Energy Bill [Lords]

Debate between Lord Grayling and Grant Shapps

2nd reading
Tuesday 9th May 2023 Commons Chamber

[Grant Shapps]

The hon. Lady is absolutely right about skills, and the skills gap is very important. I recently had a summit with our French counterparts that was specific to skills in the nuclear sector, where there are very similar issues. We are working with our colleagues in the Department for Work and Pensions, the Ministry of Defence and the Department for Education on exactly the subject of skills that she raises. My hon. Friend the Member for West Aberdeenshire and Kincardine is working actively with them on this Bill, and I know he would be delighted to discuss that with the hon. Lady.

[Chris Grayling (Epsom and Ewell) (Con)]

Will the Secretary of State give way?

[Grant Shapps]

I will just make a small bit of progress, and then I will give way again.

Secondly, we will amend the Bill to deliver on the support package for energy-intensive industries, protecting them from high electricity prices. This will bring prices for UK businesses in line with global competitors, preserving jobs and investment in the strategic foundation industries—steel and chemicals, for example. Bringing down prices will also remove a barrier to those traditional carbon-intensive industries decarbonising, in some cases by switching to electrification.

[Grant Shapps]

I will give way in just a moment. Let me make a little bit more progress.

Thirdly, we will table amendments on hydrogen transport and storage, alongside the hydrogen production measures already in the Bill. Finally, we will propose further amendments related to carbon dioxide storage licensing to help us maximise the extraordinary potential—I talked about it before—under the UK continental shelf, which is so important.

[Chris Grayling]

My right hon. Friend knows my views on sustainable aviation fuel, and I will come back to that should I catch your eye, Madam Deputy Speaker. On the issue of small modular reactors, there is no way that a country such as France would allow a non-French firm to be the backbone of its nuclear industry. We do not want to take such an isolationist view, but it would be a travesty if the work in this field did not bring jobs, expertise and industrial success to this country. Can my right hon. Friend give me an assurance that he will make sure we do not make the mistakes of the last Labour Government, who sold off our nuclear industry, and will he encourage the development of a domestic nuclear industry?

[Grant Shapps]

My right hon. Friend will know that the world’s very first civil nuclear reactor was Calder Hall in Cumbria, and we led the world, but, as he said, we switched off or stopped investing in nuclear power. That was a great shame, because we are now having to work to get back to 25%, which is our objective. He is right in another way as well, because for several decades one company has been responsible for running what are essentially small modular reactors in the nuclear Trident fleet under the water, and successfully refuelling once every 25 years. We have a certain lead in this area, and it is very important that we get on with small modular reactors. That is why we are having a very brief competition, with the results coming by October.