Oral Answers to Questions Debate

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Department: Scotland Office

Oral Answers to Questions

Michael Moore Excerpts
Wednesday 18th April 2012

(12 years ago)

Commons Chamber
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Anne McGuire Portrait Mrs Anne McGuire (Stirling) (Lab)
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1. What recent representations he has received on the provisions of the Scotland Bill.

Michael Moore Portrait The Secretary of State for Scotland (Michael Moore)
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On 21 March, I tabled a written ministerial statement to confirm that agreement had been reached with the Scottish Government on the Scotland Bill. The Scottish Government have tabled a legislative consent memorandum recommending that the Scottish Parliament support the Bill, and Members of the Scottish Parliament will vote later today.

Anne McGuire Portrait Mrs McGuire
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The new Scotland Bill will pass significant powers to the Scottish Parliament, including those relating to tax. Among the representations that the Secretary of State has received, has there been a request from the First Minister to work jointly with him to highlight and promote those new powers, to show that we can maximise devolution while maintaining the integrity and strength of the partnership of the United Kingdom?

Michael Moore Portrait Michael Moore
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The right hon. Lady will not be surprised to hear that I have not received a representation on that particular subject. I agree with her that the Scotland Bill is a significant piece of legislation; it represents the most significant transfer of financial powers from London to Edinburgh since 1707. After the agreement on the legislative consent memorandum and, I hope, their lordships’ approval of the Bill’s Third Reading, we must quickly get on with its implementation in the right way, to show that devolution works, and works well for Scotland.

Angus Robertson Portrait Angus Robertson (Moray) (SNP)
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The Scottish Government and the majority of Members of the Scottish Parliament believe that the Scotland Bill could have been significantly improved, through the inclusion of job-creating powers among others, but that has not happened. Will the Secretary of State take this opportunity to confirm that the UK Government have agreed to safeguards ensuring that the Scottish Parliament will need to be satisfied that funding arrangements will not be detrimental?

Michael Moore Portrait Michael Moore
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I have a very different view of the future of Scotland from that of the right hon. Gentleman; I want to see Scotland continue to be a strong part of the United Kingdom. On his specific question, I am pleased that the Scottish Government have now accepted the Scotland Bill. We have worked carefully together to ensure that we have the right measures in place to implement it carefully for all the people of Scotland.

Angus Robertson Portrait Angus Robertson
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Will the Secretary of State acknowledge that, in the wake of the historic Scottish National party victory last year, every single political party is now miraculously in favour of more powers being devolved than are currently contained in the Scotland Bill? Which further powers does he want to see being exercised in Scotland?

Michael Moore Portrait Michael Moore
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Once again, we are seeing fantastic diversionary tactics from the right hon. Gentleman. He never talks about independence. Why not? Because his party cannot answer the fundamental questions about it. I am delighted that he wants to work with us, and I can tell him that devolution has always worked on the basis that we promote ideas, reach consensus and implement them. The debate on devolution will continue, but we must resolve the issue of independence. Why does he not want to get on with that debate?

John Robertson Portrait John Robertson (Glasgow North West) (Lab)
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2. How many meetings he had with the Chancellor of the Exchequer in the two weeks preceding his financial statement of 21 March 2012 on the effect of the Budget on Scotland.

Michael Moore Portrait The Secretary of State for Scotland (Michael Moore)
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I have regular meetings with senior Cabinet Ministers, including my right hon. Friend the Chancellor of the Exchequer, in which a wide range of issues are discussed. This includes the period in the run-up to Budget 2012.

John Robertson Portrait John Robertson
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I thank the Secretary of State for his answer, although I have my doubts about whether he did have any such meetings. Anyway, there are more families losing their tax credits and more pensioners set to be affected by the granny tax in Glasgow than there are millionaires who will be affected by the mansion tax in the whole of Great Britain. Is that what he calls the Liberal Democrats speaking up for Scotland?

