Russian Oil Import Ban

Edward Miliband Excerpts

Wednesday 9th March 2022 Commons Chamber

[Edward Miliband (Doncaster North) (Lab)]

I thank the Secretary of State for his statement. We are united against Russian aggression. We stand together in solidarity with the Ukrainian people. Let me echo his admiration for President Zelensky, whose bravery and eloquence yesterday were extraordinary and inspiring.

On the Secretary of State’s immediate decisions, we know that Putin’s war machine is being funded by oil and gas, which is why it is right that every country does what it can to isolate the regime, and that every company does so too. We fully support the Government’s decision to ban oil imports, which is a welcome step. It is also right to work with companies and unions on how we implement that policy. What assessment has he made of the impact of the ban on petrol and diesel prices?

We also support the Secretary of State’s decision to seek ways of ridding ourselves of Russian gas imports. On the wider energy security context, it is essential that we learn the right lessons from this crisis. Although 50% of our gas comes from the North sea and only 4% from Russia, we pay the same price for our own gas as for that which we import because we operate in an integrated gas market, so we are absolutely exposed to these rocketing wholesale gas prices, which are currently up 100% on the month and 800% on the year.

Therefore, the right lesson to learn is surely that we have to go much further and faster in developing home-grown zero-carbon power, including renewables and nuclear, which can free us from the whims of autocrats and dictators who can use fossil fuels as a geopolitical weapon. Does the Secretary of State agree this is the right lesson and that policy will need to change? In particular, does he agree that we should finally end the effective moratorium on onshore wind in the planning regulations, which since 2015 has denied us power each and every year equivalent to our gas imports from Russia? Does he agree that we should ramp up our offshore wind so we go well beyond 40 GW, and that it is time to finally get serious about energy efficiency—the best way of cutting energy demand and an area in which the Government have not succeeded in past years?

There needs to be a phased transition in the North sea, but will the Secretary of State now clarify the Government’s position on fracking? Will he confirm that the moratorium that was put in place will remain in place—no ifs, no buts—as fracking would not make any difference to the prices consumers pay, is dangerous and would take decades to come on stream? [Hon. Members: “No!”] They do not agree with me. I have a position against fracking; they support fracking. We would love to know what the Secretary of State and the Government think and I am sure they would, too.

Let me ask the Secretary of State about the cost of living crisis facing families, arising from what is happening to oil and gas prices. We have consistently warned the Government that their measures were wholly inadequate to address the rise in energy bills. Will he undertake to tell the Chancellor that, in his spring statement, he must come back with much more help for both families and businesses?

We are united in our support for the people of Ukraine. We will support the Government in everything they do that can cut off support for the evil and barbaric Putin regime, and we urge the Government to learn the right lessons for our country from this crisis, so we can achieve both energy security and energy sovereignty.

[Kwasi Kwarteng]

In his customary way, the right hon. Gentleman raised a large number of questions, the majority of which I hope to deal with. He spoke against Putin’s barbaric invasion and completely illegal actions. I am very pleased that he reflects our sentiments and that we have a mutual interest in making sure that Putin fails.

As far as the cost of living is concerned, the Chancellor of the Exchequer has made an extensive intervention, and it is wrong for Opposition politicians to say that the price cap that will be set in August will necessarily be higher than it is today. We simply do not know. As the right hon. Gentleman understands, the price cap will be set retrospectively, looking at the average price. It may well be higher, but there are circumstances in which it will not increase as much as he imagines. As is always the case, we take an ongoing approach to looking at the price cap. We speak to Ofgem all the time and Ofgem is engaged in work on how the price cap is calculated.

I am pleased to hear that the right hon. Gentleman is keen to support investment in the North sea, making sure that gas is a key transition fuel, something that many people on the Opposition Benches may disagree with. He is right to stress an increased focus on renewables and nuclear power—we are absolutely at one in our agreement on that.