1. What steps he is taking to promote the benefits of Scotland remaining within the UK. (111817)

As my right hon. Friend the Prime Minister has made clear, we believe that Scotland is stronger in the United Kingdom and that the United Kingdom is stronger with Scotland in it. Leading up to the referendum, the Government will produce detailed evidence and analysis to assess the benefits that Scotland gains from being part of the United Kingdom and the contribution that Scotland makes to our United Kingdom.

I thank the Secretary of State. Does he agree that the defence of Scotland, England, Wales and Northern Ireland will be greatly enhanced if we do not have a separate Scotland? Defence matters greatly to the whole of this country.

My hon. Friend makes an important point. Over the next 18 months, civil servants will prepare detailed analysis and evidence that will show the basis of the arguments that we need to be involved in as Scotland confronts this great debate. Fundamentally, protecting our citizens is one of the most important parts of our role in government. We will also want to consider our position in the world and the economic benefits that we get from being part of the United Kingdom.

The Secretary of State and his Tory and Labour allies in the anti-independence coalition all say that they believe the constitutional status quo is not sustainable. With only days to go until the formal launch of the no campaign, will he outline to the House what joint proposals they have for further devolution? What powers will be devolved, and when?

I hope that the hon. Gentleman has not got himself into trouble by mentioning the “independence” word, but he is a brave guy, so perhaps he thought it was a risk worth taking.

It is a bit rich for the hon. Gentleman to come here and ask questions of us, with our having just delivered the biggest transfer of financial powers from London to Scotland since the Act of Union. Every time we ask him what “independence” means, his proposals unravel.

Last time I looked this was Scottish questions—questions to the Secretary of State and the UK Government. I ask him for a second time: given that he and his allies say that the constitutional status quo is not sustainable, what specific joint proposals do they have for the further devolution of powers? He did not answer the question the first time I asked it. Will he please answer it now?

I thought that the hon. Gentleman’s party had belatedly and even grudgingly welcomed the fact that the Scotland Act 2012 has now set in place the biggest transfer of financial powers north of the border, including borrowing powers, the Scottish rate of income tax and the transfer of stamp duty land tax. The debate to which he refers, which we all need to get on with, is the one about independence. That is why the UK Government are absolutely committed to ensuring that we get the necessary evidence and analysis, working with experts, academics and outside bodies to ensure that we are equipped for that great debate across the country.

Does my right hon. Friend consider that Scotland being part of the United Kingdom is an important benefit in any international trade disputes? I particularly have in mind the efforts of the United States some years ago to restrict the import of the finest quality cashmere goods from his own constituency, in a dispute about bananas. Was the fact that Scotland was part of the United Kingdom an important factor in ensuring a proper resolution of that issue?

My right hon. and learned Friend is absolutely right. It was critical to us in the borders, and to the producers of luxury goods the length and breadth of Scotland, that we were part of the United Kingdom. We had great clout within the European Union and could negotiate within the World Trade Organisation to get the right outcome. Our position in the world, the protection of our citizens and the future of our economy are the three key strands that we will examine to ensure that we are well informed in this great debate.

We heard it here first: the launch of the “Separatists for Devolution” campaign. Scottish National party Members do not like the word “separation” or the word “independence”, and they want to leave Britain in order to make us more British. What a ludicrous set of proposals.

Order. I think there was a question somewhere.

I agree with the hon. Gentleman.

What representations has my right hon. Friend had on whether an independent Scotland would wish to join the euro?

None, but it is a matter for the Scottish National party and Scottish Government to set out their proposals. They have singularly failed to do so.

The Secretary of State may be aware that I received answers to parliamentary questions yesterday that indicate that although the Scottish Government argue that a separate Scotland will continue to use sterling, the Bank of England and UK financial regulatory institutions, they have not yet undertaken any work behind the scenes to explore those options—no correspondence has been sent, no questions have been asked and no discussions have taken place. Does he agree that the First Minister should spend less time in Hollywood and more time in Holyrood—[Interruption.] It was a good try. Given that the Scottish Government have made those statements on the economy and a separate Scotland, what steps has the Secretary of State taken to clear up the confusion and ambiguity of such claims?

I agree with the hon. Lady that it is quite striking that the SNP and Scottish Government are curiously short on the detail as they set out their lifelong ambition to create an independent Scotland, and that they are not curious to ask more questions. I start from a simple point: Scotland is stronger within the UK and the UK is stronger for having Scotland as part of it. The economy is a key part of that argument.

I thank the Secretary of State for that argument. In such debates on Scotland, we have assertion, not argument, and fantasy rather than facts—the Scottish Government’s arguments cannot pass the most basic test of credible evidence. Will the Secretary of State and the whole UK Government therefore work with others to ensure that we have credible evidence and arguments that pass the test of objective and independent scrutiny to ensure that Scottish people get the arguments they deserve?

