Green Economy

Martin Vickers Excerpts

Thursday 28th June 2012 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

I, too, congratulate my hon. Friend the Member for South Thanet (Laura Sandys) on securing this debate.

Energy policy and, in particular, the fiscal and regulatory framework that governs it is critical to my constituency. The hon. Member for Kingston upon Hull North (Diana Johnson) outlined the advantages of the Humber estuary in terms of location and the development of the renewable sector, and its geographical situation is absolutely ideal for servicing offshore developments.

Developing renewable energy is more than an environmental solution to help slow climate change, however; it is about bringing jobs and investment and revitalising, rejuvenating and regenerating my constituency and other areas that have been hard hit by unemployment and by business closures.

Existing jobs in my constituency are heavily dependent on energy-intensive industry, including petrochemicals refining and steel production, but there is a limit to their ability to subsidise the development of the renewables sector, and the Government must be mindful of that. Part of the political process does, of course, involve balancing competing arguments.

To return to future jobs, however, the Government have recognised the area’s potential by establishing an enterprise zone, the very name of which—the Humber renewable energy super cluster enterprise zone—does not roll off the tongue but is an acknowledgment of the Government’s support for the growth of the sector in the area.

The zone includes the south Humber energy park, being developed by Able UK, which will not only, we hope, attract a major international company, but provide a massive opportunity for smaller and medium-sized businesses to become involved in the supply chain.

The establishment of the energy park project is going as well as can be expected, but the long drawn-out process has highlighted the need for greater clarity and speed on the part of the various Government agencies involved. I welcome the recent announcements indicating the Government’s determination to tackle those issues, and I urge them to ensure that the announcements are followed through and delivered speedily. If investors are to make sound judgments that favour the UK, we need to avoid delay and to speed up the development of infrastructure and jobs in areas such as my constituency, which so desperately needs them.

Potential investors have drawn my attention to several other factors, including the need for greater clarity on how the Treasury will value and ration contracts for difference—CFDs—for levy-control purposes, given that the amounts paid out under them will vary according to the wholesale price for power.

On CFDs, there are questions also about budgeting. From 2014 to 2017, there will be a choice between renewable obligations certificates and CFDs, but the available budget will have to cover both, so I stress again that clarity is needed on how this highly uncertain situation will be managed.

The industry is asking questions because it wants to see the expansion not purely of one sector, but of many, as indeed we all do. The knock-on effects of the green economy will be felt for generations, and I for one want to support the best opportunities that we can give them—but not necessarily at the expense of the current generation of jobseekers. That is what the green economy is really about, so saving the beauty of Britain and saving jobs for the British people must be our aim. This is an economic eco-system in which what happens in one area affects all the others. One aspect of that eco-system that the Government have got right is the interaction of stakeholders with local authorities, which has produced great successes in Humberside involving the recently established local enterprise partnership.

Recently I got together with my hon. Friends the Members for Cambridge (Dr Huppert) and for East Hampshire (Damian Hinds), and Green Alliance, to produce a pamphlet highlighting the importance of local leadership in the dash for green growth. The hon. Member for Kingston upon Hull North mentioned names that were familiar to me from the north bank Humberside area. I add my support and congratulations to political and business leaders in northern Lincolnshire, who have played a significant part in this. There has been cross-party, cross-river support for the various initiatives. As in the case of the Suffolk-Norfolk situation mentioned a few minutes ago, it is relatively unusual in Humberside to get support from both banks of the river, but thankfully, colleagues from both sides have come together. The local aspect of this could unlock business and industry from over-taxing, centralised policies. We urgently need to cut red tape and speed up the process.

Localism is powerful, and these opportunities are being ambitiously pursued with a focus on green business and investment. Investors are perceiving more risk than opportunity, and we need to ask why that is so. Perhaps there are too many complexities in the current set-up. Complexity equals risk, risk equals costs, and costs equal a lack of investment. We need to reduce the administrative quagmires and uncertainties and introduce a more locally based initiative that could speed up the process. The potential for job growth from the green economy is considerable, and I hope that we can move forward much more quickly to achieve that. I urge the Government to do more to end the uncertainty that the industry faces.

The other day, I attended an informative reception on biofuels—a huge growth area that has one plant coming online, but only one. We need to expand that sector as quickly as possible.

