UK Decarbonisation and Carbon Capture and Storage

Debate between Dan Poulter and Peter Aldous

Tuesday 24th January 2017 Westminster Hall

[Peter Aldous]

I agree that CCS has an important role to play in the regeneration of coastal communities and perhaps areas that have been forgotten over the last few years. That includes the area that the hon. Gentleman represents, many areas in Scotland and the area that I represent.

The report contains six recommendations for how CCS can perform that crucial role. I believe that we reached the right conclusions, for three reasons. First, the UK has made commitments, through the Climate Change Act 2008 and international agreements, to reduce carbon emissions. Those were most recently reconfirmed in Paris in autumn 2015. As a result, we have a duty to put in place measures that will enable us to get on with meeting those targets at the lowest possible cost to the country’s consumers and taxpayers.

It quickly became apparent to the group that we cannot get on with that without CCS. The great advantage of CCS is that it is a highly strategic technology that can deliver emissions reductions across many sectors, including, as we have heard, power generation, energy-intensive industries, heat and transport. It should also be pointed out that CCS has the potential to safely store 15% of current UK CO₂ emissions by 2030 and up to 40% by 2050.

There is a cost associated with inaction on CCS. Last summer, the Committee on Climate Change highlighted that if we take no action on CCS, the cost to UK consumers will be £1 billion to £2 billion per annum in the 2020s, rising to £4 billion to £5 billion per annum in the 2040s.

[Dr Poulter]

I endorse all my hon. Friend’s points. Does the history of renewable energy not show that those who invest early not only reduce their carbon footprint much more rapidly, but save money downstream? It will become much more difficult to invest and much more expensive to the UK taxpayer if we leave this decision for five or 10 years.

[Peter Aldous]

I agree. There is a compelling case for us to get on with this now.

The second reason why CCS is important is cost. That was why the previous pilots failed. The Oxburgh report established that the high costs revealed by earlier approaches in the UK were attributable to the design of the competitions, not the underlying costs of CCS itself. Analysis by the CCS Reduction Task Force and for the Committee on Climate Change, which was confirmed by Lord Oxburgh’s group, showed that CCS can be delivered at approximately £85 per MWh. That is competitive with other large-scale low-carbon energies such as nuclear and offshore wind.

CCS also has what I regard as a unique selling point. Some people might say, “Why us? Why the UK? Let other countries, such as Norway, do the hard legwork to get the technology off the ground. We’ll join the party later.” Such comments are wrong and misplaced, and out of context with what Britain should be doing in this post-Brexit world. The UK has a unique selling point that means that we must be pioneers in the vanguard of the CCS movement. This USP—what unites me in my Waveney constituency in East Anglia with the hon. Members from Scotland and the north-east—is the North sea, the United Kingdom continental shelf, where we have our own large safe and secure CO₂ storage vessel offshore in the rocks in this country’s territorial waters. As a result of the development of the oil and gas industry in the North sea over the past 50 years, the UK has developed an enormous expertise of experience that we can harness to deliver carbon capture and storage.

Yesterday the Government published their Green Paper, “Building our Industrial Strategy”. CCS and implementing the recommendations of the Oxburgh report fit well with the Government’s ambitions and directions of travel. When I go through the pillars underpinning the industrial strategy, CCS ticks all 10 boxes. If the Government accept the six Oxburgh recommendations, they will invest in science, research and particularly innovation. Investing in CCS goes hand in hand with developing skills, boosting science, technology, engineering and maths skills, and raising school levels and lagging areas. I could go through all 10, but I sense my time is pressing, Mr Betts, so I will cut to the chase—to the final pillar of creating the right institutions to bring together sectors and places.

The strategy states:

“We will consider the best structures to support people, industries and places.”

That is a ringing endorsement for the six Oxburgh report recommendations.

On that note, I will conclude. Lord Oxburgh has provided the right framework for an exciting new industry and now is the right time to invest in CCS.

