British Glass Industry

Jim Shannon Excerpts

Thursday 14th July 2022 Commons Chamber

[Conor McGinn]

My hon. Friend demonstrates the unity of purpose and message discipline on the Opposition Benches, because she anticipates the very point that I was just coming to. In 2020, 76% of container glass was recycled, and the industry has set an ambitious target of a 90% glass collection rate by 2030. To help those efforts, British Glass has called for glass bottles to be excluded from the scope of the UK’s deposit return scheme, which my hon. Friend alluded to, and to be collected instead through an improved system of extended producer responsibility.

Independent evidence has shown that kerbside collections are the most effective route to achieving closed-loop bottle-to-bottle recycling in the UK. The sector was pleased by the recent decision to exclude glass from the upcoming England scheme, but the industry remains concerned about the prospect of multiple diverging schemes across the UK, which would increase complexity, cost and confusion for the public and businesses alike. I wonder whether the Minister might address that point and say what work the Government are doing, alongside regional and devolved authorities, to address those concerns.

The challenge of ensuring that glass making can be built on high-value and sustainable zero-carbon products requires new solutions that fuse elements of research, design, collaboration, innovation and partnership between industry, academic life and political leaders. Not for the first time, we in St Helens are leading the way. A beacon for that is the cutting-edge project that we are working on with Glass Futures, Liverpool city region and our partners in industry to deliver a £54 million centre of excellence, in the heart of the town and our borough, for the sustainable manufacture of glass globally.

Having turned the first sod on that project in February, we are already making huge progress on delivering the 165,000 square foot state-of-the art facility, which will be capable of producing up to 30 tonnes of glass a day and will include the world’s first ever openly accessible multi-disciplinary glass-melting factory. It will give researchers and industry leaders from across the world a unique space to collaborate and experiment with different energy sources, including electricity, biofuels and hydrogen, raw materials and other emerging technologies to demonstrate solutions leading to sustainable energy usage in glass making.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing the debate. I spoke to him beforehand, Mr Deputy Speaker.

At a time when prices are soaring across the world for deliveries, containers and the movement of products, it is good to hear that St Helens is doing so well. Does the hon. Gentleman feel that now is the time to emphasise the best of British produce and manufacturing? For that to happen, the Government—perhaps particularly the Minister, who is always amenable to such ideas—should be funding the relocation of factories and firms back to our shores, as he refers to. That would give local people jobs and give consumers what they want, which is superior British goods.

[Conor McGinn]

I entirely agree. When the Labour party is in government, we are committed to putting at the heart of everything we do the idea that we make, we buy and we sell British. That is hugely important to our economy, not just at a national level and not just for asserting our new place in the world, but for bringing jobs to cities, towns and villages across the whole United Kingdom. I know that that is a sentiment that the hon. Gentleman very much shares.

We are very proud that these ambitious efforts locally put St Helens and the Liverpool city region front and centre at the recent COP26 summit in Glasgow, where we showcased the product not only for its environmental benefits but its social and economic ones. The boost that this will bring to St Helens and our wider region is clear, with, initially, 80 new permanent jobs, over 700 apprenticeship hours, and 100 volunteer hours committed to local green projects. In addition, 50% of project spend will be local, alluding to the point made by the hon. Member for Strangford (Jim Shannon), and 50% of those working on it will come from our city region. So we are thinking globally and acting locally, benefiting our area and its economy, and the environment.

Our efforts do not stop there because, in August last year, working alongside HyNet North West, we carried out a world-first trial with hydrogen on Pilkington’s famous float line that demonstrated that hydrogen, and other low and no-carbon fuels, could be used to fire a float glass furnace safely and effectively. The industry is ambitious to blaze a trail towards the future and those are just a couple of examples of how it is successfully cutting that path.

However, there are some urgent challenges in the present that risk putting the brakes on that and need to be addressed if the British glass industry is to continue to thrive. First, as the Minister will not be surprised to hear, the issue of spiralling energy costs is of significant concern. Like all other energy-intensive sectors, glass manufacturers have seen energy prices skyrocket at an alarming pace, experiencing gas and electricity costs as high as quadruple and triple their usual amount respectively, with prices remaining volatile. Energy already accounts for about a third of overall glass manufacturing costs, and in some cases production costs are now exceeding the price of goods themselves. Put simply, this is not sustainable and the risk to the financial viability of the sector is grave.

Yet little support has been made available by the Government to help firms crying out for short-term assistance, with, for example, the decision not to include flat or container glass in updated eligibility criteria for the compensation scheme to deal with indirect carbon costs. British Glass, on behalf of the whole industry, has written to the Department for Business, Energy and Industrial Strategy for clarity on that decision, as the assessment was based on data from 2016 to 2018, which represents a time before significant changes to imports. British Glass believes that the container sector should also be eligible. I ask the Minister to address that—if not today, then to come back to me on it and to look into the response that the Department has given to the industry. The industry is also awaiting the publication of the renewables exemption scheme consultation, which has been delayed. That is hugely important to the glass sector, which believes that increasing the relief from 85% to 100% would help to reduce electricity prices.

Secondly, energy security and supply, in and of itself, is critical. Glass production remains energy intensive and always will. Glass furnaces must fire continuously to make product in order, essentially, for the industry to survive. Indeed, with the UK’s furnace asset value estimated at in excess of £1.4 billion, closures would be devastating for the industry and wider society. Due to the shortage of refractories and workers, it could take over two years to rebuild a furnace if it lost gas supply. Labour Members have called for a £600 million contingency fund that would boost energy-intensive firms in glass, but also steel, manufacturing and other industries at the same time. I urge the Government to look at this again, as they did with our plans for a windfall tax to help domestic customers with energy costs. In the absence of any forthcoming policies of their own, we are always happy to provide some for them to take. Glass manufacturers need to be protected from shortages in fuel, and the industry has called on the Government to help to ensure this, especially over the coming winter, which is predicted to be a real crunch point. The industry strongly encourages the publication of the National Grid’s “Winter Outlook” without delay to help with preparations.

Finally, there is the challenge of competitiveness. The glass industry is recognised as being at risk of carbon leakage, which means that imposing full UK carbon costs could make manufacturing in the UK globally uncompetitive. We already have higher allowance prices than the European Union, for example. I ask the Government to look into that, and to ensure that the industry is able to remain competitive.

Past and present, glass has always been ingrained in the very fabric of our country. It is part of what makes Britain great, especially in proud communities such as mine in St Helens, where it remains a source of—indeed, a catalyst for—jobs, opportunities and economic growth. It is a symbol of this country’s manufacturing excellence and our rich past, and it remains part of the change and progress that we want to see Britain achieving. That is evident in the way in which this ever-evolving industry is using technology to address the defining issues—for instance, the climate emergency—faced by us as a society, and indeed by the world as a whole. We need concerted support from the Government to tackle the huge challenges that the industry faces, while taking the opportunities that are available.

St Helens glass is the best in Britain. British glass is the best in the world. Let us keep it that way, and let us shout it from the rooftops.

Energy Security Strategy

Jim Shannon Excerpts

Tuesday 5th July 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

Thank you for calling me to speak in the debate, Mr Davies. I thank the hon. Member for Birkenhead (Mick Whitley) for securing it. By doing so, he ensured that we all have a chance to feed into the process. Given the feedback from all parts of the Chamber, the issue creates much interest. There might be some differences in how to do things, but the realisation of the goal—what we have to achieve—is clear to everyone. It is always a pleasure to see the Minister in his place, and I look forward to his response.

Only this morning, in a Westminster Hall debate on low emissions from vehicles— buses in particular—we had the chance to look at a greener environment in terms of transport. Another Minister—the Under-Secretary of State for Transport, the hon. Member for Copeland (Trudy Harrison)—had responsibility for that debate, and the interest in it was also significant. The issues surrounding our renewable energy strategies are extremely important.

This is certainly a “right now” issue, because it is about how to address the situation right now. The right hon. Member for Wokingham (John Redwood) spoke at some length about the issues across the world that would have an impact on us all, with millions affected by the rise in energy prices. As others have said, I fear that this autumn and winter we will feel it, and that our constituents will see something different and even more difficult than in the past. I look forward to discussing the progress we should be able to make on behalf of our constituents throughout the United Kingdom.

