Offshore Petroleum Licensing Bill

Debate between Lord Sharma and Matt Western

2nd reading
Monday 22nd January 2024 Commons Chamber

[Sir Alok Sharma (Reading West) (Con)]

I refer the House to my entry in the Register of Members’ Financial Interests.

I agree with the Secretary of State, who I hold in high regard, that the United Kingdom has been a leader in climate action internationally. We have cut our emissions in half over the past 30 years, faster than any other major economy in recent years. We have set ambitious domestic emission reduction targets, in particular ahead of COP26. Through our COP26 presidency, we managed to get over 90% of the global economy signed up to net zero. Just about every G20 nation signed up to a net zero commitment. We led on climate action domestically and we translated that into leading the world on climate action.

Just a few weeks ago at COP28, the UK, alongside other nations, signed up to transition away from fossil fuels. On his return from COP28, the Minister for Energy Security and Net Zero, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart) welcomed that global agreement from the Dispatch Box. He spoke about the importance of listening to the voices of the most climate-vulnerable island nations, who, as we know, wanted the world to agree to stronger language to phase out fossil fuels. Indeed, my right hon. Friend himself tweeted at COP28:

“There must be a phase-out of unabated fossil fuels to meet our climate goals.”

I commend the work that he and the whole UK team did in Dubai.

But today we have a Bill before the House, the sole purpose of which is to double-down on granting more oil and gas production licences. I do not believe, and it pains me to say this, that the Bill will advance that commitment to transition away from fossil fuels. I also do not believe that those climate-vulnerable nations my right hon. Friend referred to will think the Bill is consistent with the pledge that we, along with every other nation, made in Dubai.

As for the substance of the Bill, I think that, as currently drafted—and it pains me to say this—it is something of a distraction. I do not think it is necessary. The North Sea Transition Authority can already grant licences annually, or, indeed, when it considers it necessary. It has been doing that regularly for the past few years. The Department’s own explanatory notes make that clear by stating:

“ The NSTA will remain free to grant licences outside this new annual duty in the usual way, whether or not the new statutory tests are met.”

As for those two statutory tests, they seem to override the already non-binding climate compatibility checkpoint, and I have to say that I think they have been designed in such a way that the computer will always say yes to new oil and gas licences. Overall, the ability of the NSTA to grant new licences will not change materially as a result of the Bill.

Sadly, however—this is my opinion, and others will have theirs—what the Bill does do is reinforce the unfortunate perception of the UK’s rowing back from climate action, as indeed we saw last autumn with the chopping and changing of some policies, and that does make our international partners question the seriousness with which we take our international commitments. I said “it pains me to say this” because I know that the Government have been coming forward, under this Secretary of State, with commitments to try to tackle climate change and deliver on a clean energy transition.

We have heard that the Bill is about improving domestic energy security, but I think we all understand that the oil and gas extracted from the North sea is owned by private enterprises and the Government do not get to control to whom it is sold. Moreover, I think it is acknowledged that the Bill would not necessarily lower domestic energy bills in the UK, given that the price of oil and gas as a commodity is set internationally. I think that the best way to enhance our energy security, and ultimately bring down bills, is for the Government to continue to deliver on their ambitious plans for expanding home-grown clean energy, to which I know the Secretary of State and her Ministers are absolutely committed. That means more wind power, more solar and more nuclear as part of a diversified clean energy mix, and I back the Secretary of State in the work that she and her team are doing in delivering that clean energy mix.

We have heard that the Bill will secure 200,000 jobs. Of course people’s jobs and livelihoods matter, and we must ensure that we secure those jobs, but we must recognise that we are in the process of an energy transition. I support an orderly transition; for me, this is not about turning off the taps overnight on oil and gas. We must also acknowledge that more than 200,000 jobs, supported by the oil and gas industry, have been lost over the past decade, despite hundreds of new drilling licences being issued. We know that many of the skills used in the oil and gas sector are transferable to clean energy—to offshore wind and geothermal. If we want to truly turbocharge a clean energy transition, we need to help, support and retrain the workers who are making the transition, over time, from the fossil fuel sector into the many tens of thousands of jobs that are being created in clean energy as a result of the work that the Secretary of State and her team are doing.

