HC Deb 10 March 1997 vol 292 cc22-76 3.33 pm
Mrs. Margaret Ewing (Moray)

I beg to move, That this House calls for a concerted effort to eradicate poverty and create full employment; believes in a society free of social injustice and inequality where decent, democratic values ensure that priorities become the defeat of homelessness, the maintenance of free health care and the guarantee of dignity from cradle to grave for all citizens; pledges itself to working against the politics of selfishness and greed and to developing a society where the contribution of the whole community is sought and valued; and, for the above reasons, rejects the Government's proposed spending plans for 1997–98 and 1998–99. I welcome the opportunity to highlight social and economic justice and our public responsibility in this House for those issues. Central to the debate is the political will to effect change to the benefit of all our constituents, the communities that we represent and people outwith our country.

Politicians are not held in the highest regard at any level of political activity—community council, local council, Parliament or Europe. However, my experience during 15 years in the House is that the majority of Members of Parliament work very hard on behalf of individuals and hold dearly concepts of social and economic justice. We do not always achieve the results that we want, but there is a genuine consensus among politicians that we are here to represent people and we want to achieve the best for them.

It is tempting to concentrate on what the media tell us are the critical issues of the day, but we should step back from that from time to time and consider what we are doing as legislators, because that is fundamental to all of us. Everyone in the House—I am glad to see a substantial number of hon. Members present—should ask themselves why they signed up to represent their party and why they decided to become involved in politics, particularly when many people appear to regard politics as despicable.

I joined my party for a simple reason. People are always asked why "they" did not do something. That "they" was a grey, amorphous organisation. People should ask, "Why don't I become involved? Why don't I do something about what is happening in my community and my country?" As a young student at Glasgow university—that well-known breeding ground for politicians—I listened to our lecturers talking about history, culture and literature. I was struck by the words of John Donne, the metaphysical poet. Metaphysical poets are one of my great joys in life. I read them regularly. John Donne wrote: No man is an Island, entire of it self… And therefore never send to know for whom the bell tolls; It tolls for thee. Whatever our party or our constituency, we are all here to talk about the people for whom the bell tolls. Politics is about the involvement of people. It is about thought and analysis of the situation in which we find ourselves.

When this institution was founded, we did not have electronic media or journalists wanting a quick quote on every issue. In one respect, insularity and immediacy have perhaps undermined our political process. Those who fought for you and me, Madam Speaker, to have the right, as women, to be members of this House and to vote did so because they believed that society would be changed irrevocably through representation. Indeed, such campaigns have changed many aspects of society.

Dame Elaine Kellett-Bowman (Lancaster)

The hon. Lady made some interesting observations about people saying not, "What can I do about it?", but, "What are they going to do about it?" I received 30 letters from children at a school in my constituency asking what I, the Government or somebody else could do. Only one out of 30 letters said, "What can I do?" It seems to me that the desire to fob off responsibility starts at far too early an age and I honestly do not know how to tackle that problem.

Mrs. Ewing

The hon. Lady has raised a genuine point that I shall address later in my speech. We all, as individuals, have a responsibility to contribute to society and the values and visions that we hold dear.

I studied history at university and it is clear from our history books that many social reforms would not have occurred without representation. One such example is slavery. People were told that black people could not be freed from slavery as they would not cope with society. I pay tribute to those who argued against that in Parliament and, with great difficulty, achieved the abolition of slavery.

Representation helped to remove the horrendous attitudes that allowed small boys and girls to work as chimney sweeps and stopped them being sent up chimneys to clear out the soot. I do not believe that the welfare state would have been established without representation. Those fundamental issues should underpin every aspect of our work as Members of Parliament, councillors, Members of the European Parliament, members of community councils or any organisation that works for society.

One reason why the hon. Member for Ceredigion and Pembroke, North (Mr. Dafis) and I tabled today's motion is that there seems to be a lull in politics. We no longer talk about visions and values. Perhaps it is the immediacy of having microphones stuck under our noses and having to make comments to journalists.

Mr. Phil Gallie (Ayr)

The hon. Lady will be aware that only this week my right hon. Friends the Prime Minister and the Secretary of State for Social Security announced far-reaching changes to the pensions system, looking well into the next century. Does that not suggest that we take a long-term view rather than relying on short-term soundbites as she suggests?

Mrs. Ewing

I shall return to pensions later in my speech. The problem has been with us for many years and it is sad that such a major issue now seems to be part of a general election campaign rather than being addressed seriously by the House of Commons through a series of meetings in relevant Committees and elsewhere.

As I was saying, there seems to be a lull in politics whereby we deal with immediate rather than long-term issues. Lloyd-George described himself in "Dod's" as a Welsh nationalist and a radical, but he dropped that description in 1922. I wonder why we have dispensed with the idea of being radical and examining long-term issues. Did it start in the 1960s with the "I'm all right, Jack" philosophy, or was it with the "Sermon on the Mound", as we refer to it in Scotland, when Baroness Thatcher said, "There is no such thing as society"?

The Secretary of State for Scotland (Mr. Michael Forsyth)

What my right hon. and noble Friend said was that there was no such thing as society; society consisted of individuals who have to make their contribution. I am sure that the hon. Lady would not want to misrepresent my right hon. and noble Friend. In the spirit in which her speech is intended—to have a serious debate and move away from soundbite politics—and given that her party is quoting that Scotland has had a surplus since 1978 of £26 billion, will she confirm that, on the basis of her own figures and her party's calculations, which are of course misconceived, Scotland in fact had a deficit of £25 billion over the past four years and therefore received a contribution from England?

Mrs. Ewing

The right hon. Gentleman raises two points. First, society consists of individuals and the contribution that they make to it. Society has to take account of general perspectives and how we help all the people. Secondly, he wants to challenge the figures that his Government have produced. If he is really saying that Scotland is a poor nation, I wonder what he wants to do. Quite honestly, Scotland is not a poor nation. If it is, why do those sitting on the Treasury Bench want to hang on to it and not let us go? The money is to provide the kind of society that we want in Scotland.

Mr. Forsyth

On the specific point about the figure, I asked a simple question. Perhaps I put it in too complicated a manner. Will the hon. Lady confirm that, on the basis of her own party's figures, Scotland had a net contribution from England of £25 billion over the past four years—that there was a deficit of £25 billion? That is her party's figure; will she confirm it?

Mrs. Ewing

The right hon. Gentleman is talking about a United Kingdom deficit. The Government's statistics have shown that Scotland has been subsidising that UK deficit for a very substantial period of time. We want to change that and use the resources in Scotland. The right hon. Gentleman is trying once again to reduce the debate to the bandying around of statistics. All the analysis that has been undertaken by economists in Scotland and by the Government has shown that Scotland is a net contributor to the United Kingdom. The United Kingdom has a substantial deficit. If we could restore our assets to Scotland, we could achieve a great deal.

Underpinning all our actions are the philosophical arguments that I want to put to the House. I believe that it is important to have a philosophical debate about values and vision in the House of Commons before the election. We are all privileged and honoured to have been elected to serve in this place, but we need to see out of our own back windows into a world where fear, poverty and depression dominate the lives of citizens in our constituencies and countries, and indeed abroad. Today's headlines, to which the Secretary of State for Scotland was trying to draw attention, must not distract any of us from the vision and deeply held value that we are all Jock Tamson's bairns. Today's debate is about vision and values, and Plaid Cymru and the Scottish National party are proud to lead it.

Any of us in the House who read the mail from our constituents and listen sincerely to what people say in our weekly surgeries or in formal or informal meetings with organisations in our constituencies know that real concern is centred on vision and values. Let us take education, for example. In a social democratic society, we have always believed in Scotland that education was a means by which people from a poor background could rise through the meritocracy and project themselves into a better life. That is what my parents wanted for my brother and me and what everybody's parents want for their children. Yet education is under severe threat in Scotland at the moment.

