Ian Lavery
Main Page: Ian Lavery (Labour - Wansbeck)
Mr Davey
As the hon. Lady will know, we intend to announce our competition for CCS soon. I cannot give her the date today, but we are clear that we will make it soon and in time to dovetail as best as possible with the European money that will also be available for some of these pilots.
Ian Lavery
Will the Secretary of State confirm which of the four carbon capture and storage projects will be gas, which will be coal and when they will be delivered?
Mr Davey
I have to explain to the hon. Gentleman that there will be a competition. People will put in projects of all different types; then the competition will be judged. It would be completely wrong for me to say that we will favour one technology or another. There is going to be a competition, and it will be carried out with proper process.
A skilled and flexible work force are not only critical in delivering a cost-effective, low-carbon transition; they are also a key part of this Government’s offer to young people. The Department for Business, Innovation and Skills has set out a vision for radical reform of the further education and skills system to deliver skills for sustainable growth. Apprenticeships are at the heart of this strategy—arming employers and individuals with the support, funding and information they need to make the right choices. The skills strategy for England covers the whole of the economy, including green skills and sustainable development. It is a demand-led model to help deliver the skills training that businesses and individuals need.
The Government have put in place institutions to support this approach, such as the growth investment fund and national skills academies, and we have set up specific initiatives to ensure that we have in place the skills to meet our green objectives. These include a national skills academy for environmental technologies to develop standards, deliver training and upskilling for tradesmen and women and technicians to install and maintain low-carbon systems; funding for a renewables training network, led by RenewableUK, to tackle the shortage of skilled workers in green energy industries; a talent bank for the gas, power, waste management and water industries led by the energy and utility skills sector council; the creation of up to 1,000 green deal apprenticeships, subject to business take-up; a new “skills for a green economy” group of sector skills councils and others to help businesses understand and address green skills needs; and work to raise awareness of the green economy through the TUC-led unionlearn initiative. Taken together, they show how we are creating a strong and flexible platform to meet the skills needs for the green economy transition.
The coalition remains absolutely committed to the low-carbon transition. We will secure clean energy supplies at the lowest cost to consumers, making our homes and businesses more efficient and our electricity greener. Since taking office, we have put in place new policies to secure growth in clean energy investment, jobs and capacity. These policies are already bringing real benefits up and down the country. I have to say that I do not recognise the characterisation of this Government’s record that we heard from the right hon. Member for Don Valley. I do, however, agree with the Opposition’s contention that the low-carbon transition has the potential to be a major source of jobs and growth for the United Kingdom. I encourage Opposition Members to stop talking down our industries and our opportunities and instead to focus their energies on making the case for the low-carbon transition, in this place and in their constituencies. I believe that the sector has a hugely positive future, and that it is central to our growth strategy.
Nic Dakin (Scunthorpe) (Lab)
It is a pleasure to follow the hon. Member for Sittingbourne and Sheppey (Gordon Henderson), who spoke much sense in his contribution, particularly on the opportunities provided by the renewables sector, both onshore and offshore wind, for ensuring energy security, which is a key issue for businesses and individuals across this country, and for creating jobs, because the motion is about jobs and growth in a low-carbon economy. This is a great opportunity for a renaissance, a second industrial revolution in green jobs to drive the UK forward into this century and to create jobs and growth.
I particularly value the opportunities associated with renewable energy because close to my constituency, on the south Humber bank, there is a huge opportunity to develop a big area of land for the manufacture and deployment of renewables technology. It is a great opportunity, along with the potential for development on the north bank of the Humber, which my hon. Friend the Member for Kingston upon Hull North (Diana Johnson) outlined in relation to Siemens’s interest there. Together with the Able UK development on the south bank, that represents a site of European significance for driving the UK’s renewables industry forward. As has already been said in the debate, we need the opportunity not only of site, but of skills. We must ensure that the proper skills development is in place to take advantage of that opportunity.
I am concerned that UK taxpayers and energy bill payers should not end up resourcing jobs outside the UK. It is absolutely crucial that we ensure that the supply chain is developed to provide jobs within the UK’s renewables sector. Otherwise, we will find a huge missed opportunity. I will be interested to hear what the Minister has to say about how the Exchequer, the Department of Energy and Climate Change and the Department for Business, Innovation and Skills are working together to ensure that appropriate incentives are in place to develop the renewables industry supply chain in the UK so that we get maximum benefit. We also need to ensure that the penalties that are in place for energy intensive-industries are properly addressed. Industries such as the steel industry, which is crucial to not only the old industries of the past, but the new renewables industries, have made huge strides in becoming energy efficient.