[Matt Western (Warwick and Leamington) (Lab)]

The right hon. Gentleman is making some powerful points, and I have huge respect for him when it comes to this topic. Does he agree that we are in real danger of turning off the interest and the investment appetite among many other nations, such as Korea and Japan, which see the UK as having vast expertise in offshore wind development sites, and that legislation of this kind will undermine that market?

[Sir Alok Sharma]

There was some commentary expressing concern about investment appetite following some of the statements that were made in the autumn, but I think we must acknowledge that, over the last few months, the Government have managed to secure billions of pounds of extra investment committed within clean energy to the UK.

Turning to the carbon intensity test for granting new licences, I have to say again that I am not sure that the Government recognise the whole picture of where we get our imports from. The majority of the gas that the UK imports comes via a pipeline from Norway. It is not imported LNG. The carbon intensity of Norwegian gas production is around half that of UK domestic gas. If that is the test that the Government want to apply in deciding whether to issue new licences, I think they should take into account the average carbon intensity of all imported gas, not just LNG. Given that around 70% of remaining North sea reserves are oil, perhaps the tests should also include the carbon intensity of UK-produced oil, which is higher than the global average.

Oral Answers to Questions

Debate between Lord Sharma and Matt Western

Wednesday 9th June 2021 Commons Chamber

[Andrew Gwynne (Denton and Reddish) (Lab)]

What steps the Government are taking to promote climate action and a green recovery from the covid-19 pandemic ahead of COP26.

[Matt Western (Warwick and Leamington) (Lab)]

What steps the Government are taking to promote climate action and a green recovery from the covid-19 pandemic ahead of COP26.

[The COP26 President (Alok Sharma)]

The Prime Minister’s 10-point plan sets out our blueprint for a green industrial revolution. The plan invests in green technologies and industries. It leverages billions of pounds of private sector investment to create and support up to 250,000 highly skilled green jobs and level up across the UK.

--- Later in debate ---

[Alok Sharma]

I would just say to the hon. Member that when the UK took on the COP26 presidency, less than 30% of the global economy was covered by a net zero target; that is now 70%. All the G7 countries have committed to 2030 NDCs that are aligned with net zero by 2050. Of course, he is right that we want all countries, particularly the big emitters, to come forward with ambitious emissions reduction targets.

[Matt Western]

The credibility of the COP presidency rests on demonstrable climate change action at home. However, the decision by the Government back in 2015 to scrap the Labour Government’s zero carbon homes legislation has meant that we have lost 1 million zero carbon homes in the past five years. It is a simple question: why do this Government seem to want to allow non-zero carbon homes to continue to be built?

[Alok Sharma]

I would point out to the hon. Member that the UK is the country in the G20 that has decarbonised its economy fastest since the year 2000. He will know that the Secretary of State for Business, Energy and Industrial Strategy is working on a heat and housing decarbonisation strategy as well. That will come forward, and of course we will set out our net zero strategy ahead of COP26.

Energy White Paper

Debate between Lord Sharma and Matt Western

Monday 14th December 2020 Commons Chamber

[Alok Sharma]

My hon. Friend is a great champion of Ynys Môn, and I know she is doing her bit to speak up on behalf of her constituents. We will of course consider any new projects that come forward with any viable companies and investors that wish to develop sites in Wales or elsewhere. She should direct them to my Department.

[Matt Western (Warwick and Leamington) (Lab)]

The Secretary of State will be well aware that a shockingly high proportion of households are living in energy poverty across the UK. In my constituency of Warwick and Leamington, 8.9% of households are in energy poverty. I have heard about the green homes grant and how it has not really succeeded since it was introduced. What are the Secretary of State’s plans to ensure that those living in social rented properties will be able to have that addressed, and that local authorities and housing associations get the funding they need to implement that?