We are told that every home should be a castle, but 75,000 Scots were homeless last year and there were 50,000 homeless people in Wales. Those figures are horrific. Imagine not having the right to go home after a day's work, walk into a warm home and say, "This is mine, this is my security and this is where I feel good." The statistics are appalling.

Mr. Cynog Dafis (Ceredigion and Pembroke, North)

I thank the hon. Lady for giving way on housing. I draw her attention to the amendment tabled to the Finance Bill which would reduce the level of VAT on energy-saving materials to 8 per cent. Does she agree that that would have a beneficial environmental effect, improve health and comfort and create jobs? Is she as disappointed as I am that, by all accounts, Labour Front Benchers will not support the amendment tomorrow night? Does she agree that that is significant? If the amendment is not supported, we will fail to make an important gain for the fuel poor, and to take the opportunity to inflict a defeat on the Government.

Mrs. Ewing

I am grateful to my hon. Friend for reminding me of that amendment. He may be interested to learn that when the Scottish Labour party held a conference this weekend in Inverness, it issued an executive statement stating: Because of the pressing need to renovate Scotland's housing stock, we will make housing repairs—including energy efficiency measures—one of our key priorities for our environment task force". It is strange that a measure that has been investigated by the all-party warm homes group, of which my hon. Friend is a member, and that would cost only £8 million, has been abandoned by the Labour party.

Sir Russell Johnston (Inverness, Nairn and Lochaber)

I am not trying to argue with the hon. Lady, but she said that there were 75,000 homeless in Scotland. I thought that the Shelter figure for last year was 31,000. Whom does her figure cover?

Mrs. Ewing

I gave the most recent figures given to me by Shelter in Scotland. Substantial debates on housing were initiated by my party in the Scottish Grand Committee and in Adjournment debates in the House. It is always difficult to assess exact numbers, but we have pinpointed the extent of the problem that we face. Our councils are hard pressed for cash. The measures in the Budget will make it even more difficult for our councils to address the problems, both by new build and by renovating existing stock.

Mr. Brian Wilson (Cunninghame, North)

I am sympathetic to the hon. Lady's arguments, but I wonder why we should be less concerned about people in England who are homeless than about those in Scotland and Wales. A proportionate number of people are homeless in England, many of whom are Scottish or Welsh in origin. Does that upset the primary nationalist argument that England is somehow a land flowing with milk and honey at Scotland's expense?

Mrs. Ewing

That is a flippant remark. If the hon. Gentleman reads the motion carefully, he will discover that we are discussing public responsibility for social and economic justice. I am speaking specifically as a Scottish Member of Parliament about Scottish issues—and some of my colleagues will speak as Welsh Members on Welsh issues—but I am deeply concerned about the problems faced by everyone in the United Kingdom and, indeed, all those further afield in the international community. That is why we have put the subject of social and economic justice back on to the political agenda in the run-up to the general election.

The hon. Member for Ayr (Mr. Gallie) mentioned the issue of health and care for the elderly. We await with interest the White Paper to be published later this week, but I wonder why we have had to wait so long for such a document to be produced.

When I worked in the administration of training social workers in the west of Scotland—an area that included the whole of Strathclyde and Dumfries and Galloway—there was always deep concern about care for the elderly, which was then called "the sleeping giant". Why have we suddenly started to discuss this problem on the eve of an election? It is cheap electioneering, rather than a serious attempt to address a situation that should have been dealt with years ago. The facilities exist in this House to allow us to have a considered review of the difficulties that we now face.

Mr. Gallie

Will the hon. Lady give way?

Mrs. Ewing

I know that the hon. Gentleman wants to intervene again, but I have promised that I would be brief. I have been generous in giving way to other hon. Members.

We must have principles in the run-up to the general election. The vast majority of people throughout the United Kingdom—irrespective of their country of origin or beliefs—dislike selfishness and greed. The motion aims to encourage a society where the contribution of the community is sought and valued, and where social injustice and inequity are eradicated. The constitutional change that we seek will benefit not only the nations of Scotland and Wales, but will act as a catalyst for a rethink and a rejection of vested interests, traditions and attitudes. We seek the removal of centralisation, and this has been one of the most centralising Parliaments in the EU—and, indeed, throughout western civilisation.

Eurosceptics talk about a democratic deficit between Europe and the United Kingdom, but they seem to be blindly ignorant and unaware of the democratic deficit between this place and the nations of Scotland and Wales, as well as the regions of England. We have to face up to new challenges, and we should not simply bandy around figures or cheap sound bites and slogans at the election. The new challenges involve the EU, and raise questions. Where does it go? Will it be confederal? Will it be federal? What decisions will be taken? How many countries will join us? The United Nations is as representative an organisation as we would want at a time when we face the crisis in Albania, and when we have yet to resolve the problems in Bosnia. There is a plethora of international organisations—both voluntary and statutory—in which we should be involved and in which we must take a more long-term view. We should represent citizens at home and abroad and we must say to them that we have visions and values.

I still believe that politics is an honest profession. I can only reiterate that in my 15 years as a Member of Parliament, I have gained a great deal of respect for those men and women who give so much to try to resolve people's problems. The SNP and Plaid Cymru are today challenging the failure of the two major parties and of this institution. The two main parties are political clones—although their Back Benchers are not—and are in a mood of retrenchment rather than reform. Nothing is likely to change after the election, whichever party is in government.

Politics is at a crossroads. The public are cynical, and I defy any hon. Member to say other than that. What are we to do? Do we keep on in the same direction, with the same political and social philosophies of the two main Unionist parties? On the other hand, should we tell the public that there is now an opportunity for a change of direction, as signposted in the motion that we have tabled today? We want social and economic justice to be at the heart of the coming election campaign, not just because it is what we believe in but because it is a cause dear to all the peoples of the United Kingdom.

3.59 pm
The Secretary of State for Scotland (Mr. Michael Forsyth)

I congratulate the hon. Member for Moray (Mrs. Ewing) on securing a debate on this important topic. I am not sure which the Labour party in Scotland is more afraid of: the Scottish National party, or a debate on social and economic justice. I never thought to see such an appalling turn-out of Scottish Labour Members for a debate on these issues; we are reduced to one spin doctor posing as a Labour Back Bencher.

Public responsibility in the SNP sense means more state interference, in the form of public ownership, for instance. That used to be a widely shared view among Labour Members. Those of us who, not so many years ago, proclaimed that only the market could generate wealth were derided as outcasts—but where are the outcasts now? They appear to be on the Opposition Benches, doubtless bruised by their fraternal conference in Scotland last week.

The truth is that market forces reign unchallenged around the world. More and more people in more and more political parties understand the importance of the market as a means of creating the wealth to ensure prosperity and social and economic justice. Indeed, Scottish Labour Members seem to have bowed rather spectacularly to their masters in Islington; the party elections were the final pogrom against the old left. Today, socialism appears to be the creed that dare not speak its name. New Labour seems to have new priorities, forged in the harsh environment of the Islington cocktail party—more socialite than socialist.

The guttering flame of socialism, however, still burns bright in Scotland. The Scottish nationalists appear to be the last remaining socialist party in Britain: the most left-wing party in Europe. That is what makes a mockery of their prattle about social justice. Dispensing social justice means having the resources, and the SNP's programme is a blueprint for the impoverishment of Scotland—a one-way ticket to the third world.

SNP Members want to take Scotland out of the United Kingdom, where they apparently feel stifled among a population of 55 million, and into a federalist Europe of, eventually, 500 million. They have, of course, no guarantee of getting into Europe at all. They have no admission ticket; and the price of admission would be entry on the most integrationist of terms.

