Electric Vehicle Battery Production

Debate between Lord Callanan and Lord Bishop of Durham

Monday 23rd January 2023 Lords Chamber

[Lord Callanan (Con)]

I note the noble Lord’s nostalgia for the great, successful British industries of the 1970s under public ownership, but I do not think that is a viable suggestion. Government has proved that it is not good at running businesses and industry—we should leave that to the private sector, with appropriate government support where required.

[The Lord Bishop of Durham]

My Lords, the Minister loves the north-east, just like I do, and has noted that this is an extremely suitable site. Is not part of the problem that the return on investment is a very long way forward, so will the Government consider upping the amount they are willing to commit upfront to enable production on this site?

[Lord Callanan (Con)]

The amount of money on offer here was very considerable. I am not going to get into details of commercial negotiations but as I said, we stand ready to talk to any potential investor in that site or any others. The right reverend Prelate is right that this is one of the best sites in Europe for such a facility: it has the right shape, connections and location. We are optimistic it will be taken forward, but as the right reverend Prelate will understand, I am not going to get into commercial negotiations at this point.

Shale Gas Production

Debate between Lord Callanan and Lord Bishop of Durham

Tuesday 15th March 2022 Lords Chamber

[Lord Callanan (Con)]

The noble Lord makes a good point; I think he has put his finger on the nub of the problem. Whenever there is a crisis in politics—and there is definitely a crisis at the moment—there is always a search for quick and easy solutions. Unfortunately, on energy infrastructure, there are no quick and easy solutions: these things take years, if not decades, to put into operation. We are progressing nuclear power, as indeed we should, but nothing is going to happen for a number of years—possibly not until the start of the next decade. We already have in motion the expansion that I mentioned earlier of offshore wind. We have the targets in place for 2030 and those developments are already proceeding.

The same problem occurs with the search for new licensing fields in the North Sea, if we push ahead with it: it will be a number of years before new fields can be developed. Even if we did progress shale, it would be a number of years—possibly a decade—before we would get meaningful quantities of gas out of the ground, even if we overcame all the environmental objections. I am afraid that there are no easy silver bullets to this problem. It is probably a silver buckshot: there are lots of different smaller-scale solutions that we will need to develop over a number of years.

[The Lord Bishop of Durham]

Will the Minister expand on the investment of microgeneration at local level? At Bishop Auckland, one of the local estates is having a massive transformation through solar being installed on all the rooms on that estate. Could not more money be put into that? Let us forget fracking, to be honest, because it is not going to deliver us anything at any time.

[Lord Callanan (Con)]

Yes, is the short answer to the right reverend Prelate’s question. We are supporting microgeneration with feed-in tariffs et cetera, but we need to be cognisant of the scale of the problem. Microgeneration—solar panels, small wind turbines, small-scale running-water power, et cetera—will make a contribution, but it is unlikely to solve the problem in the meantime. We are talking about a few megawatts as opposed to the gigawatts we need in total. It would, however, make a contribution, and it is already making a contribution. Government policy is to support small-scale microgeneration, but it is unlikely to be a long-term solution to our problem.

Economic Crime: Planned Government Bill

Debate between Lord Callanan and Lord Bishop of Durham

Monday 31st January 2022 Lords Chamber

[Lord Rooker (Lab)]

You are answering for the Government.

[The Lord Bishop of Durham]

My Lords, those who decide to perpetrate economic crime are apparently targeted, swift and very bright about how they do it. I read the Statement and it mentions the Home Office, the Treasury and BEIS. Is it not time for more targeted, thought-through, quick action by government, rather than action that is divided across too many departments?

[Lord Callanan (Con)]

All departments are working together to try to combat this menace, and there are a number of different elements to that. Obviously, BEIS’s responsibilities, in terms of Companies House and the register of beneficial owners, are one aspect—but of course there are also tax elements, which are the responsibility of the Treasury, and there are Home Office enforcement matters as well, in terms of criminal liability. So it is not a question of which department looks after this: an enormous amount of cross-departmental co-operation goes on to try to combat it.

