Offshore Wind

Debate between Lord Callanan and Lord West of Spithead

Monday 11th September 2023 Lords Chamber

[Lord Callanan (Con)]

I know that the noble Baroness is passionate about onshore wind. I hope the changes that we announced will produce more capacity. As I said, we have just let 24 projects under the latest CfD round. She is right that the industry said in advance of this round that it wanted to be paid more. Across all the different areas of government for which I have been responsible, I have never met a private developer who want to be paid less for what they do. Let us be realistic: this is a negotiation process. Of course, industry will say, “We need to be paid more; we need to be given larger contracts”. That is entirely understandable. We have to bear in mind our responsibility to the bill payer who ends up paying these costs. We of course want to see more renewable capacity laid out—it is intermittent but it is cheap. We need to produce a strike price that is fair to the developers, so that they get a return, but also to the bill payers.

[Lord West of Spithead (Lab)]

My Lords, the Minister is right that we should praise ourselves for the offshore wind farms, which I must say are most impressive. However, the interconnectors and so on lie along the seabed. Like so many other aspects of our energy supply and other things, the seabed has certain vulnerabilities. We have seen Russian ships from the main directorate of undersea research regularly in the North Sea, going along areas where these lie. Is the Minister happy that we have put enough effort into monitoring and tracking where they are all the time and then using ships, aircraft and whatever else to go and make sure that those lines are still safe?

[Lord Callanan (Con)]

The noble Lord makes a good point. There are a number of such areas of critical national infrastructure, including gas-interlinking pipelines and electricity interconnector cables with other countries, as well as our interconnector cables with the offshore wind farms. These are all critical vulnerabilities and the noble Lord can be assured that we monitor these things closely. We are well aware of the possible threat presented to them.

Oil and Gas Windfall Tax

Debate between Lord Callanan and Lord West of Spithead

Wednesday 19th July 2023 Lords Chamber

[Lord Callanan (Con)]

My noble friend makes an important point. Taxation levels are obviously a matter for the Chancellor and the Treasury. However, there are a number of concerning stories from investors that they have pulled out of investments in the North Sea; in fact, one remarked that parts of Africa were a more stable tax environment.

[Lord West of Spithead (Lab)]

My Lords, I congratulate the Government on the £20 billion they put into the small modular reactor enterprise, and the work they have done for the STEP fission reactor. Does the Minister agree that the best net-zero way of ensuring that we have energy to provide the electrical baseload is to press ahead rapidly with Hinkley C and Sizewell because, if we do not get this nuclear power online, we are not going to make it?

[Lord Callanan (Con)]

I do agree with the noble Lord. Nuclear reactors, whether it be Sizewell or Hinkley, and small modular reactors will play an important part in the net-zero transition. Of course, we want a diverse supply mix; we want as much renewable energy as possible, but nuclear will play an important role.

Green Investment

Debate between Lord Callanan and Lord West of Spithead

Tuesday 7th March 2023 Lords Chamber

[Lord Callanan (Con)]

I do not agree with the noble Lord. There are reasons why the US adopted its policy —investment, which we welcome, into green renewable energy, et cetera. Of course, the US is starting from an awfully long way behind the UK. One of the reasons it has to put in such large subsidies is that it has not provided the long-term legislative certainty that we have.

[Lord West of Spithead (Lab)]

My Lords, mention of rocks dropping into harbours by the noble Lord, Lord Hannan, brings to mind ships. On protectionism, what is our view of the latest legislation being passed by the EU, which seems to indicate that defence procurement will be from countries remaining in the EU and not go more widely?

[Lord Callanan (Con)]

The noble Lord is always ingenious at getting defence and ships into every Question. I would need to speak to my Ministry of Defence colleagues for their response to that.

Renewable Energy: Generation Licences

Debate between Lord Callanan and Lord West of Spithead

Tuesday 13th December 2022 Lords Chamber

[Lord Callanan (Con)]

It is an interesting concept. As the noble Lord knows, the smart export guarantee is a market-driven mechanism, and it is for suppliers to determine the value of the exported electricity to them, taking account of their administrative costs. There are a number of schemes, such as the one mentioned by the noble Lord, and I am certainly very happy to look at it. However, we always have to bear in mind that any subsidy offered to certain generators is paid for by every other customer on the network.

[Lord West of Spithead (Lab)]

My Lords, all this talk of tidal power makes one think of ships. Noble Lords will be glad to hear that I am not going to ask a question about ships. There is going to be a huge growth in demand for electrical power. The only certain way of providing electrical power, no matter what the weather and completely green, is nuclear. What is the actual percentage that we are looking for in the provision of nuclear power, looking to the future of electrical supply within this country?