[Alok Sharma]

As the hon. Gentleman knows, the £3 billion funding that the Chancellor announced some months ago includes funding for social housing. We are making progress with the green homes grant. Thousands of vouchers have been issued, and the Department is doing its bit daily to ensure that we issue more vouchers to those who have applied and have more installers coming on to the system.

Oral Answers to Questions

Debate between Lord Sharma and Matt Western

Tuesday 29th September 2020 Commons Chamber

[Alok Sharma]

I recognise the historic significance and role of the post office in Sanquhar, and I thank all the staff who have kept it running over the years, particularly most recently through the covid pandemic. I very much hope that a long-term future for that post office can be secured.

[Matt Western (Warwick and Leamington) (Lab)]

The Chancellor claims that certain businesses and jobs are no longer viable—he says “unviable”. Will the Minister explain how the Government can support people sitting on packed aeroplanes for three and a half hours, but will not support restaurants and cafes in Warwick and Leamington, and across the country, or cinemas and bars, where people may be sat at the same density?

[Alok Sharma]

As the hon. Gentleman knows, we are supporting the hospitality sector. Business rates are not required to be paid for the full year, and other support is available across the economy. If we want to get back to normality, we must get this infection under control, and we all have a part to play in that.

Business and Planning Bill

Debate between Lord Sharma and Matt Western

2nd reading & 2nd reading: House of Commons
Monday 29th June 2020 Commons Chamber

[Alok Sharma]

Ultimately, it is possible to revoke these permissions, and expedited processes have been put in place. Nobody wants to see bad behaviour, but this is a 10-day process, and there is an opportunity in the first five working days for anyone to put in their views to the local authority. Ultimately, the local authority decides. There is also a clear requirement that a legible notice is put up at the premises, so anyone who is in the locality will be able to see it when they pass by, and they can make representations if they wish. These new measures will cut the time to receive approval for this licence from an average of 42 working days to just 10 working days, and the application fee is capped at £100.

Public safety and access for disabled people using pavements is of course absolutely vital, so I can confirm that local authorities will be able to refuse or revoke licences where appropriate. The Government will be publishing minimum requirements and guidance for footway widths and distances required for access by disabled people.

[Matt Western (Warwick and Leamington) (Lab)]

The Secretary of State spoke earlier about the organisations that he has consulted. Has he engaged with, say, the Guide Dogs for the Blind Association to understand the sorts of risks and challenges that people with sight loss face? We have a centre for guide dogs in my constituency. This is a real issue for these organisations.

[Alok Sharma]

I can confirm that we have engaged with disability groups in the preparation of the clauses in this Bill.

We will also be making changes to alcohol licensing. Currently, any licensee wishing to add off-the-premises sales permission has to apply for a licence variation. This takes time, with a 28-day notice period, adverts placed, and sometimes a hearing. Ordinarily, of course, that is necessary. However, hospitality businesses are not operating in ordinary economic times, as we all acknowledge, so the Government are temporarily changing the process. Under the measures in this Bill, most licences will automatically and temporarily be extended to include off-the-premises sales. However, there are safeguards in place. The extension will not include premises that have been denied off-sales permission or had it removed within the past three years. Taken together, these measures will help our hospitality industry to get back to business over the busy summer months.

Oral Answers to Questions

Debate between Lord Sharma and Matt Western

Tuesday 3rd March 2020 Commons Chamber

[Alok Sharma]

We are putting significant funds behind the renewables sector, and, as my hon. Friend will know, we are committed to increasing our research and development spending to 2.4% of GDP by 2027. I want the UK to be a science and R&D superpower, and that is what we are engaged in.

[Matt Western (Warwick and Leamington) (Lab)]

Why are the Government so opposed to onshore wind energy generation?

[Alok Sharma]

The hon. Gentleman may have missed yesterday’s announcement about the fourth contracts for difference allocation round, but if he reads that announcement, he will see the points that we have made. The proposals that we have presented are there to help the UK achieve its 2015 net zero ambition.

Oral Answers to Questions

Debate between Lord Sharma and Matt Western

Monday 7th January 2019 Commons Chamber

[Alok Sharma]

I thank my hon. Friend for the enormous amount of work that he does in supporting employers so that they can create jobs. He is right. We need to make sure that the jobs market is very strong, and that is why we make support available through universal credit, with one-to-one interaction.

