Scotland and the Union

Graeme Morrice Excerpts

Thursday 29th November 2012 Commons Chamber

[Graeme Morrice (Livingston) (Lab)]

I am pleased to be a co-sponsor of the debate, alongside the hon. Member for Epping Forest (Mrs Laing), whom I am delighted to follow. In a way, as a Scot who represents an English constituency, she epitomises what the motion is about: the rich blend of the best of all four corners of our land that has made the United Kingdom of Great Britain and Northern Ireland the success story it so evidently is. There is no doubt that the United Kingdom is greater than the sum of its constituent parts. Although I might disagree with her politics, I have no doubt that we, as Scots, share a love of our country and want to see what is right and proper for its people and for future generations. It is also fitting that we are holding this debate on the eve of St Andrew’s day, the national occasion when we Scots come together to celebrate our patron saint and demonstrate our pride in all things Scottish.

As the motion states, Scotland has made a significant contribution to the United Kingdom over the 305 years of the Union, and it continues to do so. Indeed, our shared history goes back even further to the union of the Crowns in 1603, when a Scot, James VI, sat on the English throne as James I. He was the first of six monarchs in the Stuart line who ruled both England and Scotland, as well as Ireland, until the Glorious Revolution, and then again to 1714. In fact, it was Queen Anne, the last of the Stuart line, who became the first monarch of the political union of Britain.

With the Acts of Union in 1707, Scotland quickly took advantage of the abolition of trade tariffs with England and trade blossomed. The 18th century also saw the Scottish enlightenment, a period characterised by momentous intellectual and scientific accomplishments, so much so that Voltaire said:

“We look to Scotland for all our ideas of civilisation.”

With the advent of the Union, Scots took up positions of power in politics, the civil service, the Army and Navy, trade, economics, colonial enterprises and other areas across the emerging British empire. The historian Neil Davidson has observed:

“Far from being ‘peripheral’ to the British economy, Scotland...lay at its core.”

Indeed, throughout the industrial revolution Scotland more than punched above its weight and became known across the world for its excellence in engineering, as typified by Clyde-built ships.

Through advancements in medicine and its inventive spirit, distinct banking system and contribution to art, literature and culture, Scotland has always added greatly beyond its shores. Even in times of adversity, the people of Scotland have not been wanting. During the first world war, despite Scotland having a population of only 4.8 million, over half a million Scots went to the front. My purpose in touching, albeit briefly, on 300 years of Scottish history is to point out that many of our achievements and benefits were because of our place within the UK, not in spite of it.

Scotland is linked intrinsically to the rest of the United Kingdom socially, politically and economically. The single market within the UK affords significant economic, trade and employment opportunities to people on both sides of the border. Our membership of the European Union, through the United Kingdom, provides a vast marketplace for Scottish exporters. Together we have a place at the top table of the European Council of Ministers and we are one of the G8 forum of the world’s largest economies and a permanent member of the United Nations Security Council, all of which allows us to wield unprecedented influence on the European and global stages. As a member of NATO, we have collectively benefited since the war from international security and defence co-operation on a grand scale.

When it comes to the economy, Scotland has a very important relationship with the rest of the UK. Scotland benefits from access to a market comprising tens of millions of people within a single jurisdiction. Scots are employed by firms based in the rest of the UK, and people in the rest of the UK benefit from employment opportunities with Scottish-based companies. Indeed, in 2010 Scotland’s exports to the rest of the UK were worth double its exports to the rest of the world— £44 billion and £22 billion respectively—and manufacturing exports were estimated at £13 billion.

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

I welcome my hon. Friend’s point about manufacturing industry. Does he agree that the sizeable increase in manufacturing, which is taking place as we speak, has arisen mainly as a result of the Scottish contribution?

[Graeme Morrice]

I certainly concur with my right hon. Friend on that point.

In addition to the shared opportunities, the pooling of resources across the UK allows risk as well as reward to be spread, as seen most notably in the bail-out of the Scottish-based banks during the financial crisis, when the UK, led by a Scot, injected £37 billion of capital into the banks—an amount in excess of the total budget of the Scottish Government.

