David Mundell
MP for Dumfriesshire, Clydesdale and Tweeddale · Conservative · United Kingdom
“It is a pleasure to serve under your chairmanship, Dr Allin-Khan. I pay tribute to the hon. Member for Gillingham and Rainham (Naushabah Khan), not just for her thoughtful contribution but for securing this debate. It is so important that we take every opportunity we can to shine a light on this conflict.”
“Member for Oxford East (Anneliese Dodds). I am sure that the new Minister, whom I welcome to her post, will do likewise. Nevertheless, as I said, Sudan remains chronically under-reported.”
“I absolutely agree. I—and the Minister, I am sure—would like the Quad that was established to be more effective in relation to the involvement of the United States and neighbouring countries, with those neighbouring countries playing a positive role rather than supporting the protagonists in the conflict. As the right hon.”
“As UN Security Council penholder, the UK has a distinct moral and diplomatic duty to lead these negotiations at the upcoming UN General Assembly and press relentlessly for a humanitarian truce, a permanent ceasefire, robust civilian protection, civic engagement and unhindered aid access.”
“I recognise that the Minister and her colleagues in the Foreign, Commonwealth and Development Office must navigate delicate regional dynamics, but the Government must not shy away from forcefully challenging the covert actions of some of our Gulf allies in Sudan, both publicly and in private diplomacy.”
“We saw the horrific realities of the crisis just two weeks ago with the totally unacceptable attack on a World Food Programme convoy in Kordofan. Civilian personnel were injured and lifesaving aid was destroyed.”
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“This is not, Mr Deputy Speaker, the place to rehearse arguments that are rightly had in the Scottish Parliament, but it would be wrong for me not to ensure that the House is aware that my Scottish Conservative colleagues in the Scottish Parliament are concerned about the Scottish National party Government’s approach to the police and justice system in Scotland, particularly in relation to the ongoing issue of police funding and the ability of the police to do the job that is important to them. Indeed, my colleague Liam Kerr MSP has brought forward legislation in the Scottish Parliament which would give police officers even further protection. The events to which I have just referred, which have happened to police officers on at least 100 occasions, demonstrate that it is appropriate to have additional measures in place.”
“I do not think that we waited six years for this subordinate legislation to come through just so that the hon. Member for East Lothian (Kenny MacAskill), who in 2014 was the Justice Secretary in Scotland and brought forward that Act, could speak in this debate. I am sure he must be disappointed, given the passion that I know he has for this matter and for an effective criminal justice system, that it has taken quite so long for the legislation to be fully enacted and this order put in place, just as I am sure he was disappointed that it took until 2019 for the victim surcharge fund, which was also announced in 2014, to get up and running in Scotland.”
“That was very helpful for my constituents, many of whom cross the border regularly. The Minister and the shadow Secretary of State for Scotland have already alluded to the shocking report that in the first few weeks of the lockdown 100 officers had been attacked or the subject of abuse. As the deputy chief constable Fiona Taylor said, that is outrageous and disrespectful. Abuse and assault are simply not part of the job of police officers and can never be tolerated. I think that that is at the heart of the legislation in the Scottish Parliament and this subsequent order to ensure that we do not in any way accept that the abuse or assault of police officers is regarded as routine or tolerated. In the event of such behaviour they must be supported in every way.”
“From my experience, and from feedback I have received from constituents, I think that has been achieved. That is very important. He underpinned that by setting out three key roles for Police Scotland: ensuring that social distancing is enforced to reduce the mortality rate during the spread of the virus; ensuring that the relationship of trust between the public in Scotland and the police is maintained; and, of course, ensuring the welfare and safety of not just police officers but their families. I also commend the chief constable for his very reasoned approach. When there were some differences in the guidance between England and Scotland and we heard some unhelpful suggestions, from my point of view, that we should have border patrols, Iain Livingstone was clear that that would be a wholly inappropriate use of police resources.”
“There were many times when I had to put through orders on matters of substance with which I did not agree, but I did agree that the Scottish Parliament had made that decision, in terms of the devolution settlement, and therefore it was appropriate that the Westminster Parliament and the UK Government ensured that that legislation was fully enacted. I want to give my thanks and praise to the police in Scotland for the job they do more generally and what they have done specifically during the coronavirus crisis. I particularly commend the chief constable of Police Scotland, Iain Livingstone, for his calm, measured approach to these matters. He said right at the start that it was important that he continued on the basis of policing by consent.”
