Amber Rudd
Main Page: Amber Rudd (Independent - Hastings and Rye)(8 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Dr Rupa Huq (Ealing Central and Acton) (Lab)
1. What estimate she has made of the number of homes that need to be brought up to the minimum band C energy efficiency standard by 2030.
The Secretary of State for Energy and Climate Change (Amber Rudd)
According to my Department’s latest fuel poverty statistics, less than 5% of fuel-poor households in England have a minimum energy efficiency standard of band C, leaving 2.2 million households below this standard. Bringing these households up to the minimum standard is a challenging ambition, but one we are determined to meet. That is why we have been clear that available support needs to be focused on those most in need. We will be reforming both the renewable heat incentive and the energy company obligation, to make sure that both schemes are sufficiently targeted towards the fuel poor and to tackle the root causes of fuel poverty.
Dr Huq
The Government recently spent £50 million of taxpayers’ money assisting a bunch of big businesses such as Sainsbury’s to change their lightbulbs. Meanwhile, they halved home insulation funding in the last Parliament, which was meant to help families out of fuel poverty. I will not ask how many Tories it takes to change a lightbulb, but does that not show whose side they are on?
Amber Rudd
The hon. Lady is in danger of misunderstanding demand-side reduction. Two pilots have been launched, and both have been effective in reducing the amount of energy used, which is one of our key targets in carbon emissions and energy security. That in no way interferes with our key objective of ensuring that we reduce fuel poverty at all levels.
Mr Philip Hollobone (Kettering) (Con)
Would my right hon. Friend be good enough to publish the statistics for Northamptonshire for the number of homes that do not meet that standard? One of the big issues we have in Northamptonshire is the very large number of new houses being built. Can my right hon. Friend confirm that all those new houses are required to meet that minimum standard?
Amber Rudd
I would be delighted to publish those statistics and will write to my hon. Friend with them. New-build houses are always built to a far higher standard than the existing build. The challenge of fuel poverty is almost eradicated for new builds, so I hope his constituents will be able to welcome affordable, warmer winters in future.
Huw Irranca-Davies (Ogmore) (Lab)
Has the Secretary of State managed to have any discussions with her Welsh Government counterparts about the wonderful Arbed scheme? Arbed in Welsh is to save. The scheme worked with 28 social landlords in its first phase, and worked with more than 5,000 homes on energy efficiency in its second phase. It is funded partly by European structural funds. It is a great example of energy efficiency and a great reason for Wales to stay within the European Union and the United Kingdom.
Amber Rudd
That is a very interesting proposal from the hon. Gentleman. I clearly should spend more time talking to my Welsh counterpart in order to learn from the good work that the Welsh Government are doing to address fuel poverty.
Jim Shannon (Strangford) (DUP)
The Energy Saving Trust has a useful website that directs people to the boiler grant scheme that we operate in Northern Ireland—a package of energy efficiency and heating measures is tailored to each household. Will the Minister consider that Northern Ireland example and consider providing something similar on the mainland UK?
Amber Rudd
I am aware of the interesting boiler scheme that is being run in Northern Ireland. I welcome such initiatives to address the difficulty of fuel poverty and of reducing heat and carbon emissions. The Mayor of London has launched a similar scheme. We will look carefully at how that works to see whether we can adopt it in the United Kingdom.
Chris Heaton-Harris (Daventry) (Con)
2. What progress she has made on ensuring that local authorities decide all onshore wind applications.
Kate Hollern (Blackburn) (Lab)
3. What changes she plans to make to the structure of capacity market auctions before the next auction round.
The Secretary of State for Energy and Climate Change (Amber Rudd)
Security of supply is my No. 1 priority. The capacity market was put in place to ensure sufficient security of electricity supply. It supports existing technically reliable plants to remain in the market and, as coal and other ageing plants retire, it will enable new plants to be financed and built, securing our energy supplies for the future. Following the capacity market auction conducted at the end of last year, I have been considering whether any changes are needed, and I hope to be able to announce my conclusions shortly and to undertake any consultation quickly if we decide that any regulatory changes are needed.
Kate Hollern
Is the Secretary of State concerned that the latest capacity market option is having the unintended consequence of undermining capacity, as unfavoured power stations are mothballed or closed? Can the Government be certain that they can maintain security of electricity supply while reducing investment in the solar industry?
