Matt Hancock
Main Page: Matt Hancock (Independent - West Suffolk)(9 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mark Menzies (Fylde) (Con)
2. What assessment he has made of trends in renewable energy investment since 2010.
The Minister of State, Department of Energy and Climate Change (Matthew Hancock)
Since 2010, an average of £7 billion has been invested each year in renewable electricity, compared with £3 billion a year in the previous Parliament.
Mark Menzies
May I take this opportunity to welcome my right hon. Friend to his new role? There has been a recent proposal for a tidal gateway across the Ribble estuary that could provide enough electricity for 18,000 homes. Will the Minister update the House on the progress of the project and ensure that environmental considerations will be at the forefront of the proposal?
Matthew Hancock
The project is proceeding and I would be very happy to hear more detail about my hon. Friend’s position and support for it. Ensuring that we get renewable investment of all kinds is an important part of our plan to deal with climate change and increase energy security, and that is something on which we are working hard.
Mr Dennis Skinner (Bolsover) (Lab)
The Minister has just heard an exchange about the question of state aid that specifically referred to him. We met the miners from the three deep-mine pits that are left, Kellingley, Thoresby and Hatfield, which are in peril. I am talking about energy supply, something for which the Minister is responsible. This Government took £700 million out of the miners’ pension fund last February and all we want is £70 million of state aid for those three coal pits to exhaust their reserves. Treat us like you do the oil companies when you give them tax breaks in the North sea and let us exploit the reserves in the three remaining pits.
Matthew Hancock
I have much to learn from the hon. Gentleman, but that question was not really about renewable energy. Since taking up this post, I have been working hard for a solution to the issues around UK Coal. The Secretary of State set out some of the downsides to a state aid solution. I am prepared to look at all options, but we should be clear that the EU Commission is absolute that it would require a closure of those mines were we to put in place a state aid solution. I come from Nottinghamshire mining stock and I will not take any nonsense from the hon. Gentleman.
Mr David Jones (Clwyd West) (Con)
Later this month, I shall be attending a meeting in north Wales to discuss the construction of a tidal lagoon at Colwyn bay—one of several that are planned for the coast of Wales and the north of England. Does my right hon. Friend agree that tidal lagoons have the potential to make an enormous contribution to the energy security of this country, and what is he doing to encourage their development?
Matthew Hancock
Yes, tidal has enormous potential. Only last month, at Pentland firth, we saw the roll-out of the biggest tidal array yet. I look forward to working very closely with my right hon. Friend.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I welcome the right hon. Gentleman to his post. I hope he is as energetic in it as he was as Minister for Skills and Enterprise. May I press him on the sustainability issue? Is he aware that the Trillion Fund is a new way of raising money for sustainable energy projects, both in this country and worldwide? It is a very exciting new venture. Vivienne Westwood has just invested £1 million in it. Will the Minister get behind that crowdfunding initiative and give it some support?
Matthew Hancock
The hon. Gentleman is very kind; I am grateful for his compliments. I look forward to the opportunity of working positively with Vivienne Westwood on improving our energy supplies and security. We need improvement across the board, and that includes ensuring that we make the most of our indigenous gas supplies. Improving renewables in our country is, of course, about finance as well as technology on the ground. There is a big opportunity, especially as the cost of renewables falls—the cost of solar is pre-eminent in that fall—and we must seize it with both hands.
Neil Carmichael (Stroud) (Con)
Skills, as well as nuclear, are important to pushing forward the renewable energy cause, so does the Minister agree that, as part of the long-term economic plan, the investment by the growth fund in Berkeley for a skills and training centre in green and other energy sources is an excellent way forward?
Matthew Hancock
Yes; I know something about that proposal from my previous job. I am of course a great fan of the skills agenda and I am convinced of the need to drive up the quality and quantity of skills in this area. I am also a big fan of the long-term economic plan, so my hon. Friend’s question just about hit the nail on the head.
