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5.32 pm

Mr. James Wallace (Orkney and Shetland): I agree with the hon. Member for Linlithgow (Mr. Dalyell), the doyen of the Scottish parliamentary group, on two matters. First, I want to congratulate the hon. Member for Aberdeen, South (Miss Begg) on a model maiden speech. She has clearly shown how quickly she has got the feel of the House and we look forward to the contribution that she will make in the coming months and years. She is right to say that hers is an unstable seat and, with the Liberal Democrats in second place, I am glad that she acknowledges that.

I also agree with the hon. Member for Linlithgow on the number of Scottish Members and the size of Scottish constituencies if we have a Scottish Parliament. We adopt the view taken by the Kilbrandon commission that there is a case for a reduction in the number of Scottish Members to about 58, 59 or 60. We cannot run away from that issue and, no doubt, there will be plenty of opportunities to debate that in the months ahead.

As the first Opposition Member from a Scottish or Welsh constituency to take part in the debate, I want to reflect on the contributions so far by the right hon. and learned Member for Folkestone and Hythe (Mr. Howard) and the right hon. Member for Devizes (Mr. Ancram). The right hon. and learned Member for Folkestone and Hythe seemed to learn nothing from the general election campaign. His speech seemed to be a retread of those I

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have heard on many occasions by the former right hon. Member for Stirling, Michael Forsyth--speeches which brought such distinguished success, or lack of it, to his party in the general election.

The right hon. Member for Devizes was today speaking from the Back Benches. I wonder whether that is because his right hon. and learned Friend the Member for Folkestone and Hythe was speaking from the Front Bench whereas on Friday his right hon. Friend the Member for Richmond, Yorks (Mr. Hague) was speaking from the Front Bench. Perhaps the right hon. Gentleman chooses whether to sit on the Front Bench or the Back Benches depending on which leadership candidate is in pole position on that day.

The right hon. Member for Devizes has been named as a potential shadow Secretary of State for Scotland. His speech lacked punch today and he was clearly making sure that he would not be selected for the post.

Although he is no longer in the Chamber, it is a pleasure to congratulate the Secretary of State for Scotland, the right hon. Member for Glasgow, Anniesland (Mr. Dewar), on his appointment. He has already indicated a co-operative and open approach, not least in getting on to the statute book the Scottish home rule Bill. His party, my party and a wide range of people in Scottish civic life have worked over seven or eight years to bring that project to fruition and I can assure him that, whatever our disagreements over the referendum, we will work co-operatively to bring that project to a successful conclusion.

The Secretary of State was complaining about Conservative Members talking about the cost of the referendum. He said that it will cost £5 million, less than one thirtieth of 1 per cent. of the entire Scottish Office budget. He said that they needed to lend a sense of perspective. My perspective is that it is £1 million more than the additional money that the Labour Government have found for investment in Scottish education in the coming year. They are spending more on the referendum than they are able to find to increase investment in Scottish education, which suggests that the concerns that we expressed about Scottish education during the election campaign will still be around when the referendum is long past.

A referendum did not form any part of the constitutional convention's proposals. At one stage it was considered and rejected, but it did not appear in the final scheme. Looking at the origins of why the Labour party became attached to the referendum, it was always our concern that it had the wobbles over tax. I am not claiming that it was over the principle that a Scottish Parliament should have tax-varying powers, because I have no doubt about the commitment to that principle by members of the constitutional convention. However, in the two and a half years leading up to the general election, the word "tax" seemed to make the Labour party appear like a rabbit caught in headlights. It was a word to which the focus groups reacted badly. On this matter the trumpet sounded an uncertain note.

