Oral Answers to Questions

Rachel Reeves Excerpts

Tuesday 22nd October 2019 Commons Chamber

[Kelly Tolhurst]

My hon. Friend is right, and that is what the Government’s reforms have done. As I outlined, shareholders have a vote every three years and an advisory vote every year. Through the reforms, we have also enabled employee directors, non-exec directors or employee councils to have representation on the board. Companies now have to explain their wider pay policy and how it affects the whole company.

[Rachel Reeves (Leeds West) (Lab)]

The chief executive of Thomas Cook was paid more than £8 million during his time as chief executive of a company that has now collapsed, costing 9,000 jobs in this country, with 150,000 customers having to be brought home at a cost to the taxpayer. When he gave evidence to our Select Committee last week, he said he would reflect on whether he will pay back any of his bonus. What will the Government do to ensure that bonuses can be and have to be clawed back after catastrophic failures of businesses like that?

[Kelly Tolhurst]

I thank the hon. Lady for the work she is doing on the Select Committee. Thomas Cook did have clawback and malus arrangements in place for the recovery of directors’ bonus payments in specific circumstances, as required by the UK corporate governance code. My right hon. Friend the Secretary of State has asked the Insolvency Service to fast-track an investigation, and it will report back. As the hon. Lady outlined, the CEO did advise the Committee on 15 October that he would consider voluntarily surrendering some of his 2017 cash bonus, but it must be pointed out that no bonus was paid to the ex-CEO in 2018.

British Steel

Rachel Reeves Excerpts

Wednesday 24th July 2019 Commons Chamber

[Greg Clark]

I am grateful to my hon. Friend for his participation in the support group in support of his constituents, which has been very valuable. As I made clear, this is for the official receiver, and I do not want to get ahead of his progress. The situation is still not resolved. He has said that it is encouraging, but we need to work very carefully to ensure that it is resolved satisfactorily. In terms of audit, one of the striking things he has found, as my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) and the hon. Member for Redcar (Anna Turley) will know, is how loyal customers of British Steel have been, in many cases confirming orders well into the future. Network Rail is one such customer, for two reasons—partly for steel reasons but partly because I believe that we should have big upgrades in our national infrastructure. I very much endorse what my hon. Friend said.

[Rachel Reeves (Leeds West) (Lab)]

I very much welcome the activist approach that the Secretary of State has taken with regard to British Steel. I also welcome the fact that no deadline has been imposed, because the most important thing is that this time we find a buyer who is going to support British Steel, invest in it and see it through to the future, unlike the previous owner. Will he give an assurance that the Government will stand by British Steel until a new buyer is found? He knows full well that if a steelworks is closed, it is incredibly hard to reopen it. I urge him to look again at a sector deal for the steel sector, which is so important for the whole industry’s future. Our Select Committee, the Business, Energy and Industrial Strategy Committee, will be looking specifically at British Steel, but also at the wider steel industry, in our inquiry in September. We will be looking both at the actions that this Secretary of State has taken, which we welcome, and at those of his successor.

[Greg Clark]

I am grateful to the hon. Lady, the Chair of the Select Committee, and I welcome the prospect of that inquiry. There is a lot to examine, and she will approach it with her usual forensic attention to detail. I very much hope that the new Prime Minister will continue the commitment that the current Prime Minister was willing to give and the authority that she has given me to act in the way that I have. She and others will hold to account the new Prime Minister and his team on that.

The hon. Lady is right; there is something special about steel assets in many respects, but one is that if they are closed down, it is very hard for them to spring back into life, so continuity is of great importance. That is one of the achievements that, together, we have been able to bring about over recent weeks.

No one is keener than I am to conclude a sector deal. It requires investment. There is an opportunity for the British steel industry to be more strategic than it has been and, as some other sectors have done, align itself to some of the products that we know will be in demand in the future, backed by research and development. That is the approach that the industrial strategy takes, and it applies in spades to steel, so I hope there will be a sector deal to reflect that.

Oral Answers to Questions

Rachel Reeves Excerpts

Tuesday 16th July 2019 Commons Chamber

[Chris Skidmore]

I think we have the opportunity to look at alternative sources of all energy and power. The latest round for contracts for difference opened in May and will close on 18 June. We have looked at alternative sources of power and we want to be able to explore that. But this is also about creating a market mechanism by which we can look at establishing new technologies, moving away from subsidies and ensuring that we have a proud record for the future on renewable energy supplies.

[Rachel Reeves (Leeds West) (Lab)]

The most recent report from the Committee on Climate Change shows that we are moving in the wrong direction in terms of meeting our fourth and fifth carbon budgets. We have now rightly strengthened those objectives to achieve net zero, but without a single policy to help us get there. The long-awaited energy White Paper has still not been published, so can the Minister confirm today that that White Paper will be published before the summer recess and that it will include policies to get us there with onshore wind, solar technology, battery storage and electric vehicles?

