Ban on Fracking for Shale Gas Bill

Debate between Wera Hobhouse and Craig Mackinlay

Wednesday 19th October 2022 Commons Chamber

[Craig Mackinlay (South Thanet) (Con)]

We often wonder why we in this House are not taken very seriously. I will tell Members why. We are in the depths of an energy crisis. We have shown ourselves—Europe as a whole—to be too reliant on a dictator who has been conducting an illegal war, and the problems have come home to roost. Here we are speaking about trying to ban a source of domestic energy while we are short of it, and we wonder why people out there think that we are stark staring mad.

Of course, today’s debate is not about fracking—it is not about fracking at all—but about taking control of the Order Paper. We have seen that before during the height of the Brexit wars. My dear friend the right hon. Member for Leeds Central (Hilary Benn) was part of that. I am really sorry that the right hon. Member for Doncaster North (Edward Miliband) is not in his place. I did try to intervene on him, but he did not show me the courtesy of taking my intervention. If he had been in his place, I would have shown him that courtesy now.

There are a couple of things that need to be said. It has been said here that fracking will make no difference to the price of gas. I do not know about anybody else in this House, but when I did O-level economics, the first week—no, probably the first lesson—taught me that if we put more supply of something into a system, the price tends to come down. Further than that, even if Labour’s economics are true and the price will not change, would one rather spend tens of billions of pounds per year on foreign imported liquefied natural gas, even at a high price, or spend that money at home? That is a very clear decision.

[Wera Hobhouse]

Will the hon. Gentleman give way?

--- Later in debate ---

[Craig Mackinlay]

No, I will not give way; I do not have time today, and others have not done it for me— [Interruption.] Oh—yes, if the hon. Lady will please intervene, it gives me another minute.

[Wera Hobhouse]

Has the hon. Gentleman not listened to his own colleague, the hon. Member for Fylde (Mark Menzies), saying that it would take at least two years to get any fracking going, or to his other colleague, the right hon. Member for Spelthorne (Kwasi Kwarteng), who said just a few weeks ago when he was still Business Secretary that no amount of fracked fuel in this country would make a difference to the global gas market, because the quantities are too small?

[Craig Mackinlay]

I thank the hon. Lady from the Liberal Democrats for that point. I remember a former leader of the Liberal Democrats saying, about 12 years ago, “What is the point in nuclear?” because it would take 11 or 12 years to get it on stream. I think that 10, 11 or 12 years on from 2010 would be about now, and that would have been quite useful. Of course, it will take time to get fracked gas out of the ground. The best time to have done it was a few years ago; the second-best time to think about it is now.

I refer hon. Members to a House of Commons Library report dated 14 January this year, called “The energy price crunch”. As ever, House of Commons Library reports are excellent, and this one was very clear. Table 4.2 shows a very easy chart, which I will describe to hon. Members. It shows the output of UK-produced gas from the North sea, which peaked around 2004, when we were net exporters of gas. Since that time, we have been using only about 75% of that peak usage, and that may be for many reasons. We may have better-insulated houses, and that is to the good. I feel pretty sure that one of the main reasons is that any energy-intensive business has simply offshored somewhere else, but let us put that aside.

What has happened, very distinctly, is that we are now only producing one third of what we did at peak. We are using 25% less, but we are producing only one third of what we once did. Where do people think that gap is being filled from? That gap is being filled from international resources. There are three countries alone, forgetting Norway: £64 billion we have spent over the past 10 years on importing LNG from Russia, Qatar and the United States.

Surely it must be better to have those tens of thousands of jobs at home, as well as the many billions in investment and the profits and tax revenues—remember those? They are pretty helpful; they pay for things such as the NHS, or perhaps the insulation that we would all very much support. What would also be quite useful is balance of payments, because we have always run a pretty bad show on that. But if CO₂ is your thing—it is certainly my thing—why are we importing LNG and emitting 5 million tonnes of extra CO₂ just in the process of importing it, rather than doing it domestically?

This debate is a valid one—it is happening for other reasons, which we are all very aware of, as shown by Labour—but I support fracking. Let us give it a go. There is no Government money involved; it is all private.

Gas and Electricity Costs

Debate between Wera Hobhouse and Craig Mackinlay

Tuesday 18th January 2022 Westminster Hall

[Wera Hobhouse (Bath) (LD)]

It is a pleasure to serve under your chairship, Sir Edward. I reassure you that I will be brief. I congratulate my hon. Friend the Member for Caithness, Sutherland and Easter Ross (Jamie Stone) on securing this urgent debate. In Bath, in north-east Somerset, more than 10% of households are already living in fuel poverty and, as we have heard, that is likely to increase dramatically.

