Public Finances: Scotland

Mike Weir Excerpts

Wednesday 3rd February 2016 Commons Chamber

[Greg Hands]

I thank the right hon. Gentleman for that intervention, which leads me nicely on to the fact that the UK Government are absolutely committed to getting a deal. I announced earlier today, before the Scottish Affairs Committee, that I will be going to Edinburgh on Monday to continue the negotiations. I am hopeful that we will get—

[Mike Weir (Angus) (SNP)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Question put accordingly, That the amendment be made.

Scotland Bill

Mike Weir Excerpts

Monday 15th June 2015 Commons Chamber

[Mr Carmichael]

I have long held that view. I cannot remember a time in my conscious political being that I have held a view other than that. It is never going to be easy to get to that point, of course, and it will require a fundamental change in the way we do things. The reference to judicial archaeology is interesting, because it would render some of the things that were done in this place reviewable in the courts. As long as there is a proper separation of powers, I am quite happy with that.

[Mike Weir (Angus) (SNP)]

I hear what the right hon. Gentleman says about amendment 58, and he is correct that Parliament cannot bind its successors, but if we put it into the Bill that there has to be a referendum of the Scottish people before there can be a change, that is a very powerful moral argument against this place, and the strongest we can make under the current constitutional settlement.

[Mr Carmichael]

Indeed, and it is for that reason that I said that I saw some merit in the proposal. The hon. Gentleman would have to accept, though, that the point I have already made—that even that could be repealed by a simple vote in this Chamber and the other place—will always be a problem for any Government seeking to do that by way of primary legislation.

--- Later in debate ---

[Stewart McDonald]

rose—

[Mike Weir]

rose—

[Mr Allen]

I will give way to the hon. Member for Angus (Mike Weir), because the hon. Member for Glasgow South (Stewart McDonald) is now in my bad books.

[Mike Weir]

I have listened carefully to what the hon. Gentleman has been saying, particularly about local government. Does he accept that it is not up to this place to determine the form of local government in Scotland, Wales and Northern Ireland? Decisions about local government are already devolved to the Scottish Parliament and the Assemblies of Wales and Northern Ireland. England may determine its own local government through this place, but questions about local government in Scotland, Wales and Northern Ireland are not to be decided here.

[Mr Allen]

We need to think carefully about whether the rights that we would like to enjoy in our constitution should be placed at a federal level or at a national level. Let us fantasise about what would happen if, for example, the European convention on human rights was abolished and the right to torture people was established in part of the United Kingdom—[Interruption.] I know it is a silly example, but let me continue for a moment. I cannot imagine that we in the federal Parliament would not object to that ridiculous state of affairs. In some written constitutions, transcending values—concerning, for example, human rights, structures and democracy—may be in the federal constitution rather than in national constitutions. We need to debate that, and I hope that the hon. Member for Glasgow South will join in that debate rather than simply shaking his head, as he is doing.

Scotland Bill

Mike Weir Excerpts

Monday 8th June 2015 Commons Chamber

[David Mundell]

We have had a general election in which the issues were debated extensively across the United Kingdom. What the Government are committed to do in relation to Scotland is to deliver the Scotland Bill.

You have not selected the amendment, Mr Speaker, but, as the hon. Member for Perth and North Perthshire (Pete Wishart) stated, it mentioned a veto, and I want to clarify the issue of so-called vetoes. The Smith agreement is clear that matters such as the mechanism for paying universal credit across the UK and the Jobcentre Plus network will remain reserved. That was an important argument during the referendum and was endorsed by the majority of Scots. In order to deliver, we need a system that allows the Scottish Government to take responsibility for benefits, including by being able to top them up, but allows the reserved universal credit payments mechanism to carry on working effectively. That is what the Bill does.

It is wrong to call that a veto—as I said earlier, a veto means that someone can prevent something from happening if they do not like it. The Bill does not give the UK Government that power. In fact, it explicitly says that consent for a change cannot be unreasonably withheld.