Mention has been made of nuclear power, of which I am a supporter. We do not have nuclear power in Northern Ireland, although I wish we had, because it would help us to reduce some of our energy costs, which are quite extreme. The Government, however, have a clear strategy on it, and one that I support, so I hope that the nuclear power part of their strategy is successful.

The Minister has regular discussions with the Department for the Economy Minister in the Northern Ireland Assembly, Gordon Lyons. In the past, the Minister has been interested in hydrogen issues, and in Northern Ireland we are keen to realise that potential and the initiatives that are moving forward, as we can across all parts of the United Kingdom.

The energy security Bill was listed in the 2022 Queen’s Speech, the first energy bill since 2013. We have witnessed two to three years of the covid pandemic and, furthermore, Putin’s devastating invasion of Ukraine, which has restricted the supply of gas to the European market, causing extortionate price increases for domestic and industrial users. Renewable energy can generate electricity at around one sixth of the cost of gas generation in the UK and, with the energy price cap expected to reach nearly £3,000 this winter—up from £1,200 in April—that is the proof we need to focus our priorities on reliable flows of affordable energy.

Over the past couple of years, there have been considerable efforts to increase our use of renewable energy, which I support, although I think we have to be realistic about what is achievable. The right hon. Member for Wokingham, who spoke before me, also indicated that. It is not that we are against renewable energy; it is just that we need to look at the bigger picture and at what it means. That is what he was saying.

In 2020, the UK had turnover of £41.2 billion in renewable energy, with Northern Ireland, the smallest of all the nations and a population of only 1.8 million, contributing almost £1 billion to that total turnover. Furthermore, in 2021, back home, 41.3% of our electricity consumption was generated by renewable sources, which is a brilliant accomplishment. In Northern Ireland, I believe that we are doing something good. The Minister is aware and supportive of that.

Multiple times, I have raised the importance of enabling community energy and of allowing our local communities the opportunity to empower their own energy strategies. We might not have had as much success with that as we would have liked, but we have all been inundated with emails, calls and letters from constituents who are genuinely concerned about whether they will be able to pay their bills this winter. Domestic energy security is at the forefront of our priorities.

The Prime Minister himself has stated:

“Energy companies tell me they can get an offshore wind turbine upright and generating in less than 24 hours but that it can take as much as 10 years to secure the licences and permissions required to do so.”

Although the Government’s aim to produce more hydrogen power, wind turbines and green affordable energy is welcome, I am afraid that 10 years for permissions is doing little to support the British economy. Perhaps the Minister will indicate how that period can be shortened.

We are collectively on the right path to producing a more secure energy strategy, but that provides little assurance to those facing large energy bills today. The Northern Ireland Department for the Economy has stated that non-domestic electricity consumers account for 51% of Northern Ireland’s total electricity consumption. Elevating our green, clean and affordable energy strategy gives our local businesses a monumental opportunity to save money and contribute to our 2050 net zero targets.

We had a tidal project in Strangford a few years ago. It was a pilot scheme and seemed to go quite well, but it never came to anything. I was really disappointed. I know that the Government here supported that, along with the Northern Ireland Assembly. I am not trying to throw the Minister a curve ball, but were there any discussions with the Northern Ireland Assembly, and Gordon Lyons and the Department of Enterprise, Trade and Employment, to see if that could be progressed? I believe it could do much good. Queen’s University biology station at Portaferry was very involved in that and is keen to progress the project.

The Energy Security Bill marks an unprecedent opportunity to ensure that businesses and homes can stay warm this winter. If we bring an end to our reliance on fossil fuels, as the Government have stated they will, we have the capacity to support global efforts to strengthen energy security. We must take advantage of our wind resources, tidal resources and energy sources in the United Kingdom at a price that our economy can afford. If our economy can afford it, customers can afford it and our constituents can pay their bills. This should be, without doubt, a national effort.

Action on Climate Change and Decarbonisation

Jim Shannon Excerpts

Tuesday 5th July 2022 Commons Chamber

[Chris Skidmore]

My hon. Friend is entirely right about one aspect of this. He mentioned efficiency and productivity. Obviously the UK faces a huge productivity challenge. We are speaking in Parliament and discussing the importance of politicians to making this energy transition, but it is already happening even without us. Private companies across the UK, and indeed the world, are saying that they would want to go to net zero even if there were not a climate crisis, because they recognise the opportunities for productivity, for disruption, for achieving better efficiencies, and for thinking differently. That is what makes net zero so important: the wholesale transformation, into the 21st century, which recognises that we cannot be dependent on unsustainable fossil fuels that will ultimately run out.

The Russian war against Ukraine has demonstrated that we cannot be held hostage by petrostates for the future. We must do something about that, and I think current messaging means that far more people support net zero. This is the year when climate change and net zero went mainstream. I think that all politicians, particularly certain politicians on my side of the Chamber, are at risk of not being on the public side of the argument. They need to understand that this has to happen, not just for the sake of the climate, but for the benefit of our economy.

[Jim Shannon (Strangford) (DUP)]

rose—

[Caroline Lucas]

rose—

[Chris Skidmore]

I will give way to the hon. Gentleman and then to the hon. Lady, but after that I must get on, because I do not want use up all my time with interventions.

[Jim Shannon]

I agree with what the hon. Gentleman is saying, but I live in an agricultural community. I live on a farm, and all my neighbours are farmers. Let me give an example of the current pressures. Last week I spoke to the farmer next door, who is not just a very big dairy farmer but also a contractor. He has, I think, eight or 10 tractors and trailers on the road, and he employs 12 people. He told me that the cost of diesel was up by at least 100%, and the price of fertiliser by 300%. When it comes to the financial equations, he is staring at stark reality. With respect, speaking as someone who agrees with the objectives put forward by the right hon. Gentleman and others in the Chamber, maybe we need a wee bit more time, because at the moment some farmers are under so much pressure to make ends meet. They are faced with costs that they have never seen before in all their life. Does the right hon. Gentleman agree?

[Chris Skidmore]

With respect, I do not. We do not have any more time. We have 28 years until 2050. It has been 30 years since we began these discussions and since the formation of the United Nations framework convention on climate change. We have seen the emission, since 1990, of 50% of all carbon dioxide emitted by the world in the entirety of human history. The argument that we need to go more slowly belies the fact that net zero is the slowest possible path on which we can travel while hopefully retaining a chance of hitting 1.5°. The consequences of not hitting 1.5°, or 2°, or even 4°, God forbid, will be more catastrophic for local businesses, and for farmers such as the hon. Gentleman’s friend.

The Po valley, normally one of the wettest areas of Italy, is now dry because seawater is flooding into the river. That is the reality of what is happening. Farmers throughout the world are, because of climate change, becoming less productive, and are becoming unable to produce the food that they once could. We need to be able to look them in the face. We, the industrialised nations that have this leadership, need to take action to ensure that all countries take this opportunity while we still have time—and that time is, sadly, ticking away.

Let me turn to the details of the estimates. My right hon. Friend the Member for Ludlow (Philip Dunne) referred to the estimate from the Department for Business, Energy and Industrial Strategy, which is on page 9 of the Library pack. It claims that

“£11.6 billion for the £400 energy bills reduction announced as part of the Cost-of-Living measures package”

contributes to the net zero target. That is simply not true. The £400 that is going out of the door to subsidise gas and other fossil fuel usage is exactly the same amount that a household would save every single year in a property that was in band C of the energy performance certificate rating. This is the economic reality of net zero. Once a capital cost investment is made, we are looking at savings, year in, year out, whether that is through the production of renewable wind or solar energy, or through energy efficiency. That is what we need to be talking about when we are discussing net zero measures, not the false creative accounting that we see in the estimates.