Supported Housing

Debate between Dan Poulter and Peter Aldous

Tuesday 12th July 2016 Commons Chamber

[Peter Aldous (Waveney) (Con)]

I am pleased to have secured this debate in the week before the start of the summer recess. While the Government are carrying out a review of supported housing, it is important both to obtain a progress report from the Minister as to how it is going and to re-emphasise the vital importance of putting the funding of supported housing on a sustainable long-term footing. It is absolutely essential that we do this, so as not to let down a very vulnerable group of people, whether they are elderly, young, have a physical disability, have suffered domestic violence or face mental health challenges. I seek to be helpful and not hostile, but those involved in the sector are very worried about the future, and it is vital that the Government know their concerns and take them fully into account in producing their proposals, which I hope will be available shortly.

The one-year exemption for supported housing from the 1% rent reduction for social housing landlords and the one-year delay in applying local housing allowance caps to residents in supported housing provide some breathing space, but the clock is ticking down to 2017, when this one-year grace period expires. It is important to have new policies in place well before then, so as not only to remove worries about the viability of existing schemes but to act as a catalyst for attracting much needed new investment in the sector.

[Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)]

I congratulate my hon. Friend on securing this debate and raising important issues about the barriers to good care that a lack of the right supported housing can lead to for people with learning disabilities and mental illness. Does he agree that on a daily basis many mental health wards struggle to find suitable step-down and community housing for patients who badly need it because, as he is outlining, this issue has not been properly gripped?

[Peter Aldous]

I thank my hon. Friend and Suffolk neighbour for his intervention. Yes, I agree that we need to tackle this issue very quickly.

This week, I joined the National Housing Federation’s Starts at Home campaign, which aims to highlight the unique benefits of supported housing and to show why it is so important to individuals and society. It seeks to secure a commitment from the Government to ensure that everyone can have a home that meets their unique needs. Over the past three months, I have received representations from, had meetings with and visited a wide variety of organisations, national and local, all concerned about the sector’s future. As well as the National Housing Federation, these include the Home Group, Homeless Link, the Local Government Association, Suffolk County Council, the Salvation Army, Papworth Trust and Give us a Chance, which, as well as providing accommodation, helps young people into work and sustainable employment.

--- Later in debate ---

[Peter Aldous]

My hon. Friend makes a good point. If we raise our eyes and think long term, instead of just short term, savings will be produced that can deliver the far better, high-quality supported housing we need.

[Dr Poulter]

Does my hon. Friend agree that the reality on the ground is that the lack of suitable supported housing is leading to hospitals and mental health wards having to discharge people either on to the streets in some cases, which is most undesirable as they will include some very vulnerable people, or into other very unsuitable housing situations? This issue needs to be addressed, and conversations need to be had with the Department of Health to make that happen.

[Peter Aldous]

I agree. It is important not to look at a specific type of housing in silos, because all types of housing are interrelated: we cause a problem in one, and it has a negative spin-off effect in another.

The prospect of the local housing allowance cap being applied to residents in supported housing after the one-year delay is causing considerable unease and concern in the sector. With housing benefit set to be abolished as part of the roll-out of universal credit, it is appropriate for the Government to review the future funding of supported housing. However, feedback from the National Housing Federation reveals that the threat of a crude LHA cap is having a detrimental effect.

Some 24% of supported housing providers have told the NHF that all their supported and sheltered housing units are at risk of becoming unviable and of closing. It is estimated that 156,000 units of existing supported and sheltered housing would become unviable and at risk of closure; that is 41% of all existing schemes. There would also be an impact on future development, with an estimated 9,270 units in the pipeline not being developed. That represents 80% of the total existing development pipeline and includes more than 8,000 specialist homes for older people and people with disabilities which were announced in last year’s comprehensive spending review.

The cap undermines several pieces of legislation introduced by the last Government. The introduction of specified accommodation in 2014 establishes a precedent of treating supported housing differently from other forms of social housing. In addition to being eligible for higher rates of housing benefit, specified accommodation has been removed from the current universal credit arrangements, and it is also exempt from the benefit cap. Failure to recognise this unique status when applying the cap is not only inconsistent with previous policy, but it also places at severe risk the step Government have already taken to protect housing for the most disadvantaged. It also threatens one of the Government’s own flagship policies, the transforming care programme, which relies on supported accommodation being available in the community.

In 2014 a rental agreement was approved by the Homes and Communities Agency that allowed registered social landlords to increase their rents by inflation plus 1% annually for the next 10 years. The purpose of the agreement was to provide RSLs with a stable base from which to invest in their services, including the provision of new supported housing. By capping social rents, the Government have removed this stability, making it virtually impossible for providers of supported housing to plan future developments. For those who have already invested in new schemes, the cap will also jeopardise their ability to meet the existing financial returns of current investments.

