(5 days, 20 hours ago)
Commons ChamberHappy birthday, Mr Speaker, and despite what has been said by colleagues on the Benches in front of me, you do not look a day over 75. [Laughter.]
While the Minister is claiming to save the world by closing down the oil and gas industry in the United Kingdom, Centrica has signed a £20 billion deal with Norway to supply gas to the United Kingdom. How does he justify the loss of British jobs, giving away tax revenue and putting growth in jeopardy by closing down an industry that is still much needed?
The right hon. Gentleman is wrong on two fronts. First, we are not closing down oil and gas. It will continue to play a part for many years to come, but there is a transition under way, as there has been for many years. The truth of the matter is that, while we want to create the jobs that come next, he turns his face against all the investment in what those jobs will be, which means that, under his plan, the transition will not lead to a future for that incredibly skilled workforce. We are determined to do it differently, so that there are good, well-paid jobs in the future and a secure energy mix for decades to come.
(5 days, 20 hours ago)
Commons ChamberMy hon. Friend is so right about this. People in Scotland will be looking at these announcements and saying, “Why isn’t it us who are benefiting from this? Why are we not even in the race?” We have lots of Members saying that they want their area to benefit, yet the Scottish Government and the SNP are saying that they want no part of it, and no part of those jobs. That makes no sense.
I also welcome—[Interruption.] It is very unusual for me to welcome anything from the Secretary of State but I welcome this announcement, because nuclear is an important element in providing the baseload for electricity across the United Kingdom. He mentioned delivery five times in his statement, but this is an announcement not a delivery, and there is a period when we will still need the baseload to be provided. Can he tell us how he intends to ensure that the baseload is provided in that interim period, and what discussions he has had with the Economy Minister in Northern Ireland about the suitability of SMRs for supply in Northern Ireland?
The right hon. Gentleman and I have been discussing these energy issues for about 17 years since he was the spokesperson on this, and agreement is rare between us, so I really welcome what he says. I would say to him that these are the steps we have to go through to deliver, and they are incredibly important. To reassure him on his point about the Economy Minister in Northern Ireland, my hon. Friend the Energy Minister will be meeting them next week. We believe that this can benefit all four nations of the United Kingdom, and it is 100% our intention to make that happen.
(1 month, 2 weeks ago)
Commons ChamberI will take that interesting point on surge protection away and speak to my colleagues in the Ministry of Housing, Communities and Local Government.
On the wider point around inertia, as the system changes, there is a constant balancing job for the National Energy System Operator to make sure that we design a system that is resilient. We are deploying technologies to ensure that the system is resilient and there is sufficient inertia by procuring the alternative technologies that my hon. Friend the Member for Rugby (John Slinger) referenced, but we will keep it under constant review.
May I assure the House that, not wishing to inflict a by-election on the citizens of East Antrim, I will not be running any marathons—not now or at any other time in future?
The Minister has rightly said that the cause of the outage in Spain is yet to be identified, but the fact is that it is linked to 53% of electricity on that day being generated from renewable sources. That should be a sobering warning to all in this House who have been championing the decarbonisation of electricity and the net zero policy.
I am glad that there is inertia built into the system, but the Minister has already accepted that that increases the cost of electricity every week because we have to build a new network to deal with the spikes in electricity; build battery storage, which increases the cost of electricity; and keep gas generators idling over expensively, the cost of which is added to consumer bills, in order to bring them on grid when the wind drops.
I know that the Minister has to defend the policy of his boss that we will get cheaper electricity, even though there is no evidence of that, but will he accept that building inertia into the system will add considerably to consumers’ bills?
I am afraid that I do not accept anything that the right hon. Gentleman has just said. He said in his first breath that it was right to wait for the outcomes of an investigation and then prejudged that investigation with his own conclusions. I want to wait for some evidence from the authorities on that.