[Matt Western (Warwick and Leamington) (Lab)]

T7. Does the Minister think that a 47-week average wait for a PIP appeal hearing at the Coventry centre is acceptable, particularly considering that the person appealing will not receive any money during that time and that 80% of decisions are overturned at tribunal?

Local Authority Housing

Debate between Lord Sharma and Matt Western

Wednesday 20th December 2017 Commons Chamber

[The Minister for Housing and Planning (Alok Sharma)]

I congratulate the hon. Member for Stroud (Dr Drew) on securing this important debate on local authority housing, and I commend him on the manner in which he has presented his point of view.

Successive Governments over many decades have not overseen the building of enough homes in the right places. We are determined to address that, and we are making progress. Last year, there was a net addition of 217,000 homes across England—the highest number in almost a decade—and housing was front and centre in the recent Budget, in which there was a commitment of at least £44 billion over the next five years to address the broken housing market. That includes the £15 billion of new financial support announced in the Budget—the biggest budget for housing in decades. More money was announced for infrastructure and to help small and medium-sized builders. There were more financial guarantees for the house building sector and a revamp of a more muscular Homes and Communities Agency; and, of course, there was more support for local authorities to get more homes built. I will return to that point shortly.

Of course, providing good-quality, affordable homes for people who need them most is an absolute priority for this Government—Members on both sides of the House can all agree on that—and we are making progress on delivering those homes. Since 2010, more than 357,000 new affordable homes have been delivered through the affordable homes programme, including 128,000 homes for social rent, but we recognise that there is much more to do. That was why the Prime Minister recently announced an extra £2 billion to deliver new affordable housing, including for social rent, taking our total investment in the affordable homes programme between 2016 and 2021 to £9 billion. David Orr, the chief executive of the National Housing Federation, described that extra money as

“a watershed moment for the nation.”

Local authorities, as well as housing associations, will be able to bid for the money, which will go where it is most needed—areas of acute affordability pressure.

As the hon. Member for Stroud mentioned, the Budget provided a further boost through the decision to increase local authority housing revenue account borrowing caps by a total of £1 billion. The hon. Member for Brighton, Kemptown (Lloyd Russell-Moyle) talked about increasing HRA headroom and, as at 31 March 2017, there was £3.5 billion of headroom available in housing revenue accounts across England. Again, we will deploy that £1 billion in areas of high affordability pressure where authorities are ready to start building.

Stroud District Council has previously raised the issue of the borrowing cap with my Department and, as the hon. Member for Stroud noted, its leaders have written to the Prime Minister. I sense that the decision to lift the HRA caps by up to £1 billion is welcome news. From 2019-20, local authorities will be able to bid for increases in their caps of up to a total of £1 billion by the end of 2021-22. We will be releasing information in the spring on how councils can apply for an increase in their HRA cap.

The Budget also more than doubled investment in the housing infrastructure fund to £5 billion, and of course an additional £400 million has been made available to regenerate run-down estates. On top of all that extra funding, we are giving local authorities and housing associations more certainty over their rental income up to 2025. From 2020, they will be able to increase rents by up to CPI plus 1%, and the feedback I have received suggests that the sector will build more homes more quickly as a direct result of receiving that certainty.

All of that—rent certainty, additional HRA borrowing and billions for new affordable housing—affirms our commitment as a Government to building social housing. I know that Stroud District Council, like other local authorities and many housing associations to which I have spoken, welcomes these measures.

[Matt Western (Warwick and Leamington) (Lab)]

Does the Minister accept that many authorities are struggling, particularly with the allocation of housing through developers? The viability studies supposedly always prevent such houses being built. As we have recently seen with Persimmon, the lack of viability is purely because the developers do not make enough profit. They are in fact making huge profits, but there are just no teeth available to local authorities.

[Alok Sharma]

I will address that point, because it was also raised by the hon. Member for Stroud. I agree it is important that developers build the required amount of affordable homes.