Amber Rudd
I do not share the hon. Lady’s views. The whole purpose of the capacity market is to guarantee security three or four years out and that is exactly what we are delivering. As I said earlier, however, having had two capacity auctions so far, we will be reviewing how we can improve so that the third delivers even more certain security going forward.
Andrew Stephenson (Pendle) (Con)
I am pleased to hear that the Secretary of State is willing to look again at the way the capacity market works to encourage cleaner forms of energy rather than a reliance on fuels such as diesel, which, sadly, was a large beneficiary of the latest round. Will she give us a timescale for when the new proposals will come forward?
Amber Rudd
I thank my hon. Friend for that question, which gives me the opportunity to point out that diesel was in fact 1.5% of the capacity market—a very small amount. However, it is absolutely essential to make sure that we have no risk at all to security, which is why diesel was included at that stage. I cannot give him an exact timeline, but I can say we are working on it intently at the moment and will be coming forward with proposals shortly.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
Will the right hon. Lady look to make changes to the capacity market, so that battery energy storage can compete and provide an alternative to thermal generation? Will she also look at final consumption levies that are affecting battery storage, because battery storage is not, of course, final consumption? It is just storage.
Amber Rudd
I thank the hon. Gentleman for his question and share his enthusiasm for storage. We are at the moment working with Ofgem to address how we can best encourage it within a secure regulatory environment. I cannot at this point say whether it will be within the capacity market, but that is certainly one of the considerations we will be looking at.
Lisa Nandy (Wigan) (Lab)
It is with sadness that I stand here without Harry Harpham in his familiar place. He was my Parliamentary Private Secretary and a much-loved and valued member of the shadow Energy team. Owing to his background, Harry never let us forget that energy is about people. Last month, he told the Yorkshire Post that he would be the last deep coalminer elected to this place. Our promise to Harry is to ensure that the voice of working people remains at the heart of the energy debate. I will miss him enormously. We will never, ever forget him.
The capacity market was supposed to bring forward new investment in gas power stations and ensure that we have enough back-up power stations in case of a power crunch. We know that it has failed on the first count. Now, one of the companies contracted to provide back-up capacity, SSE, has pulled the Fiddlers Ferry power station out of the scheme, throwing the Government’s entire policy into doubt. Will the Secretary of State give the House a guarantee that no other power stations will pull out?
Amber Rudd
Before I answer that question, I join the hon. Lady in sharing our condolences from the Conservative Benches on the sad loss of Harry, her friend and able Labour Member of Parliament.
On the capacity market, I reassure the hon. Lady that we are looking at it again to ensure that it delivers the mix of sources. As far as losing old power stations is concerned, she is as aware as I am that these are very old power stations and that it is not surprising that some of them are closing. In our plans for capacity and in our discussions to ensure security, we always plan for a certain amount of closures. We do not feel it is a threat to security of supply, but we take nothing for granted and will never be complacent. We will always make sure we have a secure supply.
Lisa Nandy
I thank the Secretary of State for that answer. Unfortunately, it is not the answer to the question I asked her. No new gas stations have come on stream since the Prime Minister took office. The final investment decision on Hinkley has been delayed yet again. Analysts said recently that renewables investment is about to fall off a cliff. I ask the Secretary of State again: can she confirm that no other power stations will pull out of this scheme?
Amber Rudd
I simply do not recognise the picture the hon. Lady portrays. It is, of course, a bit rich for Labour to point that out when it has absolutely no record of planning for the future. We are the Government who are delivering the first nuclear power station. We are the Government who are taking the difficult choices for the next 10 to 15 years. I remind the hon. Lady that the Carrington closed cycle is going to start this year.
Amber Rudd
The hon. Gentleman says one. That is, of course, more than the zero to which his hon. Friend referred. This is exactly why we will be looking at the capacity market again, to ensure it delivers new gas.
Kelvin Hopkins (Luton North) (Lab)
4. What plans she has to support the development of electricity storage.
The Secretary of State for Energy and Climate Change (Amber Rudd)
As the Prime Minister made clear yesterday, the UK owes a great debt to the coal industry for all it has done to keep the lights on and keep our economy moving. Both I and officials in my Department regularly discuss a range of energy and climate change issues with our international counterparts, and it is clear from these conversations that the UK remains respected internationally for our ability to reduce emissions while at the same time growing our economy.