[Chris Skidmore]

The hon. Lady mentions electric vehicles and battery storage. The Prime Minister made a significant announcement yesterday at her business council, attended by the Secretary of State: £500 million-worth of export finance will be provided for electric vehicles. There are also the guarantees on looking at charging points. The White Paper is due this summer; I cannot give any more guarantees beyond that, but it is absolutely critical as the next milestone going forward that we have the legislation in place for net zero, and we now need to set out a plan. The clean growth strategy was set out earlier—late last year. We are on track to meet 90% of carbon budgets 4 and 5, and we will do more to ensure that we meet them.

Climate Change, the Environment and Global Development

Rachel Reeves Excerpts

Wednesday 10th July 2019 Commons Chamber

[Andrew Stephenson]

To go back to the example I have just used of decarbonising transport in this country, “The Road to Zero” is a clear road map that was set out a year ago by the Government. It was not a kneejerk reaction: it was done in consultation with industry, other bodies and our international partners to come up with a credible track to reduce carbon emissions from road transport.

The UN climate action summit in September this year is a key staging post in our efforts. It will be a critical opportunity for world leaders to set out their ambitions ahead of COP 26, and to drive an unprecedented shift in the way we approach resilience and adaptation. Despite the scale of this challenge and the opportunities to be gained from acting, it is often seen as a problem for the future. That is why the United Kingdom and Egypt are co-leading the resilience and adaptation theme at the UN climate action summit in September. We want to drive a transformational change in the way different stakeholders around the world think about and invest in resilience and adaptation.

[Rachel Reeves (Leeds West) (Lab)]

The resilience point is well made and incredibly important. The Committee on Climate Change said today that some 9,000 properties a year need to be fitted with flood protection—up from 500 at the moment. Kirkstall in my constituency flooded in December 2015 and the Government still have not committed to the level of flood protection that the community needs. When the Government speak about resilience, is it not just more warm words and not enough action?

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[Sir Oliver Heald]

Yes; of course, the purpose of the carbon budgets and some of the work of the Committee on Climate Change is exactly to tease out those effects. It is a good thing that the body that we set up to be independent, to give the Government advice and to hold their feet to the fire is doing just that—that is what it is there for. Yes, there are costs, but there are also gains. I just made the point about bioethanol; there is already investment in green jobs in the places where we want them, such as Teesside and the Humber. Those factories could generate more jobs and make money that could be taxed. At the moment, all that is being held back for want of a Government decision of an environmental kind. There is money to be had for the Government in terms of inputs, as well as just outputs, or debits. I agree with the hon. Gentleman to some extent, but we do have a process in hand.

Let me turn to light railway in the context of rural locations. I shall use the example of Buntingford, in my constituency, where housing numbers are being rapidly expanded—basically, planning is being allowed to double the size of the town—but there is no employment, or not much, because it is a rural community, and it does not have a train service. That means there will be many more car journeys, as the new homes go to commuters, who travel mainly to London and Cambridge. If we built a light rail link to Stevenage, people would have the option of going by public transport to the big town to shop or on the main line to work.

Of course, people think that light railway is bound to cost a fortune, because in a city it does—the land has to be bought, and it is incredibly expensive—but we need to look more at whether light railway can be done at a sensible price in a rural location. It would also have environmental and social benefits. I have asked Hertfordshire County Council, which is currently visioning its transport for 2050, to look into the idea, and also to look at whether there might be other possibilities for east-west routes in the county.

[Rachel Reeves]

Both the right hon. and learned Gentleman and my hon. Friend the Member for Harrow West (Gareth Thomas) have mentioned my city of Leeds, so I feel I should stand up and say something. Three years ago we got the first new train station in Leeds for 30 years, and it has made a huge difference to Kirkstall in my constituency. Other new train stations could be opened on existing lines, including in Armley in my constituency. As well as some sort of tram network or underground system, simple things can be done in cities like Leeds, such as reopening train stations and opening new ones on existing lines.

[Sir Oliver Heald]

I am glad that the hon. Lady and I agree on this. In the area near North East Hertfordshire, Cambridge North station was recently opened, and that has had a good effect in respect of building the high-tech businesses in that part of Cambridge. That is another example of using the existing railway system but putting in new facilities.

This might be a bit controversial, but we need to consider as a society where we are going with our shopping behaviour. Walking, cycling or using a low carbon means of transport to visit a bricks-and-mortar shop in a high street is surely more environmentally sound than more and more vans delivering to our doorsteps. We need to consider that in the context of the incentives and disincentives applied by Government.