The SNP, like the Labour party, would sign up to the social chapter and the minimum wage, and in so doing would condemn hundreds of thousands of Scots to the dole queue. Unemployment in Germany in the past two months rose by 500,000; unemployment in France and Spain showed the same trend. That shows where these policies lead—not to social justice. They may lead to better conditions for those in work—conditions governed by legislation—but that comes at the expense of other people's jobs, and long-term job security.

Sir Russell Johnston

The right hon. Gentleman has referred to German unemployment. How does he think this country would have managed if it had had to absorb a country of 17 million people with a rotten economic system?

Mr. Forsyth

I shall treat that as the hon. Gentleman's argument against economic and monetary union.

The Scottish nationalists would enter their brave new world with a deficit of £8.2 billion. Even if they got all the oil and gas revenues, which they will not, that would shrink to a mere £6.4 billion.

The hon. Member for Banff and Buchan (Mr. Salmond) produced some fantasy figures, claiming that Scotland has a budget surplus of £400 million. He did it by applying 1994 Treasury figures to 1996, assuming that 90 per cent. of North sea oil revenues would accrue to Scotland, and rounding up Scottish income tax receipts to inflate them by a mere £60 million—15 per cent. of the alleged surplus.

There are 68 Scottish National party spending commitments, including extravagances such as the renationalisation of Railtrack which were not costed in its programme, which promises a 20 per cent. increase in public spending, with no increases in taxation.

Mr. Alex Salmond (Banff and Buchan)

Will the Secretary of State give way?

Mr. Forsyth

In a moment: I want to finish with the hon. Gentleman first.

The hon. Gentleman then got more ambitious, did a paste-up job of Treasury answers to disparate parliamentary questions, and magicked out of the air a Scottish cumulative surplus of £26.7 billion since 1978. That figure keeps appearing in letters in The Scotsman and elsewhere. I know that our policies in Scotland have been brilliantly successful, but the figures are a mirage. The calculations assume that Scotland's share of United Kingdom general Government borrowing requirement was constant at 17.9 per cent. throughout the period, but it was not: in 1991, it was 54 per cent.

As the hon. Member for Moray confirmed by her silence, and as the hon. Member for Banff and Buchan can confirm now, over the past four years—using the SNP's own assumptions, which are, of course, crackpot—Scotland had a cumulative deficit of £25 billion.

Mr. Salmond

The Secretary of State is wrong about the figures in several ways. They come from an answer from the Chief Secretary to the Treasury, not from the Scottish National party. Without any argument, the United Kingdom general Government deficit over the past five years is £176 billion, which has doubled the national debt. Does the Secretary of State therefore conclude that the UK is non-viable?

This debate is about public responsibility, and we read in the press over the weekend that the Scottish Office had a copy of the draft report on slaughterhouse hygiene that was not passed on to Professor Hugh Pennington. Does the Secretary of State think that his Department had a public responsibility to pass that vital information on to the professor whom he appointed to study the issue of E. coli?

Mr. Forsyth

The report has been passed on, as the hon. Gentleman knows.

It is significant that, for weeks on end, the hon. Gentleman has been going around saying that Scotland is subsidising England to the tune of more than £26 billion. I have now asked the hon. Gentleman, his party's leader, whether the SNP's bogus calculations show that England has been subsidising Scotland for the past four years to the tune of £25 billion. I do not accept his figures for a moment; they are his own figures, and he has refused to confirm the position.

Mr. Salmond

Will the Secretary of State give way?

Mr. Forsyth

Only if the hon. Gentleman deals with the specific point.

Mr. Salmond

rose—

Mr. Forsyth

The hon. Gentleman clearly does not intend to deal with the specific point, so I will not give way to him.

Mr. Salmond

rose—

Mr. Forsyth

I will give way to the hon. Gentleman if he will show that he is prepared to deal with the specific point.

Mr. Salmond

The Secretary of State should know that he cannot set conditions on giving way.

In the past five years, the United Kingdom had a general Government deficit of £176 billion, so it is hardly surprising that Scotland, as part of the United Kingdom, was in deficit over that period; it is perhaps more interesting that, if we apply the Secretary of State's and the Scottish Office's calculations for the next five years, the Scottish subsidy to London becomes £12.5 billion. Does he accept that calculation, based on the Treasury answer of 30 January?

Mr. Forsyth

All I can say is that I am glad that I am not the hon. Gentleman's bank manager. He has been travelling the length and breadth of Scotland saying that England has been subsidised by Scotland, but he has made a clear admission this afternoon that, for the past four years, England has, on his calculations—which I do not accept for a moment—provided £25 billion for Scotland.

If the SNP were honest, and said, "Tighten your belts to the last notch and accept a massive slump in living standards, for that is the price of separatism," it would find few takers, but it would earn respect for its integrity, which it certainly does not deserve on its performance this afternoon.

Mr. Rod Richards (Clwyd, North-West)

My right hon. Friend has struck at the very heart of the nationalists' argument. Is he aware that, in Wales in 1994–95, the last year for which figures are available, the fiscal deficit was £5.7 billion, and that the total tax take from all sources was £9.9 billion, which means that taxes right across the board in Wales would have to be raised by about 57 per cent. merely to maintain the current level of public services?

Mr. Forsyth

My hon. Friend is right. What is offensive about nationalists in both Scotland and Wales is that they prate about social justice when their programme entails national bankruptcy. The SNP's only ideological allies in Europe are in the south of Albania. Further afield, there are the encouraging examples of socialist North Korea and Cuba. There can be no social justice without wealth creation

At its 1995 conference, the SNP voted to renationalise the public utilities. Is that still its policy? It is committed to renationalising Railtrack and similarly destroying Scotland's bus services. It would lose our seat at the top table everywhere: NATO, the G7, the UN Security Council. Our voice would be unheard in the councils of the world. How would that help the disadvantaged?

The SNP would abolish the assisted places scheme—a kick in the teeth to every lad and lass o'pairts in Scotland. [Interruption] The groans come from an Opposition who are led by a man who enjoyed a public school education, and who would kick the ladder away from families with incomes of less than £9,000 a year. That is new Labour: "Don't do as I do—just take the message."

Only one thing can strike down poverty and bring social justice to every Scot: the sound Conservative free enterprise policies of privatisation, deregulation and devolution of decision-making to families and individuals. Opposition Members did not want Scots to buy their council houses or even to decide what colour to paint their front doors or to make any other decision. Now that Labour in Scotland is being led by the nose and forced by its Islington ringmaster to go through the capitalist hoop, the last unreconstructed socialists in Scotland are the Scottish nationalists.

Mr. Dafis

We can assume that the Secretary of State for Wales will pursue the same line of reasoning on Wales, with which I shall deal later. Does he think that the voice of Ireland, a country similar in size to Scotland and Wales, is unheard in the councils of the world? Would Scotland really suffer the deficiency that he described?

Mr. Forsyth

The hon. Gentleman should examine what is happening in Ireland. It has far higher unemployment, because it has embraced the social chapter. He may have read the recent article in the Financial Times about the Irish business community complaining about how they lose inward investment because of the burden of the social chapter. The difference between us and Ireland is that we are a net contributor to the Community; Ireland is dependent on subsidy from the Community. That is how successful the policies advocated by the nationalists have been in creating prosperity in Ireland.

If the hon. Member for Moray wanted a serious debate on what is being achieved in dealing with our social and economic problems, she should have examined what has been achieved in Scotland by the Government's policies. Some £7.7 billion of investment has been attracted to Scotland since 1981, with the expected creation or safeguarding of 130,000 jobs. That investment has come because we rejected the policies of Opposition Members, who have had to come round to supporting policies that they had vehemently opposed.