David Mowat
The Secretary of State will be aware that the day after the UK announced the closure programme, Germany commissioned a brand-new lignite building unabated coal power station as yet another addition to its coal fleet. In Belgium, Holland and Spain, coal use increased in 2014. Much of that electricity will be imported to this country through interconnectors, yet in my constituency the closure of Fiddlers Ferry was announced last week. Many of the workers there ask me how these various factors can be part of a coherent European energy policy. What should I tell them?
Amber Rudd
I start by expressing my sympathies for all those workers in my hon. Friend’s constituency who have been impacted by the recent announcement of the closure of Fiddlers Ferry, as well as of Ferrybridge. On different countries in the EU making different choices about how to deliver their renewables targets, it is up to them to address how they reduce their emissions. Germany, for instance, is also having an enormous amount of solar. It has 52 GW of solar at an eye-watering cost of €10.5 billion.
Jeff Smith (Manchester, Withington) (Lab)
The question is how we phase out coal use. Will the Secretary of State be taking new legislative measures to deliver on the Government’s commitment?
Amber Rudd
On coal—I think that was the subject of the hon. Gentleman’s question—we will be consulting and looking at the different methods we might or might not need. Those may be regulatory, or they may be legislative, but we have an open mind about how we achieve these things. That consultation will begin shortly.
Michael Fabricant (Lichfield) (Con)
12. My right hon. Friend will know about the recent announcement of the closure of Rugeley power station, which is half in my constituency and half in that of my hon. Friend the Member for Cannock Chase (Amanda Milling). The station was sited there in the first place because of a coalmine, which, like many others throughout western Europe, is long gone. However, the closure may mean that up to 150 people are made redundant, although ENGIE says it will try to redeploy them elsewhere. Will my right hon. Friend commit to speak to the Secretary of State for Work and Pensions about actively playing a role in making sure that those people can be re-employed somewhere else?
Amber Rudd
I thank my hon. Friend for that question, and we have, of course, spoken already this week about this matter. I have also spoken to his neighbour, whose constituency covers half the Rugeley power plant area. I will, of course, actively engage with my hon. Friend and his colleague to make sure that we do what we can for the people who have lost their jobs.
George Kerevan (East Lothian) (SNP)
Given that the timetable for the closure of coalmines is linked to the construction and bringing online of new nuclear power, and given that the board of EDF—a cash-strapped company that is dripping with debt—has this month yet again postponed giving a green light to the construction of Hinkley C, will the Minister commit to meeting EDF’s board and reporting back urgently to the House as to what the project’s status actually is?
Amber Rudd
I would dispute with the hon. Gentleman the direct connection he has made. The closure of coal will be part of a consultation, but it is influenced by many different things, including the age of the fleet, the wholesale price that is being delivered and other matters. On his question about EDF, may I reassure him that I have regular conversations with the board and the chief executive? I am confident that we will have good news soon.
Dr Alan Whitehead (Southampton, Test) (Lab)
The Secretary of State, in her energy reset speech, said that taking “coal off the system” by 2025 will
“only proceed if we’re confident that the shift to new gas can be achieved within these timescales.”
Bearing in mind that no new large gas-fired power station has commenced building in the past six years, and that the last two capacity auctions have underwritten the building of only one power station, which will probably not be built, what plans does she have to procure the building of new gas-fired power stations to ensure that her pledge is actually met?
Amber Rudd
The hon. Gentleman is absolutely right: the plan is to move from coal to gas so that we can reduce our emissions and have secure investment going forward. I am delighted to say that the Carrington closed cycle gas turbine will commission next year, and we have 12 additional CCGTs commissioned. I have also stated that we will have the capacity market adapted to make sure that we can deliver gas. It is going to be an essential part of the low-carbon mix, and it is this Government who are making the plans and securing energy sources for the future.
Ian Blackford (Ross, Skye and Lochaber) (SNP)
8. If she will create one national electricity distribution market.
Mike Wood (Dudley South) (Con)
9. What steps the Government are taking to increase the contribution made to meeting targets on energy efficiency and on the use of low-carbon energy by residential buildings; and if she will make a statement.
The Secretary of State for Energy and Climate Change (Amber Rudd)
Our new domestic supplier obligation will provide support to over 200,000 homes per year from 2017 for a period of five years by improving energy efficiency, tackling fuel poverty, and continuing to deliver on our commitment to insulate 1 million more homes during this Parliament.