Michael Moore Portrait Michael Moore
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The hon. Gentleman just cannot get the Labour party off the hook of the mess that it left the economy in at the end of the last Parliament. We are having to sort out the biggest deficit in peacetime history and get ourselves on the path to sustainable growth. We have had to take some tough decisions, but I am proud of the fact that, because of the measures in the Budget, more Scots will be taken out of income tax altogether and pensioners will receive the biggest cash increase in their pensions that they have ever had, in contrast to the insult of the Labour party’s 75p increase.

Iain Stewart Portrait Iain Stewart (Milton Keynes South) (Con)
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Did my right hon. Friend or the Chancellor receive any Budget representations from the Scottish Government about the financial consequences of Scotland separating from NATO?

Michael Moore Portrait Michael Moore
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Funnily enough, we did not.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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In the discussions that the Scottish Secretary had in the run-up to the Budget, did he make a case for re-profiling capital investment for funding shovel-ready projects, which would be the most effective thing we could do to build gross domestic product growth, or did he simply roll over, have his tummy tickled and accept the tax cut for millionaires?

Michael Moore Portrait Michael Moore
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The hon. Gentleman should reflect carefully on the case he is trying to make. Perhaps, in a rare moment of generosity, he would welcome the fact that since the spending review, we have announced £1 billion of further spending allocations to the Scottish Government. We are continuing to create the conditions for sustainable growth to support businesses, and in Dundee there are now enterprise zones that get 100% capital allowances. I had hoped that the hon. Gentleman would welcome that.

Alan Reid Portrait Mr Alan Reid (Argyll and Bute) (LD)
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In Argyll and Bute the high price of fuel is doing damage to businesses and people’s incomes, because of the long distances people by necessity have to travel. Will the Secretary of State please have a word with the Chancellor and encourage him to cancel, if the price of fuel remains high, the August fuel duty increase?

Michael Moore Portrait Michael Moore
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My hon. Friend is a consistent campaigner on this issue, and I am always happy to have discussions with him about it. I hope that he, like me, would recognise that as a result of the measures we have taken, we have provided a cut of 10p on fuel relative to what Labour was proposing, and provided support to remote rural communities in Scotland as well.

Ian Davidson Portrait Mr Ian Davidson (Glasgow South West) (Lab/Co-op)
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Will the Secretary of State tell us the last time he ate a hot bridie? Did he discuss with the Chancellor the impact of taxation on hot bridies, and does he recognise that his Front-Bench colleague looks as if he has eaten a lot of hot bridies recently?

Michael Moore Portrait Michael Moore
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I would have thought that the hon. Gentleman was above such personal attacks. My own preference is for fish and chips. He will know that there are plenty of places in Galashiels and elsewhere where a fine fish supper can be had. We have had to take tough decisions, but have made sure that everything is fair on that particular front.

Jo Swinson Portrait Jo Swinson (East Dunbartonshire) (LD)
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Does my right hon. Friend agree that in difficult economic times it is vital for the Government to help people on low incomes by cutting their taxes and taking the lowest paid out of tax, which is in stark contrast to the last Labour Government, who doubled the 10p tax rate, hitting the lowest paid the hardest?

Michael Moore Portrait Michael Moore
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My hon. Friend is entirely right. Our priority in difficult times must be to give help to people on low and middle incomes—the earners who need the most support. Because of that, more than 160,000 Scots will be out of income tax altogether, and millions more will pay less tax. That is the right way to approach this.

Margaret Curran Portrait Margaret Curran (Glasgow East) (Lab)
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May I begin with a quote?

“The simple equation is that we think the priority is to help those on the lowest incomes. Clearly that is going to have to be paid for and we think it is fair that those who have the broadest shoulders should be the ones to contribute to that.”

Can the Secretary of State tell us which Cabinet member said that about the recent Budget?

