Climate Change, the Environment and Global Development

John McNally Excerpts

Wednesday 10th July 2019 Commons Chamber

[John Mc Nally (Falkirk) (SNP)]

It is a pleasure to follow the hon. Member for Stirling (Stephen Kerr). We were talking about batteries earlier, and before the hon. Gentleman made his speech my hearing aid battery was working; it has now run out. [Laughter.]

There has never been a truer saying than “Out of the mouths of babes”. As the effects of global warming and pollution become alarmingly evident, wise young voices in our communities are calling for us to take urgent action to take care of our common home, all united by the same concerns and by the threats that we ourselves—we human beings—are posing to our planet. Children in Scotland and across the globe believe that adults in power have not been doing enough to address environmental issues. Some positive steps to cut down on plastics and attempts to reduce carbon emissions are seen as too little, too late.

The young Swedish national Greta Thunberg went on strike, refusing to go to school until Sweden’s general election in September, to draw attention to the climate crisis. Her protest has captured the imagination of her country, which has recently been plagued with wildfires during its hottest summer since records began. Greta has made her message global; she even came to Westminster to spread the word in the UK. She has shown us that the actions of just one person can make a difference.

I have visited schools in my area, including St Bernadette’s RC Primary School and Denny High School, and the local Baptist church. I have furnished the schools with Greta’s book and had fantastic conversations with the children about deforestation in the Amazon rain forests, the loss of orangutans and the use of palm oil in providing us with probably cheap food. They were so aware—they knew everything that was going on. They even had a mural of Greta up in the classroom. It was so impressive. Greta’s message was not lost. Those children care, and many of us in this House—most of us, I think —care and are taking some action.

Over the years, I have fought to highlight issues of pollution. I have made a stand against fracking to protect the purity and the worldwide reputation of Scotland’s water and land. Like others, I have voiced my anger at the plastic pollution all around us, from nurdles found in our waterways to the plastics that make up our clothes and are present in toiletries and cosmetics. I thank the local charities and voluntary groups I work with for keeping up the pressure and raising the profile of the detestable waste that those products cause in our natural world.

As the hon. Member for Stirling and others mentioned, the natural historian Sir David Attenborough has apologised to younger generations for the damage that we have done to their planet. We are so fortunate and privileged to have that great man speaking out and, we surely hope, being listened to by the decision makers. On the sustainable development goals, he said:

“Over the next two years there will be United Nations decisions on climate change, sustainable development and a new deal for nature. Together these will form our species’ plan for a route through the Anthropocene.”

This crucial time presents an opportunity to reach an agreement on the political will and the resources needed to address the crisis together and to make certain that no one is left behind.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

The hon. Gentleman, a fellow member of the Environmental Audit Committee, is making an excellent speech. Does he agree that the COP process is vital? We expect to hear that the UK will host the 26th COP next year, 2020. Does it not need to be a zero carbon COP, when we get global agreement on this, so that we can pursue our own international development goals and ensure that everyone shares the burden globally?

[John Mc Nally]

I absolutely agree with what the hon. Gentleman says. We serve on the Environmental Audit Committee, where we have received invaluable evidence in the past two or three years. I agree that we cannot just set a target; it has to be achievable at a very early stage. We simply do not have the time, and I will speak more about that as we go on.

We have been put to shame by the urgency demanded by the new breed of young environmentalists. They have had enough of taking baby steps. They know that time is running out, and I agree with them. In October 2018, the UN’s Intergovernmental Panel on Climate Change warned us that we have only 12 years to make the unprecedented and unparalleled changes needed to prevent a rise in global temperatures of more than 1.5° C. Mike Thompson, the head of carbon budgets at the Committee on Climate Change, told the EAC that it is now or never on that. Exceeding this by even half a degree risks global catastrophe, with flooding, fires and famines, which other hon. Members have mentioned. Those are clear and challenging messages that we simply cannot fail on.

A decade ago, in 2009, Scotland set itself the world’s most ambitious greenhouse gas reduction target, when the Scottish Parliament voted unanimously to cut the country’s emissions by 42% by 2020—next year. The latest statistics show that we remain on track to achieve that. In her recent speech at the Scottish National party conference, our leader, Nicola Sturgeon, acknowledged the situation’s urgency. Her speech was inspiring, strengthening my resolve and that of many others, from all parts of the community, not just politics, to do what we can to make this a dominant issue.

How are we helping? Thanks to a green initiative, I and fellow MPs are forming climate youth ambassadors groups to generate public interest in initiatives we can help with locally. As with the SERES education for sustainable development youth ambassadors programme in South America, we aim to build a cohort of facilitators to inspire, mobilise and grow community resilience to climate change. UNESCO is recruiting youth ambassadors, again with the aim of developing organisers and future leaders to build this resilience to climate change. We in Scotland certainly want to be part of the environmental ambitions. This is very much about, “If you can change the world, get busy in your own little corner.”

[David Linden (Glasgow East) (SNP)]

My hon. Friend is making an amazing speech, talking about young ambassadors. Will he join me in paying tribute to the children at Sunnyside Primary School in Craigend, who have led the way with their NaeStrawAtAw campaign? It is important to place on record our thanks to these young people, who have realised that generations before them have let them down. Even at the local level they are having a massive influence. Will he pay tribute to them?

[John Mc Nally]

I could not agree more with my hon. Friend, and what he says just exemplifies what we need to do as politicians to make their voices heard. We cannot just have empty voices in this place—we need to take action.

On 26 June, most of us here met up with “The Time Is Now” mass lobby. Thousands of people from nearly every constituency in the UK came to Westminster to meet us. Like others, I was inspired by constituents of mine who had travelled here to meet up with each other and with MPs. I sincerely hope that our constituents went away feeling that they were being listened to and that their message and concerns had been made clear. What united the firefighters, schoolchildren, doctors, church groups and many others who came to Parliament? It was, quite simply that they care. They care about our warming climate and they care that our natural world is in decline.

In Scotland, we have already been leading the way with our public rejection of fracking, our strides forward in investigating alternative energy sources and our consultancy on climate change, and our programme of change within the Scottish Government is working really well. We are consulting and we speak to people; we do not just take it for granted that people are not listening.

