Swansea Tidal Lagoon

Lord Brady of Altrincham Excerpts

Tuesday 8th March 2016 Westminster Hall

[Mr Graham Brady (in the Chair)]

Many colleagues have indicated that they would like to speak in this debate, so it might help if I point out that we anticipate Divisions in the Chamber at 3.50 pm. It is entirely up to hon. Members whether they wish to continue the debate after 3.50 pm. If so, we will have to come back after a suspension.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

I beg to move,

That this House has considered the potential economic benefits of the Swansea Tidal Lagoon.

The 2015 Welsh Conservative manifesto said:

“We know how important Wales is to the UK’s energy security…We’re entering into the first phase of negotiations on a Contract for Difference for Swansea Tidal Lagoon to recognise Wales’ potential to become a major hub for tidal and wave power. This project will create thousands of jobs and attract millions of pounds worth of investment into Wales. We will continue to support strategic energy projects in Wales to boost the Welsh economy and help secure Wales’ energy future.”

So far so good. It is unusual in this day and age for a manifesto commitment to have the widespread support of quite so many interested groups. They include the UK Government, all parties in this House, the Welsh Government, all parties in that Assembly and local government in areas where the lagoon might be constructed and other areas in Wales that will reap the benefits of it. Environmentalists by and large see it as a clean form of renewable energy; economists across the UK and further afield recognise the long-term value of the project; and, almost without exception, the local communities affected directly or indirectly support the proposal. I can remember few, if any, commitments from any party’s manifesto that have such widespread and cross-party support.

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[Several hon. Members rose—]

[Mr Graham Brady (in the Chair)]

Order. Before I call Mr Flynn, it may be helpful to say that, because a large number of hon. Members have indicated their desire to speak, I propose a five-minute limit for Back-Bench contributions in the debate.

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[Mr David Jones (Clwyd West) (Con)]

Does the hon. Gentleman not agree that the difference between nuclear power projects such as Hinkley—which he is dilating on at the moment—and the proposed technology at Swansea bay and around the Welsh coast is that in lifespan, while nuclear projects are finite and have potential unforeseen consequences in terms of disposal of waste, tidal lagoons provide a clean source of power that, built on a Victorian scale, will last for many decades if not centuries?

[Mr Graham Brady (in the Chair)]

Order. Mr Flynn, before you respond, I hope you will use your last two minutes to focus more on the tidal lagoon side than the nuclear side.

[Paul Flynn]

Of course. The right hon. Gentleman is absolutely right about every comparison we make on what tidal has to offer. It has cleanliness as a source of power, it is ours—it is British—and it is eternal. It does not have to come from anywhere else. There is a simplicity in taking moving water, getting it to turn a turbine and then generating electricity.

It is time now for this dream to come true. The Government are into investing in huge projects. They have spent £1.2 billion on their railway project, but they have not built an inch of track yet. Those projects they have taken on are long term, and some of them have failure written into them, but this project has success written into it. Tidal power has simplicity and works in several other ways, whether it is through a lagoon or some other project.

We should look at the serious objections there have been in the past 40 years to building a barrage, particularly from those in the natural world who say that building a brick wall across the Severn will have all kinds of repercussions for the natural world. That is not a problem that occurs with lagoons. In order to provide electricity for the future that is green, non-carbon, eternal and everlasting, it must be tidal power.

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[Carolyn Harris (Swansea East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Brady. I congratulate the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart) on obtaining the debate. The issue is close to my heart, and the heart of my hon. Friend the Member for Aberavon (Stephen Kinnock).

We have heard that Tidal Lagoon Power is entirely privately owned, so when in February the Department of Energy and Climate Change announced an independent review of the tidal lagoon project I was shocked and disappointed, because the Government have been in talks with the company for more than a year. What stone has been left unturned? Surely we must all acknowledge that the tidal lagoon is a new approach, which will bring considerable environmental and social advantages to every region in the United Kingdom. There are plans for future lagoons. Tidal Lagoon Power is developing five full-scale tidal lagoons to employ the blueprint that needs to be established in Swansea bay. Between them, those projects would represent more than 15 GW of installed capacity, 8% of the UK’s total electricity requirement, and more than £40 billion of capital expenditure. Each project would secure a home-grown power supply for 120 years. Those are phenomenal figures.

The economic case is astounding. Six tidal lagoons would contribute £27 billion to UK GDP during construction, creating nearly 36,000 jobs on average, and 71,000 at the peak. Once in operation, the fleet would contribute £3.1 billion per year to UK GDP and sustain or create as many as 6,500 jobs. What region can afford not to welcome that? What Government can afford to risk that potential? As to the UK supply chain, Tidal Lagoon has set a target to achieve 65% of project spend in Swansea bay on UK content; with 50% of that staying in Wales. Wales cannot afford to miss this opportunity. There are phenomenal financial implications, with turbines, generators and turbine houses to be manufactured locally in Pembroke, Llanelli and Swansea. Detailed plans are in place for a turbine manufacturing plant in Swansea docks—a part of the city that has been left for a considerable time, since the decline of the dock—heavy fabrication in Pembroke and generator manufacture in Rugby and Newport. The turbines and generation package for Swansea bay are worth £300 million with almost all the parts to be UK-sourced.

As for employment, up to 1,900 full-time equivalent jobs will be created and supported during construction, and up to 180 will be created and supported through the operational life of the lagoon. There will be up to £316 million of gross value added during construction. So it goes on; the figures just keep coming. The project is a win-win all round, for Swansea East, Aberavon, the Gower, Wales and the UK—we all gain from every aspect of the project. The region needs the project, and so does my city—and the UK. It is an opportunity for us to become global leaders in a new and exciting technology; let us not let anything stop that.

[Mr Graham Brady (in the Chair)]

I propose to take the winding-up speeches at 3.30.