The percentage of households in owner-occupation has risen to almost 60 per cent., compared with 35 per cent. in 1979. That huge revolution in giving people a stake in the community is matched by the proposals of my right hon. Friend the Secretary of State for Social Security for a new deal for pensioners. Once again, the Opposition parties suck their teeth and oppose anything that transfers real power to individuals and real ownership to the people.

The proportion of school leavers with no Scottish certificate of education qualifications fell from 31 per cent. in 1980 to less than 8 per cent. in 1995. The proportion of pupils staying on for the fifth year at school has nearly doubled. The number of full-time students in higher education has risen by more than 90 per cent. since 1980. The crime clear-up rate has risen by one quarter from 30 per cent. in 1978 to 39 per cent. in 1995. Recorded crime has fallen by 15 per cent. since 1991. Average full-time earnings have increased by nearly one third in real terms since 1979.

Where has the hon. Member for Moray been? All that has been achieved in Scotland by a Conservative Government, who have pursued the right policies for Britain.

We have achieved those results because of our commitment to three principles. First, we are committed to economic and fiscal policies that create the environment for business to succeed—an environment of low inflation and low taxes. The United Kingdom is currently reaping the benefits of that policy stance as it approaches its sixth year of sustained growth. It is enjoying the strongest economic recovery of any major European country, yet all we hear from people who describe themselves as Scottish nationalists is prattle about Ireland. Why do they not start singing the praises of Scotland instead of running their country down?

Mr. Andrew Welsh (Angus, East)

My hon. Friend the Member for Moray (Mrs. Ewing) asked for this to be a debate about the principles, vision and values that should be directing our society. Instead, all that the right hon. Gentleman has produced are selective statistics that are designed, first, to rubbish his opponents and, secondly, to put the best possible gloss on his own opinion. That is why people are turning off politics. If the Minister is so clever and is running Scotland so well, why has his party been totally rejected? The Conservatives have been wiped out from local councils and from Europe. They are now about to meet the wrath of the electorate.

Mr. Forsyth

We shall see.

Mr. Gallie

On a point of order, Madam Speaker. I have read the Opposition motion on the Order Paper. It refers not to principles but to poverty and the means of addressing it. As far as I am aware, that is precisely what my right hon. Friend is doing.

Madam Speaker

That is not a point of order; it is a matter of argument. Let us continue the argument.

Mr. Forsyth

In fairness to the hon. Member for Moray, I think that the record will show that she said that parties must have principles in the run-up to a general election. That is the difference between us and the opposition parties: we have principles that we have applied and stuck to all the time that we have been in power.

Our second principle, which has been responsible for the transformation of our country, is that we have ensured that Scotland's distinctive priorities and needs are fully taken into account by the Government as a whole. The post of Secretary of State for Scotland would be lost as a result of the proposals for devolution from the hon. Member for Hamilton (Mr. Robertson).

Mr. George Robertson (Hamilton)

No, it would not.

Mr. Forsyth

What would happen if there was a Tory Government at Westminster and a Labour Administration in the Scottish Parliament in Edinburgh? Would the Labour leader come and sit in a Tory Cabinet? Of course not. He will be a message laddie, which is no doubt why the hon. Member for Hamilton is being groomed for that role. My voice in Cabinet ensures that the Scottish dimension is never overlooked in the policies of the United Kingdom Government, and that, wherever appropriate, a distinctively Scottish approach, which reflects Scottish circumstances, is taken.

The third principle to which we have been committed is to ensure that, wherever possible, we have moved government closer to the people. Our consistent approach has been to devolve power downwards from centralised bureaucracies to local consumers and the community. [Interruption]

I note that the hon. Member for Monklands, East (Mrs. Liddell), who has earned a reputation in Scotland as the voucher snatcher, is laughing. She cannot abide the idea of parents being able to choose the nursery education for their families. She cannot stand that. She would rather have a bureaucracy telling people who can and cannot have a place, and one which patronised people by telling them what it thinks is good for them. That is the difference between us.

Take, for example, the reforms that we have introduced into the health service to make it more effective. The clear distinction that we have made between the purchase of health services on behalf of the population in a given area and those organisations that provide those services has led to greater clarity about the respective roles and responsibilities. [Interruption] I note that the hon. Member for Cumbernauld and Kilsyth (Mr. Hogg) is trying to find out who is here from the Labour party to speak up for economic and social justice.

The benefits of our reforms, which apparently the Labour party now accepts, including the separation of the purchaser and provider roles—remember how the Opposition used to oppose that—are seen in the increased willingness of the national health service trusts to be innovative and to develop new ideas to provide a better service to patients. Those benefits are also reflected in the imaginative way in which the health boards are able to look more strategically at the health service that their population really needs.

A key feature of our reforms is the emphasis on the primary care sector, which is closest to patients on a day-to-day basis and which is obviously in the best position to identify worthwhile improvements that patients want. GP fundholders now cover half the population. They have benefited patients by bringing down waiting times for in-patient treatment and increasing the range of services available locally in GP premises.

Taken together, those key changes allow the NHS to focus ever more clearly on the needs of the individual citizens whom they are there to serve. In that way, we ensure that change is driven by what people need. Our recent White Paper on the Scottish health service, "Ready for the Future", signals our intention to build on achievements so far to make the Scottish health service even more responsive to patients' needs. A more detailed agenda for action in primary care will be issued later this week.

We shall continue to ensure that services are accessible, and provided as close as possible to patients' homes. We shall ensure that decisions about the pattern of services are taken by those with the greatest awareness of patients' needs.

That is underpinned by our unequivocal commitment that the health service will continue to be free at the point of delivery, funded largely by general taxation—and, of course, funded for every year of the next Parliament, so that there is a real increase year by year. How sad that the Labour party, which claims to have been involved at the start of the health service, now finds itself muddled and unable to give the same commitment to the health service.

Not only will the hon. Member for Hamilton not make that commitment, but the Labour party—in opposition, not in government—is writing to NHS trusts in Scotland, telling them to sack health service employees. The Leader of the Opposition told his party that it must not be complacent, that it must take nothing for granted, but the hon. Member for Hamilton wrote to chief executives of NHS trusts in Scotland: I am writing in advance of the General Election to intimate what the approach of an incoming Labour Government would be towards NHS Trusts, especially in relation to the number operating in Scotland. He goes on at length and then comes to the main point of his letter: I would therefore like you to start immediate consultations with other Trusts with the overall objective of reducing the total number of Trusts in Scotland from 45 to 25. The elimination through the common sense merger of 20 NHS Trusts will in time free substantial funds for patient care and the National Health Service will be the stronger for it. There is only a maximum of nine weeks to the General Election and it is the constitutional convention"— I think that that is meant to be a joke— that the government machine does prepare contingency plans for a change of government. This notification therefore is perfectly in order and I hope it is also helpful in allowing you to plan ahead for a government with very different priorities to the present one. The hon. Gentleman's priorities are to sack staff in the NHS, centralise services, and merge hospital services as part of a hatchet job on the NHS to provide money for his chums in local government. That is Labour's agenda.

Mr. George Robertson

Our priority is patient care, not bureaucracy. By reducing the number of bureaucracies in Scotland, we can help the interests of patients.

I rose to the Dispatch Box to ask the Secretary of State a specific question: will he rule out any future privatisation in the health service along the lines that we saw in Stonehaven hospital? Will he rule out the possibility that a future Conservative Administration will include clinical services in bids, as they did at Stonehaven hospital?

Mr. Forsyth

My right hon. Friend the Secretary of State for Health has answered that question on a number of occasions.