Amber Rudd
My hon. Friend is absolutely right to raise this. We will engage with the industry in order to reform these grants—the renewable heat incentive and ECO, the energy company obligation. The Sustainable Energy Association is one of the stakeholders we will work with to make sure that our reformed system delivers even better value for the people who are really in need.
Dan Jarvis (Barnsley Central) (Lab)
We know there is a link between cold homes and excess winter deaths. Last winter, 43,000 people died completely unnecessarily as a result of the cold. What work is the Secretary of State doing with colleagues at the Department of Health to reduce excess winter deaths, specifically by ensuring that households meet minimum energy efficiency standards?
Amber Rudd
The hon. Gentleman is absolutely right to point this out. Any excess winter deaths are too many, and we work very hard across Departments to make sure that we do what we can to help people who are in the poorest homes. We do work with the Department of Health, but also with the Department for Communities and Local Government. There is more we can do through regulation to address cold homes and some of the energy efficiency measures that I would like to put in place in existing homes.
Steve Brine (Winchester) (Con)
Yesterday the Park Homes Owners Justice Campaign was here launching its new PARK-LINE helpline and talking to Age Concern about its warm homes campaign. It then delivered a petition to the Secretary of State. Can she confirm that she has it and will give it active and proper consideration?
Amber Rudd
I did receive the petition yesterday. We have already taken steps to help people in park homes by ensuring that they are eligible for the warm home discount of £140 and can apply for ECO where appropriate. However, I am always looking for opportunities to be more helpful and to give more support for people in need, so I will look carefully at the petition.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
The Data Communications Company is an integral part of the roll-out of the Government’s smart meter programme, but it is now nine months behind schedule, and the delay is narrowing the window for the installation of SMETS 2 meters, with the risk that any additional cost might be borne by consumers. At the very minimum, can we have an updated impact assessment to reflect these delays and ensure that we are getting value for money for customers?
Amber Rudd
I can assure the hon. Gentleman that we are making good progress on smart meters. My colleagues and I have regular meetings with the energy companies about progress, and some of them are even ahead of schedule. However, we will continue to monitor the situation and continue to ensure that customers get the best value from smart meters, because this is an incredibly important infrastructure project that will help to reduce bills.
Graham Evans (Weaver Vale) (Con)
10. What steps she is taking to safeguard protected areas from shale gas development.
Cat Smith (Lancaster and Fleetwood) (Lab)
11. What discussions she has had with her Cabinet colleagues on limiting climate change to prevent greater future expenditure on adaptation.
The Secretary of State for Energy and Climate Change (Amber Rudd)
I am clear that the only way to address climate change effectively is through global action, building on the global agreement that the UK was instrumental in achieving in Paris in December. All countries need to act if we are to bring down emissions and minimise adaptation costs in the future. I want the UK to continue to set an example by addressing the 1.2% of global emissions that we are responsible for, while at the same time continuing to grow our economy.
Cat Smith
The Government’s advisers have warned them that if global temperature rises are not limited, there will be a big increase in flooding in the UK. The effects of flooding were felt acutely in the Lancaster district during Storm Desmond, when our substation was flooded and we lost the electricity supply for three days, affecting tens of thousands of homes and businesses. Will the Secretary of State commit to upgrading our adaptation plans, including our flood defence budgets, especially those for defending our electricity supplies?
Amber Rudd
I am aware of the impact of flooding in the hon. Lady’s constituency, and I remember her speaking during the debate that we had on the subject with the Department for Environment, Food and Rural Affairs. The best way to address dangerous climate change and its potential impact on extreme weather events is to get a global deal, which is why we have been so focused on trying to do so. I reassure her that I will work closely with my colleagues in DEFRA to ensure that we have a national adaptation programme in place.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
One thing that we have to do in the UK to meet our obligations under that international deal is to reduce further our emissions from buildings. When people buy a more efficient car, they pay less tax than they would on a less efficient model. Should not the same apply to the taxation of buildings?
Amber Rudd
I agree with the hon. Gentleman that addressing buildings is an incredibly important part of trying to meet the renewable energy targets that we have set for 2020 through the EU. I am working closely with the Department for Communities and Local Government to see what action we can take to address that, but buildings are an important part of the mix.
Mr Speaker
I would be reassured to know that the Secretary of State does not literally address buildings.
