(6 years, 11 months ago)
Lords ChamberMy Lords, we do not know what the new money will be; it depends on the proposals made to the Chancellor, but in all likelihood there will be new money, just as there has been in other growth deals. Not all the money is from the public sector by any means; much of it will be driven by very successful businesses in the private sector.
My Lords, the distance between the edge of my former constituency in the Scottish borders and the Eden district in Cumbria is the same as between London and Sheffield. A huge area is potentially covered by this issue, and each part has distinct needs. That is why the local government committee in the Scottish Parliament has called for extra specificity in this deal, as opposed to city deals. As the Minister said, this has been on the table for quite a while—since I was in the Scottish Parliament—so can he give an assurance that agreement will be made in advance of the coming Budget, in time for the UK budget for English local authorities, and the Scottish Parliament budget process for the Scottish local authorities?
My Lords, the noble Lord is right about it being a very large area; it is also a very beautiful area that I had the privilege of travelling across fairly recently. He will appreciate that this is not solely within the control of the UK Government—or indeed, the Scottish Government, to be fair. It will be driven by what is happening on the ground with the businesses and local authorities that are now talking together. The early signs are that the meetings held last week were highly successful; everybody was full of praise for what was happening. There is a timescale to abide by, which means coming forward with concrete proposals no later than the late spring.
(9 years, 5 months ago)
Lords ChamberMy Lords, first, I thank your Lordships very much indeed for what has been a debate of extremely high quality with some important contributions, to which I shall try to do justice, on subjects ranging from the Oil and Gas Authority and wind to the old chestnut of the East Ayrshire coalfield. I am very grateful for the advance notice of that question, otherwise I might not have been able to deal with it; I will certainly try to as I address the points raised within the suggested time.
Let me begin by dealing with two general points. The first was raised by the noble Lord, Lord Purvis, at our meeting yesterday, when I also met the noble Baroness, Lady Worthington. I was of course aware of the likelihood, although not of the certainty, of announcements today at that stage, but I could not share anything because of market sensitivity. The only conversations that Ministers are allowed to have are with devolved Administrations—which brings me on to the second issue. We have very good avenues of communication, and such things continue to be shared, as they were yesterday, with Scotland, Wales and Northern Ireland. That does not mean that we agree, but we of course continue to do what previous Governments have done.
I will try to deal with the issues in the way that they were set out—the Oil and Gas Authority, wind and then miscellaneous. I am not in any way denigrating the importance of the miscellaneous questions, but they are not directly represented in the Bill. I will try to do justice to the contributions that have been made. I start with a general point about what will be forthcoming as we go through the Bill. We are certainly hoping for an impact assessment by Committee stage. We very much trust that that will happen, as we trust that there will be a settled position on the grace period, an issue raised by many noble Lords and by the noble Baroness, Lady Maddock, in a briefing meeting. As soon as I am in a position to give information on that, I will ensure that it is circulated to all noble Lords because I am cognisant of the fact that they will need to be aware of it in the Recess.
Turning to the Oil and Gas Authority, the noble Lord, Lord Grantchester, raised the question of how the environmental importance issue will be dealt with. DECC will continue to be responsible for that in relation to the Oil and Gas Authority, but it will of course work alongside it. The decommissioning strategy will be delivered; indeed, it is the prime issue that will be dealt with by amendments that we will introduce. That is not yet in the Bill and we hope to come back in Committee with more detail on that.
Many noble Lords raised the issue of carbon storage—I have it under the heading of oil and gas, but also under miscellaneous—including the noble Baroness, Lady Worthington. I thank her for her kind comments and I understand her passion and share many, if not all, of her climate change goals, so I am sure we will have a good working relationship. The noble Lords, Lord Grantchester, Lord Oxburgh, Lord Whitty, and Lord O'Neill, the noble Baroness Lady Worthington, and others raised the issue of carbon storage, which it is important we look at. It would be a responsibility of the Oil and Gas Authority, although not its core responsibility. I hope we will be able to look at that as the Bill proceeds through Committee and beyond.