The Labour party seemed to wobble in the face of the tax offensive by the former Secretary of State, Michael Forsyth, although it had no need to because we have seen the effectiveness of his tartan tax campaign. I suspect that, although Michael Forsyth was making no headway in Scotland, the Labour party strategists were alarmed that it

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might rock middle England. It was plausible that the carefully structured strategy of not frightening the voters of middle England by not talking at all about tax could have been undermined by Tory spokesmen saying, "Look north of the border. Their proposals for tax varying"--although you can bet your life that the Tories would have talked about tax raising--"are the real Labour party proposals." The Labour party had to neutralise that and out of that came the two-question referendum. It was a policy born not of principle but of expediency. Perhaps in its campaigning strategy, it was for the Labour party a right expedient.

The right hon. Member for Hamilton, South (Mr. Robertson) was quoted in Scotland on Sunday on 11 February 1996 as saying:


So clear that only months later it was changed.

The story did not stop there. It was not only that on 27 June the policy was changed to a referendum with two questions. By late August, the Labour party had added not only a second question but a second referendum. The guiding hand of the then Member for Glasgow, Govan, hand in hand with the defeated Labour candidate in Edinburgh, West, Ms Lesley Hinds, managed to persuade Scotland's Labour executive into a double-lock mechanism, whereby a second referendum would be called by the Scottish Parliament before the tax-varying powers were ever used. That was such a significant event in the development of the Labour party's policy on a referendum that the now Prime Minister was moved to say:


So mature, so sensible that it was jettisoned less than seven days later. He went on to say:


    "what we've actually got now is a policy that is completely firm, as it has been all the way through."

Just as former Tory Ministers shook in their shoes and looked over their shoulder when their position was described by Mrs. Thatcher as unassailable, so Ministers in the new Administration should watch out when their policy initiatives are described by the Prime Minister as mature and sensible.

As convention partners, the Liberal Democrats in no way feel bound by Labour's tactical change. We believe that the establishment of a Scottish Parliament within the United Kingdom represents--as the hon. Member for Aberdeen, South said--the settled will of the Scottish people, and that a referendum is unnecessary. The convention comprised not only the Labour party and the Liberal Democrats but trade unions and representatives of Churches, local government, ethnic groups, women's groups and Gaelic culture groups in Scotland. It produced a clear consensus, which in many respects makes us different from Wales, where over the years there has not been the same popular consent. As has been pointed out, in the 1979 referendum, the provisions of the Wales Act 1978 won the support of only 20.3 per cent. of Welsh voters.

The shadow Home Secretary said that support waned during the weeks leading up to the referendum in 1979. One of the reasons for that was perhaps that Conservatives in Scotland were told by no less an authority than Lord

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Home that if they voted against the provisions of the Scotland Act 1978, they would get something better. He said that a Scottish Parliament without taxation powers would be a danger to the Union. It is important when one quotes history not to quote it selectively.

In Scotland, we could readily concur with the proposition put by a senior Labour source in The Scotsman on 25 April last year that


Indeed, 65 out of Scotland's 72 Members of Parliament--I am not sure if one should include the hon. Member for Linlithgow, but 66 if one does--have endorsed the convention scheme. Even allowing, as the Secretary of State said, for the liberal on the corner of the road in Anniesland--I do not think that there are that many in Anniesland, to be honest--who voted Liberal Democrat because he did not like the Conservatives, and even allowing for those who must have voted for us for other good and valid reasons, 65 out of 72 Members of Parliament represents a considerable mandate.

It is also important to remember that only 21 per cent. of the electorate voted for independence. Independence was a clear option. People may have voted Labour, Liberal Democrat or Conservative for a number of reasons--

Mr. Salmond: It was 22 per cent.

Mr. Wallace: Twenty-two per cent. voted for a single-issue party. I do not mean that in a demeaning way. The Scottish National party has a range of other policies, some of which we agree with, but it is a single-issue party. The hon. Member for Banff and Buchan (Mr. Salmond) told people that if they wanted independence, they should vote SNP. They did not need to worry because the Labour party would make sure that there was not a Tory Government. England would deal with that and people could vote with head and heart for independence if they wanted. Twenty-two per cent. did so.


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