“Behind the scenes, officials in the UK Government and Scottish Government work closely together to ensure that these orders and the things that really matter to people in Scotland—the provision of a police service and a criminal justice system—go ahead in a way that relates to the whole of the United Kingdom. As the Minister said, this order ensures that, if people are in England or Wales, such orders still apply and the benefits system recognises that. It is very important, when we see the flare-ups that sometimes happen between politicians north and south of the border, that we understand that, in the day to day, the devolution settlement is working and has been tested through these systems.”
“Usually, section 104 orders and others that flow from the original Scotland Act are transacted on the Committee corridor and get very little attention, but, as the Minister said, they are in many ways the backbone of the devolution settlement and the relationship between the two Governments and Parliaments. It is very easy, particularly given some of the headlines and media reports that we have seen in recent weeks, to think that the devolution settlement is not working, but this order and all the others that go through Parliament are actually a manifestation of the fact that it is working.”
“May I add my congratulations to the hon. Member for Edinburgh South (Ian Murray) on his return to the role of shadow Secretary of State for Scotland after his sabbatical? One of the great disappointments to me in my time as Secretary of State was the announcement, following his departure from that role, and in the absence of a Front-Bench spokesman, that either the Leader of the Opposition himself or the shadow Chancellor would participate in Scottish questions. Perhaps not unsurprisingly, immediately before the first such occasion, a shadow Scottish Secretary was appointed. This process is important. It is unusual not just because we are participating in a virtual Chamber but because we are in the Chamber more generally.”
“The executive director of the World Food Programme recently told the Security Council that covid-19 would cause a famine “of biblical proportions”. This will not only cost lives in the immediate term, but—unless nutrition is considered as a central plank of the global covid-19 response—cause lifelong health problems for millions of young children. Will my right hon. Friend therefore commit to ensuring that DFID’s response to covid-19 has nutrition at its very core, to ensure that we do not leave this crisis and sleepwalk into another?”
“I am absolutely delighted, Mr Speaker, to be able to connect with you this week. I have finally escaped from the Zoom waiting room and, in so doing, I can pass on my congratulations to Carrie Symonds and the Prime Minister on the birth of their son. I have a large number of haulage companies in my constituency, and I am sure that the First Secretary will recognise that lorry drivers are key workers during this crisis, transporting goods across our United Kingdom. However, many have struggled to access hot food outwith their cabs, and even to access toilet and shower facilities, so can he ensure that we are doing all that we can to support lorry drivers as they carry out their important duties during this crisis?”
“I will not give a detailed outline of the issue, because it has a long history. I know that the Financial Secretary was able to meet the chairman of the trustees and the hon. Member for Airdrie and Shotts (Neil Gray), who has done so much to pursue the issue. I have a service station in my constituency that you may have used yourself, Madam Deputy Speaker. It is now called Annandale Water, but it was previously under the branding of Roadchef. Roadchef set up the first tax-exempt, all-employee share ownership scheme of its kind, but unfortunately the former chief executive of Roadchef plundered that trust, causing all sorts of difficulties, not least that it was not registered in—”
“I represent one of the largest rural constituencies in the UK, so I welcome the fact that LINK has made some announcements on how it might approach the issue. I also welcome the fact that NoteMachine, the second largest provider of cash machines—it does so on a charge basis—has indicated that it would go back to free charging if the significant change of a return to the previous interchange rate was put in place. I therefore urge the Chancellor and Treasury Ministers to actively consider making that change, which would make a real and significant difference to people’s ability to access cash machines and to do so on a free basis. The crisis has shown more than ever the need for people to be able to access cash. I will move on to the issue of the Roadchef employee benefits trust.”
“People need cash, often to get others to buy their weekly shop or to get them to do other tasks, or simply to have the reassurance of having cash at home in order to meet unforeseen circumstances. That is why this remains such an important issue. As I highlighted when I spoke previously, the average cash transaction is £10 or £20. When someone is paying £3 to get £10, that creates a huge distortion in the ability to have cash. It impacts on the most vulnerable in our communities, and that is why I welcomed the fact that the Chancellor has said that he will legislate to ensure access to cash, but that has to be on a fair basis. It has to be on the basis that there are not disproportionate charges and that cash is accessible across the whole of the United Kingdom, particularly in rural areas.”