Ministers have worked hard to simplify the process by which the industry can develop. Despite the recent withdrawal of Vestas from its Sheerness project, there remains great potential to grow the industry, to the enormous benefit of my constituency and the country as a whole. I readily support the motion.

Petrol and Diesel

Martin Vickers Excerpts

Wednesday 23rd May 2012 Westminster Hall

[Martin Vickers (Cleethorpes) (Con)]

As always, my hon. Friend makes a powerful case. The point about the price differential from area to area is particularly important in my constituency, where Immingham is a major centre for the haulage industry. Increased haulage prices trickle down into the economy generally. Does he agree that it is particularly important that any investigation take note of the impact on haulage businesses?

[Robert Halfon]

My hon. Friend is completely right. Before I answer that, I should say that although I have received a lot of credit for working on the fuel campaign in Parliament, he is deputy chair of FairFuelUK and has done an enormous amount of work to help me behind the scenes. I must give credit where it is due. Haulage firms all over the country are closing down. Transport firms are closing.

Business and the Economy

Martin Vickers Excerpts

Monday 14th May 2012 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

It is a pleasure to take part in this Queen’s Speech debate. I am particularly pleased that the Queen’s Speech produces a framework that will allow Government Members to give a narrative to the Government’s aims and objectives, from which we have been somewhat derailed in recent weeks. My experience campaigning in local elections in north-east Lincolnshire highlighted the fact that between the Budget and polling day, we had lost the debate about what the Government were trying to achieve with their economic policies. We lost the argument, for example, that we were taking millions of people out of income tax, because of the Opposition’s effective campaign on the 50p tax rate.

I not only campaigned in the Cleethorpes area of north-east Lincolnshire but went into the Scartho ward in Grimsby, which I represented until last year. It epitomised the need for a new narrative from Government Members. It was classed as the safest Conservative ward in Grimsby, although anyone who knows Grimsby will know that it was the only Conservative ward, so that it is perhaps not a great achievement. Over the 30 years when I lived in the ward, it was represented by all three major parties at some time or other, and in the mid-1990s I had an enforced rest from my council experience thanks to new Labour, as it was then, sweeping all before it. The seat that was up for election a couple of weeks ago went to the UK Independence party, and that is an important message to all our parties. There is strong anti-EU sentiment in the Grimsby and Cleethorpes area, mainly for historical reasons to do with fishing, but the message should go to all parties that there was something of an anti-political feeling.

Before I move to praising the Government—I assure Ministers that I intend to do so—I take this opportunity to say that static caravans are a big part of the Cleethorpes economy. Indeed, the Lincolnshire coast is the largest centre for static caravans in the UK. The consultation period on the imposition of VAT on static caravans concludes at the end of this week. I appeal to the Government to take careful note of the damaging impact that the measure could have on my area. Static caravans are used as second homes and holiday homes, and because they are occupied for nine or 10 months, they effectively extend the season and boost the local economy.

I was particularly pleased that the emphasis of the Queen’s Speech, right from line one, was on

“economic growth, justice and constitutional reform.”

As an aside on constitutional reform, I hope that we move ahead with an elected House of Lords as quickly as possible. I would prefer a 100% elected House, but let us at least get an elected element into the upper House as soon as possible. It is a scandal that the only way of getting into one of our Houses of Parliament is by an appointment that my constituents would regard as very lucrative.

[Duncan Hames (Chippenham) (LD)]

I generally support the hon. Gentleman’s observations on House of Lords reform, but does he agree that one lesson of constitutional reform is that we should not allow the best to be the enemy of the good, and that we should not take an all-or-nothing attitude?

[Madam Deputy Speaker (Dawn Primarolo)]

Order. May I remind Members that they are not supposed to face the back of the Chamber? They are supposed to address the Chamber, and particularly the Chair.

[Martin Vickers]

I take note of what my hon. Friend the Member for Chippenham (Duncan Hames) says and agree with much of it.

As I said, the Queen’s Speech provides an essential framework for the narrative that the Government must put forward. I spoke on Friday to the regeneration director of North East Lincolnshire council, who said that he was reasonably optimistic about the future. I think that is partly due to the fact that the Government have shown confidence in the area by creating enterprise zones, reducing tolls on the Humber bridge, which will bring £150 million into the area, and only last week giving the go-ahead to pre-construction work on the A160 into Immingham docks. That is vital if we are to develop the area for the green economy and the offshore energy industry. The director made the interesting point that the area is not looking for Government grants, but it does need some Government investment in vital infrastructure projects such as those.