On Norway and Scandinavia, again, I agree that a lot of this draft legislation is based on the experience of Scandinavia, which is a good example for us. I am sure that we will continue to learn lessons from there and exchange good practice.
Moving on to a general point about the Oil and Gas Authority and the tribute to Sir Ian Wood paid by noble Baronesses, Lady Worthington and Lady Liddell, the noble Lords, Lord O’Neill and Lord Purvis, and others, I quite agree. We have not really done anything other than present the report as it is. We believe that it is a good report and we are giving it legislative strength. The timing—2014—might not have been of our choosing, I agree, but we are where we are and we have to make sure that the authority is smart, nimble and able to take on new challenges as they develop.
I am happy to look at and engage with the example of transferable skills and research given by the noble Baroness, Lady Liddell. It was a helpful suggestion, so we will be in touch and make sure that noble Lords are aware of what we are doing in that regard.
The noble Lord, Lord Oxburgh, asked about the number of staff who would be transferred. The current figure is 103, which is an increase from the figure I was given earlier this morning, so we are obviously recruiting at a rate of knots. The majority will come from the Department of Energy and Climate Change, but expertise is retained in the department and of course we are continuing to recruit. There was a suggestion that the industry was trying to do this on a small budget, but that is not the case. We will obviously continue to recruit.
My noble friend Lady Byford raised some specific issues about the stable and predictable regulation regime set out in Clause 4 and asked for more information about that. I am happy to write her and copy noble Lords in on the detail that we have.
The noble Viscount, Lord Hanworth, talked about the regulatory role of the Oil and Gas Authority. Yes, it is of course the regulator and is subject to controls, but the oversight will be with the Secretary of State, who will be the sole shareholder of the company. No doubt we can look at that as the Bill goes through Committee. Those are the prime points on the Oil and Gas Authority. It seemed to receive a general welcome, and no doubt we can look at the detail as we proceed.
Obviously, we will not all agree about wind. There are differences even within party groups. I notice that some are more enthusiastic than others about onshore wind. Clearly, the fundamental point is that industry should not have been taken by surprise by the attitude of the Conservative Party to wind. One thing we cannot be accused of is ambiguity: the manifesto made our stance very clear.
A general point was made about the affordability of bills. My noble friends Lord Howell and Lord Ridley rightly said that affordability is an issue. Looking at the figures, the action we have taken has trimmed bills by £7 annually, which is not something that we should dismiss. But there is a concern and we should not categorise it as tawdry. We may disagree with it, but there are people who feel that there are sufficient land-based wind farms and they affect the quality of their lives, so let us put that in perspective. We have just had an election in which that was an issue.
To return to planning, developers can obviously still appeal against a decision from the local authority as they can in relation to shale. The point was made that somehow, the planning regime is fundamentally different in relation to shale. It is not. As we know from the decision recently taken in Lancashire, a decision is taken at local level and then there is the potential for appeal. In a similar way—although not identical because they are different planning regimes—there is a local element and then an appeal in both cases.
Reference was made to the certainty that is needed for British industry and investors regarding the supply chain. I agree. We need a sustainable approach to decarbonisation to 2020 and beyond. There was a Written Ministerial Statement this morning outlining these changes, which I hope that the noble Lord, Lord Purvis, has. There was a press release, too, as is customary practice, but this was not announced only by press release. It makes it clear that there is a levy-controlled framework beyond 2020. I reassure noble Lords that in the autumn, we will say what we will be doing about contracts for difference.
My noble friend Lord Ridley questioned the need for Clause 60(3). It is simply there to ensure that generators who do a credit before the closure date will not be affected. A general concern was expressed about the grace period. There is an ongoing dialogue on that issue, which is why it was not dealt with in the Bill and we will return to it in Committee. That dialogue will finish at the end of July. We will then study the representations made to us and come back with something. I will make sure that noble Lords have sight of any decision as soon as it is made. That is why the measure has not been included in the Bill. I know that noble Lords will want us to look at these considerations with some care.
