Energy Update

Debate between Alex Cunningham and Greg Hands

Monday 5th September 2022 Commons Chamber

[Greg Hands]

The hon. Lady is right to raise the matter of prepayment meters and prepayment customers. She is, of course, right to raise the issue of the most vulnerable, which is exactly where the Government’s overall package is targeted. The £37 billion goes hugely to disadvantaged people and households.

Ofgem has taken a number of actions on prepayment meters in recent times. It warned suppliers in June 2018 that prepayment meters should be installed only as a last resort for debt collection. It banned forcible installation for vulnerable customers in 2017. In December 2020, it introduced new licensing conditions, including an ability-to-pay principle and the obligation on suppliers to identify self-disconnection and self-rationing by prepayment meter customers proactively. A number of measures have been taken by Ofgem. Of course it will keep these things under review, and I am sure the Government will look at them as well. If there are more actions the hon. Lady thinks should be taken, I am happy to hear from her.

[Alex Cunningham (Stockton North) (Lab)]

Many industries on Teesside and beyond that are dependent on natural gas as a feedstock are being ruined. CF Fertilisers has already ceased ammonia production in Billingham, while a second major local company told me that a decision could be taken within weeks unless something comprehensive is done, and it will close. The company has written to the Prime Minister. I await a response to my urgent letter to the Business Secretary on Friday, telling him that hundreds of jobs are at risk at that one company. The Minister spoke of some support to help energy-intensive industries, but it is totally inadequate to meet the needs of industry on Teesside and beyond. Will he please outline what assistance will be available for non-qualifying energy-intensive industries? Will he go away again and find another way to help the balance of industries, or is he prepared to see thousands of people lose their jobs?

[Greg Hands]

The Government are never prepared to see thousands of people lose their jobs, which is why we have taken such strong action in the last few years to make sure that our employment situation remains as robust as it is. Beyond that, the hon. Gentleman is asking me to make commitments that will be made by the incoming Prime Minister. He mentions CF Fertilisers, which is a company that we are keenly aware of. We have interacted with the company over a long period of time and will continue to do so.

Carbon Capture and Storage

Debate between Alex Cunningham and Greg Hands

Wednesday 20th October 2021 Westminster Hall

[Greg Hands]

I will deal with the points raised by the hon. Members for the Scottish National party before taking further interventions. As I say, this was a transparent process. We looked at the five criteria: deliverability, emissions reduction potential, economic benefits, cost considerations, and learning and innovation. Scoring was informed by robust, expert-led scrutiny of the cluster submissions, and the clusters selected to be sequenced as track 1 were those with the highest combined weighted score across the criteria.

Turning to the points raised during the debate, I praise my hon. Friend the Member for South Cambridgeshire, first of all for his excellent introduction. I know he likes his history and his science, and he gave us a masterclass in both. He has been combining the two from the first time he took a call on this topic while on The Times news desk. He is right about the potential for the UK to be a CCUS superpower, given the UK’s geology, geography and economy, and the interaction between those three things. I also thank him for praising this Government for being more committed than any other.

We had a collection of fantastic contributions from Teesside to South Yorkshire. My hon. Friend the Member for Darlington (Peter Gibson) praised the proposal and the role of the private sector. We heard from my hon. Friend the Member for Hartlepool (Jill Mortimer); my very first ministerial visit in this new job was to Hartlepool. We also heard from my hon. Friend the Member for Penistone and Stocksbridge, who I have already mentioned.

The hon. Member for Stockton North (Alex Cunningham) has been full of praise for the Government decision. He is right that Teesside is delighted. Other Members have referred to Ben Houchen, the Teesside Mayor, who said:

“This project would create thousands of jobs and put Teesside at the forefront of the new green industrial revolution.”

May I correct the hon. Gentleman on one thing, though? It is popular in UK politics to kick George Osborne, but I have to correct the hon. Gentleman, who said that Claire Perry’s proposal was thwarted by George Osborne. I checked back, and Claire Perry became Energy Minister on 12 June 2017, a full year after George Osborne ceased to be Chancellor of the Exchequer.

[Alex Cunningham]

Will the Minister give way?