Shortages: Protection for the Vulnerable

Debate between Lord Callanan and Lord Bishop of Durham

Wednesday 20th October 2021 Lords Chamber

[Lord Callanan (Con)]

My Lords, I can tell the noble Lord that the poorest and most vulnerable are always at the heart of our policies in this area—we always seek to protect them. It is, however, important to emphasise that there is no shortage of essential items, and we have taken action to ensure that supply chains remain robust.

[The Lord Bishop of Durham]

My Lords, one of the other necessities mentioned by the noble Lord, Lord Brooke of Alverthorpe, is food. Nationally and globally, we waste a third of all food. When 1.7 million children, between September 2020 and February 2021, were living in food poverty along with their families, surely there must be a better way. This week, the Earthshot Prize celebrated Milan’s citywide food-waste policy, which saves 260,000 meals-worth a year. What steps are Her Majesty’s Government taking to encourage and support the better local collection and distribution of food waste in the UK more effectively?

[Lord Callanan (Con)]

The right reverend Prelate makes a good point. Everybody across all levels of government—national and local—want to do all they can to minimise food waste. Of course, we are always looking for additional ways to protect the most vulnerable.

Net Zero Strategy and Heat and Buildings Strategy

Debate between Lord Callanan and Lord Bishop of Durham

Wednesday 20th October 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Lord will be pleased to know that I do believe in market mechanisms. His question is impossible to answer, and let me explain why. Heat pumps are three to four times more thermodynamically efficient than existing gas boilers. At the moment, because of the costs of various policies on the production of electricity to successfully decarbonised the electricity sector, there is an imbalance in pricing. The Treasury and the Government have accepted that we need to do something about rebalancing gas and electricity prices. Now is clearly not the time to do this, when we are experiencing record gas prices. In the longer term, and bearing in mind that this is a 15-year strategy, we need to change the balance of these costs. We are committed to do so. There are other market mechanisms of which I could speak in favour. We will consult on a market mechanism for gas boiler manufacturers to have a certain proportion of their sales be in heat pumps. I repeat what I have said before: the boiler upgrade scheme is not the only support mechanism we offer for installing heat pumps.

[The Lord Bishop of Durham]

The Minister and I live in the same region, where masses of new building is going up. I have had only a quick read of the document —we have not had time for anything other than that—and there is a lot about retrofitting in it. Given that we have all the technology and knowledge now, can the Minister explain why new builds are not being built to a net-zero target from this year or perhaps next? Everything is in place to be able to do this. We are delaying too long.

[Lord Callanan (Con)]

The decision was made by what was then the Ministry of Housing, Communities and Local Government that the future homes standard would kick in in 2025. There is a long process of consultation to go through with industry to ensure that the standard is applicable, that the supply chain is there, and so on. The right reverend Prelate will be pleased to know that we are changing what is called Part L of the building regulations next year. This will also produce substantial carbon savings in advance of the future homes standard coming in in 2025.

--- Later in debate ---

[The Lord Bishop of Durham]

It is obviously the evening to get a second go. Yesterday, the Transition Pathway Initiative launched the Global Climate Transition Centre, which will be a key part of the COP 26 financial infrastructure, to assess 10,000 companies on their alignment with the net-zero pathway and support accountability and action on this very important issue. Understandably, that is not in the paperwork, because it was announced yesterday. Is the Minister aware of the Transition Pathway Initiative—which has been around for a while now—and the Global Climate Transition Centre, and what actions will the Government take to support these initiatives?

[Lord Callanan (Con)]

Yes is the answer to the right reverend Prelate’s question. They are excellent initiatives, and they are indicative of some of the leadership of many of our leading companies and how they are committing to net zero. Many of them are going to be displaying at COP, and it is great to see some of the biggest businesses in our land also helping us on the pathway to net zero.