Oral Answers to Questions

John Lamont Excerpts

Wednesday 17th May 2023 Commons Chamber

[Kenny MacAskill (East Lothian) (Alba)]

1. What recent discussions he has had with (a) Cabinet colleagues and (b) the Scottish Government on maximising employment opportunities in the offshore wind sector.

[The Parliamentary Under-Secretary of State for Scotland (John Lamont)]

The future for Scotland’s offshore wind sector is bright. As part of our “Powering up Britain” package, the floating offshore wind manufacturing investment scheme is currently open to applications. Through the scheme, we will distribute funding to support critical port infrastructure that will enable the delivery of floating offshore wind and provide quality employment opportunities for years to come.

[Kenny MacAskill]

It is not just in employment, but in community benefit that we are losing out. Ireland has ensured that €24 million per annum will go to coastal communities hosting offshore renewable projects. In the UK, there is a legislative gap, where onshore wind is providing benefits for communities but there is no provision for offshore wind and the communities onshore. In East Lothian, we have Cockenzie and Torness where the energy will come ashore, and on the horizon there will be turbines. Where is our share, if Ireland can see €24 million per annum going to its communities for far less hosting?

[John Lamont]

The growth of our green industries will lead to new jobs and many benefits for our communities, whether they be in East Lothian or in other parts of Scotland. To support this transformation and help people take advantage of the opportunities that the transition will bring, we will be producing a net zero and nature workforce action plan in 2024. We are starting with a set of initial proposals and actions from the net zero power and networks pilot working group, followed by a suite of comprehensive actions from those sectors by summer 2023, to ensure that communities such as those in East Lothian and across Scotland can take full advantage of the benefits of these projects.

[Richard Graham (Gloucester) (Con)]

rose—

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[Richard Graham]

Thank you, Mr Speaker. Of course, equally important to offshore wind and the expansion of renewable energy in Scotland is marine energy, particularly from tidal stream. The Minister will know the importance of the European Marine Energy Centre in Orkney. Does he agree that the whole process, and the special pots arranged for marine energy under contracts for difference, could be improved if Marine Scotland increased the speed at which it approves sites for future tidal stream development?

[John Lamont]

My hon. Friend is very knowledgeable on such matters affecting Scotland. Scotland has indeed benefited significantly from the contracts for difference scheme, which is the Government’s flagship support scheme for large-scale renewable projects—some 27% of all CfD projects and around 23% of total CfD capacity. In relation to tidal, the contracts for difference round 4 awarded over 40 MW of new tidal stream power, and I think there are great opportunities going forward for Scotland to benefit further.

[Mr Speaker]

I call the shadow Secretary of State.

[Ian Murray (Edinburgh South) (Lab)]

With the energy crisis, the importance of developing Scotland’s renewable energy sector has never been higher. The UK Government have no energy strategy—indeed, it is a sticking-plaster approach to the energy crisis, all paid for by the taxpayer, of course. In the 16 years of the Scottish Government, they have regularly launched glossy policy documents on renewables but have never delivered, especially on jobs. A scathing report from the Scottish Trades Union Congress said of the Scottish Government that “with energy bills soaring, climate targets missed and job promises broken, more targets without the detail of how they will be realised is unacceptable.” Does the Minister agree that only Labour has the solution to this crisis, creating high-quality, well-paid renewable jobs so that bills can be lowered, energy can be secured, and Britain can be an energy superpower?

[John Lamont]

I do not agree that Labour has any answers to any of the challenges facing our country, but the hon. Member is correct to highlight the targets missed by the SNP Government in Edinburgh. More than a decade ago, the SNP promised to turn Scotland into the Saudi Arabia of renewables, but just like the SNP’s promises to close the attainment gap, build ferries and create a national energy company, that promise has been broken and quietly abandoned. The growth of Scotland and the UK’s renewable sector will generate many new jobs across our country, and this United Kingdom Government are determined to maximise the opportunities for the Scottish workforce.

[Ian Murray]

This UK Government want only to turn the UK into Saudi Arabia—never mind the Saudi Arabia of renewables.

It is critical to develop green energy jobs, but we also have to protect our environment—that is crucial. Unfortunately, waterways and coastal communities across the UK are being polluted by this Government’s refusal to stop pumping the equivalent of 40,000 days’ worth of raw sewage into them every year. It is little wonder that the SNP did not support Labour’s Bill to stop this disgraceful practice, as the Scottish Government do exactly the same. It was recently revealed that the equivalent of 3,000 swimming pools’ worth of raw sewage was dumped on Scottish beaches, waterways and parks last year. With both Governments allowing that sewage scandal to go on every day, and promises about green jobs and renewable industries broken, why should the public believe a word that the Scottish and UK Governments say about the environment?