[Lord Callanan (Con)]

The noble Lord is right: we need to expand our nuclear production. We have just agreed the contract for Sizewell, only a couple of weeks ago, and other developments are planned. We have not set a specific target for nuclear production, but we will need to replace a lot of the aging plants that will come offline in the next 10 or 15 years or so.

Energy Bill [HL]

Debate between Lord Callanan and Lord West of Spithead

Committee stage
Wednesday 7th September 2022 Lords Chamber

[Lord West of Spithead (Lab)]

My Lords, I support the amendment in the name of the noble Lord, Lord Moylan, which relates to resilience. We are very bad at spending money on resilience. The Treasury hates to spend money on resilience, as I know from my time as a Minister.

[Lord Callanan (Con)]

It hates to spend money full stop.

[Lord West of Spithead (Lab)]

Well, yes, it hates to spend money full stop, but especially on resilience. Whether it is the loss of our GPS system and how we would counter that or PNT, there is a whole raft of areas where it is really unwilling to move and spend money even though these things are crucial. In this case, it is extremely important that we have the ability to store gas as we move into the future. I agree totally with the noble Lord, Lord Moylan, that the amount we have to store may vary quite dramatically.

Earlier, the Minister spoke about how we have infrastructure built to bring LNG into this country. We certainly do—I was heavily involved in ensuring that we got the right ships from the North Dome in Qatar to Milford Haven and setting up the infrastructure there. It was meant to provide 15% to 30% of our LNG. That was fine when people were not outbidding us for that LNG. That is the problem now; we cannot guarantee that that LNG will come to us, so we need some form of resilience. I believe that resilience should be our having some gas storage capability.

I have to get a naval thing in. It is interesting that, between the two wars, we forced the Treasury to ensure that our then 850-ship Navy—it is a bit smaller now—had sufficient fuel stored in this country to fight at war rates for six months. Someone in government had calculated it. We have to have a calculation; 25% might be wrong, but there is a requirement for some storage. We need to think very hard and the Government need to come up with a view from their experts on how much that should be. It may dwindle in time, but we certainly need it in the near term as quickly as possible. I very strongly support Amendment 225.

Energy: Prices and Supply

Debate between Lord Callanan and Lord West of Spithead

Thursday 14th July 2022 Lords Chamber

[Lord Callanan (Con)]

I am not a member of that committee, so I am afraid that I cannot answer that question.

[Lord West of Spithead (Lab)]

My Lords, nuclear is crucial to our future energy supply. Will there be an announcement before the House rises next Thursday about Sizewell C and all of the decisions that have been delayed?

[Lord Callanan (Con)]

The noble Lord makes an important point and I completely agree about the importance of nuclear and Sizewell C. Negotiations are continuing; I think it unlikely that there will be an announcement before the House rises.

Newport Wafer Fab

Debate between Lord Callanan and Lord West of Spithead

Thursday 7th April 2022 Lords Chamber

[Lord Callanan (Con)]

I suspect there are a number of different reasons for that, particularly the importation of consumer goods. Globalisation and imports from China of consumer goods, consumables, et cetera, are a good thing in terms of global trade, but we have to be wary of dealing with companies from the People’s Republic of China. When it comes to matters of national security, we are incredibly vigilant. The NSI Act gave us new powers in this area, and we will not hesitate to act on anything that threatens the UK’s national security.

[Lord West of Spithead (Lab)]

My Lords, as the Minister says, the National Security and Investment Act was passed—it shot through this House, actually—to stop things like this happening, because we have been caught out in the past. There is absolutely no doubt—it is known across all our intelligence communities, Five Eyes and everywhere—that this factory has strategic significance and is strategically important to our nation. Therefore, while I understand the Minister’s saying that this is quasi-judicial, it would be nice to have some commitment from the Government that they understand how important this is in strategic terms, and they will not let this go through by some sort of error.

[Lord Callanan (Con)]

Nothing will go through in terms of an error, I can assure the noble Lord of that. This transaction is being considered very closely and there is an ongoing review by the National Security Adviser, as I said in response to the noble Baroness, Lady Blake. But the decision has to be taken, as outlined under the terms of the Act, by the Business Secretary. It is his decision and his alone, in quasi-judicial terms.

