Oral Answers to Questions

David Mundell Excerpts

Wednesday 23rd March 2016 Commons Chamber

[Tom Pursglove (Corby) (Con)]

1. If he will estimate the contribution of golf to the economy in Scotland in the last 12 months.

[The Secretary of State for Scotland (David Mundell)]

May I begin by expressing the solidarity of the people of Scotland with the people of Belgium at this difficult time? Our thoughts, prayers and condolences go to the families and friends of all those who were killed and, indeed, everyone caught up in yesterday’s horrific events.

Golf makes a huge contribution to Scotland’s economy. Independent analysis in 2013 showed that the game contributes more than £1 billion in revenues and supports some 20,000 jobs. There are almost 600 golf courses across the country, generating annual revenues of £582 million.

[Tom Pursglove]

I thank the Secretary of State for his answer, and I very much share his sentiments of solidarity towards the people of Belgium at this very difficult time.

Given the success that my right hon. Friend talks about in relation to golf in Scotland, what steps is he taking to try to secure further investment in this very important industry for Scotland?

[David Mundell]

One new opportunity to support golf and young people in golf arose in last week’s Budget: the sugar tax element of the Budget will see investment in sport in schools in the wider UK. I hope the Scottish Government will follow through on that and use those funds to develop sport in schools, including golf—a very popular sport, as I have said. This year, we also have the opportunity to present Scotland’s golfing merits to the wider world during the British Open at Royal Troon. It will be a showcase for the world of Scotland’s golfing opportunities.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

I thank the right hon. Gentleman for mentioning my local golf course; I am the MP for Royal Troon, and we look forward to welcoming people in July.

Will the Secretary of State discuss with Front-Bench colleagues a regional strategy for smaller airports—at Prestwick, people fly in over Royal Troon—and, while the Chancellor is in a listening mood, will they consider a VAT reduction for rural tourism, which would help many constituencies across the UK?

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[Mr Speaker]

Indeed they do, as the hon. Lady pertinently observes from a sedentary position.

[David Mundell]

I would be very happy to meet the hon. Lady to discuss those issues further. I am also very interested in pursuing the proposed Ayrshire regional growth deal, which, in promoting tourism in that part of Scotland, will have golf at its heart.

[Alberto Costa (South Leicestershire) (Con)]

May I add my contribution on this topic by saying that it was with pleasure, last week, that I saw the Secretary of State sharing a platform with the First Minister, who I am sure raised the topic we are discussing? Will my right hon. Friend confirm that that is an example of the two Governments working together in the interests of the people of Scotland?

[David Mundell]

Mr Speaker, you will be pleased to hear that the First Minister and I met and shared a platform in St Andrews, which is of course the world home of golf. On sport, as on any matter, Scotland of course does best when Scotland’s two Governments work together.

[Angus Robertson (Moray) (SNP)]

This is the first opportunity in Parliament to put on the record our total revulsion at and condemnation of the terrorist atrocities in Brussels, as well as our solidarity with everybody affected. We join the Secretary of State for Scotland in that.

The promotion of the Ryder cup in Scotland was a huge achievement for the Scottish Government and the then First Minister, my right hon. Friend the Member for Gordon (Alex Salmond). Today is the last sitting day of the Scottish Parliament. Given that he is standing down from Holyrood, may I pay tribute to my right hon. Friend for his remarkable tenure as an MSP and as First Minister, and pay tribute to all other MSPs from all parties who are retiring? Does the Secretary of State agree that there is much that can be built on following the success of the Ryder cup? How does he plan to contribute to that?

[Mr Speaker]

I am sure that that was a courteous tribute, but I hope the right hon. Gentleman will not object if I say that the first part of his question was way off the fairway.

[David Mundell]

Securing the Ryder cup to be held in Scotland was a significant event. I agree that the former First Minister of Scotland has made a remarkable contribution to Scottish politics, although the right hon. Member for Moray (Angus Robertson) and I will probably differ on the detail of that. What the former First Minister and many MSPs who are standing down—I also pay tribute to them—have done, and what we all need to do, is promote Scotland together, because that is when we get the best results for Scotland.

[Angus Robertson]

I will try to remain on the fairway, Mr Speaker.

Tourism is one of Scotland’s most important industries, and golf and whisky are key drivers for people visiting the country. Does the Secretary of State welcome local initiatives better to promote iconic Scottish regions and locations, such as Speyside? What encouragement would he give to public and private sector partners in making the most of Scotland’s world-class potential as a tourism draw?

[David Mundell]

I am aware of the initiatives to promote Speyside, having recently visited the right hon. Gentleman’s picturesque constituency, and I wish them well. Such opportunities reach their full potential only with significant public and private sector partners playing a full part, and I look forward to hearing about progress from Speyside and other regions of Scotland that are making the most of that potential.

[Stuart Andrew (Pudsey) (Con)]

2. What discussions he has had with representatives of the North Sea oil and gas industry on UK Government support for that sector.

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[Karen Lumley (Redditch) (Con)]

4. What recent discussions he has had with business groups on economic trends in Scotland.

[The Secretary of State for Scotland (David Mundell)]

I regularly meet a wide range of business organisations to discuss economic issues in Scotland. As I alluded to, last week I shared a platform with the First Minister of Scotland at the annual forum of the Scottish Council for Development and Industry, where we discussed the important issue of productivity.

[Karen Lumley]

Given that businesses in Redditch have welcomed the devolution deal for Birmingham, what representations have business groups in Scotland made to my right hon. Friend about city deals there?

[David Mundell]

I have been particularly delighted at the welcome from business groups in Scotland for the announcement yesterday of the Inverness and Highland city deal. The Scottish Government, UK Government and Highland Council will deliver a £315 million package. I welcome in particular the early-day motion from the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) and his colleagues. I pay tribute to him for his part in bringing the deal about.

[Liz McInnes (Heywood and Middleton) (Lab)]

The Secretary of State will be aware that about 400,000 workers in Scotland earn less than the living wage. The Government claim to be on the side of working people, so why have his Scottish Tory colleagues voted repeatedly alongside the SNP Government to thwart Scottish Labour proposals to extend the living wage?

[David Mundell]

I will resist the temptation to give the hon. Lady a lecture on the Scottish Labour party’s woes and the fact that it has not been a credible opposition to the SNP in Scotland. This Government are very, very clear on our proposals to increase the wages of the poorest in society by the introduction of the national living wage.

[John Stevenson (Carlisle) (Con)]

13. Local government clearly has a role to play in economic development. Does the Secretary of State agree that it is important that the Scottish Parliament also devolves power to local government? Might it look to England for a lead—on elected mayors, for example?

[David Mundell]

I very much take my hon. Friend’s comments. When I spoke with the First Minister of Scotland at the Scottish Council for Development and Industry forum last week, I was particularly encouraged by what she said about her support for city deals. I hope that the city deals we see emerging in Scotland will not just include financial packages but go on to include greater devolution within Scotland.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

People in my constituency are extremely concerned about the perceived impact on the local economy and local jobs of the proposed closure of HMRC sites. What impact assessment is being made of these closures on the local economy and jobs?

[David Mundell]

Initial proposals have been set out for the future shape of HMRC. We hear repeatedly in the House about the wish to make HMRC more efficient and effective, but no steps will be taken in the hon. Lady’s constituency or elsewhere without full consultation with all those involved.

[Stephen Gethins (North East Fife) (SNP)]

5. What recent discussions he has had with Ministers of the Scottish Government on UK membership of the EU.

[The Secretary of State for Scotland (David Mundell)]

As the First Minister and I both confirmed last week when we shared a platform in St Andrews, in the hon. Gentleman’s own constituency, the official position of both the UK and Scottish Governments is that the UK is better off in a reformed EU.

[Stephen Gethins]

First, may I associate myself with the remarks about Brussels, having spent many happy years in that wonderful city? Secondly, the Secretary of State will be aware of the benefits that EU membership has brought us, such as paternal rights and holiday entitlement. Does he agree that we should focus on those benefits, not a rerun of “Project Fear”?

[David Mundell]

I do not know whether the hon. Gentleman saw the details of my speech yesterday, in which I made a positive case setting out the benefits to Scotland of our remaining in the EU, but I look forward to sharing platforms over the coming weeks with him and his colleagues to make that case.

[Philip Davies (Shipley) (Con)]

Given that we have a £62 billion a year trade deficit with the EU, does the Secretary of State think that, were we to leave the EU, the Prime Minister would have the ability to negotiate a free trade deal with the EU?

[David Mundell]

My position is clear: I believe that Scotland and the UK are better off in the EU under the reformed arrangement that the Prime Minister has already negotiated.

[Douglas Chapman (Dunfermline and West Fife) (SNP)]

14. Will the right hon. Gentleman recognise that a recent survey confirmed that the Scottish Government were one of the most trusted Governments in Europe? Does he look forward to the re-election of Nicola Sturgeon and her team so that we can continue being the most trusted Government in Europe, including beyond 23 June?

[David Mundell]

I want to ensure that Nicola Sturgeon and her team are held properly to account in the Scottish Parliament, which is why I am encouraging people to vote for Ruth Davidson and the Scottish Conservatives.

[Clive Lewis (Norwich South) (Lab)]

6. What discussions he has had with the Secretary of State for Energy and Climate Change and Ministers of the Scottish Government on withdrawal of funding for the carbon capture and storage scheme at Peterhead.

[The Secretary of State for Scotland (David Mundell)]

I have regular discussions with the Secretary of State for Energy and Climate Change and Ministers of the Scottish Government on a number of important energy issues affecting Scotland. The most recent was last night.

[Clive Lewis]

The Government’s own advisers on energy and climate change have warned that the cost of meeting our climate change targets could double without Peterhead and CCS. Given that the Government are having a good run on U-turns when it comes to saving the Chancellor, perhaps they would also like to make a U-turn when it comes to saving the planet—something that people feel is far more worth while.

[David Mundell]

We are looking carefully at all options in developing our approach to CCS, informed by Lord Oxburgh’s CCS advisory group. In parallel, the Government continue to engage with the CCS industry—including Shell, which is leading the proposed Peterhead project.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

At the time of the announcement of £1 billion of funding for the CCS scheme at Peterhead, the Energy Secretary was forced to deny that it was a bribe prior to the independence referendum. Now that the withdrawal of this supposedly ring-fenced capital investment exposes it as just that, will the Secretary of State take this opportunity to apologise today to the people of Scotland?

[David Mundell]

If anybody should apologise to the people of Scotland, it is the hon. Lady and her friends for suggesting that oil tomorrow would have a price of $103 a barrel. What is clear in relation to CCS is that the costs are high and must come down. We have not ruled CCS out, and we are committed to working with the industry to bring forward innovative ideas for reducing the cost of this potentially important industry.

[Wayne David (Caerphilly) (Lab)]

I am reluctant to refer to the Budget because we cannot be absolutely sure what is in and what is out. For example, the Chancellor’s support for the oil and gas industry is welcome, but it does not take us very far forward. Unfortunately, it appears that the Government here in London are taking their cue from the Government in Holyrood. There, the SNP Government recently axed £10 million of tax breaks for renewable firms, yet they like to see themselves as a green Administration. Are we not seeing two Governments who are confused, pursuing contradictory policies, and not knowing whether they are coming or going?

[David Mundell]

I can point out one distinct difference between this Government and any Labour Scottish Government, or indeed SNP Scottish Government—and that is that we are not putting up tax for ordinary people as both those parties propose. We have made it very clear that the door is not closed on CCS, but the costs must come down.

[Nigel Huddleston (Mid Worcestershire) (Con)]

7. What discussions he has had with the Scottish Government on commencement of the fiscal powers in the Scotland Bill.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 10th February 2016 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

1. What assessment he has made of the value to the economy in Scotland of UK membership of the single market.

[The Secretary of State for Scotland (David Mundell)]

Mr Speaker, I am sure that everyone, particularly in Scotland, will share your warm wishes to Andy Murray and Kim Sears on the birth of their daughter.

Latest official statistics published last month show that in 2014 around 42% of all Scottish international exports were destined for countries within the European Union. The value of these exports is estimated at around £11.6 billion.

[Neil Carmichael]

Does the Secretary of State agree that the package that the Prime Minister will discuss in greater detail with his colleagues on the European Council will bring about much needed reform and be a catalyst for further reform in the future, thus making it quite clear that the single market is good for the United Kingdom and, of course, good for Scotland?

[David Mundell]

In a reformed EU, we could have the best of both worlds—access to the single market while not being a member of the euro or Schengen. I believe that would be good for Scotland and good for the rest of the United Kingdom.

[Angus Robertson (Moray) (SNP)]

The single European market and the ability to affect the legislation that governs it is hugely important to the Scottish economy, especially the exporting sectors such as whisky. Will the Secretary of State confirm that, regardless of the ongoing negotiations, he will personally campaign for Scotland and the UK to remain within the European Union?

[David Mundell]

The right hon. Gentleman will know and will, I am sure, be pleased to have heard that the leader of the Scottish Conservative and Unionist party, Ruth Davidson, has expressed exactly that position.

[Angus Robertson]

The good news is that I get a second bite of the cherry, so perhaps at the end of this question the Secretary of State will answer my question about whether he will support Scotland and the UK remaining within the European Union. Making a positive case for remaining in the EU will be crucial in the weeks and months ahead, so will the Secretary of State give a commitment not to repeat the grinding negativity of project fear and condemn ridiculous scare stories such as those from the Prime Minister on immigration and the refugee camp in Calais?

