Nuclear Update

Debate between Lord Goldsmith of Richmond Park and Greg Clark

Thursday 17th January 2019 Commons Chamber

[Greg Clark]

The Prime Minister has repeatedly discussed nuclear investment with the Prime Minister of Japan, as have I with my opposite number there. In fact, in November, I flew to Tokyo to discuss the negotiations going on here, given the difficulties that the investor was having, and I met my opposite number at the Japanese Ministry of Economy, Trade and Industry. This has been a substantial, and cordial, Government-to-Government relationship, and the hon. Gentleman has my assurance that we will continue that. I mentioned in my statement the work of our embassy in Tokyo, which has been an excellent and expert source of advice. That will continue to be available.

When it comes to investment in renewables, the hon. Gentleman will know that Wales is a substantial and proud leader in renewable energy. I think Gwynt y Môr is the second largest wind farm already deployed in Europe. I mentioned in my statement the rising availability of alternative technologies. To put this in context, in 2017 we procured more than 3 GW of offshore wind in a single contract for difference auction at £57.50 per MWh. That is more in a single auction than this plant was going to provide. As I have said, the challenge is the competition coming from other technologies, and Wales is a beneficiary of some aspects of that.

[Zac Goldsmith (Richmond Park) (Con)]

In his statement, my right hon. Friend said that the economics of the energy market had changed significantly in recent years, meaning that renewable energy could now be not only cheap but readily available. Does he share my concern that consumers will not see all the benefits of the reduced prices, given that we are bound into these exceedingly long-term and hugely expensive contracts? An example is Hinkley, whose strike price means that it will probably be the most expensive form of energy in the history of energy generation. Can he give me an assurance or commitment that nuclear power will not result in consumer bills skyrocketing in the years to come?

[Greg Clark]

That is demonstrated in my statement today. We were talking about a strike price substantially less than that of Hinkley, and I said when I made my statement to the House on Hinkley that we would do that. I say gently to my hon. Friend, who is a lifelong environmentalist, that exactly the same arguments were advanced against the initial contracts for offshore wind—namely, that they would be burdensome and that we should not enter into them. We have now seen substantial capacity becoming available at prices that will shortly be free of subsidy entirely. That is an excellent development for consumers, for the reasons that he has given, but it is also the case that the manufacturers in the supply chain are located right across the UK, which is a further industrial benefit of the strategic policy.

Hinkley Point C

Debate between Lord Goldsmith of Richmond Park and Greg Clark

Thursday 15th September 2016 Commons Chamber

[Greg Clark]

No, I have said that the construction costs will be entirely financed by the private investors in the site. It is important that we take a consistent long-term approach to energy policy, and in so far as this can be cross-party, that will be beneficial. It is especially ironic that two Liberal Democrat Energy Secretaries were closely involved in the negotiation of this deal. The right hon. Gentleman obviously takes a different view.

[Zac Goldsmith (Richmond Park) (Con)]

Can my right hon. Friend confirm that, by the end of its life, this new power plant will have generated the most expensive energy in the history of energy generation? Does he agree with the National Audit Office that, by that point, consumers will have ended up subsidising EDF to the tune of £30 billion? Finally, can he tell us what is going to happen to the mountains of nuclear waste that this plant will generate?

[Greg Clark]

Securing a reliable source of energy for 60 years is a good investment in the future stability of our energy supplies, and that is worth having. Of course it is impossible to know what the alternatives will be during that time. We have seen very volatile energy prices. Sir Winston Churchill’s principle on energy security was that diversity, and diversity alone, was the key. I think that that is the right approach. I said earlier that decommissioning was provided for explicitly in the contract.

Oral Answers to Questions

Debate between Lord Goldsmith of Richmond Park and Greg Clark

Thursday 25th November 2010 Commons Chamber

[Zac Goldsmith (Richmond Park) (Con)]

17. When he plans to publish the localism Bill.

[The Minister of State, Department for Communities and Local Government (Greg Clark)]

The localism Bill contains a wide range of measures to shift power from central Government into the hands of individuals, communities and councils. The Bill frees local government from central and regional control and strengthens local democracy. In addition, it gives greater power over planning, housing and other services and allows councils and councillors to be better held to account. The Bill will be published imminently.

--- Later in debate ---

[Greg Clark]

The planning provisions in the localism Bill will allow every neighbourhood in the country, including parishes, to set its own local neighbourhood plan. That will mean that they can design the look and feel of their neighbourhoods going forward into the future and in so doing take away the bureaucracy that is involved in taking planning applications through the development control process. If we capture it in the plan, we will not have that bureaucracy and uncertainty.

[Zac Goldsmith]

I welcome the Government’s commitment to include local referendums in the localism Bill. Does my right hon. Friend agree that if the results of those referendums are not binding, their status will be only marginally higher than that of an ordinary petition, although they will be a lot more expensive? Will he bring in proper referendums that are legally binding?

[Greg Clark]

I know that my hon. Friend is a great champion of referendums, as he has organised one in his own constituency. The localism Bill contains binding referendums on subjects such as whether to introduce mayors, the neighbourhood plans that I mentioned earlier and excessive increases in council tax. It also contains provisions for advisory referendums that will test public opinion and can influence policies. Sometimes it is appropriate to nudge councils to do the right thing. This will be perhaps more of a shove than a nudge, and I think it will be difficult to ignore.