The hon. Gentleman has not addressed the point that I put. He is writing to the chief executives of NHS trusts, telling them to sack staff in advance of Labour winning a general election. That is a piece of arrogance of enormous proportions, and we now know the hon. Gentleman's agenda for the health service. [Interruption] The hon. Gentleman says that it would save £30 million as a result of merging those NHS trusts. I have asked my officials to work out exactly how many people we would need to sack to save that sum—[Interruption]I am perfectly entitled to ask my officials to tell me how many people I would have to sack to save £30 million by merging NHS trusts.

The hon. Gentleman has made it his policy, so he can now give me the answer. Will he tell the House how many people, whom he dismisses as bureaucrats and administrators, would be sacked to achieve savings—on top of the savings that we are already making—of £30 million, net of redundancy costs? I am happy to give way to the hon. Gentleman. The hon. Gentleman either does not know, or will not say. I suspect that he will not say.

Mr. Robertson

A merger or amalgamation of national health service trusts in Scotland should be easily attainable. Some trusts are already talking about amalgamations, and the Secretary of State for Scotland goes on endlessly about local authorities stripping out levels of administration.

Why will the Secretary of State not answer the central question? The people of Scotland want to know before the general election whether his policy is to privatise clinical services. That was tried at Stonehaven, but no one has tried it in England yet. Will he rule out the privatisation of clinical services in the NHS?

Mr. Forsyth

The hon. Gentleman knows the answer, but I shall repeat it if he really wants to hear it again. We would not rule out any proposal from clinicians themselves.

Mr. Robertson

So clinical services could be privatised?

Mr. Forsyth

The hon. Gentleman knows perfectly well that, if clinicians brought forward a proposal, we would consider it, and would not rule it out in principle. We think that the health service should be driven by the demands and needs of those who are involved in the provision of front-line services.

The hon. Gentleman held a press conference, and with a great flourish announced that he would save £30 million by merging NHS trusts. He said that that is where the money for patient care would be found. Our White Paper put £40 million extra into the NHS. The hon. Gentleman knows that savings have been achieved. He cannot tell us how many jobs would be lost in the NHS under his proposals, because he does not want to say. He knows that, in order to save £30 million, he will have to cut into clinical services.

The hon. Gentleman dismisses administrators, and talks about posh reception areas. People who work in the front room of the health service take the details of distressed patients who come into hospital. Are they not part of the NHS team? Are those administrators to be swept away? Does he denounce as unimportant the people who look after patients' records? Where will the money be saved? Let us have the figures.

If the hon. Gentleman cannot give them now, perhaps he will give them in his speech, after he has received the information from those in Islington who tell him what to say these days. [Interruption] The hon. Gentleman is now getting worried about the time. It is time he answered some of these questions. We want to know in which parts of the health service people's jobs are on the line, thanks to his commitment to that policy.

In education, as in the health service, the Government have ensured that decisions are increasingly devolved to the people in schools who know what is required.

Sir Hector Monro (Dumfries)

We have been talking about unemployment in the health service as a result of Labour's policies. Could my right hon. Friend extract from the Scottish National party a figure for the number of jobs that would be lost at the Royal Air Force bases at Leuchars, Kinloss and Lossiemouth, and among personnel in the Royal Navy, the Scottish regiments and the defence industry were we to have Scottish independence? I am sure that the figure would be substantial.

Mr. Forsyth

My right hon. Friend is right. I am not sure what the hon. Member for Moray has to say on the subject, but I will happily give way to her if she wants to answer that question. She is also not prepared to say what the consequences of her policies would be, although she opened the debate by saying that we should have a proper discussion on these important issues.

Mrs. Ewing

rose—

Mr. Forsyth

I give way to the hon. Lady—it is like fishing.

Mrs. Ewing

I will not take any lectures from Conservative Members, given that the Government have amalgamated and destroyed some of our proud regiments in Scotland. They have reduced by 31 per cent. the number of personnel employed in the RAF.

We have made it perfectly clear that no bases will be closed. Such arguments are propounded by a desperate party. It is moral blackmail. The Government try to destroy people's confidence in their own ability to participate in the international community in all aspects of our life, including defence. We have made it clear in our defence policy document, which we have put in the public domain, that an independent Scotland would have no implications for the key elements of our defence forces. That is against a background in which the defence forces themselves, and international defence communications, are changing.

Mr. Forsyth

I do not want to be distracted too much, but I suggest that, if the hon. Lady gives that answer again, she should begin it with "Once upon a time".

Let me make another point about the consequences for Scotland's economic prosperity. [Interruption] The Labour party used to be concerned about such issues. It used to be concerned about jobs. It is this Government who have delivered prosperity to Scotland and created new opportunities for employment, thanks in part to the efforts of the enterprise network and Scottish Enterprise, which we established. Now a Scottish parliament is being proposed, with tartan-tax-raising powers that would destroy jobs and prosperity, and damage people's savings and their income from dividends and other sources.

Not content with damaging the business climate in Scotland and allowing business rates to be sent sky high by the irresponsible councils that their party runs in Glasgow and elsewhere—the same people who would be in a Scottish parliament—Opposition Members who are committed to a Scottish parliament want to destroy Scottish Enterprise and the local enterprise companies. They want to destroy the engine—the job creation machine—in Scotland.

We have that on the authority of a Glasgow councillor, no less—Councillor Jean McFadden, who produced a report from the John Wheatley centre. We are told that, under a Scottish Parliament, the functions of the LECs would be transferred to local authorities, and that the structure of the national enterprise bodies, Scottish Enterprise and Highlands and Islands Enterprise, would be reformed—in other words, crushed. As for the Scottish National party, we have confirmation from Mr. George Reid, who is described as the party's trade and industry spokesman, that the transfer of the LECs to local authorities would also be its policy.

Here we have a structure that has been successful in delivering jobs, but both those Opposition parties plan to wreck it in order to find the money to pay the £80 billion for their "pretendy parliament"—as I believe Billy Connolly called it— in Edinburgh.

That is in complete contrast to the Government. We will continue to support Scottish Enterprise and the local enterprise companies, because we support people who deliver. I am therefore pleased to announce further support for Scottish Enterprise and Highlands and Islands Enterprise in the current year. I shall be providing a further £5 million for Scottish Enterprise—

Mr. George Robertson

Where will you find the money?

Mr. Forsyth

We shall find it by not spending it all. Local government under Labour control has something to learn from that.

Among other things, that support will allow Scottish Enterprise to meet existing and planned inward investment pressures created by the recent successes of Locate in Scotland in attracting overseas companies to Scotland, particularly in relation to the Hyundai project, and will ensure that the priority that the Government attach to supporting Scotland's indigenous companies is continued.

The recent successes of Locate in Scotland are a significant boost for the Scottish economy, with the Hyundai project alone expected to bring an additional 2,000 direct jobs to Scotland. The extra resources will allow Scottish Enterprise to consolidate and build on that success, while protecting the equally important support currently given to Scotland's indigenous companies.

As the hon. Member for Moray represents a constituency in the highlands, I could not allow this occasion to pass without announcing that Highlands and Islands Enterprise will receive £525,000 in extra support in the current financial year. Those extra resources will enable it to spend on a number of key projects, and will help to relieve funding pressures in the coming year.

Mr. Salmond

Will the Secretary of State give way?

Mr. Forsyth

Wait for the good news.

The projects to benefit reflect the wide range of programmes through which Highlands and Islands Enterprise pursues its role to promote the economic and social development of the highlands and islands. This is good news for the highlands and islands: it will allow Highlands and Islands Enterprise to continue to play a full part in the regeneration of the highlands and islands economy, and to build on the success of its achievements to date.

Mr. Salmond

We should obviously have more of these debates, so that the sweetie bag can be brought out even more often.

