Net Zero Emissions Target

Debate between Greg Clark and Mark Pawsey

Wednesday 12th June 2019 Commons Chamber

[Greg Clark]

I thank the hon. Lady for her welcome. It contained some caveats, but it was there nevertheless, and I am grateful for it.

I think that the hon. Lady should take this opportunity to reinforce the joint determination—which is noted around the world—of parties in this House of Commons to commit themselves to leading the world. We have delivered on that. I do not know whether the hon. Lady has seen this week’s report from the International Energy Agency, but it is something of which she, and all of us, should be proud. The IEA—the world’s foremost body in commenting dispassionately on energy matters—says in its report:

“The United Kingdom has led the way in the transition to a low-carbon economy by taking ambitious climate action at international and national levels.”

That is its headline conclusion. As I said in my statement, it has also commented that the Government’s efforts—and I think we can include the efforts of successive Governments—are

“an inspiration for many countries who seek to design effective decarbonisation frameworks.”

This is a moment at which, for all the fractiousness of current debates, I think the House can be proud of the decisions that have been made.

The hon. Lady asked about carbon budgets, which were established by the Climate Change Act. As she will know, for the two carbon budgets that have been met—most recently in 2017—we have achieved surpluses of 1.2% in the first and 4.7% in the second, and we are on track for a surplus of 3.6% in the current one, which will end in 2022. As for the carbon budgets that follow, which run until 2032, at this stage—and we are talking about 15 years or more from now—we are already 90% of the way there.

An important feature of the report from the Committee on Climate Change is its recognition of the astonishing returns from investment in innovation. When the right hon. Member for Doncaster North (Edward Miliband) and I were debating the Climate Change Bill across the Dispatch Boxes—the right hon. Gentleman will remember this—the Opposition came close to defeating the then Government on the question of imposing an emissions performance standard on new coal-fired power stations: we were defeated by just a few votes. The need for such a performance standard is now cast into history, because we have no new coal-fired power stations and we are closing the existing ones. Such is the pace of change. So I am absolutely confident that we will meet the ambition that we have set today.

The hon. Lady mentioned solar power. The Committee on Climate Change has commended the action we have taken through the feed-in tariffs. They were always intended to kick-start the solar industry. The scheme cost £1.2 billion a year, and £30 billion has been spent on supporting the industry. It has been successful, as intended, in bringing prices down. Just as in every other advanced economy, as intended from the outset, it has now closed, but has been replaced by an export guarantee that allows those supplying surplus energy in the market to be paid for it.

Proposals of that kind have been endorsed by commentators around the world. In choosing to make this big increase in research and development, we can be confident that we can maintain and fulfil our ambition not only for the environment, but for the job creation in every part of the country that comes with a consistent and determined act of leadership. I am grateful for the support of the Opposition in that regard.

[Mark Pawsey (Rugby) (Con)]

Today’s announcement has been broadly welcomed—by, among others, the Confederation of British Industry—but our energy-intensive industries such as steel, ceramics and cement are currently paying a higher price for energy than is paid in comparable countries. What reassurance can the Secretary of State give such industries that other industrial economies will follow our lead and that the measures that will have to be introduced if we are meet the zero target by 2050 will not place those industries at a competitive disadvantage?

Oral Answers to Questions

Debate between Greg Clark and Mark Pawsey

Tuesday 11th June 2019 Commons Chamber

[Greg Clark]

The take-up of electric vehicles is growing very quickly in this country. The investment that we are making in the charging network, with 17,000 public charging points, is a very important contribution to that. In the weeks ahead, the hon. Gentleman will see further announcements on how we can accelerate the deployment of charging technology.

[Mark Pawsey (Rugby) (Con)]

I wonder whether the Secretary of State has received his invitation to the reveal of Lotus’s new electric hypercar on 16 July. It is the world’s first electric hypercar—designed, engineered and built in Britain. In a week when the motor industry has had some difficult news, does he agree that this is a great shot in the arm for the UK motor industry?

[Greg Clark]

It is indeed a great shot in the arm and I hope that I will see my hon. Friend there to celebrate it. It is fair to reflect that this is a difficult, challenging time for the automotive industry around the world, but through the decisions that we took in the industrial strategy to emphasise battery electric vehicles and the new technology, and connected and autonomous vehicles, we have made the right judgment about how to attract the jobs and companies that will be expanding in the future.