[Mike Weir (Angus) (SNP)]

But that does mean that it can in fact be withheld, because a Minister here in Westminster will have to give agreement to when a change will take effect. That Minister is not obliged to give any agreement, so consent could be withheld and it is effectively a veto.

[David Mundell]

I do not agree with the hon. Gentleman’s analysis at all. The provision is not even about agreement to a decision. It is a timing arrangement as part of the systems that need to operate. It will work the other way, too; the UK Government will need to consult the Scottish Government when they want to make changes to devolved universal credit flexibilities that will have an impact on Scotland. Other clauses, such as those on transport and elections, also require the UK Government to consult Scottish Ministers before acting.

Draft Scotland Clauses

Mike Weir Excerpts

Thursday 22nd January 2015 Commons Chamber

[David Mundell]

I absolutely agree, and I was appalled by the comments of Joan McAlpine MSP in relation to denigrating local government in Scotland. Local government in Scotland currently does an excellent job under very difficult circumstances. We need devolution within Scotland, not the ever-centralising nature of the current Government.

[Mr Mike Weir (Angus) (SNP)]

The Minister claims a substantial transfer of powers, but is it the case that many new powers, for example those regarding benefits or fuel poverty, remain subject to a veto by UK Ministers?

[David Mundell]

That is the hon. Gentleman’s almost inevitable interpretation. The position on consultation and working together is that the Department for Work and Pensions will continue to administer benefits and therefore clearly needs to work with the Scottish Government on that. The Scottish Government will have the capacity to take forward arrangements as they choose. [Interruption.] Perhaps we are already getting a flavour of what we will see continuing in Scottish politics—when the SNP does not deliver the promises on welfare that it makes to the people of Scotland, it will be somebody else’s fault.

North Sea Oil and Gas (Employment)

Mike Weir Excerpts

Tuesday 20th January 2015 Westminster Hall

[Mr Mike Weir (Angus) (SNP)]

I congratulate the hon. Member for Aberdeen North (Mr Doran) on securing this timely debate.

Despite current difficulties, the North sea oil and gas industry remains vital for Scotland—north-east Scotland, in particular. The industry makes a huge contribution not only to the Scottish economy, but to the economy of the whole UK: since its inception, it has contributed more than £300 billion in taxation to the Treasury. We have built a world-class industrial cluster in the North sea, and we now export the skills and services required to support it around the world.

In my constituency, for example, many people work in the oil and gas industry, increasingly not only in the North sea, but in various parts of central Asia, Africa and the far east. Many companies in Angus are also part of the supply chain for the North sea industry. The low level of oil and gas prices and the difficulties that that is causing are obviously of great concern. Clearly, we have experienced such falls in prices before; the previous time it happened was as recently as 2009, when the price plunged from $144 to $40 a barrel. Nevertheless, the current low price is of concern, and action must be taken to ensure that the industry is assisted through such a turbulent period.

Despite the rather dramatic headlines in some newspapers and other media reports, the North sea oil and gas sector continues to have a bright future. Indeed, when I spoke to BP about the job losses that it announced last week, it emphasised that it remained committed to the North sea, with the Kinnoull field coming on stream and the Clair field due to continue operations well into the 2050s. We should not, therefore, get too downhearted about what is going on. Immediate action is needed, however, to ensure that employment and exploration continue.

[Sir Robert Smith]

We need to realise that we face quite a large challenge. There is an undercurrent of jobs going, and that is not necessarily being reported. Contracts are being lost, especially by subcontractors, but that does not necessarily show up straight away in unemployment figures.

[Mr Weir]

I accept that. This is going on throughout the industry—in direct employment and among subcontractors.

Within their limited powers in this area, the Scottish Government have taken action. The First Minister has announced a new taskforce to focus on supporting jobs across the energy sector, with an initial emphasis on the oil and gas sector, and to secure an employer apprentice guarantee, under which firms would commit to taking on apprentices facing redundancy to ensure that they completed their training. That commitment would be supported by the Adopt an Apprentice recruitment incentive—currently, there is a one-off grant of £2,000, which is to be increased to £5,000—and by Skills Development Scotland staff.