Once upon a time—last Thursday night—the Scottish Office was briefing against the Ministry of Agriculture, to the effect that the slaughterhouse report had not been received by Scottish Office civil servants. Does the right hon. Gentleman accept that, as was reported in the newspapers at the weekend, the draft report was in the hands of the Scottish Office? Does he accept that he, as Secretary of State for Scotland, was responsible for the fact that the report was not passed on to Professor Hugh Pennington?

Mr. Forsyth

If the hon. Gentleman reads his newspapers a bit better, he will be aware of the facts. The original report that referred to E. coli was never given to any meeting attended by a Scottish Office official.

I ask the hon. Member for Moray: is it not embarrassing to have the hon. Gentleman intervening in the debate? She started off by saying that she wanted it to be on a serious subject and to move away from soundbite politics, and here we have the hon. Gentleman, as normal, trivialising the debate. I think we must conclude that he fears that the hon. Lady's performance has not quite delivered what he had hoped for in terms of the coverage tomorrow.

It is probably time for me to draw this speech to a conclusion. I realise that it is proving an uncomfortable experience for Opposition Members, who used to say that they were in favour of jobs, prosperity and investment in the health service, but who are now beached like whales, unable to deliver and doomed.

Scotland is flourishing, and there is every reason to believe that it will continue to flourish as long as the Union is maintained. The truth is that the Union has secured for all of us, whether English, Scottish, Welsh or Northern Irish, a long history of freedom, prosperity and stability under the Crown.

It is our historic partnership of nations that has forged a role throughout the globe. It is together that we have influenced affairs on the world stage. That is why the maintenance of the Union is fundamental to the prosperity and well-being of the people of Scotland. We have identified and will continue to seek ways to help Government to listen to the people of Scotland and to respond to their concerns and priorities in a way that does not threaten the United Kingdom. That is the best way forward for Scotland, and for all the people of the United Kingdom.

4.36 pm
Mr. Brian Wilson (Cunninghame, North)

It is a little unwise for the Secretary of State for Scotland to quote what Billy Connolly said about anything because, if he does that again, I might tell him what Billy Connolly says about him.

It was a bit tasteless for the Secretary of State to wax lyrical on the subject of national health service teams. Probably no hon. Member has done more personally to destroy the concept of teamwork in the NHS than the Secretary of State. Some of us are old enough to remember his private business life, much of which was devoted precisely to the business of breaking up teams in the NHS by denying the concept that all auxiliaries and non-medical staff in hospitals were part of a team, privatising, cutting their wages, and making their positions as insecure as possible—all for the private profit of Michael Forsyth Associates and its client companies. For the Secretary of State to arrive here a decade later and bleat about the role of teams in the NHS provokes the memories of what he built his dubious reputation on.

The Secretary of State referred to me as a spin doctor. That cannot possibly be true—I am more of a consultant, I think. However, if he wants to go down that road a little, I will give him a little lesson. This is from a spin consultant. If he wants to retain any credibility, he should not send out a special adviser one night to say that he is incandescent and to brief against another Minister and appear the next morning wide-eyed and innocent, claiming to have forgotten all about what was done in his name and at his instruction because, frankly, no one believes that sort of performance. He does not even have the virtue of subtlety to commend him. His performance last week did no good for Scotland and even less good for the office he holds. If he has anything to say against his colleague the Minister of Agriculture, Fisheries and Food, he should have the guts to say it out loud and not leave the Prime Minister in the ridiculous position of saying the next morning that the stories were ridiculous and absurd and that he could not imagine where they had come from—when everyone in the House knew that the stories came from only one man: the Secretary of State for Scotland.

I am grateful for the opportunity to make a short speech. I do not currently make many speeches for a simple reason: I have the nominal title of shadow Minister for election planning. As is all too conspicuous, there is no Minister for election planning, which may account for the Tories' current difficulties.

I shall take the quite unusual course of picking up some of the points that have been made in the debate. I come from a good Scottish education system in which I was taught that that is what debate is about; not about set speeches but about dealing with issues that have been raised.

I support the distinguished hon. Member for Inverness, Nairn and Lochaber (Sir R. Johnston). The hon. Gentleman intervened on the Minister to ask about employment in Germany, and was given a typically trite response. The Secretary of State seems to think that a debating point is a substitute for an argument. The hon. Gentleman's intervention was important. I travelled in east Germany at the time of the first democratic elections in the whole of Germany and saw the incredible industrial museums that employed 10,000 to 12,000 people. The only possible course on health and safety grounds alone was to close them and start again.

Germany has done an incredible job for the whole of Europe by taking on that task. It has encountered difficulties, largely as a result, and that has given rise to schadenfreude among Conservative Europhobes who have temporarily suppressed their prejudices to toe, not very successfully, the Cabinet line. That is a sad reaction. As the hon. Member for Inverness, Nairn and Lochaber said, imagine what state this country would have been in even with North sea oil and the proceeds of privatisation if it had had to do that. We are in a bad enough economic mess. What would it have been like if we had inherited a country of 17 million people with the incredible economic problems that east Germany presented to west Germany on reunification?

On a more micro level of debate, I should like to refer to the assisted places scheme. I shall start by registering a complaint. How many families in my constituency benefit from that scheme—if benefit it is? I am by no means convinced that sending kids to the environment of a private school provides any lifetime benefit for them, but that is a wider issue. I have tabled questions asking to be told, by constituency, how many children are funded under the assisted places scheme. The Scottish Office has refused to give me that information under the facade of the usual evasion that the information could be collected only at disproportionate expense. Yet every family that benefits must have an address and there are not so many of them that they cannot be easily listed and divided among 72 constituencies. The reason for the Scottish Office's not giving that information has nothing to do with the expense of collecting it. It does not want to give the information because it would reveal how few children from a constituency such as mine are catered for by the scheme.

Mr. Michael Forsyth

That is another scurrilous allegation from a rather nasty Member, if I may say so. It is quite wrong to suggest that the information is not being provided by the Scottish Office because it would not be politically expedient to do so. The cost of collecting the information—perhaps this is the answer that the hon. Gentleman has been given—would be beyond the established guidelines. However, if the hon. Gentleman wants the information to be collected I have no objection to that being done. I imagine that it will reveal that the city in the United Kingdom with the greatest number of assisted places and the greatest dependency on the assisted places scheme is Edinburgh. I said in my speech that that city had provided the Leader of the Opposition with his ladder up. What is the hon. Gentleman's objection to children from families with incomes of less than £9,500, as half of them are, being able to get the same opportunities as the Leader of the Opposition? Why does it matter which parliamentary constituency they live in?

Madam Deputy Speaker (Dame Janet Fookes)

Order. The same rules apply to the Front Bench as to other hon. Members. That was a rather long intervention.

Mr. Wilson

I am delighted to be called nasty by the Minister. Given his political creed, I would be distinctly worried if he did not describe me as nasty—I am opposed to everything that he stands for, dogmatically and philosophically. Nothing could be as juvenile as judging anybody by the school to which his parents sent him. [Interruption] I do not know which is the organ grinder and which is the monkey, but I should be pleased to hear from either the Secretary of State or his parliamentary private secretary. Neither wants to respond.

No one is judged by the school to which his parents sent him. There is no envy involved because, by and large, I believe that sending kids to private schools is not good for them. Even if I thought differently I would recognise that, in any society, priorities must be set. An interesting parliamentary reply last week showed that even in Scotland, where there is a legal maximum of 33 children in a primary school class, 74,000 Scottish children are in primary classes of more than 30. That shows that the resources have much work to do. I want to know how many children in my constituency are in the assisted places scheme because I want to be able to tell my constituents that one, two or three children benefit under the scheme but that, by an alternative use of the resources, 500, 600 or 700 children could benefit. That is a reasonable point for any hon. Member to make.

