Pension Investments

Debate between Baroness Vere of Norbiton and Lord Howell of Guildford

Tuesday 23rd January 2024 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I am not aware of the detail of the amendment to that Bill tabled by the Labour Party, but we are taking a very measured approach to market intervention. It is clear to me that we need to do this and, as I said previously, it is evolution not revolution. However, there are many ways in which the Government are focusing on UK high-growth companies in particular. I point the noble Lord to LIFTS, or long-term investment for technology and science—investment vehicles tailored to direct contribution schemes. The Government will coinvest in or support those schemes up to £250 million. The bids have already been submitted, and we expect those funds to be operational and investing in UK growth companies by mid-2024.

[Lord Howell of Guildford (Con)]

Does my noble friend agree that, whatever the pension funds invest in—and we certainly need them to get back to the 40% they once put into Britain, rather than today’s 4%—and wherever they put their money, they are not going to be attracted by very long-term, politically high-risk projects which turn out not to be an investment at all? Is that not a reason why we should encourage giving priority, in our nuclear recovery, to smaller, quick-build machines, rather than sinking all our money into very long-term large structures which may not work even when they are built?

[Baroness Vere of Norbiton (Con)]

My noble friend makes the very important point that investment is always about diversification. We need a wide range of projects and vehicles to encourage the UK economy, and some of those may indeed be of the sort he refers to.

HGVs: Charging and Refuelling

Debate between Baroness Vere of Norbiton and Lord Howell of Guildford

Monday 22nd May 2023 Lords Chamber

[Baroness Vere of Norbiton (Con)]

The Government are taking a two-phased approach to this, and those phases are happening concurrently. The first is that we need to discuss with industry stakeholders exactly how they feel the strategy for the rollout of zero-emission vehicles will go, particularly at the heavy end. That is why we will publish the zero-emission HGV infrastructure strategy later this year, once we have been able to discuss it with those stakeholders. The Government are confident that the grid can cope with the increased demand, and the next step is to ensure that depots can connect to it. We are working with the DNOs to find the most cost-effective solution to that.

[Lord Howell of Guildford (Con)]

My Lords, can we pause and reflect for a moment on the implications of this situation? As has already been suggested, would not a fleet of HGVs all topping up with electricity add a colossal load to our electricity supply and transmission system, even to the point, some say, that the existing cables could melt, causing local outages? Where is this enormous extra volume of electricity going to come from and where is the investment to generate it; and where is the investment for the National Grid transformation required to get any of this to work?

[Baroness Vere of Norbiton (Con)]

My noble friend raises a very important point. That is why, as part of the decarbonisation of HGVs, the Government are investing £200 million in the zero-emission road freight demonstrator programme, which will look at all the different technologies available. For some vehicles, battery electric will be the best option, but for others we expect hydrogen fuel cells to be far more relevant. Therefore, we need the zero-emission HGV infrastructure strategy, which will examine what a network of green hydrogen sites would look like, as well as the impact on the grid and where on it the additional electricity will be needed.

Rail Cancellations and Service Levels

Debate between Baroness Vere of Norbiton and Lord Howell of Guildford

Thursday 1st December 2022 Lords Chamber

[Baroness Vere of Norbiton (Con)]

We are working carefully with Avanti. The next uptick in services will happen on 11 December, when we will see 264 services daily on a weekday, which is up from 180 now. Unfortunately, I fear that noble Lords will not see an improvement that day or indeed on any of the subsequent days, because the services will be beset by strikes and other industrial action. Many things are going on here. The Government will absolutely hold Avanti to account for the things within its control, but we need others to hold people to account for things not in its control.

[Lord Howell of Guildford (Con)]

My Lords, the Minister referred to strikes making things much worse, and of course they are. However, I wonder, listening to some of the reasons for industrial action, whether the Government have presented the overall context of the situation we are in nationally in quite the right terms. The other day, the noble Lord, Lord Skidelsky, reminded us that we have drifted into what is very near a war situation, with inflation, shortage and the obvious need for everybody to face for a time—for the duration—reduced living standards and increased deprivation. That is clear. Yet here we have all the arguments about the need for catching up in real terms, improving contracts, asserting a new deal and so on and so forth. This does not seem the right language for the crisis we are in. Is there not a case for explaining more clearly to the many groups who feel they are oppressed in their living standards that this is something we all have to face for a while until we can get out of two or three of the biggest crises that have faced us since 1944?

[Baroness Vere of Norbiton (Con)]

I am grateful to my noble friend for his contribution. I note that at the recent fiscal event, the Chancellor highlighted the difficult economic circumstances that the country is currently in. However, I reiterate that there is a fair balance to be achieved here, although that balance is affordable only if we are able to achieve the sort of modernisation that our railway system needs, where a seven-day operation is not dependent on the approval of the workforce, just as major supermarkets nowadays would not close on a Sunday. Therefore we need to be able to take those steps towards modernisation, and we believe that then there will be a landing zone when it comes to fair wage increases for workers.