The number of projects affected is in the region of 250. It is not a precise figure—we cannot be absolutely certain which projects will proceed, so to that extent it is a best guesstimate. Again, that will be covered in the impact assessment. The noble Lord, Lord Cameron, also talked about the grace period and the need for dialogue, which I quite agree with. The noble Lord, Lord Judd, stressed the importance of areas of outstanding natural beauty, and I agree. Some people may well say that some wind farms are already in such areas, but I thank the noble Lord for his thoughtful speech. He asked how the costs were determined. I think they are published, as we will be able to see as we go through the Bill, but they are determined by the Office for Budget Responsibility.
I hope that the Minister will forgive me for bringing him back to the issue of planning. Just after he received clarification from the Box, I took the opportunity of looking again at page 57 of the Conservative Party manifesto, which says that it would,
“change the law so that local people have the final say on windfarm applications”.
The Minister confirmed at the Dispatch Box a few moments ago that that was not the case. The current practice of developers being able to appeal to the planning inspectorate will carry on, so that is not being implemented. Is that true?
Noble Lords will understand that I am approaching this constructively. I am not going for the party knockabout, so let us leave that for another occasion. I am trying to be constructive and explain how we can take this forward.
The noble Lord quite rightly raised a point on public interest and national security grounds; perhaps I may get back to him on that with examples. The two go together. The national security point will be fairly evident, the public interest one perhaps less so. Thinking on my feet, it could involve something like piracy, but that word has connotations of the old type of pirate. However, it could mean someone taking over one of these installations, which, while it might not represent a threat to national security, may demand urgent action in the public interest by the Secretary of State. It could be something like that, and I will certainly write to the noble Lord with more precise information.
As I understand it, coming back to the announcements on solar made this morning, we do not need primary legislation for any action that is taken consequent on that consultation, and therefore I do not think that we will need to amend this legislation. If I am wrong about that, I will write to noble Lords, but I think it can be achieved through secondary legislation.
I shall move on to the miscellaneous points, although that is not to say in any way that the issues are not important. A regular theme of the debate was energy efficiency. It was raised by the noble Baroness, Lady Maddock, and the noble Lords, Lord Oxburgh, Lord Teverson, Lord Judd and Lord Foulkes, among others. It is a vital issue and a lot is already happening that does not demand legislation from us now. I refer to the smart meter programme, the delivery of which in 2020 will make a massive difference. Since April 2010, we have delivered the installation of more than 1.5 million measures such as boilers, insulation and so on which have made a material difference. That links to another area of responsibility, namely fuel poverty. We are currently looking at how to ensure that our fuel poverty measures are more closely allied to improvements in energy efficiency than perhaps they have been in the past. That is something we are looking at and it is certainly important.
On nuclear, a matter raised by my noble friend Lord Howell and touched on by the noble Lord, Lord O’Neill, and others, we are expecting the contract to be concluded at the end of the year. I think my right honourable friend the Secretary of State mentioned this yesterday to the Select Committee in the House of Commons. We are certainly looking at small nuclear, as I think I have indicated previously; it is important. Progress is being made on Wylfa and I discussed it again yesterday with the devolved Administration in Wales. Those matters are progressing. I think I have dealt with carbon storage.
(9 years, 5 months ago)
Lords ChamberThe noble Lord will be aware that the Wales Bill will be subject to pre-legislative scrutiny this autumn. The Bill should become law at the end of next year or early in 2017.
My Lords, in February, correspondence from the Committee on Climate Change to the Environmental Audit Committee in another place said that,
“UK shale gas production can be consistent with meeting UK carbon budgets but only if … it is accompanied by a strong commitment to reduce all greenhouse gas emissions (and therefore gas consumption), for example by setting a power sector decarbonisation target”.
Will the Minister be clear about the Government’s decarbonisation target for the UK power-generation sector and what proportion they see shale gas being of that overall target?