We should also look at the Treasury’s spending plans for net zero. My right hon. Friend the Member for Ludlow mentioned the period 2023-24, when the plan is for spending to rise to £8 billion a year, before it falls back to £7.7 billion in 2024-25, so actually we are going backwards. Of course we want to ensure that private sector uptake and investment continues; it cannot just be the state making these investments. We have to look at how we can draw in greater private sector investment, and I will come on to that in a moment. The reality is that if we have such balance sheets without having a longer-term sustainable programme for delivering net zero, we will always have these measures.

We need a coalescing target, just as net zero-ers have been able to coalesce around a single target. When I was Science and Research Minister, we had a target spend of 2.4% of both public and private gross domestic product on research and development by 2027, although we may fall short of that. Other countries such as China are going to hit 3.5%, and countries such as Israel are already about to hit 5% of GDP, both public and private, on R&D. Yesterday, the Prime Minister talked about spending 2.5% of GDP on defence by 2050. Where is the GDP target figure for net zero? We should set ourselves a far-reaching goal, and commit ourselves to that spending, both private and public, to demonstrate the investment that is needed for net zero.

There are far too many small pots of funding—we have talked about the green homes grant—and that creates a concertina effect, whereby people apply for a funding scheme, but we do not have the skills to deliver the product that is needed. As a result, these programmes ultimately do not achieve the targets they set out to achieve. I believe that moving away from small pots of funding to longer-term plans through which we can finance net zero should be the way forward. To deliver that, we should think about setting a net zero finance target for the UK every year, and on estimates day, we should talk about that, rather than using false figures in our accounting to claim that we have delivered an additional budgetary impact on net zero.

Post Office: Compensation for Horizon Scandal

Jim Shannon Excerpts

Thursday 30th June 2022 Commons Chamber

[Paul Scully]

We want to ensure that, by drawing a line under this historic miscarriage of justice and scandal, we can work on the future of the Post Office. To do that, we need to make sure we are engaging everybody—rural, coastal and city-wide post offices—on how we get the right balance between the Post Office’s economic value and its social value. I will continue to work with the APPG and with Members on both sides of the House to get this right.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for grasping the core of the issue and getting the job done. The Chamber is unanimous in thanking him, and I add my thanks, too. I welcome that those who initially missed out on the scheme now have the opportunity to apply. It is good to see fairness and equity set as the standard for those who have passed away. Will their sponsors or next of kin be eligible to apply?

[Paul Scully]

I thank the hon. Gentleman for his kind words. The solicitors will work with the estates of postmasters who were subject to overturned convictions or historical shortfalls, or indeed the original 555. It is important that we get the equity he seeks.

Low-carbon Off-gas Grid Heating

Jim Shannon Excerpts

Thursday 16th June 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

Thank you for calling me to speak, Sir Christopher. I thank everyone who has spoken, particularly the right hon. Member for Clwyd West (Mr Jones), who opened today’s debate and has given us all an opportunity to participate and add our comments.

Like the hon. Member for Buckingham (Greg Smith), I live in the countryside—I have been fortunate to do so all my life. The options for me and for my neighbours are very limited, when it comes to gas grid homes. Also, many people now use their homes for their businesses as well. We have a high number of small and medium-sized businesses and self-employed people. Many people work at home, perhaps working with other directors in the firm, so there is a real issue for the rural community to perhaps try to do things better.

I have been fortunate to take part in many debates on the greener environment, but it is great to be here to discuss how it will work in the workplace and at home. We must all take personal responsibility for it. It is certainly something I would love to know more about, so this debate is an opportunity to listen to other regional opinions. We will hear shortly the Scottish opinion, which I very much look forward to. Most of all, I look forward to the Minister’s response, because he is the gentleman with the answers. Hopefully we will all benefit from that.

I declare an interest as chair of the all-party parliamentary group for healthy homes and buildings. For us in the APPG, there is more focus than ever on having efficient heating in our homes and looking at how that can be done. At the same time as looking at efficiency, we need to address the issue of a low-carbon commitment. Those are the twin tracks of the debate, and I hope the Minister will respond on them.

We have set a legally binding target to achieve net zero greenhouse gas emissions by 2050, and the sixth carbon budget is another indication of our shared dedication to a green industrial revolution. While we are certainly on the current path in terms of sustainability, some issues have been brought to my attention by the organisation Calor, and I would like to briefly address some of them. Others have mentioned liquified gas. There are options that need to be considered, and I believe that that is one of them.

First, there have been concerns that rural homeowners and businesses will not be able to afford the high costs associated with heat-pump installation, and I believe that is the reality. There is an understanding that Ministers are “hoping” that costs will come down—I am not sure quite how realistic that is. Perhaps the Minister could say whether we are beyond hoping, and that we are looking at the practicalities. We must do that to be honest with people as we move forward.

The average cost of a heat pump in an off-gas grid home is £12,000. I think the hon. Member for Buckingham referred to £30,000—I suppose it depends on location, but the costs could range from £12,000 to £30,000. On the cost of living crisis, there is already an average fuel poverty gap for rural households of £1,213 compared with £856 for urban households. Again, that underlines an issue that every hon. Member has referred to: the clear poverty gap between rural and urban communities, where the cost is high in urban areas but not as high as it is in the countryside. There is a much earlier transition phase for rural homes, so Calor is asking for clarity on how the Government plan to support that early transition. The Minister has great knowledge, energy and interest in the subject, so we are looking for some answers, which I am sure are already at his fingertips. We look forward to what he has to say.

In relation to Northern Ireland, residential heating is increasingly important. As of 2019, the residential sector accounted for 14% of Northern Ireland’s total greenhouse gas emissions, primarily through fossil fuels. That evidence highlights the need for more off-grid gas homes. Great efforts have been made to compensate for the potential lack of progress. The Government’s Climate Change Committee has recommended that at least 25% of heat supply in Northern Ireland should come from low-carbon sources by 2030. Why not start in the most residential places—our homes? Some may feel that their home is where their business takes place most of the time.

I know that the Minister, who was in Westminster Hall on a different issue earlier this week, has regular contact with Gordon Lyons, the Minister at the Department for the Economy. I know they are in contact regularly—if not every week, certainly every time an issue comes up—so I would be keen to know whether discussions have been held on the matter with the Minister responsible in Northern Ireland, and what has come out of those discussions. I believe that we can always learn from each other. I certainly would like to hear the Minister’s impression of what contact or co-operation he has had with the Minister in Northern Ireland to see how we can take the issue forward.

It has been argued that heat pumps are the most feasible low-carbon system for domestic settings. These buildings are not seen as hard to treat, and energy can be improved at a lower long-term cost. There are countless alternatives to consider for low-carbon homes and businesses, the most popular being solar, heat networks or hybrids. Whether people use one method of heating or two, many want to have the option.

Further to what was said earlier, we rely on hope that the price of heating pumps will go down; the Minister might be able to give us some realistic figures for how that can be achieved, if it can be achieved at all. A heating pump is seemingly the most sustainable way to attain a low-carbon home. However, if that is not the case in the coming years, I believe that the Government must make efforts to incentivise people into becoming more eco-friendly when it comes to heating their home.

Belfast Telegraph, one of the provincial papers in Northern Ireland, reported:

“70% of people in Northern Ireland cut back on food payments, to pay energy bills and heat their homes.”

Big decisions have to be made, perhaps more so today than ever before, and I am sure that that percentage is similar across all of the United Kingdom of Great Britain and Northern Ireland; I do not think that we are any further behind or further ahead in Northern Ireland.

We must do more to support people through the transition to sustainable and green energy, as it is a process that we were all encouraged to be part of; indeed, we are happy to be part of it, although I acknowledge that that comment applies within the confines of the financial constrictions that everyone is facing.

To conclude, I am in full support of discussing and putting into action the process of achieving a low-carbon future. However, we must acknowledge that there are some issues that need to be addressed; I think the Minister is the person to give us answers in that regard. Cost is certainly a major factor in this discussion and I, for one, hope that the Minister and our Government can communicate with the devolved nations to make the transition as smooth as possible, so that we can all move forward together. As I always say, we are always better together. Let us share our points of view; I look forward to our doing things better.

