Nissan in Sunderland

Debate between Greg Clark and Albert Owen

Monday 4th February 2019 Commons Chamber

[Greg Clark]

The policy that the Prime Minister has proposed has commanded the support and endorsement of the employers that the hon. Lady is concerned about. I am not aware of any policy proposal from the Labour party that commands any degree of consensus across the Opposition Benches. I have said very clearly today and previously that all Members of this House who were elected in 2017 following the referendum the previous year always knew that this was going to be the most important decision that we would take. It is time to find common ground and to settle on an agreement that commands a majority of support in this House that will provide the confidence and stability that the rest of the world looks to.

[Albert Owen (Ynys Môn) (Lab)]

The Nissan decision is sadly following a developing trend of disinvestment by foreign companies not just in the north-east of England, but north Wales. I appreciate the Secretary of State meeting me later to discuss that. I am a proud member of the all-party parliamentary group on Japan, of which the Minister for Asia and the Pacific, the right hon. Member for Cities of London and Westminster (Mark Field), is also a regular member, and Japanese representatives say clearly to me that there are two strengths to investing in the United Kingdom: the loyal and unionised workforce, and a strong single European market. I ask the Secretary of State to urge his Cabinet colleagues, for a start, to ensure that we have that strong unionised workforce and a strong European single market?

Nuclear Update

Debate between Greg Clark and Albert Owen

Thursday 17th January 2019 Commons Chamber

[Greg Clark]

I pay tribute to the role that my right hon. Friend played in the earlier stages of discussions for the Wylfa site. As is evident, such matters are complex and difficult to secure, but he laid the groundwork for some of the progress that has been made, and I hope that the process might ultimately be successful. Of course, I have complete commitment to the north Wales growth deal, and I would be delighted to have a meeting with him and my ministerial colleagues. The Secretary of State for Wales will be in Anglesey tomorrow and will be meeting members of the local community.

As I said in my statement, we regard Anglesey and north Wales as having exceptional strengths in our energy future. Bangor University, for example, contributes exceptional world-leading innovation, and we have backed that in the sector deal. Colleagues across Government and I will work closely with colleagues in north Wales to ensure that that potential is realised.

[Albert Owen (Ynys Môn) (Lab)]

I thank the Secretary of State for coming to the House at the earliest opportunity to give this statement. He will know the importance of this matter to my local community, to the Welsh and UK economies and, indeed, to the Government’s nuclear policy. With 10 years of planning, a lot of work has gone into this project, as he rightly acknowledges. It started off under the Labour Government and was continued by the coalition Government and, indeed, the current Government. Wylfa is the best site in the United Kingdom for a new nuclear build, but Hitachi’s announcement puts the jobs of 400 people at risk, many of whom are my constituents. There is the potential for some 8,000 to 10,000 construction jobs, hundreds of operational jobs and, importantly, 33 apprenticeships, so I hope that we can work to ensure that we save as much of that as possible. The supply chain and small and medium-sized enterprises are important as well, and they have been planning for this for years.

So I ask the Secretary of State: can we work together to keep this project alive and ensure that we create the momentum so that it can be ready for a future developer, or indeed this developer, with the right mechanism? We need a better mechanism for financing, not just in the nuclear sector but for all large energy construction, including the tidal lagoon. I pay tribute to my hon. Friend the Member for Southampton, Test (Dr Whitehead) in this regard, because I feel that an opportunity for innovation has been lost with the tidal lagoon, and the Welsh economy needs it. We know that £16 billion has been taken out of the Welsh economy as a result of that announcement, and we need to redistribute that.

I echo the right hon. Member for Clwyd West (Mr Jones) in saying that we need extra help and extra resources to plug the gap following this announcement today. We have a mechanism through the north Wales growth deal whereby the Welsh Government work with the UK Government to create jobs, and I urge the Secretary of State to work with the new First Minister and the Economy Minister on this. The north Wales growth bid can be successful. I will be meeting the Secretary of State for Wales as well, but I want to ask the Secretary of State to work closely with us on this. Will he host a delegation involving myself, key stakeholders and his officials to look at a funding mechanism for the future that will work not just for new nuclear but for all large projects? North Wales is a centre of excellence for low carbon, nuclear, renewables and marine energy. It has the potential; let us work together to make this happen.