Julie Elliott (Sunderland Central) (Lab)
Onshore wind developments are being held up by huge delays in the planning system. Since 2009, onshore wind projects have taken, on average, an additional four months to receive planning approval. In total, developments are taking more than four years from the point of application to generating electricity—an increase of over a year since 2009. Can the Minister explain why?
Matthew Hancock
The easiest way is to say that local people’s views are now being taken into account, and I am very glad that they are. It is funny to get such a question from the Labour Front Bench, given that the amount of investment in renewables has doubled in this Parliament—compared with the previous Parliament. At the same time, though, we have strengthened planning rules to allow more control by local people, because the worst way to try to improve the roll-out of renewables, which is important for energy security as well as for climate change, is to ignore the position and the views of local people. That was what happened under the previous Administration and we have changed that.
Julie Elliott
That was not an answer to my question, and I have to say that most of the developments started under a Labour Government. The figures reveal shocking delays to vital new energy infrastructure. Delays to onshore wind and the use of recoveries and call-ins, not local people, mean that projects are left languishing for years before they receive an answer. Those delays cost jobs and threaten our energy security. What urgent steps is the Minister taking, and what discussions has he had with the Secretary of State for Communities and Local Government, to sort out this mess?
Matthew Hancock
I have discussions with the Secretary of State for Communities and Local Government to ensure that local people’s views are taken into account. The hon. Lady says that the extra investments are due to decisions taken under the previous Government, but that is not true. There is an increase in renewables roll-out, but we have to do it taking local people’s views into account, because to save the global environment and tackle climate change, we cannot sacrifice our local environment, particularly in beautiful places. Getting that balance right is very important. It was not right before and we have put it right.
Michael Fabricant (Lichfield) (Con)
3. What his Department’s policy is on promoting sustainable energy sources; what estimate he has made of future UK generating capacity from such sources; and if he will make a statement.
The Minister for Business and Enterprise (Matthew Hancock)
We have a range of measures in place to promote sustainable energy sources, including reforms to the electricity market to support nuclear, renewables and carbon capture and storage. The percentage of electricity generated from renewable sources has doubled from 7% in 2010 to 14% at the end of last year.
Michael Fabricant
I am grateful to my right hon. Friend for his answer, but it demonstrates that renewables are not the only way and something we can depend on for electricity supply. I note that generation from nuclear power went down slightly in the first quarter of this year, from 18% to 17.7%. What action is he taking to ensure that nuclear energy expands in the years to come?
Matthew Hancock
The whole Department is supporting and driving the first new generation nuclear power stations, which are extremely important for our energy security and the energy mix. Of course a mix is the best way to deliver energy. Renewables are important and are now a material part of our energy supply, but nuclear is zero-carbon energy, too, so we are working hard to land the new generation of nuclear power stations.
Derek Twigg (Halton) (Lab)
Is it still Government policy to support energy from waste incineration? There are problems in my constituency, where the biggest incinerator, run by Viridor, is causing problems of emissions, odours and noise. Will he ask his officials to have a look at the situation in Runcorn to see what is going wrong there?
Matthew Hancock
There are opportunities in energy from waste, not least because it deals with two problems at once, but we have to make sure we get the details right. I will be happy to look at the case the hon. Gentleman raises.
Gregory Barker (Bexhill and Battle) (Con)
The record growth, the record deployment, the record investment in renewables under this coalition Government are hugely to their credit, but there is more that we can do. Solar is a particularly exciting opportunity, as my right hon. Friend says, and we are about to smash through 4 GW of solar deployed under this Government, but we need to do more to unlock the potential of roofs, particularly commercial and industrial roof space. Will he pledge to work with my hon. Friends to continue to tear down the barriers to deployment?
Matthew Hancock
Here I am trumpeting this Government’s successes in deployment of renewable investment, and there is the man who led the charge. I pay huge tribute to the work my right hon. Friend did—he did an absolutely terrific job. Thanks to his work, 1 million people now live with solar panels on their roof. I think solar is one of the big opportunities. As the price falls and it becomes competitive—potentially grid competitive—in the short to medium term, solar is a big opportunity, even in cloudy old England.