The council is working hard to provide a local household support fund, with grants of £250 to help the least well off with their energy costs this winter but, again as we have heard, energy costs are likely to rise by about £600. That grant is something, but it is clearly not what is needed. Many more of my constituents are worried about their next heating bill. What have the Government done to protect them? They have scrapped the programmes to insulate our homes, which would have reduced bills long ago. They have cut universal credit and increased the UK’s dependence on imported gas, rather than investing in renewables: green energy homemade in the UK—something the Minister knows I keep saying in these debates. That is what should have happened a long time ago.

I hear reports that the Treasury is scrapping the energy company obligation scheme, which has been a powerful driver in reducing household emissions. The Government must not touch that scheme. Instead, they should double and extend the warm home discount, as has been said. It cannot be right that gas companies are profiting from record prices, way up from where they were last year, when millions cannot afford to heat their homes. The Liberal Democrats are calling for a one-off windfall tax on the profits of oil and gas firms, to fund support for those who are struggling. Seventy-one per cent. of people support that move, as do 75% of the Government’s own voters. Why are the Government not severely and sincerely looking at the proposal of a windfall tax on the profits of oil and gas companies?

We need a long-term plan to prevent another energy crisis. Where is the urgent plan for a long-term home insulation programme that will cut bills permanently? This is a particular challenge for my constituents in Bath. Bath and North East Somerset Council proposes that the Government require landlords to bring housing up to an agreed energy certification standard, and I urge the Minister to look at that. The Government’s heat and buildings strategy was a missed opportunity for real ambition in this area. We have one of the oldest, least energy-efficient housing stocks in Europe. It is an emergency, and the Government should finally treat it as such.

Liberal Democrats are committed to reducing most emissions by 2030, which means a massive expansion of renewables and the replacement of the gas grid. In the context of this debate, we all know that there are some energy companies leading the way. Companies such as E.ON pride themselves on the fact that nearly all of their electricity is generated from renewables, but the shocking fact is that, while the price of renewables falls continuously, the customers of E.ON and other renewable electricity companies will find that their electricity bills go up by just as much as those of customers who buy electricity from burning gas. I have asked E.ON directly—

[Craig Mackinlay]

The hon. Lady has a high number of listed properties in her constituency of Bath, as I have in mine. Sandwich is the oldest medieval town in the country. Has she considered how old buildings, which are listed or in conservation areas and structurally virtually impossible to insulate, can be dealt with in a way that is affordable or achievable?

[Wera Hobhouse]

I thank the hon. Gentleman for his intervention. We have had a debate on listed buildings and how we can help owners. It is complicated, but I do believe it is important that owners of listed buildings get proper support, including help from the council to change the structure of their buildings to make them more energy efficient.

As I said, it is shocking that those trying to do the right thing by buying from companies getting their electricity only from renewables are facing the same cost rises as those buying their energy from companies making electricity from burning gas. It is a massive failure of Government, who have set the terms of the wholesale market to ensure that everybody pays when gas prices go up, even if they do not use gas. That is shocking and unforgivable. The Government must urgently look into how this issue can be fixed now.

Retail Sector

Debate between Wera Hobhouse and Craig Mackinlay

Wednesday 6th June 2018 Commons Chamber

[Craig Mackinlay (South Thanet) (Con)]

The motion before us today is somewhat rambling, dare I say. It has three parts. It is about squeezing wage growth, the condition of the retail sector, and there is a bit of Brexit put in as well—but we will have 12 hours next week to discuss that. Generally, however, what the Opposition are putting forward is that the Government should do more. They should spend more, subvert reality and revert this country to a command and control economy.

Let us look at wage growth, because we have had so much misdirection and ignorance of the truth regarding that. I think that the Opposition hope that if they say it often enough, people might believe it, but I recommend that they look at the facts. Let us look at a hypothetical, lower-paid employee. In 2010, the national minimum wage for those over 21 was just £5.80. Today, in 2018, it is £7.83; that is a 35% rise. Let us look at the income tax personal allowance. When we came into Government in 2010—we were left to pick up a lot of mess by Labour—the tax-free allowance was just £6,475. Today, in 2018-19, it is £11,850; that is an 83% rise in the tax-free band. Let us put those together. A 35-hour-a-week lower-paid employee at minimum wage in 2010 would have had take-home pay, after tax, of just £9,740, but today, the minimum wage and that huge increase in the tax-free allowance means that their take-home pay is £13,768. That is over £4,000 in real cash in the pockets of the lower paid under this Government. That represents a 41.4% increase in take-home pay.

[Wera Hobhouse]

It is, however, about the balance between the two. In relatively successful towns or very successful cities such as Bath, which I represent, shops are still doing fine but life is more expensive, so the balance of what people take home as pay and what they have to spend to live in an expensive city is much higher, too. The balance of the two, even in good, successful town centres such as Bath—and it is not that successful—is not right.

