Oral Answers to Questions

Jesse Norman Excerpts

Tuesday 8th November 2016 Commons Chamber

[Rob Marris (Wolverhampton South West) (Lab)]

1. If he will discuss with the operators of the Hunterston B power station the reported fractures in the keyways of that power station.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)]

The safety of operating nuclear reactors in the UK is regulated by the independent Office for Nuclear Regulation, which is satisfied that Hunterston B is safe to operate. The issues referred to by the hon. Gentleman are addressed transparently in the ONR’s most recent annual report to Parliament. The ONR will continue to oversee these issues closely and will permit a nuclear plant to operate only if it is satisfied that it is safe.

[Rob Marris]

My thanks to the Minister for that. Nuclear safety is important. The blueprint for Hinkley Point C is the Flamanville European pressurised reactor in Normandy, yet in 2015 it was discovered that Flamanville’s steel reactor vessel was faulty and at risk of splitting. The French company Areva is to be a major supplier to Hinkley Point C, yet in May the independent French nuclear safety authority discovered that more than 400 of Areva’s reactor components were dodgy and Areva admitted that it may have falsified hundreds and hundreds of its safety assessments. What assurances can the Minister give the House that Hinkley Point C, if built, will be safe?

[Jesse Norman]

I am grateful to the hon. Gentleman for raising that point. As he may know, the issue of the anomalies and inconsistencies associated with the Areva components has been the subject of an independent review by the ONR. The ONR has made it perfectly clear that learning from the EPR under construction in Flamanville must be taken into account in the manufacture of components to be used at Hinkley Point C.

[Andrew Bingham (High Peak) (Con)]

3. What steps his Department is taking to promote innovation (a) in the regions and (b) nationally.

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[Ian C. Lucas (Wrexham) (Lab)]

4. What steps he is taking to increase the level of infrastructure investment outside the south-east.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)]

The Government are committed to providing significant infrastructure investment across the UK. Through the first two rounds of growth deals, the Government have allocated close to £5 billion to local enterprise partnerships outside London and the south-east to invest in their priorities for growth. With matched funding from the private sector, that is helping to deliver billions of pounds of investment in infrastructure throughout England. City and devolution deals have also committed more than £8 billion to areas outside London and the south-east through long-term investment funds; £1 billion will be in the midlands engine and £3 billion across the northern powerhouse.

[Ian C. Lucas]

Global businesses such as Kellogg’s, Airbus, JCB and Toyota have sited themselves in north-east Wales and have prospered, making the area one of the most successful industrial areas in the UK. We would love to see the hon. Gentleman there. Will he bring with him the investment that these businesses deserve for their confidence in north-east Wales as an area?

[Jesse Norman]

I am grateful to the hon. Gentleman for that question and mourn the collegiality of the Select Committee on Culture, Media and Sport now that I have crossed on to the Front Bench. I share his admiration for the work of those companies; I had the great pleasure of visiting Airbus only a week or so ago. I would be delighted to visit his area in due course. The Government support those strategic industries in many different areas.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

In view of the announcement made by the Department for Transport this morning that parts of the west coast main line might not be electrified until 2024, does my hon. Friend not agree that it is essential that each infrastructure project dovetails with another? The third runway at Heathrow might well be built before the west coast main line is fully electrified.

[Jesse Norman]

I absolutely take my hon. Friend’s point, but these issues need to be considered in the round and there are provisions in the current structure for local funding to allow areas to share visions and investment potential.

[Jenny Chapman (Darlington) (Lab)]

The Government know how important the energy sector is to the north-east and in the past have made commitments about insisting on local content in projects such as offshore wind. What are they doing to assess, monitor and, if necessary, impose penalties when promises of local content are not met?

[Jesse Norman]

The Government have a rigorous assessment process for local content. Most recently, the Hinkley Point C station was subject to provisions for more than 60% local content. If the hon. Lady knows of any instances in which the Government are not following up on this, she is welcome to write to the Department.

[James Heappey (Wells) (Con)]

Further to the question asked by my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) about the west coast main line, may I ask about parts of the Great Western railway that have similarly been deferred this morning, which is not great news for our region? As the Secretary of State develops an industrial strategy for the south-west, will he agree to meet MPs from that region and perhaps support us in changing the mind of the Department for Transport?