British Steel

Debate between Greg Clark and Mark Pawsey

Wednesday 22nd May 2019 Commons Chamber

[Greg Clark]

I grew up in the hon. Lady’s constituency, and I am very familiar with the landscape of steelmaking across Teesside. We need to learn the lessons of this. Across the country, including in Scotland, as we have heard, there have been times when the steel industry has been challenged. Not everything has been done in the best way each time. We should learn the lessons and apply them in this case. I hope that the official receiver will do that, and the indemnity is partly given to provide the official receiver with the confidence that the liabilities, especially the safety aspects, will be covered.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State will know that, for any business to succeed, it is vital to look after the needs of the customer, so will he say a little more about the steps being taken to maintain the continuity of supply to manufacturers and contractors of the excellent, high-quality products produced by British Steel?

[Greg Clark]

My hon. Friend is absolutely right. The company benefits from very good relationships with customers, and I particularly mention Network Rail. This is important to both sides of that relationship. Network Rail has been particularly understanding and supportive during British Steel’s difficulties, and I hope very much that Network Rail will be part of the solution to resolving the difficulties facing the operations.

Honda in Swindon

Debate between Greg Clark and Mark Pawsey

Tuesday 19th February 2019 Commons Chamber

[Greg Clark]

I am grateful to my hon. Friend for giving me the chance to say on the record that we totally respect the reasons Honda has given. In fairness, he will agree that I have made it clear that the sector is undergoing a big change, not least in technology, but I have to report to him and the House the countless conversations I have with virtually every firm in the automotive sector, large and small, all saying that the uncertainty is a negative factor in their investment decision making and that they want our future relationship to be without frictions, tariffs and rules of origin checks. That is sufficiently consistent that it is fair that I bring it to the attention of the House in a statement about the automotive sector.

[Mark Pawsey (Rugby) (Con)]

A year ago, the Business, Energy and Industrial Strategy Select Committee visited the Honda plant at Swindon. We saw Civics coming off the line, many of them destined for the European market, and the benefits of the substantial overseas investment in our automotive industry, some of which has benefited my constituency through the London Electric Vehicle Company. In its peak year of 2013, investment reached £588 million. Are there any decisions the Secretary of State would suggest the House take in the next few days to encourage future investment to get back to that kind of level?

[Greg Clark]

There are indeed. The context of technological change is common to the motor industry around the world, but as I hope I have made clear, we have the opportunity to be a beneficiary of that change. We cannot be complacent about how competitive the sector is around the world, which means we must do everything we can to give confidence to investors, and that certainly involves agreeing a deal over the next few days that can unleash the optimism that comes from investment up and down the country—investment that I know in many instances is not taking place while people contemplate what our future trading relationship will be.

Oral Answers to Questions

Debate between Greg Clark and Mark Pawsey

Tuesday 12th February 2019 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right. In fact, the number is 3.25 million more jobs since 2010, and 80% of those have been full-time. The number of zero-hours contracts has actually fallen.

[Mark Pawsey (Rugby) (Con)]

Rugby has the second highest rate of people in work in the west midlands, and one reason for that is the flexibility in the local labour market, especially in the growing logistics sector. Does the Secretary of State agree that for many people, the ability to choose the hours they work is important to them?

[Greg Clark]

My hon. Friend is absolutely right. The Taylor report called for two-sided flexibility, so that employers and employees can make a choice as to what the best arrangements are for them both.

Oral Answers to Questions

Debate between Greg Clark and Mark Pawsey

Tuesday 8th January 2019 Commons Chamber

[Greg Clark]

In the “Road to Zero” strategy document, it is very clear that diesel engines, especially the new generation, are a perfectly acceptable choice environmentally as well as economically. The right hon. Gentleman will know that diesel sales are falling across the whole of Europe, but we have been very clear in this country that it can play an important role in the transition to zero-emission vehicles.

[Mark Pawsey (Rugby) (Con)]

T10. Following on from the previous question, maintaining an uninterrupted supply of components for just-in-time manufacturing and the ability to sell tariff-free into European markets, both of which are enabled by the Prime Minister’s deal, is vital to the continued success of the UK auto industry. Forty constituents of mine, all of whom work at Jaguar Land Rover, have reminded me of that through their emails. Will the Secretary of State welcome that approach?

[Greg Clark]

I do indeed welcome the representation from my hon. Friend. The automotive sector is one of our most successful, and it is globally admired. Its success depends on having the just-in-time production that makes it so competitive. In my view, it is vital that we pose no threat to that in our new relationship with the European Union.