Mr. Forsyth

Will the hon. Gentleman give way?

Mr. Wilson

The last time the Minister tried to make four interventions in a speech by my right hon. Friend the Leader of the Opposition he made a complete fool of himself. I do not see why he should be anxious to do that again.

Mrs. Ewing

rose—

Mr. Wilson

I do not propose to take any more interventions.

The Minister said that we wanted to crush—I think that that was the word he used—Highlands and Islands Enterprise and Scottish Enterprise. Those two bodies would never have existed but for Labour Governments. The Highlands and Islands development board and the Scottish development agency were among the great creations of Labour Governments in the 1960s and 1970s.

I am reminded of the kind of stuff that the Minister comes out with. In his heyday in the 1980s he described the Women's Rural Institute as a Marxist front organisation. In the 1960s, when Willy Ross was setting up the HIDB, Michael Noble, the shadow Secretary of State for Scotland at that time, described it as a Marxist conspiracy. There is a long tradition of that.

I assure the Secretary of State that, long after he has gone, the successors to the Highlands and Islands development board and Scottish Enterprise will be not only secure, but will once again be enhanced as agencies of economic and social change. The great feature of the HIDB was that, originally, it was not simply an economic organisation, but had a strong social remit which has been largely eroded by the Government's ideological changes.

The hon. Member for Moray (Mrs. Ewing) moved the motion with dignity. Its spirit is absolutely right. It is entirely proper, in the run-up to a general election campaign, that the agenda of poverty and homelessness and the conditions that afflict a substantial proportion of our constituents should be given an airing, and not brushed aside in the general melée of agendas that are set either by the media or by politicians.

In the past couple of weeks, I have had a couple of all-party meetings in my constituency. They were organised by Church organisations which said that the issues that they want to put across form what might broadly be called the humane and social agenda. The issues include homelessness and poverty, not just in our country, but throughout the world. It is entirely right that, in the period before a general election, those subjects should receive an airing.

Sometimes, we are all too clever. If there is a problem of homelessness in any society, it is very likely that its very simple cause is that there are not enough houses. That is the case in this society. We have a Government who are driven by ideology—with the Secretary of State playing his full role—and have refused to allow local authorities to provide houses for rent. That has been the primary cause of homelessness, including hidden homelessness, in any community—and certainly in those that I represent.

I believe that a national minimum wage will be one of the major social innovations of the post-war years. It will be a landmark reform, which the Tories will despise and oppose because they cannot bear the idea of the introduction of a minimum standard of decency into any sphere of a society that they want to be driven by the market. However, once a national minimum wage is established as a concept, they will never dare overturn it. Until the day the national health service was created, the Tories bitterly opposed it, because they opposed the idea of people having access to the best medical care irrespective of their ability to pay for it. Once it was in place, they could chip away at its edges, erode it and remove bits of it, but they never dared to attack its core. A national minimum wage will be in that category of great social reforms.

Mr. Gallie

The hon. Gentleman's comments on a minimum wage may well be true. A minimum wage exists in other countries. In France, for example, it is set at the equivalent of about £2. Would he like to tell the House at what level he thinks a national minimum wage would be set on its introduction here?

Mr. Wilson

No, I would not. The level at which a national minimum wage is set will be determined by a commission, which will consider the views of both employer and employee bodies. I understand why the hon. Gentleman takes a very short-term view of politics. I take a slightly longer-term view, however, and believe that it is far more important to establish the principle of a national minimum wage. That is what will be done in the next Parliament. Once the principle is established, it will never be abolished.

Part of the tragedy, and the indictment of the events of recent years, is that there is almost no level at which a national minimum wage could be set which would not benefit a substantial number of people. In this supposedly wealthy society and successful economy, hundreds of thousands of people are earning below £2 an hour, and millions of people are earning below £3 an hour. In his last days in the House, the hon. Member for Ayr (Mr. Gallie) would do well to support the concept of a national minimum wage.

The motion is ostensibly unexceptional, although I have not conducted a close textual analysis of it. It states that the House rejects the Government's proposed spending plans for the next two years. I did not hear the hon. Member for Moray say whether that means that she rejects the Government's global figures or only their detailed breakdown of them. I hope that she does not really believe that, after 18 years of Tory government, every penny—or even every billion pounds—of public expenditure has been so closely scrutinised and intelligently applied that there is not an awful lot of room to reapply priorities so that we can provide very different forms of public expenditure.

Mrs. Ewing

What would the hon. Gentleman cut?

Mr. Wilson

It would have been more helpful if the parties that tabled the motion had made some suggestions on that subject. It is extraordinary that, since the previous general election, expenditure on social security, for example, has increased annually by £15 billion. That is astonishing. It would also be astonishing if an incoming Government could not produce a great deal of intelligent thought on how that money could be better spent, to create a successful economy rather than subsidised failure. Expenditure on subsidising low pay—for which the taxpayer pays—instead of providing a national minimum wage is one very obvious example of that.

The thrust of the comments made by the hon. Member for Moray is right. I also do not think that anyone needs to go further in politics, when looking for a big idea, than the eradication of poverty. The real debate is about the means of attaining that goal, about the speed at which it is possible to move in achieving it and about the priority that it should receive. Despite all the brickbats that are tossed and all the attempts to sap the morale of those looking forward with hope and optimism to the advent of a Labour Government, I have not the slightest doubt that, in the future, as in the past, eradicating poverty will be the priority of a Labour Government.

Perhaps the hon. Member for Moray should remember that Labour Governments delivered all the desirable features in society—such as the education system, which provided opportunity to her and me; and the national health service, which entitled us both to high-quality health care, to which we insist our children should be entitled—and the broad range of social reforms that have made the United Kingdom a civilised place in which to live. I have never heard much credit given to those Governments by the Scottish National party, but that goal is our hope and our inspiration—in which the public are now sharing. They look forward to the return of a Labour Government, to address the issues raised in today's motion.

4.56 pm
Mr. Bill Walker (North Tayside)

The hon. Member for Cunninghame, North (Mr. Wilson) seems to have made a reputation in politics for attacking organisations and people who are involved with organisations that assist companies. It was therefore interesting to hear him praise the Highlands and Islands development board and Highlands and Islands Enterprise. He did so without declaring an interest: the fact that he and his company have been substantial beneficiaries of those organisations. It seems that he has one rule for others and another for himself. If he wants to speak in the House about standards and values, I suggest that he should first look in the mirror.

Mr. Wilson

The company with which I am very proud to be involved is probably the only one in the highlands and islands which, before grant and loan disclosure existed, made a specific request that every penny given to the company—it was not very much—should be made public. That is the openness that we have practised ourselves and have always expected from others. Having made that point, I hope that the hon. Gentleman will now tell us how much he has received from his time with Stagecoach.

Mr. Walker

Nothing—absolutely nothing. The hon. Gentleman has picked on the wrong target. He should do his homework more carefully. I say again that, if he wants to be critical of other hon. Members, he should first look in the mirror. Those who live in glass houses should not chuck bricks.

Like the hon. Member for Moray (Mrs. Ewing), hon. Members care about the society in which we live. I do not think that any individual or party can claim sole concern for people's well-being—the only difference is that some of us see different routes for arriving at similar answers. The issue is whether the route one travels will or will not produce the answer.

I should also tell the hon. Member for Moray that I have always respected people in Scotland who say that they want independence and who are prepared and willing to pay the costs, whatever they are, for it. There will be costs, because no one yet knows what the debate will entail. All we currently know is that separation, in whatever form, can be very expensive if it is achieved in acrimonious circumstances. Also, independence in Europe is simply a slogan. It is nonsense. Jim Fairley, a well-respected nationalist in Tayside, has written and spoken at great length about it, and much more effectively than I.