Horizon Europe

Debate between Lord Callanan and Lord West of Spithead

Wednesday 9th March 2022 Lords Chamber

[Lord Callanan (Con)]

I agree with the noble Lord that the Horizon project is very valuable. That is why we want to continue association with it and why the funding has been allocated. With regard to the funding guarantee, of course we will want to provide certainty as quickly as possible. We will have announcements to make in that regard in due course.

[Lord West of Spithead (Lab)]

My Lords, the Minister will be aware that one of the key areas of research in the Horizon programme is space, which we see as very important; the Government have done a considerable amount in that area. One area where there was great advance is OneWeb. Have the events in Ukraine effectively stopped the disposition of that satellite system? If not, where do we stand on it?

[Lord Callanan (Con)]

The noble Lord makes a very good point. Of course, there is currently a dispute ongoing with Russia about the launch of the OneWeb satellite. My right honourable friend the Secretary of State is closely involved in this and is trying to unblock it as quickly as possible. But we will not be held to ransom.

Global Warming

Debate between Lord Callanan and Lord West of Spithead

Thursday 3rd March 2022 Lords Chamber

[Lord Callanan (Con)]

My Lords, I agree with the noble Baroness; of course, we regularly undertake public information activities. The public are well aware of the risks presented by climate change and there is wide public support for action.

[Lord West of Spithead (Lab)]

My Lords, does the Minister agree that these concerns make it even more imperative that we press ahead with our plans for getting more nuclear power, and that anyone opposing that has no idea of what the risks are?

[Lord Callanan (Con)]

On this, as with so many issues, I totally agree with the noble Lord; he should, perhaps, be on this side of the House. The noble Lord is, of course, absolutely right. We need to expand our nuclear power provisions and I am delighted that we have the support of the Official Opposition for our Nuclear Energy (Financing) Bill, which is shortly to come back to the House.

Construction Sector: Roadmap to Zero Retentions

Debate between Lord Callanan and Lord West of Spithead

Wednesday 15th December 2021 Lords Chamber

[Lord Callanan (Con)]

I agree with the noble Baroness that if we could achieve that, it would be a great result. One of the workstreams that the Construction Leadership Council is taking forward, as I mentioned in my Answer, is based on the Get It Right Initiative, which would see firms with a demonstrable trade record of good performance and quality products not having retentions levied on them. In my view, that is a hopeful development.

[Lord West of Spithead (Lab)]

Does this issue have any impact on the shipbuilding industry at all?

[Lord Callanan (Con)]

I am delighted to see that the noble Lord has turned up well dressed to ask such a noble question—he puts the rest of us to shame. My understanding is that the Ministry of Defence is one of the central government departments that has done much to abolish the use of retentions in its contracts.

Drax Wood Pellets

Debate between Lord Callanan and Lord West of Spithead

Monday 13th December 2021 Lords Chamber

[Lord Callanan (Con)]

I am afraid the noble Baroness will have to write to me with details of which scheme she is referring to.

[Lord West of Spithead (Lab)]

My Lords, does the Minister think there might be merit in closing Drax and building a new nuclear power station?

[Lord Callanan (Con)]

There will certainly be merit in producing new nuclear power stations. I share the noble Lord’s enthusiasm for nuclear power. It was a shame that the Labour Government of which he was a part stopped building nuclear power stations; that was a retrograde step. We are committed to future nuclear, but we can do that alongside sustainable biofuels.

Newport Wafer Fab

Debate between Lord Callanan and Lord West of Spithead

Monday 6th December 2021 Lords Chamber

[Lord Callanan (Con)]

I share the concerns of my noble friend. This Question is getting more into foreign affairs than it is into business affairs, but I understand what he is saying. I have seen the reports and I share his concern.

[Lord West of Spithead (Lab)]

My Lords, I am disappointed by the response from the Minister. The Chinese have made a huge effort to gain intellectual property over a number of years. I had to go and warn them about this way back at the end of the 90s—they paid no attention then and they are doing it now, more and more. Here is a company with a large chunk of intellectual property, working in the area of chips—something the Chinese are not good at because the Americans have now stopped giving them to them, as they were in the past—and it seems as though we are not really focusing on this. Do we have a real strategy for constraining China’s aims in this area? It is extremely worrying.

[Lord Callanan (Con)]

Nexperia is not new to this particular company; it already owned 15% of it before the latest takeover. As I said, I cannot comment any further on that particular transaction, but we will look carefully at all the facts of the case. Our powers are being strengthened with the National Security and Investment Act coming into force on 4 January next year. We have retrospective powers under that Act and we will not hesitate to act if we need to.