In Scotland, the purity of our water and land is integral to the quality produce we sell and trade to other countries. As a publicly owned body, Scottish Water is a company that brings many admiring looks from elsewhere in the UK and globally; I was delighted to attend an event this morning, where we heard how it, too, is looking to own its own water system. The people at this morning’s meeting looked on at us enviously, thinking, “Why can people not run a utility properly? It is all part of us and it is all part of a community. Why should we not own these things?” I take this opportunity to congratulate the staff of Scottish Water, who protect the reputation that we enjoy.

But that is not enough. Nothing happens in isolation. Around the globe, toxic air affects many towns and cities; plastic-strewn rivers and seas are commonplace; sea levels are rising; and millions are being displaced. Closer to home, as the Environmental Audit Committee has heard, some of our best-loved species, such as hedgehogs, puffins and red squirrels, are now hard to find or threatened by climate change and/or invasive species in their natural habitat. Although biodiversity is declining across the planet, the UK as a whole is one of the worst offenders, ranking 189th out of 218 countries for biodiversity intactness. We are well below our neighbours Germany and France, and only slightly above the USA. Our joint bid with Italy to host the next major climate summit in 2020 will be another opportunity for Scotland and the rest of the UK to show global leadership. The next step will be to put in place the policies that get us to net zero as soon as possible.

Let me finish—and I will finish; I know the hon. Member for Stirling appreciates some good humour—by taking this opportunity to wish the ethical stock exchange in Edinburgh the very best for a successful future venture. It is an idea whose time has come. Investors who care about our common world can be reassured that due diligence is being carried out on the companies to be listed. Project Heather, the group setting up the new exchange in George Street, adds some “magic dust” to the uniqueness of the stock exchange, because it, too, wants to make a difference to the world we live in, now and for the long term. The stock exchange promises to list only companies that have a positive impact on society and the environment. I hope that some, or all, of Scotland’s famous investment trusts, as well as, for example, the National Trust and church organisations, take the opportunity to put their money where their mouth is and invest in the courageous step taken by the people leading the company. The stock exchange will meet the ever growing demand for ethical investments, and offer a clear pathway and peace of mind for investors.

Ideas such as the ethical stock exchange can clearly demonstrate that companies have a capital and a social conscience. For example, the famous ice cream producer Mackie’s has produced an all-electric ice cream van. This is probably the best day to talk about ice cream, although it might be the worst day to talk about ice cream, because everything is so dry. That ethical step shows how a company is looking to the future and giving out a message. The most important message is that Mackie’s is aware of what is going on in the world. I think kids who are going to buy an ice cream will flock to that van. Perhaps that is an advert for the company— I do not know, but I certainly hope it is.

[David Linden]

Other brands are available.

[John Mc Nally]

Maybe they will get a pokey hat ice cream—I don’t know.

Citizens and our youth are rightly demanding action, and as politicians we are duty-bound to listen and respond. Like many people throughout the UK, people in my Falkirk constituency are participating in active travel and using the last mile. We have active bikes. I recently visited Stockholm, where I was amazed at the stand-on and sit-on electric scooters. It was quite hazardous, I have to say—they did not seem to have any control, so it was quite chaotic—but nevertheless the demand was there. I would like to see that happening more. We must support youngsters in their efforts to develop a decent, modern planet to live on.

Net Zero Carbon Emissions: UK’s Progress

John McNally Excerpts

Thursday 28th February 2019 Commons Chamber

[John Mc Nally (Falkirk) (SNP)]

I am delighted to follow the hon. Member for High Peak (Ruth George), and I congratulate the hon. Members for Oxford West and Abingdon (Layla Moran) and for Brighton, Pavilion (Caroline Lucas) on securing this long-overdue debate. Surely we have seen evidence of global warning this month in the record high temperatures for February, as well as in the disturbing reports of melting polar ice caps. Collapsing ice at the poles is a powerful indication of a warming world.

Tackling carbon emissions is absolutely a matter of urgency, and achieving the necessary emissions reductions for the world that we leave to our grandchildren will require the collective efforts of all peoples and decision makers on a global scale. Young people recently walked out of lessons at their schools in protest against what they see as the lack of interest in and commitment to green issues. Their action showed how aware communities are of this important topic. We as individuals must all do our bit and show leadership, and our debate on our UK carbon emissions is an important step. We must explore cross-party support and progress towards net zero carbon emissions.

The threat of climate change is more real than ever, and it absolutely must be taken seriously. The Inter- governmental Panel on Climate Change has estimated that to obtain net zero carbon emissions, or carbon neutrality, global society will have to balance its carbon emissions with carbon sequestration by 2050. Failure to limit global warming to 1.5° or less could result in sea levels rising as well as the occurrence of natural disasters such as extreme weather conditions. This in turn would result in the mass displacement of people and the disappearance of entire ecosystems such as tropical coral reefs.

The UK signed up to achieve carbon neutrality by 2050 when the EU ratified the Paris agreement in 2016. Under the Climate Change Act 2008, the UK Government committed to an 80% reduction in carbon emissions by 2050. Under their 2017 clean growth strategy, they pledged to work with other countries towards achieving net zero carbon emissions in the second half of this century. The Government have also promised to use legislation to provide legal clarity that this target will be met at an appropriate point in the future. I would like some clarity on that point. Are these plans working?

The Scottish Government’s 2018 Climate Change (Emissions Reduction Targets) (Scotland) Bill raised their commitment on carbon emission reductions to 90% by 2050, a target that the UK Government Committee on Climate Change currently considers to be at the limit of feasibility. In March 2016, the then United Nations climate change secretary, Christiana Figueres, said that Scotland’s progress on climate change had been “exemplary to the world”. We have now established a climate change Bill that will set new statutory targets for reduction by 2050, moving into a net zero emissions target as soon as possible. Scotland has long been recognised for punching above its weight on tackling climate change. Roseanna Cunningham, the Cabinet Secretary, has stated:

“To be successful, we must create an environment in which industries can transition smoothly to a low or zero-carbon future.”

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

Will the hon. Gentleman give way?

[John Mc Nally]

I am very sorry, but I do not have time.

