(8 years ago)
Commons ChamberMr Speaker, with your permission, may I take this opportunity to thank the emergency services, the Environment Agency and all who helped with the recent flooding? Our thoughts are with those who have been affected. Our £2.5 billion six-year capital floods programme to improve flood defences will provide better protection for at least 300,000 homes in the six-year period from 2015 to 2021.
Does my right hon. Friend recognise that the investment on the Medway provides an extremely good and important opportunity for the Government to protect homes around the Tonbridge, Edenbridge and East Peckham area?
As an ex-Tonbridge Grammar School girl, I know the area well. The Environment Agency is progressing business cases to increase the capacity of the live flood storage area on the River Medway, alongside new schemes at Hildenborough and East Peckham. The agency has estimated that these schemes qualify for a £15.5 million Government grant in aid. If approved, this will better protect more than 1,900 properties in the Medway catchment.
The Secretary of State rightly has a responsibility to protect buildings. In my constituency, in the lower Don valley, there is a lot of ex-industrial brownfield land that, with remedial work and protection from flooding from the Don, could provide homes for thousands of people and stop the building on greenfield sites. Does she accept that, as well as protecting existing buildings, the Government should be interested in protecting sites where buildings could be built?
Absolutely. Of course, it is important that we take into account the protection of new homes being built—that is what the Environment Agency does, as a key stakeholder in all planning decisions—and it is absolutely our intention to make sure that new developments are better protected.
Given that more than 5 million homes are at flood risk in Britain, is it not important that the Department continues its excellent work, not just in building flood defences with concrete, steel and earthworks, but in looking at how nature and land managers can be incentivised to create greater protection for households?
Yes, my hon. Friend is quite right. There are concrete barriers, which are very important, and we have had 130 new schemes since January, better protecting 55,000 homes. However, natural flood management—slowing the flow, and looking at ways to work with the contours of our environment to improve protection—is also vital. I can announce that we have been given £15 million to invest in further projects to do just that.
Through the Secretary of State, may I thank the Environment Agency in the west midlands? Its regional director told me last week that 34 more homes will be protected in the Blythe valley in my constituency. Will she confirm that the agency is constantly updating its modelling in response to rainfall records constantly being broken?
My right hon. Friend knows a great deal about this subject, and she will be aware that the resilience review, which we undertook across Government, contained an enormous amount of remodelling of the likely impacts of increasingly extreme weather events. Of course, the Environment Agency is always looking not just at what schemes can protect people better, but at where the best types of flood protection can be developed, whether through concrete barriers or natural flood protection.
I have just returned from being with my family in Devon, so I have personally experienced the floods caused by Storm Angus, and I would like to join the Secretary of State in thanking the emergency services and everybody who helped so quickly with the clean-up and with supporting people.
Yesterday’s autumn statement gave little hope to the residents of the 5 million properties at risk of flooding. In the March Budget, an additional £700 million of capital expenditure for flood defences and prevention was announced, but just how many schemes have seen a spade in the ground?
As I have already mentioned, this Government have in fact committed £2.5 billion to new flood defences in the six years to 2021. Just this year, since January 2016, we have had 130 new flood schemes completed, protecting a further 55,000 homes. We have also enormously increased our temporary flood defences and all our infrastructure capabilities. including incident control vehicles, light towers, pumps, sandbags and so on, to try to deal with the unpredictable nature of these extreme weather events, but we are committed to doing more.
The Prime Minister has set out our vision for making the UK a world leader in innovation, which includes spending an extra £4.7 billion by 2020-21. Food and drink is our largest manufacturing sector—bigger than cars and aerospace combined. Our £160 million agri-tech strategy is taking forward brilliant ideas, such as monitoring crops using the latest satellite data.
It is an indescribable delight to see the right hon. Member for Surrey Heath (Michael Gove). My surprise was merely at the fact that he has perambulated to a different part of the Chamber from that which he ordinarily inhabits. I am sure that we will enjoy the same eloquence as usual.
Thank you very much, Mr Speaker. As a migratory species, I am glad that you have noticed the different habitat that I am now in.
The Secretary of State will be aware that 80 years ago, the number of fish landed at British ports was 14 times the number we land now. The fishing industry has suffered grievously under the common fisheries policy. Now that we are leaving the European Union, can she say a little more about how investment, growth and innovation in the fish trade will ensure that we bring prosperity back to our great fishing ports?
I can reassure my right hon. Friend that we will do everything possible to preserve his habitat. I know that he has great knowledge of fishing. Just last week, in China, I signed a memorandum of understanding on seafood that is worth £50 million to UK fishermen, and I have met a number of fishing groups to hear their ideas about what we can do to ensure that our fantastic fishing sectors develop in a positive way once we have left the EU.
Such innovation will be enhanced, and indeed is necessary, in order to restore the water meadows of the lower Avon valley. Will the Secretary of State visit the area to see what we can do?
I am, of course, delighted to accept my right hon. Friend’s invitation. We will certainly revisit the area to look at that scheme in the new year.
My top priority on becoming DEFRA Secretary was agreeing with the Treasury continuity of support for farmers. We are guaranteeing that the agricultural sector will receive the same level of pillar one funding until 2020, which has provided vital certainty, but we are also guaranteeing agri-environment and rural development schemes under pillar two, which are vital to making sure we take every opportunity to improve our environment.
Many farmers in my constituency have been signed up to agri-environmental schemes for many years. What contribution does the Secretary of State think that the schemes, and our farmers, are making to improve our environment?
I join my hon. Friend in applauding the efforts of farmers across the country. In the past five years, our agri-environment schemes have delivered excellent long-term benefits, including 150,000 acres of habitats, the planting of more than 11 million trees and the restoration or planting of 950 miles of hedges. All of this supports our long-term pledge to be the first generation to leave the environment in a better place than we found it.
Welsh farmers face a future of unprecedented uncertainty. Will the Secretary of State commit to devolving agricultural funding according to need, rather than through the unfit-for-purpose Barnett formula?
I can absolutely assure the hon. Lady that we will consult in great detail on future policy with all the devolved Administrations once we have left the EU, to ensure that we focus on what is best for our UK food and farming producers rather than for 28 EU member states.
Flooding is devastating for anyone who experiences it, and I have spent a great deal of time recently ensuring that we have the best possible preparation for the winter weather. There will be opportunities for all colleagues to play our part in ensuring that our constituents are as well prepared as possible—for example, by getting them to sign up to the Environment Agency’s free Flood Warnings Direct service or to visit the Floods Destroy website, which enables people to check their own flood risk. The Environment Agency will also be hosting a drop-in session for parliamentarians next Tuesday from 1 pm to 5 pm in Committee Room 9, where we will be able to hear more about winter preparedness.
I thank the Secretary of State for that answer, but I would like to ask her about her Department’s UK food and drink international action plan, which suggests that the Department will seek foreign direct investment to fill existing gaps in skills and production. How will she ensure that food standards, production rates and manufacturing skills will be maintained in the event of foreign takeovers of existing companies, as we have seen with Mondelez and UK biscuit production?
The UK has some of the highest animal welfare, food safety and food traceability standards in the world, and we will always seek to maintain them, notwithstanding our international food export action plan, which seeks to promote great British food abroad as well as to take advantage of foreign direct investment to make our sectors even more successful.
The pound has fallen, the cost of imports has risen and Brexit is costing the wine industry £413 million more in imports alone. From Marmitegate to the Toblerone gap, we have seen rising prices across the food industry. Customers are paying more for food while those working in farming and food production have been hit even harder. And it is getting worse. What is the Secretary of State doing to mitigate these factors?
The hon. Lady will be aware that we have an incredibly thriving food and farming sector that employs one in eight of us. It is worth more than £100 billion a year to our economy. Our food innovation is second to none: we produce more new food products every year than France and Germany combined. Food inflation continues to be low, and our thriving sector’s exports are improving. They have gone up this year and we are doing everything we can to create a sustainable environment for the future.
The reality is that food inflation is at 5%. This is happening on the Secretary of State’s watch. It is her responsibility and her crisis. People are struggling now. The sector is calling for security: security of labour; security in the market; security of trade; and security in knowing the plans for the sector on leaving the EU. Labour can provide the sector with confidence today—we have a clear plan. Why will the Secretary of State not share her plan? Is it because there is no plan?