[David Mundell]

I will make my position known when the negotiations have been concluded, but I make this offer to the right hon. Gentleman: if the reform package goes ahead and if I am campaigning to keep Scotland in the United Kingdom I would be delighted to join him, the right hon. Member for Gordon (Alex Salmond) and the First Minister on a platform to make that case.

[Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)]

Last night I had the pleasure of meeting the Scotch Whisky Association, which introduced me to some of the finer products from across the border. Simpsons Malt in my constituency produces an enormous amount of the malted barley sold across the border in Scotland to produce this whisky. Does my right hon. Friend agree that expansion into new markets that have nothing to do with the EU is the growth area for the whisky industry?

[David Mundell]

There are tremendous opportunities for development of the Scotch whisky industry. I think that the Scottish Government, the United Kingdom Government and all parties in the House are united on that. When the President of China was in the United Kingdom recently, we had the opportunity to present his wife with a bottle of her favourite malt whisky from Scotland, and both he and his good lady were able to make clear how important the product is to developing markets in China.

[Kirsten Oswald (East Renfrewshire) (SNP)]

What discussions has the Secretary of State had with Scottish businesses about the possibility of a UK exit from the European Union, and what concerns have those businesses expressed about the impact it would have on their ability to gain access to, and export to, the single market?

[David Mundell]

The clearest message that I receive from businesses in Scotland is that they want a short EU referendum campaign so that we can have the minimum amount of uncertainty.

[Nic Dakin (Scunthorpe) (Lab)]

2. What recent discussions he has had with the Chancellor of the Exchequer and Ministers of the Scottish Government on negotiation of a revised fiscal framework for Scotland.

[The Secretary of State for Scotland (David Mundell)]

I have regular discussions with the Deputy First Minister to discuss the fiscal framework. The Joint Exchequer Committee met on Monday, and negotiations are ongoing.

[Nic Dakin]

Yesterday the First Minister wrote to the Prime Minister listing the issues on which agreement still needed to be reached. They were the method for

“block grant adjustment…set-up and administration costs, capital and revenue borrowing, fiscal oversight and dispute resolution.”

Can the Secretary of State confirm that those are all the outstanding issues on which agreement still needs to be reached?

[David Mundell]

It was established at the start of the discussions that until everything was agreed, nothing was agreed, but considerable progress has been made on all those issues. I was very pleased to learn from the First Minister’s letter that the Finance Secretary would be presenting revised proposals from the Scottish Government. That is what a negotiation involves: it involves both parties presenting revised proposals as the negotiation progresses, and that is exactly what the UK Government are committed to doing.

[David Mowat (Warrington South) (Con)]

The starting point of the fiscal framework discussions is the Barnett formula, which means that Scotland’s public spending per capita is 15% higher than the United Kingdom average. Does the Secretary of State believe that that differential will be maintained in perpetuity?

[David Mundell]

My hon. Friend’s views on the Barnett formula are well known. I do not agree with them, and nor do the Government. The Government’s position is that the formula will remain, even in the post-fiscal framework environment.

[Pete Wishart (Perth and North Perthshire) (SNP)]

The negotiations on the fiscal framework are in a very sensitive and fragile state, and we must be very careful about the language that is used. However, the Secretary of State has used language like “ludicrous” and “chancing his arm” when it comes to one party to the negotiations, which is profoundly unhelpful. If the Secretary of State and the Scotland Office have nothing to offer the negotiations, will the Secretary of State vow to stay right out of it, and leave those who want to find a solution to try to get those negotiations fixed?

[David Mundell]

I find it a little odd to take a lecture from that particular hon. Gentleman on moderate language.

I do not think anyone can doubt my commitment to ensuring that we have a negotiated fiscal framework, and I am delighted that, in her letter to the Prime Minister, the First Minister set out her strong commitment to achieving such an agreement, because that is the Prime Minister’s position. As I said at the weekend, both sides have done the dance; now let us do the deal.

[Mr Kenneth Clarke (Rushcliffe) (Con)]

Does my right hon. Friend agree that if we are to have the successful devolution that we all want, we need a firm and sensible framework for fiscal discipline that will last, and will stand the tests of all the unknown economic vicissitudes that may hit the country? Will he assure us that we will not repeat the mistakes that have been made in Spain, where devolved provinces frequently run up unsustainable debts which they then blame on Madrid, causing great difficulties to Spanish Governments who are seeking recovery?

[David Mundell]

As my right hon. and learned Friend will recognise, the settlement in Spain is entirely different. I agree with him about the need for a sustainable fiscal framework, but, as the Government have made clear in the negotiations, we are willing to accept a review of the arrangements in a few years to ensure that they stand up to scrutiny, and are seen to be fair to both Scotland and to the rest of the United Kingdom.

[Ian Murray (Edinburgh South) (Lab)]

Mr Speaker, I join you in congratulating Andy Murray and Kim Sears on the birth of their baby daughter. However, their baby daughter might be winning Wimbledon by the time we get a deal on the fiscal framework. The UK and Scottish Governments have now been negotiating it for more than six months, which is longer than it took to negotiate the Scotland Bill itself, longer than it took to strike the historic international climate change agreement and longer than it took the G20 leaders to negotiate $1.1 trillion of support for the global economy. It is clearly the indexation model that is contentious, so will the Secretary of State tell the House why he thinks the per capita index model is not appropriate for the indexation of the block grant?

[David Mundell]

I have made it clear in previous discussions that we are not going to have detailed negotiations on this matter on the Floor of the House. I have also said that I very much welcome the fact that the First Minister has indicated that the Scottish Government are going to bring forward a revised proposal, just as we have done through the negotiations. I believe that we are within touching distance of striking a deal and I remain optimistic that we will do so.

[Ian Murray]

The Secretary of State says that he will not provide a running commentary on the fiscal framework, yet both Governments are providing exactly that. The respected economist Anton Muscatelli has said of the fiscal framework:

“I do not understand why it should be such a huge stumbling block.”

The constitutional expert Jim Gallagher has said:

“This fiscal framework is an eminently solvable problem.”

The Prime Minister has spent recent months shuttling around Europe trying to strike a deal on EU reform. Is it not time that he got involved and showed the same enthusiasm for striking a fair deal for Scotland in our own Union as he has shown for the European Union?

[David Mundell]

The Prime Minister is committed to securing a deal. He has spoken to Nicola Sturgeon about this issue and they have had productive discussions. They are now involved in an exchange of letters, but they are both quite clear that they now want a deal. I am confident, given the position set out in the letter from the First Minister that the Scottish Government are actively engaging in that negotiation process, as are we, that we will be able to get that deal.

[Alberto Costa (South Leicestershire) (Con)]

3. What discussions he has had with representatives of the North sea oil and gas industry on Government support for that sector.

[The Secretary of State for Scotland (David Mundell)]

On 28 January, the Prime Minister and I held discussions with industry representatives in Aberdeen on further support for the North sea. As a member of the joint ministerial group on oil and gas, I also engage with key stakeholders, such as the Oil and Gas Authority, on a regular basis.

[Alberto Costa]

Calor Gas has its largest operational UK site in my constituency in South Leicestershire. A number of residents in the Scottish highlands and other rural areas rely on Calor Gas, which receives a large part of its Scottish gas supply from the North sea. Does my right hon. Friend agree that, as a result of the support that the UK Government are able to provide, we are much better placed to absorb the fall in oil prices than would have been the case had Scotland been an independent country?

[David Mundell]

I acknowledge the importance of Calor Gas and all those who supply off-the-network energy to people living in rural Scotland. On my hon. Friend’s wider question, he makes an important point about the ability of the United Kingdom as a whole to absorb the change in the oil price.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

What discussions has the Secretary of State had with the Chancellor about continued funding for seismic surveys on the UK continental shelf?

[David Mundell]

I am sure that the hon. Lady welcomed the Prime Minister’s announcement when he was in Aberdeen of a £20 million contribution to a second round of new seismic surveys.

[Sir Alan Duncan (Rutland and Melton) (Con)]

The severity of the collapse in global oil prices carries with it the danger that a number of fields in the North sea will suspend production and perhaps never resume it. Given that this would represent a serious loss of national assets and national infrastructure, may I invite the Secretary of State to have further discussions with the Chancellor in advance of the Budget to try to ensure that these fields are not lost forever and that they remain an important part of our national economy?

[David Mundell]

It will not surprise my right hon. Friend to know that that issue was part of the discussion with the Prime Minister, Fergus Ewing from the Scottish Government and representatives of the oil and gas industry at the recent meeting in Aberdeen. The Prime Minister made it very clear that he would look at any specific request or proposal in relation to supporting the industry in the forthcoming Budget.

[Anne McLaughlin (Glasgow North East) (SNP)]

4. What recent discussions he has had with the Secretary of State for Work and Pensions on the effects of the Government’s welfare programme on social and economic inequalities in Scotland.

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[Sue Hayman (Workington) (Lab)]

6. What discussions he has had with the Secretary of State for Transport and Ministers of the Scottish Government on the effect on communities in Scotland of the partial closure of the west coast main line.

[The Secretary of State for Scotland (David Mundell)]

I have had a number of discussions with the Department for Transport and others to ensure that the closure of the Lamington viaduct, which is in my own constituency, is addressed as quickly as possible. We remain absolutely committed to working together with all parties to reopen the west coast line in the first week of March.

[Sue Hayman]

I apologise for my lack of voice. The closure of the west coast main line has a huge impact not only on the economy of southern Scotland, but on Cumbria, too, as it is a strategic cross-border crossing on which many businesses in my constituency rely. I was pleased to hear the Secretary of State say that it will be open in the first week of March, as it is so important. Will he confirm that the entirety will be open by 1 March?

[David Mundell]

I welcome the hon. Lady’s comments because, as she will be aware, my own constituents who use Lockerbie station are among those most affected by these changes. We are determined to get the west coast main line fully reopened in that first week in March.

[John Nicolson (East Dunbartonshire) (SNP)]

The Prime Minister claims that he will get a good deal for Britain in the European Union. Would the Secretary of State like to see the United Kingdom play the same role and have the same powers in the EU that he claims Scotland currently has in the UK?

[Mr Speaker]

That was quite tangentially related to the west coast main line, but I hope that the dexterity of the Secretary of State will admit of an answer.

[David Mundell]

Mr Speaker, the west coast main line is one of the most important routes within the United Kingdom to Europe via London. I have set out my position in relation to the EU referendum. If the SNP genuinely wants Scotland to remain in the EU, it is important that, rather than concentrate on process issues, it gets out and campaigns for it.

[Mr Graham Allen (Nottingham North) (Lab)]

7. What recent discussions he has had with Ministers of the Scottish Government on the effect of devolution on the powers and autonomy of Scottish local government; and if he will make a statement.

[The Secretary of State for Scotland (David Mundell)]

I do not know whether the hon. Gentleman has had the opportunity to read my speech of 21 December, in which I set out that I fully support the devolution of power from Holyrood to local communities, as Lord Smith recommended in his commission agreement. This is the responsibility of the Scottish Parliament to implement, and I encourage them to do so.

[Mr Allen]

Will the Secretary of State condemn those who use devolution to centralise power in Holyrood—whether it is the centralisation of the police, the fire service, health spending, local government spending, courts, colleges and enterprise companies? Will he ensure that he stands together with those who feel that devolution does not stop at Holyrood, but goes down to the Scottish local authorities and to the Scottish people?

[David Mundell]

I absolutely agree with the hon. Gentleman, and I can tell him the best way to achieve it, which is, under Ruth Davidson, to elect more Scottish Conservative MSPs to the Scottish Parliament.

[Philip Boswell (Coatbridge, Chryston and Bellshill) (SNP)]

In the interests of the record, can the Secretary of State confirm that, under the powers that are being devolved as part of the current Scotland Bill, the Scottish Government will be able to vary rates and bands of the Scottish rate of income tax—[Interruption.]

--- Later in debate ---

[Mr Speaker]

Order. Members need to learn the merits of the blue pencil. If they used the blue pencil and questions were shorter, they would benefit.

[David Mundell]

The Scottish Parliament will indeed take on those very significant tax powers, which it will be able to use as it sees fit. I hope it will use them to make Scotland a more attractive place for business and commerce and to grow the Scottish economy and the Scottish population.

[Mr Speaker]

Last but not least, I call Fiona Bruce.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 6th January 2016 Commons Chamber

[Ronnie Cowan (Inverclyde) (SNP)]

10. What recent discussions he has had with the Scottish Government on Scotland’s fiscal framework.

[The Secretary of State for Scotland (David Mundell)]

May I begin by wishing you a very happy new year, Mr Speaker?

In the light of the recent flooding in Scotland, may I pay tribute to all those in the emergency services and in local authorities, and the volunteers, who have dealt with the challenging circumstances? The thoughts of the whole House will be with those whose homes and businesses have been flooded.

The UK and Scottish Governments are discussing the fiscal framework through the Joint Exchequer Committee, and there have been five meetings between the Deputy First Minister and the Chief Secretary to the Treasury to discuss it. The next meeting is due to take place on Friday.

[Mike Weir]

I thank the Secretary of State for his answer and associate myself with what he said about the flooding, which has affected my constituency and those of many of my colleagues. We appreciate the work the emergency services are doing.

The block grant will need to be adjusted to take account of the revenue-raising powers that are being devolved, but, as agreed by the Smith commission, the Scottish Government should not be financially disadvantaged by the transfer of the new powers. What is the Secretary of State’s view of what a fair indexation for the block grant adjustment would be?

[David Mundell]

My understanding is that the Deputy First Minister of Scotland, John Swinney, with whom I had a productive meeting just before Christmas, is conducting the negotiations on behalf of the Scottish Government. At our meeting, Mr Swinney assured me that his objective was exactly the same as that of the United Kingdom Government—a settlement that is fair to Scotland and fair to the whole United Kingdom.