Fire and Rehire Tactics

Jim Shannon Excerpts

Wednesday 15th June 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It was not just the issue of the workers being laid off. It was about those whom P&O picked up, who did not know about or understand the health and safety issues on the ferries. That was part of the problem as well, because P&O took away the people who knew what to do and replaced them with people who, with great respect, did not have the same ability.

[Mr Dhesi]

The hon. Gentleman makes an excellent point, and that is why it is important that we have skilled workers who need be regarded for their loyalty to the job, and for their competence.

Call me cynical, but it seems that certain policies can be expedited over others, such as the Home Office having no difficulty in swiftly implementing the inhumane Rwanda policy or the Government pushing to break international law, or selling off the popular and successful Channel 4.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It is a real pleasure to speak in this debate and to follow the hon. Member for Slough (Mr Dhesi), and indeed other Members who have spoken. I feel strongly about this issue, which I have spoken about before. There is nobody in Westminster Hall who does not have deep respect for the Minister, because he always tries to respond to our queries. This issue strikes at the core of employment, so I am keen to hear what he can say to reassure us on some of the things I will speak about.

This is a topical issue that causes many employees across the UK immense stress. There was widespread use of the fire and rehire tactic during the covid pandemic, as there was a need to alter working ways to adapt to the situation. Many employers have used the strategy to their success, but a majority see it as highly ineffective and unfair. In his significant contribution, the hon. Member for Slough mentioned P&O Ferries. When the P&O workers were fired, the agency staff that came in did not address health and safety issues. That is not to be disrespectful to the agency staff, but there are certain standards that must be met, and they were not met. The hon. Member for Bury South (Christian Wakeford) is absolutely right that it was despicable to come on to the ferry in Larne and lead people off, some of them in handcuffs. That really angered me. I could not believe that any company anywhere could resort to such tactics.

It got worse. Even after some staff were trained in health and safety issues, what happened in the Irish sea? The engines of the ferry from Larne to Stranraer went off, and it floated in the middle of one of the busiest sea lanes around Britain for more than two hours until the staff could get the engine restarted. That is another example of the potential safety impact of fire and rehire tactics.

I want to put on the record how strongly I feel for those who lost their jobs. The Minister knows all about this, because I brought it up in a question on the day that it happened, as the news broke that Thursday. He answered my question very helpfully and said that he was trying to address the issue, and I think he has shown a willingness to do so. It is important to note that this process is not unlawful, as the hon. Member for Glasgow East (David Linden) said, but it does involve dismissals. Many employers have been taken to court for unfair dismissal, and the technique has the potential to turn extremely nasty. If I was one of those workers, I would be pretty narked, to use an Ulster Scotsism.

A survey of workers by the TUC in November found that, since March 2020, 9% of workers had been told to reapply for their jobs on worse terms and conditions. Fire and rehire is becoming a common technique for both large and small businesses. The Government have said that it should not be used as a negotiation technique, but that it should not be made illegal. I follow others in asking the Minister whether he would be prepared to consider introducing legislation on fire and rehire, which has been used to the detriment of workers in this great United Kingdom of Great Britain and Northern Ireland. We need clarity and we need legislation that brings change.

Back home in Northern Ireland, this technique has been used by employers amidst the pandemic. Almost one in five 18 to 24-year olds—20% of that workforce—have said that their employer tried to rehire them on inferior terms during the pandemic. Black and ethnic minority workers are almost twice as likely as white workers to face fire and rehire policies. If such policies are detrimental to somebody because of their skin, their religion or whatever it may be, that is wrong, and I underline my request for the Government to introduce legislation to enforce that. As the unions have stated, one in four workers—25%—said that they had experienced a downgrading of employment terms and conditions as a result of fire and rehire.

We have seen the fire and rehire technique causing major problems, for instance in British Gas. Around 7,000 British Gas engineers staged 44 days of strike action after the company threatened to sack them if they did not sign up to detrimental changes to their terms and conditions. Why would they sign up to that? I do not understand how a company can just say to people, “Tell you what, we are just going to change all your terms and conditions, and you need to sign this or you are away.” Perhaps I am old-fashioned and see right and wrong in very simplistic terms, but I see that as wrong. We need to protect the workers. I am not putting the Minister on the spot—forgive me for being fairly direct about this—but we need legislation that does so.

[Christian Wakeford]

I thank the hon. Gentleman—indeed, my hon. Friend in this instance—for giving way. Part of the problem is that at the moment the Government insist on stronger regulation and guidance, but that is clearly not the solution. That did not and would not help the workers at P&O, whose chief executive admitted that he knew he was breaking the law and said he would do so again. Does the hon. Gentleman agree that guidance is not the solution; it has to be legislation?

[Jim Shannon]

I thank my colleague the hon. Gentleman for his intervention. I agree with that, sincerely in my heart. As I said earlier, the Government have said that fire and rehire should not be used as a negotiation technique, but that it should also not be make illegal. Well, that is a legislative change that the hon. Member for Bury South wants to see, as well as everyone who has spoken and everyone who will speak afterwards. I want to see that legislative change in place as soon possible.

It is essential that an environment is created whereby people enjoy their work. I am very privileged to do a job that I always wished to do, but never for one second did I think that I, a wee boy from Ballywalter, would actually be here, so I am fortunate. People need to enjoy their work if they are to work hard and make a contribution to how their firm progresses. If staff are unsettled and unhappy in their work, for whatever reason, there is an onus on the employer to work harder to make them happy.

Moreover, employers rely on workers to fulfil goals and create successes, hence the need to prioritise their needs and not be dictated to. If someone wants their firm to be successful and do well, they need a happy workforce, and vice versa. I have six girls who work with me in my two offices, and I can say in all honestly that they seem fairly happy, so maybe this employer is treating them the right way. I understand how important it is to motivate staff and keep them happy.

[David Linden]

Although there are things that the hon. Gentleman and I disagree on politically, I had the great pleasure of visiting him in his constituency and meeting the staff in his constituency office. Would he reflect—as I hope will the Minister—that many of the staff who work for us would be appalled and would not stand for it if we turned around to them and said, “Do you know what? We are going to fire you from your job, but then you can come back and work for less pay, less holiday time and more uncertain hours”? Does he think that parliamentary staff, including the staff of the Minister and the Secretary of State, would sign up for that?

[Jim Shannon]

The answer, as we all know, is that they would not. This House protects the workers here by setting bands of pay, giving them the right conditions for their holidays and if they are sick. It does it here, so I think it should do the same for other workers, which is what I would like to see.

Employers must follow a set minimum dismissal procedure and a collective redundancy process is involved. The depth of this issue has to be met with scrutiny and we must hold business owners to the highest level of account to ensure that our workers are protected.

There definitely needs to be greater communication within Government. I say that with great respect, because the Minister knows that I hold him in the highest respect because of the way he does his job. When we ask him questions, he comes back with the answers—he really tries when giving us answers. I say that for no other reason than that it is the truth; I mean it and I want to put it on the record. There also needs to be greater communication in the devolved Administrations, where legislation may be the responsibility of the Northern Ireland Assembly, the Scottish Parliament or the Welsh Assembly.

We need to take action and protect our workers. Hire and refire is an unfair and unjust practice, and the Minister and the Government must take responsibility for the one in four workers who have experienced a downgrade in employment terms, whether financially or with other conditions, such as for sick pay. In this day and age, that is disgraceful. The aim is to tackle exploitative employment practices, increase clarity in the law and make employees aware of their rights.

This debate makes employees aware of their rights, but we need legislative change to protect them. I gently but firmly ask, on behalf of my constituents and all of those across this great United Kingdom of Great Britain and Northern Ireland, that the Government provide clarity on their stance on fire and rehire tactics. I want to see legislative protection, because the ultimate goal is to protect the workers.

--- Later in debate ---

[Paul Scully]

I will come to the statutory code in a second and explain how that works. Even the hon. Member for Brent North (Barry Gardiner), who talked of banning fire and rehire and ran a campaign that involved many Members here, actually explained in the debate in the Chamber that his Bill would not ban fire and rehire. It would limit it but not ban it. Even he understood that, in certain circumstances, there needs to be that flexibility.