I absolutely agree with the hon. Lady that it is important that this great debate is well informed by detailed evidence and strong analysis. That is why the Government are getting civil servants to work through the key issues and to engage with academics, think-tanks and other respected experts outside the Government to ensure we have all the evidence to inform the debate. As we do that over the next 18 months, I am confident we will show beyond doubt that Scotland’s place is much stronger as part of the UK.

2. What discussions he has had on the effect of the Scottish Government’s modern apprenticeship scheme on employment in Scotland. (111818)

I am in regular contact with the Scottish Government on a range of issues. Later this week, the British-Irish Council is due to discuss the effectiveness of programmes and policies to support youth employment in Members’ respective Administrations.

In the Scottish Parliament last week, the Labour spokesperson on youth unemployment, Kezia Dugdale MSP, uncovered figures showing that of the 25,000 modern apprenticeships that the Scottish Government claim to have set up, more than 10,000 involved people who were already in work. Does the Minister agree that the Scottish Government should spend public money on creating additional jobs, and not just on rebadging jobs?

I share the hon. Lady’s concerns about how the Scottish Government seek to present facts. The facts of their responsibilities on employment matters are clear, and they have had £22 million of additional money in relation to youth contract consequentials. I should like them to focus on how they spend that money rather than on their obsession with the constitution.

rose—

Order. I entirely understand, but I would like greater brevity from now on, to be exemplified by the hon. Member for Epping Forest (Mrs Laing).

Is the Minister aware that almost every economic analysis shows beyond doubt that employment prospects in Scotland would be significantly reduced if Scotland were separate from the UK?

I absolutely agree with my hon. Friend, who I am sure will welcome with me the fact that employment in Scotland increased by 18,000 in the last period.

I am sure that, like me, the Minister has witnessed the Labour party’s ridiculous and scurrilous campaign against what is undoubtedly one of the most successful modern apprenticeship schemes in Scotland. Seemingly, Labour Members’ complaint is against rules that they introduced themselves. Should the Minister not instead congratulate the Scottish Government on almost doubling the number of modern apprenticeships in the past year and on the extra £72 million of investment?

I noticed that the hon. Gentleman did not mention the word “independence”, so he is obviously on message. On unemployment in Scotland, including youth unemployment, the UK and Scottish Governments should work together.

3. What steps he is taking to expand employment opportunities in Scotland. (111819)

5. What steps he is taking to expand employment opportunities in Scotland. (111821)

The Government are committed to creating the right environment for sustained economic growth to provide the basis for the creation of secure jobs.

It should come as no surprise to the Secretary of State that unemployment in Scotland is at crisis level. The unemployment figures are unacceptable; in particular, the youth unemployment figures are disgraceful. If it were not for my council in Inverclyde—

Order. I just need a question from the hon. Gentleman.

May I press on the Secretary of State and the Government the need to make reducing the unemployment figures in Scotland their absolute priority? Will he join—

Order. We are grateful, but we must move on.

I agree that we must do everything possible to reduce unemployment, particularly youth unemployment, which, as the hon. Gentleman will recall, began to rise during the growth periods under the previous Labour Government. Through our measures, including the Work programme, the youth contract and our joint work with the Scottish Government, we have been bearing down on the problem, but I am happy to meet him to discuss the matter further, if he wishes.

Is the Secretary of State aware that the Scottish chambers of commerce have today called for an expansion of infrastructure investment to help Scottish businesses? What will he do to ensure that this happens?

The hon. Lady needs to recognise the serious steps we are taking to get the economy back on a secure path to growth, after what we inherited from her Government two years ago. We must also bear in mind the crisis in other parts of Europe. By cutting corporation tax, keeping interest rates as low as possible and introducing specific measures for Scotland, including the enterprise areas in Irvine, Nigg and Dundee, we are taking action to help the Scottish economy.

Does the Secretary of State agree that by cutting corporation tax, reducing regulation and, at the same time, having the largest Work programme the country has ever seen, we are succeeding in Scotland, with 14,000 fewer unemployed people this month—the third month in a row?

I certainly welcome the reduction in unemployment, but we need to recognise that things will continue to be challenging for people the length and breadth of Scotland and the rest of the UK. My hon. Friend is right, though, that our measures to get the economy back on the right track are fundamentally right and are the way to create secure jobs.

Does the Secretary of State agree that Statoil’s decision to invest in the North sea and a further 300 jobs for Aberdeen is recognition that the Treasury’s positive new approach to encourage investment is bearing fruit?

My hon. Friend is right. There have been significant announcements in the energy sector from Statoil, BP, Gamesa and others on the future of Scotland’s energy needs, not only in oil and gas but elsewhere. They recognise that that is an important part of what the Government are committed to and that Scotland is better for being part of the UK when it comes to delivery.