Energy Policy

Debate between Greg Clark and Mark Pawsey

Monday 25th June 2018 Commons Chamber

[Greg Clark]

The commitment given was to enter into discussions to see whether the project could be financed. We have done that rigorously, including with the Welsh Government. I think there have been more than 10 meetings with the Welsh Government this year alone to consider whether this was possible and to make sure we were looking at every possibility. The conclusion we have drawn is that it cannot be justified in terms of value for money. It was right to work with the Welsh Government to look at all the possibilities, but we have to abide by the conclusions of a serious analysis.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State’s statement will have been listened to with great concern at GE Power Conversion in Rugby, which would have manufactured the turbines for the tidal lagoon. A great deal of development has been done there within a mostly British supply chain. UK manufacturing missed out on the manufacturing of wind turbines because of a lack of a commitment to the sector in its early years. Does the Secretary of State agree that it is important that we do not miss out on the manufacturing opportunities that can arise from harnessing tidal power?

[Greg Clark]

My hon. Friend is right that it is important to take a long-term and strategic approach. That is exactly what we did with offshore wind, identifying a technology in which the supply chain could be located in the UK and creating jobs right across the country. That has been a great success. The opposite of that, however, would be to spread very thinly very expensive projects that do not, as the analysis demonstrates, have the potential for exports that offshore wind and others enjoy. That would reduce the economic prospects for firms across the country.

Oral Answers to Questions

Debate between Greg Clark and Mark Pawsey

Tuesday 12th June 2018 Commons Chamber

[Greg Clark]

The right hon. Gentleman is wrong about the decision that was made. In fact, it is a decision to prepare Solihull for the next generation of the Range Rover and the Range Rover Sport. JLR described that as a huge investment and a technology upgrade in Solihull, so I hope he will welcome that. He knows that the importance of making sure that we are able to continue to trade—this includes recognising rules of origin not just with the European Union, but around the world—is vital for this company.

[Mark Pawsey (Rugby) (Con)]

Many intending to purchase new cars are unsure what type of engine to opt for, partly as a consequence of Government taxation policies. That is having a serious effect on the British motor manufacturing industry. Will the Secretary of State confirm that there remains a future for clean diesel?

[Greg Clark]

I will indeed. We are not the only country that is seeing a fall in the sales of diesel. As I and my right hon. Friend the Minister of State have said, clean diesel and the new generations of diesel engines have a very important role to play in the transition to ultra low emission vehicles.

Nuclear Power

Debate between Greg Clark and Mark Pawsey

Monday 4th June 2018 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right. We announced £56 million of research and development for small modular reactors last year, and we are now looking at the financing and the regulatory framework. I mentioned the forthcoming nuclear sector deal. He will see substantial reference to this point in that agreement.

[Mark Pawsey (Rugby) (Con)]

Today’s announcement is important and good news for the supply chain for the new nuclear plants. I wonder if I might join my hon. Friend the Member for Gloucester (Richard Graham) in asking the Secretary of State whether he anticipates a similar good news announcement for companies in the supply chain for the Swansea Bay tidal lagoon, such as GE Power based in Rugby.

[Greg Clark]

My hon. Friend tempts me to make a different statement from the one I made, but I note and have heard before his consistent advocacy of the benefits of that project to his constituency.

Industrial Strategy

Debate between Greg Clark and Mark Pawsey

Wednesday 18th April 2018 Commons Chamber

[Greg Clark]

It is not a question of admitting to it—I want to boast of it. When I talk about our strengths and talents, those are the strengths of the people of the United Kingdom as workers, researchers and leaders of local economies. The prosperity of our economy is founded on our workforce. The hon. Lady is absolutely right to emphasise the importance of investment in people. I have mentioned investment in research and development, but it is important for her to reflect that much of that is about investment in people, making sure that we have research funding and opportunities for researchers so that we have brilliant individuals as well as physical infrastructure.

When it comes to investment in skills and the workforce generally, the hon. Lady is absolutely right. I have mentioned the importance of skills training. One thing that we and Members from across the UK know is that there are shortages in many parts of the country, particularly in engineering and technology skills. That is before we have the full benefit of the opportunities set out in the industrial strategy, which highlights and commits us to a long-term programme of upgrading not just investment—although that is important—but the prestige attached to technical qualifications in this country, and to emphasising the importance of that. There is, for example, nearly half a billion pounds of investment in teaching maths, digital and technical education.

