Queen’s Speech — Debate (5th Day) (Continued)

Part of the debate – in the House of Lords at 8:50 pm on 11 June 2014.

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Photo of Lord McAvoy Lord McAvoy Opposition Whip (Lords), Shadow Spokesperson (Northern Ireland), Shadow Spokesperson (Scotland) 8:50, 11 June 2014

My Lords, I welcome the commitment in the gracious Speech that the Government will continue to,

“make the case for Scotland to remain a part of the United Kingdom”.

As we all know, in less than 100 days’ time Scots will vote in a referendum on independence. All Westminster parties are committed to reform of the devolution settlement. All are committed to reforming the union rather than destroying it. I would like to take this opportunity to once more express the negative consequences of a yes vote for Scots and for all inhabitants of the British Isles.

Unlike my noble friend Lord Parekh, who is not in his place, I do not regard pointing out financial consequences to Scottish people as frightening them or trying to intimidate them or boss them about. I echo the point made by my noble friend Lady Quin: outlining difficulties and consequences is the act of a friend, not of someone being threatening.

Arrangements for devolution are founded and based on the fundamental principle that the union is a collective partnership. Scottish independence would end a 300 year-old agreement of working together for the common good of all. In its stead it would erect unnecessary barriers to the prosperity and well-being of Scots and the inhabitants of the remainder of the United Kingdom.

It is not a question of whether Scotland could go it alone—of course it could—but should it? The answer is firmly no. Withdrawal from the union would diminish Scotland. It would be a signal of Scotland turning in on itself, at precisely the same time that co-operation and collaboration are becoming ever more important. To draw a dividing line between Gretna and Berwick would see Scotland drift away from its biggest market and lose significant economic clout.

At the moment there is completely free movement of people, goods and investment between the four nations of the United Kingdom. This movement is clearly to the benefit of all. It is unlikely that such a situation would continue were a border to be drawn on the map. Today one in five Scots is employed by companies based in England, Wales and Northern Ireland, and 70% of Scotland’s exports, accounting for around 35% of Scottish GDP, go to the rest of the United Kingdom.

The openness of economic and political union has benefited the Scottish economy. Independence would erect barriers that would threaten current and future prosperity. Already Standard Life, one of Scotland’s most successful companies, has announced that it is preparing contingency plans to move some of its operations to England in the event of a yes vote. Royal Bank of Scotland has expressed similar uncertainty about its place in an independent Scotland. Scotland’s largest employer, the nuclear base on the Clyde, employs more than 6,000 people. Under UK government plans, it will employ an additional 1,500 people by 2020. These existing and future jobs are dependent upon UK military contracts, which would vanish due to barriers erected by independence.

The Confederation of British Industry—not an organisation that I usually quote with approval—whose members employ 500,000 people in Scotland, has been damning of the vision proposed by the Scottish Government’s White Paper. It has warned that Scottish industry would face two lots of red tape and Scots higher borrowing costs, and that on jobs and growth there is a risk of “jeopardising” Scotland’s future success.

The key point, as my right honourable friend Gordon Brown has made a great point of indicating, is that the United Kingdom has been a “sharing union”, in which the wealth, in all senses of the term, has been shared. Independence would prevent a sharing of the resources that make the United Kingdom a social union as well.

Labour established a UK-wide welfare state, which has provided for common pensions across the UK. That social union has sought to deliver a decent standard of living for all. Social security and the allocation of resources on the basis of need are best provided for by the union. In this instance, I join with the Government in continuing to make the case for Scotland to remain part of the United Kingdom. Remaining part of the political, economic and social union which is the United Kingdom is the surest way to secure Scotland’s future prosperity and common living standards for all.