Mr David Hanson (Delyn) (Lab)
Following on from the exchange with my hon. Friend the Member for Sunderland Central (Julie Elliott), what assessment has the Minister made of the impact of a brake on wind farm development on land on our burgeoning wind farm manufacturing industry and on companies such as West Coast Energy in my constituency, which create hundreds of jobs specialising in that growth area of the economy?
Matthew Hancock
The doubling of investment in renewables under this Government has undoubtedly helped those people, as it has helped many other people to get jobs, which is one of the reasons we are seeing record jobs in this country as part of our long-term economic plan.
Mr James Gray (North Wiltshire) (Con)
The people of north and west Wiltshire strongly support renewable energy, but we are besieged by hundreds of planning applications from London-based commercial operations for solar farms, not on roofs of factories or brownfield sites, but on greenfield sites across the county. Will my right hon. Friend reiterate the strong message that our right hon. Friend the Member for Bexhill and Battle (Gregory Barker) previously sent out, which is a strong presumption against the use of agricultural land and a strong presumption in favour of industrial roofs and other places?
Matthew Hancock
There are opportunities for solar, where appropriately sited, in many different places on roofs and on land. In fact, land can be combined with agricultural use and solar. One other advantage of solar is that it can effectively be masked from being seen from elsewhere because it is low-rise rather than high-rise. This has to be done sensitively. There is no point in destroying our green and pleasant land in order to save the global environment. We have to tackle security of supply and climate change in a way that also protects the local environment.
Mr Henry Bellingham (North West Norfolk) (Con)
4. What plans he has to change the subsidy regime for onshore wind farms; and if he will make a statement.
The Minister for Business and Enterprise (Matthew Hancock)
In future, instead of a fixed level of subsidy, onshore wind will have to bid for support through our new contracts for difference, which will be allocated competitively so that only the best-value projects are supported. The first allocation rounds open in October.
Mr Bellingham
Is the Minister aware that Norfolk hosts a large number of offshore wind arrays that command widespread public support, in stark contrast to most—not all—onshore wind farms, which can be very unpopular when they destroy beautiful landscapes? Further to his earlier reply, can he confirm that Norfolk will not have any more onshore wind farms imposed on it in the face of local opposition?
Matthew Hancock
As I said, we have given more local control in the planning system, as well as changing the subsidy regime so that onshore wind would have to be competitive, for instance, against solar. As the costs of solar fall, it is increasingly able to compete for that subsidy. This is about getting the best possible value for money out of the subsidy but also ensuring that local people have a say in the planning system. I know some of the sites that my hon. Friend is talking about—indeed, I visited, or rather went past, one of the developments last month—so I know of the local concern in his constituency. We have to make sure that in future local people have more of a say, and we are doing that.
Mr Andrew Robathan (South Leicestershire) (Con)
We should be very proud of the investment in renewable energy and the progress that has been made over the past four years, making this the greenest Government ever, to coin a phrase. The current policy of reducing the subsidies is absolutely sensible. However, may I gently say that sometimes those who make the most noise are a very vocal minority? My experience in my constituency is that a very few vocal people oppose wind farms whereas most people say, “Actually, not only do we not mind them, we quite like them.”
Matthew Hancock
Where local people not only do not mind local wind farms but quite like them, and the local council decides that that is their democratic decision, giving them more power over the placement of local turbines is the right approach. This is about making sure that we have support locally.
Mr Philip Hollobone (Kettering) (Con)
Under the planning system there are separate land use categories for houses, industry and retail but there is no separate land use category entitled “energy generation”. This is an accident of history, because when electricity was first generated it was done only by the Crown using Crown prerogative. The reason local authorities are struggling with all the planning applications for wind farms and solar farms is that they do not have this separate land use category. Will the Minister be kind enough to agree to meet me and the Minister responsible for local government to see how that category could be introduced, because it would better facilitate and regulate the flow of planning applications through all the district councils up and down the land?