I am pleased that the hon. Lady mentioned the Matthew Taylor review, because it is exactly the right kind of strategic approach that we should take. We know that new technology is changing the world of work and that it poses challenges to established ways of working. Rather than simply ignoring that and not addressing those changes, in commissioning Matthew Taylor to review the emerging economy we equipped ourselves with some very important reforms that Taylor himself advised we should consult carefully on. That consultation came from a review commissioned by the Government, who absolutely have the intention to deliver on its recommendations. The consultation is the way to proceed with legislation and regulation.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State refers to the prestige of an industrial qualification as a device to attract the most capable people into industry and manufacturing. Does he agree that it is also important for manufacturing to show in a more open way exactly what the manufacturing environment is like now? Far too many people see manufacturing in the style of dirty old factories such as those that existed a generation ago. The manufacturing landscape has changed, but I do not think that we have managed to get that message across to our young people to encourage the brightest and the best to make it a career destination.

[Greg Clark]

My hon. Friend is absolutely right. It is sometimes not known and cannot be seen what modern manufacturing is about. I had the great privilege and pleasure of visiting the Big Bang Fair at the National Exhibition Centre in Birmingham a few weeks ago, which does precisely what he advises. The excitement among the young people there, seeing the possibilities available, was palpable. It does a great job.

I know that you are rightly interested in other Members being able to contribute, Madam Deputy Speaker, so I will make some progress and give colleagues the chance to speak. Along with the measures in the Taylor review, it is very important, when new technologies require different skills from the existing workforce, that we back industry in providing the training that is needed. In that regard, the national retraining scheme being developed in conjunction with employers and trade unions, focusing initially on construction and digital skills, is a very important commitment. It is also vital that we upgrade our infrastructure, whether physical infrastructure or the broadband and mobile connections on which many new businesses depend, and again important commitments have been made in that regard.

When it comes to places, the leadership being given to many of our great cities by elected Mayors, not least those elected last year, must be combined with the ability, powers and resources necessary for them to make a difference to their areas. One of our commitments was a fund to enable local leaders better to connect not just city centres but the networks and clusters of smaller towns around our cities. An early example was the decision by Andy Street, Mayor of the West Midlands, to use the investment available through the industrial strategy to fund a metro extension to Brierley Hill and Wednesbury, which connects two important parts of the west midlands to Birmingham and the wider area.

On the business environment, we know that there is a problem of composition. We have some highly productive, highly performing businesses as well as what the Bank of England has identified as a long tail of less productive businesses, and transmitting the lessons from the best to the others is an important part of the work that we need to do.

I will conclude by saying a word about the importance of particular sectors. We have talked about the north-east and Teesside, the west midlands and other parts of the country. We know that the clusters of excellence in those areas can be very important not only in driving productivity but in attracting new investment and becoming the location of new businesses.

Oral Answers to Questions

Debate between Greg Clark and Mark Pawsey

Tuesday 13th March 2018 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

4. What recent steps he has taken to improve electric vehicle charge point infrastructure.

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

Britain is building one of the best charge point networks in the world, and our £400 million charging infrastructure investment fund, announced at the Budget, will see thousands more charge points installed across the UK.

[Mark Pawsey]

Yesterday, the Business, Energy and Industrial Strategy Committee visited the London Electric Vehicle Company in my constituency. The Secretary of State will remember opening it a year ago, and it is great that we are now seeing electric taxis on the streets of London. We also went to the Electric Vehicle Experience Centre in Milton Keynes, where we heard concerns about the fact that the lack of compatibility between chargers and connectors is in danger of putting people off buying an electric car. What will the Secretary of State do to encourage the industry to adopt a standard?

[Greg Clark]

I am delighted that the Committee went to see the electric taxi company. The opening, at which my hon. Friend accompanied me, was a fantastic event. Having such compatibility is a very important matter. The recently introduced Alternative Fuels Infrastructure Regulations 2017 set minimum standards for publicly accessible charge points. In addition, the Automated and Electric Vehicles Bill, which is currently before Parliament, will give the Government new powers to regulate these technical standards.

Domestic Gas and Electricity (Tariff Cap) Bill

Debate between Greg Clark and Mark Pawsey

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

[Greg Clark]

My hon. Friend is absolutely right. We have already had the pleasure of debating that issue. The hon. Member for Southampton, Test (Dr Whitehead) has spent many hours in Committee scrutinising the Smart Meters Bill, which will contribute to making the energy system more interactive and therefore more resilient.

The Bill follows precisely the advice to set a non-renewable price cap for a short period while competition increases. Address the problem was one of the commitments made by the Prime Minister when she entered Downing Street. I recognise the important campaigning work done by my hon. Friend the Member for Weston-super-Mare (John Penrose) and, indeed, by the right hon. Member for Don Valley (Caroline Flint).

