Energy and Environment, Food and Rural Affairs

Debate between Ed Miliband and Clive Betts

Thursday 27th May 2010 Commons Chamber

[Edward Miliband]

My right hon. Friend, who has a distinguished record on these matters, is right.

We face a third problem with low-carbon transition: planning, which my hon. Friends have mentioned. I am afraid that both sides of the coalition subscribe to the idea that they should abolish the Infrastructure Planning Commission. Its abolition is absolutely the last thing that we need. For years, the thing that has held up large-scale energy projects is planning. We have worked with business to establish a system to provide certainty in which directions are set by accountable politicians and specific decisions are resolved independently. Business welcomed it and the CBI said that it was

“vital for the strategic infrastructure”,

but now the Government want to scrap it. And who gets to make the decision on new nuclear plants under the new system? None other than the Secretary of State, because politicians have retaken control, but he has a policy in which even the coalition agreement does not have confidence. On the essential test of the long-term direction on climate change—on how we decarbonise our energy supply—I fear that the Government are already failing.

[Mr Betts]

I should like to raise the issue that my right hon. Friend the Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) mentioned: the proposed £80 million loan for Sheffield Forgemasters to which the previous Government agreed. Is it not vital, if we are to develop a new nuclear industry in this country, that British industry is given the best chance to compete for work in building new nuclear reactors? Is it not worrying not only that the Secretary of State for Energy and Climate Change will take the decision on nuclear, but that his right hon. Friend the Secretary of State for Business, Innovation and Skills will take the decision about the review of the grant to Sheffield Forgemasters?

[Edward Miliband]

Let me welcome you to the Chair, Mr. Deputy Speaker, and welcome you back to the House.

I agree with my hon. Friend the Member for Sheffield South East (Mr Betts), and he prefigures the next part of my speech, because the second test is whether we can show that low carbon is about not just climate change, but the future of our economy. To his credit, the Secretary of State talked about the importance of an industrial strategy.

In the last 18 months, the previous Government pursued an active industrial strategy. Four of the world’s five biggest offshore wind manufacturers all said that they were coming to Britain: Siemens, GE, Clipper, and Mitsubishi. Nissan said that it would make electric cars in Sunderland. We also created the chance to be at the centre of the nuclear supply chain through Sheffield Forgemasters. Those things happened not by accident, but because we had a plan that recognised that even in a market economy, Government must nurture new industries that the private sector will not invest in on its own.

In their manifesto, the Liberal Democrats promised £400 million of Government investment in shipyards in the north of England and Scotland, to convert them to wind energy. We no longer hear anything about that; we do not hear of it in the coalition agreement or in the Gracious Speech. It is worse than that, as was indicated in the interventions on the Secretary of State’s speech. Now the Government say that every spending decision since January will be reviewed. That includes decisions on grants to companies such as Mitsubishi to make wind turbines; port investment for offshore wind manufacturers, which is very important; money for Nissan to build electric vehicles; and the £80 million loan to Sheffield Forgemasters regarding the nuclear supply chain.

Remember, the Liberal Democrats said at the election that they agreed with Labour that spending should not be cut this year, so I have to say to the Secretary of State that this uncertainty is a total betrayal of their position at the election. They went round the country telling people that there should not be spending cuts this year; they agreed with us. People will have voted Liberal Democrat, apparently confident in the knowledge that the Liberal Democrats were with us on the question of industrial investment.