Ian Lavery
My hon. Friend mentioned energy-intensive industries. Is he aware that, due to the carbon taxes that the Government are imposing on energy-intensive industries, Rio Tinto Alcan will close its plant in my constituency sometime this week, which will affect 600 jobs directly and 3,000 in the supply chain?
Nic Dakin
My hon. Friend makes a good point. We have already heard that 400 jobs are going in Sittingbourne and Sheppey, and now more jobs are going in his constituency. That is of great concern and underlines even more why we need to ensure that what happens in the renewables industry reclaims our industrial future in a way that we are at risk of not doing. The Chancellor came forward in the autumn statement with a package relating to energy-intensive industries, but it is still unclear to those industries what the detail of the package means. It is time that businesses on the ground had some clarity on what the package will mean. Otherwise, we will find more closures by companies such as Rio Tinto Alcan. Time is of the essence. We cannot afford to dilly-dally on such matters.
During the debate many hon. Members have drawn attention to the shambles of the solar feed-in tariff saga. I hope that everyone in the House and outside has learned from the mistakes so that we can ensure that in other significant areas, such as wind and other renewables, we do not make similar errors and create missed opportunities. I have said everything I wished to say, and I thank you, Mr Deputy Speaker, for allowing me to contribute.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
This has been a great debate, with terrific contributions and thoughtful speeches by Back Benchers from all parts of the House. The level of expertise and knowledge on the green agenda across the Chamber never ceases to surprise and encourage me. I shall shortly address many of the points raised.
However, once again, the Labour Front Benchers were out of step with the mood of the House because of their desperate rush to score party political points at the expense of measured and informed argument. The fact is that the green economy, like the rest of the economy, faces a challenging time. There are real barriers and obstacles to growth to be navigated. The coalition is determined to tackle them with vigour, ambition and optimism. However, the green economy does not exist in a vacuum, and these are tough times.
There are no easy solutions for dealing with Labour’s legacy of debt and borrowing. In the real world, the green economy is confronted with the same financial challenges as every other industrial sector. Contrary to the gloomy, downbeat predictions from the Opposition, the green economy is rising to the challenge. It is bearing down on costs, introducing greater financial rigour and delivering better value for money for consumers and investors alike. Although there are no easy answers or quick fixes for Labour’s debt crisis, the green economy now has a Government who are genuinely on its side for the long term. Perhaps that is why Ernst and Young’s latest report upgraded the UK from the sixth to the fifth most attractive place in the world to invest in renewables, and why 80% of the 150 global investors in Credit Suisse’s recent survey voted for the UK as having the best regulatory environment for the next five years. After years of Labour’s stop-go policies, transparency, longevity and certainty are at the heart of our policy making.
Let me reassure the right hon. Member for Don Valley (Caroline Flint) that the coalition’s ambition to be the greenest Government ever has not withered; far from it. In 2012, our green agenda will move up a gear. This is the year in which the coalition will move from ambitious green rhetoric to bold deployment. On a range of iconic programmes, we are taking huge strides forwards. We are delivering the same level of ambition, but at a lower cost to the consumer. More green for less cost—that is the challenge for the low-carbon economy in 2012; that is “Green economics 2.0.” Many Government Members echoed that. We are happy to be judged on our record.
The plans to establish Europe’s first green investment bank are well under way. In the meantime, UK Green Investments will invest £775 million in the green economy. The green deal, our transformational new market for energy efficiency and the most ambitious home improvement programme since world war two will be launched in the fourth quarter of this year and will build momentum in 2013 and 2014. Europe’s first renewable heat incentive is already investing £860 million in British innovation.
The reforms to feed-in tariffs were challenging and difficult for many companies, but they were absolutely necessary. However, as a result of some difficult decisions that Labour shirked, we can afford to increase massively our ambition for solar and a range of other decentralised technologies. Thanks to the firm action to reduce the cost of FITs, we have a bigger scheme offering better value.
The year 2012 will be the one in which we finally shrug off the humiliation left by Labour of being the third worst country in Europe for renewable deployment. This year, we expect to install at least 4 GW of green energy—double the amount that we inherited from the Labour Government. We are also building for the long term, not only with our forthcoming electricity market reforms and their game-changing measures for energy efficiency and demand production, but with our ambitious plans for marine energy, which will harness wave and tidal power; a world-leading programme for carbon capture and storage; and the ambitious roll-out of a new nuclear fleet. That all means that we can face the 2020s with growing confidence.
