City Deal Funding (Aberdeen)

Debate between Stewart Malcolm McDonald and Callum McCaig

Tuesday 30th June 2015 Commons Chamber

[Callum McCaig]

I welcome that intervention. It may not have been heard by those in the Chamber, but while my hon. Friend the Member for Aberdeen North was talking my hon. Friend the Member for Banff and Buchan (Dr Whiteford) pointed out that her constituency is perhaps unique for a mainland constituency in not having a single mile of railtrack. That is quite remarkable, and I know that Aberdeenshire City Council is working in partnership with Nestrans on this issue for the future. It is something that could be developed through this process.

Councillor Jenny Laing, a Labour member and leader of Aberdeen City Council said:

“The proposals we have outlined will ensure the prosperity of our city and NE Scotland for decades to come by anchoring an economy of global significance for the benefit of the UK as a whole.”

This has the backing of Labour party in Aberdeen, and indeed of all parties in Aberdeen, and I think it has unanimous support in Aberdeenshire as well. This is a cross-party issue, although as a result of the success of the Scottish National party, only SNP Members from the north-east of Scotland are here to back it. If other parties were present, I am sure they would be adding to the calls for this, such is the importance of it to our region.

The oil and gas industry is critical to Aberdeen and the north-east of Scotland, but Aberdeen and our region is far more than oil and gas. There are proposals, subject to legal challenge by a certain presidential candidate, for a wind farm in Aberdeen bay to test the new and innovative technologies in offshore wind. I hope that that will go ahead, as there are huge benefits to be gained from it.

Aberdeen is also leading the way in the development of hydrogen technology. We now have the largest fleet of hydrogen buses anywhere in Europe, thanks to the support of my right hon. Friend the Member for Gordon (Alex Salmond) and the efforts of the Scottish Government, the European Union and Aberdeen City Council. It is a team effort.

Yes, we are an energy city and an energy region—but we are certainly more than just energy. Life sciences and food and drink are absolutely world class in the corner of the world that we call home. They, too, stand to benefit from significant investment in the infrastructure—physical and digital, and in the housing that my hon. Friend the Member for Aberdeen North talked about—and, above all, in the skills we require from our universities to build the capacity to allow these industries to flourish.

[Stewart McDonald (Glasgow South) (SNP)]

My hon. Friend makes an important point about infrastructure. One concern that I and my Glasgow colleagues have is about the devolution of powers to cities such as Manchester. That is, of course, to be welcomed, but it presents us with significant challenges. Does he agree that one way to help us meet those challenges would be for the Government to say unequivocally that HS2 will come to Scotland?

[Callum McCaig]

Aberdeen stands to lose out to a degree when it comes to HS2, but as part of team Scotland, I would say that there is a requirement to bring it to the central belt of Scotland. If that is to happen, there needs to be protection for Aberdeen— and, I am sure, for Inverness—given the potential for them to lose out. That would come in the form of landing slots and access to hub airports. It will never be economical to put high-speed rail up to the north-east of Scotland or the highlands, but we need connectivity to London and to the wider world through our airports.

Beyond the city deal and the physical infrastructure is the investment in skills and the utilisation of our world-class universities. Aberdeen University is a proud and ancient seat of learning, and Robert Gordon University is equally proud, if slightly younger. The two of them together make an immense contribution. We have some of the brightest and most talented young people from across the globe coming to study in our universities because of the contribution they make and the expertise they have. As I mentioned, it is not just in oil and gas; the bio-science and medical sciences provided in our universities are absolutely leading in terms of world-class research.

There are proposals for university enterprise zones elsewhere in the country. Part of the deal would be to allow that to happen through the combination of Aberdeen University and Robert Gordon University and by bringing business and the universities closer together, giving businesses incentives to invest in the research and development in which our universities can take part. That is an exciting development which will allow our universities to make a far greater contribution to the economy than the significant contribution that they already make.

