Electricity and Gas Transmission (Compensation) Bill

Jonathan Reynolds Excerpts

Friday 25th November 2022 Commons Chamber

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I begin by congratulating the right hon. Member for North Somerset (Dr Fox) on his success in the ballot and on bringing his Bill to the House today. He can perhaps now be described as a private Member’s Bill specialist, and the skill in that is to pick issues that allow the House to come to some sort of agreement and for which people want private Members’ Bills. I listened intently to what he had to say and—I will be honest with him—I have some concerns about his Bill, but I can tell him that I have amended my own speech in response to some of his points, so I genuinely listened to the case he put forward.

The right hon. Member gave a detailed account of how these matters have affected his constituents. He was right to say that the proposals are of national significance. That is because the debate comes at a time when this country faces several converging emergencies: the energy bills crisis is impacting deeply on millions of families and businesses across the country, the energy security crisis has been exposed by Russia’s illegal invasion of Ukraine and, of course, on the climate crisis, the UN tells us that we are on course for 2.8° C of catastrophic global warming.

Those crises all call for a sprint to renewable and nuclear energy. That is why the Labour party has set out our plans to make Britain a clean-energy superpower by 2030. I think we all agree that that is also the best way to keep energy bills low, tackle the climate emergency and create good jobs for the future. Achieving that mission is not just about building more kit—more nuclear plants, wind turbines or solar panels—but about establishing storage capacity to manage peaks in energy demand, new ways of balancing the grid and, most of all, very comprehensive improvements to our electricity infrastructure to expand the grid to new sources of energy. That is why the Bill is particularly relevant and important.

My understanding from listening to the right hon. Member is that, fundamentally, he wants to create an independent process whereby compensation can be determined for landowners whose land is required for the transmission of electricity or gas. I assume he intends that compensation to involve increasing the price currently paid for the land above the agricultural value that is commonly applied when such land is acquired through a compulsory purchase order. He made an excellent speech, and the way in which he articulated the specific cases of his constituents was very powerful—particularly when he pointed out that local property searches had not revealed the Hinkley infrastructure, which would impose a considerable burden on people.

I cannot say to the right hon. Member that I am fully convinced that what we need is new legislation to do this better. Expanding the transmission of electricity and gas is vital for the future health of our economy, not just as the bedrock of our clean energy future. In my role I have the privilege of meeting representatives of a range of companies every day, and they all tell me that one thing that holds them back from investing in the UK and growing their business is the time that it takes to secure the necessary expansions of the grid network. A few weeks ago, representatives of a company in Newcastle told me that it had been offered a grid connection by 2040.

[Sir Mike Penning]

It is generous of the shadow Minister to give way again. I have been sitting here quietly listening to the debate, and I share some of his concerns about more regulation delaying the infrastructure projects, but I think that this proposal could actually speed them up, because in many cases it would remove the need for stuff to go to a tribunal. I do not think that the Bill is designed to delay—far from it—although I am sure that if I am speaking out of turn, my right hon. Friend the Member for North Somerset (Dr Fox) will tell me so. I think that this could be the fairer mechanism to speed these projects up, rather their being subjected to a long tribunal process with the massive delays that all of us, as constituency Members, have experienced.

While I accept the point that the shadow Minister is making about his scepticism—a point from which I started—I fully support the Bill, and I think that, in the end, he will support it as well.

[Jonathan Reynolds]

I am grateful for the right hon. Gentleman’s intervention, because if it were clear that this was the way in which to resolve issues and speed the process up, that, for me, would be the deal-breaker. In the 12 years for which I have been in Parliament— I think the right hon. Gentleman will forgive me for saying this—I have often heard Conservative colleagues express strong opposition to housing developments, energy infrastructure, HS2 and other rail projects. It is important for us to get to the crux of the matter, which is whether this is about resolving things more quickly for people or whether it would delay the system further. If we are to meet the ambitions that Members on both sides of the House have held dear, we will all have to recognise the problems that are involved.

[Dr Fox]

I may be able to help the hon. Gentleman. The purpose of drafting the Bill in this way—without specific legal recommendations, and asking the Government to come up with a solution to the problem—is not to encumber us with further legislation but to open the way for the Government, for example, to introduce, under previous legislation, mechanisms that would enable disputes to be resolved more quickly. Let me say, for the avoidance of doubt, that the way to kill a private Member’s Bill is to include too many specific measures on Second Reading. Requiring the Government to come forward with a solution offers us options that will not necessarily impose on our constituents legislative burdens that are enforceable only through the courts.

--- Later in debate ---

[Jonathan Reynolds]

I did say that the right hon. Member was a private Member’s Bill specialist, and I think he has just given us all a little insight into how to handle these matters. I hope that once more detail is available, we will see an analysis of the way in which any changes in the process would affect our projections in respect of the future financial viability of grid expansion projects and key elements of national infrastructure.

I recognise the arguments advanced by many Members about how various issues involving infrastructure and other such matters have affected them and their constituents, and I hope I have been candid in expressing our concerns about how those might be overcome in future. I close my remarks by addressing some of the broader points this raises. If we are to deliver a clean and secure power system, we need the Government to address some of these issues, as there will clearly be major impediments if they are not addressed. We face considerable issues in providing business with stability and confidence to invest in this country. Members will be aware that we currently have the lowest level of business investment in the G7, so it is essential that we resolve such matters.

We need more clarity, leadership and direction from the Government. We do not need a Prime Minister who has to be dragged to COP27, an Environment Secretary who opposes solar energy or, frankly, a windfall tax that gives enormous, untargeted tax breaks for fossil fuel investment. Taking these matters seriously, and taking seriously the concerns that Members have articulated today, is essential, because achieving this is not just about new electricity or gas generation but about planning reform, new contracts for difference and the regulatory environment. The Bill sheds light on how we can bring local people on that journey.

Making sure these concerns are addressed is essential. Although the right hon. Member for North Somerset has done a tremendous job of moving the Bill’s Second Reading today, this debate is worthy of mainstream parliamentary time and requires a comprehensive approach from the Government, which is currently lacking.

If I could make one plea to the Minister, it would be to ask her to bring back the Energy Bill urgently. We will need some of the tools in that Bill if we are serious about cutting bills, creating jobs, growing our economy and providing energy security. Whether it is these matters about transmission or the other tools we need, we simply do not have the legislative foundations in place to meet the Government’s ambitions or the British people’s expectations.