The statutory code includes practical steps that employers should follow if they are considering changes to terms and conditions and there is the prospect of dismissal and re-engagement. A court or employment tribunal will take the code into account when considering relevant cases, including those related to unfair dismissal. The tribunals will have the power to apply an uplift of up to 25% of an employee’s compensation if an employer unreasonably fails to comply with the code where it applies.

Most employers do their best to comply with the law, but the code will clarify best practice standards and deter those employers who try to cut corners, pushing the bar even higher for employers who seek to do the wrong thing. We will hold a public consultation soon, to seek views from across employers, individuals, unions and beyond.

[Jim Shannon]

I know that the Minister genuinely wishes to see betterment, as we all do. We gave some examples. Three or four Members referred to P&O Ferries. The Minister and the Government condemned the chief executive of P&O Ferries for his tactics, and they were right to do so. British Gas is another example of doing it totally the wrong way and disregarding the workers. I note that 20% of my constituents in Northern Ireland found that fire and rehire tactics were wrong. What will the Minister and the Government do to protect workers where, as the Minister and the Prime Minister have said, companies have done wrong?

[Paul Scully]

I will come to P&O Ferries now before I address the other points that Members have raised. The Government have been clear that the dismissal by P&O Ferries of 800 loyal seafarers without any notification or consultation was absolutely unacceptable. I was sat behind the chief executive—literally, not figuratively—during the Select Committee hearing. Like everyone else, I was appalled when I heard him say that he would do the same thing again. That was absolutely horrific to hear.

Future Hydrogen Economy

Jim Shannon Excerpts

Tuesday 14th June 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

Thank you for calling me, Sir Edward. It is a pleasure to serve under your chairmanship for the second time today; thank you very much for calling me.

[Sir Edward Leigh (in the Chair)]

It is the second time, Jim, but I always love your speeches.

[Jim Shannon]

It is always a pleasure to speak in Westminster Hall, no matter what. I congratulate the hon. Member for Redcar (Jacob Young) on setting the scene so very well and giving us all the opportunity to participate by doing that. The thrust of my contribution will be to insist—in a gentle, nice way—that Northern Ireland should be very much a part of the planned future hydrogen strategy. I am ever mindful of the Government’s legally binding targets under the Climate Change Act 2008, and the fact that the Climate Change Committee’s 2018 report, “Hydrogen in a low-carbon economy”, found hydrogen to be a credible option. The Government have committed themselves very much to the net zero target and to ensuring that hydrogen is an energy opportunity that we can all take advantage of.

A hydrogen economy has the potential to create or safeguard a massive 167,000 jobs—we cannot ignore that, and we look forward to some of those jobs coming to Northern Ireland—to provide £10 billion in gross value added to the UK economy, as mentioned by the hon. Member for Broxtowe (Darren Henry), and to reduce CO₂ emissions in the region by 29%. These are helpful targets, and they show that the Government are totally committed to this project. I look forward to the Minister’s response; he always speaks with knowledge in responding to our questions.

Recent work to drive the hydrogen agenda has seen progress move beyond the midlands, with plans to link key transport hubs: Immingham, the UK’s largest port by tonnage and the biggest deep-water port on the Humber; East Midlands airport, the UK’s busiest pure cargo airport; and the Tees valley, where plans are already in motion to develop a multi-modal hydrogen transport hub. Northern Ireland has also launched an ambitious new energy strategy, which includes plans for hydrogen as a key energy source for the future. I am keen to reiterate that and to push for that to happen.

The hydrogen strategy set out a number of things that should happen to expand domestic hydrogen production. They include setting aside £240 million for the net zero hydrogen fund, the significant development and scale-up of hydrogen network and storage infra-structure, with a £68 million commitment, and scaling up the use of low-carbon hydrogen, with heating buildings and transport trials and pilot projects planned—the hon. Member for Redcar (Jacob Young) referred to that. The strategy also talks about a market framework for hydrogen and a “supportive regulatory framework”. Northern Ireland wants to be part of that hydrogen plan, Minister. I know from the answers that he has given to me in the past, and also to my hon. Friend the Member for North Antrim (Ian Paisley), that he is committed to that, but it would be nice to have it in Hansard.

The hon. Member for Redcar referred to the village-scale trial that his constituency hopes to be part of. I do not care where it is, as long as it happens, although I would love to know the time scale for whenever the Minister thinks it would be completed and, then, how the plan would be developed for the rest of the United Kingdom.

My hon. Friend the Member for North Antrim has previously referred in questions to building hydrogen products that the public will ultimately use, such as buses, trains and heavy goods vehicles. The Minister replied to that in a very positive fashion—I think he referred to Glasgow City Council’s commitment—but I would like to see what is actually meant by

“further engagement with the Northern Ireland Executive”.—[Official Report, 22 February 2022; Vol. 709, c. 160.]

My hon. Friend also previously referred in a question to the “golden thread”, which I thought was quite a good saying—the golden thread that keeps together all this great United Kingdom of Great Britain and Northern Ireland, where all of us, in all the regions, can benefit. The Minister without Portfolio, the right hon. Member for Selby and Ainsty (Nigel Adams), referred to

“£100 million of new funding for the net zero innovation portfolio”.—[Official Report, 13 January 2022; Vol. 706, c. 630.]

I very much want Northern Ireland to be a part of that.

To conclude, “The Path to Net Zero Energy”, published in December, has set long-term sustainability targets for the region’s energy sector, including plans to fully decarbonise by 2050. Cost is also a key focus in the plan, in order to increase the affordability of low-carbon forms of energy. Other targets include the delivery of energy savings of 25% from buildings and industry by 2030, as well as doubling the size of Northern Ireland’s low-carbon and renewable energy economy.

[Sir Edward Leigh (in the Chair)]

Order. Can you wind up now, Jim?

[Jim Shannon]

Again, I look to the Minister to make a commitment to Northern Ireland.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 7th June 2022 Commons Chamber

[Lee Rowley]

I know that my hon. Friend does a huge amount of work in this area as chair of the all-party parliamentary group on insurance and financial services, and he has a background in the sector. Although he is tempting me to make policy that is dealt with by another Department, I know that his point will have been heard by my colleagues in the Treasury.

[Jim Shannon (Strangford) (DUP)]

Under the Northern Ireland protocol, Northern Ireland businesses pay mainland suppliers a fee to ship to them. Will the Minister consider refunding businesses this fee, which they must accept because the list of suppliers who will take on the hassle of the web of red-tape confusion is ever-dwindling, leaving very little choice when it comes to supplying goods to Northern Ireland?

[Lee Rowley]

The hon. Member is hugely committed to finding ways through the challenges around Northern Ireland, and I congratulate him on the work that he does. I will certainly pass back his comments, and I am happy to discuss them with him separately, if that is helpful.

Potential for a Hydrogen Village

Jim Shannon Excerpts

Tuesday 24th May 2022 Westminster Hall

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I beg to move,

That this House has considered the potential for a hydrogen village.

It is a pleasure to see you in the Chair, Ms Bardell. Many Members in the north-west and north Wales have mentioned the genuine interest in, and support for, the HyNet project. Speaking as the Member for an area where industry consumes about 5% of the whole country’s total energy consumption, I am only too conscious of the need for us to change if we are to meet our climate commitments. Faced with that fact, the companies that are responsible for a lot of those emissions have been working together to address the future and are working on a whole series of projects that will contribute to our reaching net zero while also enhancing the local economy.

We were very pleased to have the HyNet project approved for the first industrial cluster last year. With our unbeatable combination of industry and geology, we believe that we can transition to a hydrogen-based economy with carbon capture more quickly than just about anyone else. Our current infrastructure can be easily converted to operate with hydrogen, and HyNet believes that it can capture up to 800,000 tonnes of CO₂ every year.

It is exciting that my constituents potentially have a big part to play in this endeavour, and it is hoped that the area of Whitby in Ellesmere Port will be confirmed next year as the location for a hydrogen village programme. The natural gas running through local pipes in the area would be changed to hydrogen from 2025, and Whitby has been identified as an ideal place to host the hydrogen village programme, largely due to its closeness to HyNet:

“The Hydrogen Village is a really exciting project where local homes and businesses would be able to reduce their emissions—while continuing to build the North West’s reputation as a leader in the hydrogen economy”.