If we are to protect Scotland’s vital oil and gas sector, however, the UK Government, specifically the Treasury, need to step up to the plate and to make immediate tax changes. We have already called on them to take urgent action to support investment and exploration. The Scottish Government have consistently called for measures to be implemented without delay, including an investment allowance to provide support for the development of fields that incur higher costs. That would support technically challenging, high-cost fields and sustain future investment. Professor Alex Kemp, a respected oil economist at Aberdeen university, estimates that an investment allowance could increase investment by £20 billion to £36 billion to 2050 and boost production by 1.2 billion to 2.2 billion barrels. Scottish Government estimates suggest that it could support between 14,000 and 26,000 jobs per year across the UK.

The Scottish Government have also called for a reversal of the increase in the supplementary charge implemented by the UK Government in 2011. The high overall tax burden faced by the sector is damaging its international competitiveness. The supplementary charge was increased by 12% in 2011, and the 2% cut announced so far does not go far enough in the current context of falling prices. Professor Kemp estimates that a reversal would increase production to 2050 by 500 million barrels and boost investment by £7 billion. Scottish Government analysis suggests that such a move could support up to 5,600 jobs per year across the UK.

In addition, the Scottish Government have called for the introduction of an exploration tax credit to help increase levels of exploration and sustain future production. As most of us are aware, levels of exploration in the North sea are low, which will inevitably reduce future discoveries. An exploration tax credit would help to increase exploration and, in turn, sustain future production. A similar approach was adopted in Norway in 2005. In the three years following its introduction, the number of exploration and appraisal wells drilled in the Norwegian North sea increased fourfold.

We have previously highlighted and backed industry concerns about the speed with which the new Oil and Gas Authority is being established, and we have called for appropriate resourcing of the new OGA to be put in place swiftly. The industry is concerned that the investment allowance the Chancellor is expected to announce in the March Budget will not be nearly enough at current oil prices, and we share that concern.

It has also become evident that an early commitment to reduce the supplementary charge rate would have the benefit of instilling confidence in operators and the sector, while discouraging premature decommissioning, which is obviously important for future work in the North sea. To significantly enhance the industry’s long-term competitiveness, we have recommended that, at the very least, the industry requires a reversal of the supplementary charge increase implemented by the Government in 2011.

That substantial package of measures should be announced without delay to safeguard investment, jobs and the long-term sustainability of the North sea. If it is not forthcoming, UK Government policy on the industry will be found seriously wanting once again. Despite what other Members say, reform of the fiscal regime must not wait until the Budget, but must be implemented now, and that should include a commitment from the UK Government to a substantial reduction in the supplementary charge rate.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

I have a genuine question on a point of interest. Is Scottish Enterprise putting together a taskforce at this time? I understand what the hon. Gentleman says about the fiscal measures that may be needed, but what is Scottish Enterprise doing right now in terms of practical help on the ground?

[Mr Weir]

I have already referred to that; the hon. Gentleman should listen a bit more carefully. I did mention the First Minister’s announcement about what the Scottish Government were doing.

The Scottish Government have endorsed the findings of Sir Ian Wood’s review on maximising recovery on the UK continental shelf and particularly his recommendation of a stronger, more effective regulatory body, and so, too, did the UK Government. We welcomed the long-awaited announcement of the appointment of the OGA’s chief executive. However, it is imperative that progress is much quicker so that we can start to reap the benefits that an effective, well resourced authority has the potential to bring the industry and the nation.

[John Robertson]

Has the hon. Gentleman taken into consideration the fact that the Saudi Arabians and the Russians have enormous resources in this field, which we are trying to maintain? If they wish to keep undercutting us, the policy he outlines will become useless.

[Mr Weir]

In a way, I am surprised by that comment from the hon. Gentleman, because it seems to be a counsel of despair. We must do what we can to keep our industry going. Unfortunately, we cannot influence what the Saudis or anybody else do with their oil prices. As far as we can, however, we must take the action necessary in the UK to make sure that the North sea industry, and particularly the employment that it provides, survives.