If I may say so, that was nonsense. Food prices have been dropping after peaking in 2008, and they do move up and down. On the hon. Lady’s point about the resilience of the food and drink sector, exports this year are well up on last year and growth in the sector is booming. We are doing everything we can on food innovation and getting young people into apprenticeships in increasingly high-technology jobs. This is a well-organised sector with great potential.
In several conversations with the National Farmers Union and farmers in south Wiltshire, complaints have been made to me about how the Rural Payments Agency has been working. Edward Martin and Will Dickson complain of unilateral changes to agreed eligibility calculations. What will the Minister do to ensure that such issues are sorted out so that I do not have any more complaints from my farmers?
My right hon. Friend will be aware that both the 2010 and 2015 Conservative party manifestos said that we would ban all ivory trade. Will she update the House on what progress she made towards that aim at the Vietnam conference last week?
I am grateful to my hon. Friend for raising that matter. The conference was superbly successful and some real steps were taken towards improving awareness of the importance of preserving endangered species, the elephant in particular. In this country, we have announced our intention to ban the trade in post-1947 ivory—that is 70 years—and we will consult on that shortly to consider how we implement that and what further steps can be taken to meet our manifesto commitment.
I think we have all been consistently clear that in leaving the EU we will be seeking the best possible deal for the UK. That will involve close co-ordination and communication with all the devolved Administrations to make sure that we absolutely understand what it means to get the best possible deal for all sectors within the DEFRA family.
Food and drink production has flourished under my right hon. Friend’s leadership; as we have just heard, record levels of hard cheese and sour grapes are emanating from the other side of the Chamber, and in my constituency the Hogs Back brewery, a very successful micro-brewery, is doing a roaring trade. May I invite her to join me for a knees-up in my brewery—something Opposition Members could never organise?
I would be delighted to do that. We have some amazing products. We have taken gin out to the Chinese, which was a great experience, and just look at the beers from the UK that the Vietnamese are drinking already. We are seeing market access and greater exports, and just yesterday we saw the beers at the “Taste of Cheltenham” event. My right hon. Friend is right to highlight produce from his constituency and I would be delighted to share in a knees-up with him any time.
I have always thought of the right hon. Gentleman sitting and reading Proust, rather than having a knees-up, so one’s imagination is challenged a bit—but there you go, it is probably good for us.
I am meeting a Welsh Minister just today to discuss that very subject, and my colleagues have met a number of Welsh Ministers in recent weeks. At official level there are constant discussions, we have had informal stakeholder meetings and, as we have pointed out, formal consultations will be taking place, starting in the near future.
(8 years, 1 month ago)
Commons ChamberClear food labelling is vital to show consumers exactly what they are buying. We want to promote the Great British food brand as strongly as possible. One of my top priorities is to look at what more can be done to make it easier for consumers to identify our high-quality home-grown food.
The Prime Minister recently said that, with Brexit looming, we will be able to choose our own methods of food labelling, but is there not a lot more that we could do on country of origin and method of production labelling? While we are still in the European Union, we ought to emulate some of our EU partners.
I certainly welcome the hon. Lady’s interest in this matter. As she will know, country of origin labelling is already mandatory for unprocessed beef, pork, sheep and goat meat, poultry, fruit and vegetables, olive oil, fish, shellfish, wine and honey. There are many additional voluntary schemes, which we are keen to support. As she points out, there will be further opportunities, as we leave the EU, to look at what more consumers would like to see from labelling.
The dairy industry has not really been able to label properly the Great British cheese, butter and milk that is the best in the world. Can we now take this opportunity to ensure that we get the British flag and label on our dairy products?
I am grateful to my hon. Friend for raising that point. He and I share an ambition for the strongest possible promotion of Great British food. He will be aware that the majority of dairy and processed meat products are compliant with the industry’s voluntary principles for origin labelling, but we can, of course, always do more, and we are working with the industry to look at what those options are.
I thank the Minister for her comments so far. In my constituency, many farmers have already diversified—Glastry Farm ice cream, Mash Direct and Willowbrook Foods are examples—but they have found difficulties with labelling. What help has been given to provide clear guidance and support? What initiatives are in place to provide that to new business and to make sure that the labelling is correct?
As the hon. Gentleman will know, it is an absolute Government priority that food information must not mislead—it must be accurate, clear and easy to understand for the consumer. There are clear guidelines on which foods must carry mandatory information but, as I have already mentioned, a number of food producers already go further on a voluntary basis to try to ensure that they meet consumers’ desires for more information about the food that they eat. I am very proud that the UK has some of the highest standards for food and food traceability in the world.
One Welsh business in my constituency that understands the importance and power of labelling and branding is Daioni, which exports organic British milk to China, Hong Kong, Vietnam and the Emirates, and has plans to expand further. Will the Secretary of State or one of her Ministers meet Daioni to talk about its plans for international expansion and to tap into its expertise in exporting Great British food?
I would be absolutely delighted to do that. Exports of organic dairy produce are a huge success for the UK. Later today, I am off to the Great British export truck, which is parked at Stoneleigh, to hear about British exports. I am off to the Paris food fair to promote Great British food next week, and I am off to China next month to do exactly that. I am always very keen to promote the export of Great British food.
The excitement in the Secretary of State’s life knows no bounds.
We have already designated 50 marine conservation zones, 99 special areas of conservation and 102 special protection areas within UK waters, so more than 17% of UK waters are now within marine protected areas. A third tranche of marine conservation zones will be designated in 2018, and I am proud to say that that will help to complete the blue belt around the English coastline.
I thank the Secretary of State for her reply. As well as the important habitats and wildlife that we have in our domestic waters, including those in the Thames estuary, the oceans around some of our overseas territories are home to hundreds of remarkable species. What action, if any, are we taking to protect them as well?
My hon. Friend is quite right to raise those wonderful marine habitats. I am delighted to say that marine protected areas were declared around Pitcairn and St Helena in the past month, and work is in train to develop MPAs around Ascension Island and Tristan da Cunha, so the UK is set to double these protected areas to an area the size of India by 2020.
The right hon. Lady will know that the marine protections that have led to huge improvements in water quality and the conservation of our marine environment are underpinned largely by EU law. Can she guarantee now that, if we leave the EU, the standards that we currently enjoy will not be any less than they are now?
I can absolutely give the right hon. Gentleman that assurance. As he will know, the Prime Minister has announced that we will nationalise the acquis communautaire. The advantage of the approach is that while there is continuity of legalisation, we also have the opportunity to look at what is right for the UK, instead of the 28 member states. Marine conservation zones derive from UK legislation, and we remain absolutely committed to our ambition of being the first generation to leave the environment in a better place than we found it.
Marine habitats will also be protected by the promotion of sustainable fishing, as practised by the UK inshore fleet and boats that fish out of Lowestoft. Will my right hon. Friend assure the House that she will use the opportunity presented by Brexit to secure a better deal for under-10 metre boats?
My hon. Friend may be aware that we have already moved some quota to the under-10 metre boats, and it is absolutely our intention, as we leave the EU, to seek a good deal for every part of our great British food, farming and fishing sector. Our fishermen do a fabulous job; we absolutely support them and are totally focused on what we can do to create a better, more sustainable fishing industry.
Does the Minister agree that while marine conservation is fine—Labour Members support it wholeheartedly—we have to stop polluting the marine environment with the waste that we pour into it, all over the world? We need the EU and global intervention to stop the horrendous pollution of marine life throughout the world.
Marine conservation zones are not just fine; they are absolutely superb. I am sure that the hon. Gentleman shares that assessment. I can give him, as a good example, the work that we did just last month to ban microbeads in personal cosmetics and so on. I pay tribute to hon. Members on both sides of the Chamber who have been fighting for that. We are putting that into action, and that is an example of the UK’s commitment to much more protection for our marine environment.
Further to the Secretary of State’s answer to the hon. Member for Waveney (Peter Aldous), may I encourage the Secretary of State, and indeed the Minister of State, who has responsibility for fisheries, to engage with all sectors of the fishing industry when designing protections for marine habitats? If those habitats are to be effective, that is absolutely essential. The Minister of State knows that because he has a good record in this regard. Would the Secretary of State, or perhaps the Minister, be prepared to meet a delegation that I will bring from the Northern Isles, who are full of good ideas about what can be done?