[Marion Fellows]

A fair model of block grant adjustment would ensure that Scotland is no worse off financially as a result of the transfer of new powers. Does the Secretary of State agree with the cross-party view, and that of Anton Muscatelli, Jim Cuthbert and the Scottish Trades Union Congress, that only the model of indexed deduction per capita would adequately deliver the principle of no detriment?

[David Mundell]

As I said, we are involved in an ongoing negotiation, which Mr Swinney is conducting. I have tremendous respect for his ability to reach a fair settlement for Scotland, and for the Chief Secretary’s ability to reach a fair settlement for the rest of the United Kingdom. On the basis of the discussions that took place between the First Minister and the Prime Minister, my own discussions with the Deputy First Minister and the meeting that is due to take place on Friday, I am confident that we will be able to achieve a fair settlement.

[Dr Eilidh Whiteford]

A good new year to you, Mr Speaker.

Many people will find it bizarre, and frankly unacceptable, that the Secretary of State for Scotland is not even attending the negotiations on Scotland’s fiscal framework. Can he explain why his office of Secretary of State seems to have been deemed irrelevant to those critical negotiations? Given that he is not directly involved in the negotiations, will he share his personal view on whether he agrees with the learned professors and the STUC on the preferred model?

[David Mundell]

I think what many people in Scotland will find bizarre is that at a session in Parliament that is called Scottish questions, the Scottish National party could come up with only one question, which all its Members were clearly told to ask.

I know that it may impinge on the importance that some SNP MPs attribute to themselves, but it is the Deputy First Minister of Scotland, John Swinney, who is negotiating the agreement, not them.

[Ronnie Cowan]

The model of indexed adjustment for the adjustment of the block grant may result in the Scottish block grant falling substantially without consideration of the different rates of population growth north and south of the border. Does the Secretary of State agree that that or any other model of block grant adjustment that results in a diminished Scottish budget year on year will not fulfil the Smith commission’s principle of no detriment?

[David Mundell]

I am disappointed with the hon. Gentleman’s analysis because the new powers that are being delivered by the Scotland Bill create the opportunity for Scotland’s economic growth to increase and for Scotland’s population to increase. I am very surprised that he has such a negative view of the use of those powers that it would be impossible to increase population or economic growth in Scotland and therefore increase tax take.

[Alberto Costa (South Leicestershire) (Con)]

Does my right hon. Friend agree that the transfer of the new extensive powers that he has agreed will be given to the Scottish Parliament will for once make the SNP Government truly accountable to the Scottish people, and that the talk of a second referendum is just a smokescreen to take away their accountability to the Scottish people?

[David Mundell]

I absolutely agree that the impression created again today by SNP Members is that they are entirely driven by process arguments, and not by getting on and getting an agreement on the fiscal framework, getting the new powers in place and then doing something positive for the people of Scotland with those powers.

[Maggie Throup (Erewash) (Con)]

Will my right hon. Friend confirm that, once the fiscal framework has been agreed, the devolution of tax powers to the Scottish Parliament can begin quickly?

[David Mundell]

I am absolutely committed to delivering the powers set out in the Scotland Bill when it becomes an Act as quickly as possible. We want that Act on the statute book ahead of the Scottish Parliament elections so that it can shape those elections, and so that the parties can set out what they intend to do with the powers. I would like the tax powers in place by April 2017.

[John Stevenson (Carlisle) (Con)]

The success of the fiscal framework is vital to the future success of the tax powers that have been devolved. Confidence in the framework is vital for individuals and businesses, particularly in the border region. Does the Secretary of State believe that the Scottish Government are approaching the discussions in good faith, which will be fair to people on both sides of the border?

[David Mundell]

I absolutely do, because, from the discussions that Nicola Sturgeon, the First Minister of Scotland, has had with the Prime Minister, and from the discussions I have had with the Deputy First Minister—we have to remember that they are determining what will be agreed in relation to the fiscal framework—their view is clear. I take it as sincere that they want to achieve a fiscal framework agreement in the near future. We can then move forward with enacting the Bill and transferring those powers, which could make such a difference to the people of Scotland.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

12 . The Smith commission recommended that the cost of establishing the infrastructure for the collection of the newly devolved taxes would be borne by the UK Government. Will the Secretary of State for Scotland, and not the Deputy First Minister of Scotland, confirm that the UK Government accept that recommendation?

[David Mundell]

I can confirm to the hon. Gentleman that that is one of the items that is part of the discussion between the UK Government and the Scottish Government. It is so surprising that SNP MPs have such little confidence in Mr Swinney and the Scottish Government in the negotiation to hold out for positions that would be beneficial to Scotland—I find it staggering.

[Kirsten Oswald (East Renfrewshire) (SNP)]

13. Does the Secretary of State agree with the First Minister, Professor Muscatelli and the STUC that more powers for Scotland cannot come at any price, but that the fiscal framework settlement must deliver fairness for Scotland? Will the Secretary of State commit to a date before the Scottish elections by which an agreement must be reached?

[David Mundell]

I absolutely agree that the arrangements must be fair—fair to Scotland and fair to the rest of the United Kingdom. That is perfectly achievable. I do not want to provide a running commentary, but the negotiations and discussions that have taken place have been productive. For example, I absolutely agree with the comments of Mr Swinney to the Scottish Parliament Finance Committee —he clearly said that the Scottish Government should benefit from the positive decisions they take but accept the consequences of bad policy decisions. That should also apply to the UK Government in relation to our responsibilities.

[Ian Murray (Edinburgh South) (Lab)]

May I take this opportunity, Mr Speaker, to wish you and all the staff of the House, as well as the Secretary of State and his office, a happy new year? Mr Speaker, you would have thought that the pantomime season was over, but judging by today’s questions, it clearly is not—[Interruption.] Oh, yes, it certainly is. I was expecting that, from someone who has no jokes whatsoever. We could be questioning the Government on no shortage of things, but the Secretary of State has created this sham by keeping the fiscal framework secret. What is ludicrous is that the SNP Finance Secretary, who is negotiating the very fiscal framework that we are discussing, could be asked what is in it. It is clear that it is the people of Scotland who are being kept in the dark. I have asked the Secretary of State this before, but will he put an end to this pantomime of manufactured grievance and be completely transparent about the fiscal framework?

[David Mundell]

The Government are completely transparent about our position on the fiscal framework. We want it agreed as soon as possible and we want it to be scrutinised by both Parliaments. When I was in the Scottish Parliament recently I had the opportunity to meet Bruce Crawford, convener of the Devolution (Further Powers) Committee. He assured me that he is satisfied that in conjunction with the Finance Committee in the Scottish Parliament there will be adequate opportunity to scrutinise the fiscal framework. I am clear that there will be an opportunity in the other place to scrutinise it, and the Select Committee on Scottish Affairs is currently conducting an inquiry. I do not think that the people of Scotland will be in the dark in any way about the fiscal framework. It will achieve what we want it to achieve but it will also be subject to proper scrutiny.

[Ian Murray]

I do not think that the Secretary of State understands the process and how important this is. The Scotland Bill constitutes the biggest transfer of powers to Scotland ever, but the underpinning financial provisions are being hidden from the Scottish people. I have written to both Governments and questions have been asked in both Parliaments to try to get transparency, but the response from both Governments has been “no”. Meanwhile, the Scottish Government are threatening to veto the Bill. The danger is that while these negotiations are being conducted in secret, both Governments can blame each other with manufactured grievance, and it is the people of Scotland who will lose out. Will the Secretary of State at least assure us that in future negotiations as important as this on Scotland’s finances will be conducted with greater transparency and democratic scrutiny?

[David Mundell]

I have no grievance, manufactured or otherwise. I am confident that the Scottish Government want to achieve an agreement. The UK Government want to achieve an agreement based on fairness to Scotland and fairness to the rest of the United Kingdom. I give the hon. Gentleman an absolute commitment that the fiscal framework, as agreed, will be subject to full parliamentary scrutiny here in Westminster and in the Scottish Parliament.

[Mr Speaker]

Question 3—I call Sir Henry Bellingham.

--- Later in debate ---

[Karen Lumley (Redditch) (Con)]

6. What assessment he has made of the level of growth in the economy in Scotland.

[The Secretary of State for Scotland (David Mundell)]

The Government’s long-term economic plan has laid the foundations for a stronger economy. The Scottish economy has been growing for 11 quarters in a row. Scotland continues to benefit from being part of the UK, which was the fastest growing G7 economy in 2014 and is forecast to be the joint fastest in 2015.

[Karen Lumley]

My constituency has a number of manufacturing companies that do a great deal of business in Scotland, contributing to the growth of the local economy of Redditch as well as to the economy of Scotland. Does my right hon. Friend agree that that is just one element that makes the Union so successful?

[David Mundell]

I do agree with my hon. Friend. It is a fundamental part of the growth in Scotland’s economy that we are part of a single market within our United Kingdom. I recently had the pleasure of visiting Alexander Dennis, the bus manufacturer in Falkirk, and I am sure that they would agree that the rest of the United Kingdom was one of their most important markets.

[George Kerevan (East Lothian) (SNP)]

Given that employment in Scotland is now 53,000 higher than it was before the crisis, and that output in Scotland is now 3% higher than at the pre-crisis point, does the Secretary of State concur with Scottish business leaders who oppose the Treasury’s savage cuts to the UK’s trade export agency in the autumn statement?

[David Mundell]

I very much welcome the figures the hon. Gentleman set out on the positive economic position in Scotland. What I do not subscribe to is the frequently voiced Scottish National party and Scottish Government position that anything good that happens in Scotland is in relation to the Scottish Government and anything bad is in relation to the UK Government. We have two Governments working together for the benefit of Scotland’s economy.

[Wayne David (Caerphilly) (Lab)]

The North sea oil and gas industry is obviously vital to Scotland’s economy. Yesterday, a Scottish nationalist MSP claimed that there is no crisis in the industry, even though it has been estimated that 65,000 jobs have been lost since 2014. The SNP clearly inhabits a different world from everybody else. Will the Secretary of State tell us what his Government are doing to support the oil industry and to protect the thousands of jobs that depend on it?

[David Mundell]

I find it extraordinary that anyone who represents the north-east of Scotland could claim that there was no crisis in the oil and gas industry. This Government have demonstrated, yet again, in the Chancellor’s autumn statement that we are committed to that industry and the thousands of jobs that it supports right across the United Kingdom. There will be further evidence of our commitment to Aberdeen and the north-east in the weeks ahead.

[Robert Flello (Stoke-on-Trent South) (Lab)]

7. What assessment he has made of the effect on household incomes in Scotland of the changes to welfare announced in the summer budget 2015 and the spending review and autumn statement 2015.

--- Later in debate ---

[Mr Christopher Chope (Christchurch) (Con)]

8. What discussions he has had with the Scottish Government on increasing the number of undergraduates attending Scottish universities.

[The Secretary of State for Scotland (David Mundell)]

I regularly discuss a range of matters with the Scottish Government. Although higher education is a devolved matter, the available figures show that application rates for those aged 18 in 2014 and 19 in 2015 were 37% in Scotland compared with 44% in England. [Interruption.]

[Mr Speaker]

Order. I also wish to hear the voice of Christchurch on the matter of Scottish universities.

[Mr Chope]

How can it be in the United Kingdom national interest that school leavers from Scotland are being denied access to their own universities because of the arbitrary cap on numbers imposed by the Scottish Government, when school leavers with lower qualifications from the rest of the UK are able to gain such access?

[David Mundell]

My hon. Friend makes an important point. Students from my constituency have been refused entry to Scottish universities because of the cap imposed by the Scottish Government; we hear a lot about free tuition in Scotland but that is one of the consequences, and I am sure it will be part of the debate in the forthcoming Scottish Parliament elections.

[Pete Wishart (Perth and North Perthshire) (SNP)]

As the hon. Member for Christchurch (Mr Chope) knows, the Scottish Affairs Committee has been looking into higher education, specifically into a post-study work scheme for Scotland. What the Secretary of State will find is that everybody—the universities, the trade unions, and the employers’ association—wants that scheme for Scotland. Will he now be a Secretary of State for Scotland and put that case to the Home Office?

[David Mundell]

We always listen with interest and take forward in a positive way anything that is forthcoming from the Scottish Affairs Committee, and I look forward to reading the hon. Gentleman’s report.

[Mr Speaker]

Last but not least Mr Philip Hollobone.

[The Secretary of State for Scotland (David Mundell)]

The administrative cost of running the Scotland Office and Office of the Advocate General for Scotland in the financial year 2010-11 was £7.688 million. The administrative provision for both offices in 2019-20, agreed at the recent spending review, is £9.240 million.

[Mr Hollobone]

Will the Secretary of State confirm to the House what percentage of his Department’s administrative costs is met by Scottish taxpayers?

[David Mundell]

My hon. Friend knows that the funding arrangements within the United Kingdom do not work on that basis. He also knows that this Government are committed to retaining the Barnett formula, which delivers a fair allocation of funding to Scotland.

The Prime Minister was asked—

Oral Answers to Questions

David Mundell Excerpts

Wednesday 4th November 2015 Commons Chamber

[Glyn Davies (Montgomeryshire) (Con)]

1. If he will encourage the Scottish Government to devolve responsibility for onshore wind planning to Scottish local authorities.

[The Secretary of State for Scotland (David Mundell)]

Before I answer the question, may I begin by commending you, Mr Speaker, not just for your attendance at the Davis cup semi-final in Glasgow, but for the enthusiasm with which you got behind Team GB for that momentous win? I am sure you will join me not only in wishing our Team GB the best in the final in Ghent, but in confirming that Glasgow, as it has once again demonstrated with the world gymnastics championships, is a great sporting city.