Electric Vehicles: Supporting Access

Debate between Baroness Vere of Norbiton and Lord Howell of Guildford

Monday 6th June 2022 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I will write to the noble Lord about those differences in VAT rates, that being a matter for the Treasury and one on which I am not briefed today. However, I would say that the Government have announced a local EV infrastructure fund pilot of £10 million, which will look at technically and commercially innovative proposals coming from local authorities to help those people who do not have driveways to be able to charge their cars near their home.

[Lord Howell of Guildford (Con)]

My Lords, the noble Baroness, Lady Worthington, is quite right that more access to electric cars would be very nice. However, in the immediate situation, for those who cannot afford to buy an electric car, or a new car at all, does my noble friend agree that the quickest and cheapest way to get down the cost of oil, gas and transport—with a knock-on for food and inflation as well—is for much more oil and gas to be pumped into global markets quickly? Did she notice that, last Thursday, the meeting of OPEC sounded much more co-operative about doing just that and having a major impact on prices? Does she welcome that?

[Baroness Vere of Norbiton (Con)]

Energy security is a priority for Her Majesty’s Government. Great Britain already has highly diverse and flexible sources of gas supply and a diverse electricity mix.

Transport: Zero Carbon Target

Debate between Baroness Vere of Norbiton and Lord Howell of Guildford

Tuesday 27th April 2021 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I would like to reassure the noble Baroness that, if she is on the strategic road network, she should be no more than 20 miles from an electric vehicle charger. I would also like to reassure her that the Government have this in their sights. Of the £1.3 billion the Government are investing in EV charging points, £950 million is looking at future-proofing electricity capacity on the strategic road network, because we recognise that this will be a key way to recharge both electric vehicles and, in certain circumstances, freight vehicles.

[Lord Howell of Guildford (Con) [V]]

My Lords, I declare an interest in energy, as in the register. Is not the real bottleneck in this whole programme the existing lithium ion batteries and their sheer weight and extensive mined metals content, including cobalt, copper, nickel, manganese and of course refined lithium—not to mention their very heavy carbon emissions in manufacture, large costs and long charge times? Can we be assured that the Government will encourage the new solid-state battery production, which requires far less electricity, as well as using fewer metals and being safer, cheaper, lighter, cleaner and quicker charging? Can we ensure that we secure reliable supply lines from Asia, where these new batteries are now mostly produced?

[Baroness Vere of Norbiton (Con)]

The Government are of course focusing on our supply lines from Asia, but also on what we can do domestically. Recent experiences have shown us that being overreliant on any particular country is possibly not the wisest idea. The Government are investing £318 million in the Faraday battery challenge. Part of that is the amount of money we are investing in the Faraday Institution, which within two years has become a world leader in electrochemical energy storage research. There are 400 researchers there, looking at batteries with longer range; they are lighter, faster charging, durable, safer and sustainable. Allied to that, we will look at the supply chain for the constituent elements that need to go into those batteries.

Airport Expansion

Debate between Baroness Vere of Norbiton and Lord Howell of Guildford

Monday 2nd March 2020 Lords Chamber

[Baroness Vere of Norbiton]

This Government are anti-aviation emissions, not anti-flying. That is the entire point. The Government are working incredibly hard to make sure that we get emissions down by 2050. I have already mentioned the transport decarbonisation plan, but we are also spending £2 billion on aviation research and technology. I ask the noble Baroness whether, if all planes were netzero, she would still be against flying.

[Lord Howell of Guildford (Con)]

My Lords, the decision of the courts is very interesting and the Paris agreement is extremely important. We have to go much further than the Paris agreement if we are to make a proper impact on global emissions, through assistance to countries that are increasing their emissions very fast. Surely the decision of this country on how our infrastructure, planning and development should accord with our climate aims and zero emissions is a matter for Government policy and not for the courts. If the courts are to decide this, we will have very little chance of having any success at all.

[Baroness Vere of Norbiton]

My noble friend raises an important point. I go back to what I said earlier: the courts did not conclude that airport expansion was incompatible with climate change, simply that the ANPS did not take into account the items that I mentioned earlier. The noble Lord is right that it is government policy to decarbonise our transport system, which is what we are doing.