[John Lamont]

This UK Government have a proud record of tackling sewage discharges. As the hon. Gentleman highlights, the policy is devolved to the Scottish Government. The SNP has a truly appalling record on allowing sewage to be dumped into Scotland’s waters, including at many environmentally protected sites. Recent press reports suggest that 7.6 million cubic metres of sewage were released into waterways of significance last year, including award-winning beaches and the River Tweed in the Scottish Borders. This is yet another example of where the SNP needs to clean up its act.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

2. What recent discussions he has had with the Scottish Government on support for renewable energy in Scotland.

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[Marion Fellows (Motherwell and Wishaw) (SNP)]

12. What recent discussions he has had with the Scottish Government on support for renewable energy in Scotland.

[The Parliamentary Under-Secretary of State for Scotland (John Lamont)]

The UK Government remain firmly committed to the renewables industry across the United Kingdom, including the leading role that Scotland can play in delivering energy security and jobs. Over the past year, we have worked closely with the Scottish Government through the offshore wind acceleration taskforce to bring forward the deployment of offshore wind projects in the UK.

[Ian Blackford]

It costs an electricity generator almost £7.50 per megawatt-hour to connect to the national grid from the north of Scotland and £4.70 from the south of Scotland. That compares with 50p in England and Wales. Indeed, generators in the south of England are paid to connect to the grid. Does the Minister recognise that these unfair transmission charges—the highest in Europe—penalise investment in Scotland’s renewables sector and, if so, what is he doing about it?

[John Lamont]

By law, transmission network charging is a matter for Ofgem as the independent regulator. Transmission charges are set to reflect the costs imposed on the grid by generators and demand in different locations. That means that generators in Scotland pay higher charges than counterparts in England and Wales, reflecting the higher levels of transmission investment they drive. Ofgem recognises the importance of transmission charges to the deployment of Scottish renewable generation and the current concerns over the viability and cost reflectivity of charges. That is a key reason why Ofgem announced a programme of transmission charging reforms. I can confirm to the right hon. Gentleman that I recently met the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) to discuss what more the UK Government can do to address the concerns he has highlighted.

[Martyn Day]

While the Scottish Government have announced an additional £7 million to support renewable hydrogen projects, Johnson Matthey, a leading producer of catalytic converters, has warned that the UK Government’s failure to invest in green hydrogen technology risks driving companies abroad. What are the Minister and the Secretary of State doing to persuade their Government to follow Scotland’s example and provide support for investment for companies driving green tech?

[John Lamont]

This Government fully recognise the opportunity that hydrogen presents as part of our shift in energy focus, and we will continue to work with the sector to deliver that.

[Tommy Sheppard]

Billions of pounds of renewable energy projects are currently stalled because there is no capacity to connect to the national grid. Some companies have been told that it will take 15 years. The Government’s failure to invest in interconnectors and grid capacity is not only hindering investment, but is harming the achievement of net zero. Given this failure, on top of the failures with connection charges and with hydrogen, does it not make a compelling case to transfer responsibility for energy supply and distribution to Scotland, where we can get the job done?

[John Lamont]

The answer is certainly not independence. The answer is ensuring we are doing all we can to reduce connection timescales as a priority. As well as accelerating the timelines for building new network infrastructure, that is also about the process for new projects to connect to the grid, such as how the connection queue is managed. To address that, we will be publishing a connections action plan in the summer, setting out actions by the Government, Ofgem and network companies to accelerate connections for renewable projects and other energy network providers.

[Marion Fellows]

According to the Chancellor, the UK Government’s windfall tax is set to generate £40 billion over six years, and the Minister for Nuclear claimed that taxes on Scotland’s oil and gas sector covered half of the UK energy bill last winter. Until now, however, this Government have failed to support the Acorn carbon capture and storage project in north-east Scotland. Do the Secretary of State and his Minister accept that windfall taxes from Scottish oil and gas should be used not just to pay short-term bills, but to invest in Scotland’s transition to net zero economy?

[John Lamont]

The energy profits levy strikes the right balance by funding the cost of living support while encouraging investment in order to bolster UK energy security. The levy is helping to hold down people’s energy bills right across the United Kingdom, including in Scotland, by partly funding one of the most generous cost of living packages in the world, worth around £96 billion or £3,300 per household. The hon. Lady shakes her head, but I know the benefits of the package for households in my constituency, across Scotland and in the rest of the United Kingdom. We want to encourage the reinvestment of the sector’s profits to support the economy, jobs and our energy security, which is why the more investment a firm makes into the UK, the less tax it will pay.

[Sir Paul Beresford (Mole Valley) (Con)]

Does my hon. Friend agree that, although renewable energy provides a considerable proportion of Scottish and UK power, if we are to hit net zero, nuclear power is and will be required to fulfil a large proportion of the additional power demand? Has my hon. Friend had any discussions with the Scottish Government on building nuclear reactors, especially small reactors, in Scotland?