My Lords, the noble Lord will be aware that most renewables are intermittent and we need a back-up. MacKay and Stone have said that the gas carbon footprint of shale gas is comparable to that of imported gas, lower than that of LNG and much lower than that of coal. We need it in our transition to our zero-carbon economy. That is why it is so important.
My Lords, I am not quite sure—perhaps I am—what the noble Baroness is suggesting. Let me reassure her that the process is quite independent. She will be aware that most of the area for fracking gas is in Lancashire, Yorkshire and Nottinghamshire and, of course, the Prime Minister’s constituency is well south of that.
My Lords, what is the Government’s decarbonisation target and over what timeframe?
(9 years, 6 months ago)
Lords ChamberMy Lords, I am grateful to the former Leader of the House, the noble Lord, Lord Richard. The Committee on Climate Change report on the cost-effective path to 2050 indicated that nuclear and onshore wind are likely to have broadly comparable costs to new, unabated gas. Given the fact that the predominance of the situation in Scotland has been affected by the recent government decision, should not the Government be open to amendments to the energy Bill that could be coming forward to make sure that there is a distinct case for Scotland, so that support for Scottish jobs and the Scottish economy is put on a comparable level as support for Chinese investors and the nuclear industry in the United Kingdom?
My Lords, when the energy Bill comes before us—it will come to this House first—we will have an opportunity to look the questions that the noble Lord raises.
(9 years, 6 months ago)
Lords ChamberMy Lords, renewables are important, but it is absolutely right that some renewables are intermittent and we therefore need back-up. Nuclear is certainly vital to us and we need it. We are looking at the possibility—I put it no stronger than that—of smaller nuclear as an additional part of the mix.
My Lords, the Minister was unable to respond to my question after the Statement yesterday as to whether a jobs and supply chain impact assessment had been carried out by the Government in advance of the Statement. I think that is to be regretted. One way to restore confidence within that community would be to signal that the Government have no plans to change their proposed contract date for contracts for difference from October this year. Can the Minister confirm that they are on course to do that and the details will be published before recess?
My Lords, first on the economic impact, it is possible to overstate that. That it is why I did not really dwell on the issue. Two hundred and fifty projects are likely to be affected, but a clear majority of those would not be processed even within the old limits, so the economic impact is small. With relation to contracts for difference, as my right honourable friend the Secretary of State said in another place, we will be making a Statement on that in due course.
(9 years, 6 months ago)
Lords ChamberMy Lords, I eagerly anticipate what the Minister will say after our contributions. There is no doubt that the Conservatives, now governing alone, are sending very poor signals to the renewable energy sector. Therefore, although it is regrettable, I thank him for making that very clear at the beginning of this Administration.
The repeated Statement does not include the text that the Secretary of State added at the Dispatch Box, in which he paid tribute to the Conservative MPs who have been the most vociferous about onshore wind—a part of the energy mix that receives less support than Hinkley Point but is part of an accelerating part of our whole renewable energy generation mix.
The Government say that they were elected with a commitment to end new subsidies, but surely not to do so prematurely and without consultation, creating confusion among the investor community and industry, causing concern among those whose jobs may be now at risk, and putting in doubt our carbon reduction ambition. Niall Stuart of Scottish Renewables—where, as the Statement says, 68% of those in the pipeline are located—is right to say that the Government’s actions are bad for jobs and for investment.
Given that the Government plan for this to be implemented by primary legislation, what exactly do they want to hear as part of the consultation? It seems very obvious that they have made up their mind, not only on the policy but also on how it will be delivered. How can it be the “beginning of the process”, as the Statement said, when the Government seem to have a closed mind? What if Parliament believes that there is too much confusion in the grace period, and that before making the announcement there should have been consultation with the stakeholders and others involved who potentially could lose their jobs and their income? What if Parliament believes that this should be implemented only after Royal Assent—and when is that anticipated, because it is not clear?