Broadband (Suffolk)

Debate between Dan Poulter and Peter Aldous

Monday 13th July 2015 Commons Chamber

[Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)]

It is a pleasure to bring to the House this evening a debate on an issue that affects not just Suffolk but many rural counties in our country. I wish to put on record my thanks to my hon. Friend the Minister for his work on this issue. I know that he has worked very hard over the past five and a half years to ensure that high-speed and superfast broadband can be rolled out to Suffolk and to other counties. He has visited our county on several occasions, and he understands the challenges that we face. It is the single most important issue facing rural Suffolk and many rural businesses and homes. As my hon. Friend is aware, Suffolk has a population of about 750,000 people and there are about 350,000 premises to which we need to get superfast broadband.

The question is what would happen if the matter were left to the open market. We know that BT’s commercial deployment of fibre-based broadband reached around 50% of Suffolk’s premises, but only in parts of the major towns and cities where it was commercially viable to do so. We know that Virgin Media provides coverage to around 67 premises, which is about one in eight, but only in selective parts of Newmarket, Ipswich and Felixstowe. There are also a number of small-scale wireless broadband providers in some parts of the county, where broadband speeds over BT’s copper network remain poor.

It is not just about homes and businesses, but about other issues including how we develop better public sector services for people in rural areas. We know that delivering more integrated and joined-up healthcare, and delivering care in the homes with telehelp and telemedicine to older people are essential, and the way to do that has to be through improving our broadband and rural connectivity. We also know that education in our schools is hugely supported in today’s world by the internet and the connectivity that the internet brings, but many schools in Suffolk still have very slow broadband speeds, and a number of schools in my constituency are struggling with speeds no better than those of dial-up. This needs to change, and I am grateful for the support that my hon. Friend and the Government have already provided to help address these issues.

Farming and agriculture are the backbone of our rural economy. Farmers tell me they do not have the infrastructure connections to enable fast enough broadband to comply with online Government services, including the new common agricultural policy information services, which require them to submit all information online and have an email connection for communication. This is affecting their ability to innovate and use new farm technology and software, which needs to be downloaded from the internet, and meet other Government regulations such as VAT, vehicle tax and animal tagging. Our farmers need to innovate to increase productivity in order to compete in international markets where higher broadband speeds are the norm. It is for the sake of Suffolk farmers that we talk about the last 5%, which I will speak about later. Farmers and agriculture are important drivers of the rural economy, and for their benefit we will need additional Government support to reach that last 5%—the farm at the end of the dirt track that still does not have broadband and is struggling.

Suffolk and the Broadband Delivery UK rural broadband programme has had some great success. Suffolk was one of the first two local authorities, with Norfolk, to sign a local call-off contract with BT in the first phase of the BDUK rural broadband programme in December 2012 to extend coverage by 100,000 premises to over 80% of Suffolk premises by the end of 2015. There was a grant of almost £12 million from the Government, for which we are very grateful, and that was matched by another £12 million from Suffolk county council. I am pleased that my hon. Friend the Member for Waveney (Peter Aldous) is sitting next to me, because he and I campaigned tirelessly to ensure that we got that money for Suffolk, and we are very grateful for the Government support that our county has received.

Suffolk and Norfolk worked closely with BDUK to develop the milestone-to-cash process for in-life management of local call-off contracts with BT, and helped BDUK to train other local authorities around the country. Suffolk has been the first local authority to work with BT to trial a number of new technology solutions as part of the Suffolk deployment, notably wireless to the cabinet technology, which uses a microwave point-to-point radio link, rather than optical fibre cable, to link an enabled cabinet in a village—for example, Tuddenham in my constituency—back to the network, to avoid what would otherwise have been a lengthy and disruptive road closure and high civil engineering costs.

Suffolk has also used copper re-arrangement technology to re-arrange existing exchange-only lines, and lines previously served by other cabinets, on to a cabinet that was to be upgraded with fibre to the cabinet technology. The process was first trialled in Suffolk, and is now being widely deployed across the country. Suffolk has used a number of other technologies, including fibre to the remote node technology and fibre to the distribution point technology—topics which my hon. Friend the Minister may wish to talk further about in his response.