The right hon. Gentleman is right to raise the importance of this sector in Scotland. We would be delighted to meet him. In fact, there are already a number of levels of engagement with analysing the opportunities that will arise from our leaving the EU. We will be very happy, keen and enthusiastic to meet his delegation.
It is fantastic that local food producers are developing labelling to highlight local food provenance, which really adds value to their products for the regional and tourist markets. As I said earlier, we want to do everything we can really to promote the British food brand. I am firmly committed to protecting the UK’s iconic food and drink products.
Mr Speaker, you might think of Newcastle upon Tyne Central as an urban constituency, but actually we produce excellent beef from the lucky cattle that graze the nutritious grass on the stunning Town Moor. We are developing Toon Beef labels, but labelling generally needs to be better if consumers are to make informed choices. What practical measures is she taking to ensure that the voluntary and mandatory requirements she spoke of reflect regional origin and animal welfare?
We are very proud that the UK has some of the highest animal welfare standards in the world, the best food traceability and the best food safety. The hon. Lady is exactly right to point out the importance of labelling. We are doing everything we can. There is a lot of mandatory labelling, as she will be aware, but we also do a lot of work with businesses that want to label voluntarily, particularly for our iconic food products. I did a bit of research and found north-east Craster kippers, Wylam golden ale and other iconic names. I encourage her to apply for protected name status wherever possible, and we intend to support that.
This week is Seafood Week. Will my right hon. Friend outline what her Department has done to promote Seafood Week? I urge her to return to Cleethorpes so that we can have a less rushed plate of fish and chips than we had on her last visit.
I am always delighted to visit my hon. Friend’s constituency, because he always has something exciting in store for me. During Seafood Week we have established a working group with different seafood organisations. We are absolutely committed to promoting it, as we are with all our great British food. As I have mentioned, I am off to the Paris food exhibition and the China food exhibition to see what more we can do for our great British seafood and other food.
As he was one of my great Northamptonshire colleagues during the EU referendum campaign, I am pleased to tell my hon. Friend that my Department is doing all it can to support DEEU on policy development and stakeholder engagement right across DEFRA’s portfolio. I will shortly meet my right hon. Friend the Secretary of State for Exiting the European Union to discuss the enormous opportunities that EU exit presents for our food, farming and fishing sectors.
My hon. Friend is exactly right. The fact is that the money we get from the EU was British taxpayers’ money in the first place. The first thing I did on joining the Department was to agree with the Treasury that the current levels of farming and environment support should remain until 2020 to give our farmers continuity. [Interruption.] Of course, once we have left the EU we can ensure that our policies deliver for farmers while improving the environment. We want to work closely with industry stakeholder groups and the public to ensure that our policies are simple, good value for the taxpayer and free from the unnecessary constraints that we see today.
Order. The hon. Member for Huddersfield (Mr Sheerman), who is an extremely senior and cerebral Member of the House, keeps chuntering from a sedentary position about buried money—just in case colleagues had not heard what he was chuntering about. It would be good if he ceased chuntering.
I absolutely share the hon. Lady’s desire to see clean air—nothing could be more important. We are doing absolutely everything we can, and we will continue to be committed. As the Prime Minister has said, we will be nationalising the acquis communautaire, so the EU legislation will become UK law. Just today, as the hon. Lady may be aware, we have announced our clean air zone consultation.
Including for Nottingham.
Indeed, as my hon. Friend points out, a clean air zone in Nottingham—in the Nottingham South. We are doing that to try to ensure that we make some real, serious progress towards cleaner air and a clean and healthy environment for all.
I apologise: I should have referred to the right hon. Lady properly—Dame Caroline Spelman.
Absolutely, Mr Speaker—Dame.
I can totally give my right hon. Friend that reassurance. The UK, in leaving the EU, is absolutely determined to be more globally focused and, at home, to create sustainable policies that will make our food production and our environment more sustainable and better for our people and our economy. At the same time, we are determined to maintain and enhance our global leadership role in promoting sustainability for everyone in this world.
While the Scottish National party welcomes the Secretary of State’s commitment to maintaining pillar one EU funding until 2020, she should be aware that Scotland has some of the lowest payments in the EU; that is why the UK was given millions of euros in convergence funding. So, with the same enthusiasm she has demonstrated with every question today, will she deliver on her commitment to have this in place by the end of the year?
I welcome the hon. Gentleman to his place, and I look forward to many happy days of fruitful discussions with him in the weeks and months ahead. I can absolutely tell him that we will be reviewing that by the end of this year. We look forward to meeting him and Members of the Scottish Parliament to discuss the interests of Scotland. We have a huge policy review; there are enormous opportunities, and I look forward to Scotland being delighted at the opportunities presented by Brexit.
May I welcome the Secretary of State to her place? I am sure she has had discussions with the Department for Exiting the European Union about the impact of the 16% fall in the value of the pound since the referendum outcome. In the light of that, what financial drivers to replace the common agricultural policy will she prioritise, with the mutual support of that Department, to enable farmers to plan now for the future and to remain productive while making the necessary progress on environmental measures?
I am grateful to the hon. Lady for her remarks, and I also look forward to working with her. May I also welcome all her colleagues to their places? A number of them I have worked with over a period of time on energy matters, with great, fruitful results, so I look forward to a constructive relationship. In answer to her specific question, those are exactly the issues we are now looking at—the opportunities for revising the support we give our food and farm producers, to make sure we can grow more, sell more and export more great British food. It will take time to properly evaluate what that policy set should be, but I hope shortly to consult broadly. I have already had informal consultations, and I will be working closely with the industry.
Following the referendum, we are working closely with all those with an interest in food, farming and the environment to seize the superb opportunities we now have to develop policies specific to the needs of the UK. Alongside this, we continue to prepare for winter weather by testing our response capability, quadrupling the amount of mobile flood defences and making our critical infrastructure more resilient.
The Secretary of State seems such a nice lady, so I do not know what enjoyment she can take from the thought of a fox being torn apart. May I take it from the silence of her and her Department lately that she has dropped the idea of having a vote in this House on foxhunting?
My mum says my sisters are much nicer than me, but, that apart, my view is very simple. Like my predecessor and her predecessor before her, I remain committed to the Conservative manifesto promise that we will have a free vote in Parliament on a repeal of the Hunting Act 2004.
I am shocked by the Secretary of State’s mother’s observations. I have a vivid imagination, but I find that utterly inconceivable.
I am very happy to reassure my hon. Friend that we have a robust regulatory framework in place to ensure that shale exploration is carried out in a safe, sustainable and environmentally sound manner. The Environment Agency can undertake announced and unannounced inspections, and if there is any breach of a permit condition or a serious risk to people or the environment, it can take a number of enforcement actions, including the immediate ceasing of operations.
The damage caused by storms last winter cost about £5 billion. Thousands of homes and businesses were flooded and there was significant damage to roads and bridges. The then Prime Minister said that “money is no object”, but councils are still waiting. Allerdale, for example, is owed almost £220,000. How many councils are still waiting for the promised funds, and why?
I completely sympathise with all those who were flooded. It is an appalling thing to happen. Following the Boxing day floods, the Environment Agency carried out £500,000-worth of maintenance work in Bury to remove gravel, debris and blockages. A £1.5-million flood defence scheme was completed in November 2014, providing better protection for 164 homes and businesses in the Stubbins area of Bury. I will, of course, look into the point my hon. Friend raises about people who are still suffering from the damage done by last winter’s floods.
(8 years, 2 months ago)
Written StatementsThe Minister for the Cabinet Office and Paymaster General, my right hon. Friend the Member for Ipswich (Ben Gummer) and I would like to update the House on our progress with the national flood resilience review.
Last year the UK was hit by a number of extreme flood events, including in Cumbria, Yorkshire and Lancashire. Record rainfall and river levels have led to widespread floods severely affecting cities, communities and businesses.
The magnitude of these events means that we need to fully understand the scale of risk that the country is currently facing from river and coastal flooding. We need to take immediate steps to improve our resilience to this flooding.
As a result, the Government set up the national flood resilience review, chaired by the then Chancellor of the Duchy of Lancaster, my right hon. Friend the Member for West Dorset (Mr Letwin) and overseen by a cross-government national flood resilience review group. That review is being published today, setting out the actions to improve the nation’s resilience.