The legal framework for business is more or less uniform across the entirety of the UK. That means that there is a similar taxation, regulatory and employment law regime throughout the UK. On the benefit of a single market both to Scotland and to the rest of the UK, the director general of the CBI has stated that the

“raft of common laws and regulations...make operating across the different constituent parts of the union more efficient.”

The National Institute of Economic and Social Research has noted that the Scottish economy is

“more integrated with the rest of the UK than Europe or the rest of the world.”

With regard to jobs, people on both sides of the border benefit from employment opportunities engendered by Scotland being part of the Union. The UK Government are a major employer in Scotland, with more than 30,000 civil servants bringing almost £700 million annually to Scotland in salaries alone. Thousands of jobs also rely on the defence sector in Scotland, with 40,000 people employed in more than 800 companies. Companies from the rest of the UK contribute about one fifth of private sector economic activity in Scotland.

On energy, North sea oil is an important contributor to the UK economy, accounting for thousands of jobs in the north-east of Scotland, and a valuable source of revenue for the UK Treasury. However, the supply is declining and unstable. Recent reports show that North sea oil production fell by 30% in 2011 compared with the previous year. For the past 18 years, the level of public spending in Scotland has dwarfed the total revenue from North sea oil; in 2009-10, the difference was £18 billion. In fact, welfare spending in Scotland in 2010 was three times higher than North sea oil revenue. Of course, oil and gas remain an important part of the Scottish and UK economies and will do so in the years to come, but to bet Scotland’s economic future on this sector, as the Scottish National party does, is naive at best and foolhardy at worst. Moreover, Scotland being outwith the UK would create uncertainty for the future of Scotland’s renewables industry, and potentially lead to higher fuel bills and a £2 billion burden on Scottish businesses, due to Scotland receiving a disproportionate share of the available subsidy compared with the rest of the UK. These figures highlight the many benefits of Scotland being part of the UK economy in that we are able to work together in partnership to share the risks and rewards involved in harnessing our energy resources.

Scotland being part of the UK also allows us to pool our resources and distribute them on the basis of social need across the welfare state. If it were outwith the UK, that would place a major question mark over its ability to continue to fund benefits at current levels and to meet state and public sector pension commitments. It is simply an illusion for the SNP to promise Scandinavian levels of welfare spending while supporting Irish levels of taxation.

There are many other positives on which I could elaborate, such as the flexibility across borders which has over the years benefited people on both sides and led to high levels of migration in both directions; indeed, I personally have been a beneficiary of that. Our common currency is one of the oldest monetary unions in the world. A practical and more recent example is the benefit derived by Scottish athletes from UK sports funding, facilities and coaching in the run-up to the Olympics and Paralympics. It is interesting to note that all but three of the Scots who won medals at the Olympics had team-mates from the rest of the UK.

[Lindsay Roy (Glenrothes) (Lab)]

Is my hon. Friend aware that three Scots Olympians have been nominated for the BBC sports personality of the year award?

[Graeme Morrice]

Indeed I am. All three—Sir Chris Hoy, Andy Murray and Katherine Grainger—train and reside in England and clearly benefit from Scotland being part of the United Kingdom. Of course, we pay tribute to those athletes as part of Team GB and wish them every success in the BBC sports personality of the year award. [Interruption.] Indeed, they cannot all win, but we would like to see them do so.

There is much more I could say about the benefits to Scotland and the rest of the UK of Scotland remaining a strong partner within the Union. I am sure that other Members will fill any gaps in my speech and expand on some of the points I have made. I conclude by mentioning one of Scotland’s and the UK’s most notable achievements in its 300-year history—devolution. Devolution has been a great success and has provided new vigour to the United Kingdom. Whether in Scotland, Wales or Northern Ireland, devolution is working but also developing, as it will continue to do in future. As we are all well aware, support for devolution and attachment to the UK in Scotland is stronger than support for independence. Scots share the same social attitudes and values as people in the rest of the UK. They are just as alert to the risks and uncertainties of separation and have a real comprehension of the benefits and advantages of remaining part of the UK. Therefore, all things considered, there is no doubt that we are all better off together.