I add a caveat about regional pay, which I know my neighbour, my hon. Friend the Member for Brigg and Goole (Andrew Percy), spoke about in his contribution to the debate a few days ago. By coincidence, I was visiting the manager of a Jobcentre Plus on Friday morning at just the moment when my telephone rang, and it was a journalist wanting a comment about regional pay. I have reservations about it, and as the jobcentre manager pointed out to me, organisations in both the public and private sector have to pay premium salaries to attract specialists to the low-pay economy of northern Lincolnshire. I have had experience of that as a councillor.

I conclude by commending the report published today by the all-party group on small business. It highlights the desperate need to create enthusiasm for entrepreneurship among our young people. We go a long way towards that in the Gracious Speech, which I commend to the House.

[Roberta Blackman-Woods (City of Durham) (Lab)]

It is a pleasure to follow the interesting speech of the hon. Member for Cleethorpes (Martin Vickers). I am not sure whether he was saying that his constituency was better off under the Labour Government, but I think he should have done.

[Martin Vickers]

Will the hon. Lady give way?

[Roberta Blackman-Woods]

I am sorry, I will not, because we are really short of time.

Despite a few reasonable measures, the overriding sense is that the Gracious Speech delivers priorities that are out of sync with those of my constituents and the rest of the country. It was more notable for what was left out than for what was included. The first line promised that the legislative programme would focus on

“economic growth, justice and constitutional reform”,

but in fact there was a complete lack of legislation to boost the economy in the north-east or anywhere else, or to address the concerns of people in my constituency and the region as a whole.

We need a plan for jobs and growth. The north-east has the highest unemployment rate in the country, with 11.6% of people of working age being without a job. Particularly worrying is the number of unemployed 16 to 24-year-olds. In County Durham, 8.6% of people in that age group are claiming benefits, and in my constituency long-term youth unemployment is up by a massive 129% on this time last year. Without strong Government action, we risk creating a generation of young people who will never experience stable employment and an economy that will take a worryingly long time to recover. It is no wonder then that business has slammed the content of the Queen’s Speech. This March, an Experian report showed that County Durham was in the top 20 areas for export potential and that businesses in the north-east, the north-west and Yorkshire and the Humber—the areas most likely to be hit by this new made-in-Downing-street recession—are doing the most to drive export growth.

Improving our infrastructure and links between the north and south is vital not only for the regions but for the British economy as a whole. Areas such as Durham are key to our international competitiveness and long-term economic success. It is therefore essential that I ask why so little Government attention has been paid to improving infrastructure in the north-east. The Government talk a lot about supporting manufacturing but where are the policies to back it up? The only thing that this coalition has manufactured is the double-dip recession. The recent welcome investment programmes in the north-east by Hitachi and Nissan were actually started under the previous Labour Government.

We saw last week that the regional growth fund is expected to deliver only 41,000 jobs—well below the 500,000 claimed by the Deputy Prime Minister, the right hon. Member for Sheffield, Hallam (Mr Clegg). What is more, those jobs cost an average of £33,000 each to create, compared with the £6,500 average under Labour’s future jobs fund. The shambles is partly due to the Government’s decision to do away with regional development agencies, which promoted and defended the interests of the regions, as One North East did so well. In particular, they should not have got rid of the RDAs without putting in place a viable alternative.

The loss of One North East has been keenly felt across the region. For instance, the announcement recently that more than 300 jobs will move to Ireland following the closure of the Kerry foods factory in my constituency is a disaster for many of my constituents, but it is only one of several closures of food processing factories in the north-east this year alone. There is no regional body to pick up this issue, to think about what can be done to improve the competitiveness of the food processing sector and, critically, to maintain and grow these jobs in the north-east, so we are seeing the loss of private sector jobs in addition to the huge loss of public sector jobs

There is no strategy either for innovation. One North East put universities at the heart of its plan for growing the north-east economy, and we needed that innovation, but it is now extremely difficult for universities to engage with economic development because of the fragmentation: we have two local enterprise partnerships, two enterprise zones, 12 local authorities, the regional growth fund, “BIS local” and further bids in several constituencies. As a result, there is no clear way for universities to engage. The Government would say that they created LEPs to take on that role, but in practice local government is bearing the brunt of the austerity measures, which means that it simply does not have the resources to create the much-needed jobs in my area and elsewhere.