Transport Infrastructure

Debate between Baroness Vere of Norbiton and Lord Howell of Guildford

Tuesday 11th February 2020 Lords Chamber

[Baroness Vere of Norbiton]

The Minister does not agree. I take it that the noble Baroness, Lady Jones, is not a fan of the Prime Minister, but the sort of words she uses are somewhat inappropriate. On the substance of her question about the environment and ancient woodlands, noble Lords have had the opportunity to discuss those issues in significant detail. HS2 is committed to no net loss of biodiversity. We believe that it is an important part of achieving net zero emissions by 2050. Lost wildlife habitat will be replaced and, as I have said in your Lordships’ House, on the stretch from London to Crewe 43 ancient woodlands will be affected, but only 20% of each. That is out of a total of 52,000 ancient woodlands. I see the noble Baroness, Lady Young of Old Scone, who will say, “But that is salami slicing”. That is the thinnest slice of salami, which will not make even half a breakfast.

[Lord Howell of Guildford (Con)]

My Lords, I declare an interest, as in the register, and as a former Transport Secretary, of which there are quite a few in this House. Does my noble friend recall that over 40 years ago, Germany developed an elaborate system of bus-type vehicles which travel by rail as well as road? I welcome the part about buses but our roads are very crowded, and there is still a big network of completely disused rail tracks in this country. Will my noble friend undertake that this technology, which is quite well advanced, will also be included in our great transport revolution?

[Baroness Vere of Norbiton]

I thank my noble friend for raising that issue. It is of course critical that where tracks already go into major towns or cities—some might be Beeching line closures—the opportunity for reopening those lines may not take the form of heavy rail; there are many new and innovative ways. I know that the one my noble friend referred to is from 40 years ago, but nowadays there are some lightweight, low-cost alternatives to building heavy rail, which could effectively, and with good value for money, get people to where they need to be.

Maritime Security

Debate between Baroness Vere of Norbiton and Lord Howell of Guildford

Thursday 5th September 2019 Lords Chamber

[Baroness Vere of Norbiton]

I am not entirely sure on what evidence the noble Baroness suggests that £9 million is not sufficient. It is the case that as Brexit happens and we leave the European Union we will look at our EEZ. We will be responsible for all vessels in our EEZ and it is likely that we will have to take a closer watch of what is going on within our coastal waters. It is right that we have fewer assets to deploy. However, and this is very important, there are now far better technologies available to maintain our watch over our coastal waters. There is a working group, led by the new director of the joint maritime security centre, looking at the threats and risks following Brexit. It will make sure that we have vessels deployed appropriately.

[Lord Howell of Guildford (Con)]

Following the question from the noble Lord, Lord Hannay, are not events in the Persian Gulf, with £30,000 Iranian speedboats buzzing around our ships, rather an excellent example of applying the constant call of the noble Lord, Lord West, for more frigates and for more flexibility in our naval dispositions, as well as of the dangers, as in the past, of the great leaders of naval strategy deciding to put all of our cash into vast aircraft carriers, which might have their uses but are not much good in this kind of situation?

[Baroness Vere of Norbiton]

Our maritime assets, particularly our frigates, are under review. We are looking at how we may want to strengthen that in future if we can. However, in the Strait of Hormuz we already have HMS “Montrose” in operation, and HMS “Duncan” will replace it. HMS “Kent” will maintain a presence and HMS “Defender” is also available. Not all these will be working within the international maritime security construct, but we are able to respond.

HS2

Debate between Baroness Vere of Norbiton and Lord Howell of Guildford

Monday 20th May 2019 Lords Chamber

[Baroness Vere of Norbiton]

My Lords, there were many questions there; I will perhaps answer a couple of them. On 10% of the West Midlands labour force being on the trains, I do not recognise those figures at all. In any event, when the entire network is built, it will take passengers from all over the country—that is the point of it. On the second point about the business case, works are currently under way and HS2 is reaching agreement with its suppliers in order that a full business case can be published later this year. It is important to understand that a full business case includes costs and benefits, but also—just as importantly—the disruption, or lack thereof, that the construction would have.

[Lord Howell of Guildford (Con)]

My Lords, I declare an interest as an adviser to Japanese high-speed rail. Is the Minister aware that the Japanese have long argued that these figures are interesting for the southern section of HS2 but that it would have been much wiser to have started with the big expenditure in the north and worked downwards? This is exactly the pattern they followed in Japan. Does she accept that this point is wisely made in the very good Lords report published last week, and that any funds that now are meant to be used on the north should not be drained away by the very large expenditure that looks to be developing on the southern section?

[Baroness Vere of Norbiton]

My Lords, I join my noble friend in welcoming the report of the House of Lords Economic Affairs Committee. We will respond to that in detail, before the Summer Recess, once we have had a chance to consider all the issues therein. As for whether we should have started in the north, obviously we recognise that the infrastructure in the north needs investment; that is why we are investing a total of £48 billion across the network, which is a record amount. The northern powerhouse rail project in particular will be very much welcomed. However, it is in a much earlier stage of development. Our intention is to crack on with HS2 phase 1 and phase 2a, and then phase 2b will link into the northern powerhouse rail, thereby connecting the entire country.