Oral Answers to Questions Debate

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Department: Cabinet Office

Oral Answers to Questions

Jesse Norman Excerpts
Wednesday 12th October 2016

(7 years, 6 months ago)

Commons Chamber
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Lord Evans of Rainow Portrait Graham Evans (Weaver Vale) (Con)
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10. What discussions the Government have had with oil and gas companies on support for North sea industry.

Jesse Norman Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)
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The Government continue to work closely with industry, both directly and through the Oil and Gas Authority, to drive investment and support jobs in the North sea.

Mark Menzies Portrait Mark Menzies
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Revenue from North sea oil has dropped by more than £10 billion over the past two years. What steps are the Government taking to ensure that public services in Scotland do not suffer as a result of this shortfall in public revenue?

Jesse Norman Portrait Jesse Norman
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As my colleague rightly notes, there has been a shock in the oil and gas industry resulting from global changes. As the latest public finance figures show, being part of the UK protects living standards in Scotland. The drop in revenues has been offset by a vigorous programme of Government support in tax relief and allowances, as well as in a host of other areas.

Lord Evans of Rainow Portrait Graham Evans
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The supply of home-grown feed stocks is vital to the Cheshire chemicals industry and is in part reliant on the success of North sea oil and gas. Can the Minister assure the House that the Government will continue to take steps to support the many jobs in our foundation industries that depend very much on this sector?

Jesse Norman Portrait Jesse Norman
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My colleague is absolutely right to highlight this issue. The UK chemicals sector is a vital part of our manufacturing industry and an important contributor to the economy. The Government are working closely with the industry to implement the desire to grow gross value added by £105 billion by 2030, and a key element of that will be delivering competitive energy and feed stock supplies.

Callum McCaig Portrait Callum McCaig (Aberdeen South) (SNP)
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Industry has been crystal clear that more work needs to be done to boost exploration. Will the Government bring forward exploration incentives in the autumn statement to protect employment and boost production?

Jesse Norman Portrait Jesse Norman
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Exploration remains very important. The continental shelf is depleting. As the hon. Gentleman will know, the Government have taken some serious steps in Aberdeen with the city deal. I will not comment on the autumn statement, but it is an issue of some focus for the Government.

Peter Grant Portrait Peter Grant (Glenrothes) (SNP)
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Since Question Time began this morning, five Members on the Scottish National party Benches have asked about membership of the European Union, and two have asked about Scottish jobs. Seven Members on the Conservative Benches wanted to talk about Scottish independence. Which group would the Secretary of State describe as being obsessed with independence?

Jesse Norman Portrait Jesse Norman
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I can do no better than to refer the hon. Gentleman to the words of Adam Smith, who said that the Union of 1707 was

“a measure from which infinite good has been derived”

for Scotland.

John Bercow Portrait Mr Speaker
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Order. There is far too much noise in the Chamber. The Minister is a debutante at the Box. He ought to be heard.

Jesse Norman Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)
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Not quite a debutante, Mr Speaker—we can only hope.

The steel industry in Scotland remains a vital part of the UK steel industry as a whole. The Government continue to engage with steel companies, devolved Governments and trade unions to ensure a sustainable and prosperous steel industry for the UK.

Andrew Murrison Portrait Dr Murrison
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Liberty House is taking more than 70% of its new workforce from among former Tata Steel employees, which is good news for Motherwell, and it should be congratulated on that. Will my hon. Friend congratulate the company, in particular, on its apprenticeship programme, which is a positive endorsement of Britain’s engineering future?

Jesse Norman Portrait Jesse Norman
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My hon. Friend is absolutely right to focus on the Dalzell plate mill, which opened last month under its new owners, Liberty House Group, with the Government’s support. As this illustrates, we have taken clear action to help the industry, for example by securing state aid to compensate for energy costs and through flexibility over EU emissions regulations and many other areas. I also share his delight in the work that has been done on apprenticeships.

Marion Fellows Portrait Marion Fellows (Motherwell and Wishaw) (SNP)
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During recess, I attended the reopening of the Dalzell works in Motherwell. Will the Minister speak to the Scottish Government about how steel jobs can be saved by putting together a package that really works?

Jesse Norman Portrait Jesse Norman
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I am grateful to the hon. Lady. The Government stand ready to work together with the Scottish Government on any area that can support and protect Scottish jobs and Scottish industry.

The Prime Minister was asked—