The right hon. Gentleman is also wrong about the cost. People often forget that gas in our electricity system does not just appear out of thin air; it comes with a cost. It comes with the cost of building new gas power stations in the first place, which we would have to do if we did not move gas off the system. It also comes with the volatility of being an internationally traded commodity—all our constituents are still paying the price of the energy crisis of a number of years ago. We will have to build infrastructure. If we were not building clean power infrastructure, the grid would still be critical because we have to get electricity to people’s houses. It is important to say that there are no zero-cost options here. We are investing now in a clean power system that delivers considerably cheaper power in the long term.
(1 month, 2 weeks ago)
Commons ChamberWe are aware of issues that we have had with ECO4 and the Great British insulation scheme. If constituents have been affected, they should have received a letter from Ofgem. They should be able to contact their installer, who is obliged to fix the work, and there is a clear redress mechanism. There is a wider point: we know that the system for quality assurance and consumer redress is not fit for purpose and we are determined to overhaul it.
In the 1970s, global warmists wanted to put black dust on the Arctic to block the sun. Now the Minister wants to put black dust on clouds to block the sun again. Is his plan not bonkers? £50 million of taxpayer’s money has been spent, which will only put up energy prices even further.
This is like conspiracy theories gone mad. I feel like we have entered a whacky world. Let us keep our eyes on the prize. As a country, we are vulnerable because of our exposure to fossil fuels. This Government have one mission alone: to get clean, home-grown power, so that we take back control.
(2 months, 3 weeks ago)
Commons ChamberWill the Minister accept that many people listening to this will see it as evading rather than addressing the issue? We can have the Procurement Act, the taskforce and the letters to all the major companies, but the fact remains that most companies will seek financial assistance for the kinds of projects that they wish to do. If credible evidence is discovered that supply chains have been contaminated by slavery, the easy way of stopping purchases from suppliers who act in that way will be to say, “You’re not getting any support.”
I do not disagree with that at all, and that is possible. Nothing forces Great British Energy, or any other company, to take investment from any individual or company. They can choose not to do so for a whole variety of reasons, and if one of those reasons is credible evidence of modern slavery in the supply chain, I would fully expect them not to invest in those companies. That is exactly what we are talking about today. The point is that that conversation must be broader than one just about Great British Energy. It is about wider supply chains and companies right across the economy, and that is what we are hoping to tackle.
In parallel, although the energy sector is particularly important to me, I want to work across Government to outline a comprehensive plan to tackle modern slavery, which is a question right across the economy. Rather than dealing with the problem on a company-by-company basis, we must look to do so more broadly. To drive forward that work, I confirm that in the coming weeks I will convene cross-departmental ministerial meetings involving the Department for Business and Trade, the Home Office, the Foreign, Commonwealth and Development Office and my Department to discuss how we can accelerate work across Government on this really important issue.
I understand the argument that my hon. Friend is making, but the issues she rightly highlights, as other Members have, go much wider than Great British Energy, which the Bill sets up as a publicly owned energy company. Those issues are about the wider economy and investment across our supply chains.
I need to close. I am sorry.
In part, we are setting up Great British Energy because we want to deliver home-grown supply chains and an industrial strategy, in spite of the Conservative party having completely failed to deliver that for 14 years—in fact, it had a complete ignorance of how to build supply chains. Had it delivered on some of the supply chains in this country, we might not have to import so much. [Interruption.] Opposition Members can shout all they want; they know that they failed on this matter, and we are picking up the pieces.
For those Members who were in the debate, I want to respond to the points raised, in particular in the powerful speech made by my hon. Friend the Member for Rotherham (Sarah Champion). On her point about how widespread the problem of forced labour is, that underlines why a piecemeal approach, legislating on individual companies here and there, is not the right one. We need to work across Government to tackle the problem throughout the economy. She asked for clarity on some of the points made. She is right to reiterate the point that I intend to pull together Ministers from across Government, including the Foreign Office, the Home Office, the Department for Business and Trade and my Department, to look at how we can collectively tackle the issue. There will be a designated leader within Great British Energy to drive this work forward. We will utilise the debarment list.