Throughout my lifetime, Aberdeen has prided itself on being Europe’s oil and gas capital, and that has contributed immensely to the wealth of our city. The investment that it should, perhaps, have attracted in previous decades was absent, but let us be forward-looking. Aberdeen has a great future as an oil and gas city—indeed, as a global energy hub. Renewable energy will play a part, as, I hope, will hydrogen, but, above all, we will remain a key hub for oil and gas.

Much of the work that is done in Aberdeen now has little relevance to the North sea. The city is home to engineers who assess projects from the gulf of Mexico to Brazil, and from the coast of Africa to Kazakhstan and the South China sea. It is truly a global hub. The clusters of expertise, experience and knowledge that exist in our city and our region are absolutely world class. But—and there is a but—there is no guarantee that we will continue in that role. We need investment now, because otherwise we may face the prospect of losing the goose that lays the golden eggs.

Internationalisation is a key element. We need support for our exports, and support to enable our industries to find new markets. Many have done so already, but a huge number of smaller companies that could save huge amounts of money, in terms of oil and gas production, need to be helped to take their innovative products to further markets overseas. Investment in broadband is important in that context. The technology that handles seismic data, or project plans, that are produced from offices in Aberdeen is incredibly data-hungry. Huge band widths are required to allow information of such a size to be communicated to markets throughout the world. That investment will potentially provide far greater work for companies based in Aberdeen and the surrounding region.

The mood music that we hear from both councils, and from the Scottish and United Kingdom Governments, is very welcome. Clearly there is a job to be done, but I hope that convincing the Minister of the importance of the deal will help that work to be achieved. We realise that negotiation between the councils will be necessary at various levels, but it is incumbent on us, as representatives of the area, to press the case. The deal is vital to our region and vital to the economy, and it has the potential to deliver huge dividends not just to our area, but to the United Kingdom as a whole.

Climate Change

Debate between Stewart Malcolm McDonald and Callum McCaig

Wednesday 10th June 2015 Commons Chamber

[Callum McCaig (Aberdeen South) (SNP)]

I, too, would like to congratulate the Secretary of State on her promotion. I look forward to working with her in this role, and I hope that the majority of our discussions will take place in a constructive manner, although that might not always be the case. I also want to thank Labour colleagues for securing the debate.

Climate change is clearly a matter of great importance to those in the Chamber and in the constituencies that we represent, as well as to the globe on which we reside. We are facing an historic challenge, and it is one by which this generation of political leaders at home and abroad will be judged. The conference in Paris will be a seminal moment, and it is incumbent on us to do everything we can at home to enable us to act responsibly at the conference and show leadership to the world on what needs to be done. The effects of climate change will be felt at home and abroad, and its mitigation needs to be addressed at international level, at national level and within our local communities. Indeed, some of the actions taken in local communities could have the greatest impact on delivering what is required.

Turning to competency, the Scottish Parliament has a climate change Minister and has introduced climate change legislation that in many ways leads the world. A curious quirk demonstrates how this issue has grown in importance. When the Scottish Parliament was set up, it was those matters that were not spelled out in black and white in the Scotland Act 1998 that were to be retained in Westminster. I am not convinced that, were we to go through that process again, this place would decide that it was appropriate to devolve the issue of climate change to Scotland, but I am glad that it was devolved. That signifies just how important climate change has become in the intervening 18 years or so.

I mentioned the fact that the Scottish climate change legislation was world-leading. We have made a legally binding commitment to reduce carbon emissions by 42% by 2020, and by 80% by 2050. The figures for 2013 were published yesterday, and they show that we are three quarters of the way towards achieving our 2020 target. There has been a 34.3% reduction in our carbon emissions since 1990, which is higher than the UK percentage and among the best in Europe. Those targets are tough, and owing to some technical changes, they might not have been met year on year, but had they not been put in place, the changes in Scottish society and the Scottish economy that have enabled those reductions would not have taken place.

Action relating to renewable energy and fuel efficiency has largely been behind that drive. I will talk about renewables in a moment. The investment in fuel efficiency in people’s homes has been hugely important. Levels of fuel poverty in Scotland are very high, largely due to the historical inadequacies of the building stock. It takes more fuel to heat the buildings, which obviously has a societal impact, in that people cannot afford to heat them. One in three houses has received support relating to fuel efficiency. That has helped to reduce emissions and, above all, has had the short-term human impact of reducing fuel poverty in Scotland.