My hon. Friend the Minister referred to improved environmental fuel for aviation and to electric planes, and such things will happen. This is an enormous subject, but I just wanted to make it clear in my speech that tackling transport emissions is key if we are to meet the net zero carbon target by 2050.

[Chris Law (Dundee West) (SNP)]

First, I apologise for being a couple of minutes late at the start of this debate.

This is such an important debate, as it covers probably the three biggest areas that will affect our lives directly and the lives of our children and of the generations to come. I look forward to travelling to New York next week with other members of the International Development Committee for the High-Level Political Forum on Sustainable Development. This serves as a central United Nations platform for the follow-up and review of the sustainable development goals—I was hoping to hear more about that in today’s debate—which have been described as

“a shared blueprint for peace and prosperity for people and the planet, now and into the future.”

Achieving those goals will be vital for securing global development. Looking at all 17 of them, it is clear that protecting the environment and tackling climate change will play a fundamental role. Let me give some examples. Goal 6, to provide clean water and sanitation, goal 7, to provide affordable and clean energy, and goals 14 and 15, to protect life below water and life on land, all require environmental protection in order to succeed. The fundamental question that we in this Chamber must ask is: how will we achieve goal 1, no poverty, goal 2, zero hunger, or goal 11 on sustainable cities and communities, among many others, when those goals are being put in jeopardy by the disastrous consequences of climate change?

Protecting the environment and tackling climate change must be a priority for all Departments of all Governments in these islands, with clear targets, policies and actions to ensure that that is delivered. As we know, Scotland has a rich and diverse natural environment, and the Scottish Government are determined to lead by example by protecting and enhancing our natural capital.

Studies suggest that the elements of Scotland’s natural capital that can be given a monetary value are worth more than £20 billion each year to our economy, supporting more than 60,000 jobs. Furthermore, many of Scotland’s growth sectors, such as tourism and food and drink, depend on high-quality air, land and water. That is why the Scottish Government are taking action to protect our environment to ensure that we have a thriving and sustainable economy. For example, the Scottish Government have an ambition for Scotland’s air quality to be the best in Europe and have established an air quality strategy called “Cleaner air for Scotland: the road to a healthier future”, with 40 aims to realise this goal. To support this, £10.8 million has been provided to support the introduction of low emission zones—something on which I will touch later and, given what was said by the previous speaker, something that is important for all of us here as well.

Moreover, figures from June have shown that the Scottish Government have met their target of 11,200 hectares of new tree planting and now plan to increase the target further in 2024 to 15,000 hectares. To put that into context, that is 22 million trees. I have to say that, sadly, England has barely managed to make 10% of that, so I am looking to hear more about that later. These actions will not only protect the environment, lead to healthier lives and offer fantastic opportunities for our economy, but play a fundamental role in tackling climate change.

Last month, I spoke in this Chamber and welcomed the UK Government’s decision to legislate for a net zero carbon emissions target by 2050, following the advice of the UK Committee on Climate Change. However, simply setting targets will not solve climate change, and I think we have heard that from across the Chamber. What we need is a clear plan setting out how to transition to a net zero economy. Today, the UK Committee on Climate Change has reported that action to cut greenhouse gas emissions is lagging far behind what is needed, and that the UK’s credibility rests on Government action over the next very short 18 months. There is no time to dither or delay. The Committee has called for a net zero policy to be embedded across all levels and Departments of Government and for the new Prime Minister to lead the UK’s zero carbon transition from day one, working closely with Northern Ireland and the First Ministers of Wales and Scotland.

The Scottish Government’s “Climate Change Plan 2018-2032”, which sets out the actions needed to make Scotland carbon neutral by 2045, is due to be updated within six months of the Climate Change Bill receiving Royal Assent. Work is already under way to meet the enhanced target. Scotland’s energy strategy sets a target for the equivalent of 50% of energy for Scotland’s heat, transport and electricity consumption to be supplied from renewable sources by 2030. In order to help achieve net zero emissions, a publicly owned not-for-profit energy company will be established to deliver renewable energy to Scottish customers. This is not a party political debate about the left or the right, but a debate about how we can combat not only climate change but fuel poverty. The reason for setting up that company is that it will endeavour to ensure that the price is as close to cost price as possible. I urge the UK Government to do that for the rest of the UK, as well as to achieve their recently set targets.

Furthermore, with transport accounting for just over one third of total energy demand, Scotland already has the most ambitious agenda in the UK for decarbonising transport. The Scottish Government have already announced the change in policy on air departure tax and committed to phasing out the need for new petrol and diesel cars by 2032—eight years ahead of the rest of the UK. The plan is to implement low emission zones in Glasgow, Edinburgh, Aberdeen and my wonderful city of Dundee by the end of 2020.