It also means that we can back UK manufacturing jobs, but as always with these things, the maximum benefit will be found if we can take the maximum number of people with us.

That means not only showing people that it is a good thing for everyone if they are at the spearhead of a new way of heating our homes, and that they can play a big role in meeting our net zero targets. It also means ensuring that people feel that things are being done with their consent and agreement, rather than them being done to them. Of course, a big part of that will be communication, and I know that Cadent has already begun working on ways to advise residents about the project and will be opening a new shop in the town in July, so that residents can find out more.

Obviously, residents will have legitimate questions, and I imagine that they will want to know about the potential costs, their safety and the level of disruption they will face. From the information I have had to date, I think that all those concerns can be dealt with. With the rapidly increasing energy bills that we all face, I would hope that the cost issue will be a positive for my constituents, with at least a guarantee that they will not pay any more for their energy. I hope that there is scope for us to go further than that and be able to offer them a discount. It is early days, but the only inquiries that I have had so far from constituents are about why people have not been included in the trial, which demonstrates the positive spirit of the people of Ellesmere Port, their willingness to embrace the future, and their eagerness to play their part in tackling climate change.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing this issue forward. Does he agree that we have a clear obligation to fully explore the use of hydrogen, which is more beneficial than carbon emissions, and that the proposed trial village in Whitby reflects the needs of an average community? Does he agree that such trials are imperative and essential for the drive for clean energy, and that they should be shared with all regions of the United Kingdom of Great Britain and Northern Ireland, so that we can all learn from them?

[Justin Madders]

I agree with the hon. Gentleman. Indeed, when we get to the carbon capture element of the project, we will be joined together, because the Irish sea will play a major part in the storage of carbon emissions.

Let me return to the trial itself. There will always be some people who, for perfectly legitimate reasons, will not want to get involved, and one can imagine that, for some, the fear of something new will be too much. It is fair to say that no amount of persuasion will encourage them to participate, and it is important that if people cannot be persuaded to take part, they are not forced to do so. The old saying is, “One volunteer is worth 10 pressed men,” and it applies to hydrogen as much as to anything else. I think the number of those who do not want to take part will be small, but if the past couple of years have told us anything, it is that an element of compulsion will not make those with misgivings change their minds; indeed, it often has the opposite effect.

I think take-up will be significant, based on the early response, and if the trial proves a success, there will be a national change because approximately 23 million homes and businesses in the UK rely on natural gas for cooking and heating. To put that in context, that represents a quarter of the UK’s carbon dioxide emissions, so we need to act on the whole of household infrastructure if we are to get to net zero. What better way to do that than an initiative that maximises support for UK jobs and enhances the principle of “make, buy and sell more in the UK”?

As much as that principle applies to anything, it applies to the 1.6 million boilers made in the UK each year, supporting jobs in places such as the north-west and the west midlands. Furthermore, a huge supply chain serves those manufacturers, and I am sure that building on that talent base is central to any levelling-up strategy the Government want to introduce. We also have tens of thousands of skilled gas engineers, which is why I welcome the support expressed by trade unions such as Unite and GMB whose members work in the sector and which support the move to hydrogen. I declare for the record my membership of both those trade unions.

UK boiler manufacturers truly are world leaders in the research and development of hydrogen-ready boilers. Critically, all have committed to sell hydrogen-ready boilers at the equivalent cost of a current gas-burning boiler. That commitment is key for households that are understandably concerned about the cost of converting to low carbon. We know, for example, that electric vehicles are substantially more expensive than traditional combustion-engine vehicles. That is one of the major barriers to consumer-led change, but we will not have to contend with it in this field.

I am aware that boiler manufacturers have written to the Prime Minister to confirm their commitment on that cost issue. Will the Minister say what consideration has been given to that commitment from boiler manufacturers to make in the UK and sell at the same cost as current natural gas boilers, which I hope he welcomes? What consideration has been given to comments by the trade unions on their view that it is not possible to achieve the large-scale workforce shift from boilers to heat pumps? Where is the hydrogen-ready boiler consultation? There was a commitment made to publish it last year.

Some people out there will say that we should not be doing this at all because it involves the wrong type of hydrogen, but the project has the potential to cut CO₂ emissions by at least 80%, which is a pretty good start. It will not deliver us to the promised land of net zero, but it is an important—I would say probably inevitable—stepping-stone for getting us there.

The Climate Change Committee, which is the Government’s independent adviser on climate change, has recommended that significant volumes of blue hydrogen be produced by 2030 to help the UK to meet its climate targets, help industry to cut emissions quickly and ensure that there is a market for green hydrogen once it becomes cost competitive. The committee’s analysis found that blue hydrogen could save up to 85% of emissions compared with unabated use of fossil gas.

The committee has also concluded that blue hydrogen is the right first step to take because the technology available now will help emissions-intensive businesses that cannot electrify their processes to get on the road to reducing their emissions this decade. Critically, that will help to preserve jobs in the UK’s industrial heartlands and in my constituency as we target net zero further down the road. We want to get our industry powered and our homes heated by green hydrogen, but if we take a hard-line approach and insist on going for the zenith of green hydrogen immediately—all or nothing—I fear that it will probably not happen at all, which means we will have missed the opportunity to reduce our emissions now.

In some industries, those technologies are just not ready to go at a competitive price, and if we do not take those first steps now, over the medium term we will see those industries and jobs move abroad, and they might continue to emit the same levels of CO₂ that they emit now. We would end up in a lose-lose situation. We would lose our chance to reduce emissions and lose the chance to preserve and increase the number of highly skilled, well-paid jobs that go with those industries. We know that there are voices out there that are only too ready to claim that protecting the environment costs jobs. We cannot give those voices any opportunity to gain strength. Our focus must be on delivering a just transition. Along with the need to bring people with us on the village itself, there is a wider need to bring the country with us and win the argument that, if we get the balance right, it will be a win-win rather than lose-lose situation.

Before I finish, I have a few further questions for the Minister about hydrogen more generally. Are the Government still on track to make a decision on heat by 2026? What will that decision look like? Will it unlock a hydrogen for heat industry in the UK, and unlock genuine choice for UK households in how they heat their homes in future? Can the Government match the ambition that has been expressed here about moving towards a hydrogen-based economy? Germany is investing 10 times the amount we are in the quest to deliver the same amount of hydrogen by 2030. I pose the question: is more support needed?

There could be more ambition in the number of hydrogen villages the Government can support. I do not see any benefit in the Government limiting the ambition to one hydrogen village trial. We will no doubt shortly hear about another one. Why not advance two schemes and double the learning? That would be in two different parts of the country, with two separate pieces of infrastructure. It seems the obvious way to go. The endless bidding wars and competitions that the Government specialise in do not always mean that the best projects succeed. They also mean that a lot of effort is expended on presentation, when we should all focus on delivery.

The potential of hydrogen is big enough to fit in two projects. If we do have a competitive process, I would be delighted if the Minister agreed to visit Whitby, possibly in July, to open the new customer centre, meet with Cadent and hear more about the hydrogen village project, as well as the many other innovative projects the company is delivering, not just to progress hydrogen for heat but in the wider hydrogen ecosystem.

I will conclude by saying why all this matters. I am sure we all want our planet to have a future, and I genuinely believe that we have the talent and innovation as a species to stop climate change overwhelming us. I am not so sure that we have the political will. It is through projects such as this that we will address that head-on and meet the challenge.

I want my constituency, because of where it is and because of its geology, history and industry, to be at the heart of this revolution, so that the people of Ellesmere Port can in future enjoy secure, well-paid jobs, on which they can raise a family, in a manufacturing industry that has enjoyed a renaissance, thanks to the advances we hope to make in carbon capture and hydrogen. I hope we end up living in a town where emissions have gone down but wealth has gone up, and that Ellesmere Port becomes a byword for innovation.

