Budget Resolutions Debate

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Department: HM Treasury
Tuesday 12th March 2024

(1 month, 3 weeks ago)

Commons Chamber
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Ronnie Cowan Portrait Ronnie Cowan (Inverclyde) (SNP)
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I start with a confession, Madam Deputy Speaker: this speech may be familiar to anyone who heard my Budget speech last year, because it is pretty much the same one. The reason is that despite a year passing, the UK Government are no further forward—another Budget, another Red Book. I note that this year, under the heading “Agriculture” in paragraph 4.24 of the Red Book, the Government touch upon drainage boards, and investment in water and flood management. I plead with them: manage it as nature would. Trap the water in the hills. Promote capture and slow release. Encourage and support councils to plant green areas in the appropriate places. Do not think that we can concrete our way through this problem.

In my constituency of Inverclyde, with the help of Clyde Muirshiel park, local farmers and the Yearn Stane project are re-establishing peatland, which will reduce flooding, create an environment for nature to flourish, and be accessible for people to walk and cycle. This is being done by helping nature to do what it does best, and undoing the damage that was caused by draining the land for grouse shooting all those years ago. Under the heading “Green industries”—paragraph 4.51 of the Red Book—the Government are throwing some sizeable chunks of money at lowering carbon emissions, but there are two errors in this rather small section. First, it mentions nuclear as a “critical part” of the Government’s plan to decarbonise power. It is worth noting that building Sizewell C will create 6.24 million tonnes of carbon equivalent CO2; that is one hell of a price to pay for a build that is not needed.

Secondly, if we want to decarbonise our energy sector, stimulate agriculture, reduce plastic waste, reduce landfill, improve our environment and increase agricultural yield, why is there absolutely no mention whatsoever of hemp? This is where my speech starts to sound familiar, but I was told very early in my time here that there is nothing wrong with repetition. I want this Government to help an industry that employs local people, could generate huge profits, pay its taxes to the Exchequer and help to offset the environmental damage that we are doing to our precious planet. That industry would be a win-win-win scenario. What better way to grow an economy and help the local community, if not by creating jobs so that people have a disposable income to spend locally, and benefit the local community and all associated supply chains?

Hemp: the evidence has been available for centuries—indeed, it was promoted and even enforced by King Henry VIII in the 16th century. Back then, a quarter of all arable land was dedicated to growing hemp, but there are still people who walk among us who hear and fear recreational cannabis when we say “hemp”. That is born out of ignorance. The most recent example has to be when the UK Home Office took actions to stop the export of products to the UK from the Jersey-based firm, Jersey Hemp.

Jersey Hemp has worked for three years to ensure it meets every UK Government compliance standard, and the UK Government went behind its back to the Jersey authorities to stop Jersey Hemp operating. After months of legal action in the UK courts, the Home Office has finally admitted that it acted unlawfully in relation to Jersey Hemp. I am limited in what I can say, but no amount of compensation will help Jersey Hemp, which has been wiped out by the actions of the UK Government. I only mention that case because it is symptomatic of the UK Government’s lack of vision and lack of understanding when it comes to the hemp plant.

In the 16th century, hemp production was encouraged to manufacture rope and canvas for the King’s Navy, but now we can make clothing, shoes, biodegradable plastic, insulation panels, food, paper and biofuels. The Government are currently spending billions retrofitting homes through the ECO4 and ECO+ schemes, but they are using products made from petrochemicals, which release harmful VOC—volatile organic compounds— emissions into the air of the buildings. Why not allow local farmers to grow hemp and supply the local contractors with carbon-negative natural fibre alternatives at scale? What would be a better use of public money?

In fact, there are 50,000 known uses for the hemp plant. Finding markets for hemp would not be a problem; growing it is. It will sell, it will be profitable, and the Government could reap the benefit. However, because of the inflexibility of the Proceeds of Crime Act 2002, companies can have their bank accounts seized and assets frozen, and that fear is stopping investment. The ignorance has permeated the stock exchange and, as a result, it has been dismissive of approaches from the business sector and myself.

The Government should be leading the charge, not cowering in the corner. They should be promoting the fact that hemp absorbs 22 tonnes per hectare of atmospheric carbon during its four-month growing cycle, and produces four times the biomass of the same sized area of forest, making it a far more sustainable source material. Hemp does not need pesticides, insecticides or fertiliser to grow in the UK, and it has natural antimicrobial properties, so it passively cleans the air in buildings. Hemp has high capacity for moisture absorption, allowing for a controlled atmosphere within buildings, and hemp construction materials act as a long-term carbon sink. A £60 million investment would create a facility capable of growing 32,000 acres per year. That would sequester over 207,000 tonnes of CO2 per annum: that is the CO2 photosynthesised by the hemp in its four-month growth; it does not include the carbon sequestered into the soil, or the net effect of replacing high embodied carbon products from international supply chains and their emissions. As a bonus for farmers, hemp regenerates the soil it grows in, so it would work well in crop rotation. It increases winter wheat and spring barley yields by 16% to 18% when they follow hemp in rotation, and it cleans groundwater.

The barrier to the industry raising the funding it requires is licensing. To make it a success, the Government only have to open their mind to the reality of what hemp is and distribute licences appropriately. The industry will take care of the rest. Hemp is not a plant for the past; it is a plant that can pave the way to a cleaner, greener future, and its benefits are clear for all to see, if we are prepared to open our eyes and to hear the possibilities. If raising taxes is what it takes—if that is the trigger required—then so be it, but we should not wait too long. It is a year since I made a similar speech, and in that time other countries have been pressing ahead while we are being left behind in our nuclear bunkers.