Barry Gardiner (Brent North) (Lab)
Surely one of the most important things that the Secretary of State can do to limit climate change is publicly to state how she will meet the shortfall in our legally binding renewable targets for 2020. She knows that beyond 2017, her Department projects a 25% shortfall across the heating, electricity and transport sectors. The Eurostat data released yesterday show the UK to be missing its target by the widest margin of any European country. What assessment has she made of the potential fines the UK may face as a result of that failure?
Amber Rudd
I do not share the hon. Gentleman’s catastrophic view of the progress that we have made. We already have nearly 25% of our electricity coming from renewables, and we believe that we may well exceed our target of 30% by 2020. In terms of the overall renewable target, I hope he will welcome, as I do, the fact that we have already exceeded our interim target, which was 5.4%; we are now at 6.3%. However, we are aware that we need to make more progress, and we have set out clearly what we will do during this Parliament to address the shortfall.
Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
13. What steps her Department is taking to ensure the long-term future of the offshore wind industry.
The Secretary of State for Energy and Climate Change (Amber Rudd)
My hon. Friend will be aware that I announced last November that, in addition to the 10 GW I expect to be installed by 2020, the UK could support up to 10 GW of new offshore wind in the 2020s, subject to costs coming down. The next contract for difference round will take place by the end of this year, and I will set out further information in due course so that potential bidders can start planning their bids.
Oliver Colvile
I thank my right hon. Friend for that answer. Offshore wind is an important part of renewable energy policy but so, for that matter, is marine energy. What progress have the Government made on the marine energy park to be situated down in the south-west?
Amber Rudd
I am aware of the good work that my hon. Friend has done this year and the progress he has made, and that Plymouth’s world-leading expertise is at the heart of the south-west marine energy park. Last year, I was delighted to host, with him, a conference in Plymouth to take forward marine energy planning. I can reassure him that we will continue to work with him to ensure that Plymouth stands at the front of any marine energy park.
Nic Dakin (Scunthorpe) (Lab)
The development of Hornsea Project One by DONG Energy will be funded by UK taxpayers and UK energy bill payers. How will the Government use their new procurement guidelines to ensure that UK content, such as UK steel, is used in that development?
Amber Rudd
The hon. Gentleman is absolutely right to raise this matter. May I reassure him that we are having regular meetings with DONG and with the MPs involved to ensure that the UK content is as high as possible, within the procurement rules?
Jim McMahon (Oldham West and Royton) (Lab)
15. What steps her Department is taking to ensure that changes in gas prices are passed on to consumers.
Martyn Day (Linlithgow and East Falkirk) (SNP)
16. What steps she is taking to ensure that reductions in the wholesale price of energy are passed on to consumers.
The Secretary of State for Energy and Climate Change (Amber Rudd)
As the hon. Gentlemen may be aware, average domestic gas prices fell by £37 during 2015. Six major suppliers have announced a further cut in their tariffs; two more have announced that this morning. It is a good start, but the Government expect all suppliers to pass on reductions in the costs of supplying energy to consumers. I have met all the major energy suppliers in recent months to make that point clear.
Jim McMahon
Will the Secretary of State join me in celebrating the work of our local councils in assisting people to save energy? Oldham Council’s collective buying scheme has attracted 8,700 households to sign up to it, each of which will save about £170. In Nottingham, the first local authority energy company, which employs 30 staff, is hoping to sign up 10,000 households.
Amber Rudd
I will join the hon. Gentleman in congratulating his council on doing that. Some individual councils are doing exceptionally good work on group switching and are trying to help their constituents. I visited Nottingham last year to see the good work that has been done there. I hope that more councils will follow that lead.
Martyn Day
Does the Secretary of State think that the Competition and Markets Authority should, as part of its investigation into the energy market, introduce measures to make switching suppliers easier, as the consumer group Which? has called for?
Amber Rudd
Like the hon. Gentleman, I am impatient to receive the comments of the Competition and Markets Authority. It was predominately to address the difficulties with switching and the difficulties that some consumers find in engaging with the energy market that the Prime Minister referred the energy market, via Ofgem, to the authority. I certainly hope that it comes forward with such suggestions.
Lisa Nandy (Wigan) (Lab)
Just over a year ago, the Government announced an investigation into whether families should pay less for their energy because of the fall in the wholesale price of gas. The Chancellor told The Telegraph:
“Falling oil and gas prices should bring cheaper household bills”.