“I receive a lot of emails from the banks telling me what a great job they are doing, but I receive even more emails from constituents about the bureaucracy and difficulty that the banks are putting in their way in respect of securing not just the loan guarantees, but wider loans. I wish to raise two specific points, one of which is access to cash. I raised that in my contribution to the Budget debate on 16 March, which seems like a lifetime ago. The second relates to the Roadchef employee benefits scheme, which the hon. Member for Glasgow Central (Alison Thewliss) mentioned and which is particularly relevant in my constituency. We are seeing during this crisis that access to cash is even more important than it would be in so-called “normal” times.”
“It is a real pleasure to be able to connect to you and to the House of Commons today, Madam Deputy Speaker, and to take part in the Second Reading debate on the Finance Bill. I wish to begin by echoing comments made by the Chair of the Treasury Committee in relation, first, to those who receive a significant part of their income through dividends. I believe that there must be the possibility for the furlough scheme to accommodate a calculation of income that is based on those dividend receipts—that is used for many other income calculations. The second point is that we need to ensure that the banks are playing their part.”
“I am coming to a close. The trust was not registered. The funds cannot currently be distributed on a tax-free basis. I hope that, either by an amendment to the Finance Bill or through the Financial Secretary’s good offices with HMRC, that issue can be satisfactorily resolved.”
“I was very pleased this evening when Nicola Sturgeon confirmed to me promptly that every penny of the likely £1.9 billion that the Scottish Government will receive as a result of today’s announcement will go directly to businesses and individuals. It is very important that we have that common approach across the United Kingdom from Governments, but it is also important that we have a common approach from banks. The Chancellor has referenced the banks in relation to his loan and grant schemes, but many businesses have existing loan arrangements with the banks. What confirmation does he have from the banks that they will not seek to change those arrangements or to take advantage of the situation where people may be able to get Government money to repay those loans?”
“I welcome the Chancellor’s promise in his statement to legislate to secure the long-term future of cash, but it is very important that the steps that he takes are the right ones.”
“There is a crisis in access to cash, and it affects large rural constituencies such as mine in particular, but also many other communities. Some of the most deprived communities in our country bear the hardest impact. I had not realised until relatively recently that the average withdrawal from a cash machine is around £10 or £20. A fee of up to £3 to take £10 out of a cash machine is a very significant mark-up. A report has indicated that about 8 million people in our country are not ready to cope with a cashless society. A cashless society may come; indeed, when I travel from my constituency to central London, I feel that central London is, in many ways, a cashless society—in which there are, ironically, hundreds of cash machines. We need to do something about this issue.”
“Of course, since 2007 there has been an SNP, or SNP minority, Scottish Government, but that investment has not been forthcoming. I use this occasion to plead for the needs of the A75 and A76. I am sure that there is somebody in the SNP who remembers those previous commitments. Obviously coronavirus is significantly affecting today’s debate, and rightly so, because it is the issue that most affects our constituents at the moment, but I want to highlight one other issue on which I wrote to the Chancellor ahead of the Budget, together with 15 Conservative colleagues, the Association of Convenience Stores and the British Retail Consortium: access to cash. It is a big issue; in a crisis, many people like to have some cash available, so that they have flexibility in how they approach difficult circumstances.”
“In my experience, they have not always welcomed, or even acknowledged, extra money—indeed, sometimes it was the wrong kind of money, even if they did acknowledge it. I hope that on this occasion, and in these circumstances, they will acknowledge the extra money. As I said, I am pleased with what the Scottish Government have had to say about spending on business support in relation to coronavirus, but I would also like the money that is coming forward to be spent on infrastructure. Back in the ’90s, before the Scottish National party was in power, and when it held the constituency of Galloway and Upper Nithsdale, as it then was, the A75 and A76 were described as the most important forgotten roads in Scotland that needed to be substantially upgraded.”
“I appeal directly to the Scottish Government on that issue, because the way that our business rates system in Scotland works for the hospitality industry, and particularly hotels, is still not right. As I indicated, there are lots of lessons to learn. I hope that there is still the institutional knowledge in the Scottish Parliament and the Scottish Government to learn lessons from 2001, and that the Government can take some of those lessons on board, particularly in relation to isolation, as I said. I welcome the Budget as a whole for Scotland, in particular the £640 million of additional funding for Scotland, which was £172 million more than the Scottish Government had anticipated. By any analysis, the Scottish Government got extra money.”
“For example, the Gretna Green Famous Blacksmiths shop in my constituency, one of the most visited tourist attractions in Scotland, has won numerous awards for its attempts to attract Chinese visitors. A large number of Chinese visitors go to that location, but not any more—there are none. Its business model has already been seriously disrupted by these events. It is a bigger business, not a small business, but it needs help and support too, if that sector of the economy is to survive after these events. Hotels in my constituency were already in difficulty; many, such as the Moffat House hotel, have closed. One local hotelier told me that they were facing a perfect storm of events, of which, at that stage, coronavirus was not one.”