UK Diagnostics Industry and Covid-19 Recovery

Jim Shannon Excerpts

Tuesday 10th May 2022 Commons Chamber

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

I want to start by illustrating how important diagnostics and testing are, and nothing does that more clearly than the decision to discharge elderly people to care homes without testing. The Government’s answer that asymptomatic transmission was not understood properly does not excuse the fact that fundamental and standard infection control measures were not in place.

The Prime Minister said earlier that he wanted to create “high-wage, high-skilled jobs” that will drive economic growth across the United Kingdom. I will measure that soundbite against the Government’s performance and track record on the UK diagnostics sector. The domestic diagnostics sector should be at the vanguard of the world’s intellectual development, but the evidence does not support the Prime Minister’s claim that the Government support it. I will look at past performance in the early days of the pandemic and where we are presently as well as look to the future with the Government’s strategic plan and the opportunities that it could miss, to our shared peril.

My interest in the area is underscored by an NHS career spanning a quarter of a century in which infection control and management was a staple part of my responsibility. I understand the important elements of genomic and epidemiological surveillance. I first raised that with the chief medical officer in July 2020 and repeatedly explored testing with the right hon. Member for West Suffolk (Matt Hancock) when he was Secretary of State for Health and Social Care, focusing in particular on his exaggerated claims that lateral flow device tests were 99% accurate. My concerns have always been sincere. I am bringing my genuine clinical concerns to the Government’s attention yet again. This is not a political point, and I am not making a constitutional point, because many of the issues that I will talk about are as true north of the border as they are south of the border, and they are very serious.

There is an additional element to my interest in the case. My constituent Craig Inglis contacted me to express his concern about his investments in one of the diagnostics companies contracted by the Government to provide lateral flow devices, and he and many others watching the debate feel utterly betrayed by them because of events that I will set out in due course. The same is true of the diagnostics sector.

One insider told me:

“There is a lot of acrimony remaining, with many UK companies saying they would not respond to the UK Government if a similar crisis arose.”

Now, I do not believe that they would not. I think that they would, but the good will and trust has been severely damaged, if not completely broken.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on bringing this issue forward. Does he not agree that the methods by which we were able to roll out the vaccine strategy, making use of public facilities and spaces, is an indication of the capacity that already exists in the NHS? Does he not agree that the focus and time given to that successful roll-out must be used to assist the NHS to address the backlog and, even better, to address its efficient operation, which we believe, and I think the hon. Gentleman also believes, can happen?

[Neale Hanvey]

I thank the hon. Gentleman for that intervention. He makes some really important points. The first point I make—and I have previously paid tribute to the chair of the Vaccine Taskforce and continue to do so—is that there were excellent strategies for the control of infection in terms of barriers, mask wearing and the like. However, a fundamental part of infection control is that we cannot pick and choose the bits we do. We have to do them all. And that has been sorely lacking when it comes to testing. It has not been robust. It has been lacklustre to say the least and it has been oversold. The hon. Gentleman’s point about the important role of diagnostics in moving the NHS forward and picking up the backlog is really important. I will touch on that very briefly at the end. This is such a huge subject that I struggle to get everything in, but the points he makes are really important.

In terms of where we started, Operation Moonshot was supposed to build domestic capacity, and there was, I think, genuine engagement with the industry. Certainly, from the conversations I had with industry and the UK Rapid Test Consortium, it was something they felt very keen to progress. However, it failed. I understand the challenge the Government faced and I understand the reasons why they went to the international market to secure lateral flow devices or any kind of tests. This is not about bad China or anything of that nature; fundamentally, it is about UK Government decision making and—I hate to say this, but it is true—profiteering in the sale of those devices.

The reliability and validity of the results of the lateral flow tests have been undermined by various different assertions. The Government’s original assertion was that

“lateral flow tests are accurate and reliable and have extremely low false positive rates”

and a specificity of at least 99.9%. However, leaked emails by the then Secretary of State’s advisor Ben Dyson cast doubt on that, estimating that as few as 2% to 10% of positive results may be accurate in places with low covid rates. The Government’s own evaluation, conducted by the University of Liverpool, found that lateral flow devices failed to detect two-fifths of positive PCR cases. They also missed a third of high viral load and highly infectious cases. Throughout that time, however, the Government were telling everyone that they were reliable, trustworthy tests that we could depend on. I recall one case where the daughter of a constituent had had multiple negative lateral flow tests and it was not until they insisted on getting a PCR test that they found out she was infected and that she had infected everyone around her. That was a mini-cluster that caused great concern.

Throughout this time, I worked with academics who have been absolutely fantastic. They wrote in the British Medical Journal and other respected journals, setting out those concerns. They are experts, but the Government at the time—I focus in particular on the then Secretary of State for Health and Social Care—did not listen to those concerns and did not modify the message.

Lord Bethell said in his infamous tweet of 15 March 2021 that Omega Diagnostics and Mologic were in line for an order of 2 million lateral flow devices per week by the end of May, promising jobs and security. Those assertions did not come to fruition. Like several companies, Omega has suffered big losses and has had to make significant changes to its operations. It had to sell its Alloa site and is looking to divest its remaining infectious disease portfolio. As part of the rapid test consortium, the UK Government committed to supporting the manufacture of lateral flow devices and other diagnostic equipment.

On 11 February 2021, Omega announced that it had agreed a contract with the UK Government. Colin King, the then chief executive officer, said:

“We are delighted to formalise our relationship with the UK Government and to utilise our lateral flow test production capacity to support the COVID-19 mass testing programme being rolled out across this country…The new financial year will see this growth opportunity realised, and will also see the full impact of COVID-19 antigen testing, and so we are likely to deliver substantial revenue growth…These are very exciting times for the business and I am delighted that we can play a part in supporting the UK Government’s national effort to control the spread of the Coronavirus.”

The Herald newspaper in Scotland had the headline, “Jobs boost as Scots firm Omega scoops up to £375 million government contract to produce ‘instant’ Covid tests”, but none of it happened. Despite those promises, significant barriers were put in place and have continued to be erected to the domestic diagnostics sector. In the case of Omega, additional manufacturing capacity was created to meet the demands of the UK Government, but they failed to deliver on the contract and promises. Instead of substantial revenue growth, the shares in Omega Diagnostics lost more than a quarter of their value when the Government pulled the rug from underneath them.

Some investors have lost substantial sums of money on the back of the UK Government’s promises and announcements on Twitter by Lord Bethell. They feel utterly betrayed, and understandably so. We have a situation where the UK Government failed to meet a commitment made in full public view and are now seeking to recover the costs of the readiness preparation for that expansion from companies such as Omega, despite them doing everything that they were asked to by the Government. The UK Government distorted the market with those decisions, so will the Minister commit to reviewing the impact of them on investors and industry?

The other side of this issue is that the domestic diagnostics sector felt completely let down, but the Department of Health and Social Care found £3.7 billion to fast-track Innova-branded lateral flow devices with an eye-watering profit margin to middle men, taking a tiny UK firm run by a property agent and a shoe retailer from being £3,500 in debt to a £20 million profit in a year. That was all facilitated by an exceptional usage authorisation from the Medicines and Healthcare products Regulatory Agency—more on that in a moment.

In contrast, UK companies have had to navigate their way through and overcome additional regulatory hurdles. The situation is best summed up by the industry body, the Association of British HealthTech Industries, which called on the UK Health Security Agency

“to remove the confusion and uncertainty surrounding the implementation of the Coronavirus Test Device Approvals process”.

The CTDA process is a hurdle that only domestic producers have to navigate. All the imported products that I have set out the problems and flaws with, from the Government’s study, have a free pass. They are not subject to CTDA; only the domestic market has to deal with that challenge. Innova and Orient Gene tests are exempted from CTDA, putting the domestic diagnostics sector at a significant disadvantage. Private feedback from the industry is that the procurement process suffers from a lack of progress, transparency and poor communication. Will the Minister say why the UK Government are purposefully disadvantaging the domestic diagnostics sector? Surely there should be a level playing field.