Energy Prices: Electricity Bills

Debate between Lord Callanan and Lord West of Spithead

Wednesday 13th October 2021 Lords Chamber

[Lord Callanan (Con)]

Security of supply is of course absolutely vital. The UK derives this through its diversity of suppliers and by reducing reliance on any single source. In addition to our considerable domestic production, we import gas from Norway, Belgium, the Netherlands and further afield, via LNG terminals. Of course, through our ambassadors we are in regular contact with our energy partners, including Norway, the EU Commission and the International Energy Agency.

[Lord West of Spithead (Lab)]

My Lords, for several years a number of us have been banging on about the looming national shortage of electricity. My concerns are that our present nuclear power stations are going out of service at an increasing rate and that no nuclear sites are being built or planned, yet they are absolutely crucial for the provision of round-the-clock, weather-independent, low-carbon electricity. We have all seen, as we expected, that renewables alone do not cut the mustard when we really need it. Does the Minister agree that there is an urgent need to complete Hinkley Point C and to get the final investment decision for Sizewell C? When will the decision to go ahead be made?

[Lord Callanan (Con)]

I agree with the noble Lord. It has been a mistake and, indeed, it was a mistake for his party to announce a moratorium from 1997 on any new nuclear development, which lasted for 10 years. We need to get on fast with building new nuclear capacity, and we are doing just that. It will form a vital part of our baseload electricity demand.

Sovereign Defence Capability: Meggitt Takeover

Debate between Lord Callanan and Lord West of Spithead

Wednesday 15th September 2021 Lords Chamber

[Lord West of Spithead]

To ask Her Majesty’s Government what assessment they have made of the impact of a takeover of Meggitt by Parker-Hannifin on the United Kingdom’s sovereign defence capability.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, we welcome trade and investment where it supports UK growth and jobs, and which meets our legal and regulatory requirements while not compromising national security. Where we believe there are concerns, we raise them, and where we need to intervene, we will. The Government continue to monitor the situation closely. However, commercial transactions are primarily a matter for the parties involved. It would therefore be inappropriate to comment on the potential consideration of this or any other case.

--- Later in debate ---

[Lord West of Spithead (Lab)]

My Lords, I thank the Minister for his Answer. I thought that the Government had made very clear that they feel sovereign capability in these high-tech areas is hugely important for the nation, certainly in defence terms. We have now seen a succession of takeovers of highly capable British firms with a lot of high-tech workers and a huge amount of intellectual property by primarily American groups that are not primarily defence firms. Although promises have been made, I am afraid that, in terms of keeping the firms in being and running them as they were, those promises do not seem to have been kept. This is extremely worrying. Is there some way more than he has already described of ensuring that we do not lose high-tech jobs, that these firms are not broken up and that we keep a controlling interest? Is there, for example, any sense in having a golden share?

[Lord Callanan (Con)]

The noble Lord is tempting me down a path down which I cannot go. The United States is a valued trade partner and a large source of inward investment in the UK. UK and US officials work closely together to protect against any hostile foreign investment that threatens our shared security. We have a shared interest in keeping important defence suppliers in safe hands.

National Security and Investment Bill

Debate between Lord Callanan and Lord West of Spithead

Consideration of Commons amendments
Wednesday 28th April 2021 Lords Chamber

[Lord Callanan (Con)]

I thank all noble Lords who have contributed; it has again been a good demonstration of the quality of contributions from this House. I have listened very carefully to the points that have been made, in particular by the noble Lords, Lord West, Lord Campbell and Lord Butler, and by my noble friend Lord Lansley.

I will address the primary issue head on. This was raised by the noble Lords, Lord West and Lord Campbell, and the noble Baroness, Lady Hayter. It is the issue of whether the BEIS Select Committee will have access to “top secret” information. We will make sure that the BEIS Select Committee has the information that it needs to fulfil its remit and scrutinise the work of the ISU under the NSI regime. Much of this is unlikely to be highly classified and, where the Select Committee’s questioning touches on areas of high classification, it is likely that the relevant information could be given in a way that does not require as high a classification and provided to the committee confidentially. If, however, the BEIS Select Committee requires access to highly classified information, we will carefully consider how best to provide it, while maintaining information security in close collaboration with the committee’s chair.

Another point made by the noble Lord, Lord West, was that the current system for scrutiny is run out of the Cabinet Office and therefore comes under the ISC’s unit, so the Bill reduces the ISC’s remit. The Government’s main powers to scrutinise and intervene in mergers and acquisitions for national security reasons in fact come from the Enterprise Act 2002; the powers under that Act sit with the Secretaries of State for BEIS and DCMS, not in the Cabinet Office. Giving the BEIS Select Committee oversight of the new NSI regime is entirely in keeping with this and does not represent a reduction of the ISC’s remit.