A spokesman added that the Government were conducting a series of studies of utility companies to examine whether action was needed. The investigation was backed by the Prime Minister, the then Energy and Climate Change Secretary and the former Chief Secretary to the Treasury. It was reported that Ministers would be watching the energy companies “like a hawk”. What happened to that study, and what action was taken?
Amber Rudd
I can reassure the hon. Lady that we continue to watch the energy companies like a hawk. I am pleased that we continue to see reductions, with two more being announced just this morning, and I hope she will join me in welcoming them. The great news for consumers is that they are not faced with the price freeze that I cannot forget Labour promised last year. If that had happened, none of these reductions would have taken place.
Mr Speaker
Progress has been rather slow today, on account of some quite long questions and some long answers, but I do not like Back-Bench Members who are waiting patiently to lose out. The hon. Member for Ashton-under-Lyne will not lose out. I call Angela Rayner.
Nusrat Ghani (Wealden) (Con)
T1. If she will make a statement on her departmental responsibilities.
The Secretary of State for Energy and Climate Change (Amber Rudd)
Since the last Question Time, there has been a dramatic fall in the oil price. The Government are clear that the broad shoulders of the UK are 100% behind our oil and gas industry, the hard-working people it employs and the families it supports. The Government have set up the Oil and Gas Authority to drive collaboration and productivity in the industry. We recently set out an action plan to back the export of our world-class skills in oil and gas, and to diversify the economy of the north-east of Scotland, including through investment in exploration, innovation and skills.
Nusrat Ghani
Will the Secretary of State outline what progress is being made to secure vital infrastructure investment in the energy sector? Are not thinking for the long term and investing in infrastructure the best way to get secure, low-cost electricity for my constituents in Wealden? Before I forget, I wish the hon. Member for Bolsover (Mr Skinner) a happy birthday.
Amber Rudd
My hon. Friend is absolutely right. We are tackling the legacy of under-investment, the failure to deliver the next generation of energy projects and the energy security black hole that were left by the last Labour Government. We are getting on with the job of building a system of energy infrastructure fit for the 21st century. We have made substantial progress in securing infrastructure investment. The UK has enjoyed record levels in the deployment of renewables over recent years and it maintains a healthy energy investment pipeline, as is shown in our national infrastructure plan.
Lisa Nandy (Wigan) (Lab)
Last week, a Bloomberg report showed that the UK is the biggest beneficiary of European Investment Bank funding for clean energy projects and we are the third largest recipient of the new European fund for strategic investments, which is being spent mostly on energy. Some 70,000 jobs are expected to be created as a result. Does the Secretary of State agree that that is further evidence that Britain should stay in the European Union?
Amber Rudd
There are, of course, tremendous benefits from a united energy market, and I am interested and excited to work on the progress of the energy union.
Sir David Amess (Southend West) (Con)
T4. Will my right hon. Friend ensure that energy companies automatically switch their customers to the cheapest tariff possible, because many constituents find the current system confusing and somewhat disappointing?
Amber Rudd
My hon. Friend puts his finger on a sensitive and tricky issue about delivering the best for consumers, which is what the Government want to achieve, while also encouraging competition. I ask him to wait for the Competition and Markets Authority report, which I hope will address the issue, and then I believe we will make some progress.
Callum McCaig (Aberdeen South) (SNP)
At Prime Minister’s questions on 27 January, the Prime Minister said about oil and gas:
“I am determined that we build a bridge to the future for all those involved”—[Official Report, 27 January 2016; Vol. 605, c. 260.]
Following his visit to Aberdeen, it is clear that that bridge will be built on the cheap. Industry needs meaningful support in the forthcoming Budget, so can we have less talk about the broad shoulders of the UK, and will the Secretary of State put her back into delivering the change we need?
Amber Rudd
The hon. Gentleman is being a little churlish about the significant investment that the broad shoulders of the United Kingdom are putting into the north-east, particularly to ensure that jobs and skills are secured. I am working across Departments, and chairing a ministerial group, to ensure that those skills are preserved, and I will be working with the Department for Business, Innovation and Skills to ensure that we have a taskforce to take that forward. I hope he will also welcome the £250 million put into Aberdeen for its city deal, but there is a lot of progress to be made and a lot more to take forward.
Mike Wood (Dudley South) (Con)
T6. Will the Secretary of State consider how the current system model, including the National Infrastructure Commission, National Grid and Ofgem, could be reformed to make it a more flexible and independent part of an energy infrastructure that is fit for the 21st century?
