Oral Answers to Questions

Michael Moore Excerpts

Wednesday 9th March 2011 Commons Chamber

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

2. What recent discussions he has had with the Chancellor of the Exchequer on the implementation of a fuel duty derogation for rural areas.

[The Secretary of State for Scotland (Michael Moore)]

I have regular discussions with the Chancellor of the Exchequer on a wide range of issues. The Government have already announced that they intend to introduce a pilot scheme that will deliver a discount on petrol and diesel in rural areas, including the inner and outer Hebrides, the Northern Isles, the islands in the Clyde, and the Isles of Scilly.

[Mr MacNeil]

Through the rural fuel derogation we must ensure that there is transparency in fuel distribution in the highlands and islands. Nine months ago, there was 8p difference between Stornoway and Inverness; now there is 18p difference in the price of a litre of fuel. Will the Secretary of State make sure that the Office of Fair Trading looks at issues surrounding fuel distribution, so that any savings from a rural fuel derogation are passed on to families, businesses and the community in the islands?

[Michael Moore]

I welcome the hon. Gentleman’s implicit recognition of the importance of the derogation, which we are seeking and on which my right hon. Friends in the Treasury will make formal submissions in the near future. As for distribution issues, the hon. Gentleman is right to highlight the complexities of the price of fuel across the country. He knows that better than most people, and I am happy to meet him to discuss the issue further.

[Mr Alan Reid (Argyll and Bute) (LD)]

I greatly welcome the introduction of the fuel duty discount pilot scheme on the islands, and I also welcome its extension to the Isle of Bute. While we wait for permission from the EU, however, urgent action is needed to stop the price of fuel going up even further. Will the Secretary of State speak to the Chancellor and tell him that he must cancel the 4p fuel tax rise that Labour planned for this year’s Budget?

[Michael Moore]

My hon. Friend will be the first to acknowledge that the fuel duty increases over the past year reflect the previous Government’s plans to increase duty by 1p per litre over the retail prices index this year and for years to come, and, as we have already discussed, the derogation is now being sought. The Chancellor and the Chief Secretary to the Treasury will have heard my hon. Friend’s strong representations on behalf of his communities, and I recognise how serious an issue petrol and diesel prices are throughout the country.

[John Robertson (Glasgow North West) (Lab)]

3. How many small businesses in Scotland (a) applied for and (b) received research and development tax credits in the latest period for which figures are available?

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[Jim McGovern (Dundee West) (Lab)]

8. What assessment he has made of recent trends in levels of employment in Scotland.

[The Secretary of State for Scotland (Michael Moore)]

Although the final quarter of 2010 saw falling unemployment and rising employment in Scotland, helping people into work remains a key priority for this Government.

[Ian Murray]

Gross domestic product in the economy has contracted by 0.6%, confidence is being shattered by the increase in VAT, unemployment is rising, with the full effect of public sector job losses to come, and employers all over my constituency are really concerned that the banks are getting away scot-free while they are being hit the hardest. Does the Secretary of State have any plans at all for growth in order to get jobs back into the Scottish economy?

[Michael Moore]

In a compendium of issues, the hon. Gentleman forgets to mention the role that his own Government played in the management of the economy up until last May. Our overriding priority is to get a path to sustainable growth, and that means stabilising the economy, which is what the deficit reduction plan is about, and ensuring that we support businesses by reducing tax, maintaining interest rates lower than they would otherwise have been and helping businesses to access finance. We have a real programme of action, unlike the previous Government.

[Jim McGovern]

Rising unemployment is a great concern in my constituency of Dundee West. In fairness to the Secretary of State, he did visit Dundee to see for himself the importance of the computer games industry to the city, but does he continue to support the Government’s stance of not implementing a tax break, which both the Lib Dems and the Tories claimed to support prior to the general election? If so, what plans does he have for job creation in my city of Dundee?