Aileen McLeod, the Scottish Minister for Environment, Climate Change and Land Reform, has written to the Secretary of State about a joint approach to such challenges. I hope that that will be acted on—there has been mention of discussions with the devolved Administrations. There are cross-cutting competencies and we need to be singing from the same hymn sheet on them.

I am pleased to be joined in the Chamber by my hon. Friend the Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron), who is the SNP spokesperson for climate justice. One of the sad ironies of climate change is that those countries that have contributed least to carbon emissions will pay the biggest price as the changes to our climate come into being. We have a moral duty to act on that and the climate justice angle will I am sure be raised by my hon. Friend in the Chamber and in this Parliament to great effect.

Renewable energy has been a major part of the progress made in Scotland. We are now at the stage where nearly half of our electricity demand is met by renewable sources. A large part of that is from onshore wind, which has delivered large reductions in carbon emissions and enabled diversification in the economy of Scotland. My hon. Friend the Member for Na h-Eileanan an Iar (Mr MacNeil)—I am from Aberdeen, where Gaelic is not spoken, so I cannot pronounce his constituency name very well—has said that removing the subsidies prematurely has the potential to damage the economy of Scotland severely, to damage our ability to meet the targets that we have set in Scotland and to damage the United Kingdom targets.

I understand the Government’s mandate to remove subsidies, but I do not believe that that mandate stretches to Scotland in the same manner. The planning aspects are clearly different. I hope that in the consultation to be undertaken with the Scottish Government nothing to do with how that might be progressed will be left off the table. An important factor is that there are not the same political difficulties with onshore wind in Scotland, although there are clearly some. Significant investment in the pipeline could also be damaged and, if there are going to be problems, grace periods need to be brought in.

In work commissioned by the London School of Economics it was suggested that the No. 1 priority for tackling climate change is investor confidence in the low-carbon economy. Changing the goalposts for onshore wind will damage such confidence. As has been said from the Labour Benches, that will damage not only onshore wind, but the entire range of renewable technologies.

[Stewart McDonald]

My hon. Friend is making a very reasonable speech. Does he share my frustration, however, that a community-led project in my constituency, the Castlemilk and Carmunnock wind park trust, which was set up by local people to reap the financial rewards of renewable energy, has had a horse and coach driven through it by a Labour-run council, depriving the area of more than £1 million since its inception? Surely communities should be empowered to deal with such things.

[Callum McCaig]

That is a disappointing scenario and I share my hon. Friend’s frustration. Onshore wind has the potential to provide a win-win situation for communities to see investment that they might not otherwise have dreamed of—though that might not be the case in Glasgow—as well as a reduction in our carbon emissions.

Scotland is doing well with carbon reduction. Given the nature of our geography and the potential renewable resources in our nation, we are willing, able and well disposed to do a large part of the carbon reduction heavy lifting on behalf of the United Kingdom. However, that can only be done in partnership while the required powers rest in this place. I reiterate the need for that detailed and meaningful consultation with the Scottish Government.

I was pleased to hear the Secretary of State mention innovation, which will be required for a number of the renewable technologies that will play their part in meeting our climate change obligations. Offshore wind has the potential to deal with that; specific considerations in Scotland make it slightly more difficult there than in other places, owing to the depth of the water, but the resource there is unparalleled. We need the ability, through the contracts for difference mechanisms, to enable offshore wind in Scotland to take off and take up the heavy lifting on carbon reduction.

Clearly, there is a requirement for base-load, and I was pleased to hear the Secretary of State mention carbon capture and storage. I gently correct her by saying that Peterhead is not Aberdeen—it is a fair while up the road and the differences are stark, both for those resident in Aberdeen and those resident in Peterhead; we are friendly but competitive. CCS, too, has the potential to be transformational in how electricity generation and heat generation can be decarbonated.

Time is clearly of the essence, both in this Chamber and, more pressingly, as the temperatures—