“The underlying philosophy of all those institutions must be that we want to keep our businesses going and that we are not jobsworths who want the returns in on the exact date. That is why I welcome what the Chancellor said about VAT holidays and flexibility with Her Majesty’s Revenue and Customs. I am sure, however, that hon. Members on both sides of the House have experience of HMRC not being particularly flexible, so we need that to be followed through. That unity of purpose from government will be vital. As has already been said in an intervention, the hospitality and tourism industry is the most vulnerable in a constituency such as mine. Often, as I found out during the foot and mouth crisis, businesses that have done well and are planning for the future are the worst hit.”
“The other big players are the banks. From my perspective, the situation that we face will be easier to deal with because it affects the whole United Kingdom, so the banks that are based outwith the south of Scotland and that are being asked to support businesses understand what is happening on the ground. We need that unity of purpose from the banks. Hon. Members who have dealt with the banks know that they always say the right thing, but doing it is something else, especially when the computer says no. We need to make sure that they follow through on their commitments, and on the positive tone that the Chancellor set in the Budget. We need a uniformity of approach from the Government at all levels—the UK Government, the Scottish Government and local government.”
“I am sure those issues will be debated when we have more focused debates on coronavirus. The businesses most affected by those circumstances were the self-employed and contractors, so we need to give those groups the maximum possible support. The hospitality industry was also very badly affected. One lesson from that experience is that small businesses need grants not loans. I remember taking part in a demonstration—I know that that will surprise you, Mr Deputy Speaker—outside the offices of Scottish Enterprise Dumfries and Galloway with colleagues in small businesses to make just that point. Grants, not loans, were needed to see them through. Rates relief is to be welcomed and I welcome the package of measures the Scottish Government have announced, but it is capped and we need to look again at whether that is appropriate.”
“For me, the answer is very straightforward: the 2001 foot and mouth crisis, which affected my constituency deeply. I want to be very clear that I am not making any comparison between that disease and coronavirus. The comparison relates to the impact of an event of that scale on businesses and their continued prosperity, and on the wider community. There was also, as a report from Strathclyde University and others identified, the impact of isolation. During that period, very stringent measures were taken and many farmers had to be isolated on their own properties and could not leave. The report, two years later, made very clear the long-term consequences of isolation. We need to take those findings on board and think about them. We need to learn the lessons of such events, with measures that might come into place.”
“I am pleased to have the opportunity to speak in this debate. Harold Wilson said that a week was a long time in politics. During Brexit we found out that a week was even longer, but the Budget, only last Wednesday, seems a lifetime ago. Even when listening to the Chancellor, I still harboured hopes of a long-planned personal visit to New York this weekend, but for all the reasons we see around us that is simply not able to happen. Three weeks ago, I was in Rome for the Scotland-Italy rugby match. At that point, the talk was of difficulties in the north. No one envisaged that instead of the crowds in St Peter’s Square or outside the Colosseum there would be nobody. As a Member of Parliament, I am often asked about the most difficult issue and time I have had to deal with.”
“The consequences of these events—such as the foot and mouth crisis that afflicted much of the south of Scotland 20 years ago—go on for years. They do not just end when someone declares that the crisis is over. They go on for a long, long time for the businesses, individuals and communities that have been affected. We do not just pledge support to those individuals and communities today; we pledge it to see them all the way through the consequences. I think that that will mean revisiting some of what was announced in the Budget and some of what was announced by the Scottish Government, and if that is necessary, so be it.”
“I am pleased to see the Minister nodding; I hope that he will nod when I say that those steps should include reversing the arbitrary cuts to the LINK interchange rates paid by banks to fund the network; exempting free-to-use ATMs from business rates; and recognising that ATMs are the only infrastructure through which we can guarantee national access to cash. Of course, cashback at convenience stores and other places has a role to play, but it is very important that we have a sustainably funded network of cash machines throughout the whole country, given the many branch closures we have seen in our constituencies—particularly Royal Bank of Scotland branch closures in Scotland. I agree with the hon. Member for Ellesmere Port and Neston (Justin Madders).”
“This morning, I was pleased to hear Nicola Sturgeon say that she supported the UK Government’s approach, but of course the devolved health service, the police and the education service are different and different operational decisions will inevitably be made in Scotland. How can that be respected at the same time as ensuring that we have a common message across the UK?”