By using new plausible extreme rainfall scenarios developed by the Met Office in the Environment Agency’s flood modelling, we are now confident that the extreme flood outlines can be used as a robust planning tool for assessing flood risk.
As part of the review we completed a preliminary assessment of the resilience of key local infrastructure, such as energy, water, health, transport and telecommunications to flooding from rivers and seas. These are services our communities and businesses depend on.
The results showed around 530 facilities vulnerable to river and coastal flooding which could impact significant local communities. Working with the relevant utilities, regulators and Government Departments, a number of areas have been identified to improve resilience planning for this infrastructure. By Christmas 2016, the water and telecoms sectors will develop and implement plans for where temporary improvements can be made to the flood resilience of their infrastructure. These plans will ensure that the utilities obtain stock-piles of temporary defences in advance and have site-specific plans ready to deploy where they can be used. This is in line with current practice in the electricity supply industry.
In addition to these temporary defences all sectors with infrastructure at risk have agreed to develop and implement plans—where not already in place—to make medium-term permanent improvements to the flood resilience of their services to significant local communities.
While better understanding the risk helps us better prepare and protect infrastructure, effective response when flooding occurs is essential to minimise impact and protect lives. The review sets out actions that the Government and others will be taking to improve the response to flooding incidents by delivering a long-term rolling programme of improvements to our modelling, improving working across services and with local communities to strengthen our response, and improving our communication of flood risks.
The Government have prioritised investment in maintaining and improving flood defences in England with a record £2.3 billion six-year commitment to 1,500 schemes. This is set to better protect 300,000 homes and provide £30 billion in economic benefits by 2021.
On top of that, in this year’s Budget, the then Chancellor of the Exchequer announced a £700 million increase in flood defence and resilience spending, including a further £150 million for new flood defence schemes in Cumbria and Yorkshire. He also signalled that part of this funding would be used to respond to this review.
The findings published today commit an investment of £12.5 million to increase the Environment Agency’s stock of temporary flood defences and other incident response equipment.
The work identified in the review is continuing, including with local resilience forums. Additional funding support will be considered as further findings emerge.
Copies of the review have been placed in the Libraries of both Houses.
[HCWS135]
(8 years, 4 months ago)
Commons Chamber1. What assessment she has made of the potential contribution of deep geothermal as a source of renewable energy.
If you will allow me, Mr Speaker, may I take this opportunity to congratulate my right hon. Friend the Member for Hastings and Rye (Amber Rudd), the new Home Secretary, on her appointment, and also of course our new Prime Minister, the former Home Secretary? I wish them both great success. I also welcome the hon. Member for Brent North (Barry Gardiner) to his place; I think this is the first time we have had an exchange over the Dispatch Box. I wish the hon. Members for Wigan (Lisa Nandy) and for Southampton, Test (Dr Whitehead) very good luck in their futures, too; I have enjoyed our exchanges.
Owing to our geology, deep geothermal power is likely to make a small contribution to electricity supply. However, Cornwall is one area where the technology can work and I am pleased that this is part of the devolution deal for Cornwall. Deep geothermal heat has greater potential and we are supporting its development through the renewable heat incentive and through feasibility studies funded by the heat network delivery unit.
I thank the Minister for that response. Deep geothermal has the great benefit of being a baseload energy source that is not reliant on variable weather conditions, and, as the Minister points out, Cornwall is one place where great potential for geothermal lies. As she is aware, a scheme is being developed at the Eden project in my constituency. May I invite her to visit Cornwall to see for herself the huge potential that there is for geothermal development there?
I am grateful to my hon. Friend; nothing would please me more than a nice holiday in Cornwall right now. I am very pleased to hear that the EGS Energy and Eden project development is progressing well and, as he knows, it has the potential to produce power for about 4,000 homes and to make a very important contribution to the local community.
The truth is that the Ernst & Young renewable energy attractiveness index shows that the UK has fallen from the seventh most attractive country to invest in to the 13th. Following Brexit, that is only going to get worse, so what is the Minister doing to reverse that trend?
According to Bloomberg New Energy Finance the UK has been the fourth highest investor in clean energy globally for the past five years. Over half the total investment in the EU in 2015 occurred in the UK. We have a very proud record and we are set to exceed our own targets for generating renewable energy by 2020. That is a very proud achievement for this country.
Iceland has a fantastic football team, a free trade agreement of its own with China and is outside the EU. It is also the world’s leader in geothermal energy. Are we drawing on Iceland’s expertise to develop this industry in our own country?
If my hon. Friend is referring to the taskforce for the interconnector with Iceland, let me say that I am a huge fan of that, and there will be a statement shortly about the progress that he will be aware has been made between the leaders of the UK and Iceland. I seriously hope we will be able to make progress with all sorts of bilateral energy deals in the future.
2. What steps her Department has taken to increase the use of British steel in energy infrastructure projects.
Officials in my Department regularly meet developers to make clear the importance we place on sourcing UK content, including steel, in infrastructure projects. For example, EDF says it expects that a large proportion of the steel for Hinkley Point C sourced by its supply chain will come from UK companies.
I am grateful to the Minister for that answer. As she will know, the Corby steelworks plays a vital role in manufacturing steel tubes which can be used for fracking purposes. Does she agree it is very important that, wherever possible, we use British steel, not just because it supports the industry and the jobs it provides, but because the quality and safety of the product is far superior to that of foreign competitors?
I completely agree with my hon. Friend. I have had a number of meetings with the Department for Business, Innovation and Skills to discuss exactly this point. In its 2014 report “Getting ready for UK shale gas” Ernst & Young said there would be significant benefits for jobs and growth from a successful UK shale industry, including a projected need for over £2 billion-worth of steel.
15. The Sustainable Product Engineering Centre for Innovative Functional Industrial Coatings—SPECIFIC—national innovation centre in Neath Port Talbot relies on EU funding to use Tata British steel to develop buildings that are completely decarbonised. Such buildings lower household and business energy bills and help the UK to achieve its carbon reduction targets. Will the Minister support SPECIFIC in developing its use of British steel in its innovative projects, and replace any EU funds that might be lost as a result of Brexit?
My Department has been working closely with the Department for Business, Innovation and Skills to look at how we can help Port Talbot with its energy costs. We have already made announcements about how we are going to reduce the impact of carbon policies on the steelworks in Port Talbot, and we will continue to look at further ways of helping, including considering how energy-intensive industries across the board can reduce their electricity costs by changing the way in which they generate power.
Does my hon. Friend agree that British steel can be used in energy infrastructure projects not just in the UK but around the world? Last week on a visit to the Democratic Republic of the Congo with the International Development Committee, we saw the way in which Britain is leading in helping to provide energy infrastructure in that country.
My hon. Friend is exactly right. A good example of my own efforts to improve the use of UK steel has been to urge the Offshore Wind Industry Council to do more to promote UK content. The UK is one of the biggest deployers of offshore wind to date and we can certainly hope that, once we start building our export markets, British steel will form a part of those exports.
The Minister will be aware that the two Liberty steel plants, including Clydebridge in my constituency, will be heavily involved in the supply of turbine casings for tidal lagoon projects and tubular steel structures for offshore wind turbines. The renewables industry can provide a huge market for steel produced in Britain, which represents a huge opportunity for British businesses. Will the Minister commit to revisiting the Government’s approach to the subsidy of such renewables?
On the subsidies for renewables, we have made it clear that we must balance the need to keep costs down for consumers with the need of new technologies to be subsidised in order to deploy and keep their costs down. On offshore wind, we have made it clear that we see huge potential for the cost trajectory to go down. The offshore wind industry already has a target of 50% UK content, and I am certainly encouraging it to be more ambitious. That would absolutely include the use of British steel.
Hinkley Point is expected to be one of the largest construction projects this country has ever seen, and it will require more than 200,000 tonnes of steel. Does my hon. Friend agree that this will provide a huge opportunity for the British steel industry?
Yes, and I would expand that to include opportunities for the supply chain right across the UK. The Government are working with the industry to develop a demand model that will provide a capability and capacity picture for the UK against the demand. Part of the aim is to identify the forward requirement for the components, which will include steel. We are working closely with new nuclear developers to create that supply chain right across UK businesses.
