Ukraine: Gas Supplies

Baroness Worthington Excerpts

Wednesday 2nd April 2014 Lords Chamber

[Baroness Verma]

My Lords, I am, as always, grateful for my noble friend’s intervention, because it enables me to lay out exactly what the department is doing. We are trying to streamline the planning processes so that we do not have unnecessary hurdles in the way. The Government have established the Office of Unconventional Gas and Oil to help to develop the shale gas industry in the UK. My noble friend will be aware of the new tax allowance recently announced by the Treasury, which will reduce the tax on a portion of a company’s production income from 62% to 30% at current rates. However, as with all projects, including shale, it must be subject to rigorous scrutiny through the planning system and the regulators and there must be proper engagement with local communities.

[Baroness Worthington (Lab)]

My Lords, I am glad to hear that the Minister now appears to accept that linking gas demand with Ukraine is not far-fetched but a very important issue. In reality, we are more reliant on coal from Russia than we are on gas: 70% of our coal is now imported, 40% of that from Russia. Will the Minister confirm that we must maintain every effort to support home-grown energy, including wind power, to reduce our dependency on both expensive gas and imported coal—which, I might add, would improve our air quality substantially?

[Baroness Verma]

As the noble Baroness is aware, the Government are encouraging a diversity of supply. I am sure that she will join me in congratulating Siemens on investing in offshore wind in Hull, generating 1,000 jobs.