“The Secretary of State is already aware of how unhappy my constituents who use Lockerbie station are—after fare increases, they have seen an appalling level of service from TransPennine. TransPennine has now made certain commitments to improve the service; what can the Department do to ensure that it meets those commitments?”
“Does my right hon. Friend agree that the Budget debates that he has announced allow an opportunity to highlight that yesterday the Chancellor announced an additional £640 million for Scotland—far more than the Scottish Government anticipated—which, in addition to the £1.3 billion already announced, means an additional £2 billion bonus for Scotland? Does he also agree that there will now be opportunity to call the Scottish Government to account to introduce the same measures for Scottish businesses as will apply in the rest of the United Kingdom?”
“As a relatively new Back Bencher, I am now able to take part in the Commonwealth Parliamentary Association delegations for the first time, so I reiterate the Minister’s point about how worth while they are. They should be commended to Members across the House who are perhaps not so familiar with the Commonwealth Parliamentary Association. I recently had the opportunity to travel to Botswana, where we encountered a very enthusiastic parliamentary delegation. These bonds are part of the important underpinning of our Commonwealth.”
“T6. The Secretary of State knows that I am very excited about the prospects for Scotland to grow its exports. Scottish Development International does a good job, but it does not have, as it would concede, the global reach of her Department. So to ensure that Scottish businesses get the maximum support going forward to grow exports, will the Minister commit today to increase the Department’s presence on the ground in Scotland?”
“I welcome my right hon. Friend’s announcement on the days for debating the Budget. Ahead of the Budget, and following the question from the hon. Member for Blaenau Gwent (Nick Smith) on access to cash, will my right hon. Friend use his good offices to convey to the Chancellor the message that the Budget is in fact an opportunity, as identified by the Association of Convenience Stores, the Federation of Small Businesses and others, to secure the long-term future of access to cash? A recent report identified that 8 million people across the United Kingdom could not cope at this time with a cashless society, and many of them live in large rural constituencies such as mine.”
“It is important to put it on the record that not everyone in Scotland will welcome yesterday’s announcement, not least my constituents, who have more wind turbines—in sight or planned—than any other constituency in the United Kingdom. Given the ineffective planning system operated by the Scottish Government and their willingness to override local decision making, what reassurance can the Minister give my constituents that they will not to be overwhelmed by continuing wind farms?”
“I do not share the Scottish National party’s miserable analysis of the trade deal; I see great opportunities for Scotland from a deal. But there is a cloud on the horizon: the 25% duty currently applied to malt whisky. What confidence can the Secretary of State give us that at the end of this process there will be no duties on Scotch whisky of any kind in the United States and no duty on bourbon in the United Kingdom?”
“The child poverty payment is welcome, but does the Minister share my concerns that the vast number of welfare powers that the SNP Scottish Government argued for, which were transferred in the Scotland Act 2016, have not been taken forward? In fact, some of them are now delayed until 2024. Is welfare not just another victim of the Scottish Government’s obsession with the constitution, rather than focusing on the day job?”
“It is a real honour to be able to ask a question of such a senior member of the British establishment. [Laughter.]. Tempted as I am to ask him how much of this waste is Scotland’s waste and when we are going to get it back— [Laughter] —I prefer to ask him what the parliamentary estate is doing generally to reduce the waste of all types that is produced on the estate.”
“Friend the Member for Berwickshire, Roxburgh and Selkirk raised his concerns directly with the EU Trade Commissioner. Depressingly, they have not even replied, which suggests that the EU does not recognise the economic impact of those taxes on businesses in rural Scotland.”
“The US is Scotch whisky’s most valuable global market; more than £1 billion of Scotch whisky was exported there in 2018. The disconnect between the source of the dispute and the UK products affected by the tariffs is particularly galling. The US chose not to impose tariffs on imports from UK aircraft manufacturers, so Scotch whisky is bearing almost two thirds of the total tariff liabilities imposed on UK exports to the United States. Our cashmere and shortbread industries are feeling the pain every bit as much. As the Minister and my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) have highlighted, those industries have also been targeted and their imports to the US subject to a 25% tariff. Given the importance of cashmere to the borders, my hon.”
“The Prime Minister spoke to President Trump, as I requested in those exchanges, and many MPs lobbied US Ambassador Woody Johnson. Regrettably, the tariff imposition went ahead. I should be clear, however, that the US is legally entitled to impose the tariff because of the World Trade Organisation’s ruling on the long-running dispute between the EU and the US about aircraft manufacture. To cut a long story short, the WTO found that both Europe and America had given illegal subsidies to Airbus and Boeing. The WTO said that until the subsidies were repaid and their impact eliminated, each side was entitled to impose retaliatory tariffs on the other’s exports to encourage compliance. That may be legal, but it is a bitter blow to the Scotch whisky industry.”