3. What her policy is on the proposals of the Competition and Markets Authority on increasing competition in the energy market.
The Government welcome the Competition and Markets Authority’s final recommendations, which represent another step towards a competitive and effective energy market that works for all consumers, but it is key to understand that it is also the responsibility of energy suppliers to take action in response to the CMA’s recommendations, and we are meeting representatives of all the big six suppliers to urge them to do that.
I congratulate my hon. Friend on answering all the questions this morning and wish her the very best of luck with anything that might happen later. Does she agree that it is only by having greater competition in the market that we can drive down prices, especially for those living in fuel poverty?
My hon. Friend is absolutely right. I invite any of my hon. Friends on the Front Bench to jump up and answer any of these questions, should they wish to do so, but I am quite used to being the last person on the battlefield; I know my place.
The Government have taken a great deal of action to boost competition and to make switching easier for all consumers, and we have absolutely recognised that vulnerable consumers need additional help to engage with the energy market. To help to address that, we have provided about £3 million over the last three years to fund face-to-face support through the Big Energy Saving Network as well as £1 million of funding for this winter and £1.5 million of funding for a programme administered by National Energy Action over the next two years. This is a top priority for my Department.
The Deputy Leader of the House has other important responsibilities and she knows that. As far as the men sitting on the Front Bench are concerned, they all look absolutely fine and are doing the right thing—simply nodding in the appropriate places.
I thank the Minister for her kind comments this morning. I, too, enjoyed our exchanges—and the chocolate peanuts.
The CMA’s final report has been characterised as blaming sticky customers for not switching and condoning penalties on them if they continue not to switch. Does the Minister agree with that analysis?
I also enjoyed the chocolate raisins.
The evidence is clear that customers on expensive standard tariffs could save £325 by switching to the cheapest fixed deal. I do not think that the CMA is blaming consumers; it is recognising a slight inertia or unwillingness to switch. We are trying to urge people to switch. Between January and March this year, almost 2 million energy accounts were switched, over half of which moved to new suppliers, so the push to switch is actually getting through and we are seeing some progress.
I congratulate the Minister on all that she has done to encourage competition, which helps consumers to get a price that is better for them. That is in stark contrast to Opposition Members who often scaremonger about capacity markets driving prices up and scare my constituents into worrying about whether they can pay their bills.
My hon. Friend is exactly right. People all too often fail to recognise that the energy trilemma consists of keeping the lights on, keeping bills down, and decarbonising. He is right that the capacity market is there to ensure the security of supply and that is the payment we make to keep the lights on.
I echo the remarks made about the right hon. Member for Hastings and Rye (Amber Rudd) and wish her well in her new role as Home Secretary. I am glad that the Minister is here, because if she had not been, these questions may have been a little more rhetorical than usual.
The previous Prime Minister said in 2012 that he would legislate to ensure that all consumers were on the lowest tariff. We have had four years since then, and an extensive CMA report has come up with recommendations that are a little underwhelming in their scope. Does the Minister think that that will be enough to ensure that energy customers get the best possible deal?
That was a fair question. The CMA has carried out a detailed piece of research and we are committed to implementing all its recommendations as soon as possible. We have also made it clear that if we do not see change, we will take further steps. The hon. Gentleman is right. We will implement the CMA’s recommendations. We will see costs come down, competition go up, and better remedies for people on prepayment meters, but we will also be alert to other opportunities to get costs down for consumers.
I am glad that the Minister says that the Government will remain vigilant on this matter. The CMA found that 70% of customers of the big six domestic suppliers were on the more expensive standard variable tariff. Will she set a target for reducing that so that we know what success looks like and to determine whether the further action that she mentions is required?
As I have just explained, we do not want to set a specific target. However, we are successfully providing support to organisations that then go on to help people to switch. I love the idea that if anybody listening to this really wants to help their grandparents, neighbour or whomever, who may not have the confidence to switch themselves, they could go and help them switch, possibly saving them several hundred pounds. Instead of setting targets and blaming people when they are not met, we need to persuade people of the advantages of switching.
I pay tribute to the right hon. Member for Hastings and Rye (Amber Rudd) and congratulate her on her appointment as Home Secretary. Under her charge, the Department of Energy and Climate Change played an important role in securing the Paris climate agreement, and she was a strong and enthusiastic champion for it. Only two weeks ago, some might have suspected that today she would be more likely to be standing at the Dispatch Box saying goodbye to me, but in this place we are beginning to learn to expect the unexpected. She was always courteous and often actually helpful in our exchanges, and we wish her well in her new role.
The CMA report states for the past five years the big energy companies have been overcharging customers by more than £4,657,000 every single day. Can the Minister name any other swindle of such enormous magnitude where the Government would simply say, “It is the customer’s fault. People should have shopped around and switched to another provider”?
I am grateful to the hon. Gentleman for his question, but I completely refute the suggestion that the Government are saying it is the customer’s fault. We have been clear that we support the CMA’s recommendations; some huge changes are being undertaken. We are rolling out smart meters; simpler tariff rules are coming in; we will enable newer suppliers to pitch cheaper deals to inactive consumers; and there will be improved accuracy of quotes on price comparison websites. A range of remedies are being undertaken, and in no sense is there inaction on the part of this Government.
The hon. Lady said that she was going to be meeting the industry and the big six. The Government’s own figures state that in England 2.38 million households are living in fuel poverty. Her Department could today take action to force—not to talk to, but to force—energy companies to pass on changes in wholesale prices immediately to customers through their tariff structures. In that way, customers would benefit directly from the drop in wholesale prices. Why is she failing to do this?
I am afraid that just shows that the hon. Gentleman does not really understand how the energy market works. His party’s proposal to cap energy bills to consumers was a grave mistake, because we have seen wholesale prices come down and all consumers have benefited from that. I say again that this Government are absolutely committed to getting bills down for consumers at every opportunity, to implementing the CMA’s significant reforms and to looking at what else is available to be done.
4. What assessment she has made of the potential effect of the outcome of the EU referendum on the ability of the UK to meet its climate change commitments.
6. What assessment she has made of the potential effect of the UK leaving the EU on the ability of the UK to meet its climate change obligations.
The UK’s climate change commitments are grounded in the UK’s Climate Change Act 2008, which commits us to a reduction in emissions of 80% by 2050, from 1990 levels. Our membership of the EU has no impact on our commitment to this Act, as hon. Members will have seen in our decision to accept the Committee on Climate Change’s advice on the level of the fifth carbon budget just two weeks ago.
I thank the Minister for her answer, but she will know that the Committee on Climate change has said that tackling climate change is going to be more difficult outside the EU. The vote to leave does not give the Government a mandate to undermine the global transition to clean energy, so will she confirm that the UK will maintain its commitment to meeting our 2020 clean energy target, which was agreed as part of the EU’s climate and energy package?
The UK is a world leader in tackling climate change. The 2008 Act is a UK Act that we are absolutely committed to. We are outperforming on our target on energy renewables by 2020, and we remain committed to that.
What estimates has the Minister made of the impact there will be on energy costs in this country if we leave the EU?
In my view, leaving the EU will not make a difference to the innate cost of energy or the challenges for the energy sector. Most of our transactions for electricity generation are home-grown. There is a global market for gas. We have very good connections with European and non-European countries on interconnection, and we will continue to make commercial arrangements that are to the advantage of both the UK and those partners in energy.
I congratulate my hon. Friend on her ability to do the work of four Ministers with such panache. She will know that normally economists disagree about everything, but one of the few things they are agreed about is that the best way to achieve an objective such as that set by the Climate Change Act 2008 is through a price mechanism. However, if subordinate targets are set, that inevitably means a less efficient and more costly route. When we leave the EU, will we therefore be able to scrap unnecessary targets while maintaining that final target, and thereby reduce the cost to consumers of reducing emissions by 80% by 2050?
My right hon. Friend is right to point out the importance of keeping costs down while we decarbonise. The Department has always made it clear that every opportunity to decarbonise at the lowest cost to consumers will be taken. It is my view that leaving the EU will enable us to do that to an even greater extent than we have in the past.
Since 1990 the UK has decreased emissions by a third more than the EU average. We have now set a target for 2030 that implies a decrease of about double that which the EU put into the Paris INDCs—intended nationally determined contributions. Does the Minister agree that the real concern about Brexit might be that we will no longer be able to influence the EU to make more progress in decarbonisation?