The UK Government have given local communities the final say on new onshore wind developments in England. Planning for onshore wind is a matter fully devolved to the Scottish Parliament and sadly the Scottish Government have kept that power to themselves. I would urge them to look closely at this Government’s policy of an affordable energy mix that also protects our natural landscapes.

[Mr Speaker]

I thank the Secretary of State. I shall be there in person, all being well, to support the team.

[Glyn Davies]

True devolution means that power should rest as closely as possible to the people in Scotland, in Wales and in Northern Ireland. Does the Secretary of State deplore the centralising policies of the current Scottish and Welsh Governments, who seem to think they know better than the people and the communities of Scotland and Wales?

[David Mundell]

I agree with my hon. Friend. The current Scottish Government are one of the most centralising Governments on record, routinely overruling the wishes of local people and local authorities. The UK Government are delivering devolution to Scotland. As Lord Smith recommended, let us see devolution delivered within Scotland.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

The Secretary of State will be aware of the case of the Binn eco park in my constituency. It has the support of the local community, and the developers worked diligently to secure planning permission from Perth and Kinross Council. Despite that support, the development is threatened by the regressive approach to support for renewable energy that the UK Government have taken, putting local jobs at risk. Will he look again at the case? The development has been penalised because of a responsible approach to community engagement on planning issues.

[David Mundell]

I am always happy to look at individual cases raised by Members from Scotland. I would be delighted to meet the hon. Lady and hear more about the case she sets out.

[John Stevenson (Carlisle) (Con)]

Does the Secretary of State agree that the Scottish Parliament could learn a lot from the devolution debate in England? [Laughter.] Will he encourage the Scottish Parliament to devolve more responsibilities and powers to local government, which could even include elected mayors for the great cities of Scotland?

[David Mundell]

I agree with my hon. Friend. The response of Scottish National party MPs says it all—they think they know best and know better than local people. Let us see local decision making. Let us see Lord Smith’s individual recommendation on devolution within Scotland honoured by the Scottish Government.

[Ian Austin (Dudley North) (Lab)]

In addition to this question, question after question on the Order Paper from the Nats queries the powers of the Scottish Parliament, yet the truth is this: they have missed the A&E waiting time in Scotland for six years; more than 6,000 children leave primary school unable to read properly; children from poor families get a particularly bad deal under devolution; and Scotland faces a housing crisis. When I visited Edinburgh a week or so ago, I was stunned at the level of rough sleeping in that city—it is much higher than in comparable cities. Should the Nats not be sorting out the things for which they are responsible instead of demanding all those other powers? They are not just the most centralising but the most useless—

[Mr Speaker]

Order. I have been generous. We must now hear from the Secretary of State.

[David Mundell]

The Scotland Bill will make the Scottish Parliament the most powerful devolved Parliament in the world. What we require now is to hear from the SNP and the Scottish Government how they will use these Parliaments. They prefer arguments about process. They do not want to tell us what they will do and they do not follow that through with action.

[Mr Speaker]

I call Angus Brendan MacNeil

--- Later in debate ---

[Mr MacNeil]

Thank you, Mr Speaker. It was difficult to hear over the noise from Labour over there.

As we know of course, the only damage to onshore wind comes from the right hon. Gentleman’s Government, and for me the only centralising problem in Scotland is that it is not centralised enough—if only the Scottish Government could take control of inter-island flights. Planning is working well in Scotland. In fact, perhaps the Secretary of State could commend several things in Scotland to Wales, such as the political system, under which 99% of Scottish voters rejected the Tories and 95% of Members sent back here were SNP Members. He could learn a lot from that.

[David Mundell]

The hon. Gentleman could learn a lot from the leader of the Western Isles Council, who is keen to have confirmation that the Scottish Government will devolve responsibility for the Crown Estate to the Western Isles—a measure that he, as MP for the Western Isles, does not appear to support. [Interruption.]

[Mr Speaker]

Order. The hon. Member for Na h-Eileanan an Iar (Mr MacNeil) is the Chair of the Energy and Climate Change Committee, and I urge him to behave in the statesman-like manner expected of such a high office holder. We might learn about onshore wind from Michelle Thomson.

--- Later in debate ---

[Angela Crawley (Lanark and Hamilton East) (SNP)]

3. What assessment he has made of progress in meeting the recommendations of the Smith commission; and if he will make a statement.

[The Secretary of State for Scotland (David Mundell)]

The Scotland Bill delivers the Smith commission agreement in full. I have tabled amendments that strengthen the Bill and look forward to it returning to the House for debate next week. It represents another milestone in making the Scottish Parliament one of the most powerful devolved Parliaments in the world.

[Angela Crawley]

The Smith commission identified that Scotland’s budget should be no larger or smaller simply as a result of the initial transfer of new powers and recommended that the Scottish and UK Governments work together to agree a fiscal and funding framework for Scotland. Will the Secretary of State reassure my constituents that that framework will be in place to accompany the devolution of further powers so that Scotland’s funding is not adversely affected?

[David Mundell]

Yes.

[Bob Blackman (Harrow East) (Con)]

Does my right hon. Friend agree that, rather than relying on subsidies from London, the Scottish Government should use their tax-raising powers to pay for the services provided to the people of Scotland?

[David Mundell]

I do not recognise my hon. Friend’s description of the Barnett formula, which of course will remain in place. The Scottish Parliament will now have significant powers over tax and welfare, and it is about time the SNP told us what it will do with them.

[Angus Robertson (Moray) (SNP)]

It is interesting that the Secretary of State did not take the opportunity to condemn the views of his Conservative colleagues who believe that Scotland is subsidised.

Only 9% of people in Scotland believe that the vow has been delivered, so unsurprisingly the Government are belatedly having to accept amendments. The financial framework underpinning the Bill is crucial. The Secretary of State could only give a one-word answer to my hon. Friend the Member for Lanark and Hamilton East (Angela Crawley), so will he elaborate and tell us exactly when the UK Government will update this Parliament on the progress made on the fiscal framework?

[David Mundell]

I am sorry that the right hon. Gentleman did not read my written statement on Monday, which updated the House on the progress of the fiscal framework. What I recognise in the right hon. Gentleman’s comments are these words from the editorial of the Daily Record:

“Moan, moan…whinge, whinge. Their response has been as negative as it was predictable. A cynic might argue that the SNP don’t actually want those new powers because it makes them…accountable to the people of Scotland.”

[Angus Robertson]

The Secretary of State has now had a second opportunity to condemn the views of his Back Benchers that Scotland is subsidised. I challenge him to come to the Dispatch Box and disassociate himself from the views of his colleagues. His Government are bringing in detrimental measures that will impact on families and individuals—not just in Scotland, but across the length and breadth of the UK. Will he give us some detail on what is going on between the Treasury and the Scottish Government, and give an assurance that there will be no detrimental implications for people in Scotland as part of the fiscal framework?

[David Mundell]

Not only does the right hon. Gentleman not read written statements; he did not even listen to my answer to my hon. Friend the Member for Harrow East (Bob Blackman)—perhaps he will read Hansard. The reality is that the powers being delivered to the Scottish Parliament will make it the most powerful devolved Parliament in the world. Rather than SNP Members telling us what they will do with those powers, it is grievance and grudge. The Scottish Parliament acknowledges that tax credits can be topped up, so will the SNP top them up—yes or no?

[Ian Murray (Edinburgh South) (Lab)]

I take the opportunity this Armistice weekend to pay tribute to our armed forces for their sacrifices to this country.

Scottish and UK Ministers have said repeatedly that the fiscal framework negotiations will be concluded this autumn. Will the Secretary of State explain to the House and the country why they have been delayed until January at the earliest?

[David Mundell]

As I set out in my written statement, the UK Government are proceeding towards the comprehensive spending review, which I am sure the hon. Gentleman accepts is a major task, and shortly thereafter the Scottish Government will proceed with the Scottish draft Budget. When I met the Deputy First Minister John Swinney last week, he gave me confidence in his wanting to reach a fiscal framework agreement. That is certainly the position of the UK Government, which is why I was able to answer the question from the hon. Member for Lanark and Hamilton East (Angela Crawley) in the way that I did.

[Ian Murray]

I thank the Secretary of State for that answer, but Scotland’s First Minister has warned that the SNP Government may reject the Scotland Bill

“if the accompanying fiscal framework”

is not

“fair to Scotland”.

It is clear that they are looking for any excuse for the fiscal framework to delay further powers for Scotland. Will the Secretary of State assure us that the fiscal framework will be agreed before the Scottish Parliament is dissolved in March, and can he explain why both he and the SNP are conspiring to make this agreement the tartan TTIP—the Transatlantic Trade and Investment Partnership—delivered behind closed doors with no public transparency? That raises the question of what they are trying to hide.

[David Mundell]

As the hon. Gentleman well knows, a statement has been published after each meeting of the Joint Exchequer Committee. I take John Swinney and the Scottish Government at face value—that they want to reach a fair agreement for Scotland. The United Kingdom Government want to reach a fair agreement for Scotland. That is in all our interests and I am confident that that will be achieved.

[Owen Thompson (Midlothian) (SNP)]

4. What recent discussions he has had with Ministers of the Scottish Government on changes to the Scotland Bill.

[Neil Gray (Airdrie and Shotts) (SNP)]

11. What recent discussions he has had with Ministers of the Scottish Government on changes to the Scotland Bill.

[The Secretary of State for Scotland (David Mundell)]

I have regular discussions with the Deputy First Minister, John Swinney, and our officials are in close contact on provisions in the Scotland Bill. I have now tabled changes to strengthen the Bill in delivering the Smith commission agreement in full.

[Owen Thompson]

Having twice failed to acknowledge the question from my right hon. Friend the Member for Moray (Angus Robertson), will the Secretary of State disassociate himself from the financially illiterate comments of his hon. Friend the Member for Harrow East (Bob Blackman) who suggested that Scotland is subsidised? The fiscal framework will allow the Scottish Government the flexibility to pursue separate fiscal policies to those damaging policies progressed by the UK Government, thereby ensuring the highest levels of transparency. Will the Secretary of State provide the House with a timetable for the publication of a draft fiscal framework?

[David Mundell]

Monday’s written statement set out that the fiscal framework agreement is likely to come after the comprehensive spending review and once the draft Scottish Budget has been completed.

[Neil Gray]

This is the fourth opportunity for the Secretary of State to disassociate himself from the comments about people in Scotland being subsidy junkies—will he do so? Will he also confirm that negotiations on the fiscal framework are taking place between the Treasury and the Scottish Government, and that he is relying on a Scottish Lord to advise those negotiations?

[David Mundell]

It is clear that Scottish National party Members do not listen to answers, and if they read Hansard they will see the response that I gave to my hon. Friend. The fiscal framework is an agreement. Who is negotiating on behalf of the Scottish Government? It is John Swinney, the Deputy First Minister. The comments of SNP Members suggest that they do not have much confidence in his ability to reach a fair deal for Scotland.

[Wayne David (Caerphilly) (Lab)]

At the weekend the leader of the Scottish Labour party announced that a future Scottish Labour Government would use powers in the Scotland Bill to compensate people for the money that they will lose because of Tory cuts to tax credits. I am sure that the Secretary of State would not like that to happen, but will he confirm that new powers in the Scotland Bill will give the Scottish Parliament the ability to top up tax credits?

[David Mundell]

I do not agree with Kezia Dugdale, but at least she has the guts to stand up and say that she will put up taxes and put up tax credits. The SNP has said precisely nothing. It wants an argument about process, instead of telling us what it will do with these important new powers.

[George Kerevan (East Lothian) (SNP)]

5. What discussions he has had with his Cabinet colleagues on reforming the estimates process to take account of the changes made to the Standing Orders of the House to implement English votes for English laws.

--- Later in debate ---

[John Mann (Bassetlaw) (Lab)]

7. What assessment he has made of the level of anti-Semitism in Scotland.

[The Secretary of State for Scotland (David Mundell)]

Recorded incidents of anti-Semitism in Scotland are thankfully low, but I am not complacent. I echo the Prime Minister’s view that tackling anti-Semitism goes right to the heart of what we stand for as a country. Whatever our politics and whatever our faith, we must seek to defeat it.

[John Mann]

Last week, 15 Scottish MPs attended a briefing by the all-party parliamentary group against anti-Semitism. Given the good will that clearly exists, will the Secretary of State talk to the Scottish Government about how the system of state-funded security in Jewish schools in England could be emulated in Glasgow?

[David Mundell]

I certainly will, and I am very happy to do so. I should also say to the hon. Gentleman that, despite the many robust exchanges that we have in the Chamber, all MPs from Scotland are united in the view that we cannot tolerate anti-Semitism.

[Kirsten Oswald (East Renfrewshire) (SNP)]

The Secretary of State will know that, in my constituency, I represent Scotland’s largest Jewish community. At the briefing that was mentioned by the hon. Member for Bassetlaw (John Mann), I was pleased to hear about the very good inter-community relations and positive support from Police Scotland that exist in my area. Will the Secretary of State join me in applauding our Scottish Jewish communities for their great contributions to our country, and in deploring anti-Semitism and discrimination wherever they occur?

[David Mundell]

Absolutely, and I commend the hon. Lady for the extent to which, during her short time as a Member of Parliament, she has already engaged with that important Jewish community in Scotland. I also commend the work of the Scottish Government in that regard. As I said earlier, this is a matter on which we are all united, supporting Jewish communities and not accepting anti-Semitism.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

8. What steps he is taking to ensure that the new devolution arrangement which would result from the provisions of the Scotland Bill is financially neutral.