More broadly, we fully expect Great British Energy to do everything in its power under the relevant guidance and legislation to remove any instances of forced labour from supply chains. GBE must not approve the use of products from companies that may be linked to forced labour.
This is an important debate on a Bill that was in our manifesto. It delivers the first new national publicly-owned energy generation company in 75 years. It is backed by the British public, and it will deliver jobs and investment all over the country. It will deliver the deployment of clean power. We will tackle the supply chains to ensure that jobs come to this country and that we tackle the scourge of modern slavery, not just through GBE but across the economy. That is our commitment. I urge Members to support the Government’s position. In the 15 seconds I have left, I reiterate the point I made earlier: I am willing to work with Members across the House to tackle this fundamental issue, which is of extreme importance across the Government.
(4 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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It sounds very much like the hon. Member is making the case for an industrial strategy that ensures that we can match demand with supply. That approach was particularly missing from the previous Government.
Almost on a weekly basis, we are lectured by the net zero-obsessed Secretary of State that the race for renewables is necessary in order to give this country a secure future supply of energy. Yet the renewables industry is increasingly dependent on Chinese technology, and on rare earth metals, of which the Chinese control 70%, so we are placing our future energy supply in the hands of a dictatorship that has proved itself willing to use such infrastructure to blackmail the countries in which it is based. Should we not consider the supply of fossil fuels in this country—decades of oil and gas—which we could use without interference from others?
We believe that the best route to energy security is through our clean power by 2030 mission and further investment in renewables. That remains our stance.
(4 months ago)
Commons ChamberMy hon. Friend’s point about investor confidence is important. Investors lost all confidence in this country under the previous Government; not quite knowing who was going to be in No. 10 or No. 11 at any given moment certainly did not help investor confidence. We are building back that confidence, and have already seen tens of billions of pounds in investment since we came to power, and 70,000 new jobs.
It matters that this country takes a leadership role on climate, because the transition that we want to deliver here is also being delivered right across the world. The country with the fastest transition to clean power last year was China. In some cases, Members of this Parliament are trying to row back on our net zero commitments. We are determined to double down on those commitments, because that is the best way to deliver stability and energy security, bring down bills and create the industrial future and jobs that this country needs.
Hardly a day passes in this place when Ministers do not tell us how broke the country is, yet here we have a Minister who cannot give a commitment to extracting the liquid gold that lies under this country, although it could generate jobs and tax revenue, give us energy security and reduce the import bill. Is it not a fact that the court judgment has driven a hole through the growth strategy, because due to the legal targets for CO2 reduction that we have set, every major infrastructure project in this country will be legally challengeable, and could be turned down on the basis that it generates CO2?
The reason we are in this situation is that the Court ruled that the previous Government made an unlawful decision by not taking into account the judgment of the Supreme Court. That is not me saying that from a policy perspective; it is the Court saying that, and we are now moving as quickly as possible to put in place a process that gives confidence to industry and allows applications to come forward. We have said that oil and gas will continue to play an important role for many years to come. We will not revoke existing licences, and therefore it is open for applications for projects to come forward, which will be considered on their individual merits.
However, the right hon. Gentleman and I will always disagree on the fundamental point that tackling climate change is in all our interests. Right around the world, we see the impact of not tackling climate change. It is a clear and present danger to our country and our national security, and we will tackle it.
(4 months ago)
Commons ChamberMy hon. Friend is right that this is a good deal, in the short term, to ensure security of supply into the early-2030s, which was key to NESO’s advice on the basis of security of supply. In the process, however, we have sought to halve the subsidy that Drax was given by the previous Government and deliver on the sustainability criteria, taking that from 70% to 100%. This is a good deal for the people of this country.
My hon. Friend also touched on the important work we need to do in the broader energy space to deliver energy security. That is why clean power 2030—our sprint to deliver decarbonised power—is so important, delivering good jobs in supply chains across the country.