[Craig Mackinlay]

I thank the hon. Lady. Today’s debate is about the retail sector and wages. I was going to say that 41.4% over eight years is 5% a year, which is greater than any measure of inflation, no matter which one people care to mention, so there has been a real cash increase to all those working. We have the lowest unemployment since the 1970s and more people in work today than we have ever had in the history of this nation. I am afraid that we must stop listening to the misinformation from the Opposition. Their statements are simply not true. Real wages are rising.

In the retail sector, as we have heard, we have had business rates relief and changes from RPI to CPI, which will mean a reduction of over £2 billion to those who have retail stores. During this Parliament over 600,000 businesses will pay no business rates whatsoever, and in the first half of 2017, more retail units were opened than closed. There are 300,000 more in employment in the retail sector than in 2016.

That does not mean that everything is rosy on the high street, but when we consider what the Government did in 2008, when they took this country into probably the worst recession that it has ever known, in the third quarter of 2008 alone, there was a 4.2% decrease compared with the year before. That happened in just one quarter under Labour; that is what they condemned this country to.

The real debate here is the changing face of retail, and the internet is the reason for that. With spending now at £1.2 billion per week, 17% of all spending is now on internet purchases, and that is a 12% year-on-year increase. That is not unique to Britain, but is happening across the entire world.

That is the reality of life, and we are all guilty of fuelling it. If I want a shirt like the one I am wearing but in blue with a 34 inch arm and a 15½ inch collar and I want it delivered tomorrow, ordering that will take me three minutes, and it will be delivered. We are all purchasing in that way now; unfortunately, we are all fuelling the changes to the high street.

We have had debates about banking in the House, and I have taken part. Our banking landscape is changing, sadly, because we are all being encouraged on to mobile apps and mobile banking. Also, when did anyone in this House last book their flights in a high street travel agent?

--- Later in debate ---

[Wera Hobhouse]

Will the hon. Gentleman give way?

[Craig Mackinlay]

No, as we are nearly at the end of the debate.

The high street simply needs to redefine itself. High streets need to create themselves as places to go for a pleasurable afternoon—to do some browsing and shopping, but to enjoy the experience as well. That means there is a duty on councils and the retailers themselves to make the high streets clean, attractive and somewhere good to go.

My answers to this conundrum are that we should revise taxation of retail more towards the internet and warehousing-style operations, focus on making high streets places to go for an experience, and in many cases, such as in Ramsgate, high streets are too spread out and too big, and they need to be smaller to become the vibrant heart of the town. We all need to shop locally, too; that will help.

Proportional Representation

Debate between Wera Hobhouse and Craig Mackinlay

Monday 30th October 2017 Westminster Hall

[Wera Hobhouse]

Will the hon. Gentleman give way?

[Craig Mackinlay]

I am making a powerful point, and then I will give way. Angela Merkel received 33% of the vote and is unable to form a Government. How will that Government be formed? It will be formed in back rooms, not anywhere near the ballot box or the people who elected on that day. That has to be one of the most unfair systems for creating a Government.

[Wera Hobhouse]

I am very grateful that the hon. Gentleman has given way. I always love it when people talk with such conviction about areas that they do not necessarily know so much about. I challenge him that I know more about Germany than he does. A coalition Government is not an unfair Government—it is a coalition, in which two or several parties come together to form a Government, bringing several views together, rather than just the view of one party. That does not mean it is an unfair Government, or that people do not know what the result of that Government will be. It is a coming together of views that creates a better democracy and better governance.

[Craig Mackinlay]

I thank the hon. Lady for that view and perception, but she must realise that, in these back-room coalition deals, it can be the most small party, which has been rejected virtually nationally, that holds the balance of power. [Hon. Members: “Like the DUP?”] We do not need DUP Members to that extent, although we are grateful to have them. [Interruption.] May I just finish this point? In Germany, it is often the Greens that hold the balance. In this country, deals are generally done with parties of a similar persuasion, exactly as in our maintenance agreement with the DUP.

[Wera Hobhouse]

What is wrong with smaller parties having a say in government? It is sometimes very healthy and is a great sign of democracy.

[Craig Mackinlay]

I do not disagree with the hon. Lady’s point, but when parties completely different from the main parties hold the balance of power, that is a danger.

I will close my remarks; I am glad they have caused some excitement. If we had a 33% result in this country, we would have another general election. That does not happen in Germany and other places that have PR in prevalence. I want strong Government, and first past the post, despite its flaws, tends to give that result most of the time. Frankly, I think we should reject any other system.

Several hon. Members rose—