Even if the Saudis do try to do what the hon. Gentleman says, they cannot do it for ever. At some point, oil prices will start to come up again; indeed, the International Energy Agency has predicted—obviously, this is only a prediction—that the price will probably return to about $80 a barrel in the current year. We will have to wait and see whether that happens and, if so, how fast.

The OGA is particularly important, given the pressures being felt by the industry. The Scottish Government were pleased to see Aberdeen confirmed as the location for the OGA’s headquarters in June, and the suggestion that there will be an increase from 59 to 145 full-time equivalent staff by 2019 is welcome, because it might help to address the serious understaffing identified in Sir Ian Wood’s review.

The challenge is to ensure that the appropriate level of expertise and knowledge is secured, but it is critical, given present circumstances, that appropriate resourcing is put in place swiftly at the new OGA, with the correct level of industry experience and expertise. Industry is clearly concerned about delays in the process. As Malcolm Webb, the head of Oil & Gas UK, has pointed out, it looks as if it will take until summer 2016 before all the processes involved in setting up the OGA are completed. I agree that that is far too long, and I would appreciate an explanation from the Minister of why the process is taking so long and what action will be taken to speed it up.

The Wood review must be implemented effectively and with increased speed and resources, in the light of the growing challenges facing the industry. On the website Energy Voice, on 6 January, Malcolm Webb said:

“Years of confused and confusing energy policy, not helped by a revolving door approach to the appointment of ministers (we’ve seen a total of 35 different Energy and Treasury Ministers given responsibility for our industry in the last 14 years), have raised serious questions about our politicians’ awareness and understanding of this industry and its vital importance to the UK economy.”

I agree, and the UK Government need to take urgent action to assist the industry at this difficult time.

Oral Answers to Questions

Mike Weir Excerpts

Wednesday 14th January 2015 Commons Chamber

[Mr Carmichael]

I thank my right hon. Friend for that question. I look forward to joining him in the not-too-distant future, and if Brora is a place in his constituency that he thinks I should see, I will be more than happy to go there with him. He is right to mention the opportunities that have been created as a result of this measure, and businesses the length and breadth of Scotland will tell a story similar to the one he has just related. On his proposal to extend the scheme, he will be aware that a Budget is coming up in March, and he or any hon. Member from across the House who wants to make representations can do so through the Scotland Office.

[Mr Mike Weir (Angus) (SNP)]

4. What steps the Government are taking to maintain existing Scottish rail services on and connected to the east coast main line.

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

The new deal the Government have signed for the east coast main line franchise with Virgin and Stagecoach will provide new services, new state-of-the-art trains with more capacity, and reductions in journey times.

[Mr Weir]

I thank the Minister for that answer. He will know that the east coast main line is an important link through my constituency, but it has been reported that the new franchisee intends to drop one station south of Edinburgh from the line, raising fears that other stations may be dropped from the new service. Will he give an absolute assurance that, after the change of franchisee, services on the east coast main line will continue to stop at all the stations currently used?

[David Mundell]

I hoped that the hon. Gentleman and his colleagues would welcome the new franchise with its services to Falkirk and Stirling. There is no suggestion that there will be any reduction in services, but I am happy to make further inquiries for him on that point.

Oral Answers to Questions

Mike Weir Excerpts

Wednesday 7th May 2014 Commons Chamber

[David Mundell]

I absolutely agree with my hon. Friend. Oil clubs are developing in Scotland and the Government are keen to promote and support them. I commend him for highlighting this issue.

[Mr Mike Weir (Angus) (SNP)]

11. If the Minister is genuinely concerned about rising costs of energy in Scotland, why is it that Ofgem has yet again delayed the implementation of Project TransmiT, which would finally begin to tackle the discriminatory and expensive transmission charges? Will he press his colleagues to implement it immediately?