Budget Resolutions and Economic Situation

Martin Vickers Excerpts

Friday 23rd March 2012 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

In my speech, I should like to give overall support to the general thrust and direction of my right hon. Friend the Chancellor’s Budget. In extremely difficult circumstances, he has produced a package that I believe will stand the test of time. Budgets too often unravel in a matter of days. Before I continue, I must apologise to the House and the Minister for not being able to be here for the winding-up speeches, but I have constituency appointments that I must honour.

This is the third day of the debate, and many of the points that are made will have been made many times over, so I should like, in the main, to look at the proposals from my constituency perspective.

[Madam Deputy Speaker (Dawn Primarolo)]

Order. A lot of Members have apologised for not being present to hear the Minister. That is the convention of the House. I sincerely hope that the Minister will be here, however, because it does not look like any other Members will.

[Martin Vickers]

The local economy of my constituency is generally a low-paid one, with an average annual salary hovering around the £20,000 mark, so it would be wrong to say that I have been overwhelmed with demands for a reduction in the 50p tax rate. To be perfectly honest, no one has canvassed me on that, and that includes two millionaires—but that is an aside. We recognise the desirability of expanding an entrepreneurial economy, however, and on balance I think it is the right decision.

Most of my constituents are far more concerned about the cost of living—most notably petrol and energy costs—so as an officer of the all-party group on fair fuel for motorists and hauliers, I am disappointed that our recent efforts to persuade the Chancellor to postpone the next scheduled increase in petrol duty have not borne fruit. I acknowledge that much has been done on this since the election, but household budgets are being severely squeezed by the cost of motoring. Lincolnshire is a predominantly rural county with limited public transport, so people have little choice but to use their own cars. The FairFuelUK campaign has done much work to highlight this, and the recent report it commissioned from the Centre for Economics and Business Research provided considerable and compelling evidence of the benefits of lowering the burden not just to individuals but to the economy. Our campaign will continue.

Before raising another couple of concerns, I want to welcome the increase in the personal allowance to £9,205. This is a major step towards achieving the £10,000 target and has been warmly welcomed in my constituency, which, as I said, is a low-wage area. I also welcome the moves to lighten the burden regarding child benefit. It is a step in the right direction. It is not entirely what I had hoped for, but, again, I recognise the pressures on the Chancellor. It was interesting to note, in the debate a day or two ago, the suggestion made by my hon. Friend the Member for Gainsborough (Mr Leigh) about a possible way forward.

It is notable that when the reporter from the local Grimsby Telegraph contacted me just after the Budget speech, their first question was not about the 50p tax rate or the impact on pensioners. Instead, it was, “What’s in it for regeneration?” Northern Lincolnshire urgently needs improvements to its infrastructure and public realm, and the Government have recognised the area’s bright future with an additional allocation of £6 million to the pan-Humber and Greater Lincolnshire enterprise partnerships.

I particularly welcome the forthcoming publication of the national planning policy framework speeding up the procedure for major applications, and note that the Red Book makes specific mention of the Able marine energy park in my constituency, which has been plagued by delay after delay from wildlife directives and a less than positive approach from some Government agencies. The specific commitment in the Red Book to change the culture of statutory bodies is therefore much needed. I also welcome the commitment to changing use class orders and the associated permitted development rights that will make it easier to change the use of buildings.

Enterprise loans are also a welcome development, particularly those aimed at young people. I was recently involved in the small business all-party group’s inquiry into entrepreneurship. It was notable that every witness pointed out the need to encourage the entrepreneurship in our young people that the economy so urgently needs. It is also notable that the Federation of Small Businesses is broadly supportive of the Budget proposals. As we all know, to a great extent it is small businesses that will be the engine of growth.

I want to comment briefly on the Opposition’s response to the Budget. Despite their playground attitude of pointing and calling us “the same old Tories”, it is notable that it was those same old Tories who have guided the country through most of its difficult periods. We also provided the opportunities for working-class people to buy their council homes. We have provided the economic conditions for some of the most notable periods of growth throughout our history. The Labour party’s renewed class warfare just does not wash, especially with people like me who come from a working-class background. The fact is that all people, whatever their station in life, benefit from a growing economy, and I believe that this Budget will do a great deal to bring that about.