Michael Moore Portrait Michael Moore
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The important point is that in the very difficult economic circumstances that we inherited from the hon. Lady’s Government, we must fix the deficit, get the economy on the right track and in doing so make decisions that help the lowest paid and middle-income earners. That is what we are doing by taking people out of tax altogether and by ensuring that we reduce the tax burden on others.

Margaret Curran Portrait Margaret Curran
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I am surprised that the Secretary of State did not even recognise a quote from himself. He should know that the Resolution Foundation has confirmed that cuts to tax credits will dwarf any gains from an increase in personal tax allowances—so he needs to stop using that argument. Will he tell us why he has changed his position since he last spoke to the Evening Standard, when more than 400,000 Scottish pensioners are going to be hit by the granny tax and more than 84,000 families in Scotland will have lost all their tax credits, while at the same time his Budget has given 16,000 of the richest Scots a massive tax cut? Will the Secretary of State finally admit that this Budget has hit Scotland hard and has done more for millionaires than for hard-working families? When will he stop being a Tory front man and stand up for working people in Scotland?

Michael Moore Portrait Michael Moore
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The last Labour Secretary of State, who has now joined the hon. Lady on the Front Bench, said that Labour had to be credible on the economy and on the financial regime, but it is not being credible in the proposals it is making. I stand by my comments. My intention and that of my colleagues with this Budget is to ensure that we provide support to the lowest and middle-income earners and that those on the highest earnings pay their way. Through the abolition of tax reliefs, we will ensure that they do.

David Mowat Portrait David Mowat (Warrington South) (Con)
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3. What discussions he has had with the Chancellor of the Exchequer on the funding formula for Scotland.

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Amber Rudd Portrait Amber Rudd (Hastings and Rye) (Con)
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8. What assessment his Department has made of the responses to its consultation on the proposed referendum on independence for Scotland.

Michael Moore Portrait The Secretary of State for Scotland (Michael Moore)
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The Government published their response on 4 April. The responses to the consultation gave strong endorsement to a referendum involving a single, clear question on independence, overseen by the Electoral Commission, using the same franchise as that used to elect the Members of the Scottish Parliament, and held sooner rather than later.

Alun Cairns Portrait Alun Cairns
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Does my right hon. Friend agree with the consensus established by the responses to the consultation, which is that people do not want to wait 1,000 days to exercise their votes in a referendum?

Michael Moore Portrait Michael Moore
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This is a fundamentally important decision, the most important that we as Scots will make in our lifetimes, and the longer it is delayed, the greater the uncertainty will be. The sooner we can get on with resolving the process and the question, the better.

Amber Rudd Portrait Amber Rudd
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Do the responses of the consultation reflect my view that there should be a simple “yes or no” question in any referendum if we are to secure a decisive outcome for Scotland?

Michael Moore Portrait Michael Moore
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My hon. Friend is entirely right. We must not muddle the issue of independence with a separate debate on the future of devolution. Today we mark another important milestone in the development of the Scotland Bill. What we want after its enactment—assuming that we receive their lordships’ support—is a clear decision on the future of our country, and for it to stay in the United Kingdom.

Pete Wishart Portrait Pete Wishart (Perth and North Perthshire) (SNP)
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Does the Secretary of State wish to take this opportunity to thank the Labour party for providing his meagre consultation with more than a quarter of the responses? I suppose that that adds a new meaning to the term “Labour block vote”. Can he tell us how many other responses he received from the Labour website with a slightly amended text, and why the Labour party is doing all the groundwork for his Tory-led Government’s consultation?

Michael Moore Portrait Michael Moore
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It should hardly be a surprise to the hon. Gentleman that political parties want to take part in consultations. This is an intensely political process. Even this morning, there was a pre-prepared script on the Scottish National party website inviting people to respond to the SNP’s consultation, so SNP Members should be a wee bit careful about the argument they are trying to make.

Pamela Nash Portrait Pamela Nash (Airdrie and Shotts) (Lab)
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Some 70% of respondents to the UK consultation felt that 2014 was too long to wait to decide Scotland’s constitutional future. Businesses and financial institutions in my constituency have made it clear that this state of limbo is damaging the economy in Scotland. Has the Secretary of State received similar representations from businesses elsewhere in Scotland?

