Offshore Wind Supply Chain: Tyneside

Debate between Nusrat Ghani and Mary Glindon
Wednesday 29th October 2025

(1 week, 4 days ago)

Commons Chamber
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Mary Glindon Portrait Mary Glindon
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I certainly will.

Nusrat Ghani Portrait Madam Deputy Speaker (Ms Nusrat Ghani)
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I call Jim Shannon on the offshore wind supply chain in Tyneside.

Jim Shannon Portrait Jim Shannon
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I spoke to the hon. Lady before the debate and explained the connection between her constituency and mine, and why it is so important. I also want to encourage the hon. Lady, who has been a great friend of mine in the House in all the time I have been here. We share many things, including an interest in this subject matter, but we also share our faith. It is important that we have that relationship across the Chamber. Does she not agree that while Tyneside is a major hub for offshore wind supply, we must continue to invest in new and better methodology in renewable energy, such as harnessing tidal energy through Strangford lough and Newcastle University’s wave energy device, which contributes to the area’s role in marine energy innovation? These are things that we can do better together.

Mary Glindon Portrait Mary Glindon
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The hon. Gentleman has long been a friend of mine, and he not only speaks well of his own constituency and Northern Ireland, but is very supportive of all of us across the Irish sea. He is right in what he says, and I think we are both justly proud of what is being achieved by the universities and industries in our areas. That is why we are standing here tonight and making our plea to the Government.

This week, the Government set the budget for allocation round 7 to support new offshore wind projects. RenewableUK, along with other industry voices, has expressed concern that the amount allocated is likely to procure only a quarter of the 20 GW capacity available in this year’s tender. This is a very recent announcement, so I would be grateful if the Minister could set out how the budget aligns with the Government’s plans to maximise the number of green jobs in Britain.

Against the backdrop of AR7, there is real concern regarding the alarming drift towards UK offshore wind turbine foundation structures being procured from lower-cost regions such as the middle east, the Asia-Pacific region—APAC—and China. Recent examples of this include EDF’s Neart na Gaoithe offshore wind farm, Ocean Winds’ Moray West OWF and the Inch Cape OWF. For these UK projects, all the foundation structures were imported from lower-cost fabrication yards located in the middle east, Indonesia and China. I understand the approach taken by the previous Government and developers to drive down and minimise capital expenditure, but that approach adversely impacts the operations of our own UK companies, which are unable to compete on cost alone.

Recent mechanisms and initiatives such as the clean industry bonus included in AR7 are of course welcome, but there is a fear that these alone will not prevent the further drift of foundation fabrication away from the UK to these lower-cost regions. With reference to the AR7 clean industry bonus allocation framework, there are two CIB criteria that developers could meet. Criterion 1 refers to “investment in shorter supply chains”, where an investment may be made in a deprived area in the UK. Given the socioeconomic challenges that Newcastle upon Tyne East and Wallsend face, option 1 is a welcome incentive, and I look forward to the outcome of the AR7 projects, when announced. Criterion 2 refers to “investment in more sustainable means of production”, where investments may be made in one or more manufacturing facilities or installation firms that have either committed to, or set their science-based targets by, the application date anywhere in the world.

There is real concern that this approach opens the door to unfair competition from lower-cost regions such as China, APAC and the middle east, specifically for the supply of critical offshore wind infrastructure such as wind turbine generator foundations, jackets, transition pieces and monopiles. Therefore, outside the AR7 framework, and given the criticality of this infrastructure to our energy security, will the Minister set out what additional measures or guarantees can be put in place to ensure that a significant portion of offshore wind infrastructure is secured and fabricated by UK companies such as Smulders? It is essential that businesses in the UK continue to invest, innovate and introduce new technologies and processes to optimise efficiency as well as competitiveness, as my hon. Friend the Member for Strangford (Jim Shannon) said. However, it is becoming increasingly difficult for UK companies to compete equally with overseas yards on such an uneven playing field.