Matthew Hancock
I would be happy to meet my hon. Friend and the relevant Minister from the Department for Communities and Local Government, because of course planning issues are directly for that Department. While there may not be a separate category within the planning rules at one level, there is guidance explaining how the rules should be applied in terms of energy generation and transmission, so we just have to make sure that the details are right.
Julie Hilling (Bolton West) (Lab)
7. What steps he is taking to help households with their energy bills.
Graham Stringer (Blackley and Broughton) (Lab)
9. What steps he is taking to reduce payments to owners of wind farms that are not producing electricity.
The Minister of State, Department of Energy and Climate Change (Matthew Hancock)
In 2012 the Government introduced new licence conditions to prevent generators profiting unfairly from transmission constraint. That has enabled National Grid to halve the average amount paid per unit of electricity to wind farms to reduce output. In the medium term, planned network upgrades will reduce further the overall level of constraint costs.
Graham Stringer
On one day in August, the Government spent £2.8 million on wind farms that were not producing electricity. “Money for Nothing” might be a good pop lyric, but it is not a good policy for a Government who are short of money. The Minister of State, when he was a Back Bencher, said that payments to wind farms should be drastically cut. Would not reducing these absurd payments to zero be a good start?
Matthew Hancock
Constraint payments have been in place for many years, and those for renewable energy are no different from those for other types of energy. They are part of making sure that we have the right amount of power in the grid. The Government have halved the amount paid per unit of electricity, so the hon. Gentleman, rather than harping, should stand up and say, “Congratulations. Can we do some more?”
Mr Clive Betts (Sheffield South East) (Lab)
10. What steps he is taking to help households improve their energy efficiency.
Ian Lucas (Wrexham) (Lab)
15. What steps he is taking to ensure the safety of fracking.
The Minister of State, Department of Energy and Climate Change (Matthew Hancock)
Shale gas, carefully extracted, offers the potential to improve the security of Britain’s energy supplies and create jobs. All onshore projects are subject to scrutiny through the planning system, the Environment Agency and the Health and Safety Executive.
Ian Lucas
Many of my constituents are expressing concerns about fracking. If the Minister wants to take the public with him when he is dealing with energy applications, will he agree to Labour’s amendments to the Infrastructure Bill to allow baseline assessments so that people’s concerns can be assessed?
Matthew Hancock
We are looking carefully at all the amendments that have been tabled to the Infrastructure Bill. In several cases, the amendments reiterate what already happens. We want to ensure that we make the most of Britain’s indigenous energy supplies in a way that is safe and secure, creates jobs and will give us better security of supply. We will consider all measures to try to do that.
Mr David Nuttall (Bury North) (Con)
Given that the UK has been producing nuclear energy safely for nearly 60 years without any major problems, does the Minister agree that, given all the safety regulation we have, there is no reason to believe that this country is not capable of extracting shale gas safely?
Matthew Hancock
I agree strongly with my hon. Friend, and that is what we are going to do.
John Robertson (Glasgow North West) (Lab)
I have not made my mind up on fracking yet, but the information that we get is a bit like the Scottish Government’s White Paper—full of words but with no answers. Will the Minister ensure that the people of this country are fully informed about fracking and what is happening with it?
Matthew Hancock
Yes. We have an intensive communication plan, and I will ensure that the hon. Gentleman is included in any future communications. I can particularly recommend to him one of the Department for Energy and Climate Change publications, which explains in clear detail exactly what fracking is, how it is safe and the regulatory structure for it. It is important to ensure that we take advantage of this indigenous and secure domestic energy supply, but in a way that is safe and secure.
Gavin Shuker (Luton South) (Lab/Co-op)
18. What steps he is taking to secure a legally binding global climate agreement.
Caroline Flint (Don Valley) (Lab)
In the early exchanges, a difference of approach seemed to arise out of the support or non-support for Thoresby and Kellingley coal mines. Will the Minister of State clarify whether he is open to a state-aid application, and say what form of assistance he would make available to UK Coal? If a formal application is made, how quickly will the Department for Business, Innovation and Skills decide whether to present the case to the Commission? If that is not the case, will he explain why the £4 million loan has been delayed, and say when he expects that money to reach the mines?
