Oral Answers to Questions
Debate between Nusrat Ghani and Paul Williams(5 years, 2 months ago)
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Dr Paul Williams (Stockton South) (Lab)
People in Stockton cannot get a bus back home after an afternoon doctor appointment, while the Tees Valley Mayor has spent £15,000 on Facebook advertising after almost two years but still has not come up with a plan to improve buses. When will my constituents get better bus services?
Ms Ghani
Stockton-on-Tees Borough Council receives almost £89,000 of bus service operators grant to support local bus services, and £75.5 million from the Government’s transforming cities fund has also been secured to improve local connectivity to Tees valley. We have not heard from Stockton-on-Tees Borough Council or the Tees Valley Combined Authority about using the extra powers available to them under the Bus Services Act 2017 to improve services and work more closely with local bus companies. If they were to get in touch, we could also let them know about the world of improvements they could deliver for the hon. Gentleman’s constituents.
British Bioethanol Industry
Debate between Nusrat Ghani and Paul Williams(5 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
It is a pleasure to serve under your chairmanship, Mr Gapes, and I must get it out into the open that I am not the Minister responsible for roads, and neither have I been promoted to that position. Unfortunately, the Minister of State, Department for Transport, (Jesse Norman) is taking part in a debate on a statutory instrument, and I am doing my best to step in. I know it was a bit of a disappointment to one of our colleagues to find that I am not a he but a she.
I congratulate the hon. Member for Scunthorpe (Nic Dakin) on securing this debate. Low-carbon fuels such as bioethanol play, and will continue to play, an important role in meeting the UK’s carbon budgets. During this debate, and in parliamentary questions, Members with constituencies in and around Hull and Teesside have made clear the wider economic benefits of UK bioethanol production, and the environmental benefits of deploying bioethanol as a transport fuel. Some may consider that to be a niche matter, but the contributions we have heard today show that it is a nationwide issue.
I had not realised that there was a Teesside collective, but now I see how powerful that force is. I thank the hon. Members for Stockton North (Alex Cunningham), for Sedgefield (Phil Wilson), for Kingston upon Hull West and Hessle (Emma Hardy) and for Redcar (Anna Turley), and my hon. Friend the Member for Cleethorpes (Martin Vickers) for their passionate contributions and representations on behalf of the bioethanol industry and their constituencies. I believe that I will cover many of the issues that they raised, but if I do not address them all, the Minister of State will no doubt respond in writing.
The Government understand the potential benefits of the bioethanol sector, and we stressed the benefits of E10 when advancing draft legislation last year—legislation that doubled targets for the supply of renewable fuel between 2018 and 2020. That provided space for a roll-out of E10 should suppliers choose to deploy it. Concerns about not having a clear legal mandate for E10 are well understood by the Department. In September last year, we concluded a call for evidence on whether and how E10 might be introduced in the UK, and if introduced, how it could be done in a way that addresses the concerns of retailers, fuel suppliers and motorists. The Department has now analysed the responses to that consultation and hopes to publish the Government’s response soon. We are continuing to work with the bioethanol industry. Indeed, I understand that the Minister of State hopes soon to meet the hon. Member for Scunthorpe and representatives from the bioethanol industry, and I believe that a date for that has been set in the diary.
Dr Paul Williams
The Minister said that the Government hope to publish a response to the consultation soon, but that is not particularly helpful for people working in the industry who have a mothballed plant and are waiting for a Government decision on the future of their industry. Is there any possibility of the Minister being a little more specific about what “soon” might mean?
Ms Ghani
The hon. Gentleman spoke passionately about the Ensus plant in Wilton in his constituency. I cannot make that commitment here and now, but a meeting is due to take place—it is in the diary—and there will be further clarification after that. As has been said, that meeting will be open to all those who wish to attend. I cannot give that confirmation right now, but we are committed to working with the sector to ensure that the plants are open and running as soon as they can be.
Plant closures were discussed throughout the debate. The hon. Member for Kingston upon Hull West and Hessle made a very passionate contribution, but I must take her up on one point. I know that she wants this debate to be as respectful as possible, because we do not want to reflect what is happening in the main Chamber on all occasions. She mentioned a Government promise, but I would argue that it was never a promise—we must be clear if something is a Government intention and how that should be perceived, as it is very different from the word “promise”. We must ensure that we are honest in our contributions.
Ms Ghani
An interpretation of how a Government may respond and a promise are two very different things. The Department is working closely with the sector and will do what it can to support it. We must ensure that we understand the difference between what is and is not a promise.
We heard passionate contributions about the bioethanol sector and businesses in Members’ constituencies, and the halting of bioethanol production at Vivergo Fuels and Ensus plants last year is saddening and regrettable for all those impacted. I understand the frustration of those calling on the Government to act quickly to mandate the introduction of E10.
Dr Paul Williams
Does the Minister accept that the sole reason for the closure of the Vivergo plant and the halting of production at Ensus was the Government’s procrastination?
Ms Ghani
Indeed; that is why the consultation took place. As the hon. Gentleman knows, he can take up those issues further with the Minister of State, which is why we need to ensure that when we respond, we take into account all the issues raised in this debate.