On the Tyne, not only are supply chains held back by unfair competition; they are also constrained by physical barriers. The power cables over the Tyne are an obstacle to businesses securing work for large renewable energy structures, which risks possible net gross value added benefits of up to £1.2 billion. The height restriction in place is 87 metres. However, wind turbine jackets for AR7 and future rounds will be in excess of 100 to 120 metres high. It means that Smulders cannot bid for certain contracts despite having world-class facilities and the sharpest minds ready to go. It has been proposed that the removal of the cables will be completed in 2032. I have campaigned since 2017 for a solution to this issue—2032 is too late. The jobs of the future have become the jobs of today, and this is an international race. Yards in the middle east will not wait for 2032, APAC will not wait, and neither will China.

In July, I welcomed the Secretary of State’s commitment to engage with me and Ofgem to try to accelerate the work. I look forward to meeting the Energy Minister next month to discuss it further. I would be grateful if the Minister reaffirmed the Department’s support for bringing forward this work and reaffirm that the Government will press the National Grid for an earlier completion date.

I turn to the issue of ensuring a more consistent revenue stream for our domestic fabricators. We have seen disruption, delay and postponement in the promised pipeline of offshore wind projects because of failures during earlier leasing and allocation rounds. Projects from AR5 and AR6 are all now complete, or very near to completion. Unfortunately, however, insufficient projects were approved and insufficient contracts were awarded to the UK to ensure a continuous pipeline of work for companies such as Smulders. The result of that failure is a very real two-year chasm in UK offshore wind manufacturing. From the start of 2026, effectively, zero UK offshore wind projects will be in fabrication.

The next tranche of projects will be dependent on the successful outcome of AR7 and the clean industry bonus incentives offered to developers. The results from AR7, however, will not be known until quarter 1 in 2026, thus creating a two-year gap. This is the effective period from project approval and contract award, to finalising engineering and procuring materials before industry can start cutting steel. Optimistically, that could begin in quarter 3 or quarter 4 of 2027, with offshore infrastructure in place again two years after that in the final quarter of 2029. However, the first power generation from AR7 projects before August 2029 is a stretched target.

Smulders has already invested over £100 million at its Wallsend facilities based on previous Government assurances of continued UK offshore wind fabrication projects. What level of operational or other support is the Government willing to provide to established tier-1 fabricators such as Smulders to secure the jobs of over 600 well-paid workers during this two-year gap in fabrication?

I was delighted to hear the Secretary of State’s commitment during party conference to a clean energy jobs plan, which will see the sector grow from 430,000 jobs today to 830,000 by 2030. That will include tens of thousands of new roles for engineers, welders, electricians and construction workers. I support the Government’s ambition for further growth. The skills for these jobs are being developed and nurtured by companies in Tyneside, as well as by the Energy Academy in my constituency, which is set to expand following the combined authority’s commitment to invest £8.5 million in the college. Well-paid, secure jobs can be created through the awarding of contracts to existing UK tier-1 fabricators.

For UK companies, the outcome and results from allocation round 7 are critical to their continued operations in this country. More crucially, the outcome of the foundation contract awards will ultimately determine the long-term success or failure of our businesses—and, I believe, the future of the UK offshore wind fabrication sector. Only foundation contracts awarded domestically can provide the necessary volume of serial, repeat fabrication needed to achieve the Government’s clean jobs target, and secure the necessary skills required for a high-paid clean energy sector. I repeat my call on the Government to take further steps to ensure that a substantial allocation of AR7 foundation fabrication is awarded here in the UK.

As I said, at its peak, Smulders supports over 600 high-skilled and well-paid local jobs in Tyneside and across the region, and its primary concern is to secure those jobs in the long term. It is in the national interest for UK businesses to succeed with those projects, as they are creating highly skilled and dependable jobs that will not only strengthen the offshore wind industry but support training in skills required for associated industries such as defence, nuclear and the wider engineering sector, as well as supporting other major British infrastructure initiatives. The drifting overseas of such work threatens domestic jobs, future economic investment and the UK’s long-term security.