[Greg Clark]

I repeat my commendation of the hon. Gentleman. He has been a consistent and passionate campaigner not only for the interests of his constituents but for the excellence of the industry in north Wales, and in Anglesey in particular. I can give him that wholehearted commitment. My officials will certainly meet him, but they will also come with me and my nuclear Minister and we will work together in a completely open-book way on all the options. The hon. Gentleman serves with distinction on the Select Committee, which I think will also want to scrutinise the options and the potential for financing. I repeat the commitment I gave to my right hon. Friend the Member for Clwyd West (Mr Jones) that we continue to regard the north Wales growth deal as an excellent base to reinforce the strengths of the area, and I will work very closely with him on this.

The hon. Gentleman also mentioned marine energy, which is one of the opportunities that we have in his constituency and around north Wales. Far from having closed the door to marine technologies, we want to continue to invest in innovation. When it comes to deployment, the technologies need to demonstrate value for money, but we will work with them, as we did with the offshore wind sector, to bring costs down so that they can win at auction alongside other technologies.

Budget Resolutions

Debate between Greg Clark and Albert Owen

Wednesday 31st October 2018 Commons Chamber

[Richard Burden (Birmingham, Northfield) (Lab)]

rose—

[Albert Owen (Ynys Môn) (Lab)]

rose—

[Greg Clark]

I will give way first to another west midlands MP, the hon. Member for Birmingham, Northfield (Richard Burden).

[Greg Clark]

The hon. Gentleman makes an important point. The next generation of diesel engines are much more environmentally friendly and fuel-efficient than their predecessors, so to replace an existing old-style engine with a new one is a step in the right direction, and I have been very clear, as I think he knows, that diesel will have a role to play as we transition to a 100% emissions-free world. That is captured in the “Road to Zero” strategy on which we consulted the industry, and I know that he was involved in those discussions.

[Albert Owen]

The Secretary of State talked about not losing our ideas. He will know that there are great ideas now in the marine energy technology sector, but they are at an early stage and companies need help and support before they can manufacture in this country. Will he have a word with the Chancellor so that we can have proper ring-fenced finance for this industry, as we had for wind energy under a Labour Government and for solar? Those sectors are now successful, but marine energy is lagging behind.

[Greg Clark]

We have an expanding innovation budget and we will have more to say about that in the weeks ahead, because our industrial strategy recognises the importance of seizing the opportunities that we have in clean growth, in which we are a world leader in many cases. I want to do with clean growth just what we are doing in the automotive sector, and marine and tidal energy is an important part of that.

Energy Policy

Debate between Greg Clark and Albert Owen

Monday 25th June 2018 Commons Chamber

[Greg Clark]

I know that my hon. Friend has been a great champion for this technology and that he will be disappointed with the conclusion that has had to be reached. At the point of considering any proposal, we are required to examine the cost of alternatives, and the costs of low-carbon alternatives, including offshore wind and nuclear, were more competitive than those for this programme. It is not possible to specify a particular price, because such an assessment has to be made at the point of a decision. However, I have said very clearly that far from being against tidal technology, I am in favour of it, but a value-for-money case has to be presented. We will continue to be open to proposals that can demonstrate such a case.

[Albert Owen (Ynys Môn) (Lab)]

I am disappointed by today’s announcement. It sounds as if the Government have given up on innovation, marine energy and their own industrial strategy. The Secretary of State discussed wind energy. It would not be at the price it is today if we had not had a decade of subsidies through renewable obligations, which many Government Members opposed. Will he assure me that other marine energy projects such as those in my constituency and across the country will not be jeopardised and crowded out by the price of wind today, and that there is a level playing field for innovation in marine energy?

[Greg Clark]

The hon. Gentleman would accept that the commitment that I have given to pursue alternative energy sources, including projects in his constituency, has been clearly demonstrated. Of course we are open to innovation—we fund innovation. The assessment by independent experts is that the prospective cost reduction for this technology is not the same as that enjoyed by offshore wind. When it comes to future proposals, of course I will consider them rigorously, and if they can demonstrate value for money they can be contenders.

Nuclear Power

Debate between Greg Clark and Albert Owen

Monday 4th June 2018 Commons Chamber

[Greg Clark]

I agree with my hon. Friend. It is not a positive reflection on previous Governments that, knowing that this important contribution of more than 20% of our power supply was coming to the end of its life in the decade ahead, no plans were made to replace it. The fact that we now have a pipeline of nuclear power plants will provide confidence that that source of energy will be maintained and, as we have discussed, provide important economic opportunities for people to enjoy successful careers and prosperity in that industry.