[Greg Hands]

I will not. It was also four days after George Osborne left the House of Commons.

[Alex Cunningham]

You are wrong.

[Greg Hands]

I can check back, and I can check with George, but I think the hon. Gentleman’s dates are not correct.

On the points raised by the Scottish National party Members, there was quite a bit of heat about this yesterday, and I really dislike the implication that the UK is making a political decision to favour one place in this country as compared with any other. This has been a transparent process, and we set out the criteria. They called it an arbitrary decision, and it definitely was not. We have been full of praise for the Acorn Project and we remain absolutely committed to track 2. The commitment is to two such projects by the mid-2020s and four by 2030.

Finally, the Carbon Capture and Storage Association called yesterday’s announcement “amazing news”.

Net Zero Strategy and Heat and Buildings Strategy

Debate between Alex Cunningham and Greg Hands

Tuesday 19th October 2021 Commons Chamber

[Greg Hands]

My hon. Friend makes a good point. Of course, gas has a substantial future in our energy supply, certainly in the short term. Currently, 50% of our gas comes from the UK continental shelf, so it is very important for us, notwithstanding high international wholesale gas prices. The Climate Change Committee has itself said that it is not inconsistent with net zero for there to be a contribution from the oil and gas sector, even in 2050. It is now a question of working with the sector, which is why we have done the North sea transition deal. We are working with the industry, in partnership with the Oil and Gas Authority, to make sure that we make the necessary transformation. A lot of the skills in the oil and gas sector are transferable to, for example, offshore wind.

[Alex Cunningham (Stockton North) (Lab)]

As chair of the all-party parliamentary group on CCUS, I am delighted by today’s announcement that the Tees, along with our Humber colleagues, will lead the way on CCUS and hydrogen production. In the past, we have had several false starts, with the Government withdrawing funding, so I hope we get it over the line this time. How will the Minister ensure that Teesside workers will get the jobs and skills to develop the new industries and that the people of Teesside get a real dividend?

[Greg Hands]

I welcome the hon. Gentleman’s warm congratulation on that decision. Perhaps he might have a word with some of his colleagues near him on the Opposition Benches. He makes a good point about Teesside. We will work closely with Teesside Members of Parliament and with the Tees Valley Mayor, Ben Houchen, with whom I had an excellent conversation on this subject just a couple of weeks ago, to make sure that the skills base in Teesside improves and continues to be trained to make sure that it can continue to meet the challenges of the low-carbon future. When I was up in Hartlepool in Teesside just a few weeks ago, I was incredibly impressed to see the new investment in, for example, cabling by an offshore wind company. That company was adamant that there were good skills there, but we must keep working to improve those skills as we go forward.

Oral Answers to Questions

Debate between Alex Cunningham and Greg Hands

Thursday 14th January 2021 Commons Chamber

[Greg Hands]

Since we left the EU a year ago, no bureaucrats will ratify our trade agreements. The ratification of future free trade agreements will take place only once this Parliament has had the opportunity to scrutinise the detail of any trade deal and any necessary implementing legislation. We believe that our system of parliamentary scrutiny compares favourably with that of other Westminster-style democracies such as Canada, Australia and New Zealand.

[Alex Cunningham (Stockton North) (Lab) [V]]

We all know the tremendous additional challenges that our businesses face in exporting goods to the EU, nowhere more so than the chemicals industry, which supports thousands of jobs on Teesside. The ideal situation would be for the UK to remain part of the EU REACH—registration, evaluation, authorisation and restriction of chemicals—framework, thus accessing the services of the European Chemicals Agency, but Ministers seem to think differently and that could cost us £1 billion a year. How will the Government protect our chemicals industry going forward?

[Greg Hands]

Our chemicals industry is extremely important and we are well aware of the issues in the industry with all its trade partners. I remind the hon. Gentleman that the EU deal is the responsibility of the Chancellor of the Duchy of Lancaster, but I am sure that the chemicals industry will make its voice heard at the Brexit business taskforce. The Government stand ready to assist the industry, which, as the hon. Gentleman rightly says, is vital for our future prosperity.