[David Mundell]

Project TransmiT is one matter on which I am probably in agreement with the hon. Gentleman. The important thing for Scotland is to get the right answer. Yes, it is disappointing that it has taken some time, but the Scotland Office is determined to work towards getting the right answer, and I urge him and his colleagues to continue to press Ofgem on this as well.

Scotland and North-east England Post-2014

Mike Weir Excerpts

Tuesday 4th March 2014 Westminster Hall

[Several hon. Members]

rose—

[Mr Mike Weir (in the Chair)]

Order. Six people seek to speak, and I hope to call the wind-ups no later than 10.40. I will not impose a time limit at this stage, but I ask Members to bear in mind that I hope to get everybody in.

--- Later in debate ---

[Mr Hamilton]

Will the hon. Gentleman give way?

[Mr Mike Weir (in the Chair)]

Order.

[Mr MacNeil]

It is not necessary to have David Cameron as Prime Minister to be British.

--- Later in debate ---

[Several hon. Members]

rose—

[Mr Mike Weir (in the Chair)]

Order. The two speakers left are down to 11 minutes. I will not be timing them, but I ask them to bear that in mind.

Scotland’s Place in the UK

Mike Weir Excerpts

Thursday 6th February 2014 Commons Chamber

[Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)]

It is a pleasure to follow the hon. Member for Ayr, Carrick and Cumnock (Sandra Osborne) and I congratulate the hon. Member for Glasgow North East (Mr Bain) on securing this debate and the Backbench Business Committee on recognising the importance of addressing this issue.

I want to take a positive approach to Scotland’s place in the United Kingdom. It has played a dynamic role and it is one that has evolved. With 300 years of common history, we have still got our distinctive legal system, our distinctive education system, our national identity, and we have recreated our own Parliament to deal with those issues that directly affect us in our lives in Scotland, so we do, as the slogan says, get the best of both worlds: a say in those decisions that affect us that are taken at the UK level, and a say in those decisions that affect us directly in Scotland in the Scottish Parliament.

In putting the positive case for voting no, I return to what the hon. Member for Chichester (Mr Tyrie) said, and point out that the best and simplest way of keeping the pound sterling is to remain part of the UK. That is most easily achieved by voting no in the referendum. It gives us a say in how our currency is managed and it keeps us part of a borderless fully internal market, with a more diversified economy. The banking crisis reminded us that Scotland’s heavy dependency on the financial services sector—a great achievement by many people working in that sector—presents a challenge when it goes wrong. It was the rest of the UK’s economy and diversification that helped to sustain us through that crisis.

The oil and gas industry is also a great success story in Scotland, as the former Secretary of State my right hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (Michael Moore) mentioned. It is a great technical achievement and there are a lot of people with a lot of skills and the work they do has a lot of export potential. It is also a very unstable source of revenue to the economy, however, because it depends on the global oil price. When the price is high, the economy does well. When the price is low, being part of a larger economy, when other parts of the economy can benefit from the low oil price, gives the ability to transfer resources and sustain the economy. The UK’s diversified economy also allows us to come up with tax incentives to stimulate exploration, forgoing cash flow now for long-term benefits.

[Mr Mike Weir (Angus) (SNP)]

The hon. Gentleman talks about being part of a larger economy. Norway is not part of a larger economy. Is he suggesting it is not successful with its oil and gas and its general economy?

[Sir Robert Smith]

Norway is far more dominated by the oil and gas sector and has a successful economy, but if there is a downturn in the oil price Scotland does not have the economic resources and reserves to take that hit, yet we have the benefit of being part of a wider, dynamic, more diversified UK economy—and we will be, too, when the oil eventually runs out.

As has been mentioned, we also have access to a global network of embassies and trade missions that work positively to benefit Scotland and promote Scottish trade and investment in Scotland. We will continue to enjoy that positive benefit if we vote no in the referendum.

