(6 days, 5 hours ago)
Commons Chamber
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
I will start with some facts: energy security is national security, global instability is rife, and our closest ally is now, at best, hugely unpredictable, and it is questionable whether it is reliable. When the UK Government should be protecting energy supply, they are instead sacrificing North sea jobs and communities on the altar of ideology. Job losses continue month on month, and the loss of skills is rife. “Just transition” are mere words for the communities affected. For me, this is a repeat of what Thatcher did to Scotland’s mining communities and the steel industry in Motherwell in the ’80s, destroying an industry without proper future planning and transition arrangements. Scottish Labour MPs—indeed, all Labour MPs—should be ashamed of their Government’s actions in that regard. It is utterly shameful.
Brian Leishman (Alloa and Grangemouth) (Lab)
I thank the hon. Gentleman for giving way, which is generous of him. I have been very critical of my Government in relation to the closure of Grangemouth refinery, but I will give you the opportunity of being critical of your Government’s inaction on the issue.
Graham Leadbitter
I think I am here to scrutinise what your Government are doing—that is the job of MPs in the House of Commons. I would also say that Conservative Members are no better on this. Government Members have an ideology of driving towards net zero and clean power, but it appears with no regard for the North sea; Conservative Members have an ideology of protecting oil and gas in the North sea, while getting rid of climate change targets. The industry does not like either of those positions—not the oil and gas sector, and not the renewables sector—and everybody in the Chamber knows that. Those sectors need each other to survive, and they need the skills to transition from one to the other. If we lose skills in the oil and gas sector, we will not develop the renewables sector as quickly as we need to, and those are the facts of the situation. If those skills and jobs are lost, or disappear into other places around the world, such as the Caspian sea or the Gulf of Mexico, they will not easily be brought back.
Brian Leishman (Alloa and Grangemouth) (Lab)
I would like to draw the House’s attention to my membership of Unite the union.
I agree with my right hon. Friend the Member for Oxford East (Anneliese Dodds): the framing of this debate is somewhat misleading. The Conservatives and Reform have no real desire to lower people’s bills; nor are they interested in saving jobs or the prosperity of working-class communities. We can see that from looking at history. Let us look at the coalmines: right hon. and hon. Members on the Conservative and Reform Benches would have been on the side of Thatcher, MacGregor, Ridley, Walker and Heseltine. This debate is really about Tory and Reform Members revelling in the free market. The only extraction they really care about is that of corporate profit and shareholder dividends.
I am ideologically opposed to the Conservatives and Reform UK, but what really pains me is being at odds with my own party. I have been clear that there should be no ban without a plan, and there really must be a plan, because the danger is that oil and gas workers will become the modern-day coalminers. Thousands of workers are nervous about what the future holds, and they are right to be—they have seen billionaire Jim Ratcliffe’s Ineos and the Chinese state company PetroChina close the Grangemouth oil refinery, ending 100 years of Scottish industrial history. The Conservative Government did not want to know about the issue, and the SNP Government refused to engage with Ratcliffe, the Chinese and the trade unions that represent the workers even, though they knew about the planned closure for three years. The SNP abandoned the workers in the Grangemouth community.
Some £434.5 million has been committed for Grangemouth’s industrial future from this Labour Government—I have had to fight tooth and nail for it. The excellent news is that 500 jobs in the chemical industry have been saved, and that Project Willow is starting to deliver new jobs through the MiAlgae and Celtic Renewables announcements. However, I say to the Minister that the Government must match their ambitions with much more action. That means providing thousands of good, well-paid jobs and getting the new industries we need into Grangemouth and other industrial towns like it. There is still more than £190 million available in the National Wealth Fund for my constituency—we should start using it.
I also say to the Government that it is common sense to take at least some form of ownership in these new clean, green industries. They should break the cycle of reliance on private capital, foreign ownership and volatile fossil fuel markets and do more of what a Labour Government should.
For the final Back-Bench contribution, I call Gregory Stafford.
(3 weeks, 4 days ago)
Commons ChamberI agree with my hon. Friend that driving to renewables and clean, home-grown power is crucial. I would also say, as I know she takes an interest in these things, that the North sea continues to play an important role in our energy mix and will do so for decades to come.
Brian Leishman (Alloa and Grangemouth) (Lab)
It is interesting to note that, for the duration of this statement and the question and answer session, there has been zero participation from the SNP and Reform, which goes to show exactly how much both parties care about Scotland’s energy security.