[Michael Moore]

As I have said previously to the hon. Gentleman, our visit together to Abertay university was very worth while, and he makes a strong case for the computer games industry. Taxation is clearly a matter for the Chancellor, and the Budget is coming along soon, but, as I said in answer to his hon. Friend the Member for Edinburgh South (Ian Murray) a moment ago, the overriding thing, which will help the computer games industry and everybody else, is to get us back on a sustainable path to growth. That is our overwhelming priority.

[John Thurso (Caithness, Sutherland and Easter Ross) (LD)]

My right hon. Friend will know that marine renewable energy offers tremendous employment prospects in Scotland. Is he aware of the proposal by Department for Energy and Climate Change Ministers to create renewable energy parks; and will he use all his powers to ensure that the first such park is in Caithness, where all the ingredients already exist?

[Michael Moore]

Caithness could not hope for a finer advocate of its cause, and my hon. Friend has spoken with me on many occasions. The importance of renewables to the far north of Scotland—indeed, the whole of Scotland—is second to none, particularly in the context of the rundown of Dounreay, something that I know is close to his heart and on which he works very carefully.

[Ann McKechin (Glasgow North) (Lab)]

In December I highlighted to the House that in Campbelltown 13 claimants were chasing every available job. Unfortunately the situation today is far worse: the Scottish Trades Union Congress reports that currently 27 jobseeker’s allowance claimants are chasing every advertised vacancy in north Ayrshire. The Secretary of State says that he is concerned about high unemployment in Scotland, so can he tell the House when he last visited north Ayrshire and spoke directly to those people who are struggling to find work?

[Michael Moore]

I have carried out a range of visits around Scotland and will continue to do so; I am very happy to take up the hon. Lady’s suggestion. However, may I gently remind her that unemployment was rising under her Government when she was in the Scotland Office? She should not look so pleased about the situation as it is now.

[Ann McKechin]

Yet again, the Secretary of State fails to tell us what his alternative is. Thousands of our young people have been worst hit. This Government claim that their Work programme will be much better, but officials are saying that there will be 250,000 fewer places next year than the number who entered Government schemes this year. Can he therefore confirm what percentage of 18 to 24-year-olds currently unemployed in Scotland will be allowed to participate in the new Work programme, and whether it will be less than in the current year?

[Michael Moore]

The hon. Lady is right to highlight the issue of youth unemployment, which is a key priority for the Government. Again, it is something that rose significantly throughout her time in office, and it needs to be tackled very seriously. We have already introduced elements of the Get Britain Working programme, the work clubs and the Working Together programme, and the Work programme will come along in the summer. We look forward to debating that further with her.

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

5. When he expects next to discuss with ministerial colleagues trends in the level of youth unemployment in Scotland.

[The Secretary of State for Scotland (Michael Moore)]

The Government are determined to deal with the long-term legacy of youth unemployment, and this is a key priority in my discussions with ministerial colleagues. Our Get Britain Working measures and the new Work programme will provide the best possible support for young people struggling to find employment.

[Mr Donohoe]

I thank the Secretary of State for that answer. He will be aware, however, that levels of unemployment among the 18-to-24 age group have soared over the past few months. As a result, in north Ayrshire in particular, we have the highest levels of youth unemployment. What is he going to do about that?

[Michael Moore]

First, I commend the hon. Gentleman for his consistent campaigning on this issue, which is a very significant one in his part of the world. However, I think that he would also acknowledge the point that I made to the hon. Member for Glasgow North (Ann McKechin) a moment ago—that youth unemployment has been a serious problem for a long period. I discussed the issue with the Work and Pensions Secretary only last night. As I have said to the hon. Gentleman previously, I look forward to convening a meeting in his constituency where we will discuss all these issues with the relevant individuals and organisations from across Scotland. I look forward to his being part of that event.

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

I think the whole House shares the concern that the Secretary of State seems to indicate that he has, but can he share with the House the number of young unemployed people to whom he has spoken this year?