This statement should be a warning to all those across the House who are cheerleaders for renewable energy. Let us not forget that, in 2010, Drax power station was the poster boy for green energy policy. Of course, it turned out that instead of green energy, it has produced more CO2. We have chopped down natural habitat 3,000 miles away to bring it and burn it in a power station in England, and consumers pay the grand total of £1,000 million a year for the pleasure of doing so.
The Government have not learnt from that lesson. Only this year, we have had a similar mistake made with wind energy, where the Government have given a subsidy six times what the price of gas would be. Will we find a Minister in 15 years’ time standing again at the Dispatch Box to apologise for a waste of public money, high electricity prices and environmental disaster?
After an urgent question and a statement, I hope that I will not still be standing here in 15 years’ time, and I suspect the House will support that. Let me be really clear. I do not remember Drax being the poster child for the clean energy transition. I have outlined clearly why this decision is important in terms of energy security, but we wish that we as a Government had had more options. Unfortunately, those options were not there, so we have made the best of a difficult situation to get an incredibly good deal that delivers value for money, improves sustainability and delivers on energy security. In the 2030s, I want to see our clean power system delivering cheaper bills and industrial manufacturing jobs across the country. I hope that, in 15 years, the right hon. Member and I will have a conversation about how that is delivering for our constituents.
(4 months, 1 week ago)
Commons ChamberI thank the right hon. Gentleman for reminding us about our economic inheritance. We are reaching out to organisations and stakeholders across the country—industry, charities and third sector organisations—to feed into our warm homes plan, so we are keen to hear ideas. We are conscious that we have an ambitious programme and we need to do a big scaling-up of home upgrades across the country, so we are definitely in the market for hearing from and reaching out to organisations that can come up with ideas.
Is it not a fact that, regardless of how much money is put into a warm homes scheme, social tariffs or whatever, consumers can never be insulated against the massive cost of the mad net zero policy that will require thousands of new turbines, acres of solar farms and miles of new transmission lines, all at a cost to the consumer? How on earth does the Minister believe that we will deal with the issue of fuel poverty in this country with that cost?
I will say to the right hon. Gentleman that at the moment, families are not insulated from fossil fuel markets. We have seen one of the worst energy crises, which has had a huge impact on the cost of living. The status quo is not tenable. We already have record-high energy prices and the only way that we are going to bear down on that is through clean power. The alternative is to do nothing—but we have seen the impact of doing nothing over the last 14 years and consumers and constituents across the country are the ones being impacted. We will absolutely drive forward with clean power by 2030 because that is our route to providing an energy system that delivers energy security and that can deliver financial security.
(5 months ago)
Commons ChamberI take issue with two of those points. First, in the past decade, 100,000 jobs have already been lost from the oil and gas industry, and that happened under a Government whom the hon. Gentleman supported. The industry is changing. We are putting in place a robust set of plans to help the workforce into the jobs of the future, rather than burying our heads in the sand and pretending that the basin in the North sea is not super-mature. Secondly, even if we were to extract more gas from our continental shelf, given that it is traded on an international market, and the pricing is set not by us but by the international market, we would continue to pay more for it, whether or not it came from the North sea, so that would not deal with the pricing issue reflected in the hon. Gentleman’s question.
Did the Minister assume that after the Government had robbed pensioners of the winter fuel allowance, gas consumption would go down, or are this Government so obsessed with their net zero policy that they do not really care whether we have enough gas to meet our energy needs? Does the Minister not realise that being reliant on foreign suppliers will push up fuel prices in the UK? How does he justify the fact that under his net zero policy, the Government are ignoring the fact that we have 150 years-worth of gas naturally stored in the United Kingdom, and will not use it?
Let me repeat what I said a moment ago: even if we were to take much more gas from our continental shelf, it would still be traded on the international market. The reason why the right hon. Gentleman’s constituents and mine still face a cost of living crisis is our exposure to petrostates and dictators around the world. He would clearly like to expose us to them even more, and I think that the Conservatives would support him in that, but we want to get ourselves off the rollercoaster of volatile fossil fuels and deliver a clean power system that is cheaper in the long run and delivers energy security. That is what is best for consumers, and for all our constituents.