If the hon. Member for Moray seriously believes that the Royal Air Force bases in Scotland would remain unchanged, she is not living in the real world. She has only to consider the aircraft on those bases to realise that the Tornado, Jaguar and Nimrod are very expensive and require massive support from the many people who work on the bases, in or out of uniform. Their number would change substantially if the types of aircraft were changed. Anyone who has any experience of military matters will tell the hon. Lady that. I do not believe that the Royal Marine base at, for example, Condor in Arbroath would remain in its current form, because it is part of the Royal Marine Brigade, which requires certain things that would not exist if the base were operating alone.

The SNP's policies, especially those relating to social and economic matters, belong, as my right hon. Friend the Secretary of State for Scotland clearly said, to the world of fairytales and make-believe. If Scotland and the UK are as bad as the hon. Lady claims, why are so many people from all over the world desperate to come and live here? If this is such an awful place, why do we face the ghastly problem of more people wanting to come here than we can possibly take? Of course, some people in the UK and Scotland have problems, but the vast majority have a quality of life of which our grandparents never dreamed. I have seen a dramatic change in my lifetime. I was one of six children living in a two-roomed house with my parents.

Of course there are problems—anyone who thinks that there are not does not hold surgeries—but it is interesting that a substantial number of the problems brought to Members' surgeries are really local authority matters, involving the failure of those authorities. Councillors are there to deal with them. The system that other hon. Members and I operate shows that, if one writes to the chief executive of a local authority, it is surprising how quickly one can unclog things that should have been unclogged without their having to be brought to the authority's notice.

I could use all my speech to comment on the SNP's military budget, which is a fairytale, but I shall deal with some matters that the SNP fails to address. How does it account for the fact that so much is missing from its budget? One of the problems with operating a budget, whether in government or in business, is that one has to state everything, or there will be a deficit at the end of the day.

The SNP wishes to remove standing charges for gas, electricity, telecommunications and other utilities and says that the cost will be met from the profits of the companies involved. The SNP has obviously never run a company if it thinks that such a change will not have an impact on profits. If we link this idea with Labour's utility tax, it is clear that profitable companies will quickly cease to be profitable. I recommend that the left-wing SNP recall the selective employment tax, which Labour introduced many years ago and which savaged employment levels and the profitability of businesses in the service sector.

The SNP wishes to abolish the assisted places scheme—so does Labour—but does not tell us how the youngsters currently in the scheme will be educated and how the cost of their education will be met. It wishes to abolish nursery vouchers—it will be a voucher snatcher—and transfer the provisions to local authorities. No mention is made of how the cost of changes to the administration will be met. The list is endless—I should like to ask questions about some 50 items in the SNP's budget, but I shall not.

This is an interesting debate, because it has given my right hon. Friend the Secretary of State for Scotland the opportunity to demolish the SNP's arguments. We can all wander around with our hearts on our sleeves—that is easy and costs nothing—but we have to consider how to implement policies and cost ideas.

The hon. Member for Cunninghame, North mentioned the massive increase in the social security budget. Had the Government not looked after people who had been adversely affected by the recession, they would have been condemned—and rightly so. The Government, however, quite properly dealt with matters, as any Government would be required to do.

Funnily enough, that brings me to the point about Germany made by the hon. Member for Inverness, Nairn and Lochaber (Sir R. Johnston). My right hon. Friend the Secretary of State gave him a pointed response about the single currency. I have recently been talking to representatives of business and business organisations and talking at seminars, conventions and annual general meetings. I put to them a question that I now put to the House: if one is running a company that is the leader in its field—that accurately describes the UK's position relative to the rest of Europe in that UK plc is outperforming all the other countries—would the directors link that company to others that are not doing nearly so well, or doing very badly, and leave to them all their company's financial policies? The directors said that of course they would not and that it would be crazy to do so. I pointed out that that is exactly what some people are suggested UK plc should do, because that is what joining a single currency would mean. It would mean giving control to those who are not doing as well as we are and allowing them to make judgments on economic and fiscal policy affecting this country.

Whatever the merits—if there are any—of a single currency in theory, in practice if one is doing well, one does not allow the decision making to be taken over by those who are doing worse. That is basic to the running of any organisation.

Sir Russell Johnston

The hon. Gentleman is skirting around my point. I said that it was unfair of the Secretary of State for Scotland—it is not unusual for him to be unfair—to compare our employment position with that of Germany, given that Germany had just managed to absorb into its economy 17 million people who are economically backward. I said that we could not have done that, and that is perfectly true. By the way, on the question of a single currency, perhaps the hon. Gentleman should ask Toyota what it thinks and take notice of the fact that inward investment in France is higher than that in Britain.

Mr. Walker

The hon. Gentleman should do his homework more carefully. Toyota has done a U-turn on the single currency; it now says the opposite of what it was saying and, given the UK's current performance, can see an advantage in its being outside the single currency. It is important to note that, during unification, the Germans miscalculated the basis on which the various currencies should be made one. They are now paying a terrible price and will continue to do so—chickens always come home to roost in relation to financial and fiscal policy.

As with a company's balance sheets, it may be possible to hide things for a year or even two but, over a period, the truth always emerges. The SNP wears its heart on its sleeve but, as my right hon. Friend the Secretary of State showed using the SNP's own figures, its budget reveals a massive deficit. That does not mean that Scotland could not be an economic entity on its own, if it was able to get somebody else to pick up the tabs, as southern Ireland has. Our money—United Kingdom taxpayers' money—has made southern Ireland what it is.

Mr. Gallie

Does my hon. Friend recall a meeting of the Scottish Grand Committee not long ago when the hon. Member for Moray (Mrs. Ewing) suggested that Scotland would have to subsidise the rest of Europe, unlike Ireland?

Mr. Walker

I do not believe any figures that come from the hon. Member for Moray or any other member of the Scottish National party. I would not want to be involved in any kind of merger on the figures that they produce, which do not stand up to close examination. Their figures are wishful thinking and fairytale economics.

One can address the problems of society only if one has a thriving economy in which employers can create jobs, producing goods and services for which the world will pay. Scotland and the United Kingdom have no option—we have to be a world trading nation. Just to stand still, we have to export more than one third of the goods and services that we produce. It is essential that we have an economic climate in which entrepreneurs—risk takers—can create jobs.

The problem for members of the left-wing Scottish National party is that they have not learnt the lesson of modern history, which is that their kind of socialism does not work. They cannot point to any country in which it brings home the goods. Despite our difficulties during the recession, the United Kingdom has come out of it better than anyone else and the world is looking to us.

I remind Opposition Members that the hours that we spent in Standing Committee changing trade union legislation helped to create today's enterprise economy. To throw all that away would be crazy, whether in an independent Scotland or in the United Kingdom. Jobs would vanish, as has happened in every other socialist country, and we would end up with money being printed and ever fewer people being employed.

The Scottish nationalists wear their hearts on their sleeves and tell people that they care, but they would not be able to sort out the problems because they would not have the necessary economic circumstances. After 18 years, the Conservative Government have produced a situation that we dreamed about in the post-war years. We have had growth for nearly six years and we have low inflation and low interest rates. We are the dynamo of Europe. We would be crazy to throw all that away with hearts-on-sleeves, fairytale, economic policies.

5.12 pm
Sir Russell Johnston (Inverness, Nairn and Lochaber)

I welcome the way in which the hon. Member for Moray (Mrs. Ewing) introduced the debate. I shall try to follow the path that she set. Social justice and the problem of poverty are proper subjects for serious debate, focusing attention not only on specific policies, but, as she tried to do, on the principles and attitudes that animate the main