The Secretary of State’s Statement in another place stated that any developer or investor now needs to contact the department to find out if they may be part of the estimated 250 projects. I hope that noble Lords will appreciate that I read that with a degree of incredulity. How on earth can it be good government policy to announce it, state how many they estimate are in the pipeline, and even say that more than two-thirds of those are in Scotland, and that any investor or developer who wishes to know if they are part of this now needs to contact the department to find out whether it will indicate whether they are to be in the grace period? The Secretary of State said that this may take some time. Can the Minister say how long it will be before we get clarity and when the list of sites will be published?
Finally, the Secretary of State was also unable to say—and I regret that the Minister has not indicated in the repeat, either, of course—whether a jobs and supply-chain sector impact assessment was carried out before this decision was made. Surely this must have been done. The Government cannot make such a decision without doing some form of impact assessment about the effect on people’s livelihoods, on reputation within the investor community and on the 68% of those in the pipeline that are in Scotland. If an assessment has not been carried out, it is an astonishing piece of work from this Government. Will the Minister confirm whether an assessment has been carried out and will he publish it?
My Lords, I thank the two contributors, the noble Baroness, Lady Worthington, and the noble Lord, Lord Purvis, from their respective Front Benches. I will try to deal with the points they made. In essence they seemed to be making the same point: that they had been taken by surprise by this announcement. I cannot imagine why. The policy was in the manifesto. It was not a dog-whistle policy, as the noble Baroness suggested. We are not in the business of rerunning the general election; we will be doing that in five years’ time—with the inevitable same result if nothing is learnt by the parties opposite. This should not be a surprise to anybody.
To deal with some of the specifics, this will not hit investor confidence. Some £42 billion has been invested in renewables, nuclear and CCS since 2010. I send out the message that renewables are a vital part of the mix of our energy supply and will be into the future. As I said, this policy was in our manifesto and I do not think that anybody should be surprised by it. In terms of industry, you only have to look at Siemens investing money in Hull in the offshore wind industry to know that industry is very well aware of the commitment of this Government to renewables and indeed to the agenda in Paris on climate change.
The noble Baroness said that this could be decided at local level. This is exactly what is happening. There will be further discussion with the devolved Administrations; discussion has already been going on. It is true to say that Scotland is, in terms of the percentage, affected more than the rest of the United Kingdom, as it has been from the benefits—61% of wind energy has been deployed in Scotland, so it represents roughly the same amount. Again, that should not come as a surprise to anybody.
This decision that we have made—the Statement presented in the other place by my right honourable friend the Secretary of State—represents an important way of tackling the fact that if we do not take this action it will result in higher bills and/or other renewables not being brought on stream. In terms of investor impact, there will be new jobs with other renewables—and if we had not taken this action, we would not have been investing in the other renewables.
In relation to contracts for difference, the Secretary of State made it clear that we would be bringing a Statement forward on that. It has been extremely successful in terms of value for money, as I think noble Lords across the House will be well aware.
(9 years, 6 months ago)
Lords ChamberMy noble friend makes a serious point in relation to Europe in general. With regard to the United Kingdom, we are on target for decarbonising and are decarbonising at the expected rate. It is true to say that obviously we need to keep a watch on external factors, but it remains the case that unabated coal is scheduled to represent 1% of electricity generation by 2025. That is the goal and we are very much on target for that.
My Lords, it is the case that the Conservative manifesto said that the Government would simply continue adhering to the Climate Change Act. However, does the Minister agree that that should now be the starting point, not the destination, and that we will need to go further—to meet a binding target to decarbonise Britain by 2050? Would he also agree that a practical step to assist in that would be to greatly expand the remit and breadth of the Green Investment Bank, a really pioneering development of the previous Administration based in Edinburgh?
The noble Lord is right in that we do need ambition in this regard. We are encouraging more ambitious targets through Europe. Of course we are working with Europe on a reduction of at least 40% by 2030 based on a 1990 baseline—that remains the case. But, yes, we do need to take account of the fact that there is a massive challenge to keep inside the 2 degrees increase in temperatures over the period that we are looking at.
