Infrastructure Bill [Lords]

Tim Yeo Excerpts

Monday 26th January 2015 Commons Chamber

[Amber Rudd]

I thank my hon. Friend for his expression of confidence in our ability to work with our European partners to improve output in the UK and in Europe more widely.

[Mr Tim Yeo (South Suffolk) (Con)]

Is my hon. Friend aware that David MacKay, to whom the hon. Member for Cambridge (Dr Huppert) referred, also reported that carbon emissions from shale gas are lower than those from liquefied natural gas, and that because the most likely effect of developing our shale gas reserves will be to substitute for LNG imports, the direct and immediate effect of allowing shale gas to go ahead will be a reduction in greenhouse gas emissions?

[Amber Rudd]

My hon. Friend is absolutely right: it is a win-win for the UK in both potential economic benefit and reducing our carbon footprint.

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The focus for the House and for the Government this afternoon is to listen to Parliament, to respond to the concerns and reflect on them, and to ensure that no fracking takes place until the wider confidence that is needed is applied in the regulatory framework—not partially, not with exceptions, not for some but not others, but in full, completely and comprehensively. For those reasons, I implore the Government to accept new clause 19 in full, and not to cherry-pick its subsections. If they fail to do so, we will divide the House on new clause 19 and other of our amendments.

[Mr Yeo]

I draw attention to my entry in the Register of Members’ Financial Interests, and in particular to my interests in the energy industry.

I want to contribute briefly on the subject of shale gas and fracking, on which my Committee has reported twice, in 2011 and 2013. Those were two detailed reports involving seven oral evidence sessions, two with Ministers, and visits to Lancashire to look at what Cuadrilla was doing, and to Texas to see an established shale gas industry’s operations. Our conclusions, which were based on a very careful analysis of the evidence, were totally different from those of the Environmental Audit Committee, whose consideration of the matter appears to have been rather briefer. We concluded that fracking is a safe technology from which Britain could benefit substantially by exploiting our shale gas reserves, if indeed those reserves turn out to be significant—something we cannot know without doing a great deal more drilling.

Far from attacking the Government for rushing on this issue—

[Pete Wishart (Perth and North Perthshire) (SNP)]

We will be pushing new clause 9 to a vote this evening to ensure that we have a proper moratorium on fracking. Will the hon. Gentleman and his Conservative party colleagues support us?

[Mr Yeo]

No, I will not support that. A moratorium would not serve Britain’s national interests.

Far from attacking the Government for rushing on this issue, our concern is that they have been going rather slowly. We could speed up the process of encouraging fracking, so that we can establish whether it is indeed a valuable natural resource whose exploitation would be generally for the benefit of consumers and the environment.

[Miss McIntosh]

Does my hon. Friend accept that it is arguably safer to take a cautious approach before proceeding with any fracking licences?

[Mr Yeo]

We should proceed as fast as possible, consistent with environmental safeguards, which the Government recognise to be essential.

Let me deal with this rather curious idea that allowing fracking somehow increases greenhouse gas emissions. It does nothing of the sort. It is common ground between supporters and opponents of fracking that the UK will use a lot of gas in the next 15 to 20 years. Since 2000, we have become extremely dependent on imported gas. By the mid-2020s, perhaps three quarters of our gas will come from abroad, and we will be competing in the Qatar LNG market, for example, with the likes of China and other Asian giants. So, allowing fracking will enable us to replace imports with domestic supplies, which will improve energy security—a very important aim of energy policy. Further, it will actually reduce greenhouse gas emissions because, as David MacKay reported in September 2013, the net greenhouse gas emissions from LNG are higher than those from shale gas.

[Charles Hendry (Wealden) (Con)]

My hon. Friend is talking about the extent to which we are increasingly dependent on imports. By 2030, probably 75% of our gas will be from imports. Does that not make the case for our doing more now on gas storage, as set out in new clauses 10 and 11? It takes more than five years to build such facilities, and our vulnerability is increasing all the time.

[Mr Yeo]

My hon. Friend is exactly right. I was very tempted to sign his new clauses on that point. Improving gas storage would not only greatly improve our energy security, but make it possible for some of the low-carbon, intermittent generating technologies, such as wind and solar, to be used much more widely.

There is no reason to suppose that decreasing our reliance on imports will lead to an increase in gas consumption. Consumers will not suddenly think, “Oh, as we’re not importing gas, we’ll turn the heating up.” It is a completely mistaken notion to think that allowing fracking has such malign consequences.

In any event, emissions in this country are now subject to the carbon budgeting process. It is greatly to the coalition’s credit that it has confirmed the fourth carbon budget. Achieving that rigorous set of targets will absolutely put us on the path to meet the EU target of a 40% reduction in greenhouse gas emissions by 2030. That will be the case whether or not fracking occurs in this country.