[John Lamont]

I absolutely share my hon. Friend’s belief that nuclear plays an important part in the UK’s energy strategy. This UK Government’s “Powering up Britain” strategy is a blueprint for the future of energy in this country. We will diversify, decarbonise and incentivise new energy production by investing in both renewables and the nuclear sector. By setting Britain on course to greater energy independence, “Powering up Britain” will deliver energy security, of which nuclear will be a key part.

[Mr Speaker]

I call the SNP spokesperson.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

Energy storage is vital to managing demand as we switch to green electricity, and pump storage hydro is the most efficient large-scale storage method. Scottish Renewables has called for UK capacity to be more than doubled by investment in six shovel-ready projects across Scotland. Why are this Government refusing to support investment in infrastructure that is critical to future energy security?

[John Lamont]

I simply do not accept the hon. Lady’s analysis or conclusions. This Government are very much committed to the infrastructure investment that is needed to allow this new technology to evolve. However, the technology highlighted by the hon. Lady presents an opportunity, and we will continue to work with the sector to deliver it.

[Dr Whitford]

Pump storage hydro is hardly new technology. It has been around since the ’60s and lasts a long time, but it needs time to get built. Despite planning to take £40 billion in windfall taxes from Scotland’s oil and gas sector, neither this Government nor Labour have committed to invest in Scotland’s carbon capture, pump storage hydro, tidal stream or hydrogen potential, or to reform the situation whereby Scottish generators pay the highest transmission charges in Europe. Is it not clear that Scotland’s immense renewable resources would be better in the hands of the Scottish Government?

[John Lamont]

Absolutely not. At the Budget, the Chancellor announced £20 billion of funding to store as much carbon and create as many jobs as possible through track 1 and beyond—unprecedented investment in the development of carbon capture, usage and storage. The Government have also announced around £2 billion in investment for CCUS, hydrogen and industrial decarbonisation technologies. We have already confirmed that the Acorn project in the north-east of Scotland seems to meet the track 2 criteria, and we look forward to working with the project to ensure that we get some good news as soon as possible.

[Douglas Chapman (Dunfermline and West Fife) (SNP)]

3. What recent steps he has taken with the Scottish Government to promote Scotland overseas.

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[Paul Howell (Sedgefield) (Con)]

13. What recent discussions he has had with Cabinet colleagues on improving transport connectivity between Scotland and England.

[The Parliamentary Under-Secretary of State for Scotland (John Lamont)]

Scotland Office Ministers and officials have regular discussions with colleagues across Government about Lord Hendy’s Union connectivity review. I recently met stakeholders to discuss cross-border rail services between Scotland and England, and to learn more about a range of transport connectivity projects. We are also engaging with the devolved Administrations and other stakeholders to consider Lord Hendy’s recommendations.

[Kevin Foster]

Direct train services between Scotland and south-west England not only provide a useful connection for leisure travellers, but they boost our wider economies. What discussions has the Minister had with the Secretary of State for Transport about developing those services further, including direct links to Torquay and Paignton, as part of future planning for the cross-country franchise?

[John Lamont]

I agree with my hon. Friend’s enthusiasm for such rail links. The Department for Transport is developing a new cross-country national rail contract that is expected to commence in October 2023. As part of timetable development, officials recently met representatives from Transport Scotland. The connectivity and other benefits of providing through services between Scotland and Torbay can be looked at during the development of the new cross-country contract.

[Paul Howell]

The main artery between London, Edinburgh and Scotland is the east coast main line, on which run the fantastic Azuma trains that are built in Newton Aycliffe in my constituency. However, that line in north-east England is severely hampered in both capacity and resilience. Has the Minister spoken to the Department for Transport about supporting the Leamside line project, to add both of those?

[John Lamont]

Proposals to reopen the Leamside line were carefully considered as part of the development of the integrated rail plan. On the basis of available evidence and value for money analysis, the Government believe that the case for reopening the route would be best considered as part of any future city region settlement. The Department for Transport will continue its engagement with local stakeholders as any proposals are developed further.

[David Linden (Glasgow East) (SNP)]

If levelling up is to mean anything in the UK, can the Minister say when High Speed 2 will reach Glasgow?

[John Lamont]

The Government remain absolutely committed to the levelling-up agenda across all parts of the United Kingdom, including Scotland and the hon. Gentleman’s constituency in Glasgow. I am happy to contact the Department for Transport on his behalf to get him an answer.

[Christine Jardine (Edinburgh West) (LD)]

8. What recent discussions he has had with Cabinet colleagues on highly protected marine areas in Scotland.