It is worth mentioning that a new stock exchange is opening next week in Scotland, and I am delighted to have been invited to the opening in Edinburgh. Bourse Scot is focusing on social and environmental companies. This new social and environmental exchange will involve rules on the activities of firms, with the staff requiring participating firms to prove what they claim about social and green outcomes. Bourse Scot hopes that the renewables industries will see it as a place to raise funds. For me, the opening of that stock exchange plainly demonstrates that there is long-term certainty and confidence in Scottish ambitions across all parties, and that Scotland is indeed a centre for excellence. I know this cannot be achieved overnight, as it is a generational challenge. We are moving in the right direction, and the quicker we move in that direction, the better.

I think the UK Government are politically and geographically broken. If we want to change the world, we must follow the girl who was mentioned earlier and get busy in our own little corner, and Scotland is doing exactly that.

UN Climate Change Conference: Government Response

John McNally Excerpts

Wednesday 16th January 2019 Westminster Hall

[John Mc Nally (Falkirk) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Betts. I congratulate the hon. Member for Cardiff North (Anna McMorrin) on securing this highly topical debate. She is an unswerving member of the Environmental Audit Committee, and I am always impressed by her knowledge, her astuteness and the way she expresses herself in that Committee, which is ably chaired by the hon. Member for Wakefield (Mary Creagh), who is also here today.

Some relevant points have been made by other speakers, particularly regarding missed targets and the UK Government’s lack of political will to face up to their responsibilities. Climate change should lie at the heart of every choice that those in power make, for those decisions affect every individual on our planet. We only have one planet—we cannot make any more—and we should be mindful of that every time we make a decision. In the face of the present climate emergency, the possibility of the UK’s 1970s status as the dirty man of Europe returning is becoming more distinct, and I am very fearful of that, as is everyone who attends the Environmental Audit Committee and other committees on climate change.

As has been mentioned, only in October last year the United Nations Intergovernmental Panel on Climate Change warned that we have 12 years to make the unprecedented and unparalleled changes needed to prevent global temperatures rising by above 1.5°C. Exceeding that by even half a degree risks global catastrophe, including floods, fires and famine.

Scotland has long been a leader in the fight against climate change, and we will continue to forge the way in tackling the crisis. The UK Government should look to us, and probably to Wales, for a successful holistic approach to what will be terrible blights on our community if we do not act. A decade ago, in 2009, Scotland set itself the world’s most ambitious greenhouse gas reduction target when the Scottish Parliament voted unanimously to cut the country’s emissions to 42% by 2020. The latest statistics show that we remain well on track to achieve that.

In 2012, Scotland established the world’s first climate justice fund, seeking to mitigate the damage caused by climate change on the world’s poorest communities. By 2021, £21 million will have been distributed through the fund, which is now supporting 11 projects in Malawi, Zambia, Tanzania and Rwanda. Before the United Nations climate change conference, the First Minister announced a further £200,000 for action to tackle climate change. That will be provided to the body supporting the implementation of the Paris agreement. As well as that, the decarbonisation of Scotland’s electricity sector and reductions in emissions from waste have seen us outperform the UK overall, as emissions continue to fall year on year to nearly half of 1990 levels.

Scotland is committed to achieving a substantial reduction in emissions as soon as possible. We have already reduced emissions by 49% compared with 1990. We have met our annual statutory targets for three years running, and are outperforming all countries in western Europe except Sweden. By 2030 we will have the equivalent of 50% heat, transport and electricity consumption supplied from renewable sources—achievable ambitions to do the right thing. A landmark Scottish energy efficiency programme was rolled out in 2018. We will phase out the need for petrol and diesel cars and vans by 2032 through an expansion of the vehicle charging network in urban and rural Scotland, investment in innovative solutions and, most importantly, leadership on procurement from the public sector.

The Scottish National party remains concerned about how climate change will be tackled after the UK’s departure from the EU. The UK Government must give—I hope to hear this from the Minister—clear assurances that there will be no reduction in standards and targets, or that appropriate powers will be devolved to the Scottish Parliament. That is the best solution. I look forward to the Minister’s comments on that very point.

It is clear that the consequences of climate change are environmental at first but can quickly become political and military. The long-term security implications of climate change must therefore be considered when forming defence policy. I look forward to encouraging more green business. It was a pleasure to help with the recently announced Scottish stock exchange plans. I was asked to further the awareness of the Bourse business development through my network of friends and companies that I know. The ethics and environmental and social impact objectives of the Euronext ambitions for long-term investment are sound corporate practice. That will open up excellent opportunities for all companies that wish to grow within Scotland.

I thank the Minister and hope that she has listened to what I have said. Mother Teresa always said, “If you want to change the world, you begin in your own little corner.” I believe that in Scotland we are doing that.

Fireworks: Public Sales

John McNally Excerpts

Monday 26th November 2018 Westminster Hall

[John Mc Nally (Falkirk) (SNP)]

It is a pleasure as always to serve under your chairmanship, Mr Howarth, particularly in this important debate. I sincerely congratulate the hon. Member for Warrington North (Helen Jones) on securing the debate and on her in-depth understanding, knowledge and informative contribution. I do not know whether I can add much to the speeches already made, and particularly to the hon. Lady’s, but my contribution to the discussion will centre on both the impact that bonfire night has on animal welfare and how our emergency service professionals respond to the consequences of unauthorised fireworks being set off before, during and after 5 November.

These problems occur despite the fact that every year in Scotland the Scottish Society for the Prevention of Cruelty to Animals puts out clear warnings on how these explosives can cause misery for pets and their owners. Irresponsible individuals continue to engage in this behaviour year after year. The petition has received about 300,000 signatures, of which some 930 were from my Falkirk constituency. That is a declaration, if ever there was one, of people’s concern for animal welfare.

As all of us here know, creatures domestic and wild have heightened senses; that has already been mentioned. Their hearing is far better than ours, and they cannot rationalise as harmless fun the explosive bangs and crashes that they hear. To them, a rocket going off is deafening and terrifying; it means imminent danger. Fireworks can literally scare animals to death. The explosions trigger blind panic and can result in animals running into the path of traffic. Instances have been recorded of wild birds, including swans, flying into pylons to their injury and death—a horrific thought.