To help achieve all that and send a clear signal that Scotland is a place for innovation and low carbon technology, the Scottish Government will establish an innovation fund to invest a further £60 million in delivering wider low carbon energy infrastructure solutions across Scotland, such as electricity battery storage, sustainable heating systems and electric vehicle charging. The expansion of the charging network will raise awareness and uptake of ultra low emission vehicles among private motorists and accelerate their procurement in the public and private sectors. I am disappointed that the UK Government withdrew the tax incentive from electric vehicles last December; I hope that they will consider putting it back, so that more people move towards electric vehicles again.

[Rachel Reeves]

Does the hon. Gentleman share my concern that the most recent data shows that the number of electric vehicles sold has actually fallen? That suggests that the cut in grant and the failure to deliver the charging infrastructure is deterring people from buying the cars that all of us in the Chamber believe people should be buying to help reduce our carbon emissions.

[Chris Law]

The hon. Lady is absolutely right. This is fundamental: if we want to change public behaviour, we have to put the carrots and sticks in place. Things have happened since 2015. For example, the cancellation of the carbon capture and storage project at Peterhead and the removal of tariffs for on-land wind generation are two other factors that should be reconsidered.

I am pleased to say that my own city of Dundee has the highest proportion of electric vehicles in its council fleet in Scotland and one of the largest electric taxi fleets in the UK. As a result, people now feel that the electric charging points across the city are not novel but normal to use.

I have to correct something. I keep hearing that the UK was the first country to declare a climate emergency, but in fact Scotland was. We understand that we will need to go even further. Progress to date has been achieved with little impact on most people; few of us have had to make any real radical lifestyle changes.

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[Rachel Reeves (Leeds West) (Lab)]

It is a pleasure to follow the hon. Member for Chichester (Gillian Keegan).

The Business, Energy and Industrial Strategy Committee, which I chair, working with five other Select Committees, will in the autumn be setting up a series of citizens’ assemblies to address exactly the challenges and issues that the hon. Lady has mentioned. If we are going to achieve net zero, it will of course require Government policies and Government action, but it will also require all of us to do things differently in our own lives—whether that is the number of times a year we fly, the cars we buy, our diet or how we heat our homes. All of these things will require trade-offs, but I believe they will also create huge opportunities.

The hon. Lady spoke about some of the negative changes in our lives but, over the past few years and decades, reducing our carbon emissions has created better cars and more jobs, and I believe that moving towards a net zero economy and a net zero society will create more jobs and more opportunities. If we are at the forefront and lead this new industrial revolution, we stand to benefit the most from it—we will not stand to lose the most, as some hon. Members seem to suggest—because we will create jobs, skills and technologies that we can export to other countries. That will grow our economy in a way that does not destroy our planet.

[Derek Thomas]

I thank the hon. Lady for her enthusiasm and for the opportunity to intervene. She will be aware that the Committee on Climate Change has said that this is about upscaling and making sure that we have the skills we need right across the country. In places like Cornwall, which I represent, the skills are not there and low-paid jobs are the norm. Does she agree that this gives us the opportunity to create wealth and spread it across every corner of the United Kingdom?

[Rachel Reeves]

I absolutely agree. Some of those coastal towns, cities and regions stand to benefit the most. In my own region, Yorkshire and the Humber, the job opportunities from offshore wind have helped to transform previously deprived communities. There will be huge opportunities in Cornwall, with battery technologies giving huge potential for growth and jobs in an area that desperately needs them.

[Gareth Thomas]

I endorse the remarks of my hon. Friend and of the hon. Member for St Ives (Derek Thomas) on the huge potential for offshore wind to create new jobs in this country. Does she agree that the solar industry also offers significant potential for new jobs, and that it would be good to hear the Government’s plans to accelerate the requirement to put solar panels on new buildings?

[Rachel Reeves]

I very much agree with my hon. Friend, and I would also add the opportunities from onshore wind, which the Government disappointingly continue to block, and from tidal power. The experience of offshore wind is that, after initial Government support and investment, the industry and the energy it produces can become cheaper than those it replaces, which again provides big opportunities for jobs and investment.

Sir David Attenborough gave evidence to the BEIS Committee yesterday. Right at the beginning, he said that the environment around us is essential for every breath we take and everything we eat, as well as for our sanity and our sense of proportion. How we treat our natural environment and what we put into it is incredibly important.

As you can imagine, Madam Deputy Speaker, the BEIS Committee always has huge audiences for every inquiry and every evidence session, but our audience yesterday was particularly large, and the attendance was pretty impressive, too. The audience was also very young.