A point made particularly by my noble friend Lord Lansley was about changing the memorandum of understanding, but the question here is not whether the MoU allows for the role proposed by noble Lords, but whether that role is appropriate. Our answer—and I appreciate that noble Lords will disagree—is no. The Government have made their case, which comes off the back of a resounding vote by the elected Chamber, that no change should be made to the Bill in relation to reporting to the Intelligence and Security Committee. We maintain our view that the BEIS Select Committee remains the place for scrutiny of the investment security unit and that the Intelligence and Security Committee remains the appropriate committee for scrutiny of the intelligence services, in accordance with the memorandum of understanding and the Justice and Security Act 2013. With acknowledgement to all who have spoken and with regard to the points that I have made, I appreciate the difference of opinion on this, but ask once again that the House does not insist on these amendments.

[Lord West of Spithead (Lab)]

My Lords, first, I thank those who spoke in support of my Motion. They have an incredible amount of knowledge about this issue. I find the Government’s position extraordinary and I feel sorry for the Minister opposite—for whom I have great respect—who has to parrot arrant nonsense. As an admiral and a captain who had defaulters in front of me, I have had people spouting arrant nonsense at me and I know how to spot it. This is arrant nonsense and I find that rather sad. It is unfortunate that he has to do this as I am sure that, deep down, he does not believe it, because he is an intelligent chap. I am appalled that the Government are not willing to give ground on this and I cannot understand why—I really cannot. This is not a great party-political issue or anything like that. It is quite extraordinary, so I am afraid that I will test the opinion of the House.

National Security and Investment Bill

Debate between Lord Callanan and Lord West of Spithead

Report stage
Thursday 15th April 2021 Lords Chamber

[Lord Callanan (Con)]

My Lords, perhaps I may start by welcoming back to the Front Bench the noble Lord, Lord Rooker, who is an extremely adequate substitute, if I might say. It is a delight to see him back and fully recovered from injury.

There have been a lot of analogies about rugby and positions in this debate. I did not really play much rugby in my career, which is probably a good thing, but the occasional time that we played at school, I seemed always to be the hooker, which seemed, in the poor quality of rugby that we played, to be the one in the middle of the scrum being kicked by everybody else—somewhat appropriate in this debate.

I thank the noble Lords, Lord West and Lord Butler, for their Amendments 24 and 33, which would require the Secretary of State to provide additional information on regime decisions, either in the annual report, or, where details are too sensitive to publish, in a confidential annexe to the Intelligence and Security Committee. This information would include summaries of decisions to make final orders or to give final notifications, and summaries of the national security assessments provided by the security services in relation to those decisions.

A number of noble Lords have spoken with such passion and knowledge on this important issue, both in this debate and when we previously discussed amendments in this area during Grand Committee. I am particularly grateful—I say this genuinely—to the noble Lords, Lords West and Lord Butler, for their careful consideration of the words used by my colleague my noble friend Lord Grimstone during Grand Committee, and for their continued pursuit of an amendment that attempts to satisfy all parties.

The noble Lords’ amendment would effectively require the Secretary of State to include material provided by the security services in a confidential annexe. Of course, the ISC is already able to request such information from the security services as part of its long-established scrutiny of those organisations, as is set out in the Justice and Security Act 2013 and its accompanying memorandum of understanding.

I will directly address the issue raised by the noble Lord, Lord West, and others, about the BEIS Select Committee and its access to sensitive or classified information. The Government maintain their view that there is no barrier to the committee handling top-secret or other sensitive material, subject to agreement between the department and the chair of the committee on appropriate handling. As part of its role, the BEIS Select Committee can request information, which may include sensitive material, from the Secretary of State for BEIS, including on the investment security unit’s use of information provided by the intelligence and security agencies. The Select Committee already provides scrutiny of a number of sensitive areas and there are mechanisms in place for them to scrutinise top-secret information of this kind on a case-by-case basis.

The amendment would also require sensitive details to be provided to the ISC of the Secretary of State’s decisions in respect of final notifications given and final orders made, varied, or revoked. As we discussed earlier, the Bill already provides that the Secretary of State must publish details of each final order made, varied, or revoked. The Government have also recognised that providing this information at an aggregate level will be helpful, and Amendment 32 in my name would require the Secretary of State to include the number of final orders varied and revoked in the annual report. Even without Amendment 32, Clause 61 already requires the report to include the number of final orders made. The Secretary of State must also include in his annual report a number of other details pertinent to this amendment. I am confident that this will provide a rich and informed picture of the Government’s work to protect our national security from risks arising from qualifying investments and other acquisitions of control.