Horses and cattle have charged in terror straight into barbed wire and through fences, badly injuring themselves. That causes great stress to farmers, who look after their livestock with great care. It is also their livelihood, and I am all too aware from the farmers I know personally how much they worry about the impact that fireworks can have. The preparations that farmers make to protect their animals should very much be taken into account when the Government consider whether to change the existing laws.

My research shows that most vets are in favour of tighter restrictions on fireworks, because of the sheer volume of animals that they have to treat for firework-related injuries, as well as the severe stress experienced in the lead-up to bonfire season. Many pet owners spend money on medication for their animals in an attempt to keep them calm, or they remove them from their own area to a safe area. Constituents have told me that their whole family become distressed at this time of year.

One lady I know very well says that her family dog, Ruby, was recently scared into a panic by fireworks being let off at 10 pm a week before the official bonfire night. Her pet became so scared that it was drooling and panting for breath and her children had to cover it with a blanket and comfort it until it calmed down. Other hon. Members have told similar stories. Even the next day, the animal was shaking when they took it outside. That random setting off of rockets left everyone in the family on edge until a week after bonfire night, when it all faded away and stopped. That is totally unnecessary stress as far as I can see, and something needs to be done immediately.

I am sure that, in calling for action, pet owners and farmers would be joined by the parents of babies and small children. I have experienced the problem with my own family. When my daughter was about two years old, she was absolutely terrified and I had to take her away from a display and back to the car. It took her a long while to calm down, and I would never like any other child or parent to go through that experience. There is a call for action to be taken, and it has to be taken now.

Then there is the impact on our fire and rescue services. They are under immense pressure during this period. As you know, Mr Howarth, a very strong message is going out across communities that people should attend organised firework displays. That message, particularly from our police, fire and rescue services, needs to be listened to by the decision makers in this place. Those who see the consequences of illegal, irresponsible bonfire and firework events know that legislators sometimes fail them—in this case, by not lowering the noise levels of fireworks. That sends the wrong message, the wrong signals, to emergency responders, including fire services, and in general to our communities. As has been said, the people who do these things think that they will get away with it. My hon. Friend the Member for Glasgow Central (Alison Thewliss) talked about the things going on in Glasgow, which are absolutely horrific. Members of public services are diverted from, for example, road traffic accidents—their normal response duties.

Even lowering the decibel level of fireworks would be a step in the right direction and would clearly demonstrate that the Government were listening to our constituents. Another step would be to move to licensed-only events, such as the one in Falkirk, my own constituency, where we have a free event at Callendar Park that is attended by thousands of people. Sometimes we have great artists there; we make it an event for everyone to come to, and it is a wonderful success. I have to thank the local radio station, Central FM, which allowed me personally to broadcast to ask people to attend the event—I do not know whether that had any effect, but it was very busy.

Our emergency services, from ambulances to hospitals, are all under more pressure than necessary at this time of year because of things such as burns and scalds. I believe that the noise of fireworks distracts parents, diverting their attention from their children, and of course we all know the consequences from sparklers—scalding, and clothes and hair being set on fire.

To conclude, the regulations on the noise level of fireworks should be changed. The loudness of the bangs is unnecessary, and avoidable at the manufacturing stage. In addition, only licensed events should be able to use fireworks. I hope that the Minister is listening and we do not get a damp squib in response.

Green GB Week and Clean Growth

John McNally Excerpts

Monday 15th October 2018 Commons Chamber

[Claire Perry]

I pay tribute to my right hon. Friend’s long-standing work in campaigning and his ministerial work on the whole question of environmental sustainability. He is quite right that we are well ahead of our EU counterparts in decarbonising our economy. I was at the European Council on Monday, where we debated our emissions reduction targets. The Road to Zero is a very ambitious programme of emissions reductions, and we were among a handful of nations pushing for maximum ambition on reducing CO₂ emissions from cars and vans. We should continue to do that regardless of the technical rearrangements of our relationship with the EU, because when it comes to carbon, we are so much stronger working together.

[John Mc Nally (Falkirk) (SNP)]

I thank the Minister for advance sight of her statement and agree with her wholeheartedly that profound changes are needed and that more needs to be done. As a member of the Environmental Audit Committee, I share the concerns that it has raised.

It is surely obvious to all that we need to rebalance the economy urgently towards sustainable energy, sustainable business and sustainable manufacturing. However, what is the point in the UK Government launching a Green GB and NI Week at the same time as they are prioritising nuclear over renewables and dragging their heels on climate emissions reductions? Actions speak louder than words. I think the Minister recognises that we are at a privileged moment in time, with most of the world crying out for change.

Will the Minister match the Scottish Government’s world-leading statutory climate targets of reductions of 56%, 66% and 78% by 2020, 2030 and 2040, as well as 90% by 2050? Will she tell the Government to stop dragging their feet and to use reserved powers, including subsidies and technology support, that would allow Scotland to achieve net zero emissions sooner? Will she tell the Government to deliver their green obligations by scrapping plans for new and expensive nuclear power plants and instead bring back renewable subsidies, support the oil and gas sector by aiding the low carbon transition, give Peterhead the £1 billion for a new carbon capture facility that it had expected and restore long-term certainty of policy to the whole sector?

[Claire Perry]

The hon. Gentleman makes some very good points. I am pleased to pay tribute to the work of his Committee, and indeed to the work of the Scottish Government and the other devolved Administrations in contributing to our world-leading climate targets. We do of course score our CO₂ emissions on a UK-wide basis.

The hon. Gentleman raised some important questions. He will of course know that UK energy policy is set in Westminster. Many of the subsidies that have been paid for—indeed, they have brought forward much of the renewables deployment in Scotland—have been set on a UK-wide tax basis. I do not think we should be bringing back renewables subsidies, as he called for, as we are getting to a point at which we no longer need to do so. We opened the world’s first subsidy-free solar farm last year, and we are of course buying offshore wind at very low rates.

I think we do have to work together. It is fantastic for all the Governments—I would expect the same of local authorities and Mayors of combined authorities— to set their own targets because there are so many levers that can be pulled on the ground, not least to motivate people and to motivate businesses to change the way in which they carry out their activities.