[Michael Moore]

I have spoken to many young unemployed people across Scotland, not just this year but over the whole course of my time as a Member of Parliament, and not just in my own constituency but elsewhere too. They all want to see a sustainable route out of the difficulties that the country is in. This is not only about the Work programme measures that I have already mentioned but about getting the country back on its feet and tackling the deficit, making sure that we have a sustainable way to growth by focusing on bank lending, keeping interest rates low, and providing support by cutting taxes, be they corporation tax or national insurance. All those measures will help.

[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

6. What assessment he has made of the likely effect on families in Scotland of the changes to benefits proposed by the Secretary of State for Work and Pensions.

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[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

9. What recent discussions he has had with the Secretary of State for Business, Innovation and Skills on the operation of the green investment bank in Scotland.

[The Secretary of State for Scotland (Michael Moore)]

I have regular discussions with the Secretary of State for Business, Innovation and Skills on a wide range of issues, including the operation of the green investment bank. The green investment bank will support economic growth in all parts of the country and help us to meet our environmental objectives.

[Chi Onwurah]

Like the north-east, Scotland has great wind resources, and we are looking forward to getting a return on all that wind. Does the Secretary of State agree that the delays to and downgrading of the green investment bank are preventing us from making the best of that asset?

[Michael Moore]

First, as somebody whose constituency is not that far from Newcastle, I agree with the hon. Lady that we should appreciate all its wonderful characteristics, including its weather patterns. I agree that around the whole coast of the UK, we have much that we can exploit for renewable energy. On the specifics of the announcement on the green investment bank, we are taking the matter forward aggressively and she will hear further information announced very soon.

[Mike Crockart (Edinburgh West) (LD)]

Does the Secretary of State agree that the green investment bank could open up tremendous potential for rebalancing the economy and creating a great many new jobs? For that to happen, it needs financial experience, research and development experience in the academic institutions and renewable energy experience, all of which are available in abundance in Scotland, and particularly in Edinburgh. It would therefore be a perfect location for the institution.

[Michael Moore]

I commend my hon. Friend for his efforts to locate the green investment bank in Edinburgh. I welcomed the opportunity to meet him and the hon. Member for Edinburgh North and Leith (Mark Lazarowicz) recently to discuss that very issue. I and other Ministers look forward to hearing further details on the proposal in the near future.

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

When I asked the Secretary of State about the green investment bank in October, he said that he would make the best possible case for its location in Scotland, yet his Department has been forced to concede under freedom of information that he has had no correspondence with Department of Energy and Climate Change Ministers on the issue and that there are no notes of meetings with them about it. How is he actually pressing the case rather than just dealing in rhetoric?

[Michael Moore]

I am aware of the hon. Gentleman’s commitment to freedom of information, and I am delighted to say that, as he knows from his time in the Scotland Office, those are not the only ways in which Ministers meet. I have had many conversations with the Secretaries of State for Energy and Climate Change and for Business, Innovation and Skills, the Deputy Prime Minister and others on the issue. Like the hon. Gentleman, I hope that my colleagues will support the case for the bank coming to Scotland.

[Several hon. Members]

rose—

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[John Stevenson (Carlisle) (Con)]

13. What recent discussions he has had with the First Minister on support for private sector employment in Scotland.

[The Secretary of State for Scotland (Michael Moore)]

In my recent discussions with the First Minister, we spoke about a range of issues, including economic policies. Returning the United Kingdom to sustainable economic growth is the Government’s overriding priority. We are doing everything we can to create the conditions that enable UK businesses to be successful and create more jobs.

[John Stevenson]

If the Scottish economy is to be rebalanced, the future clearly lies with employment in the private sector. Can the Minister therefore give some indication of how much Scottish businesses will save from the Government’s changes to the employers’ national insurance threshold and rate, and of how many businesses will benefit from the payment holiday for new businesses?

[Michael Moore]

My hon. Friend is right to point to the importance of reducing the tax burden, and we are determined to do that. We estimate that the national insurance reductions will bring a benefit of £280 million to businesses in Scotland, or the equivalent of helping 59,000 jobs.

The Prime Minister was asked—