I appreciate that the Secretary of State will not be able to give an in-depth response at the Dispatch Box, but can he give any update on Project Willow at Grangemouth? Specifically, I want to know about the future jobs coming to the town and any potential Government ownership to secure our industrial security and Scotland’s energy sovereignty.
My hon. Friend is a very important advocate for his constituents and, indeed, for Project Willow. He will know that we have made a number of announcements about Grangemouth in recent months, but I can assure him that we will continue to drive forward on Project Willow. The Prime Minister has set out that £200 million will be available from the National Wealth Fund. We continue to work with private industry, because we are determined to create a future for Grangemouth and its communities.
(1 month, 2 weeks ago)
Commons ChamberWe will take no lectures from the right hon. Lady on the cost of living crisis, because her Government presided over the worst cost of living crisis in generations. Let me tell her what we are doing: £150 off bills; the warm home discount extended; the warm homes plan. We have done more in 18 months to cut bills for people than they did in 14 years.
Brian Leishman (Alloa and Grangemouth) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
My hon. Friend does a good job of standing up for workers in his constituency and, following the statement that I made in the House before Christmas, he will know very well the views of the Government on this closure. I was pleased to attend the local taskforce recently with my hon. Friend the Member for Cowdenbeath and Kirkcaldy (Melanie Ward). Along with the investment that the Government are making in Grangemouth and the guarantee of an interview for workers from Mossmorran at Grangemouth, our focus is on supporting the workers and the local community. A significant investment by the Government in the local area stands in stark contrast to the SNP Scottish Government, who have limited their support to £3 million a year.
(2 months, 2 weeks ago)
Commons ChamberI thank my right hon. Friend the Father of the House, who makes an important point and strengthens the argument I was trying to make. We are exporting skilled jobs, and the Government seem to find that acceptable. The Minister has previously stated that the market would adjust as, indeed, it has, but it raises the question of whether, if another refinery were to close, at what point we will recognise that we must retain some refining capacity in the UK—surely for strategic reasons, if no other.
Brian Leishman (Alloa and Grangemouth) (Lab)
I thank the hon. Member for securing this debate and for his Westminster Hall debate. We sit on opposite sides of the Chamber, but I thoroughly respect how much he has stood up for his constituents and the wider oil refining industry in the United Kingdom, and I thank him for that.
I will speak about Grangemouth and specifically the jobs that have been lost there—
Order. The hon. Gentleman will not speak about Grangemouth. The debate is about the Lindsey oil refinery, and interventions must be brief.
Brian Leishman
Thank you, Madam Deputy Speaker. I was under the impression that the debate was on the wider UK refining sector. On that note, we talk about just transition—it is often mentioned in this Chamber—but job losses and no future jobs are the definition of a very unjust transition.
I thank the hon. Gentleman for his kind words. Equally, I recognise how he has stood up for his constituents over the Grangemouth issue, and I compliment him on that.
(2 months, 3 weeks ago)
Commons Chamber
Chris McDonald
Tidal stream is important—I want to be clear about that. We are keen to support it, and we are doing so. The hon. Member mentioned the importance of contracts for difference in supporting marine energy. I previously mentioned the clean industry bonus, and that is exactly how we are doing it: we are using the contracts for difference policy in order to ensure that, through the clean industry bonus, those jobs land in the UK.
Brian Leishman (Alloa and Grangemouth) (Lab)
The Labour Government did excellent work just before Christmas in saving 500 jobs in the chemical industry at Grangemouth. That was real Labour party values in action, but we need to do more. How about investing in or, to be really radical, owning a sustainable aviation fuel-producing refinery at the site? The infrastructure is there, the need for SAF is there, and my people need jobs.
Chris McDonald
I thank my hon. Friend for welcoming that news. I know it was a really big day for him, and his dogged determination to champion his constituents is seen both in his constituency and here in this House. We are supporting Grangemouth, and the MiAlgae project, which was announced by the Chancellor in the Budget, is exactly along the lines that he mentions. He talks about investment in sustainable aviation fuel. Many private companies want to invest in sustainable aviation fuel in Grangemouth, in Teesside, in Humberside and across the whole of the UK, and I am sure we will see more such plants in the future.
(3 months, 2 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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Brian Leishman (Alloa and Grangemouth) (Lab)
It is a pleasure to see you in the Chair today, Mr Western. I thank the hon. Member for Brigg and Immingham (Martin Vickers) for securing this highly important debate, and I draw everyone’s attention to my membership of Unite the union.