The Minister said at the beginning of this debate that when he goes into schools in his constituency they often talk about these issues, which is inspiring and gives us all hope for the future. The next generation, who listened to our evidence session yesterday, and the generation after that, who are at Castleton Primary School in Armley and Beecroft Primary School in Burley in my constituency, know what a priority this is, and I hope they will continue to press us to make it our priority in this place, too.

I am proud that this was the first Parliament to pass a climate change Act in 2008, and that the current Parliament has set a target of achieving net zero by 2050 but, as Lord Deben said on the publication of the report of the Committee on Climate Change today, international ambition does not deliver domestic action. That is an important point for us to dwell on. I welcome the bid to host COP 26 next year, and I welcome the fact that we are the first country to legislate for net zero, but we will achieve it in 2050—I hope we achieve it sooner—only if we put policies in place today to make it happen.

[Bambos Charalambous (Enfield, Southgate) (Lab)]

My hon. Friend is making an excellent speech, and I entirely agree with her. Enfield Council will pass its climate change plan tonight but, on her point about the need for action, does she agree that one action the Government could take is not to subsidise fossil fuels? Fossil fuels have caused so much damage over the years, particularly in developing countries.

[Rachel Reeves]

We have made huge progress in just the last decade in terms of our reliance on fossil fuels, and we can now get through a week or two without using coal. By 2025, we will not be using coal to generate energy in this country, and that is fantastic. But as the shadow Secretary of State for International Development said in his speech earlier, we are still funding and investing in the development of fossil fuels overseas. Climate change and the emission of carbon is not something that we can just tackle here at home. It is no good reducing our carbon emissions in the UK if we fund investment in them overseas. That is why international action matters, but so do the investment decisions that British companies and the British Government make. Like Enfield, Leeds City Council has declared a climate emergency and is putting in place policies to address it, which is very welcome in our city.

[Dr Sarah Wollaston (Totnes) (Ind)]

Has the hon. Lady’s Committee looked at the issue of three-phase electricity supply to homes? One of my constituents is keen to invest in solar and Tesla-style wall plugs so that they can recharge vehicles and so on, but the cost of installing the necessary three-phase electricity supply is a problem. Does she feel that that would be a better area for the Government to invest in and allow us to expand renewables?

[Rachel Reeves]

Electric vehicles have been discussed quite a bit already today, and much more could be done to encourage people to buy them and to make it easier for people to charge them, as well as to get the charging infrastructure in all communities, including more rural ones.

Our Committee has produced several reports over the last few years on practical things that the Government could do. It has been disappointing at times that our recommendations and suggestions are often rejected by Ministers, when if they had accepted them, we might be a little closer to meeting some of our objectives. On electric vehicles, our Committee recommended that the target of 2040 be brought forward to 2032, and that was before the Government committed to net zero.

The Committee on Climate Change today said:

“The ‘Road to Zero’ ambition”—

which the Minister is obviously proud of—

“for a phase-out of petrol and diesel cars by 2040 is too late and plans to deliver it are too vague. A date closer to 2030 would save motorists money, cut air and noise pollution and align to the net-zero challenge.”

I urge the Minister to look at the evidence from the Committee on Climate Change, and the evidence that our Committee took, which points resolutely to the need to bring forward the date for phasing out the internal combustion engine.

While we welcome decisions by companies such as Jaguar Land Rover to invest in a new fleet of electric vehicles, we need to do more to work with our car manufacturing industry to turn the Faraday Institution’s ideas and research into practical applications that can revive our British car industry and keep more jobs here, while not polluting the planet in the way that the car industry has in the past.

Everybody who gave evidence to our Committee said that there is no way that we would meet even our previous targets without the roll-out of carbon capture and storage. But we are still waiting for Government decisions on investment in that industry, so that we are not just doing the research and development in labs, but are trialling it and piloting it in some of our communities. That goes back to the point that the hon. Member for St Ives (Derek Thomas) made earlier about communities all over the country. The communities that stand to benefit most from carbon capture and storage are in the north-east, Humber, Merseyside, south Wales and Fife, for example—all areas that desperately need jobs and investment. If the Government unlocked the funding, which they have previously cut, they could ensure more good-quality jobs all over the country while contributing to reducing our carbon emissions.

Our Committee has also just concluded a report on energy efficiency, which we will publish soon. Without giving away the findings—my Clerk might be watching—we heard a lot of evidence that the homes we are building today will need to be retrofitted in years to come because they are not of a high enough energy efficiency standard. It seems nonsensical that we know we are building homes today that will have to be retrofitted in future. Those who got planning permission on a development five or 10 years ago only have to meet the energy efficiency rules and regulations from when they got that planning permission, not those in place today. If we just fixed those things, we would be building homes that do not contribute to global warming in the way that they do today.