As has been highlighted in recent speeches, the business community does not have a vote in the referendum. The referendum is for the people of Scotland to decide Scotland’s future. It is one person, one vote and it is up to the people of Scotland to make that decision, but they are entitled to know the concerns of business. We want to hear the voices of business. Yes they cannot tell people how to vote, and yes they cannot dictate the result of the referendum, but if they remain silent and then quietly implement what they plan to do in the event of a yes vote in the referendum, the people of Scotland will have voted for a future without knowing the consequences and being able to take that on board. It is therefore extremely important that the business voices have the courage to speak up and inform the debate so people can make a clear and decisive choice in the referendum.

--- Later in debate ---

[Pete Wishart]

We will ease pretty seamlessly into a new independent status. The day after we secure a new nation, it will be pretty much like the day before, but something remarkable will have happened. All of a sudden, the country will be ours to shape and to determine. If things do not work out, we can change them. We can change them because we have the power of independence. For the first time in 300 years, our nation will belong to us, and nothing could be more exciting and transformative.

It is all down to this choice. If we vote no, we are accepting that this is as good as it gets. This is what we have to settle for. It signals a contentment with Westminster rule and Westminster politicians’ ability to deliver for Scotland.

[Mr Weir]

Will my hon. Friend give way?

[Pete Wishart]

Of course I will.

[Hon. Members]

Oh!

[Mr Weir]

My hon. Friend will no doubt remember, as I do, campaigning in the first referendum on devolution in ’79. We were promised, “Vote no and you will get more powers”, and he will remember what happened. We got absolutely nothing.

[Pete Wishart]

I do indeed remember that, and I am grateful to my hon. Friend for bringing that up because it happened in my constituency. In Perthshire, we have long memories when it comes to these issues.

If we vote no, we will be saying that we approve of Westminster government and whatever future the rest of the UK decides for us. Well, I do not like where the UK is going.

--- Later in debate ---

[Mr MacNeil]

No, I will not, but others are free to campaign for that if they so choose and to do so if they win a mandate.

To my many English friends who worry that in the absence of Scotland they would have permanent Tory Government in the rump UK, the facts are that Scotland has changed the Government of the UK for only six months since 1945, whereas the Scottish nation, under the tawdry political Union of 1707, has got a Government it has not voted for two thirds of the time since 1945.

[Mr Weir]

Does my hon. Friend remember all the claims made for devolution by those in the Tory party who said that it would lead to Labour being in power in Scotland for ever, and how a short a period that turned out to be?

[Mr MacNeil]

My hon. Friend makes a great point. Labour is out of power in Scotland, and, like the Liberals and Tories, is heading ever further downwards.

Scotland will not affect the Government of Westminster 98% of the time. Regardless of that, our first job as representatives of the people in Scotland is to make the lives of those who live in Scotland better. Concern about who is in government in London, Paris, Madrid, Berlin or Dublin should not be the guiding light of any Scots democrat: it should be the conditions of people in the housing estates of Easterhouse, Castlemilk, Sighthill and The Raploch and bettering our cities.

Oral Answers to Questions

Mike Weir Excerpts

Wednesday 5th February 2014 Commons Chamber

[Mr Carmichael]

I certainly agree with the first part of the hon. Gentleman’s prescription that a no vote in September is very important, but I have to remind him that in one year alone under Labour there was a 20% increase in energy prices, and there was no suggestion of a price freeze then. When Labour Members were in government, they knew the reality: a price freeze would see prices going up before the price freeze and prices going up again afterwards. We are delivering help to vulnerable people in the here and now.

[Mr Mike Weir (Angus) (SNP)]

Whatever the headline average price increase, the fact is that that hides a multitude of sins. A constituent who approached me this week is a low electricity user and is facing a 50% increase in his unit cost. Others are finding that they are being hammered by high standing charges. Is it not time for the Government to take action and stop these practices?

[Mr Carmichael]

These are all reasons why it is important to improve transparency in the market and the range of tariffs available. That has been the result of the action this Government have been taking. Under the previous Government there were at one point no fewer than 400 different tariffs available, so it was no surprise that people were confused. Simplicity is the way ahead and the Government are working on that, along with the regulator.