is needed to address the anomalies in our constitutional arrangements, but no consensus on what form this change should take. The solution must be fair to all parts of the United Kingdom and strengthen the links between our family of nations so recently reaffirmed in the referendum in Scotland.

Andrew Turner Portrait Mr Turner
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I thank the Minister for that reply. Does he agree that most Scots, unlike Labour Members, recognise the unfairness of their MPs at Westminster intervening to affect English schools, English health and English councils now that those matters have been devolved from England to Scotland?

Alistair Carmichael Portrait Mr Carmichael
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I think I have already acknowledged that there are substantial anomalies within our constitutional arrangements. I caution the hon. Gentleman, however, about being too enthusiastic about replacing these anomalies with ones that could be even bigger.

The Prime Minister was asked—