Since coming to this place, I have repeatedly raised the issue of the Grangemouth oil refinery closing, with 435 jobs lost on site and 2,822 lost in the wider supply chain. Closure means an end to a century of oil refining on the site and to a generational employer for Grangemouth people. Nearly every family in the town has had someone, or knows someone, who worked at the site. There is no doubt about it: local businesses will feel the pain of the closure. The hairdressers, barbers, small independent retailers, hotels, restaurants, pubs and garages are the very businesses that make up the heartbeat of the local community and the town’s economy. They are all negatively impacted.
The closure is more than just a local constituency issue. It is Scotland’s biggest industrial issue in four decades, it is safe to say, since the end of the coalmining industry. To put the matter into the national context, the Grangemouth refinery was worth more than £400 million per annum to the Scottish economy, according to both Scottish Enterprise and PwC. While conflict rages on in Europe, British people have been susceptible to the resulting price shocks and disrupted supply chains that have impacted the oil industry in Europe. At this perilous time, with refining ending at Grangemouth, Scotland is now in the ridiculous position of importing our own oil. The energy-abundant nation of Scotland is reliant on global logistics and outside influences for our oil products. It is incredible that we have lost our self-sufficiency.
Why has this happened? Why did the refinery close? I will say something different from what right hon. and hon. Members have mentioned so far. Let me be clear: the idea that the Grangemouth refinery closed as part of trying to achieve net zero, or as part of some woke green agenda or an environmental campaign, is utter nonsense. The real reason—the heart of the matter—is Petroineos. It is made up of private capital, Sir Jim Ratcliffe’s Ineos and a foreign Government in the form of Chinese state-backed PetroChina. It controlled the Grangemouth refinery, a key piece of Scottish and British national infrastructure, and closure was a commercial decision.
Closure happened because it was more profitable for a private company to make hundreds of workers redundant and operate Grangemouth as an import terminal. It was international capital concerned with the corporate greed of a billionaire owner, with shareholder dividends their priority. That is the ruthless nature of how international capital works. Ratcliffe has massively weakened Scotland’s national economy and jeopardised our country’s energy security for his own needs. I am disgusted by Governments allowing that to happen, and by the pandering to Ratcliffe in spending billions of pounds to help with the regeneration around Old Trafford and hundreds of millions of pounds to provide a loan guarantee for his plant in Belgium.
I make absolutely no apologies for being ideological. As the country sacrificed state ownership of vital infrastructure, we lost control of our own refinery. We have seen job losses, an exodus of skills and talent, local shops closing and all the social consequences that follow deindustrialisation. That is what has happened to former industrial towns the length and breadth of the United Kingdom. For goodness’ sake! The country needs a different industrial direction, to bring an end to being at the mercy of private capital and foreign Government influence.
There is a clear, coherent case for Government ownership. It is in the public interest. In questions to the Department for Energy Security and Net Zero and to the Treasury, I have asked what ownership stake the UK Government are willing to take in future industries at Grangemouth. I put the same question to the Minister this afternoon.
Just as I make no apologies for being ideological in my opinion of public ownership, I make no apologies for criticising both the UK and Scottish Governments. We know that oil will be part of the energy mix for decades to come, so it is time for both of Scotland’s Governments to be bold. The existing infrastructure of the Grangemouth refinery is largely still in place, and there should be a conversion to sustainable aviation fuel there.
We have signed up to highly ambitious mandates, so let us try to meet those targets. Successful conversion of refineries is there for everyone to see—at La Mède in France, Eni’s Venice refinery in Italy and Phillips’s Rodeo refinery in the US. I say this to the Minister today: what happens at Grangemouth will go a long way in deciding how we shape our future economy, who controls it and who this Government actually serve and work for.
If the right hon. Gentleman wants to intervene, he is more than welcome.
What the Government did not realise at the time is that when they got rid of a coalmine—each coalmine had a football team, a rugby team, a cricket team, a community club, a miners’ welfare, a brass band and a bandstand in the local welfare grounds—it destroyed whole communities, and those communities will never come back. They will never be the same again.