The Committee also heard evidence that since the Government scrapped the green new deal, improvements to existing housing stock are just not happening. They are not happening in social housing, the private rented sector or the owner-occupied sector. Unless that happens, we have no chance of meeting the net zero commitments. I urge the Government to look at that when our report is published, and not reject our conclusions and recommendations, which happens far too often, but engage with them, adopt them and put them in place. Only by doing that do we have any chance of meeting the targets that we all say we want to achieve.

[James Heappey (Wells) (Con)]

I have been following the hon. Lady’s Committee inquiry into energy efficiency with great interest. The evidence she has received has been compelling and I look forward to the report. Does she agree that the need to focus on energy efficiency is unarguable, because if we are going to pass on to consumers the inevitable cost as we transition our energy system, doing that alongside the savings that come with a focus on energy efficiency seems to me to be a fair contract with the consumer?

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[Rachel Reeves]

The hon. Gentleman makes an excellent point. We often debate the cost of living in this Chamber. One of the big contributors to the cost of living is the cost of gas and electricity. This Parliament legislated for a cap on energy prices—I welcome that and our Select Committee conducted important pre-legislative scrutiny work—but the cheapest sort of energy is that which we do not use at all. If we improved the energy efficiency of our homes, we would have lower bills. A Government investment strategy through the National Infrastructure Commission that retrofitted homes, particularly for people on lower incomes, would therefore help to reduce our carbon footprint and put money back in the pockets of some of our poorest constituents. That would be a double win and we should all work together to achieve that.

[Stephen Kerr]

I am grateful to the Chairman of the Select Committee that I have the privilege of serving on for giving way. There is a triple win here. A lot of ill health stems from poor-quality housing stock. If we were to have a national mission to upgrade our housing stock, one key benefit would be an improvement in the nation’s health. That would save us a lot in health costs.

[Rachel Reeves]

I thank the hon. Gentleman—I was going to call him my hon. Friend, because he is very much my friend and an excellent member of my Select Committee. He makes a really important point. I do not think any Member in this Chamber has not had a constituent come to their surgery because of problems with a damp or poorly insulated home, while also paying astronomical gas and electricity bills. Would it not be wonderful if we could fix that, particularly for our poorest consumers?

I would like to finish where I started—with what Sir David Attenborough said at our Select Committee yesterday. He said that we “cannot be radical enough” when addressing climate change. If we listened to the young people who have been on strike, the protesters, the people who came to listen to that evidence session and all the people who tune into programmes about our natural environment, this would be a national emergency. We would be taking steps commensurate with the scale of the challenge. I very much welcome the Government’s commitment to net zero by 2050, but it is now imperative that we put in place the policies that will help to achieve that, so that our generation can pass on to our children and grandchildren a better world and a better planet.

Climate Change

Rachel Reeves Excerpts

Monday 24th June 2019 Commons Chamber

[Chris Skidmore]

My right hon. and learned Friend has also raised that point with me in private, and I am happy to raise the issue of bioethanol with the Department for Environment, Food and Rural Affairs, which has responsibility for agriculture. It is important to reflect that, as part of a grand challenge in our industrial strategy, we have set out a number of missions on the future of mobility and transport in our cities, including the reduction of congestion, the introduction of electric vehicles and the adaptation of battery technology. I was delighted to visit Warwick Manufacturing Group on Friday, to discuss the advances it has made with lithium batteries. We must do that because of the need to reduce not just carbon emissions but air pollution; we know that tens of thousands of people are literally dying as a result of air pollution in our streets and cities, so the impact we make today is not just for 2050 but for now.

[Rachel Reeves (Leeds West) (Lab)]

The Government have committed to phasing out new sales of the internal combustion engine by 2040. My Select Committee on Business, Energy and Industrial Strategy has recommended that the date be brought forward by almost a decade, if there is to be any chance of meeting the commitment of net zero by 2050. Will the Minister look again at the phasing out of the internal combustion engine, so that we can get more electric vehicles on our roads and bring down carbon emissions?

[Chris Skidmore]

I could not agree more with the hon. Lady: we want to see the greatest possible transition, as fast as possible, to electric and hybrid vehicles for the future, but we have to be able to do it in a sustainable way. We have to ensure that electric vehicle technology, including batteries and other opportunities, moves with us at the same time. Other countries have moved faster than us, and I recognise the points the hon. Lady makes, but what is important is that we begin this discussion about how we can achieve that. There are a number of policy measures by which we can do it. There is also a supply-side as well as a demand-side issue when it comes to electric vehicle technology, and we need to be able to work on both sides of that economic argument in order to increase the number of electric vehicles on our roads. There are issues about charging points, which I also recognise. We need to do it in a sustainable and affordable way that ensures that we can continue a transformation of the economy.