I am glad that the Secretary of State welcomed the 14,000 fall in unemployment—that is good news—and I am sure he will also want to welcome today’s news on foreign direct investment into Scotland creating jobs, but of course he is right that we must create the right environment for businesses to employ people. That means downward pressure on costs, particularly fuel prices, which are recognised as one of the most significant cost pressures that businesses face. Will he therefore ask his Treasury colleagues to cancel the fuel duty rise planned for August?

I point out to the hon. Gentleman that thanks to the Government’s actions in introducing the fuel duty stabiliser and abandoning the escalator we inherited from the Labour party, we are doing a lot to help motorists, and will continue to do so.

I remind the House that the clue is in the heading—“Questions to the Secretary of State for Scotland”.

Listening to the Secretary of State reminds us how totally isolated he is in Scotland in believing that the answer to this crisis of weak economic demand is harsher austerity over the next four years. Does he not accept that nearly twice as many people as on black Wednesday are being forced to work part time because there are not enough full-time jobs in our economy? Some 320,000 people in Scotland are struggling below the poverty line despite being in work, and real wages have fallen every month that this Government have been in office. Is that not the real explanation of why we face a double-dip recession, made in Downing street?

It may suit the hon. Gentleman’s case, but he cannot be allowed to forget the legacy of his Government and the mess that we inherited two years ago, nor can the Opposition be allowed to be blinkered about the challenges around Europe and the world. We are ensuring that we create the right financial and economic conditions to get Scotland and the UK economy back on the right foot.

4. What recent discussions representatives of his Department have had with representatives of the Scottish agricultural industry. (111820)

I meet regularly with representatives of the Scottish agricultural industry, including the National Farmers Union of Scotland and individual producers. I look forward to further direct engagement tomorrow, when I attend the royal highland show.

Does the Minister agree that those in the Scottish agricultural sector are better off with Scotland remaining part of the UK?

I absolutely agree with my hon. Friend. An independent Scotland would shrink our home market of 60 million consumers to a mere 5 million overnight. Farmers would be reliant on exporting their produce. Some 64% of Scottish beef was sold to the rest of the UK, as the first point of delivery, in 2011.

Perhaps the Minister could try answering a question about something that is actually the responsibility of the UK Government. Is he aware of the huge concern in the Scottish agricultural and horticultural sectors about the future of the seasonal agricultural workers scheme, which is due to expire next year? Has he made representations to the Home Office for the continuation of the scheme?

I note the hon. Gentleman’s concerns and I would be happy to meet him to discuss them further.

6. What recent discussions he has had with the Scottish Government on youth unemployment. (111822)

I meet with Scottish Ministers regularly to discuss a range of issues. On 15 March, Scottish Ministers joined me in Dundee for a joint-Government summit to discuss youth unemployment in Scotland, and we agreed to continue to work together on this important issue.

With the information that there was falsification going on in the apprenticeship schemes—with people already in work being counted as new apprentices—and with the offshore oil industry saying that it needs 44% of those with non-graduate technical skills to fill the spaces that are coming up in the industry, is it not time that the Secretary of State showed some leadership and called an all-party, all-Parliament forum in Scotland about unemployment and stopped the behaviour of the Scottish National party, which has been running a single-party state, with its Ministers wandering round having one-party meetings?

I appreciate the length of time that the hon. Gentleman has spent working on this issue over his political career. I also believe that it is important that the parties can work together, because the origins of youth unemployment lie elsewhere, rather than just under this Government’s tenure. I am happy to work with him and others to ensure that we get all the best ideas focused on tackling youth unemployment.

I welcome the Secretary of State’s recent visit to my constituency’s largest employer, Aviva in Bishopbriggs, which has 1,100 staff, and his support for my “Get East Dunbartonshire Working” initiative, which has helped to create 43 new employment and training opportunities in the local area since the end of April. What more can the Government do to ensure that businesses are aware of the support that is available, particularly through the £1 billion youth contract, to employ young people in particular?

I thank my hon. Friend for the opportunity to pay a visit with her to the Aviva offices in her constituency, and I pay tribute to Aviva for the work it is doing with young people and others. It is very important that we do all that we can to support young people. That is why the youth contract is now in place, boosting work experience, increasing the number of wage incentives that are available and ensuring that the Scottish Government have support for more apprenticeships.

There is plenty of scope for an Adjournment debate, I think.

The Secretary of State recently visited my constituency. I wonder whether he could give us a progress report on how he has got on with the schools-industry liaison committees.

I regret to inform the hon. Gentleman that I have not made as much progress as he would wish me to. I hope, however, that he will recognise the important support that we have given to Irvine, in the form of the enterprise allowances—the 100% capital allowances that are now available—and I will be happy to catch up with him on the school-industry partnership and the Scottish Government’s role in it any time soon.