[Jesse Norman]

I cannot speak for the Secretary of State, but the hon. Gentleman will know that several of the LEPs are my responsibility. I meet them regularly, and will continue to champion their interests.

[Ms Margaret Ritchie (South Down) (SDLP)]

Will the Minister outline what discussions about infrastructure investment have taken place with devolved regions and with the Chancellor in advance of the autumn statement?

[Jesse Norman]

I have had the opportunity to meet both Invest Northern Ireland and the Minister for the Economy in Northern Ireland, and those conversations continue. I cannot speak for colleagues, but they also have a responsibility for the devolved Administrations.

[Mr Philip Hollobone (Kettering) (Con)]

In last night’s Adjournment debate led by my right hon. Friend the Member for Loughborough (Nicky Morgan), the Under-Secretary of State for Transport, my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) failed to tell the House that he would honour the Government’s pledge to electrify the midland main line north of Kettering. There is cross-party support for this scheme, which has the best ratio of investment to benefits in the whole country. This is the third question we have had this morning about rail electrification. Will the Minister liaise urgently with the Department for Transport to get these schemes back on track?

[Jesse Norman]

Of course the Government recognise the concern that has been raised. This is a matter for the Department for Transport, but I have no doubt that it will be attending closely to today’s proceedings.

[Carolyn Harris (Swansea East) (Lab)]

5. What steps his Department is taking before the Christmas retail period to prevent counterfeit and substandard electrical goods from being sold.

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[Mr Mark Williams (Ceredigion) (LD)]

9. What his Department’s policy is on the future of the Swansea bay tidal lagoon project.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)]

We will consider the findings of the independent review of tidal lagoons, due to report by the end of this year, before deciding how to proceed on the proposed Swansea bay tidal lagoon project. We hope that the review will contribute to and help develop the evidence base for that technology. That will ensure, with luck, that all future decisions made regarding tidal lagoon energy are in the best interests of the UK and represent value for money to the consumer.

[Mr Williams]

I thank the Minister for that response. He knows, I am sure, how important the project is to Swansea bay and Wales, and its potential for very good news for the renewable sector across the UK. Despite the somewhat gloomy timetable—the end of the year, the Minister says—does he anticipate that the Hendry review will give the Government the assurances that they need to deliver their manifesto promise and proceed with a pioneering project that is critical to the south Wales economy and the future of the UK energy mix? In short, can we get on with it?

[Jesse Norman]

I am grateful to the hon. Gentleman for that helpful clarification at the end. It is widely understood that there is support for the project among many colleagues. The Government have received an early draft, but we await receipt of the final report, which is due by the end of the year. We will give it the careful consideration that such an important issue deserves.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

We have a tremendous opportunity in front of us if we are ambitious to create the world’s first tidal energy industry here in the United Kingdom. Does my hon. Friend agree that key to making this work is recognising that the Swansea project is essentially a pathfinder and that the future lagoons, which will all be larger, will bring down the costs very significantly?

[Jesse Norman]

Yes, that has been widely suggested. It is fair to say that the issues being addressed by the review are complex and relate to a new and untried technology—potentially, a place-specific technology. The Government will need to look closely at the review’s specific conclusions and how far they can be generalised as part of a wider strategy.

[Stephen Kinnock (Aberavon) (Lab)]

The future of the British steel industry depends on the approval of vital cutting-edge projects such as the Swansea bay tidal lagoon. Will the Secretary of State please now call time on the two years of prevarication, commit to a timely and positive decision, and ensure that that decision is included in the autumn statement on 23 November?

[Jesse Norman]

Of course, in the context of the steel industry, it is important to recognise the commitment that the Government have made to Hinkley Point C—a major industrial commitment of their own. I recognise the hon. Gentleman’s point, but we are not going to be railroaded into going beyond the timetable that has already been described. An orderly process is in place, a highly respected former Minister is running the thing, and we will be looking at the issue with the care and consideration that it deserves.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

It is reliable, it is green, it would form an important part of our energy mix—and it would boost the south-west economy to boot: will the Minister support it?

[Jesse Norman]

I am tempted by my hon. Friend’s enticing fly, but I am not going to take it because the process must be given the proper consideration that it deserves. One of the key questions that the Hendry review and its consideration will need to address is whether the project offers proper value for money. I notice that that was not included in my hon. Friend’s list of enticing benefits.