As I have said before, for further scrutiny, we welcome the fact that we can follow existing appropriate government procedures for reporting back to Parliament, including through responding to the BEIS Select Committee, which does such an excellent job of scrutinising the work of the department. As the Secretary of State for BEIS said on 13 April, during a session of that committee, the NSI Bill “sits within BEIS” and the powers of the Bill sit with the Secretary of State for BEIS.

The chair of the BEIS Select Committee—who, I remind noble Lords, is an Opposition Member of Parliament—supported the view that his committee should scrutinise the investment security unit as part of its oversight of the department. Therefore, it makes sense that, from a governance perspective, the BEIS committee should be the appropriate scrutinising committee.

As this was discussed at length in Grand Committee, I do not wish to try the patience of the House by repeating the assurance that my noble friend Lord Grimstone, the Minister, provided to the House on the ability of the BEIS Select Committee to request and see materials regarding the work of the investment security unit. Therefore, I hope—it is probably more in hope than expectation—that noble Lords will accept my explanation and feel able to withdraw their amendments.

[Lord West of Spithead (Lab)]

My Lords, I thank all those who had an input in this debate, particularly those supporters. We almost got a full scrum, with the noble Lord, Lord Lansley, added as well—we had a bit of weight there. We are more second than front row, to be quite honest, but I have now found that the Government Minister is actually a hooker, so we have a bit of front row around. As he rightly says, the hooker gets punched by everyone—I am afraid that that is the way that it is going tonight.

I have considerable sympathy for the Minister: I was in that position when I had to argue for 90 days pre-trial detention. Because I am not really a politician, I had actually already said on the “Today” programme that I thought that this was a very dodgy thing to do—and then I had to stand at the Dispatch Box and argue for it. Lo and behold, I am in Guinness World Records for the biggest defeat of the Government since the House ceased being entirely hereditary—so I feel for the Minister.

However, I am afraid I question a couple of the things that he said—for example, the chairman of the BEIS Committee has no objection to my amendment at all, so he was given some wrong information there. I also fear that the Minister has failed to provide an explanation for the Government’s intransigence and indeed seems willing to stop Parliament having a mechanism whereby it can scrutinise highly classified intelligence, based on which key decisions are made. To cut it short—I have spoken for far too long—I therefore have no choice but to test the opinion of the House on this key amendment.

Global Navigation Satellite System

Debate between Lord Callanan and Lord West of Spithead

Wednesday 10th March 2021 Lords Chamber

[Lord West of Spithead]

To ask Her Majesty’s Government whether the design and development research for the United Kingdom Global Navigation Satellite System has been completed; and if not, what is the timeline for (1) the development of the requirements, and (2) the procurement, of that system.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, the space-based positioning, navigation and timing programme is one of the key programmes in the Government’s major projects portfolio. This underscores the importance of strengthening resilience for critical national infrastructure, given the wide use of PNT services. The UK’s requirements for trusted services will be confirmed in March as part of a national PNT strategy. In response to the strategy, the programme will identify in November a preferred space-based solution to improve our PNT resilience as part of a mix of technologies.

[Lord West of Spithead (Lab)]

My Lords, the outrageous behaviour of our European friends over the use of the Galileo system necessitates our going our own way, or in league with the Five Eyes community, our real friends, over the provision of additional GPS. Such a system is critical, as the Minister says, not just for defence and security but for a broad swathe of things in this country. There are real concerns over resilience. There is a great deal of confusion, misinformation and fake news swirling around about OneWeb. It is time to get clarity and a sense of urgency. Have we decided on the use of low-earth-orbit capabilities for a sovereign-based PNT system, also providing secure satellite communications, not least 5G connectivity?

[Lord Callanan (Con)]

I thank the noble Lord for his question. We have always been clear that the possible provision of PNT services was not the rationale for our investment in OneWeb. The programme is analysing a number of ideas for concepts in low earth orbit, and OneWeb is of course one of the many companies that are contributing to that.

World Energy Outlook 2020

Debate between Lord Callanan and Lord West of Spithead

Tuesday 20th October 2020 Lords Chamber

[Lord Callanan (Con)]

Indeed, I agree with the noble Baroness. In a previous answer I referenced the green homes grant: £2 billion worth of green stimulus investment that is going to generate hundreds of thousands of jobs. I have been in discussions with lots of contractors that are already expanding their workforce. We have provided training grants to enable them to upskill both existing and new employees. I agree with the point that the noble Baroness is making.