I am entirely clear: European countries remain our friends and great allies, and we will continue to work with them. Leaving the European Union does not mean that we are suddenly leaving Europe in any sense, so it is my expectation and anticipation that we will remain closely aligned on global issues such as climate change, and that we will continue to play a leading role in the world’s attempts to tackle that great threat.
5. What assessment she has made of the potential policy implications for her Department of the UK leaving the EU.
At the heart of our energy strategy is the need to encourage new investment in the UK’s energy system, so my Department will continue to take action to deliver secure, affordable and clean energy for hard-working families and businesses. This work is already under way. Since the referendum we have accepted the recommendations of the Committee on Climate Change for the level of carbon budget 5. We have published details of our upcoming capacity market auction and confirmed that our contracts for difference allocation round will go ahead later this year.
In fact, the UK Government’s failure to attract investment to the energy sector has already undermined energy security and sustainability for generations to come, and the Brexit vote has plunged the sector into further insecurity. What are the Minister’s plans to ensure the future of green energy following the leave vote?
I do not recognise at all what the hon. Lady says about our failure to attract international investment—that is clearly not the case. We are attracting a huge amount of investment in offshore wind. We have the successful turbine blade plant that is being created up in Humber by Siemens, we have DONG Energy, and we have various international developers that are putting in bids and building new offshore wind facilities in the UK. Onshore wind in the UK has been a huge success story. Some 99% of all our solar installations have taken place since 2010 and I have already cited statistics about our share of the investment going into renewables, so, I am sorry, but I do not recognise what the hon. Lady says.
I congratulate my hon. Friend on confounding the doom-mongers. Does she agree that COP 22 in Marrakesh in November will be a wonderful opportunity for the UK to showcase its world-beating edge in renewables technology and our industrial base?
I could not agree more; my hon. Friend is exactly right. The UK is leading on the deployment of renewables—we are getting down the cost of those technologies through our policies—and through our commitment to decarbonisation and tackling climate change, and to showing the rest of the world how much we want to lead in this area, which we will continue to do.
Policy favouring small modular reactor technology offers affordable innovation in low-carbon energy, which is important in these days, as well as equally important manufacturing opportunities. Trawsfynydd in my constituency offers the ideal site for SMRs and, indeed, advanced reactor technology. Does not the Minister agree that the DECC process to select an SMR technology for generic design safety assessment should move forward with greater energy and a focus on a realistic shortlist of organisations?
Yes, I agree that we need to move forward with this. The Government have recognised the potential of small modular reactors, and we have announced that we will invest at least £250 million over the next five years in an ambitious nuclear research and development programme that includes the competition the hon. Lady mentions. We have committed to publishing an SMR delivery road map in the autumn to clarify the UK’s plans for addressing the siting issues that she mentions, as well as regulatory approvals and, vitally, skills issues.
7. What steps her Department is taking to reduce energy bills for (a) businesses and (b) households.
8. What steps her Department is taking to reduce energy bills for (a) businesses and (b) households.
The best way to deliver lower energy bills for businesses and households is to have a robust and competitive energy market. There are now over 40 energy suppliers in the domestic retail energy market, which is up from 13 in 2010, and independent suppliers have over 17% of the dual fuel market. Competition is improving, but we are not complacent, and we look forward to implementing the recommendations from the Competition and Markets Authority’s final report on the issue.
As a method of controlling its energy costs, CEMEX, which operates a large cement plant in my constituency, has adopted an alternative fuel, called Climafuel, which is derived from household waste and has the benefit of making use of material that would otherwise go to landfill. That is a great example of the circular economy. What steps can my hon. Friend take to encourage other energy-intensive industries to consider the use of alternative fuels?
I really welcome the initiative by CEMEX in my hon. Friend’s constituency. My Department is working closely with the Department for Business, Innovation and Skills, as well as with the energy-intensive industrial sectors, including the cement sector, on ways in which companies can reduce their emissions while maintaining their competitiveness, and the use of alternative fuels is an important part of that.
What steps does the Minister plan to take to improve the effectiveness of the energy supply market to help small and large businesses to expand in Wiltshire and across the country?
The CMA has said that the energy sector for larger businesses is competitive, but it has put forward some strong and sound remedies for microbusinesses to prevent automatic roll-overs without a business’s consent and to improve online quotations, competition and the service available to microbusinesses.
The Government have guaranteed an electricity price of about three times the wholesale price to EDF so that it will build a nuclear white elephant at Hinkley Point C. How on earth will that help consumers—businesses or households—to reduce their energy bills?
I am sure that the hon. Gentleman knows that we get about 16% of our electricity every day from nuclear. He will also know that our nuclear plants are all due to be retired by at least the end of the 2020s. Therefore, new nuclear forms a core part of how we replace our electricity supplies. Hinkley is a good deal for consumers. Of course, the mark-to-market costs change according to the wholesale prices, but the price of the electricity coming out of Hinkley by the mid-2020s is guaranteed, and that is very important so that we provide certainty. The Government do not take the view that we will just see what happens; we have to plan for the future. Why? Because electricity security is not negotiable.
Northern Ireland households and businesses face the highest electricity bills in the whole United Kingdom. Businesses still face some of the highest energy costs in Europe. What discussions has the hon. Lady had with the Minister responsible for enterprise, trade and industry to ensure that everything is done to drive these costs down for Northern Ireland customers?
The hon. Gentleman is right to raise this issue. My Department and others frequently consult Northern Ireland Ministers to ensure that all the benefits that can be passed on to Northern Ireland consumers are being passed on. I welcome his contribution to the debate.
Perhaps the hon. Gentleman has misunderstood. The cost of the project has not changed. The difference is because of wholesale prices. As there is a fixed price agreed for consumers, when forecasts and current wholesale prices change, so will the difference between the fixed price and the wholesale price. To be clear, the cost of the project has not changed. It remains a good deal for consumers—[Interruption.] The hon. Gentleman is chuntering at me from a sedentary position, but let us be clear: we cannot just wait and see. We have to make investment decisions and stick by them. We cannot simply magic electricity out of thin air; we need to invest, make decisions, and be committed to them.
9. What progress her Department has made on working with the major energy suppliers on the smart meter roll-out to ensure maximum benefit to consumers.
21. What progress her Department has made on working with the major energy suppliers on the smart meter roll-out to ensure maximum benefit to consumers.
Good progress has been made to date on the roll-out of smart meters, with more than 3.6 million meters installed across the country. There is evidence that these consumers are already saving energy. Research by British Gas shows that smart meter customers have reduced their energy consumption by an average of about 3% for both gas and electricity.
Having recently installed a smart meter, I can confirm that it is a very useful tool in managing energy consumption. Will my hon. Friend join me in encouraging my constituents to contact their energy supplier to explore how these very useful little gadgets can save them some money?
Yes. I can also tell my hon. Friend that they are very useful when going away for the weekend, as a parent, because if your electricity use suddenly goes up dramatically, you know the kids are up to something.
My hon. Friend is exactly right. We need to encourage consumers to have smart meters installed in their homes to make sure that they can enjoy the benefits that he sets out. I encourage his constituents, and all our constituents, to find out more about the benefits of smart meters, and to request an installation or visit the Smart Energy GB website.
Many of my vulnerable constituents are on pre-payment meters, so smart energy meters present them with a terrific opportunity to get better value for money. Does my hon. Friend agree that smart meters have a terrific role to play for pre-payment customers?
My hon. Friend is exactly right. Smart metering will transform the experience of pre-payment customers. Topping up pre-payment meters should become as easy as topping up a mobile phone. I welcome the fact that a number of energy suppliers are already offering or trialling pay-as-you-go services for their customers.
May I welcome the Secretary of State to her new post? She has done some very good work despite, as she knows, my disappointment with her views on Brexit. May I urge her to think again about smart metering being rolled out to every home in the country? May I also remind her that the research and innovation behind smart metering happened partly because of university co-operation across Europe? Contracts are already being withdrawn from British universities because of Brexit.
