Oral Answers to Questions
Chris McDonald Excerpts(1 week, 1 day ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
Happy new year and happy Epiphany, Mr Speaker.
Alongside my right hon. Friends the Secretaries of State for Energy Security and Net Zero and for Business and Trade, I am committed to slashing energy costs for British businesses. From April, eligible energy-intensive industries will see an uplift in compensation for electricity network charges, with 90% of costs being covered. We are also consulting on a British industrial competitiveness scheme that includes our plan to exempt over 7,000 businesses from covering the costs of some our historic renewables levies.
Dr Chambers
Small and medium-sized businesses are the absolute lifeblood of our economy. Many of them, including the amazing Bar Lento—a Spanish café in Winchester that I spend a lot of time in—are the beating hearts of our communities. The average electricity bill for a small business is now £240 a month, and 92% of such businesses say that they will increase prices to deal with energy volatility. Unlike households, businesses do not benefit from an energy price cap, so they face the consequences of energy volatility all the time. Does the Minister agree that this is failing small businesses, and will he commit to a review of how to end the wild west of energy regulation?
Chris McDonald
The hon. Gentleman raises the issue of energy volatility. I hope that it was clear in my previous answer that the Government are not satisfied with the position as it is. Of course, that energy volatility has historically been caused by our reliance on oil and gas and on petrostates and dictators. Clearly, the Conservatives wish to return to that policy. This Government’s clean power mission will ensure that we have energy security for the future. Unlike the climate-denying policies of the Conservatives and Reform, which would destroy jobs and investment in this country, our policies will deliver energy security and green energy for our small and large businesses, and for domestic consumers.
Rachel Taylor (North Warwickshire and Bedworth) (Lab)
Many pupils have returned to cold school classrooms this week. That is why I am delighted that Kingsbury school, St Michael’s Church of England academy and All Saints Church of England academy in Bedworth, and Ash Green school, have all received funding to install solar panels. Will the Minister outline what support those schools will receive to install the panels, and how the panels will help them to cut their energy bills?
Mr Speaker
That kind of relates to education. Can you bring it back to energy, Minister?
Chris McDonald
I think this shows how committed the Government are to supporting a reduction in costs across all our services, including education and health, through the installation of solar panels. We saw a massive increase in solar installations in the UK last year—equivalent to enough energy generation to power 2 million homes. Not only do solar installations benefit our domestic consumers and enable the creation of green energy, but by installing solar on rooftops such as those of schools and hospitals, we are taking maximum advantage.
Steve Yemm (Mansfield) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
In the autumn Budget, the Chancellor announced the transfer of the £2.3 billion reserve to members of the British Coal staff superannuation scheme. Almost 40,000 former mineworkers and colliery staff received their first bonus increase before Christmas, with an average uplift of £100 a week, or a one-off £5,500 lump sum for backdated pensions. That is the difference that this Labour Government are making for coalfield communities.
Steve Yemm
On behalf of many former mineworkers in my constituency who have had that pension reserve fund returned, I thank the Minister and his colleagues for supporting coalfield communities like mine. He will also be aware of my letter last month asking about the future sharing arrangements for scheme surpluses for both the mineworkers’ pension scheme and the BCSSS. Will he provide some clarity on how the Government intend to proceed to resolve this final outstanding injustice?
Chris McDonald
I thank my hon. Friend for the leadership that he has shown on this issue in the House, and for his letter last month. I can inform him that I am meeting the trustees of the mineworkers’ pension scheme on 4 February and of the British Coal staff superannuation scheme on 18 February. The focus of both those meetings is how we can deal with surplus sharing for the future, and I am keen for it to be resolved as soon as possible.
Peter Lamb (Crawley) (Lab)
Christine Jardine (Edinburgh West) (LD)
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
The transition to clean energy is the greatest opportunity we have for good job creation across the whole country, with 40,000 extra clean energy jobs in Scotland alone. That is why we published the clean energy jobs plan in October, which sets out how we will work in partnership with industry and trade unions to deliver these jobs.
Christine Jardine
I appreciate the Minister’s answer. Those 40,000 jobs are vital, but they are still outnumbered by the many thousands of jobs in the oil and gas sector. The rate of job losses there is accelerating, and people are increasingly going abroad, creating a concern that the skills necessary for the green transition will be lost. What will the Government do to create transitional training and job movement within those two sectors?
Chris McDonald
This Government recognise the importance of the North sea oil and gas industry, and the importance of oil and gas for decades to come, but we also recognise that the North sea is a declining basin. That is why we published our North sea plan, which supports the transition of workers in the North sea into clean energy jobs, and why we are investing in our clean industry bonus, which incentivises businesses that are investing in offshore wind to ensure that those offshore wind jobs are located here in the UK—a fundamental difference between this Labour Government and the previous Conservative Government, who were happy for those jobs to be based in other countries in Europe.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
When it comes to creating clean jobs and local wealth, there is no better example than the community-owned wind farm sector in my Na h-Eileanan an Iar constituency. I welcome what the Government have done to clean up the grid connection queue, but the community-owned wind farm sector in my constituency is still stalled and cannot get access to the national grid. The National Energy System Operator, Ofgem and private companies all want to promote community energy, but unless Ministers direct the regulators and grid operators to give priority to community-owned wind farms, that will not happen. I would like to discuss this issue with Ministers, but I also ask them to come and see how community-owned wind farms create wealth and clean jobs in my area.
Chris McDonald
We do recognise the previous issues around grid connections, and accelerating and prioritising connections is something that this Government have taken by the scruff of the neck. I am sure that the Energy Minister will be very happy to meet my hon. Friend—I think we will have a bit of fight to see which of us has the opportunity to visit his most beautiful part of the country.