Michael Moore Portrait Michael Moore
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The hon. Lady is entirely right to draw this issue to the attention of the House and to highlight that across Scotland and the UK, businesses, like individuals, want answers. We need to resolve this hugely important issue sooner rather than later, so we do not lose out on investment in jobs and we understand our future within the UK.

Michael Connarty Portrait Michael Connarty (Linlithgow and East Falkirk) (Lab)
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5. How many people in Scotland will be affected by the Chancellor of the Exchequer’s proposal to withdraw the additional personal allowance for people over 65 years of age.

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Julian Smith Portrait Julian Smith (Skipton and Ripon) (Con)
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6. What assessment his Department has made of the implications for the currency used in Scotland of a vote in favour of independence for Scotland.

Michael Moore Portrait The Secretary of State for Scotland (Michael Moore)
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We are confident that people in Scotland will continue to support the United Kingdom in any referendum. It is the Scottish Government who are proposing independence and they must answer for the implications of their proposals, including on currency matters.

Julian Smith Portrait Julian Smith
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Is it not the case that the weight of legal opinion suggests that an independent Scotland would become an European Union accession state and would therefore be obliged to join the euro?

Michael Moore Portrait Michael Moore
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The Scottish National party is changing its position on what currency it wishes to adopt and how it would go about this. There is no doubt that the SNP needs to answer some hard questions on this matter and resolve, for us all, what an independent Scotland would look like. I think that Scotland is better off in the UK.

Anas Sarwar Portrait Anas Sarwar (Glasgow Central) (Lab)
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The Secretary of State will be aware that a separate Scotland would have to create its own currency, join a weaker euro or make its biggest business partner its biggest business competitor, with the Bank of England setting its interest rates, its spending limits and its borrowing limits. Does this not show the incoherence of the SNP’s economic policies?

Michael Moore Portrait Michael Moore
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The hon. Gentleman is entirely right to point out that even in its best moments, when it tries to offer us some detail, the SNP does not resolve what a monetary union with the rest of the UK might look like, how it would deal with the fiscal rules and the regulatory environment or whether the Bank of England would be the lender of last resort. I think that Scotland deserves some answers on those points.

Lord Bruce of Bennachie Portrait Malcolm Bruce (Gordon) (LD)
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Does the Secretary of State acknowledge that if an independent Scotland were to use the pound sterling, that would require conditions that cannot be known now? Indeed, that is one of a growing number of issues that are unknown and unknowable, and it shows how uncertain Scotland’s future would be if it left the United Kingdom.

Michael Moore Portrait Michael Moore
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My right hon. Friend is entirely right that when given the opportunity, the SNP ducks giving the answers to all these hard questions, because it does not have those answers.

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Graham Allen Portrait Mr Graham Allen (Nottingham North) (Lab)
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11. What powers would be devolved to Scotland under devo-max.

Michael Moore Portrait The Secretary of State for Scotland (Michael Moore)
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Devo-max is a term used by the Scottish Government with no clear definition. This Government are focused on delivering the Scotland Bill, which will represent the largest transfer of fiscal powers to Scotland since the Act of Union in 1707.

Graham Allen Portrait Mr Allen
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Does the Secretary of State agree that devo-max is a wonderful idea for Scotland and will he therefore discuss with some of his Cabinet colleagues extending that wonderful idea to the regions and localities of England?

Michael Moore Portrait Michael Moore
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It is always dangerous for a Scot to enter into the constitutional debate in England but there is a lively debate to be had. The important thing today is that we acknowledge the important next steps we are taking in Scotland through the real proposals in the Scotland Bill which are due to get the consent of the Scottish Parliament and, I hope, their lordships next week. That will put us on track for the biggest development in devolution since 1998.

The Prime Minister was asked—