Oil and Gas Industry

John McNally Excerpts

Tuesday 9th October 2018 Westminster Hall

[John Mc Nally (Falkirk) (SNP)]

I beg to move,

That this House has considered the future of the oil and gas industry.

It is a pleasure to serve under your chairmanship, Mr Hollobone.

I start my contribution today by taking a moment to remember the 167 workers who lost their lives 30 years ago in the Piper Alpha disaster, off the coast of Aberdeen, on 6 July 1988. Piper Alpha is the world’s deadliest ever oil rig accident. This anniversary is and should be a reminder to us all that we must remain vigilant and do all we can to help the oil and gas sector in seeking to eliminate major hazards and risks.

I will focus my remarks on the success of the North sea oil and gas industry, and on how the sector is working alongside its partners downstream and in its supply chain to secure a lower-carbon future. I will also outline two choices that the UK Government must make. The first is to protect existing labour and supply chains through the single market and customs union membership, or risk sacrificing world-leading firms and skilled, productive jobs.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

I am grateful to my hon. Friend for securing this important debate and for taking an intervention so early. Grangemouth, which is in my constituency, is home to Scotland’s only crude oil refinery, as well as the terminus of the North sea Forties pipeline system. It hosts a number of petrochemical plants and leading players in the chemicals industry, and it accounts for more than a third of the chemical sector’s gross value added in Scotland. In total, 60% of the UK’s chemical exports and 75% of imports are to and from the EU. How important is it to have frictionless, tariff-free trade, and to ensure that multinational companies can move their staff between different countries to support local jobs and growth across districts?

[John Mc Nally]

My hon. Friend makes an excellent point; it is absolutely essential that we remain in the customs union. Of course, I will come on to the importance of frictionless trade and the supply of labour later in my speech; indeed, I hope that everybody will speak about that.

The second choice that the UK Government must make is to recognise the £350 billion contribution to the Treasury that the sector has made over the past 50 years and provide the political certainty and financial support it needs now, or risk undermining North sea oil and gas by once again using it as a cash cow, this time to pay for Brexit Britain.

With sales up by 18.2% between 2016-17 and 2017-18 and the North sea holding up to 20 billion barrels of oil, the sector is in very strong health. Recent industry announcements, such as BP’s successful discoveries in the Capercaillie and Achmelvich wells, Nexen’s phase II development of the Buzzard field, and the Norwegian oil and gas giant Equinor’s deal to buy Rosebank’s share of the oil reserves to the west of Shetland, demonstrate the enormous investment potential that the United Kingdom continental shelf still holds.

The sector supports 283,000 jobs across the UK. In the town of Grangemouth, which is in my neighbouring constituency of Linlithgow and East Falkirk, INEOS alone employs 1,300 people, including seven new apprentices, who started training in 2017. Those figures somewhat contradict the predictions we hear about the sector’s constant decline. Healthy investment is continuing.

[Martyn Day]

I am grateful to my hon. Friend for giving way again and for mentioning the great work that goes on in my constituency. INEOS, which now owns the Forties pipeline system, estimates that the economic life of the asset will be extended to 2040, which is 10 years longer than BP’s original projection. INEOS has already invested £500 million in the Grangemouth site in the last five years, and it is now investing in infrastructure projects at Grangemouth that will have a further positive impact on the longevity and reliability of the Forties pipeline. The firm has already committed to the UK’s North sea sector with investment in the northern gasfields west of Shetland, which contain the Lyon prospect. However, I wonder how much potential investment by the wider sector has been delayed until the uncertainty of Brexit has passed. Will he join me in calling on the UK Government to do more to stimulate exploration and investment?

[John Mc Nally]

I thank my hon. Friend for that intervention; again, he makes a very good point indeed. He is right to raise the concerns about investment, and I join him in calling for the UK Government to support and encourage investment in this vital asset that we have on our shores. I give him my full support in that regard.

Healthy investment is continuing, even though in some cases the level may not be as good as it should be, and new discoveries are being made and developed. In 2017-18, revenues from Scottish North sea oil and gas increased to £1.3 billion. Surely it is now time that the UK Government acted to support the sector’s future.

The sector recognises the need to decarbonise our economy and its responsibilities in supporting that transition. It is an international leader in supporting the low-carbon transition. Average emissions per unit of production on the United Kingdom continental shelf—its carbon intensity—have fallen year on year since 2013, with total emissions in decline from their peak in 2000. Firms are increasingly diversifying and using their existing skills to grasp opportunities emerging from the green economy, thereby providing sustainable employment. Often, infrastructure owners and operators in the oil and gas sector are already part of wider portfolios across a range of conventional and renewable energy sources. Contractors and supply chain companies with expertise in offshore operations and maintenance are also providing solutions across a range of energy industries, to diversify and replenish their order books.

As we all know, innovation is absolutely key to that process. Building the sector of tomorrow presents exciting and challenging opportunities for our people. The Offshore Petroleum Industry Training Organisation’s workforce dynamics report has predicted that by 2025 there could be as many as 10,000 roles that require completely new skills. It is reassuring to note that the industry continues to attract young people to build its future. There were 105 new entrants to the oil and gas technical apprentice programme in September alone. Once again, I have seen that forward-looking agenda at first hand in my neighbouring constituency of Linlithgow and East Falkirk.

As I mentioned, the town of Grangemouth is home to Scotland’s only crude oil refinery. It is a truly remarkable site. For example, the refinery was the first to introduce ultra low sulphur diesel and ultra low sulphur petrol to the UK market. Grangemouth already makes up approximately 8% of Scotland’s manufacturing base. Many of my constituents are employed at the site or in its supply chain. Grangemouth’s success shows the impact that downstream operations and manufacturing can have on the economy, locally and globally.

[Martyn Day]

I am grateful to my hon. Friend for his indulgence in giving way to me so many times.

Grangemouth has one of the country’s largest concentrations of energy-intensive industries in down- stream petrochemicals operations, and its development of a strategically located carbon capture and storage infrastructure in its industrial cluster may be essential to ensuring that those industries can compete in the low-carbon world that is coming in the future. I know that the Grangemouth site, INEOS and others are working with Imperial College as part of a wider collaboration to evaluate the feasibility of CCS for the UK. Does my hon. Friend agree that this developing technology would have been given a huge boost if the UK Government had not cancelled its CCS competition back in 2015, and that that decision demonstrated how they are failing the long-term interests of the industry?