Fast forward 40-odd years and we have a Labour Chancellor and Government, who we would think would protect these industries. Look at the hypocrisy in that part of the world. We have Drax power station, which used to burn coal from a nearby coalmine, just a few miles down the road. I think that was shut about 10 years ago. I remember the Energy Secretary at the time was campaigning to keep it open. How things have changed! The power station now burns wooden pellets from trees chopped down in North America—in Canada. They chop the trees down and put them on diesel-guzzling cargo ships. They then chop them up into pellets using diesel-guzzling machinery on the ship. They then come to this country, are put on diesel-guzzling cargo trains and transported to Drax power station, where we set fire to them. And we say that is renewable energy. That costs the British taxpayer about £1 million a day in subsidies. I think it has cost about £10 billion so far since we have been using wooden pellets there.
Just a few miles down the road we have the perfectly good Lindsey oil refinery, which appears to be doomed, with 400 jobs at risk and a thousand more in the supply chain. If the Government are going to use taxpayers’ money to subsidise industry or keep places open, they should look at the oil refineries, because once they have gone, they are never coming back, and we have lost the community and that sense of pride.
There are not many Government Members here, to be honest—I cannot see many—although I will thank the hon. Member for Alloa and Grangemouth (Brian Leishman) for his passionate contribution. I did not catch most of it because I am a little bit deaf; I will sit a bit closer next time.
We would expect this Labour Government to do a little bit more for these communities. Back in the ’80s, Labour was attacking the Tories for doing exactly the same thing: closing the vital industries. As I say, once the industry has gone, it is gone, and the skills that one generation passes on to another are gone as well. It is all well and good saying to somebody, “It’s okay, you can make windmills or solar panels,” or, “We’ll retrain you in green energy,” but they do not want that. This lot do not understand that there are still men and women in this country who want to get up in the morning and go do a proper day’s graft. They want to set the alarm clock at 10 o’clock at night, get up at half four or five o’clock in the morning and go do a proper day’s graft where they get their hands dirty. It is dangerous, dirty work, and they contribute towards their society by earning decent wages—good wages—and it keeps their communities going. If we lose that, we lose it for ever.
In the last year alone, we have lost a third of refineries, following the closure of Grangemouth, and now Lindsey is obviously doomed as well. That leaves just four refineries in the country. Why is Lindsey closing? Because it is being hit again and again with costs just to stay compliant with the UK emissions trading scheme. We know that to be compliant, refineries are required to submit verified emission reports to the UK ETS authority and to surrender sufficient allowances to meet the total emissions generated. As the hon. Member for Brigg and Immingham (Martin Vickers) said, those costs account for the highest expenditure in a refinery’s operating budget. Just let that sink in: the biggest cost to a refinery is one that has been inflicted upon it for the sole purpose of meeting net zero. In other words, it has been inflicted by this Government and the Energy Secretary.
(8 months, 2 weeks ago)
Commons Chamber
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We are very clear that energy companies have strict obligations to follow. We are working with Ofgem to ensure that it adheres to those obligations, and we are doing the job of reviewing Ofgem to ensure that it is a proper consumer champion, with the mandate and powers to work on behalf of consumers and reform this market so that it works in the interests of the hon. Lady’s constituents.
Brian Leishman (Alloa and Grangemouth) (Lab)
More than 100 INEOS chemical employees are to lose their jobs at Grangemouth because the refinery has closed. The £200 million commitment to Project Willow does not help them in the here and now, and it is frankly an insult to the workers who are about to lose their livelihoods to talk about training opportunities at Forth Valley college that are not being afforded to them. What have the Government actually done and what will they do for those workers who do not have the same redundancy or training package as the refinery workers?
We are looking in the round at how we can deliver jobs and opportunities on the Grangemouth site. The National Wealth Fund made an unprecedented commitment of £200 million, and I have been meeting companies that are potentially interested in developing projects, to make sure we get them over the line. We have delivered on the training guarantee and delivered support beyond that provided by the Falkirk and Grangemouth growth deal. We are doing everything we can to support the workforce there, and we will continue to do so.
(9 months ago)
Commons ChamberI am grateful to the hon. Gentleman for his time earlier today. This will be a distressing issue in his constituency, so it was good to have the chance to speak to him about it. He is right. With this decision having been made last night in the courts and made public this morning, we have not had much time to fully work through the timeline of what will happen in the coming weeks. The Government are funding the official receiver to continue the safe operations of the refinery. The first priority will be to make sure that safe operations proceed, but then we will see whether a buyer is interested in the site. We will then move as quickly as possible, if that is not possible, to see what alternatives there are for the site.