“The Scotch whisky industry has led the way on that in its 150 years of exporting. Distillers large and small bestride the world and the brands have become some of the most recognised globally, as I saw for myself when promoting the industry in countries as diverse as Argentina, Mozambique and Japan, always with positive support from the Scotch Whisky Association and its members. This great Scottish and British export has been put under considerable pressure since the imposition by the United States last October of a 25% tariff on the import of all single malt Scotch whisky and Scotch whisky liqueurs. I asked an urgent question in Parliament ahead of the tariff’s imposition and during the debate that followed, along with other Scottish Members, I set out the industry’s concerns about its potential impact.”
“As an economic reality, Scotch whisky provides jobs and investment in rural communities, underpins a supply chain that extends across the UK, and has become central to Scotland’s tourism offer, attracting visitors to our shores from all over the world. As Secretary of State for Scotland, I spoke often of the whisky industry’s stand-out success. By the end of my tenure, I could recite the numbers in my sleep: £4.7 billion in exports to 180 countries globally, 40,000 jobs supported across the UK, 20% of UK food and drink exports, 41 bottles exported every second. Global Britain, which is being debated in the main Chamber right now, is surely about reinvesting in the UK on the world stage; championing rules-based trade; and demonstrating that the UK is open for business, outward-looking and confident in its trading prospects.”
“I beg to move, That this House has considered the effect of US tariffs on the Scotch whisky industry. It is a pleasure to serve under your chairmanship, Ms Buck. I am delighted that the Minister, my hon. Friend the Member for Moray (Douglas Ross), is responding to the debate, because he is the Member of Parliament with the most whisky distilleries in his constituency. He has been a powerful advocate for the industry since he was first elected. For some years, the Scotch whisky industry has enjoyed a renaissance. There is a romance about Scotch, a heritage that is unmatched, and a global reach that is unrivalled.”
“It is a far cry from the mid-1990s, when the US and the EU, together with Canada and Japan, agreed to remove all tariffs on imported brown spirits. That unleashed an increase of 270% in total Scotch exports to the US. That is impressive, but it is put in the shade by the 400% increase in US whiskey exports to the UK over the same 25-year period. Friendly competition has been good for both industries, for tax revenues and for consumers. It could not be clearer that the UK Government need to resolve the outstanding issues on UK subsidies to Airbus to ensure that the UK is fully compliant with international law in the WTO’s view. That is evidently key to ensuring the return to tariff-free trade in whisky across the Atlantic.”
“That’s our focus. We hope sense will prevail between the US and the UK and the EU to get these tariffs down.” It could get worse. Following a WTO ruling last December that the UK, among other European countries, was still in breach of WTO rules in its support for Airbus, the US Government proposed to increase existing tariffs and expand the coverage to include more products. As early as next week, we will know whether the tariffs on Scotch malt whisky or other Scottish products will rise or widen in their scope. Most troublingly, they could include blended Scotch whisky. Meanwhile, since June 2018, the EU has imposed a 25% tariff on US whiskeys in response to US tariffs on steel and aluminium. That is another long-standing dispute and another unrelated sector bearing the painful consequences of Governments’ failure to resolve disputes.”
“I thank the hon. Gentleman for his helpful intervention. I will come on to the initial feedback in relation to the impact of the tariffs. If we cannot resolve the issue in the short term, however, his suggestion has much to commend it. As the hon. Gentleman alluded to, it is the small businesses, the new distilleries, that will be worst-hit as a consequence of a dispute in an industry with which they have no connection. Large spirits companies have portfolios of products that make them less vulnerable to market changes, but as Diageo chief executive Ivan Menezes recognised today, it is “devastating” for the industry as a whole. He said: “It’s not a big impact on Diageo on the single malts into the US, however for the industry in Scotland, it’s devastating. It impacts small distillers, farmers and employees there. Thousands of jobs.”
“The right hon. Gentleman makes an excellent point. His constituency makes two excellent whiskies, Highland Park and Scapa. People involved in the distilleries have nothing to do with the steel and aluminium industry; they have nothing to do with competition in the aircraft industry. It is completely wrong that they should be drawn into what is not their dispute. That is why we must resolve the underlying disputes.”