[Lord West of Spithead (Lab)]

My Lords, nothing in the IEA’s World Energy Outlook 2020 changes the need for the UK to have a viable nuclear power sector producing about 30% of the future daytime electricity demand of 80 gigawatts by 2050, when, of course, we are planning to have net zero emissions. The provision of nuclear power needs planning and a clear programme of build and provision. That cannot be done at the last minute—often it takes decades—yet it appears that the plan for nuclear power is in disarray. When will the Government produce a clear statement of what is planned for the nuclear power provision required by 2050? Is it “shortly”?

[Lord Callanan (Con)]

It is indeed shortly. We will provide more detail on nuclear power in the energy White Paper, but, as I said to my noble friend Lady Neville- Rolfe, we see much of the future being in small modular nuclear reactors.

Rolls-Royce

Debate between Lord Callanan and Lord West of Spithead

Wednesday 14th October 2020 Lords Chamber

[Lord Callanan (Con)]

My Lords, when companies announce these decisions it is, of course, a difficult time for all concerned. We are in extensive dialogue with Rolls-Royce and other high-technology companies to do whatever we can, within the limits of what is possible, to retain those jobs in the United Kingdom. I have already outlined the massive and enormous support that we are giving to Rolls-Royce at this difficult time.

[Lord West of Spithead (Lab)]

My Lords, in August, Rolls-Royce reported a first-quarter underlying operating loss of £1.7 billion, £1.2 billion of which was to do with civil aerospace and is Covid related. That is presumably why it has broken an agreement it had with the UK Government and moved work promised to UK workers to Singapore. Rolls-Royce is well placed, looking ahead, to provide low-carbon power solutions with the support of the UK Government—and that government support should depend on its benefit to highly-skilled UK workers. Will the Minister confirm that the Government will prioritise the work by the UK small reactor consortium—building on Rolls-Royce’s long history of providing nuclear reactors to the Royal Navy—thereby ensuring affordable nuclear power operations, and that this work will take place in the United Kingdom?

[Lord Callanan (Con)]

I congratulate the noble Lord on getting the Royal Navy, a matter close to his heart, into his question again. But to be serious, I agree that we need to develop the next generation of small modular reactors, and we are providing support to enable that to happen.

Energy White Paper

Debate between Lord Callanan and Lord West of Spithead

Monday 28th September 2020 Lords Chamber

[Lord Callanan (Con)]

In December 2018, the Government launched a new siting progress to identify a suitable location in which to construct a geological disposal facility. This is of course a consent-based process that is looking to identify both a willing host community as well as a location with the suitable geology in which to construct such a geological disposal facility.

[Lord West of Spithead (Lab)]

My Lords, the Minister is well aware of my passion for ships and the need for the Royal Navy to have more, and also my huge support for a sensible nuclear power industry. But I am also delighted that it appears that hydrogen is being considered for future power. Will the Minister confirm that, in the energy White Paper, hydrogen is being addressed and that the supply and demand sides of the hydrogen economy will also be addressed—for example, a push towards hydrogen vehicles?

[Lord Callanan (Con)]

I was wondering how the noble Lord would get warships into this Question, but he has of course managed it. The White Paper will set out the proposals for the use of hydrogen and carbon capture and storage. They are key to our planning as we seek to decarbonise gas by 2050 for net zero, because of the potential they have to allow us to decarbonise both nationally and regionally while creating new, high-value jobs. Hydrogen will be a key part of the energy mix in the future. We are looking very closely at investing in it and we will be setting out a further strategy on that.

Oil and Gas Industry

Debate between Lord Callanan and Lord West of Spithead

Tuesday 22nd September 2020 Lords Chamber

[Lord Callanan (Con) [V]]

My noble friend makes a very good point. It will be key to the sector deal to make sure that we can utilise the tremendous expertise across the oil and gas sector both for our own low-carbon transition and to help other countries with theirs.

[Lord West of Spithead (Lab)]

My Lords, the Oil and Gas Authority is only just beginning to take account of the UK’s statutory target for net-zero emissions of greenhouse gases by 2050. Official projections from the Department for Business, Energy and Industrial Strategy take no account of that requirement. Our nation is sleepwalking into an energy crisis of major proportions. National daytime electricity demand is forecast to double from 40 to 80 gigawatts by 2050, when we should have net-zero emissions. Oil and gas will have to be phased out, yet the Government’s industrial strategy does not mention the need to retrain and redeploy oil and gas workers. Although renewables can achieve much, there will always be days when wind and sun cannot meet our demands. Nuclear power provides the green option, yet we are discovering daily that the plan for nuclear power is in growing disarray. How do the Government intend to resolve this imminent crisis of secure nuclear power provision?