Autumn Statement

Martin Vickers Excerpts

Tuesday 29th November 2011 Commons Chamber

[Mr Osborne]

I am always keen that Parliament is kept fully informed.

[Martin Vickers (Cleethorpes) (Con)]

On behalf of my constituents, I thank the Chancellor for the many initiatives that he has introduced for northern Lincolnshire and Humberside. Of course I cannot let the moment pass without a particular word of thanks for what he has done on the Humber bridge tolls, as it will be a great boost to the local economy. The national infrastructure plan rightly says that we have to wait until the new planning framework is in position before we can speed up the planning process. A number of major investments are pending in my constituency. Can he assure me that the full weight of the Government will be behind them to speed them along?

[Mr Osborne]

My hon. Friend absolutely has my assurance. If he wants to contact me with specific proposals that will create jobs in Cleethorpes and elsewhere in Lincolnshire, would he please let me know and I will do what I can to advance them, within the rules and the planning laws. As he knows, I am trying to reform those laws to make it easier to get the go-ahead for development that is sustainable and in tune with our broader environmental objectives. I want to make the planning system more rapid, and I should put on the record that the campaign that he has fought with other Members to get those Humber bridge tolls reduced shows that Cleethorpes has a powerful champion in my hon. Friend.

Fuel Prices

Martin Vickers Excerpts

Tuesday 15th November 2011 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

This is a vital debate that affects every household in the country. As an officer of the all-party group on fair fuel for motorists and hauliers, I congratulate my hon. Friend the Member for Harlow (Robert Halfon) on securing the debate, and the Backbench Business Committee on recognising its importance, particularly as the call for a debate was supported by an e-petition—a valuable resource that the Government must be congratulated on introducing. This is not an anti-Government motion; I and other hon. Members who have signed it recognise the reality of the situation. Let us be honest: it is not the ideal time to suggest anything that will reduce the Government’s income streams. We accept that we are in a financial black hole, but I pay tribute to the Government’s handling of the nation’s finances.

[Damian Collins]

Does my hon. Friend agree that something that would increase the amount in the nation’s coffers and would be good for the haulage industry is the introduction of a levy on foreign lorries, which do not pay any UK taxes? That is particularly galling for hauliers in my Kent constituency, who pass by them on our motorways, knowing that they have made no financial contribution to them at all.

[Martin Vickers]

I entirely agree with my hon. Friend. My constituency, which I shall come on to, is another centre for the road haulage industry. It, too, would welcome such a proposal.

Unemployment in my constituency is above the national average, and incomes are below the national average. Much of the available work is seasonal, and jobs can be many miles away. For many people, travel costs are compounded by the Humber bridge tolls, but that is a debate for another day. My constituency not only includes the premier resort on the east coast, also known as Cleethorpes, but the industrial and port complex on the Humber bank, including oil refineries, which are major employers. Indeed, they are good employers that provide the area with much of its wealth, but today I am speaking for my constituents, who are finding travel costs an increasing burden.

My constituency is a major centre for the road haulage industry, which, needless to say, suffers from the present levels of tax and duty on petrol and diesel. That, coupled with the fact that there are many small towns and villages in the vast, rural areas that are a feature of Lincolnshire, means that people do not live close to their place of work or to the essential services that they need to access. Walking and cycling are not realistic alternatives.

Motoring taxes are a greater burden for people living outside major conurbations. The Countryside Alliance has produced figures that show that people in rural areas spent £1.34 per week more in petrol at the beginning of this month than they did at the beginning of the year. They also draw attention to the fact that an-above average number of low-income groups in rural areas are car owners, and that accounts for a much greater proportion of their income. The people I represent think that paying 60% of the cost of a litre of petrol in tax and duty is too much—it is unfair. I have said before in the Chamber that it is a risky business for Governments to talk about fairness, because it is human nature for someone to regard as fair what is beneficial to them, but to regard something as unfair if it benefits someone else.

What people do regard as unfair is the fact that, based on the most recent figures available, £31 billion per annum is collected in tax and duty. Total annual expenditure by the Department for Transport is only £23 billion, so they regard that as unfair.

[Richard Fuller (Bedford) (Con)]

Does my hon. Friend agree that fairness is another reason people are animated by the debate, and support the motion? Too often under the previous Government, both with fuel duty and with council tax, people saw taxes go up year after year with no justification. It is the justification for the tax that is the source of the unfairness in this instance.