Llinos Medi (Ynys Môn) (PC)
The contracts for difference budget is vital for job creation and the growth of the marine energy sector, yet the latest round removed the tidal stream ringfence and cut emerging technology funding. Can the Minister explain why these changes were made, and will he meet me to discuss how marine energy projects, such as Morlais in Ynys Môn, can get the support they need to succeed?
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.
Carla Denyer (Bristol Central) (Green)
Mr Speaker
Order. We are doing topicals, and that is definitely not a topical.
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
Having slightly strayed into the area of the Department for Education earlier, I think it best that I stay out of the area of the Department for Transport. I will, however, ensure that the question is passed on to the relevant Ministers for a response.
Oral Answers to Questions
Chris McDonald Excerpts(3 months ago)
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Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
I am delighted that my first outing at the Dispatch Box is to answer a question from my hon. Friend, and on a topic that we have worked on so much over the past year. We on the Labour side know that net zero is the greatest economic opportunity of our generation. Unlike the previous Conservative Government, which allowed industry to wither, we do not accept that decarbonisation means deindustrialisation. Through our modern industrial strategy, we are working with business to help it to invest, grow and meet our climate ambition.
Gareth Snell
I congratulate the Minister on his well-deserved elevation to the Front Bench. He has worked quite hard with the ceramic sector on this issue. Energy-intensive industries, such as ceramics, are at the mercy of an international gas market over which very few countries have direct control, but one of the things that could help is looking at electricity costs. May I therefore encourage the Minister, in his new role, to consider expanding eligibility for the supercharger scheme so that energy-intensive industries, such as ceramics, can benefit from the support available until the supercharger scheme comes online in 2027?
Chris McDonald
My hon. Friend raises an important point about the scope of the supercharger, which we are going to look at in 2026. He will be aware that some parts of the ceramics supply chain can access the supercharger, but I too am concerned about the impacts of high energy costs on the ceramics sector. I will meet the head of Ceramics UK this month, I am chairing a meeting of the Energy Intensive Users Group, and I look forward to further engagement with the sector in the new year.
Richard Tice (Boston and Skegness) (Reform)
I welcome the Minister to his place. Talking about industry, the Lindsey oil refinery in Lincolnshire is in receivership and is currently being sold, but thousands and thousands of jobs are at risk and the workers there are desperately concerned that the Department for Energy Security and Net Zero and the official receiver are not running a proper process, frustrating potential bidders for the whole site. Will the Minister, in his new job, commit to helping ensure that the whole site is sold to a successful bidder?
Chris McDonald
The hon. Member said that thousands and thousands of jobs are at risk in this country; they are at risk from the climate-denying policies of Reform. The Institution of Chemical Engineers reported last week that there are 800,000 jobs in the green economy in this country—thousands and thousands in the constituencies of every single Member in this House—and the hon. Member’s party is putting that investment at risk.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
How many jobs have to be sacrificed on the altar of this Secretary of State’s vainglorious eco-zealotry before the Government acknowledge the utter destruction of the UK’s industrial base that is being wreaked by policies driven by an out-of-touch green lobby that has captured what is laughably still called the Department for Energy Security?
Chris McDonald
It is no wonder that there is so much laughter around the Chamber, because the policies of the previous Conservative Government saw industry decline. They were prepared to let industry decline because, fundamentally, they do not believe in industry, and now we find that they do not believe in climate science. We on this side of the House know that we can achieve decarbonisation in this country by winning investment from industry—investment that is coming in from all around the world. Our policies are giving industry the confidence to invest in creating jobs here in the UK.
Andrew Bowie
On their watch, two oil refineries have closed in just one year, with Jim Ratcliffe warning of a million job losses to come. Thousands are being laid off in the North sea, as companies divest themselves of assets and investment dries up. Factories are closing and plants are shutting down. It is no wonder that the head of Unite the union is calling for the Secretary of State to be sacked. We know that the Prime Minister tried to do that but failed, so, short of that, will they instead consider our plans, which would save industry and jobs: scrapping the Climate Change Act 2008, scrapping the levies, scrapping the windfall tax and putting cheap energy first?
Chris McDonald
I would like to thank the Minister for reminding the House of the litany of errors that we had to pick up when we came into office. My portfolio is filled with companies that have struggled so much over the past 10 years, but those companies now find that they have a partner in Government who will work with them to attract the investment to build jobs in the UK. If the Opposition do not like those jobs, they can continue as they are.
Mr Will Forster (Woking) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
We want to make sure that businesses benefit from our clean energy mission, especially those in vital industries such as brewing. Our forthcoming carbon budget and growth delivery plan and our refreshed industrial decarbonisation strategy will help to provide further clarity for such businesses, including on how we intend to support them to electrify.
Mr Forster
One of the many brands of Woking-based Asahi is Cornish Orchards, which has recently decarbonised and cut its emissions by 94% by investing in renewable energy. Does the Minister agree that that is exactly the sort of innovation we need? What further steps will his Department take to ensure that the brewing industry can decarbonise and use renewable electricity a lot more than it does currently?
Chris McDonald
I commend Asahi, which I know is an important employer in the hon. Member’s constituency, for its work on decarbonisation and also for being my favourite Japanese beer. In a previous life, I worked as a fitter’s mate in a brewery, and I know how difficult it is to decarbonise the process there. Maybe it is something I should learn more about, and I would be very happy to come along to Asahi if I were invited.
Mr Richard Quigley (Isle of Wight West) (Lab)