Wednesday Volume 572 18 December 2013 No. 96 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Wednesday 18 December 2013 £5·00 © Parliamentary Copyright House of Commons 2013 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 723 18 DECEMBER 2013 724 Mr Carmichael: I may be wrong, and if I am I House of Commons apologise, but I do not think my hon. Friend is right about the relative taxation of whisky and other alcoholic Wednesday 18 December 2013 drinks. [Interruption.] I have now been informed that beer duty is 37% and whisky duty is 42%, but in any event it is wrong to play off one part of Scotland’s The House met at half-past Eleven o’clock highly successful food and drinks industry against another. I am sure that the Chancellor will continue to listen to representations from the Scotch whisky industry, which PRAYERS my hon. Friend and I have made jointly over the years. Mr Brian H. Donohoe (Central Ayrshire) (Lab): I [MR SPEAKER in the Chair] declare an interest, as secretary of the all-party parliamentary scotch whisky and spirits group. Nearly every week the group receives representations about the whole question of the duty escalator and the unfair Oral Answers to Questions treatment of the spirits industry in relation to the beer industry. The Chancellor gave so much to the beer industry in his most recent Budget. What representations SCOTLAND has the Secretary of State made to the Chancellor with the aim of overcoming the problem? The Secretary of State was asked— Mr Carmichael: I will continue to make representations on behalf of the whole food and drink industry in Whisky Industry Scotland, in which the hon. Gentleman and his all-party group play an important part. I have joined the hon. 1. Mrs Anne McGuire (Stirling) (Lab): What Gentleman on many occasions over the years as part of discussions he has had with the Chancellor of the such delegations, and I will continue to give him as Exchequer on the employment interests of workers in much support as I can. the whisky industry in Scotland. [901633] Angus Robertson (Moray) (SNP): Does the Secretary The Secretary of State for Scotland (Mr Alistair of State not accept that 80% of the price of a bottle of Carmichael): I have regular discussions with the Chancellor Scotch whisky is duty, which is paid to the United about a wide range of issues, and I can assure the hon. Kingdom Treasury? Duty discrimination by the UK Lady that the whisky industry in Scotland and its Government is widening the gap between the price of employees are a key priority. My Department has long- whisky and the price of other beverages. How does that standing contact with the Scotch Whisky Association, help the industry and employees? which aids our understanding of the industry. Mr Carmichael: The point to which the hon. Gentleman Mrs McGuire: Scotch whisky is exported to about should respond—although I suspect that he will not—is 200 countries, and the industry directly employs 10,000 that the Scotch whisky industry does very well as part of people in Scotland. According to a recent White Paper the United Kingdom industry, taking full advantage of from the Scottish Government, there will be about 90 the string of embassies and UKTI offices that we have Scotch whisky embassies if the Scottish Government throughout the world, and his policy of independence have their way after independence. Does the Secretary puts that at risk. of State agree that trade agreements brokered by a strong and extensive United Kingdom diplomatic and Angus Robertson: In opposition, the right hon. international trade infrastructure are integral to the Gentleman and I, along with others, lobbied the Treasury success of Scotch whisky exports? I— to end tax discrimination. In fact, the right hon. Gentleman himself tabled an amendment for that purpose, supported Mr Speaker: Order. I am sorry to be discourteous, by Liberal Democrat Members and the Scottish National but the question is too long. party. Since becoming Secretary of State for Scotland, he has taken the Tory shilling, he is letting the industry Mr Carmichael: The right hon. Lady is absolutely down, and he is supporting a discriminatory duty. When right. Given that 90% of the product of the Scotch will he stand up and be Scotland’s man in the Cabinet, whisky industry is for the export market, it is of supreme rather than the Tories’ man in Scotland? importance for Scotland to have the best possible access to that market, and we have that facility through the Mr Carmichael: I do hope that that sounded better network of some 270 embassies throughout the world when the hon. Gentleman rehearsed it in the mirror and through United Kingdom Trade & Investment. earlier this morning, because it sounded pretty poor That is what matters, and that is why the Scotch whisky just now. There is no escaping the fundamental truth industry makes such good use of it. that his policy would be the ruination of the Scotch whisky industry, for no good reason. Mr Alan Reid (Argyll and Bute) (LD): The Scotch whisky industry provides many jobs in my constituency, Low Pay but I feel that it is very unfair that whisky is taxed at a higher rate per unit of alcohol than beers and wines. 2. Mr William Bain (Glasgow North East) (Lab): Will the Government look again at alcohol taxation What steps the Government are taking to tackle low with a view to creating a level playing field? pay in Scotland. [901634] 725 Oral Answers18 DECEMBER 2013 Oral Answers 726 The Parliamentary Under-Secretary of State for Scotland Stewart Hosie (Dundee East) (SNP): The UK (David Mundell): With your permission, Mr Speaker, Government’s attitude to the living wage was encapsulated before I answer that question, may I draw the House’s by the Under-Secretary of State for Business, Innovation attention to the fact that Saturday 21 December will and Skills, the hon. Member for East Dunbartonshire be the 25th anniversary of the Lockerbie bombing? (Jo Swinson) earlier this year when she said: That remains the single largest loss of life ever in the “There is no recognised definition of a national living wage.”— United Kingdom, with 270 people perishing on that [Official Report, 10 June 2013; Vol. 563, c. 211W.] fateful evening. I am sure that the thoughts and prayers She went on to explain that the Government had therefore of the whole House will be with the community and made no assessment of its consequences, were it to be with those who lost friends and family on that day. introduced. Should not the Government move quickly Much of the focus over the past 25 years has been on to introduce a living wage for their employees, wherever the perpetrators, but the friends and families of the they might be based in the UK, rather than hiding victims and the community of Lockerbie deserve our behind the vacuous argument that it is too difficult to respect and admiration for the formidable way in which calculate, given that we know it will be £7.65 an hour in they have coped with 25 years of unprecedented global Scotland and £8.80 in London next year? attention. The national minimum wage is one of Government’s David Mundell: It is never a surprise to hear the key policies to support the low paid, and it is UK wide. Scottish National party mention London in the same On 1 October, the adult minimum wage increased to breath as Scotland. As I said to the hon. Member for £6.31 per hour. We have also increased the income tax Motherwell and Wishaw (Mr Roy), the Government personal allowance to £10,000, taking 224,000 Scots believe that the living wage is a concept that should be out of income tax altogether and benefiting 2.2 million supported, where employers can afford it and where it is Scottish taxpayers. not introduced at the cost of jobs. Mr Bain: I am sure that the whole House will Margaret Curran (Glasgow East) (Lab): May I associate commend and agree with the Minister’s remarks about myself with the Minister’s remarks about the terrible Lockerbie. tragedy of Lockerbie? In his subsequent answer, the right hon. Gentleman Low pay is one of the reasons that people are using omitted to say that prices had risen more quickly than food banks in Scotland today. I wish nothing personal wages in 41 of the 42 months he has served as a towards the Minister, but I am disappointed that the Minister in this House, that low pay was on the rise in Secretary of State did not answer this question himself, Scotland and that the value of the national minimum because we know that the Secretary of State has wage had declined in real terms under this Government. recently begun to struggle with some of the details of When are he and the Business Secretary going to do his brief. Let me see whether the Minister can do something concrete to deal with all that? Or is he just any better. Will he tell the House what the percentage going to sit on his hands while the cost of living crisis in increase in the number of people using food banks in Scotland gets worse by the day? Scotland in the past year has been? Given that it is Christmas, I will offer him a hand.