[John Mc Nally]

Once again, my hon. Friend makes a good point about the need for long-term certainty of investment and policy. The CCS decision was an example of a shambolic state of affairs, given that many hundreds of millions of pounds had been invested for the future. That future was basically taken away from under investors’ feet, so I absolutely agree with him.

The export-orientated supply chain generates about £30 billion annually across the UK, and its exported services deliver £12 billion, and the future blueprint for the sector, “Vision 2035”, grasps the importance of that. Alongside adding a generation of productive life to the basin, the blueprint has the objective of doubling the long-term opportunities for the supply chain. If we work together to maximise production from the UK continental shelf and to help the supply chain grow its share of the global energy market, we can boost that prize by half again and generate £920 billion of revenue for the UK economy through to 2035. That is a real game changer for us all. By doubling its share of the global market and embracing the opportunities available through diversification into other markets, the sector can achieve an additional £150 billion of revenue above the baseline estimate of £350 billion.

However, Grangemouth, its workforce and the wider sector are being put at risk by Brexit. The latest Oil & Gas UK report makes it clear that Brexit will have a significant impact on the oil and gas sector, warning about the impact on frictionless access to goods and services, and that the UK Government’s Brexit plans could cause a “skills shortage” for vital North sea services such as emergency response and rescue vehicles.

The Scottish National party is clear that the best way to achieve the goals I have mentioned is to protect Scotland’s place in the single market and the customs union. The Scottish Government have delivered an exceptional range of support for the oil and gas sector and its workforce, including an investment of £2.4 billion in enterprise and skills through our enterprise agencies and skills bodies, £90 million over the next decade to support the Oil & Gas Technology Centre as part of the Aberdeen city region deal, and a £12 million transition training fund to support individuals and help the sector to retain talent.

The other major risk that is looming also comes from Westminster, and that is the Budget on 29 October. With the Treasury having taken about £350 billion from the oil and gas sector in the past 50 years, this is an opportunity for the UK Government to repay their debts and show their support for the sector. The Chancellor must ensure in his autumn Budget that the UKCS is globally attractive for investment, with a competitive and predictable fiscal regime. The UK Government must not repeat the mistakes of previous Administrations and undermine the sector by using it as the Treasury’s cash cow. Instead, they must protect tax incentives designed to support the sector, introduce measures to improve exploration and attract fresh investment, complete the work on transferable tax history, urgently ensure that the tax treatment of late-life assets is addressed so that those assets are in the right hands, and support the urgently required alternative solution to end-use relief.

The SNP also demands that the UK Government use the autumn Budget to implement an oil and gas sector deal, instead of dragging their feet, as is currently the case in Ayrshire, Tayside and Inverness. A sector deal should support practical steps to protect, progress and promote operators, the supply chain and the offshore and onshore workforce. A sector deal for the industry must include visionary national hubs for underwater innovation, transformational technology and decommissioning, based in Aberdeen but serving the whole industry.

In conclusion, North sea oil and gas is booming and the sector is working hard alongside its downstream and supply chain partners to secure a bright, lower-carbon future. The sector has a clear route map in “Vision 2035” and is ably supported by the Scottish Government, who are using their limited powers to the full. The UK Government must now make two choices: to protect the supply chains and the labour supply through single market and customs union membership, and to provide the long-term political certainty and financial support that the sector needs.

[Several hon. Members rose—]

--- Later in debate ---

[John Mc Nally]

I thank the Minister for his kind and generous comments. All Members have been supportive of the debate. Many points were made about how vital this industry is to the economy in the transition to renewable and sustainable energy in the future. We are all agreed that we need a stable regime in place so that we are all aware of what will happen for the future of the industry. The points made about short-termism were excellent. We seem to have been practising short-termism for decade after decade, and that has to stop.

I particularly liked the emphasis on safety in the North sea and on how important it is to retain skilled, clever and well-trained workers. I was not actually around at the time of the Piper Alpha disaster—I was running businesses at the time the news started to come out. I was terrified, as everyone else was, and I read the papers and listened to the news to find out whose friend or relative had been killed and who had been injured. The long-term consequences of that disaster, such as post-traumatic stress, are still going on today. That should never be allowed to happen as long as we are in charge of safety, so the emphasis on safety is appreciated.

The need for a collaborative approach has been well versed. We are all singing from the same hymn sheet. We might want to get there in different ways, but I think we are all trying to get to exactly the same place. I am very appreciative of that.

Good and interesting observations were made during the debate, which showed a good understanding of local and global issues and of the importance of the sector, in particular to our constituents and the businesses in our constituencies, including all the support industries. The basic thing that most people like in their life is stability and an understanding of where the future is going. I hope the Chancellor and the Government have listened to the points made today. We need certainty of policy and of investment—everyone present agrees that that is what needs to happen. I am extremely happy with the debate.

Question put and agreed to.

Resolved,

That this House has considered the future of the oil and gas industry.

Geothermal Energy

John McNally Excerpts

Tuesday 19th June 2018 Westminster Hall

[John Mc Nally (Falkirk) (SNP)]

It is always a pleasure to serve under your chairmanship, Mr Evans, and I thank the hon. Member for Bishop Auckland (Helen Goodman) for securing this debate. Many interesting points have already been made on geothermal energy; it has been quite an education. The hon. Member for Bishop Auckland enlightened me that we have an MP in our midst who delivered projects on geothermal energy and I will make reference to that later on. Her points on disused coalmines are absolutely relevant, as were those raised by the hon. Member for Ochil and South Perthshire (Luke Graham) about the coalmines in Clackmannanshire.

My ears pricked up when the hon. Member for Bishop Auckland mentioned fracking. I would inform those here today that the Scottish Government have won their fracking case. The Court of Session has today rejected a petition by Ineos Upstream Limited and Reach Coal Seam Gas Limited that sought to challenge the Scottish Government’s action in relation to unconventional oil and gas. I am absolutely delighted by that.

[Luke Graham]

Will the hon. Gentleman give way?

[John Mc Nally]

No, I am not going to take any interventions.