[Lord Callanan (Con) [V]]

I do not accept that we are sleepwalking into a crisis. We are devoting huge expertise and energy to planning for the transition. Renewables and nuclear have an important role to play in the transition, as do oil and gas. However, the noble Lord will have to be patient and wait for the energy White Paper, when all these matters will become clear.

Small and Medium-sized Enterprises: Public Procurement Contracts

Debate between Lord Callanan and Lord West of Spithead

Monday 7th September 2020 Lords Chamber

[Lord Callanan (Con)]

The noble Lord makes a very good point. We encourage all SMEs that are interested in bidding for public sector opportunities to use Contracts Finder, which lists all tenders over £10,000. SMEs can create an account to get email updates for opportunities that align with their business interests. Public sector contracts are, of course, awarded after a fair and open competition process and commercial buyers are encouraged to ensure that all tenders are suitable for SMEs

[Lord West of Spithead (Lab) [V]]

My Lords, one area where there is a ready-made opportunity for boosting our industrial output and supporting struggling —and, indeed, collapsing—SMEs is defence. The Prime Minister recently stated that our nation requires

“a shipbuilding industry and Royal Navy that reflect the importance of the seas to our security and prosperity.”

Hurrah for that, but our shipyards—and particularly the SMEs that support them—are in dire straits. They need a commitment to a rolling programme of warship building if they are to survive, and the Navy is desperate for more ships. Can I ask the Minister whether this requirement is being given prominence in the current integrated defence review?

OneWeb

Debate between Lord Callanan and Lord West of Spithead

Wednesday 8th July 2020 Lords Chamber

[Lord Callanan]

Given the commercial considerations, at the time I am unable to provide further detail on our ongoing discussions. However, we will have strong representation on the board, we will be fully involved in setting the strategic direction of the business, and we will of course be discussing the future of the business and the merits of bringing in additional shareholders with our partners in due course.

[Lord West of Spithead (Lab) [V]]

My Lords, I am convinced that we should capitalise on our world-leading satellite capability and, if possible, expand it. Although there are risks, putting Galileo in the shade would be very good news, and I congratulate the Government on this vision, albeit that it is high-risk. As we move on from the impact of Wuhan virus and Brexit, does the Minister agree that we must grasp the new technologies of AI, quantum engineering, the internet of things, big data et cetera, and that it is a disgrace that a country with the scientific capability of the UK does not have an equivalent of Silicon Valley? In 1946, it was decided that for national security we should develop an atom bomb. The cost was huge. Does the Minister agree that for reasons of national security, we should generate an equivalent of Silicon Valley and an ability to create a world-beating, resilient telecommunications network, even if the cost is huge, and, ditto, civil nuclear power?

[Lord Callanan]

The noble Lord asks a lot of questions and there is not time to address all of them. We are investing in this as a one-off strategic opportunity to own a satellite communications network, working with Bharti Global Ltd, and to support our ambition for the UK to be a pioneer of novel satellite technologies. We are delighted that our bid was successful.

Oil: Changes in Global Markets

Debate between Lord Callanan and Lord West of Spithead

Thursday 21st May 2020 Lords Chamber

[Lord Callanan]

As well as maintaining contacts with other countries, we invest considerable funds in helping countries in the transition and in promoting their domestic carbon reduction targets. The noble Baroness makes an important point and we will keep that in mind.

[Lord West of Spithead (Lab)]

My Lords, oil was trading at over $34 a barrel for West Texas Intermediate and $32 for Brent Crude by early Monday—up from a month ago, but 50% less than at the beginning of the year. The impact on fracking has been huge. There are fewer rigs now operating in the USA—some 600 or so less than at the beginning of the shale revolution. Low prices and market volatility have serious implications for countries that rely on oil exports, with, I believe, considerable impact on global security. The volatility also strengthens the need for the UK to speed up development of nuclear elements of our electrical energy supply. Can the Minister tell me when Hinkley Point C and the next new nuclear power station after that will be connected to the grid, and confirm that work continues despite the Wuhan virus?

[Lord Callanan]

The noble Lord is right to draw attention to the implications for international security from low prices and the impact that it will have on producing countries. We will continue to monitor the situation closely. We believe in a diverse energy supply in the UK, including nuclear. I cannot yet give him a specific date, but we will want to get the new nuclear power station on stream as quickly as possible.