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[Rachel Reeves (Leeds West) (Lab)]

I am proud to speak in this debate, and I am proud that the country that first legislated with the Climate Change Act in 2008 is going a step further today by updating the Act and will be the first G7 economy to legislate for net zero. I think we should all be proud of those achievements. But the role of Parliament, and my role as Chair of the Business, Energy and Industrial Strategy Committee is, where appropriate, to push the Government to go further in a whole range of areas. Those areas include electric vehicles and carbon capture and storage, on both of which my Select Committee has produced reports. Another is energy efficiency, on which a report is coming shortly looking at energy efficiency in homes and at the building of homes—we must not build homes today that we know are not fit for the future given the new commitments that we are making.

Other such areas are international aviation and shipping, which I am disappointed are not included in the SI we are debating today. The chief executive of the Committee on Climate Change, Chris Stark, who gave evidence to our Select Committee, said that it was absolutely imperative to include international aviation and shipping in our climate change commitments, because they contribute 10% of our carbon emissions. I hope the Government will look at that evidence again and update our legislation in light of it.

There are other things that we need to do. Our Committee took evidence last week, including from the World Wide Fund for Nature, which said that a target of 2045 was eminently possible. We heard other evidence that by 2050 we should be looking not at net zero, but at taking carbon out of the atmosphere, as my hon. Friend the Member for Southampton, Test (Dr Whitehead) said earlier, with a 120% target to do exactly that. I hope that when we have the five-year review we can look at being more radical and going further, so that we achieve net zero before 2050 and continue to be a world leader and ensure that we are at the forefront of creating green jobs and taking the opportunities that meeting this target will offer.

However, achieving all that goes well beyond our debates and the decisions we take in this House, and that is why I am also pleased that, along with five other Select Committees, my Committee announced last week that we will be setting up a series of citizens assemblies to bring the public into this debate. Debates and resolutions in this House are not going to take carbon out of the atmosphere; they are not going to get somebody to buy an electric vehicle, or eat less meat, or farm in a different way, or build houses in a different way. To do that we need to take businesses and everyone with us. I hope that those citizens assemblies will look at the evidence, take evidence from a range of experts and deliberate on how all of us can play our part, and I hope that we collectively find that we have in us, in all our communities, the solution to the challenges we face today so that all of us can play our part in achieving a really important objective. That is what all of us should set out to do.

Businesses: Late Payments

Rachel Reeves Excerpts

Wednesday 19th June 2019 Commons Chamber

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

I call the Chair of the Business, Energy and Industrial Strategy Committee, Rachel Reeves.

[Rachel Reeves (Leeds West) (Lab)]

Thank you very much, Mr Deputy Speaker.

When our Select Committee looked into this issue, many small businesses insisted on giving evidence in private, so worried were they about retaliation from the big businesses that they supplied. Larger businesses, including Morrisons, Aldi and WH Smith, are not signatories to the prompt payment code, while Boots pays suppliers at a discount for the privilege of their being paid on time. The power imbalance is so great now between bigger and smaller businesses that. I urge the Government and the Minister to look again, make the prompt payment code mandatory and bring down the period to a benchmark of 30 days.

[Kelly Tolhurst]

I thank the hon. Lady and highlight again the significant work that her Committee has done on this issue, including with our Department. She is absolutely right to highlight the power imbalance, which is why many small businesses feel that they are unable to speak out. That is why we are seeking views in our consultation on powers for the small business commissioner. We will seek to enable the Small Business Minister to make a referral to the small business commissioner; to give the commissioner investigatory powers similar to those of the Groceries Code Adjudicator; and to empower him to carry out an investigation without the small business involved having had to report the issue. There is a suggestion that the process could be anonymised.

The hon. Lady raises an important point, and I am very much aware of it. It will be very much part of my drafting, with the team, in regard to the consultation.

Net Zero Emissions Target

Rachel Reeves Excerpts

Wednesday 12th June 2019 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

May I start by welcoming the statement and the commitment that the Secretary of State and the Minister for Energy and Clean Growth have given to this? May I also say how proud I am to be a Member of a Parliament that continues to lead the way globally in tackling climate change? I am pleasantly surprised that the Bill I presented to Parliament yesterday has been adopted so quickly by the Government. However, I would say to the Secretary of State that if we are going to will the ends, we also need to will the means, and I urge him to go back to the reports from the Business, Energy and Industrial Strategy Committee and look again at bringing forward the target date for phasing out petrol and diesel vehicles, getting on with the demonstration projects for carbon capture and storage, improving the energy efficiency of our homes by genuinely ensuring that all new homes are zero carbon, and asking more from our house builders. If we do that, we have a chance of meeting the targets that we are now signing up to.