This is a critical juncture for the UK offshore wind sector, so will the Minister meet me, representatives from Smulders and the wider Tyneside supply chain to discuss urgently the concerns that I have set out about the areas in which industry needs further support, and so that we can present our aspirations for the clean energy future? Although the transition presents challenges from all angles, it presents even more opportunities. The Tyne is open for business, and it stands ready to play a defining role.

Nusrat Ghani Portrait Madam Deputy Speaker (Ms Nusrat Ghani)
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I call the Minister. I believe that this is her first time at the Dispatch Box for an Adjournment debate.

International Freedom of Religion or Belief Bill

Debate between Nusrat Ghani and Mary Glindon
Mary Glindon Portrait Mary Glindon (North Tyneside) (Lab)
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I am honoured to be part of the Committee and to be able to congratulate my friend, the hon. Member for Congleton. As other hon. Members have said, we are saddened today by the death of our colleague Lord Field of Birkenhead. I am sure there will be many tributes, and we are grateful for what has been said this morning. We will remember him and his family.

That sadness aside, this is a great morning for the hon. Lady because of all her work, as has already been said. Learning that she slept in a tent in the corridor to bring the Bill forward shows there are no bounds to her tenacity—I hope she had a comfortable night. It was well worth it, however, and we are grateful that she could bring forward the Bill and embody this role, as proposed by the Truro review. As all hon. Members have expressed, the Bill is important for people to recognise that our country feels that, in the world we live in today, the expression of freedom of religion and free speech are important, as we try to bring peace to our world.

On the questions put by my hon. Friend the Member for Rotherham, I echo the points made by my hon. Friend the Member for Hornsey and Wood Green (Catherine West) who spoke on Second Reading. In supporting the Bill, I would like to stress what she said then, referring to the shadow Foreign Secretary:

“In his role and during these meetings, he has made it clear that Labour will ensure that the UK stands against persecution and oppression in any form, and will promote freedom of religion or belief as a key component of our foreign policy”—[Official Report, 26 January 2024; Vol. 744, c. 571.]

in future, should we form a Government.

With that, I again congratulate the hon. Member for Congleton and wish her well as she continues in her role. We are thankful for what she has done on the world stage for Parliament and the UK.

Nusrat Ghani Portrait The Minister of State, Foreign, Commonwealth and Development Office (Ms Nusrat Ghani)
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It is an absolute pleasure to be serving under your chairmanship, Sir Graham. I must begin by putting on record my tribute to Frank Field. I had some limited interaction with him, and I know that he would be proud of my hon. Friend the Member for Congleton for all the work she has done in this space.

I do not think I have ever been in a debate where there has been so much approval for a piece of legislation or so much love—the word was used by an hon. Member —for a Member. I put on record my thanks for all the considered contributions and I join hon. Members in their gratitude to my hon. Friend for her leadership. It has taken some time for her to reach this place, but she is dedicated—I had not realised it stretched as far as sleeping in a tent. I put on the record my thanks to her and, of course, to David Burrowes, who was able to get his sister access to me on Saturday to ensure that I did everything I could to keep my hon. Friend happy, which is indeed my job.

When it comes to protecting people who are persecuted for their faith, my hon. Friend and I go way back. We worked on tackling the persecution of Christians in Pakistan and other countries, and of course the persecution of the Uyghur by the Chinese Communist party, so I am incredibly pleased to help the progress of this Bill. We have all expressed our gratitude to my hon. Friend, the current special envoy for freedom of religion or belief, and I pay tribute to her for the work she has done. She will be leaving behind a legacy, which is very rare for a parliamentarian.