[Albert Owen (Ynys Môn) (Lab)]

The Secretary of State’s statement on Wylfa Newydd is good news for my constituency, good news for north Wales, and good news for the UK nuclear industry and wider industry. If we are serious about tackling climate change, we need to be serious about new nuclear and get on with it as quickly as possible. My constituents will welcome this announcement, but they will want assurances that the skills agenda is going ahead and that local people can have the quality jobs that previous generations in my constituency have had for over 40 years. I invite the Secretary of State to come to talk to training providers, local government and the Welsh Government so we can get this agenda up and running.

[Greg Clark]

I am grateful for the hon. Gentleman’s welcome. He knows very well the potential of the development for his constituents and those beyond. I had the pleasure, during the Anglesey Day he hosted, to meet many of the companies that would benefit. It is the case, I think, that some young people already working on the site have been to Japan for training purposes, deepening their skills and broadening their horizons. They will be very important engineers of the future in the UK. I am delighted that, subject to the success of the negotiations, this opportunity will be available for them.

Oral Answers to Questions

Debate between Greg Clark and Albert Owen

Tuesday 13th March 2018 Commons Chamber

[Albert Owen (Ynys Môn) (Lab)]

1. What discussions he has had with the Welsh Government on the place of marine energy in the industrial strategy; and if he will make a statement.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

My ministerial colleagues and I have regular discussions with our counterparts in the Welsh Government on all aspects of the industrial strategy. Last week, my officials were in Cardiff to discuss with the Welsh Government the proposed Swansea bay tidal lagoon.

[Albert Owen]

At the heart of the industrial strategy is spreading prosperity across the whole of the United Kingdom, and working with devolved Administrations in our nations and regions will help to achieve that. The Welsh Government are working with practical developers—Minesto, an international company, and local company Morlais—to develop marine energy in my part of the world. The Secretary of State mentioned the Swansea bay tidal lagoon. Will he now make a decision and work with the Welsh Government and with developers so that we can roll that out, maximise our potential, and spread prosperity in this part of the United Kingdom?

[Greg Clark]

I share the hon. Gentleman’s enthusiasm for green energy, as he knows, and I am proud of our achievements. Since 2010, we have quadrupled the proportion of our electricity that comes from renewable sources. However, as the hon. Gentleman understands from being on the Select Committee, we also have a responsibility to minimise the impact on consumers’ bills. The Swansea proposal was very much more expensive—more than twice as expensive—as the Hinkley nuclear power station, for example. As I said, though, we are in discussions with our colleagues in the Welsh Government. I do not want to close the door on something if it is possible to find a way to justify it as being affordable to consumers.

Domestic Gas and Electricity (Tariff Cap) Bill

Debate between Greg Clark and Albert Owen

2nd reading: House of Commons
Tuesday 6th March 2018 Commons Chamber

[Greg Clark]

I agree with my right hon. Friend, and I was making the point that we have long been a pioneer in regulation, which has meant adapting regulation to the changing circumstances. We started with RPI minus X, and that evolved into different models, including looking at the regulated asset base. In my view, it is necessary to keep up with our traditions of acting boldly to protect consumers’ interests, and we should be agile in response to new behaviours, especially those brought on by new technologies.

[Albert Owen (Ynys Môn) (Lab)]

I find myself in agreement with the Secretary of State and shall support the Bill. Indeed, I am in agreement with the Prime Minister that the energy market is broken and that customers are being ripped off. The importance of this legislation will be that Governments of whatever colour and the regulator cannot blame each other when something happens in future. There will be a framework that the Government, the regulator and the energy companies understand, and that is why we need legislation.

[Greg Clark]

I agree with the hon. Gentleman, and I was saying in response to my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) that I think the regulator should be more agile in responding to the behaviour that had come about. In fact, the energy companies themselves should have recognised this, and one thing that they said to me was that none of them wanted to act individually and that they would prefer to have a consistent approach.

--- Later in debate ---

[Greg Clark]

My hon. Friend makes an excellent point, and my Department will work closely with Ofgem to ensure that those consumers can benefit from these provisions.

[Albert Owen]

The regulator will need time to consult before the Bill’s provisions are enacted. Is the right hon. Gentleman confident that, with the Bill being put before both Houses of Parliament today, customers will be able to benefit from it this winter?

[Greg Clark]

I am indeed confident of that, and it is one of the reasons why I am so grateful for the swift attention of the Committee on which the hon. Gentleman served in giving the Bill pre-legislative scrutiny and taking evidence from expert witnesses.