[Martin Vickers]

I entirely agree with my hon. Friend, who strengthens my case.

I was discussing fairness. In the two unitary authorities that cover northern Lincolnshire, it is estimated that constituents pay £167 million a year in motoring taxes, compared with the £95 million that is spent on roads infrastructure—again, that is clearly unfair.

[Mr Watts]

Will the hon. Gentleman give way?

[Martin Vickers]

I think that I am running out of time.

I said earlier that my constituency is a major centre for the road haulage industry. Most large commercial vehicles do about 8 miles per gallon. The planned increase due in January will add £15 a week to the running costs of a single vehicle, which will impact not only on individual businesses but on the supply chain. The Federation of Small Businesses has produced figures that detail the impact on businesses in that category.

I recognise, as I said earlier, that the Government must protect their income streams. There has been much talk in recent weeks about the 50p tax rate. That must be secondary to a reduction in car taxes. Very few people in my constituency can even dream of earning an income that would demand a 50p tax rate. I want to get rid of it as soon as possible, but now is not the time. Rural bus services have been reduced. The Government understand the impact on local people in northern constituencies in particular, and I urge them to act as soon as is practicable.

Summer Adjournment

Martin Vickers Excerpts

Tuesday 19th July 2011 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

Let me first pay tribute to the hon. Member for Inverclyde (Mr McKenzie) and commend him on his maiden speech. It was good to hear from a Member who, like me, was born in the constituency that he represents. Given his description of his constituency’s stunning natural beauty, it clearly has similarities with Cleethorpes.

I will be as brief as possible, Mr Deputy Speaker. The economy of northern Lincolnshire could be described as “stuttering” at the moment. It has taken many knocks, but it has the potential of a new dawn from the renewables sector. Despite its name, Cleethorpes is a highly industrialised constituency, containing Immingham docks and much of the Humber bank. Associated British Ports operates the Grimsby-Immingham docks complex, which is the largest in the country. However, expansion and regeneration are being held back by transport infrastructure that is in urgent need of improvement.

The northernmost town in my constituency is Barton-upon-Humber, which is just 20 minutes’ drive from the centre of Hull, but Humber bridge tolls are a tax on jobs. The free movement of labour is restricted. It is totally unrealistic to expect someone in Barton to accept a job in Hull paying the minimum wage, and even more unrealistic to expect people to take part-time work.

The hopes of all local people are resting on the current Treasury-led review, which is due to report in November. The business community and local people are encouraged by the work of the review team, and by Ministers’ determination to deliver a sustainable solution that may well be based on a social enterprise model. It is essential to have lower tolls in the relatively near future; we do not want promises that may never materialise.

In the East Halton and Killingholme area of my constituency sits the site of the proposed south Humber gateway development—in which Able UK Ltd has invested £100 million—alongside the largest undeveloped deep-water channel in the UK. It is thought that £1.5 billion of private sector development may follow, much of it in the renewable sector. That would offer an opportunity to develop a cluster for the sector, involving the construction of wind turbines. The ports of Immingham and Grimsby are ideally located for the service and supply of offshore wind farms—and offshore is where we want them to be, rather than in the countryside.

A major problem with the gateway development is the bottleneck in the planning process. It has been caused by a number of Government agencies, notably Natural England. Such agencies, including the Environment Agency, must appreciate that planning issues are commercial issues, and that they must move at the same speed as the demands of investors and developers. The current leisurely pace is not acceptable.

Northern Lincolnshire has taken a bit of a body blow in recent times, with the announcement of 1,200 job losses. Many of those jobs were done by my constituents at the Tata Steel works in Scunthorpe. It is encouraging that the Secretary of State for Business, Innovation and Skills will be visiting the steelworks tomorrow. It is also encouraging that the Prime Minister has taken an interest, and we eagerly await a meeting with him. I hope, however, that Ministers will be able to give us some confidence that not only the Secretary of State and the Prime Minister, but the Government as a whole, will support the local infrastructure. The highways, particularly the A160 route to Immingham, urgently need an upgrade, and it is desperately important for that to be included in the first phase of the next building programme. I hope that the Minister will be able to assure me that he will press our case with transport Ministers at the earliest opportunity.

The area is building itself up for the renewables sector. There are great training prospects at the Grimsby institute, Lincoln university and other institutions—

[Mr Deputy Speaker]

Order. The hon. Gentleman's time is up.