I now turn to the Bill. Clause 1 requires the Prime Minister to appoint a special envoy for international freedom of religion or belief. Establishing that role permanently and in perpetuity was a recommendation in the Bishop of Truro’s 2019 independent review into the work of the FCDO and the freedom of religion or belief, and our 2019 manifesto committed to its implementation. The clause also sets out the duties of the special envoy and requires them to report periodically to the Prime Minister. The Prime Minister will determine the terms and conditions of the appointment.

Clause 2 requires the Prime Minister to establish an office of the special envoy to support the work of the special envoy. Clause 3(1) provides that the Bill will come into force on the day it is passed, and clause 3(2) provides that it will extend to England, Wales, Scotland and Northern Ireland.

New clause 1(1) provides that:

“There continues to be a special envoy called the Prime Minister’s Special Envoy for Freedom of Religion or Belief.”

Ensuring that the role continues to be known as the Prime Minister’s special envoy will mean that it maintains its international authority and recognition, as hon. Members have said. The new clause also seeks to reduce the statutory duty on the Prime Minister to appoint and provide resources to the special envoy; the duty is delegated to a Minister of the Crown. That change is essential, as legislation relating to the Prime Minister’s powers is extremely rare and limited, especially where the processes can be dealt with administratively. I thank the special envoy for her understanding on that point.

The new clause also clarifies the duties of the special envoy. It states:

“The special envoy must act with a view to…promoting freedom of religion or belief abroad, in particular by working with the government of the United Kingdom, with other governments and their representatives…and with organisations outside government;…raising awareness of cases in which people abroad are persecuted or discriminated against on the grounds of religion or belief and advocating for the rights of such people.”

Those revised duties reflect the status of the work undertaken by my hon. Friend in her role as special envoy.

My hon. Friend has worked with other special envoys to secure numerous achievements on FORB. Perhaps the most notable of those achievements was her co-hosting of the fourth international ministerial conference on freedom of religion or belief, which brought together Government delegations, faith and belief group leaders, human rights actors and civil society representatives from more than 100 countries to address challenges to the right to FORB. She subsequently hosted a series of roundtables on individual countries, including Nigeria, Pakistan, Iran and Myanmar, which brought together key stakeholders, including embassies and non-governmental organisations, to promote respect for FORB.

I congratulate my hon. Friend on her accomplishments as chair of the International Religious Freedom or Belief Alliance. She was asked to carry out the role of chair for a second time last year—the first time in the organisation’s history that such a request has been made. As chair of the IRFBA, she established a scheme to raise awareness of prisoners of conscience each month, including individuals from Vietnam, Nicaragua, Cuba and Myanmar. In three cases, individuals were subsequently released, which is a tremendous result.

That is a small sample of the important work my hon. Friend has undertaken. Reflecting that work in the revisions to the special envoy’s duties will set the same high expectations for delivery for future incumbents. New clause 1 also simplifies the provision of resources to the special envoy by no longer requiring the establishment of a separate office for the special envoy. The envoy’s work is currently supported by her FCDO private office, the FCDO FORB team, the FCDO media office and other officials across the organisation, with an annual budget covering staffing costs and, of course, travel expenses. Resources should continue to be provided in the established manner.

New clause 1(7) makes the special envoy’s functions exercisable on behalf of the crown. Amendment 3 adjusts the Bill’s short title to “Special Envoy for Freedom of Religion or Belief”, so that it refers specifically to the special envoy. That adjustment to the title more accurately reflects recommendation 6 of the Bishop of Truro’s review, which specifically states that the role of special envoy for FORB should be established “permanently, and in perpetuity”, as I mentioned. The amended title clearly aligns with our manifesto commitment to implement the findings of the Truro report. Amendment 4 adjusts the Bill’s long title to reflect its contents more clearly, and removes references to the Prime Minister, for reasons previously discussed.

Let me respond to the hon. Member for Rotherham. The authority of the role is that it is established in the Department. The special envoy has access not only to her own staff, but to Ministers and officials across Government, as well as having the ear of the Prime Minister. The hon. Lady talked about a hierarchy of human rights. She and I know that there is no hierarchy. The persecution of individuals on the basis on their faith often involves not only their faith but other levels, including gender and, potentially, sexual orientation. There is no hierarchy of human rights; the UK defends the full range of human rights as set out in the universal declaration of human rights.

