Oral Answers to Questions
David Mundell Excerpts(10 years, 7 months ago)
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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.
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?
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(11 years, 2 months ago)
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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.
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(11 years, 3 months ago)
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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.
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
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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.
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.
Oral Answers to Questions
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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.
Parliamentary Voting System and Constituencies Bill
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Mr Davidson
We were never promising it on the same day.
Let me deal with the question of contamination. Many previous speakers have indicated the way in which they believe the debate will be contaminated in Scotland because of the spill-over. As time goes on, the main focus of debate will not be on the minutiae of the AV referendum; it will be on the impact when the AV referendum is lost by the Liberals. Will the coalition split? What price will they then demand as a reward, because what they got as a reward before will have come to naught? That will be a matter of immense focus, certainly in Scotland, and I am sure elsewhere. The collapse of the coalition only a year into a Government will be of considerable significance, not only in Scotland, but in Britain and across the world. That will be the main focus of attention and will overwhelm the coverage of the Scottish election.
Some of my colleagues, particularly the Alliance Member, the hon. Member for Belfast East (Naomi Long), spoke about the difficulties of joint campaigning on the referendum. While MPs never usually take the fact that something has been said already as an excuse not to repeat it, on this occasion she has said it perfectly adequately so I will refrain from doing so. But there will also be—a point that she did not touch on particularly—confusion about costs. There will be two elections in Scotland, one for the first-past-the-post seats and one for the list seats, and then there will be referendum. People involved in both those elections will be campaigning on behalf of their parties in both elections and on the yes and no side, and there will be cross-cutting cleavages. The process of allocating expenditure will be almost impossible, I should have thought.
Many of us in Scotland are aware—I am glad to see in his place the right hon. Member for Ettrick, Lauderdale and Tweeddale—is it?
Mr Davidson
Ettrick, Tweeddale and Lauderdale? No? Well, whatever seat he has, it is quite a big and complicated seat to describe, which is perhaps an excuse for why he was unable to fill in his expenses properly. One can imagine how difficult it will be in that constituency when not only are they filling in the expenses for the first-past-the-post seat and the list seat, but the referendum as well. I wish him well in resolving his difficulties, but one can imagine the problems there being replicated all over the country, with the scope for legal actions and threats. They are enormous. On those grounds alone, if there were not so many other grounds to do so, we should be supporting the amendment tabled by the hon. Member for Harwich and North Essex (Mr Jenkin) and opposing the idea of having these elections on the same day.