--- Later in debate ---

[Jo Cox (Batley and Spen) (Lab)]

9. What discussions he has had with women’s organisations on devolving competence for abortion legislation to the Scottish Parliament.

[The Secretary of State for Scotland (David Mundell)]

The Smith commission recommended that abortion law be devolved to the Scottish Parliament, but recognised that the issue needed to be handled sensitively by the UK and Scottish Governments. Following ministerial discussion between Scotland’s two Governments, I confirmed that abortion would be devolved in the Scotland Bill, and wrote to interested parties. As I have already confirmed, there will be ongoing engagement with women’s groups as the matter is taken forward.

[Jo Cox]

We believe that the woman’s right to choose should be universal. Does the Secretary of State envisage any change in abortion law in Scotland?

[David Mundell]

I think it would be helpful if I confirmed that because abortion law is being devolved, that does not mean that there will be any change. The existing arrangements will continue to apply in Scotland until they are changed by the Scottish Parliament. I am very pleased to note that the First Minister of Scotland has confirmed that she has no plans at all to change the existing abortion law in Scotland.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

May I urge the Minister to think again about the devolution of abortion to Scotland? To have smaller jurisdictions making such sensitive decisions on healthcare is deeply unwise and would allow those who want to lobby against the interests of healthcare to undermine the interests of women both in Scotland and in England. I urge him to consult far more widely before making this very big step.

[David Mundell]

I recognise, of course, the concerns the right hon. Lady raises, but the Scottish Parliament already has responsibility for criminal justice and health issues, and it has dealt with some very sensitive issues extremely well in my view. I have spoken to women’s groups in Scotland such as Engender, Abortion Rights Scotland and Scottish Women’s Aid. They believe that the devolution can take place but want to be consulted about that, and they will be.

[Several hon. Members rose—]

Oral Answers to Questions

David Mundell Excerpts

Wednesday 15th July 2015 Commons Chamber

[Robert Flello (Stoke-on-Trent South) (Lab)]

3. What recent discussions he has had with the First Minister of Scotland on the Government’s decision to end new subsidies for onshore wind farms by April 2016.

[The Secretary of State for Scotland (David Mundell)]

I have regular discussions with the Scottish Government on issues affecting the energy sector, including on our manifesto commitment to end new subsidies for onshore wind. I have also listened to organisations and communities across Scotland who support our policy of an affordable energy mix that also protects Scotland’s natural landscapes.

[Robert Flello]

According to the UK Government’s own report, 5,400 jobs depend on onshore wind. Surely the decision to end the subsidies prematurely puts many of these jobs at risk. Why are the Government so complacent about putting 5,400 jobs at risk?

[David Mundell]

The Conservative position on this issue was clear heading into the election. Of course the interests of the industry are important, but so are the interests of taxpayers and local communities, and I believe that the policy we have set out gets it right in Scotland and across the United Kingdom.

[Callum McCaig (Aberdeen South) (SNP)]

13. On “Sunday Politics Scotland”, the Secretary of State, following the early closure of the renewables obligation for onshore wind, stated that projects with the prospect of a grid connection would be eligible under the grace period. Will he stick to that commitment?

[David Mundell]

I have repeatedly made clear my support for this policy; I believe it is the right thing to do. It is clear in Scotland that the UK Government are on the side of local communities, but the SNP is on the side of developers.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

Niall Stuart, the chief executive of Scottish Renewables, says of this decision that it is

“bad for jobs, bad for investment and can only hinder Scotland and the UK’s efforts to meet binding climate change targets”.

Why does the Secretary of State think he knows better than Niall Stuart?

[David Mundell]

I certainly think I know better than the Liberal Democrats, who have been complicit in covering Scotland with wind farm developments. It is clear that ours is a popular policy among communities right across Scotland who do not want to see our landscape covered with unnecessary wind farm developments. I stand behind our policy.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

4. What recent discussions he has had with Ministers of the Scottish Government on progress on implementing the Scottish rate of income tax.

[The Secretary of State for Scotland (David Mundell)]

The UK and Scottish Governments continue to work closely with each other on the implementation of the Scottish rate of income tax. The question now is how the Scottish Government will use the new power when it comes into effect in April 2016.

[Seema Malhotra]

Transferring control of income tax to Scotland requires Her Majesty’s Revenue and Customs to identify who Scottish taxpayers are, but over the last year we have seen an increase in the risk rating by HMRC in terms of its ability to identify those taxpayers. Has that risk increased or decreased recently?

[David Mundell]

I can tell the House that the UK Government and the Scottish Government work closely together on this issue. Despite the bluster that we often see here, the reality is that the UK and Scottish Governments are working closely on many important issues for the people of Scotland. I am absolutely confident that the Scottish rate of income tax will be capable of being introduced next April. HMRC has done the necessary work; what we need now is to hear from the SNP what it intends to do with those tax powers.

[John Mc Nally (Falkirk) (SNP)]

In discussions with Scottish Ministers on the implementation of the Scottish rate of income tax, has the Secretary of State considered the benefits of devolving national insurance? Has he ruled out the devolution of additional tax powers or the full devolution of income tax to the Scottish Parliament—despite what was said before the “indyref”?

[David Mundell]

I would have given the proposal to devolve national insurance contributions a lot more credibility if a single SNP Member had stood up and spoken in favour of it during the Committee stage of the Scotland Bill. Instead, we had the spectacle of putting the issue to a vote without one Member setting out why the measure would benefit the people of Scotland.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

5. If he will make it his policy to table substantive Government amendments to the Scotland Bill in the House of Commons rather than in the House of Lords.

[The Secretary of State for Scotland (David Mundell)]

It is my intention to make substantive amendments in the House of Commons when the Bill comes back on Report.

[Martyn Day]

The Secretary of State knows that not a single amendment from the Opposition parties—not even amendments backed by 58 out of 59 Scottish MPs—has been accepted by his Government. Does he understand the anger people will feel if changes are brought through in the House of Lords rather than here in the Commons where they can be fully scrutinised by democratically elected Members? Will the Secretary of State make a commitment today to bring forward substantive changes to the Bill on Report to deliver on the Smith commission in full and implement the additional powers people voted for in the election?

[David Mundell]

What I know angers people in Scotland are stunts, soundbites and press releases aimed solely at taking opportunistic positions on issues. The Scotland Bill is a matter of substance, which will transfer significant powers to the Scottish Parliament, and it should be treated seriously. Some of the amendments, not least those for full fiscal autonomy, have not been serious. I am looking at all the amendments, sorting the wheat from the chaff, and will bring forward Government amendments on Report.

[Mr Christopher Chope (Christchurch) (Con)]

In welcoming my right hon. Friend’s statement, may I ask him how much notice he is going to ensure will be given of these forthcoming amendments?

[David Mundell]

I have already said to the Devolution (Further Powers) Committee in the Scottish Parliament that I will share our amendments with it—and I will, of course, share them with Members here and encourage a full debate. However, I want a debate on substance; I do not want stunts, soundbites and press releases. I want the best for the people of Scotland.

[Pete Wishart (Perth and North Perthshire) (SNP)]

That will not do, Secretary of State. You have been asked a very straight and clear question: will you now rule out bringing significant and substantial changes to the Scotland Bill in the unelected House of Lords? The House of Lords has never been held in such contempt by the Scottish people, who see it as nothing but a repository for the cronies of, and donors, to the UK parties. Will you rule out making significant changes through the House of Lords and do it in front of the elected Members of the House of Commons?

[Mr Speaker]

Order. I say very gently to the hon. Gentleman that I will rule out nothing, but I will leave it to the Secretary of State to do so. The debate runs through the Chair, and the hon. Gentleman, who is an experienced denizen of this House, should know that.

[David Mundell]

The hon. Gentleman does not listen. It was made clear repeatedly during the Committee stage of the Bill that amendments would come forward on Report and be debated in this House. The hon. Gentleman has been rumbled. He does not want to participate in a proper debate about the issues of concern to the people of Scotland; he is interested in press releases and stunts.

[Ian Murray (Edinburgh South) (Lab)]

My party has submitted more than 80 amendments to the Scotland Bill, more than all the other parties in the House combined. The Secretary of State has said today that he will listen, and will return to the House with amendments to the Bill. May I ask which of Labour’s amendments he will be accepting?

[David Mundell]

I will be reflecting on the amendments that Labour has tabled. Some were tabled in a constructive way, while others were obviously tabled in a partisan way. I will reflect on amendments to the Bill that are in the interests of the people of Scotland.

[Ian Murray]

New research conducted by the House of Commons Library, which I am releasing today, shows that the average family in Scotland working full time on the so-called national living wage will be more than £1,800 a year worse off after the Budget. The Scottish Federation of Housing Associations has said that the Budget has

“the potential to be just as damaging as the ‘bedroom tax’.”

Will the Government therefore accept Labour’s amendment to the Scotland Bill that would give the Scottish Government the power to design a welfare system fit for the Scottish people?

[David Mundell]

I believe that the substantial welfare powers in the Bill, which constitute responsibilities worth £2.5 billion, will give the Scottish Government and the Scottish Parliament a significant say in welfare arrangements in Scotland. What we need to hear from the SNP is exactly what sort of welfare system it intends to introduce, and, most important, who is going to pay for it.

[Graham Jones (Hyndburn) (Lab)]

6. What assessment he has made of the potential effects in Scotland of the devolution of decisions on varying the number of applications for new gaming machines where the maximum stake is above £10.

[The Secretary of State for Scotland (David Mundell)]

The Scotland Bill will give Scottish Ministers the power to vary the number of high-stakes gaming machines for new betting premises in Scotland. It is now for those Minsters to set out their policy intent.

[Graham Jones]

Fixed odds betting terminals are a plague on poor communities—they are known as the crack cocaine of gambling. Why is it acceptable for the Government to devolve that power to Scotland but not to local authorities like mine, which, along with 93 other authorities, has tabled a request for action from the Department for Communities and Local Government?

[David Mundell]

I know that the hon. Gentleman feels very strongly abut this issue, and I know that he and, indeed, others tabled amendments relating to it during the Committee stage of the Bill. I am definitely reflecting on it.

[Philip Davies (Shipley) (Con)]

Horseracing depends on its income from betting shops—that is, the money that they pay for picture rights. Has the Secretary of State made any assessment of the impact that this decision will have on funding for horseracing?

[David Mundell]

The view of the all-party Smith commission was that the proliferation of betting terminals was not good for Scotland, that it needed to be dealt with, and that the Scottish Government were best placed to deal with it. That is the measure that we are implementing.

[Ronnie Cowan (Inverclyde) (SNP)]

The draft clause would provide a power to restrict the number of FOBTs only when a new betting premise licence was being sought. The Law Society of Scotland has proposed that the clause should be amended to include existing and new premises. Will the Minister at least concede that to the Scottish Parliament?

[David Mundell]

I think I said in my earlier answer that we had not reached those amendments on that day of the Committee stage, but I am reflecting seriously on them.

[Mr Peter Bone (Wellingborough) (Con)]

7. What estimate he has made of the level of public expenditure per person in Scotland in each of the last three years.

--- Later in debate ---

[Andrew Bridgen (North West Leicestershire) (Con)]

9. What progress has been made on implementation of the recommendations of the Smith commission.

[The Secretary of State for Scotland (David Mundell)]

We are making good progress in implementing in full the all-party Smith commission agreement. The Scotland Bill, which will deliver significantly increased powers to the Scottish Parliament, was introduced on the first day of this parliamentary Session and has just completed four days of intense scrutiny on the Floor of this House.

[Andrew Bridgen]

Does the Secretary of State agree that the progress of the Smith commission recommendations shows that the three main Unionist parties are fulfilling their commitment to devolve further powers to Scotland, and that it is therefore unacceptable for others to seek baseless grievances to create the impression of some betrayal to further their own narrow political agenda?

[David Mundell]

I could not agree with my hon. Friend more. This week more than any other the narrow opportunism of the SNP has been exposed. The only issue on which that party is consistent is breaking up the United Kingdom, on which it will say or do anything.

[Kirsty Blackman (Aberdeen North) (SNP)]

At business questions on 2 July the Leader of the House stated:

“Independent assessments say we are implementing the Smith commission report”—[Official Report, 2 July 2015; Vol. 597, c. 1633.]

To date the Scottish Secretary has been unable to produce these. Will he now name those independent assessments or ask his right hon. Friend the Leader of the House to correct his previous statement?

[David Mundell]

I am confident in the statements I have made throughout the passage of this Bill. I did not see the hon. Lady contributing in Committee or on Second Reading, but, if she had, she would have heard me say that I am absolutely confident that this Bill will deliver the Smith commission in full.

[Chris Stephens (Glasgow South West) (SNP)]

10. What discussions he has had with the Scottish Trades Union Congress on trade union reform.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 10th June 2015 Commons Chamber

[Roger Mullin (Kirkcaldy and Cowdenbeath) (SNP)]

1. What discussions he has had with the Chancellor of the Exchequer on the potential effects on Scotland of measures in the next Budget.

[The Secretary of State for Scotland (David Mundell)]

This is the first Scottish questions since the passing of the former Member for Ross, Skye and Lochaber. Charles Kennedy was a regular participant at Scottish questions and I wish to pass on my personal condolences to his family at this sad time.

I have regular discussions on a range of economic issues with my Cabinet colleagues, including the Chancellor of the Exchequer.