The Bill comes to us today having been scrutinised in draft by the Select Committee on Business, Energy and Industrial Strategy. I am very grateful to the Committee, and to its Chair and members, for their swift yet thorough scrutiny. The Committee took evidence from a wide range of stakeholders and produced a well-considered report. It agreed with the CMA’s minority report and with the Government’s proposed approach.

The Bill has been supported by consumer groups and, indeed, by many energy suppliers. Citizens Advice has said:

“We welcome the…Bill, which will prevent loyal customers being ripped-off”.

Octopus Energy, one of the newer and more innovative entrants to the market, has called the Bill:

“A crucial step towards a fair energy market in which energy suppliers compete to offer their customers the best value and service”.

The Bill constitutes a sensible intervention to address a specific problem in the market. The Government are not setting prices, and this is not a price freeze. Such a freeze could disadvantage consumers by leaving them stuck on high prices when underlying costs fall, or force energy suppliers to face the entire risk of international commodity markets. Subject to parliamentary approval, the Bill will require Ofgem to cap domestic standard variable and default tariffs until 2020. It will be for Ofgem to decide the methodology and the level of the cap, as appropriate. The cap will stay in place until the end of 2020. Ofgem will then be required to assess the conditions for effective competition in the market and make a report and recommendation to the Government, which I am sure the House and its Select Committees will consider as well.

The price cap can be continued for one year at a time up to the end of 2023, when a sunset clause will come into effect. The Government have no wish for the price cap to become a permanent feature of the landscape. The inclusion of the sunset clause relates directly to the point made by my hon. Friend the Member for Taunton Deane (Rebecca Pow) that we need to address the problem by increasing competition. Ofgem currently has the power to impose a cap for vulnerable consumers, and is taking steps to do that. When consumers make an active choice to opt for green standard variable or default tariffs, they will be able to continue to pay extra for such tariffs if they choose, to prevent unintended consequences. That was a very helpful recommendation from the Select Committee, and I can confirm that all of its recommendations have been accepted in full and are reflected in the Bill before the House today.

The Government want the market to thrive. We continue to promote competition as the best driver of value and services for consumers.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State talks about the setting of the cap, and setting it at the right level in the Bill is incredibly important. If it is too high, it will not achieve its objectives; if it is too low, there is a danger that some of the new entrants into the market will fail. The power is with Ofgem, but we have already heard that Ofgem has not been exactly brilliant in exercising its existing powers. Is the Secretary of State confident in Ofgem’s ability to set the cap at the right level?

[Greg Clark]

I am. There has been recognition from Ofgem that this role is perhaps more important than was suggested by the attention it has been given in the past. Most observers recognise that the work on setting the cap for consumers on prepayment meters has been effective and that competition still exists in the market.

Oral Answers to Questions

Debate between Greg Clark and Mark Pawsey

Tuesday 12th December 2017 Commons Chamber

[Greg Clark]

Britain leads the world in climate finance, and one of the major contributions the Prime Minister and the Minister for Climate Change and Industry are making is in promoting the availability of green finance in the UK—that includes Edinburgh as well as London. That is getting a very good reception.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State has already spoken about the great news for the west midlands on electric vehicles. He will remember the all-new electric taxi being manufactured at Antsy Park in my constituency, and the taxi was certified for use in London this week. Does he agree that the opportunity for a platform for a delivery vehicle is also very important?

[Greg Clark]

I do agree with my hon. Friend. I congratulate the London Taxi Company on having the first electric taxi, manufactured in the west midlands, on the streets of London this very week—again, a big vote of confidence in our world-beating motor industry.

Oral Answers to Questions

Debate between Greg Clark and Mark Pawsey

Tuesday 27th June 2017 Commons Chamber

[Greg Clark]

I am very surprised to hear that question from the right hon. Gentleman. Of all the people in this House, he was a great proponent of a city deal and a devolution deal for Birmingham and the west midlands, the value of which is over £1 billion. Looking around the Chamber, there are many Opposition Members who have made precisely such a case that we should invest in areas of the country, outside of national programmes. It seems to me to be reasonable to continue that programme.

[Mark Pawsey (Rugby) (Con)]

I took soundings from small businesses in Rugby at a small business expo run by the Federation of Small Businesses on Friday. Their single biggest concern related to the recruitment of staff, in that the skills they are looking for often are not available among local jobseekers. Given those instances, will the Secretary of State reassure us about the training of young people and the ability to recruit staff from the EU moving forward?

[Greg Clark]

I will indeed. One of the big findings, which has been reinforced by the consultation on the industrial strategy, is that we need to ramp up the level of skills and technical education and training in this country. We will respond to the consultation in the weeks ahead, but my hon. Friend can rest assured that that will be one of its key pillars.