Amber Rudd
My hon. Friend has a great deal of experience in this sector, and he will be aware, as I am, that National Grid as system operator has played a pivotal role in keeping the energy market working. As our system changes, we must ensure that it is as productive, secure and cost-effective as possible. There is a strong case for greater independence for the system operator, to allow it to make the necessary changes, and we will work alongside the National Infrastructure Commission to consider how best to reform the current model.
Patrick Grady (Glasgow North) (SNP)
T2. As Valentine’s day approaches, will the Secretary of State support the climate coalition “Show the love” campaign and encourage all Members to wear the green hearts that we have been sent, which symbolise how so much of what we love, wherever we are in the world, is affected by climate change?
Amber Rudd
That is a very interesting approach, and it is always good to welcome Valentine’s day. Perhaps the hon. Gentleman could give one of those hearts to the birthday boy who is sitting in front of him.
Jason McCartney (Colne Valley) (Con)
T7. Dozens of my constituents are employed in the solar power industry, and I meet them regularly. May I add my voice to that of my hon. Friend the Member for Cheltenham (Alex Chalk) in asking the ministerial team to continue to assess and analyse what effect the changes to solar subsidies are having on microbusinesses and small and medium-sized businesses that are engaged in the solar industry?
Owen Thompson (Midlothian) (SNP)
T3. Pinsent Masons recently published a report on the prospects for the oil and gas sector in 2016, which highlighted that 67% of oil and gas executives see the UK as a prime opportunity for growth over the next three years, under the right fiscal environment. What fiscal support is being considered for the oil and gas industry ahead of the Budget?
Amber Rudd
The hon. Gentleman will be aware that fiscal changes are the responsibility of my right hon. Friend the Chancellor of the Exchequer, but I reassure him that we take seriously the support that we want to give to the UK continental shelf and all the jobs around it. I chair the cross-ministerial group, which also includes a member from the Treasury.
Peter Aldous (Waveney) (Con)
The new Anglia local enterprise partnership’s oil and gas taskforce has developed a package of measures to support businesses and workers at this difficult time. Will the Secretary of State consider a proposal from the LEP for the Government to match the local funding that it is providing?
Amber Rudd
I hesitate to agree to any financial commitments in this Chamber, but I am always interested in looking at proposals from my hon. Friend.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
T5. What progress is the Secretary of State making on getting state aid consent for the strike price for island communities in offshore wind projects? When does she expect to go out to consultation on what that strike price should be?
Tom Brake (Carshalton and Wallington) (LD)
T8. What plans does the Secretary of State have to allow large-scale solar generators to apply for a contract under the contract for difference mechanism?
Amber Rudd
We do not have plans at the moment for a large-scale solar contract. What we have found is that the large-scale ground mounted solar industry has confirmed to us that it does not need any subsidy and that because costs have fallen to such a great degree, it can continue, subject to planning permission, to develop and to supply electricity without a formal contract. That is surely in the better interests of the taxpayer and the bill payer, if it can be achieved.
Antoinette Sandbach (Eddisbury) (Con)
Given that Cheshire has a centre of excellence in relation to the nuclear industry, what steps are the Government taking to ensure funding for new nuclear centres in the universities in the north of England?
Amber Rudd
My hon. Friend may be aware that in the recent spending review one area where we did get an increase was in innovation. Specifically, we have allocated half of the new increase for small modular reactors. We are working on delivery in that area with universities and with Innovate UK and we will continue to do so.
Diana Johnson (Kingston upon Hull North) (Lab)
T9. The Select Committee has found that scrapping the Government’s support for carbon capture and storage technology puts at risk the UK’s international commitments on tackling climate change and makes it more expensive to do this. We have also lost out on about £250 million-worth of EU investment. Can the Minister just explain to me how this makes sense?
Ian Lavery (Wansbeck) (Lab)
This morning, energy experts reported that we were way behind on the target emission levels set at the Paris COP and in the fourth carbon budget. This comes only weeks after the important agreement in Paris. How on earth can this be the case?
Amber Rudd
The hon. Gentleman might be aware that the Paris agreement called for temperature increases to be limited to a maximum of 2°, yet the intended nationally determined contributions—the voluntary contributions from each country—only reached 2.7°, so that comes as no surprise. Everyone who signed up to the agreement—let us celebrate the fact that nearly 200 countries did so—knows that there is more work to do. It is not the end of the journey; it is just the start.
Several hon. Members rose—