[Roger Mullin]

It gives me great pleasure to welcome the Secretary of State to his new role and wish him well. In my constituency RBS has announced the closure of branches in Kelty and in Aberdour, a further sign of withdrawal from the banking sector that should be supporting small and medium-sized enterprises and communities. What is the right hon. Gentleman’s view of the retail banking sector in Scotland? Has he had discussions with the Chancellor about creating challenger banks out of RBS?

[David Mundell]

This is a momentous question because it is the first time that a Member representing Kirkcaldy and Cowdenbeath has asked a question at Scottish questions. I share the hon. Gentleman’s concern about RBS’s approach to branch closures, its commitment to smaller communities and its breach of a commitment not to be the last branch to leave a community. I will certainly take up with RBS the issues he has raised.

[Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)]

The Secretary of State will know that my Dual the A1 campaign has achieved committed funding from this Government of £290 million for the 13 miles of dualling towards the Scottish border. I will need cross-border support to build the economic case for the remaining 35 miles to complete the dualling between London and Edinburgh. Will my right hon. Friend support my campaign?

[David Mundell]

I have said in the House that I fully support that campaign, and I know that it also has the support of my colleague John Lamont, the local Member of the Scottish Parliament on the Scottish side of the border.

[Angus Robertson (Moray) (SNP)]

I associate my right hon. and hon. Friends with the comments of the Secretary of State in respect of Charles Kennedy, and I welcome the right hon. Gentleman back to his place in his role as Secretary of State for Scotland.

The next UK Budget is going to continue the austerity course of the Tory Government, and it will hit the poorest in society. Will the Secretary of State be up front and explain whom it will hit when £12 billion of cuts hit families and communities across Scotland?

[David Mundell]

When it comes to being up front, it is the Scottish National party that needs to be up front about its proposals for taxation and spending. It used to tell us it wanted full fiscal autonomy, but now it does not seem to want that. It is for the SNP to answer the question of where the additional spending in Scotland would come from.

[Angus Robertson]

The last time I looked, this was Scottish questions, where it is the Government who have to answer the questions on the powers for which they are responsible. They are about to bring in £12 billion of cuts and the Secretary of State for Scotland has not been up front about where they will hit. On a related topic, the living wage can make a huge difference to those on low incomes, and I am very proud that the SNP Scottish Government are the first Government in the UK to become an accredited living wage employer. When will his Department and his Government follow the SNP lead on the living wage?

[David Mundell]

I am very proud of the proposals that my colleague Ruth Davidson has taken forward in the Scottish Parliament to incentivise small businesses to pay the living wage. One would have thought, when one hears SNP rhetoric, that it supported such proposals, but it does not.

[Andrew Stephenson (Pendle) (Con)]

13. A number of businesses in Pendle trade with Scotland, including Carlson Filtration in Barnoldswick, which supplies products to the Scotch whisky industry. Does my right hon. Friend therefore agree that we are better together?

[David Mundell]

I absolutely agree with my hon. Friend that businesses right across the United Kingdom benefit from the continuance of our United Kingdom. This Government’s commitment particularly to the Scotch whisky industry is evidenced in the last Budget, which was warmly welcomed by the Scotch Whisky Association.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

First, I thank the Secretary of State for his fine words in relation to the passing of Charles Kennedy and of course associate myself and my party with them.

The Secretary of State will have seen at the weekend reports indicating that the Chancellor of the Exchequer intends to use next month’s Budget to start increasing fuel duty again. As the economic recovery starts to take hold, does the Secretary of State understand the very serious impact that that could have on the economies of rural Scotland, and will he use his office to argue against such a move?

[David Mundell]

The right hon. Gentleman should be wary of newspaper reports. Let us hear what is said in the Budget. The Chancellor has made no clear statement of any intention to increase fuel duty.

[John Stevenson (Carlisle) (Con)]

I, too, congratulate my right hon. Friend on his superb election victory and his appointment as Secretary of State for Scotland. Does he agree that, with greater fiscal devolution to the Scottish Parliament, places such as Carlisle will assess the potential effects on Carlisle of measures in the Scottish Government’s budgets as well as the national Budget? Does he also agree that the Carlisle principle set out during the election campaign is important not only to the north of England but to the south-west of Scotland?

[David Mundell]

Indeed I do agree with my hon. Friend. Of course, the nature of the devolution settlement means that different decisions will be taken in Scotland on those matters that are devolved, so inevitably different policies will be pursued on one side of the border from the other. I think that the Carlisle principle set out by the Prime Minister during the general election should be followed.

[Ian Murray (Edinburgh South) (Lab)]

As this is the first Scottish questions, I also pay tribute to Charles Kennedy. He was warm, he was witty, he was kind, and our condolences go out to his family, his friends and his party, and, of course, his son Donald.

How many more Scottish children of working-age families will fall into poverty as a result of his Government’s decisions on welfare?

[David Mundell]

There is no evidence that there will be a further increase in the number of children falling into poverty as a result of welfare changes in Scotland. Indeed, the evidence shows that since statistics began there has been a relative decrease in child poverty in Scotland. As the hon. Gentleman will know, the Scotland Bill is devolving extensive welfare provisions to the Scottish Parliament, and if the Scottish Parliament believes that there is any detriment in Scotland it will have the opportunity to top up or create new benefits.

[Ian Murray]

The Secretary of State says that there is no evidence. I find that answer contemptible. Let me give him some evidence. John Dickie, the head of the Child Poverty Action Group, has said that the Government’s £12 billion cuts to welfare could lead to a “child poverty crisis”. The Institute for Fiscal Studies has said that those most likely to be affected are low-income working households with children. Is it not time that the Secretary of State stopped ducking the question and came clean about the impact this will have on vulnerable Scottish families, given that 50% of children in poverty in Scotland are from families who are in work?

[David Mundell]

The Government’s position is clear: the best way out of poverty is into work. There is a record low number of workless households in Scotland, and I hope that the hon. Gentleman welcomes that. I also hope that he welcomes the Government’s decision to devolve significant welfare powers to the Scottish Parliament so that if there are specific issues in Scotland decisions can be made in Scotland to deal with them.

[Paul Farrelly (Newcastle-under-Lyme) (Lab)]

2. When he plans to publish the third annual report on the implementation and operation of part 3 (Financial Provisions) of the Scotland Act 2012.

[The Secretary of State for Scotland (David Mundell)]

The report has already been published: it was laid before this Parliament on 23 March 2015.

[Paul Farrelly]

I thank the Secretary of State and also say how much I and all my Back-Bench colleagues will miss the real gentleman who was Charles Kennedy.

Part 3 of the Act includes the power to devolve further existing taxes as well as creating new ones. Just so that we know where we stand following the election, will the Secretary of State update the House on what further taxes the emboldened Scottish Government have asked to be devolved and which requests he is minded to grant?

[David Mundell]

The hon. Gentleman will know from the Second Reading debate on the Scotland Bill that there was some uncertainty on the SNP Benches about whether proposals would be brought forward to put in place the SNP’s previous policy of full fiscal autonomy. I now understand that such proposals will be brought forward, but only on the basis that other parties with a real interest in Scotland will vote them down.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

Will my right hon. Friend explain to SNP Members how the Barnett formula actually works? If there are spending cuts in English Departments, it follows that there are cuts in Scottish spending as well. If they support the Barnett formula in the vow, they presumably understand why these reductions have to be made.

[David Mundell]

It is not clear what the SNP understands in relation to fiscal matters, but I agree at least with the new hon. Member for Edinburgh East (Tommy Sheppard) that fiscal autonomy for Scotland would be “a disaster”.

[John Howell (Henley) (Con)]

3. What recent discussions he has had with business groups in Scotland.

--- Later in debate ---

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

5. What steps he is taking to tackle security issues on the Stranraer to Larne ferry route.

[The Secretary of State for Scotland (David Mundell)]

Home Office Immigration Enforcement in Northern Ireland and Police Scotland work together closely to intercept and share information about illegal immigrants travelling between the west of Scotland and the Northern Ireland ports.

[Meg Hillier]

Of the people stopped on that route—they are a small percentage of the total number of travellers—a very high number are illegal migrants or people who mean to do harm to our country and seek backdoor routes between the Republic and mainland Britain. What conversations has the Secretary of State had with Police Scotland to ensure that the resources are there to catch those people?

[David Mundell]

I have been heavily involved in this issue and I was very disappointed that the Scottish Government chose to dissolve Dumfries and Galloway police force, which had considerable expertise in that area. Police Scotland has set up a ports unit, which is seeking to deal with these issues, but I will continue to pursue the hon. Lady’s concerns with the Scottish Government.

[Richard Arkless (Dumfries and Galloway) (SNP)]

This is yet another example of the Scottish Government having to step in and stump up following further UK Government cuts. Given the security concerns raised by the hon. Member for Hackney South and Shoreditch (Meg Hillier) and the further cuts proposed to Scotland’s budget, will the Secretary of State commit to revisit his Government’s decision to withdraw border agency staff from the port of Stranraer in 2010?

[David Mundell]

I particularly welcome the hon. Gentleman to his place because he is my neighbouring MP, but I do not share his analysis. The most unhelpful contribution to policing in Stranraer and surrounding areas was the Scottish Government’s decision to get rid of Dumfries and Galloway police force, against the wishes of local people.

[Ian Paisley (North Antrim) (DUP)]

What efforts is the Secretary of State making to ensure that the illicit trade in cigarettes, other contraband and oils through these ports is tackled effectively, so that the criminals behind it can be stamped out once and for all?

[David Mundell]

I am happy to confirm that I will raise those specific issues in my next discussions with the Chief Constable of Police Scotland.

[Kevin Brennan (Cardiff West) (Lab)]

6. What assessment he has made of the potential effect of full fiscal autonomy for Scotland on the level of tax receipts in Scotland.

[The Secretary of State for Scotland (David Mundell)]

In March, Her Majesty’s Treasury published an analysis that estimated that funding available to Scotland under full fiscal autonomy would be £7.7 billion lower in 2015-16 compared with the current arrangements. The assessment made by the Institute for Fiscal Studies shows that deficit reaching £9.7 billion in 2019-20.

[Kevin Brennan]

The Secretary of State and his Tory friends have an ideological fixation with austerity, but is he surprised that the nationalist ideology of a self-identifying left-wing party such as the Scottish National party leads it to advocate full fiscal autonomy, which would lead not just to austerity but to “austerity-max”?

[David Mundell]

I agree with part of the hon. Gentleman’s analysis, but he will be aware that it is now not clear what the SNP is asking for. I welcome the fact that it will be able to table amendments in relation to full fiscal autonomy during the Committee stage of the Scotland Bill. My suspicion, however, is that it is asking for something it does not really want, and that it will complain when it does not get it.

[Michael Fabricant (Lichfield) (Con)]

Does my right hon. Friend agree that to reduce poverty in Scotland and indeed in the rest of the UK we need full employment? Would not the worse thing be to have an SNP Government in the United Kingdom with no understanding of fiscal responsibility, which would result in mass unemployment and mass poverty?

[David Mundell]

I am not clear whether my hon. Friend is suggesting that the SNP take over the Government of the UK, although that may be one of Miss Sturgeon’s aspirations—we do not know. It is for the people of Scotland to choose their own Government, but the SNP’s policies are clearly now for higher taxation and we need to know what that tax will be.

[Stewart Hosie (Dundee East) (SNP)]

The Scottish Secretary is absolutely wrong about full fiscal autonomy. It does not lead to a reduction in tax yield. Surely he would agree that if we were to use the flexibility in the tax code to grow the economy and increase tax yield, that would be a good thing.

[David Mundell]

I agree with two of the hon. Gentleman’s colleagues from Edinburgh, one of whom has described full fiscal autonomy as a disaster and the other of whom has described it as suicidal.

[Ian Murray (Edinburgh South) (Lab)]

Given that the respected Institute for Fiscal Studies has estimated that full fiscal autonomy would result in a near £10 billion black hole in Scotland’s finances, and that, as the Secretary of State said, the Scottish National party Member for Edinburgh East (Tommy Sheppard) has called it a disaster—perhaps we should lock him in the gents—is it not clear that it would not lead to a stronger Scotland or promote fairness and social justice? However, given the Scottish Government’s reluctance to accept the impartial IFS’s figures, will the Secretary of State back Labour’s amendment to the Scotland Bill to provide a full and independent report on the implications of full fiscal autonomy?

[David Mundell]

If we have any votes in the House on full fiscal autonomy, we may have to ensure that the toilets are enlarged, because I suspect all SNP Members will want to lock themselves in so that they can absent themselves from any decision.

[Kevin Barron (Rother Valley) (Lab)]

7. What assessment he has made of the potential effect on families in Scotland of the Government’s policy on child benefit.

[The Secretary of State for Scotland (David Mundell)]

Child benefit will continue to provide essential help for low-income families, and the latest statistics show that it has benefited more than 966,000 families and children in Scotland. We are also supporting Scottish families by cutting tax for nearly 2.3 million people, taking 261,000 people out of paying income tax altogether. Some 210,000 families in Scotland will also benefit by up to £6,000 a year from tax-free childcare.

[Kevin Barron]

On a day when the Chancellor is saying that he will take action on how this Government and future Governments run deficits, will the Secretary of State tell us that he will protect the worth of child benefit in Scotland for the lifetime of this Parliament?

[David Mundell]

We have made our position clear—we are keeping child benefit.

[Angela Crawley (Lanark and Hamilton East) (SNP)]

Will the Secretary of State acknowledge that the people most likely to be impacted by the changes to the child benefit policy are the most vulnerable individuals in society? Those people are also the most likely to be affected by the changes made in the welfare reforms implemented by this Government.

