UK Nuclear Energy Programme
Debate between Lord Hain and Ed Davey
Mr Davey
I pay tribute to my hon. Friend, who has championed this investment over a number of years. I saw on my rather wet visit this morning to Hinkley Point C that he is well known on the plant. The fact that he is focusing on the skills agenda, and that the Prime Minister and I met a lot of young apprentices who are looking forward to working at Hinkley Point C for many years, shows the potential for this development—what it means for the community that my hon. Friend represents, the wider economy and the British economy. It is indeed a good day for the British economy.
Mr Peter Hain (Neath) (Lab)
Even accepting the case for Hinkley, why is the Secretary of State not giving in-principle support to the Severn barrage, which would deliver clean green energy at half the price, at a similar strike price, over three to four times the lifespan of Hinkley and with three times the number of jobs? I just do not understand it.
Mr Davey
I am grateful for the right hon. Gentleman’s persistence in this issue. He knows that I have met him and looked at the figures that have been produced by those who want to see a Severn barrage created. It would not be at half the price; it would probably be at double the price; it is extremely expensive. No one would be more delighted than I if we could see tidal power in the Severn. I believe it will come, but the price will have to come down because we must protect the consumer.
Oral Answers to Questions
Debate between Lord Hain and Ed Davey
Mr Davey
My hon. Friend will know that we have done an awful lot to ensure clarity in the strategy to encourage private investment. As he will know, it is not for the Government to build gas power stations, but our gas generation strategy set out a long-term framework for gas investment last year, and with the announcement of the capacity market on 27 June, I think we have a process for encouraging that investment.
Mr Peter Hain (Neath) (Lab)
Is the Secretary of State aware that the Severn barrage will contribute 5% of Britain’s electricity needs? In deciding on the Government’s response to the Energy and Climate Change Committee’s report, will he support the project in principle and treat it exactly the same as other major power station projects, such as Hinkley, round 3 offshore wind and so on, allowing Hafren Power to raise the risk finance for the necessary work on habitats, environmental impact assessment planning, the strike price and other issues? Otherwise, he might as well kill off the project now.
Mr Davey
Obviously, I shall not prejudge our response to the Select Committee, which, as the right hon. Gentleman will know, was not very positive about the Severn barrage scheme, not least because of the costs involved, but if he studies our announcements on draft strike prices for contracts for difference for renewables, he will see in there strike prices for tidal projects as well. It is absolutely clear that we will proceed only if we get value for money for the economy, the consumer and business.