Finance (No. 3) Bill

Martin Vickers Excerpts

Tuesday 5th July 2011 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

I am pleased to follow my neighbour, the hon. Member for Brigg and Goole (Andrew Percy), and I support many of his comments.

For the Government to unite the representatives of manufacturing industries with Greenpeace, Friends of the Earth and the World Wildlife Fund in opposition to their proposals is a masterstroke. I do not accept the ingenious argument that the Economic Secretary to the Treasury gave in Committee, which was that such a range of opposition to the tax was proof positive that the right balance had been achieved. That is patently not the case: as we have already heard, the arguments of the high-energy manufacturers and the environmentalists are complementary, not contradictory. The key challenge that we face as a nation is how to balance greening the economy with growing the economy. The Government’s proposals fail to meet that challenge. The UK is competing internationally for investment. The Humber is competing with Bremerhaven and Esbjerg for green investment. As we have already heard, those making investment decisions too often sit outside these shores. In the real world, the carbon floor price represents a serious threat to our competitiveness. We are in danger of seeing multinational companies choose to invest not in the UK but elsewhere.

[Martin Vickers (Cleethorpes) (Con)]

The hon. Gentleman is making a persuasive case. He and I know the seriousness of the situation from our regular visits to Tata Steel in Scunthorpe, and he will be familiar with the Able UK site in my constituency. One of the arguments for the company coming to our area was the proximity of the steel works, which, ironically, Able UK wants to use for production in the renewables sector. I am sure the hon. Gentleman agrees that it would be tragic if that steel were produced elsewhere, thereby creating greater emissions.

[Nic Dakin]

The hon. Gentleman makes a cogent and sensible point. [Interruption.] Indeed, I note that the Economic Secretary is writing it down, so I hope that she will respond to it later.

We are in danger of exporting UK jobs to places such Ukraine and Russia, thereby boosting global warming rather than reducing it. As we have heard, my community in Scunthorpe faces serious challenges after Tata announced that 1,200 jobs were at risk. We have also heard the chief executive of Tata Steel, Karl-Ulrich Köhler, quoting the carbon floor price as part of the context of the decision. However, other, local companies are equally concerned. Richard Morley of Caparo Merchant Bar in Scunthorpe said to me:

“As well as supporting growth and jobs, companies like mine are well-placed to provide many of the technical and material solutions necessary to address climate change”—

the point that the hon. Member for Cleethorpes (Martin Vickers) made a moment ago—

“but we can only do so if we are able to remain competitive. The unilateral introduction of the”

carbon floor price

“at too high a level could threaten this.”

Richard Stansfield of Singleton-Birch has examined in more detail what the carbon floor price means:

“The CFP does not actually set a…price of £16 in 2013 as has been implied. The figure of £16 has been arrived at by using a 2009…carbon price of £11.06 and adding a £4.94 tax, called the carbon price support, to reach the £16. The current forward price of carbon in 2013 is already around £16, so adding this £4.94 will make the price of carbon £20.94. This will be £4.94 more than our European competition will be paying and £20.94 more than the rest of the world.”

Only last month we heard the new director general of the CBI, John Cridland, expressing concerns about the impact of the carbon floor price on high-energy manufacturing.

In a written answer to a parliamentary question, the Economic Secretary confirmed that the carbon price support provisions would put up consumer energy bills and deliver windfall profits of £50 million a year from 2013 to existing nuclear reactor operators. Greenpeace has calculated that the figure exceeds £1.3 billion up to 2020. The Government’s proposal is therefore a bad deal for bill payers. Almost £1 billion will be given to the nuclear industry for doing absolutely nothing new. The proposal will add nothing to energy output or Britain’s energy security, and there will be no requirement for the companies to invest the windfall in national priorities such as energy efficiency programmes or meeting our renewable energy targets.

I am afraid, therefore, that in its present form the carbon floor price is a badly designed tax. It will not drive the significant investment needed to develop clean, safe alternatives to fossil fuels or the technological improvements needed in energy-intensive industries. As research by Waters Wye Associates concluded:

“The outcome of implementing policies as they are currently conceived will…be poor both economically and environmentally. Global greenhouse gas emissions may well increase as well as hitting both investment and jobs.”

The current approach risks penalising British industry and endangering British jobs. It will hurt the consumer and fail to deliver our green ambitions. I urge the Government to think again.