[David Mundell]

I could not have been clearer—we are retaining child benefit and keeping to the promises made in the election campaign. We are also devolving significant responsibility for welfare to the Scottish Parliament, so that if it wishes to make alternative decisions, it will have the capacity to do so, provided that it can pay for them.

[Patrick Grady (Glasgow North) (SNP)]

8. What discussions he plans to have with the Chancellor of the Exchequer on funding for the Scottish Government and the next Budget.

[The Secretary of State for Scotland (David Mundell)]

On Monday, the Chancellor of the Exchequer and the Chief Secretary to the Treasury met Scotland’s Deputy First Minister to discuss the new fiscal framework. While the Barnett formula will continue as promised, the Scottish Government will be less reliant on the block grant.

[Patrick Grady]

The SNP manifesto proposed an alternative to austerity—0.5% public spending increases a year. Does the Secretary of State accept that that means that his Government’s cuts are ideological, not inevitable, and that it is in fact possible for the Government to increase public spending by £93 billion a year to invest in the economy and public services?

[David Mundell]

What is now clear is that the SNP wants to put up taxes in Scotland. Its next Scottish Parliament manifesto needs to tell the people of Scotland by how much.

[Nick Smith (Blaenau Gwent) (Lab)]

9. How many companies in Scotland have been prosecuted for non-compliance with the national minimum wage since 2010.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 26th November 2014 Commons Chamber

[Guy Opperman (Hexham) (Con)]

1. If he will give guidance to the Smith commission on ensuring that its proposals do not hamper cross-border trade with the north of England.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

At the outset of this process, Lord Smith set out a number of guiding principles underpinning cross-party talks. They included the principle that the proposals should strengthen Scottish devolution and the Scottish Parliament within the United Kingdom, and that they should not cause detriment to the UK as a whole or to any of its constituent parts.

[Guy Opperman]

My constituents campaigned very strongly so that we remained “better together”, and whether that related to farmers, business, trade or joint air passenger duty, it continues. Does the Minister welcome the borderlands initiative between local authorities on either side of the border?

[David Mundell]

I very much welcome the borderlands initiative, which is an excellent example of cross-border working. Councils are working together across the Scottish and English borders to maximise economic and cultural opportunities.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

I understand that the Smith commission has written to a number of companies asking for their views on the question of what should be devolved. Companies in my constituency are telling me that if Scotland were to be given some of the powers that are being considered, they would leave Scotland. Is that good or bad?

[David Mundell]

The Smith commission has engaged in a widespread consultation with all aspects of Scottish society. I understand that there were some 14,000 submissions, and the commission will obviously look closely at all of them.

[Sheila Gilmore (Edinburgh East) (Lab)]

What everyone wants, in Scotland and in England, is the certainty of knowing how we are to move forward. My party is committed to including a Scotland Bill in the Queen’s Speech when we win the general election next May. Will the Minister’s party make the same commitment?

[David Mundell]

I do not share the hon. Lady’s arrogance, but what I do share is the commitment to delivering the Smith commission’s proposals. We have made it absolutely clear that draft legislation will be produced by 25 January next year, and there will be a commitment to enact that legislation in the next Parliament.

[Angus Robertson (Moray) (SNP)]

A wide range of proposals have been submitted to the Smith commission which would foster economic growth, job-creating powers, and the ability to tackle social inequality. Is the Minister confident that the commission will recommend the devolution of corporation tax, job-creating powers and the setting of a minimum wage?

[David Mundell]

I am not going to prejudge the Smith commission. All that I know in relation to the hon. Gentleman’s proposals is that his party had an opportunity to select him as one of its commissioners so that he could argue for those measures, and, as far as I am aware, it did not do so.

[Angus Robertson]

Following the independence referendum, survey evidence in Scotland showed that 71% of Scottish respondents wanted the Scottish Parliament to control all taxation raised in Scotland, 66% wanted devo-max—that is, the devolution of all areas of Government policy except defence and foreign affairs—and 75% wanted control of the welfare and benefits system to be devolved. Is the Minister confident that the Smith commission will recommend the devolution of those powers?

[David Mundell]

The Smith commission includes two representatives of the Scottish National party, and is seeking to reach cross-party agreement. What we all know is that 55% of people in Scotland—more than 2 million—voted to remain part of the United Kingdom.

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

The Smith commission will report tomorrow. Its report will lay the foundations for greater devolution for Scotland and, hopefully, the devolution of powers from Edinburgh, at the centre, to a more local level. The Minister referred to a closer working relationship between the borderland areas in the north of England and the south of Scotland. Will he guarantee that whatever the Smith commission delivers will add up fiscally, to ensure that it does not work to the detriment of the people of Scotland?

[David Mundell]

That is one of the principles guiding the Smith commission’s work. However, the hon. Gentleman is right to emphasise that, notwithstanding the commission’s recommendations on powers for the Scottish Parliament and more devolution in Scotland, in the south of Scotland we need to continue to work with our friends and neighbours in the north of England.

[Mrs Anne McGuire (Stirling) (Lab)]

2. What recent discussions he has had with his ministerial colleagues on shipbuilding on the Clyde.

--- Later in debate ---

[Ian Murray (Edinburgh South) (Lab)]

9. What steps he is taking to encourage firms in Scotland to pay the living wage.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

The Government support businesses that choose to pay the living wage, where it is affordable and does not cost jobs. Decisions on what wages to set, above the national minimum wage, are for employers and workers. However, we encourage employers to pay the living wage where possible.

[Jim McGovern]

Last week, Glasgow Celtic, the football club that I support—indeed, I am a season ticket holder—announced that anyone working there who was not on the living wage would be put on to it. That will mean a major increase for many of the club’s employees. Where Celtic leads, many others follow. We have only to look back to 1967 when Celtic became the first British club to win the European cup. They were followed, famously, by Manchester United in 1968—

[Jim McGovern]

What can the Minister do to ensure that more organisations and major employers in Scotland pay the living wage?

[David Mundell]

On this occasion, I share the hon. Gentleman’s view that where Celtic football club has led, others should follow. We want to encourage all employers who are in a position to do so to pay the living wage.

[Ian Murray]

Pay is one of the most important tools in helping to fight poverty, but it also makes perfect business sense. The Government appear to have absolutely no plans to encourage employers to pay the living wage. The Minister will also be aware that the Scottish National party Government have just refused to put the living wage into Government contracts. Should not the Government be supporting Labour’s “make work pay” contracts, which would share tax benefits with employers, thereby encouraging them to pay the living wage?

[David Mundell]

I completely refute the hon. Gentleman’s suggestion that the Government are not encouraging employers to pay the minimum wage where they are in a position to do so and it does not cost jobs. This Government’s commitment to those on low pay is clear from the way in which we have raised the personal allowance. His party’s position is far from clear—Labour claimed that it would reduce the national minimum wage to a level that is actually lower than it is projected to be in 2020.

[Margaret Curran (Glasgow East) (Lab)]

As we approach the first anniversary of the tragedy, I am sure the whole House will join me in remembering the victims of the Clutha helicopter crash that happened in my own city. Our thoughts will be with the victims and their families this Saturday.

Does the Minister agree that the living wage is a means of addressing the scandal of low pay in Scotland, and that tackling low pay should be a higher priority for this Government? In the light of that, can he tell the House how many people in Scotland were paid below the minimum wage in the past year?

[David Mundell]

I join the hon. Lady in highlighting the first anniversary of the terrible Clutha tragedy. It is a credit to all Members of this House and particularly to the people of Glasgow that not just at the time but throughout the past year they have responded to that.

The hon. Lady will know that unlike the Labour Government, this Government have been keen to ease the procedures whereby those who pay below the minimum wage are named and shamed. Earlier this year 25 employers that had not paid the minimum wage were named, three of which were in Scotland.

[Margaret Curran]

That is a most disappointing answer. In fact, 11,000 people in Scotland are paid below the minimum wage, and it is shameful that neither the Minister nor the Government know that figure. In the past two years there has not been a single prosecution, and only two companies in Scotland have been named and shamed. Eleven thousand people in Scotland are not paid what they are entitled to. Given the gross failure of this Government properly to enforce the national minimum wage, should not the Minister apologise to those 11,000 people who have been failed by this Government? He does not even know who they are.

[David Mundell]

It is the hon. Lady who needs to apologise. Anyone watching this exchange would think that there had been were prosecutions under the previous Government. There were absolutely none. If she wants to get her facts right, I can tell her that three companies have been named and shamed in Scotland. They are Sun Shack Ltd in Hamilton, Cargilfield School Ltd in Edinburgh and Perth Hotels Ltd in Perth. If she has the details of additional people who are not receiving the minimum wage, rather than political point-scoring in this House, she should take their details to Her Majesty’s Revenue and Customs so that their employers can be dealt with.

[John Stevenson (Carlisle) (Con)]

4. When he expects the Smith commission to publish its report; and what steps are planned to implement its findings.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 15th October 2014 Commons Chamber

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

1. When the Joint Ministerial Committee next plans to meet; and what will be discussed at that meeting.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

The Joint Ministerial Committee is an important mechanism for the UK Government and the devolved Administrations to discuss shared priorities and matters of mutual interest. The European session of the JMC met on Monday 13 October.

[Cathy Jamieson]

Given that all parties now want to see further devolution to Scotland, does he agree that it is time for a review of how that Committee operates and how we can strengthen the way in which the Scottish Parliament, the UK Parliament, the Scottish Government and the UK Government work together in the best interests of the people of Scotland?

[David Mundell]

I absolutely agree with the hon. Lady. I hope that discussion about the relationship between Scotland’s two Governments will be part of the outcome of the Smith commission’s work; if not, I am sure it will form part of future debate in this House and elsewhere.

[Guy Opperman (Hexham) (Con)]

Surely the key question for the Committee to take to the Scottish National party Government is that no means no?

[David Mundell]

I certainly hope that it is now clear that the decisive result of the referendum is respected and that we move forward on behalf of all of Scotland to deliver the new devolved Scotland that everyone wants to see.

[Mr Frank Roy (Motherwell and Wishaw) (Lab)]

The Minister may be aware that in the past hour or so Tata Steel has announced its intention to sell the long products division—more or less, the plate mills in Scunthorpe, Workington, Teesside, Cambuslang and Motherwell—of its company. Throughout the United Kingdom, workers will be affected by this potential sale. Will the Minister ensure that he and other Ministers in both Governments intervene in this national issue for the sake of the workers and for the sake of the construction and manufacturing industry and the infrastructure of the United Kingdom?

[David Mundell]

This is a serious issue for both Governments. In the past it has been demonstrated that the Scottish Government and the UK Government can work together on serious issues that affect employment in Scotland, such as Grangemouth. I assure the hon. Gentleman that we will follow exactly the same approach. The Secretary of State and I will raise this issue with ministerial colleagues and do everything we can to work with the Scottish Government, North Lanarkshire council and other interested parties.

[Angus Robertson (Moray) (SNP)]

It has been officially confirmed today that Nicola Sturgeon will become the next leader of the Scottish National party and Scotland’s first female First Minister. I would like to extend congratulations to her. She will be outstanding in those roles. Will the Minister be discussing the vow signed by the three UK leaders and the extensive new powers that it promises? What extensive new powers does the Minister especially support being devolved to Scotland?

[David Mundell]

I join the hon. Gentleman in congratulating Nicola Sturgeon on emulating Margaret Thatcher and becoming the female leader of her party. I most certainly look forward to working with her as the first female First Minister of Scotland. My previous experience of Nicola Sturgeon is that she has adopted a constructive approach to discussions with the UK Government.

The hon. Gentleman will be aware that the Smith commission has been established. All the political parties in Scotland have submitted their proposals. I particularly welcome the fact that the SNP will be part of that process. He will know that my leader in Scotland, Ruth Davidson, has made it quite clear that we see the Strathclyde commission proposals from the Conservative party as a floor and not a ceiling to those discussions.

[Angus Robertson]

I am sure the Minister would not be wanting to create a false impression. There is absolutely no comparison between Nicola Sturgeon and Margaret Thatcher. Nicola Sturgeon will be leading the most popular political party in Scotland. Margaret Thatcher destroyed the Tory party, and he is the living proof of its having only one seat in Scotland.

I am sure that most people in Scotland think that extensive new powers would help the economy grow, create jobs and deliver greater social fairness, so let me give the Minister another opportunity to outline which ones he is in favour of. Will he please, at the Dispatch Box, outline which extensive new powers he is in favour of devolving to Scotland?

[David Mundell]

I am very disappointed that the hon. Gentleman has not read the Conservative submission to the Smith commission, which clearly sets out, for example, our support for the devolution of 100% of income tax powers to the Scottish Parliament. I welcome the comment from the hon. Member for Glasgow East (Margaret Curran) that she is open to those discussions. We have made it clear that the Conservative position is one of flexibility, and we welcome the fact that the Scottish National party is taking part in the discussions. However, the place for those discussions is the Smith commission, so rather than constantly trying to portray the vow or other commitments as having been broken, let the SNP put its time and energy into the Smith commission process.

[Margaret Curran (Glasgow East) (Lab)]

May I begin by paying tribute to the great Scottish journalist Angus Macleod, who died recently? On behalf of the Opposition, I send condolences to his family.

During the referendum campaign, many voters expressed their deep desire for change in our politics and society. Does the Minister believe that the Joint Ministerial Committee should address the figures published today that show growing poverty across Scotland? That one in three children in Glasgow now live in poverty should not just shock us, but shake us into immediate action. What are the Government doing to give greater priority to the fight against poverty in Scotland? Does the Minister believe that Labour’s policy of increasing the minimum wage to £8 would help in that fight?