The Minister of State, Department of Energy and Climate Change (Matthew Hancock)
As the Secretary of State and I have described, the commercial option has the benefit of being under the control of UK Coal, and we are working towards that. It has not been delayed; it is a matter of ensuring that it can be done on a commercial basis. On whether we should go further and look at state aid, as I have said, I have been open to all options but there are some serious downsides, not least that the Commission would require the coal mines to close.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
Does my right hon. Friend recognise that consumers in rural areas with no mains gas and predominantly solid wall properties still find it difficult to access help to cut their fuel bills? He has visited such properties in my constituency. Is he still working to help them?
Mrs Mary Glindon (North Tyneside) (Lab)
T4. Maersk Oil will shortly begin the process of awarding major construction contracts for the exploitation of the Culzean field in the UK sector of the central North sea. Maersk will receive significant tax incentives from the UK Treasury, but what help and support is being given to UK fabricators to ensure that they can reasonably benefit from the development?
Matthew Hancock
Having a joined-up strategy so that when there is further development in the UK continental shelf we ensure that the whole supply chain is in a position to benefit is an important part of our long-term economic plan—it was great to hear the Secretary of State talk about our long-term economic plan. It is undoubtedly important that, as has happened over many decades, the whole supply chain in the UK benefits from development and exploitation of our indigenous reserves.
Grahame M. Morris (Easington) (Lab)
T5. I would like to press the Secretary of State on answers he gave earlier about support for the remnants of the coal industry. Thousands of coal miners’ jobs are hanging by a thread, yet his response was that there were issues about committing to closure, but that is not necessarily a problem as long as those pits are allowed to exhaust their known reserves.
Graham Stringer (Blackley and Broughton) (Lab)
T6. The Government are supporting the roll-out of smart meters that are not so smart: they cannot communicate with smartphones. When will Ministers rectify this failure of Government policy?
Matthew Hancock
Action is under way to ensure we get the best possible energy efficiency from both smart meters and private developments, such as smart thermostats—this summer, I installed a smart thermostat, so I can turn the electricity and heating in my home on and off from my iPhone. Getting the best cost savings for consumers as well as reducing energy demand by enhancing and embracing technology is a vital part of what we are doing.
Diana Johnson (Kingston upon Hull North) (Lab)
T8. With Hull city council yesterday granting final planning permission to Siemens, will the Secretary of State join me in encouraging everyone to take advantage of the new green jobs that will be coming to the city, while deploring the statement that UKIP put out saying it would rather the wind turbine jobs went abroad and the statement of the Hull Green party, which last week told BBC Radio Humberside that it did not rule out boycotting Siemens?
Mr Dennis Skinner (Bolsover) (Lab)
In this Energy Question Time, we have heard from the Government Front Bench that the Government are giving assistance, money and help to almost every energy industry in the country—nuclear, commercial operators in the North sea, companies assisting in solar panel investment and all the rest. The only energy industry that is getting no help—it is getting a lot of talk and waffle from Ministers—is the coal industry, and 3,000 jobs are on the line. Do this Government want to allow them to be sacked—a question that has been asked several times by my right hon. Friend the Member for Don Valley (Caroline Flint)? We have had enough talk; we want some action. The Government should give some state aid to keep those pits in operation so that the reserves can be exhausted. Get to it!
Matthew Hancock
I am delighted to say that I have spent the last two months working hard with UK Coal, meeting the head of the National Union of Mineworkers and the Union of Democratic Mineworkers to ensure that we can come to an arrangement that will help and support coal mining in this country. [Interruption.] From that heritage, which I have, we are looking for practical support for coal mining in the UK—instead of the shouting and the waffle from the man opposite.
Dr Alan Whitehead (Southampton, Test) (Lab)
Will the Secretary of State reconsider his decision to exclude households that are renting less than a complete building from his proposals to require landlords to improve the energy efficiency of their properties to at least band E by 2018?