In conclusion, the Bill reinforces our commitment to the position of special envoy for freedom of religion or belief. It will support the FCDO as we ensure that progress made on the freedom of religion or belief is embedded, and that the freedom of religion or belief is central to our wider human rights work. The role has only been established because of the sheer determination of my hon. Friend the Member for Congleton.

Oral Answers to Questions

Debate between Nusrat Ghani and Mary Glindon
Thursday 23rd March 2023

(2 years, 7 months ago)

Commons Chamber
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Nusrat Ghani Portrait The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
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The Prime Minister has made it clear that growing the economy and creating better-paid jobs is one of our top priorities, and the Government are working with industry across the UK to achieve that. We have set out clear plans for prioritising technology sectors, advanced manufacturing, financial services and creative industries, and this includes our investor road maps. In particular, the Chancellor has announced 12 investment zones across the UK, which could benefit from £80 million of interventions over the next five years.

Mary Glindon Portrait Mary Glindon
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The Government have not published an industrial strategy since 2017 and, as a result, the UK now has the lowest level of business investment in the G7. So what is the Minister’s plan to encourage business investment in the UK, given that the Government have not even published an industrial strategy?

Nusrat Ghani Portrait Ms Ghani
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I think the hon. Lady has misunderstood exactly what we are doing. We have industrial strategies, be it for the automotive sector, the aviation sector, the maritime sector, or science and tech—that one was published just yesterday. This is not just about publishing strategies; it is also about delivering, which is what we are cracking on with and doing. As for UK investment, we are the leading country for start-up capital outside the United States, and just a few weeks ago we attracted £20 billion into tech—this is twice as much as France and Germany.

Oral Answers to Questions

Debate between Nusrat Ghani and Mary Glindon
Tuesday 17th January 2023

(2 years, 9 months ago)

Commons Chamber
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Nusrat Ghani Portrait Ms Ghani
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There is nothing I could disagree with there. It is absolutely right that we focus on the skilled workforce that so many of our manufacturing sectors are struggling to recruit, and any opportunity to show and share with the skilled workforces, or even help them to “skill up”, is welcome news.

Mary Glindon Portrait Mary Glindon (North Tyneside) (Lab)
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10. What recent estimate he has made of the number of households in fuel poverty.

Vicky Foxcroft Portrait Vicky Foxcroft (Lewisham, Deptford) (Lab)
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25. What recent estimate he has made of the number of households in fuel poverty.

Nusrat Ghani Portrait The Minister for Industry and Investment Security (Ms Nusrat Ghani)
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The latest statistics, published in February 2022, show that 3.2 million households in England were fuel poor in 2020. Updated estimates are due to be published next month. Fuel-poor households can benefit from schemes including the energy company obligation, the local authority delivery scheme and the home upgrade grant, which will help them to improve the energy efficiency of their homes.

Mary Glindon Portrait Mary Glindon
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According to the Fuel Poverty Monitor released by National Energy Action today, from next April onwards the number of households in fuel poverty in the UK could reach 8.4 million. What additional targeted support will the Government provide for those on the lowest incomes—particularly those who are not receiving benefits—when the energy price guarantee increases to £3,000 in April?

Nusrat Ghani Portrait Ms Ghani
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The Government are committed to tackling fuel poverty, and I welcome the work of National Energy Action, which published its Fuel Poverty Monitor today to highlight the difficult situation in which many households have found themselves. Just as we provided support during covid, we are providing it now. I believe that the report looked fundamentally at means-tested benefits, pensioners and those with disabilities. The Government have committed £26 billion for 2023-24, including £900 for households on means-tested benefits, £300 for pensioners and £150 for those with disabilities, as well as an extra £1 billion to allow the extension of the household support fund. However, I know that we will continue to do more.