[David Mundell]

I certainly agree that the people of Scotland are fed up with the politicking they see on a range of issues. Nobody in Scotland wants to see child poverty. The people of Scotland want politicians to work together to deal with these issues. The Scottish Parliament already has extensive powers that have not necessarily been used while we have been distracted by the referendum process. I hope that a new First Minister in Scotland will be less divisive and that there will be less politicking on these issues, and that we can all work together to reduce levels of child poverty in Scotland.

[Neil Carmichael (Stroud) (Con)]

2. What assessment he has made of the implications for Government policy of the outcome of the referendum on independence for Scotland.

--- Later in debate ---

[Mr Andrew Robathan (South Leicestershire) (Con)]

4. What assessment he has made of allegations of intimidation during the recent referendum campaign.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

I hope that we can all agree that the referendum campaign was carried out in a democratic and open way, giving Scotland the debate it deserved. Given that the people of Scotland voted decisively to remain part of the United Kingdom, what matters now is respecting the result and working together to secure the new devolution settlement.

[Mr Robathan]

Elections and voting in the United Kingdom have traditionally been viewed as free and fair, and free from intimidation, but only yesterday the hon. Member for Glasgow South West (Mr Davidson) described being called a traitor and a Judas. A former Deputy Leader of the Scottish National party was reported as saying that there will be a day of reckoning for those opposed to separation. There has been graffiti stating that those who voted no will be shot. That is disgraceful and a shame on those responsible. Notwithstanding the devolution of justice, will the Minister ask the Advocate-General for Scotland, Lord Wallace, to see whether further action should be taken and whether there was any criminal activity during the referendum campaign?

[David Mundell]

It is evident that there was some appalling behaviour during the referendum, not least towards people such as J.K. Rowling, when they expressed their views. However, I think we must regard the referendum overall as a triumph of the democratic process. After all, 85% of the Scottish population voted, and voted decisively to keep Scotland in the United Kingdom.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

It is clear that there was intimidation during the referendum, but a more important question for the Minister is: when does he see the possibility of another referendum? The last thing we need to get in the way of politicians’ day business is another referendum in a generation.

[David Mundell]

I absolutely agree. It is disappointing that in the days before the referendum the First Minister of Scotland was able to say that he did not foresee another referendum in his lifetime; then he said a generation; and now he is saying a few months. That is totally unacceptable. The sovereign will of the Scottish people is that Scotland should remain part of the United Kingdom. We should all come together to forge the new devolution settlement.

[Sir Malcolm Bruce (Gordon) (LD)]

On the Tuesday before the referendum, I was present in Inverurie when a small group of Better Together supporters who had been manning a street stall day was suddenly surrounded by a flash mob of 150 nationalists waving banners, shouting, playing music and creating an intimidating atmosphere. The Better Together supporters stood their ground sufficiently to ensure that the people of Gordon rejected independence by a majority of nearly 2:1.

[David Mundell]

The right hon. Gentleman is absolutely right to highlight the fact that such intimidatory and bad behaviour in the street and on the internet did nothing to further the cause of Yes Scotland. If demonstrators had not been outside the BBC but had been knocking on doors on the Sunday before the referendum, the result might have been closer.

[Pete Wishart (Perth and North Perthshire) (SNP)]

May I tell the Minister what intimidation feels like? Banks threatened to leave Scotland; supermarkets threatened to put up prices; big business threatened to relocate to London; No campaigners told pensioners they would lose their pensions. The premise of “Project Fear” was built, designed and packaged to scare Scottish voters from voting for independence.

[David Mundell]

It disappoints me that the hon. Gentleman has so little faith and confidence in the voters of Scotland. I believe they were quite capable of seeing through bluff and bluster from any campaign. They voted in the way they wanted, which was to keep Scotland as part of the United Kingdom.

[Ian Lucas (Wrexham) (Lab)]

5. What the Government’s timetable is for constitutional reform in Scotland.

Oral Answers to Questions

David Mundell Excerpts

Wednesday 6th November 2013 Commons Chamber

[Andrew Stephenson (Pendle) (Con)]

4. What assessment he has made of the effects on businesses in north-west England of Scotland remaining part of the UK.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

The detailed Scotland analysis papers we have published underline the value to businesses across the whole of the United Kingdom of Scotland remaining part of the Union. As it stands, the UK is a true domestic single market and currency union with free movement of goods and services, capital and people.

[Andrew Stephenson]

The Minister will be aware of the encouraging economic signs across the north-west of England, with employment up and a recent regional purchasing managers index showing that growth is higher than in any other region in the UK. Does the Minister agree with me that remaining part of the UK is the best way forward for Scottish business?

[David Mundell]

I absolutely agree with my hon. Friend that that is the best way forward not just for Scottish business but for business in the whole of the UK. Businesses in his constituency benefit from the single domestic market, which includes Scotland.

[Stewart Hosie (Dundee East) (SNP)]

I expect that Scotland will vote yes to independence next year and in those circumstances, the best hope for businesses in the north-west of England—and, indeed, businesses throughout England, which sell £50 billion of goods and services to Scotland every year—is the maintenance of sterling in a formal currency union, which was described by the right hon. Member for Edinburgh South West (Mr Darling) as logical and desirable. Does the Minister agree with the right hon. Gentleman or with yesterday’s scaremongering “project fear” nonsense from the Chief Secretary?

[David Mundell]

I most certainly do not share the hon. Gentleman’s expectation of the outcome of the referendum. He now chooses who to listen to. He used to listen to Mr Jim Cuthbert, who said:

“It’s very difficult to have independence within a currency union. Greece says it all. In any currency union, there are restrictions on individual members and that doesn’t equate to independence.”

[Gordon Banks (Ochil and South Perthshire) (Lab)]

Businesses in north-west England and in Scotland need much the same things, so will the Minister tell the House what Mark Allan, Axa UK’s economist, Brian Ashcroft, professor of economics at Strathclyde university, Andrew Goudie and John Kay, former economic advisers to Alex Salmond, and Gavin McCrone, former chief economist at the Scotland Office, have in common on the impact of currency decisions on business if Scotland does not remain part of the UK?

[David Mundell]

All those eminent individuals know that Scotland continues to benefit from being part of the single UK domestic market, and they know that anyone who votes for independence on the basis that Scotland would keep the pound in a currency union is hanging their coat on a very shoogly peg.

[Graeme Morrice (Livingston) (Lab)]

5. What assessment he has made of the effects of the privatisation of Royal Mail on people in Scotland.

--- Later in debate ---

[Alison McGovern (Wirral South) (Lab)]

8. What assessment he has made of the potential effects on cultural tourism in the UK of a yes vote in the referendum on Scottish independence.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

Cultural tourism is thriving in Scotland and across the whole United Kingdom. We want Scotland to remain part of the UK to ensure that there are no unnecessary barriers to Scots visiting great cities such as Liverpool, and that people on the Wirral and across the United Kingdom can enjoy the great cultural experience that is Scotland.

[Alison McGovern]

When Liverpool became city of culture we took inspiration from our friends in Glasgow. Given the significant sporting and cultural connections between the cities of the north-west of England and the cities of Scotland, does the Minister think that our thriving visitor economy will be helped or hindered by an international border between north-west England and Scotland?

[David Mundell]

I can see no benefit to putting any barriers between Scotland and other parts of the United Kingdom, and I am sure our great city of Dundee in Scotland will learn from Liverpool’s experience as it seeks to become the city of culture.

[Several hon. Members]

rose—

Oral Answers to Questions

David Mundell Excerpts

Wednesday 11th September 2013 Commons Chamber

[Jim McGovern (Dundee West) (Lab)]

5. What discussions he has had with Ministers of the Scottish Government on the use of zero-hours contracts in Scotland.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

There is no single legal definition of zero-hours contracts and it is not possible to get reliable estimates. The issue was discussed at the Scottish employability forum last week by my right hon. Friend the Secretary of State for Scotland, the Scottish Cabinet Secretary for Finance, Employment and Sustainable Growth and a range of Scottish stakeholders.

[Gregg McClymont]

Many employers in Scotland insist that employees on zero-hours contracts be available for work even if work is not guaranteed. The Labour party has pledged to outlaw this practice and the Scottish Affairs Committee, under the chairmanship of my hon. Friend the Member for Glasgow South West (Mr Davidson), has initiated an inquiry. When will this Minister and this Government put themselves on the side of working people?

[David Mundell]

It is important that our work force remain flexible, but it is also important that they are treated fairly. Officials from the Department for Business, Innovation and Skills have undertaken work over the summer better to understand how the contract works in practice, with a view to taking action if widespread abuse is found.

[Jim McGovern]

In June, the Scottish Trades Union Congress and the Scottish Government published, following an analysis, a report saying that more than 250,000 people in Scotland are underemployed. Many of them are on zero-hours contracts and the overwhelming majority of them do not want to be. What are the Government doing to address this scandal? As an afterthought, perhaps the Minister could tell us how many people in his Department are on zero-hours contracts.

[David Mundell]

The hon. Gentleman will know that the Scotland Office does not directly employ any members of the Department, as I have already confirmed in response to a parliamentary question about zero-hours contracts. As I have just indicated to the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Gregg McClymont), we take this issue seriously. That is why BIS officials have been reviewing the operation of the contracts, and I very much welcome the Scottish Affairs Committee inquiry, which will perhaps provide greater illumination on the specific situation in Scotland.

[Mike Crockart (Edinburgh West) (LD)]

Zero-hours contracts are undoubtedly misused and abused by many employers but, equally, I have spoken to many employees for whom the contracts fit their lifestyle well. Does my right hon. Friend agree, therefore, that reform is necessary, not abolition, and that nothing shows this better than the number of Labour councils using these contracts?

[David Mundell]

I do not know whether my hon. Friend is aware of the statement by Labour’s shadow Business Secretary, the hon. Member for Streatham (Mr Umunna), who said:

“We’re not actually advocating an entire ban…sometimes people quite like to use them.”

I think that that is something with which we can all agree.

[Margaret Curran (Glasgow East) (Lab)]

If I may, I would like to express my condolences and pay tribute to those who lost their lives in the terrible Super Puma crash that happened while the House was in recess.

Until recently, Kyle McLean from Airdrie worked in a sports store. Like thousands of people across Scotland, his zero-hours contract meant that he could not take on other work and some weeks he earned less than £20. What does the Minister plan to do about the exploitative use of zero-hours contracts?

[David Mundell]

The hon. Lady is right to highlight the Super Puma crash and pay tribute to those who were involved in it.

The hon. Lady has a blind spot when it comes to understanding what her own Government did. She seems to suggest that zero-hours contracts suddenly materialised recently, but they were in existence under the Labour Government, who took no steps to review or do anything about them. I explained in my previous answer that BIS officials are reviewing the contracts, because while we want the employment market to be flexible we also want it to be fair.

[Margaret Curran]

Perhaps if the Minister looked at Labour’s policies he would get some ideas. The truth is that while the Government have sold off workers’ rights and made it easier to fire rather than hire, they have no plan to address the circumstances of people such as Kyle. Will the Minister follow Labour’s lead and outlaw the use of exploitative zero-hours contracts? Will he also confirm that the Secretary of State for Scotland is on a zero-hours contract so that he can do the Tories’ dirty work in Scotland?

[David Mundell]

There is one person in this Chamber who is on a zero-hours contract: the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown). I will take no lessons from the hon. Lady, because Labour did nothing about zero-hours contracts. I have set out clearly that BIS officials are reviewing the matter, because our policy is to have a flexible work force and fair employment policies.

[Ian Murray (Edinburgh South) (Lab)]

6. What assessment he has made of the potential effect on pensions of Scottish independence.

[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

The “Scotland analysis: Financial services and banking” paper considered private sector pensions. We will be examining state and public pensions in later papers in the series.

[Ian Murray]

The Institute of Chartered Accountants of Scotland highlighted that, on independence, cross-border defined benefit pension schemes would have to be fully funded, which would leave a deficit of some £230 billion. That was dismissed by the First Minister, who said that he would merely call for a derogation from the EU. Given that the Czech Republic has not only been refused that, but has been fined, what does the Minister think will happen to Scottish pension arrangements now and in the future?

[David Mundell]

Spending on state pensions and public sector pensions is driven by demographics and is set to rise. The UK Treasury and the Department for Work and Pensions absorb the risk of growth in demand and there would be more volatility in spending in an independent Scotland. Those are not my words, but the words of John Swinney. It is a pity that he said them in private, not in public.

[Mrs Eleanor Laing (Epping Forest) (Con)]

10. Does the Minister agree that the ability of the Scottish economy to support the pensions that the people of Scotland depend on will be greater and better if Scotland remains part of the United Kingdom?

[David Mundell]

I absolutely agree with my hon. Friend, not least because the Scottish Government and the Scottish National party have set out no coherent plans for a sustainable pensions system in an independent Scotland.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

The Minister must think that people in Scotland are buttoned up the back. He knows as well as I do that in terms of both revenue and GDP, Scotland spends a lower percentage of its money on pensions than other parts of the UK. Does he accept that the lower life expectancy in Scotland and other demographic trends make it important that decisions on pensions are made in Scotland by Scotland for Scotland?

[David Mundell]

I know that the people of Scotland are not buttoned up the back. They understand that the Scottish Government and the SNP say one thing in private and another thing in public. In private, John Swinney has made it absolutely clear that the affordability of pensions would be a serious issue in an independent Scotland. That is a fact. [Interruption.]

[Mr Speaker]

Order. Far too many noisy private conversations are taking place in the Chamber. I am sure that they will now end so that we can hear Mary Macleod.