Called-in Planning Decision: West Cumbria
(Limited Text - Ministerial Extracts only)
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The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
With permission, Mr Speaker, I would like to make a statement following the decision I made yesterday to grant planning permission for a new metallurgical coalmine at Whitehaven in Cumbria.
I think it is important to stress at the beginning of my statement that I am speaking with regard to a planning decision that I have taken in my capacity as Secretary of State in what is a quasi-judicial process. Members of the House will be aware that the decision may, of course, be subject to a legal challenge, so I urge all Members of the House who are interested in the decision to read the decision letter, which was published yesterday, alongside the detailed report of the independent planning inspector who oversaw the public inquiry into the proposals. Any mature and considered response needs to take account of both my decision letter and the planning inspector’s full report.
I would like to refer in my statement to some of the arguments that the planning inspector has entertained and some of the arguments that he has made in the course of his report, but nothing that I say at the Dispatch Box should be taken in any way as a substitute for full engagement with the inspector’s report.
It is important to note that it is rare that any planning decision is an open-and-shut matter. There are almost always competing elements for and against any planning scheme—particularly a substantial one of this kind, which can raise serious and passionate debate—but the open and transparent public inquiry system allows all those issues to be fully explored. It also allows all parties to put their case before an independent inspector.
The decision that I issued yesterday was in line directly with the recommendation of the inspector, who heard all the evidence for and against the scheme and was able to test that evidence through the participation of interested parties. This was a comprehensive and thorough process, lasting over a month and hearing from over 40 different witnesses. It is summarised in a report of over 350 pages, which, again, I urge all hon. Members to read.
I think it important to restate—as I think is well understood—that the proposal granted permission yesterday for the production of coking coal for use in steel production is not an energy proposal. Our net zero strategy makes it clear that coal has no part to play in future power generation, which is why we will be phasing it out of our electricity supply by 2024. Coal’s share of our electricity supply has already declined significantly in recent years. It was almost 40% of our energy supply in 2012, and less than 2% in 2020.
I took account of the facts in reviewing the planning application, as did the inspector, taking into particular account the Department for Business, Energy and Industrial Strategy industrial decarbonisation strategy of March 2021, which explicitly does not rule out the use of coking coal in an integrated steel-making process, and makes it clear that, together with carbon capture and storage, that can be part of a net zero-compliant option.
It is important to note, as the inspector makes plain on page 239 of the report, that it is clear all the scenarios and forecasts for the future use of coking coal which were put before the inquiry demonstrated a continued demand for coking coal for a number of decades to come. It is also important to state that the European Commission, as the inspector noted, recognised the indispensable role of coking coal during the steel industry’s transition to climate neutrality.
It is also important to note, as the inspector did on page 238, that the UK is currently almost wholly dependent on imports of coking coal to meet its steel manufacturing demand. In 2017, 98.8% of the more than 3 million tonnes of coking coal used in UK steel plants was imported. The main exporters of coking coal at the moment are Australia, the USA and, of course, Russia. European metallurgical coal demand is forecast to remain between 50 and 55 million tonnes per annum for the next 28 years, and in the UK demand is forecast to remain at the current level of 1.5 million tonnes per annum.
The coking coal that will be extracted from the mine in Whitehaven is of a particular quality. Coking coal is usually a blended product of soft and hard high volatile coals and low volatile coals. The coal from the proposed mine would have a low ash content of below 5%, compared with between 7% and 8% for US coal and 10% for Australian coal. It would also have a low phosphorus content, lower than that of Australian coal, and a high fluidity. It is also important to note that, while the sulphur content of this coal has been referred to, and it is relatively high, the evidence before the inspector suggests that the coal handling and processing plant will produce coal with an average sulphur content of 1.4 %, and the applicant has stated its acceptance of the planning condition to ensure the product leaving the mine meets this level.
It is also important to note that the applicant is making it clear that this will be the only net zero metallurgical coking coalmine in the world. It is vitally important that all of us recognise—as the inspector does on page 255—that the proposed development would to some extent support the transition to a low-carbon future specifically as a consequence of the provision of a currently needed resource from a mine that aspires to be net zero. I think it is also important that we recognise that, in any change of land use, there will always be a potential impact on biodiversity and on the local environment as well. Again, it is important to note that, on page 278 of his report, the inspector makes it clear that this mine would not cause any unacceptable impacts on ecology or result in a net loss of biodiversity. The inspector also makes it clear in paragraph 22.9 that the proposed development itself would have an overall neutral effect on climate change, and as such there would be no material conflict with Government policies for meeting the challenge of climate change.
Taking account of all these environmental considerations, we should also bear in mind the impact on employment and on the economy, locally and nationally. As the inspectorate notes on page 279, the mine will directly create 532 jobs, which will make a substantial contribution to local employment opportunities because they will be skilled and well-paid jobs. The employment, and indirect employment, that would follow will result in a significant contribution to the local and regional economy, with increased spending in local shops, facilities and services. In addition, the exportation of some of the coal to European markets will make a significant contribution to the UK balance of payments. It is therefore the case that granting the application is compliant with planning policy, and the social and economic benefits should be afforded substantial weight.
The inspector’s report makes a strong case, in a balanced way, for the granting of permission. After reading the inspector’s report in full, I am satisfied, in my role as Secretary of State, that it is the right thing to do to grant this planning application.
Mr Speaker
Order. The statement I received was the thinnest ever, but the Minister has gone long. Between that and what the Opposition and I have been provided with, there is something missing, which is not in accordance with the ministerial code. We do not work like that. The shadow Secretary of State has not been able to read what has just been said. I am going to suspend the House in order to try to find out what is in the statement.