I am sorry to disappoint the hon. Gentleman, but I am not actually in a new post; I am in my old post. Secondly, I do not recognise any damage to our smart metering roll-out as a result of contracts not being awarded to universities. I have not seen any evidence of that. Thirdly, it is our continued plan that all households and businesses should be offered a smart meter by 2020.
Will the Minister confirm whether her Department is to be abolished? If so, who will take forward the work in progress on smart meters in Cabinet?
The right hon. Gentleman will have to wait and see, but I can tell him that the commitment to our energy trilemma, smart meters and all our polices will remain as strong as ever.
Smart meters can reduce our energy usage, but there were 43,900 excess winter deaths last year and a “Panorama” investigation revealed that more than 9,000 of them were directly related to living in cold and poorly insulated homes. Will the Minister explain why there has been an 80% drop in the installation of major energy efficiency measures in British homes over the past four years, and will she agree to have urgent talks with Lord Adonis to ensure that energy efficiency is a top priority for the National Infrastructure Commission?
I agree with the hon. Gentleman that fuel poverty in this country has to be tackled, and that is an absolute priority for my Department. He may be aware that we have launched our consultation on the energy company obligation to ensure that we refocus it on the fuel-poor and do everything we can to ensure warmer homes.
10. What assessment she has made of recent trends in the rate of switching in the retail energy market.
I am happy to tell my hon. Friend that switching was at a four-year high in 2015, with 6.1 million electricity and gas switches across the UK. That is an increase of about 15% since 2014. Some 2 million further gas and electricity switches have already taken place between January and March of this year, with 52% of those customers moving to newer suppliers.
Will the Minister confirm that the Government are specifically ensuring that those who are in most need or who are financially challenged, including those in my constituency and across the UK who are in need of lower energy bills, are benefiting from an efficient and easier switching regime?
Yes, I can assure my hon. Friend that the Government are acting to do just that. In fact, customers on expensive standard tariffs could save £325 by switching to the cheapest fixed deal, which is why we continue to encourage customers to switch through our big energy saving network initiative.
When trying to compare tariffs, most of them remain incomprehensible, which particularly affects my most vulnerable constituents, including the elderly, the disabled and those with mental health issues. What measures will the Minister take specifically to support the most vulnerable?
The hon. Lady is exactly right that this is a very important area. I reiterate that over the past three years the big energy saving network has reached about 350,000 vulnerable consumers, helping them to reduce their bills by switching. Last year we ran a successful national TV and press advertising campaign, Power to Switch, and more than £38 million was saved by 130,000 households switching energy supplier. We continue to support good organisations such as Citizens Advice, which often hosts such initiatives and works face to face with vulnerable consumers to help them with the process of switching. I urge people who are struggling with fuel bills to give it a try; it really is not too difficult.
11. What assessment she has made of the potential effect of the Government’s decision on the level of the fifth carbon budget on investment in the low-carbon economy.
13. What assessment she has made of the potential effect of the Government’s decision on the level of the fifth carbon budget on investment in the low-carbon economy.
The UK’s system of carbon budgets provides the long-term certainty that businesses need to invest in our low-carbon economy. The Government announced last month that we would accept the advice of the Committee on Climate Change on the level of the fifth carbon budget. That announcement has been widely welcomed by the business community.
As my hon. Friend would expect, we are already busy working on that plan with other Departments, businesses, consumers and civil society. For example, we are already in discussion with the CBI, the Aldersgate Group and Energy UK among others to arrange specific stakeholder events, ensuring that our emissions reduction plan is built from the ground up, with input from a range of stakeholders.
Westinghouse nuclear fuels is the second largest employer in Fylde and produces nuclear fuel for 15% of the UK’s electricity production. What assurances can the Minister give that this Government will continue to support the UK’s domestic nuclear fuel industry and take us to a low-carbon future?
Nuclear power is a vital part of our work to build a secure, affordable and clean energy system to keep the lights on in the decades ahead. The Westinghouse facility in my hon. Friend’s constituency has a crucial role to play, providing the fuel that powers our nuclear fleet, as well as employment to many in his constituency.
12. What assessment she has made of the effect of the outcome of the EU referendum on investor confidence in the UK power sector.
20. What assessment she has made of the potential effect of the outcome of the EU referendum on levels of overseas investment in the UK energy sector.
The Government have engaged extensively with investors since the EU referendum, sending a clear message that the UK remains open for investment and business. I am very clear that the UK is an attractive environment for investment in energy. My Department will continue to take the steps needed to deliver secure, affordable and clean energy for families and businesses across the UK.
As one former leadership contender to another, I commiserate with the Minister over the events of the past week and wish her well in the reshuffle today.
The manufacturers organisation the EEF told the Environmental Audit Committee, which I chair, that the decision to cancel the carbon capture and storage competition in the autumn statement came as a huge shock and damaged investor confidence in the industry. We also heard from Siemens, which has invested £160 million in the wind industry in Yorkshire, that the referendum result means it is facing a whole new set of unanswered questions. What steps is the Minister taking to bring confidence to investors in low-carbon industries?
In fact Siemens has recommitted to its investment in Hull, which is great news for that area. I had a meeting a few days ago—it seems like a year ago—with the Offshore Wind Industry Council to talk about confidence in investment. Its members all remain committed to the UK, and EDF has reaffirmed its commitment to the UK.
Specifically on CCS, as I have said many times in this Chamber, we remain committed to looking at what our future strategy for CCS will be. The fact that the competition did not make the cut in terms of taxpayer value for money at the last spending round does not mean that we are ruling out CCS. We believe that it continues to play an important role in the future of our decarbonisation strategy.
The recent EU referendum result has of course created widespread insecurity in this market and, indeed, the wider economy. There is now an increasing number of possible options from the Brexit negotiations, each leading to a number of regulatory and market options for the UK’s relationship with the EU, with each of these having differing implications for the investment in and trade of energy. What steps has the Department already taken to guarantee that overseas investment in our energy sector is protected, whichever of the outcomes is taken?
I believe that we will see huge opportunities in leaving the European Union. As is always the case in the United Kingdom, we will take great steps to ensure business confidence and ensure that those who have invested in this country will be able to use our very sound contract law and investor base to be able to continue to fruition with their projects.
I am sure the Minister will agree that the EU exit vote has caused uncertainty. I am sure that this new and slightly unexpected Government, with the paint still drying on the signs, will want to boost investment and development in the energy sector. Will the Minister tell us how the Government will create incentives for investment and boost consumer confidence?
I think the hon. Lady will accept that my concern about investor confidence led to a very significant move on my own part to make sure that we had certainty in the UK. The new Government will absolutely be keen to reassure investors and to make sure that this remains a very strong place to invest.
14. What steps her Department is taking to ensure that energy consumers are on the best value energy tariffs.
The most effective way for energy consumers to make sure that they are on the best value tariff is to shop around. I encourage all consumers to engage in the market and to make use of the Ofgem-approved price comparison websites that are readily available. We have taken action to make it simpler and quicker to switch supplier, and we are working with Ofgem to move to reliable next-day switching.
I thank the Minister for that response. Many people remain unaware of how easy it is to switch energy providers and save money. What actions is her Department taking to encourage people to look into switching providers?
My hon. Friend is right to say that we need to make sure that people are aware not just of the benefits of switching, but of how easy it is to do. We are taking steps to raise awareness through the big energy saving network, Big Energy Saving Week and the Power to Switch campaign. We are also working to improve the switching process for customers. We launched the energy switch guarantee last month to give consumers confidence to switch, and we are working with Ofgem to deliver next-day switching.
17. What steps her Department is taking to ensure security of electricity supply in winter 2016-17 and in future years.
19. What steps her Department is taking to ensure security of electricity supply in winter 2016-17 and in future years.
Our top priority is to make sure that families and businesses have secure energy supplies, and therefore to ensure that National Grid has the right tools in place to manage the system. Our energy security has been strengthened by reforms of the capacity market, including holding an auction this coming winter for delivery in 2017-18.
As the promoter of the Warm Homes and Energy Conservation Act 2000, I am very interested in energy supplies in winter. Will my hon. Friend do all she can to encourage investment in new gas generation?
The capacity market is the most cost-effective way to make sure we have the infrastructure to cope with unexpected demand peaks. In May, we committed to buying more capacity and buying it sooner. New build capacity is eligible for 15-year agreements, providing a secure revenue stream and thereby encouraging new gas infrastructure.