[Christina Rees (Neath) (Lab/Co-op)]

Swansea bay tidal lagoon would power 155,000 Welsh homes for 120 years, sustain 2,232 construction and manufacturing jobs and safeguard our steel industry. Will the Government now give Swansea bay tidal lagoon the green light and trigger the new dawn of an industry worth £15 billion to Wales and the UK?

[Jesse Norman]

I am loving the rhapsodic language that the hon. Lady uses; to it I counterpose the boring bureaucracy of due process and proper consideration.

[Carol Monaghan (Glasgow North West) (SNP)]

10. What steps his Department has taken to develop a long-term strategy for business growth since the UK’s decision to leave the EU.

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[Mark Pawsey (Rugby) (Con)]

T2. Returning to the Swansea Bay tidal lagoon project, does the Minister agree that a decision to proceed, making use of expertise in power generation provided by GE Energy in Rugby, would provide an opportunity for the UK to become a leader in this sector?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)]

I will not add to what we have already said about the Swansea Bay tidal lagoon, but I want to celebrate—the industrial strategy will celebrate—the work of world-leading companies such as GE Energy in my hon. Friend’s constituency and their capacity to benefit from opportunities arising from low-carbon technologies.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

T3. I have always got on very well with the Secretary of State, but may I ask him not to be complacent? I have just been to a meeting of the leaders of Russell Group universities, who are saying that the sector is in meltdown post-Brexit in terms of staff, students, and research and innovation. What is the plan? I am known for asking, “What’s the plan, Stan?” What is his plan to put this right?

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[Stephen Timms (East Ham) (Lab)]

T5. The digital economy makes a big contribution in the UK, including in east London, with 43% of its exports going to other EU states. How do the Government plan to protect those exports after we have left the EU?

[Jesse Norman]

The right hon. Gentleman is absolutely right that our digital infrastructure is critical to this country and its long-term economic and industrial strategy. I draw his attention to the report of the Culture, Media and Sport Committee, which I used to chair, on BT’s under-investment in Openreach. If he thinks that there are specific questions to address, we should revisit them after he has seen the industrial strategy.

[Fiona Bruce (Congleton) (Con)]

T7. As the UK is now only 60% self-sufficient in food production, what are the Government’s strategies to encourage the next generation to enter farming and help them to invest in future food production, and therefore help to safeguard our food security?

[Jesse Norman]

My hon. Friend is absolutely right that this is a vital part of the economy. It is very important that more young people are brought into farming and given the chance to do this extraordinarily interesting and valuable pursuit. This country is highly food secure. The Government support new and young farmers through the increased basic payment scheme payments and are committed to increasing the number of apprenticeships in food and farming. I cannot resist adding that I hope that people will have a chance, in due course, to study agri-tech at the New Model in Technology and Engineering institute in Herefordshire.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

T8. Ministers spoke earlier about securing the best possible trade deal for the UK in the context of Brexit, but what evidence does the Secretary of State have that a new UK-EU trade agreement can be completed within two years? Do the Government accept that if such an agreement is not possible, an interim transitional arrangement will be required?

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[Amanda Milling (Cannock Chase) (Con)]

The planning process for building combined cycle gas turbines on sites where coal-fired power stations have historically been situated is complex and takes too long. Will my hon. Friend meet me to discuss the issue and how his Department and the Department for Communities and Local Government can work together to address this matter?

[Jesse Norman]

Yes, I would be delighted to meet my hon. Friend.

[Robert Flello (Stoke-on-Trent South) (Lab)]

Our wonderful resurgent ceramics industry, which produces high-tech cutting-edge ceramics for the future generations, is carefully watching the Government’s Brexit plans. What discussions is the right hon. Gentleman and his Department having with the Secretary of State for Exiting the EU about trade barriers, protectionist dumping by the Chinese and the wider needs of the ceramic industry?

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[Peter Aldous (Waveney) (Con)]

As the hon. Member for Stretford and Urmston (Kate Green) has highlighted, Ofgem’s review of embedded benefits and grid changes is in danger of having unintended consequences. One of these is the roll-out of energy storage. Will my right hon. Friend agree to look into this particular problem?

[Jesse Norman]

Yes.

[Mr David Hanson (Delyn) (Lab)]

Will the Secretary of State look urgently at today’s announcement by the Royal Bank of Scotland on its funding of repayments to small businesses? Will he produce a report on the Government’s response and place it in the Library, so that we can see the Government’s view of this approach by RBS?