I cannot give the hon. Gentleman assurances on exact timescales at this point, but he can be assured that the Government are determined to do the right thing, and we will do whatever we can to get either a buyer or a sustainable future for the site. I reiterate to the House that this is a difficult set of circumstances with little time to prepare, and the refinery has been loss-making since it was taken over from Total some years ago. It is a difficult position, but we will do everything we can.
Brian Leishman (Alloa and Grangemouth) (Lab)
I am glad that the root cause of the problems that we face has been identified. We have touched on it, but this is what happens when private capital is in charge of such a key piece of infrastructure. We saw that play out at the Grangemouth refinery in my constituency, and it is good to hear my hon. Friend the Minister in agreement with me in condemnation of the owners of the Prax Lindsey refinery. It gives me hope that the Government will learn important lessons and assume at least some form of ownership in the future industries that will be come at Grangemouth and potentially at other sites. Can we get an update on that, please?
My hon. Friend is right to highlight the work that the Government are doing following our £200 million commitment to support the future of Grangemouth through the national wealth fund. There have been 84 serious and credible inquiries about projects there, and I have been meeting those involved in some of those projects to discuss what more the Government can do to ensure that they are delivered. We will say more about that in due course, but we are working collaboratively with the Scottish Government and Scottish Enterprise to bring the projects forward. As we have said since day one, we are determined to deliver a sustainable, viable industrial future for Grangemouth. The difference between Grangemouth and the Prax Lindsey refinery—I want to separate the two slightly—is that while we may have issues with the owners of various sites across the country, an 18-month redundancy package was put in place at Grangemouth and that is not the case in this instance, which is why the Government are particularly calling on the owners of this refinery to do the right thing for the workers there.
(9 months, 2 weeks ago)
Commons ChamberWe know how important carbon capture, usage and storage is—the Climate Change Committee said there is no route to net zero that does not include carbon capture—with, of course, up to 50,000 good, well-paid jobs across the UK. The Government have already shown their commitment to carbon capture with a £21.7 billion investment. I am afraid that the hon. Member will have to wait until the spending review for the final decisions, but I hope he agrees that we are putting in place ambitious, substantial carbon capture plans that will drive growth across the country.
Brian Leishman (Alloa and Grangemouth) (Lab)
Acorn would go some way to reindustrialising areas of Scotland, which is much needed. I welcomed the Government committing £200 million from the national wealth fund for future industry at Grangemouth in my constituency. To avoid us again being in the precarious position of having private-capital or foreign-Government ownership dictate our future energy industries, do the Government plan to take any ownership stake in the industries that will be coming at Grangemouth?
My hon. Friend is right to say that we lost thousands of jobs under the previous Government, whether in ceramics, chemicals or steel. The previous Government saw foundational industries through the rear-view mirror, but we know that these industries will forge our future. That is why we are rushing to get to clean energy by 2030 so that we can bring prices down, why we are supporting our industries through the supercharger, and why through the industrial strategy we are looking to provide more support, not less, to those crucial foundational industries.
(11 months ago)
Commons ChamberAs the hon. Lady will know, we inherited this situation from the last Government, but we set aside £200 million to build the future in Grangemouth and we are working closely with the Scottish Government on precisely that, in a Government-to-Government collaboration. As for the hon. Lady’s wider question about industrial energy prices, we should obviously look at what different sectors are saying.
A lot of nonsense is being talked about steel. UK Steel has said categorically that the difference between our prices and those of continental Europe is a result of our reliance on natural gas power generation. [Interruption.] Opposition Members say “Rubbish”, but that is what UK Steel has said, and that is why our clean power mission is right for families and right for business.
Brian Leishman (Alloa and Grangemouth) (Lab)
Today marks the end of more than a century of refining at Grangemouth. Scotland is once again a victim of industrial vandalism and devastation—and I do not want anyone in this Chamber to dare mention a “just transition”, because we all know that the Conservatives when they were in power, and the Scottish National party currently in Holyrood, have done nothing to avert this catastrophic decision. I put it to the Secretary of State that during the general election campaign the Labour leadership said that they would step in and save the jobs at the refinery. What has changed, and why have we not done the sensible thing for Scotland’s energy security?
My hon. Friend is talking about a very important issue, and Grangemouth has a very important role in Scotland. What I will say to him and to others is that as soon as this Government saw the situation that they had inherited, they put money in to help the workers, and they have made that huge investment commitment of £200 million, working hand in hand with the Scottish Government, so that we can build the future in Grangemouth. We are absolutely committed to building the future for Grangemouth communities, and we look forward to working with my hon. Friend and other Members on both sides of the House to do that.