Control of Offshore Wind Turbines Bill
Debate between Matt Hancock and Jonathan Reynolds
Matthew Hancock
The hon. Gentleman is getting a little ahead of himself. The Government’s support for the project at Siemens is rock-solid. Indeed, my right hon. Friend the Member for Hemel Hempstead (Mike Penning), sitting on the Front Bench next to me now, worked on the project securing the road investment that is critical to unlocking it.
Offshore wind is producing enough energy to provide the annual electricity requirements of about 2.8 million homes. The hon. Member for Stalybridge and Hyde (Jonathan Reynolds) read out the proportion, which people can easily read off their Energy UK app on their smartphone, and it is typically between 10% and 15% of the energy requirements of the UK. Then there are the jobs that are supported in the supply chain, although we should be direct about the reasons for supporting renewable energy.
To respond to a point made from the Opposition Front Bench, we are strong supporters of solar energy, especially as it closes in on being grid-comparable. There is a big opportunity for solar, not least because 1 million people now live in homes with solar panels on the roof. One of the exciting moments for the improvement in the mix of energy in the UK will be when solar becomes grid-comparable without subsidy, and it suddenly becomes cost effective without the involvement of the Government for millions more to put solar panels on their roofs.
We always knew that the early offshore wind projects would cost more. The costs are now coming down, and we have tried to put in place a system that promotes certainty, but we are deeply mindful of the need to protect consumers, and ultimately the long-term goal is for low-carbon technologies to compete on price with other forms of generation.
I agree with much of what my hon. Friend the Member for Shipley (Philip Davies) says, and certainly with a lot of what he said today, such as when he pointed out the utter inconsistency of the Opposition Front-Bench position, arguing without any caveat for renewables and without concern for the fact that there is a subsidy. We have introduced a cap on that subsidy through the levy control framework, and made sure that the subsidy that is available is auctioned and provided through a market process. In that way we get the best possible bang for the buck from the subsidy, instead of just laying it on without limit.
My hon. Friend also pointed to the utter inconsistency of calling for urgent action on a price freeze and then complaining that prices are not falling fast enough, when prices for consumers would be £100 higher if the Opposition had had their way a year and a half ago when they called for an immediate energy price freeze. Their squirming and wriggling this week, trying to say that in fact their policy was only ever a cap, while launching it next to an enormous block of ice, shows just how ridiculous and absurd it was in the first place. It has now been thoroughly exposed and we will relish the opportunity over the next three and a half months to point out to anybody who cares to listen that if someone calls for an energy price freeze and when energy prices start to fall complains that they are not falling fast enough, they do not have a shred of credibility left.
Matthew Hancock
I will give way to the hon. Gentleman if he will explain whether he is in favour of an energy price freeze.
Jonathan Reynolds
I do not believe that the Minister is as silly as his remarks might suggest. I think he is perfectly aware that it was always intended to be a freeze on rising prices, with the potential to deal with a fall. He has been gracious in letting me intervene on him, so may I ask him a specific question? He said that we were in favour of decarbonised electricity generation without having regard for the impact on consumers. It is the Conservative party, however, that is proposing a ban on onshore wind development, which is the cheapest form of renewable energy. If he is to stick to the legally binding commitments that this country already has, how will he square his lack of support for the onshore wind industry with his concern for consumers?
Matthew Hancock
We argued successfully in Europe for a decarbonisation target for 2030, to ensure that we could decarbonise at the lowest possible cost. The cheapest way to decarbonise our economy is to make it more efficient. That cuts not only carbon but bills, which is what the public are looking for. They want a policy that allows us to tackle the long-term threat of the risk of climate change at the lowest possible cost while providing certainty for investors.
The hon. Gentleman has demonstrated the pickle that the Opposition are in by his use of convoluted language, which differed from that of other Opposition Front Benchers who this week tried to argue that they had always been in favour of a cap. Well, there was no mention of a cap in the motion that they put before Parliament six months ago when they called for a freeze on energy prices. That freeze has been exposed as an utter joke.
Matthew Hancock
I will certainly give way, if the hon. Gentleman will come to the Dispatch Box and accept that the Opposition called for a freeze and that prices would have been higher now if we had listened to their proposal.
Jonathan Reynolds
The Minister is trying to dodge his previous statement by making points about efficiency, which he knows I agree with—hence our ambition for a much more successful energy efficiency policy than the one his Government have pursued, which has been in most aspects an outright disaster. I say to him again that he is talking about decarbonising at the lowest possible cost while simultaneously ruling out the most cost-effective form of renewable electricity generation. How does he square those two objectives?
Matthew Hancock
The focus is on decarbonisation, and renewables are one part of decarbonisation. We also need to look at low carbon emission energy, of which nuclear is an important part—
Oral Answers to Questions
Debate between Matt Hancock and Jonathan Reynolds(10 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Matthew Hancock
We are delivering the new traineeships from next month. Given the need, after years of inaction, to bring together support for work experience and skills for those approaching the job market, I would have thought that the hon. Gentleman would welcome that. I would have thought that the Opposition would have supported the rise in the number of apprenticeships to record levels since the election.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
10. What the outcomes were of his Department’s summit meeting with payday lenders on 1 July 2013; and if he will make a statement.