[Luke Graham]

It was going to be complimentary.

[John Mc Nally]

I can handle anything at all, but I want to get on with what we are talking about, which is extremely important. With the demise of coalfields, the potential for communities to benefit from new energy possibilities is endless. My home town of Denny in Falkirk is built on coalfields. The whole Falkirk area is built on coalfields and the potential that we have there should be realised. I hope that will happen over time.

As has been mentioned, geothermal energy is the heat stored in the Earth’s crust. The term brings to mind large geothermal energy plants exploiting volcanic sources of heat, such as those found in Iceland. As we heard from the hon. Member for Strangford (Jim Shannon), geothermal energy satisfies around two thirds of Iceland’s needs. To add to that mix, there is also a vast non-volcanic geothermal heat resource—the top 10 to 15 metres of the Earth’s surface act as a heat sink, trapping the sun’s heat.

As we have heard, estimates of the UK’s geothermal power potential vary. There are credible estimates that we could supply 4% to 20% of the UK’s electricity demands, and all of its heat, which is indeed good news, especially if the energy were used to combat fuel poverty. Why people in this energy-rich country suffer from fuel poverty totally escapes me and probably everybody else here. Given the huge potential of this fully renewable resource, why is it not being widely deployed? Will the Minister tell me if any geothermal projects have been awarded to contracts for difference during either of the allocation rounds to date?

There are mature geothermal renewable technologies providing heat and electricity that should and must play their part in the decarbonisation of our energy networks. Then there are ground source heat pumps, where water is pumped through pipes laid within the top 10 to 15 meters of the earth. The pipes absorb heat from the soil, which is then extracted to provide heat. They are cheap to run and are typically small installations, servicing homes, individual buildings or small-scale industry. Ground and water source heat pumps accounted for 6% of non-domestic accredited installations and 15% of domestic accredited installations under the renewable heat initiative between 2011 and April 2018. We surely need to be more ambitious than that.

Deep geothermal plants draw heat from rocks or aquifers heated by the earth’s core, and the UK certainly has geological features suitable for that, especially in Cornwall, northern England, the English midlands and Scotland. As the hon. Member for Ochil and South Perthshire said in a geothermal energy debate on 4 June, there are only nine geothermal energy projects in operation or being planned in the UK: four in Cornwall, two in the north-east of England, one in Southampton and three in Scotland. That is hardly the uptake we would expect for a reliable form of renewable energy that poses few big engineering challenges.

The UK has a poor track record of supporting deep geothermal projects. The UK first showed interest in mapping the country’s geothermal potential during the 1970s oil crisis, but funding was withdrawn as oil prices fell. The practice of short-termism and lack of vision had begun. The first commercial deep geothermal project in the UK started life as a Department of Energy research and development project in 1980 in Southampton, as has been mentioned. The Department of Energy abandoned it as being not economically viable. With a lot more vision than the Department of Energy—perhaps thanks to the hon. Member for Southampton, Test (Dr Whitehead)—Southampton City Council took over the project and developed it into a commercial district heating system, supplying more than 1,000 residential properties as well as hospitals and commercial and civic buildings. I applaud the council for taking that forward and for its courage and vision.

The UK deep geothermal energy challenge fund was set up in 2009 and £4 million was allocated to projects in 2009-10. However, the then Department for Energy and Climate Change halved that in 2010-11. What was it playing at? An early-day motion was lodged by a cross-party group of MPs expressing regret about the decision and 46 MPs signed it. Will the Minister tell us whether I am right in thinking that no further funding has been provided by the fund? I look forward to her answer.

In 2013, the Government withdrew a £6 million grant allocated to the United Downs geothermal power station project in Cornwall on the basis that the project could not attract enough private investment. However, the project went ahead in 2017 after the company was able to crowdsource nearly £4.5 million in private investment using debentures sold by the renewable energy and crowdsourcing specialist Abundance Investment. There seem to be an unending series of obstacles facing projects because of the Government.

The UK’s regulatory landscape and renewable heat initiative create structural barriers to investment in geothermal energy. There is no joined-up approach to licensing geothermal energy in the UK. Developers must navigate the planning system plus a number of environmental permits and consents, and a lengthy, complex process involving local planning authorities, the Environment Agency, English Heritage and other bodies. Unlike a licensing system, a system of permits cannot secure investment in the geothermal sector. As far as I am aware, there is nothing to prevent another developer drilling next door to an existing development once a company has demonstrated a successful well. Will the Minister confirm whether that is the case?

Arrangements for geothermal energy under the RHI actually prevent investment. Asset-based lenders and finance companies do not regard future RHI revenues to be security against lending risks as they would in the case of physical assets. The physical assets of a geothermal energy project have poor portability, since so much of them are stuck in the ground. Asset-based lenders and finance companies do not view the assets as security because they are difficult, if not impossible, to liquidate. Projects cannot lock in to an RHI tariff at the pre-accreditation stage, which adds uncertainty, particularly for projects with long lead-in times. RHI asset ownership rules are complex and prevent companies using an operating lease model, since under the present arrangements the asset finance provider would have to be the applicant receiving the RHI revenues.

It is interesting that a third of the operations are in Scotland, where there is consistency of support. Following a feasibility study of the potential of geothermal energy to provide a renewable source of heat in Scotland, published in 2012-13, the Scottish Government set up their geothermal energy challenge fund. In 2015, the fund invested nearly £250,000 in five feasibility studies. The projects are an important step towards demonstrating how geothermal energy could cut the estimated £2.6 billion a year spent on heating by householders and the non-domestic sector. They are in the Aberdeen Exhibition Centre; Guardbridge in Fife; Polkemmet in West Lothian; Hartwood in North Lanarkshire; and Hill of Banchory in Aberdeenshire. A small investment returns very large benefits.

A further four proposed projects were invited to contact the Scottish Government’s low carbon infrastructure transition programme team to discuss possible early development support to help them in their proposals. Scotland’s first deep geothermal heating system, the HALO 2 km deep borehole being drilled near Kilmarnock, received a £1.8 million grant and is under way as we speak. The Scottish Government’s investment in renewables is underpinned by a coherent decarbonisation strategy and is in turn underpinned by an all-party agreement. The political certainty, and the consistent political and financial support for that and for renewable energy as a whole, sends a message to businesses that the Scottish Government and Parliament are a friendly environment for investment in geothermal technologies.