In the last Session, I asked the Government a simple and straightforward written parliamentary question:

“what the (a) number and (b) proportion of (i) PPE, (ii) lateral flow tests, (iii) PCR tests and (iv) other covid-19 testing equipment are that have been manufactured by UK based companies.”

The response was absolutely staggering:

“We are unable to provide the information requested for lateral flow device and polymerase chain reaction tests and other COVID-19 testing equipment as this information is commercially sensitive.”

--- Later in debate ---

[George Freeman]

The hon. Gentleman makes an important point. Sadly, I was not a Minister at the time—I would love to have been—but I do not think it is a state secret to say that there were clearly mistakes made in that national emergency. That is why there is a proper and full inquiry. He has made some important points that need to be picked up, but I do not think he would expect me to give a running commentary here on the decisions that were taken. If we cast our minds back, there was a two or three-week period when we were worried that the lack of ventilators would be the great crisis. Innovative groups all around the country were stood up as part of the national challenge to try to design ventilators, with engineers working out how to do things. All that happened in very fast order, and all sorts of issues were raised and procurements flagged that we did not need in the end. I do not think anyone would say that it was a seamless process; it was a national emergency, and there were clearly many lessons to learn.

To deal with the hon. Gentleman’s bigger points—I will perhaps pick up the specifics in detail in a written reply—as a former Life Sciences Minister, I observe that the pandemic revealed that things that we had done seven or eight years earlier in the coalition Government had paid not just the four times return on investment that is traditional in this sector, but many times over that. The truth is that the reasons we were able to sequence the virus so fast were the launching of the genomics programme, which I was proud to have led back under the coalition, the accelerated access review we put in place, the parallel approvals process with the Medicines and Healthcare products Regulatory Agency, the early access to medicines scheme, and the setting up of Vaccine Manufacturing and Innovation Centre. John Bell and I suggested in 2016 that it would be a sensible piece of foresight to invest in vaccine manufacturing, which was clearly going to change. Of course, we had no idea that a pandemic would mean that that facility would suddenly become incredibly important.

Also important was the establishment of NHS Digital. One of the lessons of the pandemic is the importance of really good data and of both national and local data sets. As a Norfolk MP, I remember being frustrated that we did not have the granularity of data or the ability to do public health by cities or districts; it was instead by big, clumsy Government regions. There are all sorts of lessons there about how an emergency requires not only national implementation and measures but the subtlety of local control, empowering local experts on the ground who are best equipped to work out how to contain and control.

I want to focus on where I can add perhaps most value in this debate and on the hon. Gentleman’s points about the importance of the diagnostics industry. One of the great lessons of the pandemic, which has absolutely been taken to the heart of Government, is that we must recognise that globalisation will drive more and more infectious disease challenges. God forbid we have another pandemic of this type, but over the past 10 or 15 years we have had zika, Ebola and covid. It is likely that we will see more such things. Hopefully they will be local or regional, but if we are not ready to contain them, we could see outbreaks of disease.

Globalisation will drive the release of new pathogens, which is why pathogen detection is one of the technologies that I am putting at the heart of our three-year plan going forward. Indeed, I am working with the chief scientific adviser Sir Patrick Vallance on how we can ensure that we harness our leadership in genomics for broader pathogen detection across animal, plant and human health and make sure that we build that network off the back of the pandemic.

The hon. Gentleman made a more specific point that in the NHS, the care system and the life sciences industry—I say this as someone who spent 15 years in the sector before coming to Parliament—diagnostics was for years the slightly poor relation. Drug discovery and the pharmaceutical sector tended to raise the big money and have the higher profile, but the pandemic revealed that diagnostics is absolutely key to getting on top of the disease. The life sciences industry is moving to recognise that if we want to deliver real value and reduce the cost of disease, which is the real key to the economy and the health system, we need to build in diagnosis much earlier. That means both the easy diagnosis—if I may call it that—of easily detectable and treatable diseases and the deeper science of longer-term diagnosis of tomorrow’s conditions.

That is why, in the update to our life sciences industrial strategy that we set out last year, we have insisted on closing the gap over the next 10 years between the traditional dichotomy in Government—the Department for Business, Energy and Industrial Strategy sponsors the research and the Department of Health and Social Care does the procurement, licensing and approvals—to try to build a much more integrated model through which we focus on diseases in places and the patient pathway and bring diagnosis, treatment and prevention together around the eight disease missions. One thing I hope and intend that that will do is put the diagnostics industry at the heart of those missions; traditionally, it has been an industry that has tended to be about the black box that sits on the hospital ward, but these days it is becoming integral to the life sciences industry and to working out how to treat, understand and detect disease. Those missions are completely key.

Let me reassure the hon. Gentleman and other colleagues here this evening by saying that we are also investing heavily, in this next phase, in the mRNA technologies that are key to the next phase of detection and diagnosis, and in new treatments. VMIC, which we set up as an academic unit to work on future vaccine manufacturing technologies, suddenly became an urgent facility for onshoring during the pandemic. I am pleased that we have transferred VMIC into the hands of Catalent, a world leader in mRNA diagnostics, therapeutics and treatments. So we have established a much more robust national supply chain in dealing with both flu and other respiratory diseases, and other pathogens. Many of the lessons have been learned, but obviously there is more to do.

We have set out in our latest life sciences vision an £8 billion commitment to research, including work with the Medical Research Council, deep research on my side of the portfolio at the Department for Business, Energy and Industrial Strategy and putting some £4.5 billion into the Department of Health and Social Care and the National Institute for Health and Care Research. The NIHR, where we are talking about £1 billion a year, is the sort of engine of research under the NHS. Crucially, we have said that, at its heart, diagnostics has to be central to that landscape. I refer not only to the detection of influenza and other respiratory pathogens, but to molecular diagnostics, biomarkers and genomic insights into disease. That is because the NHS is a huge procurer daily of blood tests for individual conditions, as the hon. Gentleman knows well. If we properly integrate that, we will be building up a database of deep expertise in biomarkers and understanding the early signals of disease, and we can harness that to make the NHS much more of a diagnostics research engine.

The dream and aim in respect of those eight disease missions is that we will be able to mobilise patients much more quickly, through digital technologies, into trials. Patients, through charities, will be able to enrol in clinical research. Using that spine of the biobank and molecular diagnostics, we can start to give industry much quicker access to the patients who are on the frontline of the conditions we need to treat.

That should drive a virtuous circle, in which we detect earlier, treat earlier and attract investment, and ultimately, as the hon. Gentleman says, we move from a paradigm where the NHS, under cost pressures, is a low-price and often late procurer to a scenario in which it does not have to be a high-price payer because it is giving industry an even more valuable thing: access to patients, charities and disease and patient consent for research. The NHS’s role in this sector is, thus, as a research engine. I have made it clear to industry that we will never, in a publicly funded healthcare system, be the highest-price payer—it would not expect us to be—but that the promise I can make it is that we will move heaven and earth to be an earlier adopter, an earlier tester and the best place in the world for it to come to test and diagnose its new treatments, and get the data on which patients they work in. Industry will then be able to use that to go around the world and sell to other countries. That is the vision of the NHS as a 21st-century research engine.

[Jim Shannon]

The Minister referred to Queen’s University Belfast, and I know he has a particular interest in being there and being involved with it. Will he indicate whether Queen’s University Belfast, or any other university in Northern Ireland, has been involved in this type of research and partnership? It is so important to take advantage of the massive amount of knowledge in the sector.

[George Freeman]

The hon. Gentleman makes an important point and invites me to signal again my support for what is going on in Northern Ireland. If we look at the cancer outcomes in Northern Ireland, the Queen’s University team that has been working on biomarkers and earlier detection has ended up driving not just investment, but much quicker and better outcomes for the people of Northern Ireland. The real power of the sector is that it delivers better healthcare for everybody within the values of the NHS, but also attracts investment and drives industry. I would go so far as to say that in the new landscape, companies such as Randox will develop affordable consumer diagnostic kits that can help drive earlier detection, building on to a digital interface. We can then support patients to get into trials earlier and drive research medicine. Belfast is on the frontline of that.