As I said earlier, the Bill has been constructed to be proportionate and to be directed at a particular problem that we expect to be temporary. On that basis, I hope it will enjoy support from across the House and we can swiftly progress it so that we can correct an intolerable situation in which consumers have been exposed to paying £1.4 billion more than they would in a competitive market. That abuse should end. This Bill will give Ofgem not only the ability to do so, but the requirement that it should do so, and I commend it to the House.

Nuclear Safeguards Bill

Debate between Greg Clark and Albert Owen

2nd reading: House of Commons
Monday 16th October 2017 Commons Chamber

[Greg Clark]

There is no difference in the arrangements. As I say, the Bill makes provisions for a safeguarding regime. It is not about safety or security; it is about making sure it can be verified that nuclear material that is used in the civil sector does not cross to other uses. The robust arrangements supervised by the ONR that we have in place for decommissioning continue.

[Albert Owen (Ynys Môn) (Lab)]

In response to my hon. Friend the Member for Stroud (Dr Drew), the Secretary of State said that Ministers regularly meet various industry experts and bodies. Will he go further and say that by the time the Bill is enacted it will contain a clause that says it is necessary to consult the industry as widely as possible? The trade unions and the trade bodies currently feel left out.

[Greg Clark]

Such consultation is the universal practice in the nuclear sector. The hon. Gentleman might serve on the Bill Committee, so perhaps he will be able to interrogate the issues he raises, but at every point the nuclear sector proceeds not through the unilateral fiat of Governments but appropriately, on the basis of expert advice. That is the culture of the nuclear industry and it will continue.

As I set out for the House in my written statement in September, our intention is for the new domestic regime to exceed the standard that the international community would expect from the UK as a member of the IAEA. The objective is for it to be as robust and comprehensive as that currently provided by Euratom. We are perfectly satisfied with the high standards that have prevailed under Euratom, so we do not want to take the opportunity to weaken them. As I have mentioned, we will also be agreeing new safeguards agreements with the IAEA. My officials have had meetings with officials from the IAEA at their headquarters in Vienna to take the discussions forward, and I am pleased to report that they are progressing extremely well.

On other aspects of the Euratom relationship, we have made it clear that we want to continue the successful co-operation. In June, I announced the Government’s commitment to underwrite the UK’s fair share of the costs for the Joint European Torus—the leading nuclear fusion facility in Oxfordshire—which supports 1,300 jobs, and we will continue to do that.

Let me briefly take the House through the clauses of the Bill. It is not a long Bill, as the House knows. Clause 1 amends the Energy Act 2013 to replace the Office for Nuclear Regulation’s existing nuclear safeguards purposes with a new definition. The ONR will regulate the new nuclear safeguards regime using its existing relevant functions and powers, so the measure is about clarifying its purposes. Clause 1 will also amend the Act by creating new powers so that we can set out in regulations the detail of the domestic safeguards regime, such as on accounting, reporting, and control and inspection arrangements.

Retail Energy

Debate between Greg Clark and Albert Owen

Thursday 12th October 2017 Commons Chamber

[Greg Clark]

As my right hon. Friend will know, there is a vigorous competitive market for deals that are available through a great many new entrants, and we want to expand that market. The CMA has established that at present there is insufficient competition in the standard variable tariffs. Our aim is to expand the competitive part of the market and in the meantime provide some protection for those who are paying too much on those tariffs.

[Albert Owen (Ynys Môn) (Lab)]

I welcome the Government’s intervention on the road to Marxism. I think that—apart from one—we are all Marxists now. I want to make a serious point, but I have been banging on about this for a long time, and I have been accused of lots of things, which is why I make that statement.

Speaking as a member of the Business, Energy and Industrial Strategy Committee, I think it is realistic to assume that the pre-legislative scrutiny will take some time. When does the Secretary of State expect the Bill to receive Royal Assent? Will that happen at the earliest opportunity, so that we can help the vulnerable people who are being ripped off? On the issue of competition, the Secretary of State mentioned a review. The energy companies said recently that the price hikes were due to transmission costs. Can we look into the uncompetitive nature of this broken energy market?

[Greg Clark]

As I said earlier, that is being considered as a separate exercise.

The hon. Gentleman referred to pre-legislative scrutiny by the Select Committee. I think that that is necessary so that we can establish a consensus and allow the technical scrutiny that is needed, so that once the Bill has passed that scrutiny and been introduced to the House, it can proceed with the strongest possible consensus.