[Greg Clark]

The hon. Lady is a very influential member of this House, and when she publishes a Bill, the Government respond with alacrity. I will draw on the expertise of colleagues on her Select Committee, who have participated in the preparatory work that is needed to review the policy framework to support our ambition, and I dare say that her Committee will hold me and the ministerial team to account in terms of our implementation of the work that is needed.

Oral Answers to Questions

Rachel Reeves Excerpts

Tuesday 11th June 2019 Commons Chamber

[Chris Skidmore]

I think the key point is that the reforms that have led to the reduction in the use of coal over the past seven years have been taken forward using a market-based strategy. That was highlighted last week in a report by the International Energy Agency, which praised the UK’s commitments to addressing climate change by using market-based approaches.

[Rachel Reeves (Leeds West) (Lab)]

We have a moral obligation to bring our carbon emissions down to net zero, and there are real economic and social benefits in doing so. Although the Chancellor has expressed his scepticism, despite the fact that we face a climate catastrophe, will the Minister offer real leadership and commit the Government to supporting the Bill I will be presenting to the House this afternoon to bring down our carbon emissions to net zero by 2050?

[Chris Skidmore]

I will certainly be present to listen to the hon. Lady’s Bill. I want to make that commitment, but I recognise that across this House, across all parties, we cannot do this simply by taking a party political approach. It was her Government that passed the landmark Climate Change Act 2008, which introduced the carbon budgets that now allow us to adapt the legislation to look towards net zero.

There must be a whole Government approach, and I want to be able to work towards that. When it comes to looking at carbon budgets and the baselines, those are specific issues on which I want to work with the Committee on Climate Change. I look forward to hearing the hon. Lady’s Bill, on which we all want to move forward together.

British Steel

Rachel Reeves Excerpts

Wednesday 22nd May 2019 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right. We need to do everything we can. The situation is not entirely in the hands of the Government, because the official receiver is obviously responsible for the operations, and the trade unions and local communities want also to participate. This morning, the director general of UK Steel was asked whether he thought that the Government have done everything they can, and he said that he thought that we have. There is a recognition, which I am sure my hon. Friend will find in the sector, that we are serious about doing everything we can within our legal limits to help to give stability and a good future to this industry.

[Rachel Reeves (Leeds West) (Lab)]

This is a desperately sad day for our steel industry and those who work in it, and I am sure that the Business, Energy and Industrial Strategy Committee will want to look at what triggered the collapse of the company. The Government are now paying the wages of British Steel’s workers, which is welcome, and 25,000 jobs depend on production continuing. Will British Steel continue to take new orders under the Government’s official receiver to maximise the chances of the company’s survival? Will the Government guarantee to pay the wages and continue new production at the site until a new buyer can be found?

[Greg Clark]

I am grateful to the hon. Lady, and I would welcome her Select Committee, on which many Members currently in the Chamber serve, looking into this matter. There may be wider lessons to learn about how assets of such importance, where continuity is important, are held.

When it comes to paying the employees’ wages, we should be clear that the official receiver is responsible for that, not the Government. The Government have provided the official receiver with an indemnity, and his responsibility is to manage the business and to make a judgment about the business’s future prospects. He started today with a clear statement that the business continues to trade and that the workforce continue to be employed and to be paid. I hope that that was reassuring for the members of staff.

British Steel

Rachel Reeves Excerpts

Tuesday 21st May 2019 Commons Chamber

[Andrew Stephenson]

I echo the comments of my predecessor, whose shoes I am still trying to fill only six weeks into the job. All Members should reflect on the real-world impacts of the decisions—or lack of them—that they make in this place on businesses, and how that can affect thousands of jobs and whole towns across the United Kingdom.

[Rachel Reeves (Leeds West) (Lab)]

The Government have presided over the decline of the UK steel industry: the closure of Redcar in 2016; the lack of assurances obtained from Greybull when it took over British Steel; the chaotic handling of Brexit; and the failure to agree a sector deal with the steel industry, which it has been crying out for. The Government now have a chance to right some of those wrongs. I urge the Minister to do everything in his power to protect jobs, investment and our vital manufacturing base in our steel sector.

[Andrew Stephenson]

In this role, I want to do everything that I can to support the UK steel sector. We were the first country in Europe to take account of socioeconomic factors in public sector procurement. We have provided more than £291 million in compensation for high energy costs in the UK. We have provided and published a pipeline of upcoming national infrastructure projects, and last year I signed the UK steel charter. We are doing a lot as a Government, although there is more that we can do. I stand ready to help the sector in any way I can.