Energy and Environment, Food and Rural Affairs

Debate between Graham Stuart and Lord Bruce of Bennachie

Thursday 27th May 2010 Commons Chamber

[Malcolm Bruce (Gordon) (LD)]

It is an honour and a privilege to speak under your presiding eyes, Mr Deputy Speaker, and I congratulate you on your new role.

I welcome the Queen’s Speech and the commitments to a green economy, which is essential for the restructuring of our economy, which has been so dependent on the financial services that have failed us so badly. However, I thought I might give the House the benefit of my personal history of engagement in energy issues. I worked as a young research and information officer for the North-East Scotland Development Authority in Aberdeen in the 1970s. At that time, it was struggling to find 16,000 new jobs for the area simply to stabilise the decreasing population. I doubt whether we would have succeeded in that but for the serendipity of the discovery of huge quantities of oil and gas in the North sea.

There was an unseemly scramble to get the oil and gas into production against the background of the first oil crisis and the foundation of the Organisation of Petroleum Exporting Countries. It also coincided with the first miners’ strike and the three-day week. A few weeks after his defeat as Prime Minister in the February 1974 election, Ted Heath came to Aberdeen, and I and others briefed him in our offices about the scale of development activity in oil and gas that was taking place in the North sea. He was duly amazed. I am not sure that he appreciated it when I told him that had he come before the election he might still have been Prime Minister, but it certainly brought home to him that we needed a strategy. The value of coal, as well as of oil and gas, had been dramatically changed by the OPEC crisis.

People may remember that at that time there was lively discussion about the need to reduce the industrialised world’s dependency on oil and gas, while trying to maximise production from our own resources, where they had been discovered. I wrote pamphlets on the subject with Ross Finnie, who distinguished himself for eight years as the Environment Minister in the Scottish Administration. We called for a drive for greater energy efficiency and for policies to develop alternative technologies using smaller-scale generation, moving away from dependency on fossil fuels. Somehow, as the oil price fell and the crisis diminished, all those high ideals fell away, and I find it extraordinary that 35 years later we are still talking about how we might implement them to any significant degree.

As someone who had, and has, no visceral objection to nuclear power, I became increasingly aware that far from being the cheap option that we were promised, nuclear power was economically unaffordable and we had been lied to big time by the industry. However, the problem of trying to develop alternatives was made much worse by the fact that the Atomic Energy Agency was put in charge of supporting and evaluating alternative renewable energy. I might say to the shadow Secretary of State that that too was like putting a vegan in charge of McDonald’s, because the result—predictably—was that if anything looked as if it might become remotely commercially viable, the plug was pulled on further development. So, although Britain developed the first large-scale wind turbines, in shipyards on the Clyde, we had no policy for deployment. It was therefore left to the Danes, who did have a policy for deployment, to become world leaders in that technology. I do not know if Salter’s ducks would ever have generated electricity commercially from marine sources, but I know that the technology was never allowed to prove that it could, because the AEA was determined to ensure that there was no alternative. I wonder whether we are being subjected to the same propaganda today.

At the time it was also argued that we needed large generation stations to power the national grid and, given its format, we probably did. But even then it was clear to me that we should be thinking of moving to smaller-scale generation. Over the years, high-energy manufacturing—of which we have less in any case—has increasingly provided its own power generation as an integral part of its operation, requiring only top-up flows in and out of the national grid. So when I was first elected to this House in 1983 I joined what was then known as PARLIGAES, the parliamentary group for alternative energy studies, and I am currently a vice- chair of its successor, PRASEG or the parliamentary renewable and sustainable energies group. They are not very snappy acronyms, but they are important all-party groups.

All of this predated any inkling of the threat of climate change. It was about reducing our dependency on fossil fuels and finding cleaner, more diversified and more sustainable ways to generate energy. We have wasted at least 30 years getting to this point. As a young researcher in 1972, I compiled the first directory of oil and gas operators and supply companies in north-east Scotland, which included an estimate of the number of people employed and a forward job projection. Interestingly, at the time there were several dozen companies employing a few hundred people. I projected that the number could rise to as many as 5,000, with the same number of jobs indirectly generated, and I was accused of gross exaggeration. Today, the Gordon constituency sustains more than 65,000 oil and gas-related jobs. They are not all based in the constituency, but they are payrolled out of it, and the industry employs an estimated 450,000 people across the UK.

As I said in my intervention on my right hon. Friend the Secretary of State, I was very pleased that last week, in his first week in office, he visited the All-Energy exhibition in Aberdeen, covering companies engaged in all aspects of renewable energy technology. He saw for himself the impressive emerging technology for offshore and marine renewable energy, and the useful overlap between the technology and systems required by oil and gas and those required by renewables in an offshore environment. Installing a platform, sub-sea connectors, pipes or cabling requires the same equipment and engineering expertise, and there can be a crossover. The important point is that if we can run the second generation of North sea development—which probably has as much oil and gas again to be extracted, although in much more challenging conditions—alongside an expanding offshore renewable industry, we could benefit from huge economies of scale and efficiency by using the same equipment.

