Energy: Annual Statement

Baroness Liddell of Coatdyke Excerpts

Tuesday 27th July 2010 Lords Chamber

[Lord Marland]

I totally agree with the point made by the noble Lord, Lord O’Neill, on a carbon price floor. As we have committed to in this document, that is something which we will be reviewing with great urgency. We intend to legislate early in 2011 in the energy Bill, having reviewed it during the Recess. The problem with the carbon price, as he quite rightly identifies, is that it has ranged from €30 per tonne in July 1989 to €16 per tonne in July 2009. It is such a volatile price that it makes planning very difficult, particularly in the noble Lord’s sector, so we will be looking at it.

[Baroness Liddell of Coatdyke]

My Lords—

[Lord Maples]

My Lords—

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[Lord Marland]

Perhaps I might draw the attention of my noble friend Lord Maples to the 2050 pathway document. It quite clearly indicates that the best way forward is a mix that includes nuclear, as I have said earlier, and many other types of electricity generation to fulfil the nation’s requirement, which is expected to double by 2050.

[Baroness Liddell of Coatdyke]

My Lords, I am learning fast what megaphone diplomacy means in this House. First, I take issue with the noble Lord, Lord Jenkin, about the position of the previous Administration on nuclear power. I was one of the Energy Ministers during that first 10 years, and I bow to no one in my support for the nuclear industry. In fact, I was the one who began the process that led to the decision on a new generation of nuclear power.

Can the Minister give some indication of what measures are being taken to reassure the nuclear industry about the new generation of build? It is not enough to say that there will be no subsidisation. The mood music has not been good. In the Statement, the noble Lord referred to the fact that the Government should act as a catalyst for private sector investment but, at the same time, the strongest part of the Statement on nuclear says: “nuclear can go ahead”. If we are to meet our climate change goals, nuclear must go ahead. It will not if the environment towards it is negative. It is a major investment.

The Minister is much more knowledgeable than I am about the climate for investment. However, there are the decisions on Sheffield Forgemasters and the Infrastructure Planning Commission, the coalition with the Lib Dems and the issues around planning—all of us who remember the Sizewell B inquiry know the difficulties around planning for new nuclear. Given that mood music, what reassurance can he give to me and to the House that he will meet with the industry and give powerful signals that will show the scientists—the particle physicists and the engineers who are needed to secure a future for this industry—that it can go ahead?

[Lord Marland]

I congratulate the noble Baroness for her question. I think that it is her first question and I thank her very much. The fact of the matter is: I am not going to say any more than I have. I have said it until I am almost blue in the face, and we have said in writing that we are committed to nuclear. I am not entirely sure that we are inheriting a paragon of all virtue, as she indicated, or that the Labour Party in the previous Government was so committed to new nuclear. I do not see the country awash with new nuclear power stations. The good thing is that we have three consortia who have announced 16 gigawatts of nuclear energy to be built by 2050. The good news is that it will encourage 30,000 jobs.