The taskforce report to Government noted not only the potential benefits of E10 in helping the UK to meet our renewable energy targets, but the barriers and risks associated with its introduction, not least in respect of ensuring consumer acceptance. It is clear that UK suppliers, including of bioethanol, have made great progress in ensuring that renewable fuel delivers reductions in greenhouse gas emissions.
Since the RTFO was introduced in 2008, savings in greenhouse gas emissions have increased significantly from 46% to 70% in 2014-15. Latest data suggest that current biofuels provide an average 71% reduction in greenhouse gas emissions even when land use change impacts are included, but it has always been essential to evolve the policy on biofuel. That way, we maintain the integrity of the schemes that promote its use, such as the RTFO.
Following the work of the taskforce and building on the success of the RTFO, in September 2017, the Government set out a 15-year strategy for renewable transport fuels. The strategy established an investment platform to develop sustainable advanced fuels for automotive, aviation and road freight. I am proud to say that, as part of our strategy for renewable fuels, in March 2018, regulations were agreed that make the UK the first to set targets for renewables in transport beyond 2020, all the way to 2032; and the first and only country to set development fuel targets to drive a market for advanced low carbon fuels. For the first time, we have made aviation fuels eligible for reward under the RTFO. Our 15-year strategy for renewable transport fuels is designed to maximise the industrial opportunities to be gained for the UK while maintaining public confidence in the value of renewable fuels.
The hon. Member for Scunthorpe has previously shown support for increased biofuel supply targets in the 2018 regulations. He has also been clear in calling for a mandated introduction of E10. As I said, I am not in a position here and now to update colleagues on when we will publish a response to last year’s consultation on whether and how to introduce E10, but E10 is our main focus in the biofuels policy area. We are working hard to publish the Government response as soon as possible.
Dr Paul Williams
I understand that the Minister is not in a position today to tell us when the response will be published, but if I were the owner of a mothballed plant, probably trying to persuade my bank and investors, I would need some kind of certainty. Would the Minister pledge to write to us in the next week to give us a date on which the consultation response will be published, just to help the businesses that need certainty to make future decisions?
Ms Ghani
The hon. Gentleman once again champions the employers in his constituency very well. As I said, I do not believe that the time it has taken to ensure we make the right decision on E10 via the consultation is the only reason those businesses are in a challenging position. As I mentioned, a meeting is due to take place; that meeting will be the best time and place for a letter to be forwarded. The hon. Gentleman will be in the best place to challenge the Minister of State and get the responses he needs.
Ms Ghani
The Government will be looking at all issues to ensure that, if a roll-out is suggested, it is an option favourable to those pulling into petrol stations. That is why it is interesting to learn what has happened in Europe. In France, I believe, the roll-out was more underwhelming than had been expected and in Germany it did not deliver the impacts that had been hoped, so it is important that we look at this closely.
Dr Paul Williams
Is the Government’s view that they need to mandate the roll-out or that the industry should lead the roll-out itself, without a Government mandate?
Ms Ghani
The hon. Gentleman is trying to tease out a statement from me, when he knows that he has to wait for the consultation to get the response that he wants. I thank him for his tricky intervention, but he will have to wait for the consultation response to get the answer.
The Government agree that the aim must be to reduce emissions and that low carbon fuels must play a part. The regulations made last year introduced a greenhouse gas reduction obligation on suppliers and incentives for the development of fuels capable of delivering higher greenhouse gas emissions reductions. These allow us to reward low carbon fuels because of the emissions reductions they deliver. We have also made £20 million of match capital funding available under the future fuels for freight and flight competition. In the wider context, the Government have recently published two major strategies focused on combating climate change and improving the UK’s air quality. Our Road to Zero strategy sets out a clear pathway to zero emissions vehicles by 2050, and this week we have published our clean air strategy. The pathway is not just about driver behaviour and electrification. Low-carbon fuels will continue to play a vital role in reducing greenhouse gas emissions from the vehicle fleet.
The renewable transport fuel obligation, as amended last year, is expected to save nearly 85 million tonnes of CO2 over the 15-year period from 2018, which represents around a third of transport’s projected contribution to UK carbon budget savings during the 2020s. In achieving those savings there is an opportunity to increase the amount of bioethanol in petrol, from 5% today up to 10%.
Oral Answers to Questions
Debate between Nusrat Ghani and Paul Williams(5 years, 11 months ago)
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The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
The bus market outside London is deregulated, and decisions regarding service provision are primarily a commercial matter for bus operators. Decisions on subsidised bus services are a matter for individual English local authorities, in the light of their own spending priorities. The Government paid out some £250 million last year to support bus services in England through the bus subsidy operators grant. The Bus Services Act 2017 introduced new powers for local authorities and operators to work together to improve local bus services and increase passenger numbers.
Dr Williams
Arriva has cut the bus service in Hartburn on which my constituents rely, replacing a doorstep service with what is now a 20-minute walk for older people. I have written to the Tees Valley combined authority about it, but what is the Government’s position on communities that are isolated by public transport cuts?
Ms Ghani
The hon. Gentleman has raised a valid point, but local authorities are responsible for providing local bus services, and we expect them to work with local operators, Members of Parliament and local communities to do that. Of the £250 million grant that I mentioned earlier, £40 million is paid directly to local authorities to improve bus services in their areas, including the service to which the hon. Gentleman has referred. I believe that the Department paid £88,000 last year to Stockton-on-Tees Borough Council, which I am sure he will welcome.