Today Scotland may have a third of the UK’s planned or operational geothermal energy plants, but it seems that proportion will increase steeply in the near future. As with onshore wind and wave energy, the UK Government could learn much from the Scottish Government’s approach to supporting geothermal energy development. We are at a privileged moment in time developing renewable energy. The Scottish Government and Parliament are realising that ambition on behalf of all our communities.

Finally, I have been clear that any threat to Scotland’s distinctive and ambitious approach to environmental standards and climate change is completely unacceptable. The best way to ensure our environmental ambitions is to ensure that Scotland’s devolved powers continue to be respected.

Marks & Spencer

John McNally Excerpts

Thursday 24th May 2018 Commons Chamber

[Claire Perry]

Most assuredly. Working with high streets in my constituency, as I am sure many right hon. and hon. Members do, I know there is a huge power in having a vibrant high street sector with lots of shops and big anchor tenants, and perhaps also, as a way of driving footfall, shops where people pick up their online packages. Our high streets are part of our incredibly vibrant history. Many of us represent small market towns where the high street is a hugely important part of the local economy. Let us not forget that they employ hundreds of thousands of people right across the country.

[John Mc Nally (Falkirk) (SNP)]

All this is terrible news for our local retailers and for businesses on our local high streets. We have lost a staggering number of businesses over the past two or three years. It is terrible news for the employees and their families, and for our local economy. In my constituency, we will lose about 90 employees, which will have a devastating impact. Is it due to a combination of the Government’s austerity and the clicks versus bricks regarding VAT rates, which we have just spoken about? I know that the Government were planning a consultation on VAT. Will the Minister update us on where we are with that consultation? Is there any possibility, as I asked the Chancellor some time ago, of reducing VAT for our high streets to give local shops and high street retailers a fighting chance against online retailers?

[Claire Perry]

The hon. Gentleman anticipates the review I hope we can all support. I will ensure that my hon. Friends in the Treasury bring it forward as soon as possible. I do have to push back slightly. The hon. Gentleman is right and wrong. He is right that we are buying less stuff. In fact, there is the phrase “peak stuff”, which suggests that the younger folks among us no longer go shopping for pleasure, but prefer to do other things with their time—mostly involving their phones, as best I can tell from my own kids. There is the view that the acquisition of products and services is on the decline globally. I believe the vacancy rate for shops in great cities such as New York is now in double digit figures, which is very surprising and reflects a global trend.

We should welcome the fact that in this country real wages are now going up and increasing ahead of inflation. People are getting more money in their pockets. The Government’s actions in cutting taxes by over £1,000 for over 3 million people and in continuing to invest in high streets, allowing both money and choice, has meant that spending has held up reasonably well—in particular, since the Brexit referendum, which was supposed to deliver the death knell to shopping in this country. That has not happened. We are seeing a change in the way people spend, but it is vital we recognise the importance of this sector as part of our industrial strategy going forward. Industrial strategy, by the way, does not just mean smokestack industries. It means retail industries and creative industries—[Interruption.] The hon. Member for Sefton Central (Bill Esterson) should welcome the fact that we have a sector council up and running and should look closely at the steps it suggests the Government need to take.

Oral Answers to Questions

John McNally Excerpts

Tuesday 1st May 2018 Commons Chamber

[John Mc Nally (Falkirk) (SNP)]

What proportion of all biomass used to produce energy in the last year came from wood, and what proportion of that came from domestic wood? Will he follow Scotland’s example of good practice?

[Mr Gyimah]

The hon. Gentleman makes a very important point, and one that we will follow up with detailed statistics.

Oral Answers to Questions

John McNally Excerpts

Tuesday 7th November 2017 Commons Chamber

[Joseph Johnson]

The Department for Business, Energy and Industrial Strategy and the Department for Education are in constant contact with all the devolved Administrations at various levels on a wide range of issues, including EU exit. BEIS participates in various forums, including the UK research funders group, and officials have recently participated in working groups with the Scottish Government, Universities Scotland, Heriot-Watt University and Edinburgh University.

[John Mc Nally (Falkirk) (SNP)]

7. What steps he is taking to support the development of carbon capture and storage technology.

[The Minister for Climate Change and Industry (Claire Perry)]

Carbon capture usage and storage has huge potential to play a vital future role in reducing emissions across a range of activities, but the technology has to be made more cost-effective to deploy at scale. That is why we have committed up to £100 million of public money in CCUS innovation in our clean growth strategy and why are working with the private sector and other Governments to drive up technological innovation and to drive down costs.

[John Mc Nally]

The clean growth strategy falls short of boosting the investment necessary to stimulate change in carbon capture and storage, and the industrial strategy Green Paper failed to mention it. In the light of the previous failure to deliver on Peterhead, what measures will the Minister announce to recover that investment?

[Claire Perry]

The world has not yet decided to invest in traditional CCUS. There are 21 at-scale plants operating globally, of which 16 rely on enhanced oil recovery as a revenue stream. It is simply not cost-effective enough in its current form for us to commit large-scale investment. We have to get the costs down. We are now in a world where the private sector wants to invest, however, and I am sure we would both welcome developments such as Project Acorn, to which both the UK Government and the Scottish Government have committed funds.

--- Later in debate ---

[Greg Clark]

I represent strongly the views of the business community because they are absolutely vital for our continuing prosperity as a country. The whole of the business community wants to get the best possible deal for the UK, and the vast majority of Members were elected on a platform and a manifesto of obtaining that. I will be tireless in pressing the case for it.

[John Mc Nally (Falkirk) (SNP)]

T3. After years of the Scottish National party lobbying, the Department for Business, Energy and Industrial Strategy launched a review into limited partnerships, and we in the SNP welcome that. In the light of the Paradise papers, thousands of firms registered in Scotland will be forced to reveal their owners’ identities. When will the Government publish the full findings of the review?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

At last year’s international anti-corruption summit, we committed to introduce a register of beneficial ownership of overseas companies. We published a call for evidence in April, the responses to which are being analysed. We will publish a response that provides for legislation in due course.