(9 years, 6 months ago)
Lords ChamberMy Lords, civil nuclear is certainly an essential part of our energy mix—I welcome what the noble Lord said about the Labour Party—and that continues to be the case. We are confident that Hinkley C will be delivered by 2023, and there are several other nuclear power stations in the line after that. Obviously, we learn from the French and the Finnish experience with regard to delivery.
My Lords, from these Benches I welcome the Minister to his portfolio. Will he ensure that the momentum established by the previous Administration in this field continues, and indeed goes further? Will he commit that if energy proposals are brought forward, Parliament will consider them—they could include the de-coaling of our electricity supply by 2025 as part of an ambitious target to halve energy demand by 50% by 2030, so that we can meet the aim of a zero-carbon Britain by 2050—in order to maintain the momentum that has already been established?
I thank the noble Lord for his kind comments. The ambitions for, and commitment of the Secretary of State and the Prime Minister to, this agenda are undoubted, and we will continue the work of the last Government in that regard. The targets and aims are ambitious, and we will share those with both Houses so that we can gain the consensus and achieve the momentum to take this agenda forward.
My Lords, my noble friend is correct. Clearly, the most immediate aim is to ensure that we get the number of cases down to zero. That is in sight, although it will take months not weeks. Beyond that, the aim is to build a resilient healthcare system for the future in Sierra Leone. There is the personal commitment of the Secretary of State to that and an ongoing commitment from the Government to Sierra Leone. Beyond that, I very much hope that this can be an object lesson for the future in how to achieve that in Africa and, indeed, globally. I will certainly take that message back. It is something we should all cherish and aim for.
My Lords, I, too, endorse the comments from Peers across the Chamber in support of UK emergency health workers and our Armed Forces, who, in the face of the challenging incidence of this preventable condition, are supporting the health service in Guinea and Sierra Leone. However, to some extent, this pales into insignificance compared to the pressure on the local health workers in these countries. I follow on from the question asked by the noble Lord, Lord Collins of Highbury, and strongly endorse my noble friend Lord Fowler, in asking about the recommendation in the eighth report of the International Development Committee in another place of a spring conference to consider putting a legacy in place. The Government’s response was that they were going to take part actively in the conference scheduled for last week by the EU, the African Union and the United Nations Secretary-General on forward planning and legacy. If my noble friend cannot update the House today on the conclusions of that conference, will he be able to present an update to the Library of the House so that all Members can be clear as to what the legacy and the UK’s leadership role will be in the future?
First, my noble friend is absolutely right to pay tribute, too, to the local health workers from Sierra Leone, who obviously face the same dangers and are working tirelessly, as are our own public servants, to deal with this tragic emergency. I shall update noble Lords on the position on the spring conference. At the Brussels conference, which was referred to in the Statement, the Secretary of State again ensured that the international message is going out loud and clear. The World Health Organization has its annual meeting in May, which is another crucial date for making sure that the forward planning for dealing with such situations in future is in place. Further to that, I will respond in writing to the specific question that my noble friend asked and ensure that a copy is placed in the Library.
(9 years, 9 months ago)
Lords ChamberPerhaps I could say that, after the Minister has spoken, only short questions of elucidation to the Minister are permitted on Report.
Ordinarily, I would give way but on the basis of that guidance and a reflection on the Companion, I regret that I will not.
But as my noble friend has drawn me, let me address his amendment. He was referring to whether it would be virtuous to establish a separate organisation to carry out this function. In Committee, I was very clear in citing from the Official Report when my right honourable friend Michael Moore lodged his proposal. I quoted that and need not do so now, but he lodged his proposal and consulted upon it. The Government put forward their reasoned argument with regard to effective independent evaluation. My right honourable friend accepted that argument and the Bill was sufficiently amended. I am therefore satisfied that the Bill as it stands is robust in that regard and does not require the creation of a wholly new and separate quango. We have a structure in place under the Bill that I believe calls for the points that the noble Lord, Lord Hollick, called for. On that basis—and, hopefully, clarification—I hope that he will withdraw his amendment.