Yesterday I launched a new all-party parliamentary group for marine energy, to promote the fantastic potential from our tumultuous seas of energy, whether tidal, stream or wave. Does my hon. Friend agree that when the Hendry review comes out in November this year, the Government should respond as fast and as positively as possible to make us a world leader in what could be one of the great sources of energy in the world?
We certainly recognise the potential that tidal lagoons could bring to the UK, which is why we have commissioned this independent review. We are absolutely committed to providing clean, affordable and secure energy that we can rely on now and in the future. This review will report in the autumn and will help us to determine what role tidal lagoons could play in that.
22. What steps she is taking to ensure that protected areas remain protected from the development of shale gas.
Strong protections for sensitive areas are already provided by the existing regimes. Those regulations ban fracking in national parks, areas of outstanding natural beauty and other sensitive areas to a depth of 1,200 metres. In response to our consultation on 28 June, we have confirmed that fracking will not be permitted from wells drilled at the surface of our most valued areas, including sites of special scientific interest.
I am grateful for the Minister’s response. Petroleum exploration and development licences have been granted in areas with green-belt and nature conservation status in my constituency. Can she reassure me that her recent announcement about protection from surface drilling will extend to the green belt and sites of special scientific interest?
I can reassure my hon. Friend that the planning process will take into account all issues related to sensitive areas. I can also tell her that fracking will not be permitted from wells drilled at the surface of areas such as national parks, the broads, areas of outstanding natural beauty, world heritage sites, sites of special scientific interest, Ramsar sites and Natura 2000 sites.
T1. If she will make a statement on her departmental responsibilities.
As things stand, I am delighted that the hon. Member for Brent North (Barry Gardiner) and I are able to take forward the enormous job of the Department of Energy and Climate Change. I am quite sure that there will be further announcements later that we all look forward to hearing.
Worryingly, my constituency is very polluted in parts of Botley and central Eastleigh. What progress is being made to ensure that all cars imported to this country meet our rigorous emissions standards?
I absolutely assure my hon. Friend that the Department for Transport is looking closely at transport and vehicle emissions. Further measures will be brought forward this autumn on meeting the increasingly stringent emissions requirements.
Some 23,000 businesses in the UK have solar panels on their roofs. If proposals in the current review of business rates go ahead, instead of paying £8 per kW, those companies could end up paying between £43 and £61 from next April. Up until last week, the Minister’s Department did not even know about that. Will she find out why her officials have been sleeping on the job, and speak to Ministers in the Department for Communities and Local Government to get this mess sorted out?
I am not aware of any sleeping on the job. If the hon. Gentleman wishes me to liaise with DCLG I will look into that, but we are certainly not asleep on the job.
T2. I have never known my hon. Friend to sleep on the job and I wish her well in the reshuffle. On the north side of the River Mersey, Fiddlers Ferry power station has closed down, while on the south side we have the blight of the new wind farm being built. Will my hon. Friend reassure my constituents in Frodsham and Helsby that the scientifically significant Frodsham marshes will not be blighted if fracking goes ahead?
We have more than 50 years of drilling experience in the UK, as well as one of the best records in the world for economic development alongside protection of the environment. All onshore oil and gas projects, including shale gas, are subject to the planning system, which addresses impacts such as traffic movements, noise, working hours and so on. National planning guidance states that any new development must be appropriate for its location and must take into account effects on health, the natural environment and general amenity, as well as any adverse effects from pollution. I hope that I can reassure my hon. Friend that his constituency will be protected.
T4. The Swansea Bay tidal lagoon project is hugely important not just to Swansea and south Wales but for potentially similar projects in Newport. When will the Minister have news of the independent report, and what is the timetable for making the decision?
The hon. Lady will be aware that Charles Hendry was appointed to look into the whole case for tidal lagoons and the contribution they could make to our future energy security, but also, importantly, the cost trajectory. His report will come out later this year. I cannot put a specific time on that, but we are acting just as fast as we possibly can.
T3. What assessment has my hon. Friend made of progress on Hinkley Point following the result of the EU referendum?
Good progress continues to be made on Hinkley Point C. When I visited the site a few months ago, it was very apparent that a huge amount of work is already going on. As my hon. Friend will have seen, EDF has reaffirmed its full commitment to the project following the result of the referendum on 23 June.
Does the Minister agree that scrapping the Department of Energy and Climate Change could only be taken as a signal that the new Government attach less significance to these important issues?
I absolutely do not agree with the hon. Gentleman. The assumption that we have to have a Department for something in order to meet objectives on it is not one I agree with at all.
T5. I have just been sent a report from Southend-on-Sea citizens advice bureau calling for a fair deal for prepayment meter users, who seem to be getting a second-class service. Given that they are the most vulnerable people, will my hon. Friend see to it that her Department looks again at the system?
I completely agree that prepayment meter customers get a rough deal, with a far smaller choice of tariffs and suppliers than customers who pay by other methods. That is why we are supporting recommendations by the Competition and Markets Authority to make it easier for prepayment meter customers to switch supplier, and to introduce a safeguard tariff cap for those customers until competition in that segment of the market significantly improves.
May I too wish the hon. Lady well in the reshuffle? We worked closely together on early intervention policy, and I know how committed she is to that.
My constituent Margaret Graham recently attended my surgery. She was at her wits’ end over protracted dealings with her energy supplier, npower, which has continually failed her since it made a huge error resulting in a very large overpayment. Since my intervention it has apologised and offered £150 in compensation, but this has been going on since 2013. Can the Minister assure me and the House that energy companies will treat their customers fairly and with respect, and does she agree that they should be held fully to account for their failings?
I completely agree with the hon. Lady—she is exactly right. Energy suppliers must behave properly towards their customers. There are too many complaints and not a good enough service, and that has to change.
T6. I congratulate my hon. Friend on fielding all the questions over the last hour, and on the manner in which she has conducted herself over the past week. I believe that she has done herself a great deal of credit, and I add my voice to those wishing her well later today. Following the historic vote by the British people to leave the EU, the UK once again has full control over our VAT. One way we could help households across the UK with high energy bills would be to cut VAT on energy. Will the Minister support calls for such a move?
I am grateful to my hon. Friend, and to prove that collective responsibility has once again taken effect, I reassure him that VAT is a matter for the Treasury. I agree about the need to reduce the number of households in fuel poverty, which is why we are consulting on proposals to focus more of the energy company obligation on those most in need. We have laid regulations that will ensure continued support for more than 2 million households through the warm home discount.
The Minister suggested that there has been no loss of confidence in investment in clean energy as a result of the vote to leave the EU. Will she explain why the Swedish firm Vattenfall is reviewing its investment in the UK, which will put £5.5 billion of investment in offshore wind at risk?
I made it clear that continued, enormous investment is coming to the UK from offshore and onshore investors. I am not aware of the hon. Lady’s particular point, but the UK remains an attractive place to invest. The Government are doing everything they can to ensure that we get even more overseas investment in our energy infrastructure.
What steps is my hon. Friend taking to ensure the effectiveness of the capacity mechanism in bringing forward new gas-fired power stations such as that at the Carrington site?
The capacity market is incredibly important for ensuring secure energy supplies. We recently announced that we will bring forward an earlier auction for 2017-18, to secure more capacity. We hope that that will enable us to get over this short-term issue where wholesale prices are so low that the viability of power stations is at risk. By having that capacity mechanism firmly embedded in our energy supply, we believe that we will bring forward new, attractive gas investment through longer-term contracts that will benefit the UK energy consumer.
The Government have estimated that the capacity auction this winter could put £36 on customer bills. Given that today the Minister has talked about keeping down customer bills, how does she think that that auction will affect those bills?
Our central assessment is that the impact on bills could be up to £28, but our impact assessment also shows that if we did nothing, further power station closures could add a further £46 to consumer bills. We believe that this auction is good value for consumers, and it provides the energy security on which we all rely.
What opportunities does my hon. Friend see for both inward investment and selling our services abroad as a result of breaking free of the shackles of the EU?
I personally believe there will be huge opportunities. We now have the chance to negotiate free trade deals with the rest of the world. We have the opportunity to determine policies for energy without the need to constantly look for EU state aid. The opportunities for the future are enormous, and I look forward to being able to promote UK plc in the world.