[Mr Graham Stuart]

My hon. Friend is, as ever, making a powerful speech. Not only do we have renewable energy and oil and gas, but carbon capture and storage. We have the skill sets and the ability to store carbon, and I hope that the failings of the previous Government will not mean that we lose the opportunity to be a world leader in that area, because it could produce jobs and wealth if we can sell that technology instead of having to buy it from others.

[Malcolm Bruce]

My hon. Friend makes a pertinent point. As I have said, we missed the boat 35 years ago, and we must not do so again. There is a real risk that that might happen, if we do not get the policies right.

[Malcolm Bruce]

I completely agree with my hon. Friend.

I hope that the Secretary of State took away several points from the exhibition. Exciting as the development of renewables is, it will not replace oil and gas soon in investment, jobs, tax revenue or exports. That will take some years—but if we run them in tandem, we can build one up as the other declines. Renewable technology will require a number of push-and-pull measures to realise its full potential. For both of them, we require substantial onshore investment in ports and transport infrastructure. As a representative of part of the city of Aberdeen, I am concerned that our infrastructure is not appropriate for a city that claims to be the energy capital of Europe. Our promised bypass has not happened, our commuter rail service has been postponed indefinitely, our city finances are in a considerable mess and we have the two most underfunded councils in Scotland, with money being diverted to other parts of the country. In those circumstances, my message to the Secretary of State—and my right hon. Friend the Secretary of State for Scotland—is that it is the UK Government who stand to lose if that infrastructure is not right, because some of the investment will go out of the UK altogether.

I welcome several of the proposals in the Queen’s Speech to promote marine energy and to support home energy efficiency, which can help move us away from dependency on the national grid and huge power stations, and make microgeneration genuinely part of the national grid, rather than just a domestic alternative to current generation. As I keep asking at every event I attend, when will we get micro combined heat and power? What steps will be taken to provide an easy way for people to take up feed-in tariffs? I defer to the point made by the hon. Member for Southampton, Test (Dr Whitehead) about renewable heat, which is part and parcel of that issue. What can be done to help people with hard-to-heat homes—a question asked earlier by my hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes)? We have many such in Aberdeen, and they are expensive and difficult to tackle.

I would like to address the international dimension. I am a vice-chairman of GLOBE UK and GLOBE International, which played an invaluable role in testing potential policies and negotiating positions in the run -up to the various climate change summits. In fact, in advance of Copenhagen, GLOBE clearly identified China’s concerns, through the climate change dialogue that we run.

[Mr Graham Stuart]

indicated assent.

[Malcolm Bruce]

My hon. Friend acknowledges that point.

Unfortunately, had they been properly addressed, we might have mitigated the fallout in Copenhagen. GLOBE gave the UK Government the opportunity to ensure that what happened would not happen, and to see that Europe played a part in the process rather than being marginalised, so GLOBE has an important role to play.

It is unreasonable for developed countries to tell developing economies that they cannot enjoy the same development opportunities that we did—development that led to the climate danger. It is also realistic to recognise that China will not give up its commitment to double-digit growth, which after all has helped 400 million people out of poverty, although hundreds of millions are still left behind. It is also right to acknowledge, however, that China knows the damage that pollution and climate change are causing for its people and environment, and wants all the help it can get to grow sustainably. That is why I and the International Development Committee, which I previously chaired, do not want an abrupt end to the UK’s aid programme for China. It is on the climate change front that we can work together most constructively. We have to give China space, share technology and innovation and recognise that many of the poorest countries are the victims of climate change, not the perpetrators. As the Secretary of State for Energy and Climate Change has already acknowledged, China may well get ahead of us if we do not participate in initiatives with it, so it is in our interests to partner it as much possible.

Poorer and developing countries must be helped to adapt and mitigate the impact of climate change, be given the means to grow sustainably and not find the anti-poverty aid hijacked to fund climate change measures. The previous Government put in place a 10% limit on money being diverted in that way, and I hope—I will hold them to account—that the current Government will not weaken that commitment. Britain can lead the world on climate change policy, and in many ways, despite the criticisms that have gone back and forth across the House, it is fair to say that we have made significant progress, although it has been more about ambitions than delivery, so we now have to deliver.

Only if our targets are turned into policies for practical action can we demonstrate by our results and developing technology what we can offer the world. I would suggest—if I can put it constructively—that we should build on the initiatives of the previous Government and recognise that we can take them forward. If we do that, we will deliver credibility and prestige abroad, and jobs and exports for our domestic economy, and it will give us a new dynamic sector to take up the slack left by the abuses that damaged so much of the financial services sector, which I suspect will never make as big a contribution again. The lesson is quite simple: we can help save the world from climate change disaster, but only if we first save ourselves.