The hon. Member for Sedgefield (Phil Wilson) spoke encouragingly of a range of renewable energy projects and initiatives in his constituency. I am happy to invite him to meet my officials to see how we can help to develop those programmes.
My hon. Friend the Member for Skipton and Ripon (Julian Smith) spoke with authority about CCS. He spoke up for the positive engagement that there now is between the industry and my Department.
Gregory Barker
I will give way if there is time a little later, but I want to respond to some more contributions.
The hon. Member for Vale of Clwyd (Chris Ruane) was right to flag up the extraordinary industrial innovation in the green sector, which is creating jobs in his constituency.
My right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) spoke with genuine passion. I understand his long-held views on nuclear power. Although he takes a different view from mine, I welcome his canter through the range of other coalition policies that he wholeheartedly endorses. I thank him for paying tribute to the right hon. Member for Eastleigh (Chris Huhne) for his contribution to the international climate negotiations at Cancun and especially at Durban, where he played an important role.
The hon. Member for Edinburgh North and Leith (Mark Lazarowicz) spoke strongly in favour of the green investment bank. I assure him that we are pressing ahead at full speed with that flagship coalition policy, which was announced in opposition and is being seen through in government by our reforming Chancellor.
My hon. Friend the Member for Great Yarmouth (Brandon Lewis) is a great champion for a range of renewables, especially offshore wind. His active support for a huge number of new green jobs in this area is very valuable. I assure him that we are determined to maximise the value to British business of the deployment of these new technologies, unlike Labour. In the last offshore wind farm to be constructed under Labour, 80% of the components were manufactured overseas and imported. That is a shameful record that the coalition is determined to turn around.
My hon. Friend the Member for Waveney (Peter Aldous) was right to point to the important role that East Anglia can play in the new green economy. I listened carefully to his thoughtful comments and suggestions. I was only sorry that my hon. Friend the Member for Suffolk Coastal (Dr Coffey) was cut off in her prime, rather like Adele at the Brits, when extolling the virtue of the East Anglian energy coast.
The hon. Member for Kingston upon Hull North (Diana Johnson) was right to celebrate the investment in her area by Siemens and to praise the many local individuals who worked hard to secure it. However, she is wrong to think that there was not a strong and concerted push from Downing street and my Department to bring that investment to her area.
My hon. Friend the Member for Romsey and Southampton North (Caroline Nokes) was right to focus on the excitement on the Back Benches about a range of innovative new technologies that are coming forth and fuelling a green recovery, particularly the anaerobic digestion initiatives in her constituency.
My hon. Friend the Member for Sittingbourne and Sheppey (Gordon Henderson) made a great speech. He was right to point to the falling costs of wind energy and its future as a reliable source. He was also right to remind us that home-produced renewables not only help us to meet our carbon targets, but add to the UK’s energy security by reducing our exposure to fluctuating international fossil fuel prices.
The hon. Member for Scunthorpe (Nic Dakin) was right to point to the need for more skills. I think he will be pleased about further announcements that my Department will make shortly on that issue and on apprenticeships.
My right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley) injected a degree of rigour back into the debate. I am afraid we do not always see eye to eye on these issues, and I have to say that the green investment bank will play a very powerful role, not least in leveraging in many times more money in private capital than from its own capitalisation. It will be a real lever for growth. I am now in a position to make a new announcement to the House about the location of the green investment bank: I can formally confirm that it will not be in Hitchin.
The hon. Member for Islwyn (Chris Evans) spoke about our use of natural resources and the need to install energy efficiency measures in homes, and I agreed with many of his points.
Despite the partisan note injected by Opposition Front Benchers, I believe that there is still much that unites Members throughout the House in their commitment to green investment and climate change. The real difference, however, is that Government Members believe in enterprise, the private sector, innovation and the genius of British business. The Labour party, I am afraid, is retreating to its left-wing comfort blanket of heavy-handed regulation, punitive taxation, fat Government subsidies for the chosen few and the dead hand of state planning. That is not our vision. We believe that the green economy can be an engine for growth, not a burden on taxpayers.
Globally, the clean energy sector continues to show dramatic growth, and we are determined for the UK to seize an increasing share of that valuable world market. Here at home, the Labour party had 13 years to deliver on the ground, but for all the big talk, its achievements were very modest. Come 2015, this historic coalition will be very happy indeed to be judged on its record of delivery.
Question put.