My Committee looked very carefully at the environmental and safety concerns. We are satisfied that with the right robust and rigorous regulatory framework, fracking presents no danger to the integrity of the water supply, the health of local residents or the environment generally. The mistakes made by the fracking industry in the US in its early stages can easily be avoided in this country.

[Dr Whitehead]

Does the hon. Gentleman not accept that, according to all the projections produced by the Department of Energy and Climate Change, the amount of gas used between 2020 to 2030 will be substantially less than at present—not none, but substantially less—and that the likely net effect of recovering gas by fracking is that it will be for export, not the domestic market?

[Mr Yeo]

I do not entirely agree. The fall in gas consumption in the UK will not take it below the level at which we require imports. Even if gas consumption goes down, as the hon. Gentleman suggests, we will probably still import gas. For the reason I have just mentioned, if that gas is LNG, using our domestic supplies of shale gas would be beneficial in terms of greenhouse gas emissions.

I note that the environment, health and safety concerns highlighted by the Environmental Audit Committee are not shared by the Environment Agency. I also note that Lancashire county council’s objections relate not to such concerns, but to noise and traffic movements. Those understandable issues arise in all sorts of planning applications, many of which have nothing to do with the energy industry.

[Andrew Miller]

It is worth pointing out that the hon. Gentleman’s arguments about safety are supported by the Royal Academy of Engineering, the Royal Society, the Geological Society and the British Geological Society.

[Mr Yeo]

I am grateful to the hon. Gentleman for that extremely pertinent point.

We have probably all received a great many e-mails on the trespass issue. It is worth pointing out that the coal industry has enjoyed such a right for generations, and there seems to be no reason why it should not be extended to the gas industry.

[Helen Jones]

Will the hon. Gentleman give way?

[Sir Gerald Howarth (Aldershot) (Con)]

Will my hon. Friend give way?

[Mr Yeo]

I should now make progress, because other colleagues wish to speak, but I give way to my hon. Friend.

[Sir Gerald Howarth]

I am concerned about the potential impact of subsidence from fracking. I represented Cannock and Burntwood for nine years, and I saw the effects of subsidence from coal mining. The coal industry did not require planning permission to undermine people’s homes.

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[Mr Yeo]

My hon. Friend makes a very important point. I am glad to have the opportunity to say how welcome he is as a resident in my constituency, where he has recently purchased a house. I assure him that any evidence of subsidence in his property will receive my close personal attention.

That brings me to the subject of earth tremors. When they were experienced in Lancashire, Cuadrilla acted very responsibly by immediately halting its activities while it investigated them. The investigation showed not only that the tremors were so light they could not be felt on the surface, but that they were at a level routinely experienced across the UK every week. The vast majority of such tremors are caused, as my hon. Friend said, by old coal mine works.

On the positive side, in addition to the improvements in energy security there will be a significant improvement in our balance of payments—not that many people seem to worry about the trade balance any more. If, as we hope, UK reserves turn out to be substantial, there will be significant employment opportunities as well. Equally importantly, there is now a real chance for the UK to lead Europe on the issue. If we press ahead now, others will follow but we will have an enormous first mover advantage. It could be UK regulations that set the standard right across the EU and UK businesses that dominate the supply chain.

I urge the Government to ignore today the siren voices calling for delay; to look objectively at the facts, which have been analysed by many learned institutions as well as by my Committee and other bodies; and to recognise the huge potential benefits of fracking, without exaggerating their impact, as I am afraid some of our less well informed supporters have done. Let us oppose amendments that would obstruct the development of a potentially valuable natural resource.

[Joan Walley]

I am conscious of the fact that we have about 20 minutes left for the debate, and that there are about 60 amendments on the amendment paper. It will be impossible for the House to do justice to the concerns of people across the UK about how the Government are going all-out on fracking.

I will respond to the points that the esteemed Chairman of the Energy and Climate Change Committee, the hon. Member for South Suffolk (Mr Yeo), made. His Committee did produce reports on fracking, but the concerns that the Environmental Audit Committee received related to the haste with which the Government are taking fracking forward and the fact that we have started out with a regulatory regime that has not been thought through from every different perspective. We have the Health and Safety Executive, local planning inspectors, the Department for Communities and Local Government and the Environment Agency, and we have petroleum exploration and development licences, which the Department for Energy and Climate Change issues, but we do not have an overarching, integrated way of dealing with applications. From the evidence that my Committee received, we felt that the matter should be looked at from every single perspective. We need an overall strategic assessment, not individual case-by-case assessment of each application. Until that is sorted out, it is difficult to see how the system will be right for the country’s energy security and supply.