Does my right hon. Friend agree that the plans to reform employment law will particularly encourage small businesses to take on more young people?

As my hon. Friend will know, the employment law review will carry on through this Parliament, and I look forward to seeing the proposals that will come forward in due course.

7. What steps he is taking to reduce energy prices in Scotland. (111823)

The Government are committed to ensuring that consumers get the best deal for their energy usage, and have put in place measures to help to reduce household energy bills. In May, I held a summit in Rutherglen, bringing together the big six energy suppliers, Scottish consumer groups and the regulator, Ofgem, to examine ways of addressing this issue.

Over the past eight years, average energy prices have increased by 140% per household, while the increase in average income for households has been a mere 20%. What are the Government doing to respond to people’s worries—especially those of low-income families, elderly people and people with disabilities—and to deal with this onslaught on vulnerable people?

The Government are continuing the cold weather and winter fuel payments, and bringing forward the green deal. We are also working with voluntary organisations across Scotland to help them to support the most vulnerable people, so that they can access all the fuel-related benefits that are available to them.

Many islanders are telling me that the 5p fuel duty discount is not being passed on to the motorist. Will the Minister ask Her Majesty’s Revenue and Customs and the Office of Fair Trading to investigate this matter? They must ensure that this discount is passed on to the motorist in its entirety.

I am concerned to hear what the hon. Gentleman is saying, and I would be happy to meet him and other concerned island MPs to discuss the matter.

8. What steps he is taking to reform central Government funding for the devolved Government in Scotland. (111824)

As the coalition agreement sets out, we are committed to a review of public funding arrangements once we have dealt with the unprecedented deficit that we inherited from the previous Government.

Someone would need an intelligence as profound as that of Spinoza to understand central Government funding of Scotland, but it must be clear to even the most basic English person that not only do we have no say over education and health in Scotland while they run ours, but we pay over the odds for theirs. Should not the Scottish National party be careful what it wishes for when it calls for independence?

My hon. Friend, more than most, understands the complexities of public spending in this country. I say to him, however, that our priority has to be to reduce the deficit, after which we can look at these issues again. I would also gently point out to him that within England there are quite large variations, and that the figure per head for spending in London is higher than in Scotland.

10. Given that the Scottish Government have had no discussions with either the Chancellor or the Bank of England about having a place on the Bank’s Monetary Policy Committee—which would be a committee of a foreign country—does the Secretary of State agree that this is another fanciful assertion that cons the Scottish people? (111826)

The hon. Gentleman is entirely right to highlight the fact that the Scottish Government are yet again making such assertions rather than producing detailed analysis and evidence, which is what this Government are determined to provide in this great debate. The Scottish Government seem willing and able to swap a good partnership for some kind of new dependency, and that is not right.

9. What assessment he has made of the implications for the Scottish fishing industry of the recent EU Fisheries Council. (111825)

The UK Government have worked hard to influence the content of the “General Approach” at the Fisheries Council. It would deliver positive benefits for Scotland’s fisheries and those who depend on them, and I welcome its commitment to manage fish stocks sustainably, to move towards more regionalised fisheries management and to ensure that discards are eliminated.

I also welcome the progress that was made in Luxembourg last week, but does the Minister think that this would be an appropriate juncture in the process at which to introduce more transparency into fisheries management in the form of the UK Government making public the individuals and companies that hold fish quota here?

I agree with the hon. Lady that it is important for the UK Government and the Scottish Government to work well together, and the recent Fisheries Council is a good example of them doing that for the benefit of Scotland’s fishermen.

The hon. Member for Banff and Buchan (Dr Whiteford) is absolutely right: we need a register of active fishermen—[Interruption.]

Order. The House must come to order. The House should be listening to the Chair of the Select Committee on Environment, Food and Rural Affairs—listening with respect.

—and fisheries. [Laughter.] The hon. Lady is absolutely right that, without a register, we do not know who are active fishermen in Scotland and who are slipper skippers.

Ministers both here in the UK Government and in the Scottish Government will have heard the comments of my hon. Friend, who is a respected contributor on such matters.

11. What plans he has to mark the bicentenary of Dr David Livingstone’s birth in March 2013. (111827)

I have met representatives of the Scotland-Malawi partnership to discuss the best way for the UK Government to mark this bicentenary. The Scotland Office will hold a commemorative event at Dover house. My officials will work with other interested parties to ensure that this anniversary is celebrated across the UK.

I thank the Minister for his reply. Will he join me in supporting my invitation to the President of Malawi, Joyce Banda, to visit the UK during the bicentenary and as part of that visit to come to Blantyre, Lanarkshire, in my constituency?

I commend the hon. Gentleman for the role he has played in promoting the David Livingstone bicentenary, which has great resonance in his constituency. Yes, the Scotland Office will work with him and others to encourage the President of Malawi to come to Scotland.