Suffolk has led the way nationally in what we have been doing on delivering faster broadband and superfast broadband to very rural areas—areas where there would otherwise have been commercial failure, areas where operators such as BT and Virgin would not have shown any commercial interest because it was not commercially viable to take superfast broadband to the consumer. That is where the Government money is being spent, and, as a result, Suffolk was the first local authority to sign a second local call-off contract under the superfast extension programme, to extend coverage to a further 50,0000 premises, which means that over 95% of Suffolk premises will be receiving superfast broadband by 2018.

That was supported by a grant of £15 million from the Department for Culture, Media and Sport, matched by another £10 million from Suffolk county council and £5 million from the New Anglia local enterprise partnership. It is an example of Government working with the county council and the local enterprise partnership for the benefit of the county, recognising the importance of supporting rural businesses in Suffolk, and making sure that schools and the health service are considered part of that rural broadband roll-out.

Suffolk has signed up to the accelerated deployment process, agreed between BDUK and BT, to bring forward the end of the second contract by six months from the end of 2018 to mid-2018, so Suffolk is ahead of schedule in the roll-out of the first contract to reach 80% of premises, and moving ahead of schedule also on the second contract. I hope that the Government will recognise and reward Suffolk’s success in rolling out superfast broadband when we come to the third roll-out to the final 5% later this year. There are still questions about how to get superfast broadband to the final 5% in some of the county’s most rural areas, where farms and rural businesses are often operating on dial-up speeds. That situation is clearly unacceptable and needs to change urgently.

Let me set out the current status of the Better Broadband for Suffolk programme. As at the end of June, Suffolk has extended coverage to 90,986 premises, against a target of 100,000, so we are on track to complete deployment under our first contract with BT by the end of September. Those premises would not have been commercially viable and would not have received superfast broadband without support from the Government or the county council. That is a tremendous achievement. Peter Ingram and the Better Broadband for Suffolk team should be commended for all that they have done.

However, there is still more to do. Concerns have been raised with me—I would appreciate it if my hon. Friend the Minister would address these when he responds—about the conduct of BT. In general, Suffolk has a good relationship with BT, and the first contract is on track to meet, or slightly exceed, its coverage target of 100,000 homes by the end of September 2015, and within budget, which is rare for public sector projects.

[Peter Aldous (Waveney) (Con)]

I thank my hon. Friend for securing this important debate. I think that he is about to move on to the nub of an issue that I want to raise. Does he agree that part of the problem in Suffolk is that for many years BT has underinvested in its commercial roll-out? That means the Government and Suffolk County Council’s resources have been diverted from tackling the real problem of getting to the hard-to-reach areas. I have in mind a case from the town of Beccles, where my constituent Mr Tony Twomey has been waiting for months to get superfast broadband.

[Dr Poulter]

My hon. Friend is right to raise his constituent’s concerns and to highlight the fact that although the relationship between BT and the county council on the roll-out has generally been good, there have been concerns.

The money was originally put in place to hit those non-commercially viable areas, but not to supplement BT in activities that are commercially viable for it. Better Broadband for Suffolk has raised concerns with me about BT’s behaviour in a couple of areas, and I want to touch on those briefly. I would appreciate it if my hon. Friend the Minister could respond to some of those concerns, because they might affect some of the contractual relations with BT, particularly with regard to the third phase of funding, which is expected later this year.

We know that BT’s claims for its commercial coverage in certain trouble spots included villages on long lines from commercially enabled cabinets that got no benefit from the upgrade, and that were excluded from Suffolk’s intervention area under the first contract. BT was slow to admit the problem, initially promising the villages that they would be upgraded commercially and then reneging on that promise. The affected areas have been included within the Suffolk intervention area under the second contract as a result, but BT has been slow to prioritise coverage of the affected areas—my hon. Friend the Member for Waveney has just pointed that out—which will now be delivered more than two years later than originally planned. The residents of Suffolk, our constituents, are suffering as a result.

Suffolk has had similar problems getting BT to prioritise coverage of industrial estates and business parks, which are vital to the county’s economy, particularly in rural areas. In general, BT tends to ignore Suffolk’s priorities in favour of its own, which many of my constituents find unacceptable.