Electric Vehicle Battery Production

Lord Walney Excerpts

Monday 23rd January 2023 Lords Chamber

[Lord Callanan (Con)]

Jaguar Land Rover has an exciting future. It is an excellent company, providing brilliant vehicles that are exported all over the world. I am sure that it wants to make sure that its supply chain is appropriately robust.

[Lord Walney (CB)]

What would the Government do differently in future? What have they learned as a result of this failure—or is the Minister’s position genuinely that it is just one of those things, and these things happen?

Energy Supplies

Lord Walney Excerpts

Wednesday 12th October 2022 Lords Chamber

[Lord Callanan (Con)]

Well, we have had some extensive debates, as the noble Baroness knows. We had an excellent Second Reading and two days in Committee. I am sure that we will want to look at when that returns to the House.

[Lord Walney (CB)]

My Lords, do the Government accept that public and community support for fracking projects and others such as onshore wind could be greatly increased if it was made easier—perhaps even mandated—for companies to share the revenue directly with local consumers in the environment of the projects where they are either fracked or where the wind turbines go up?

Economy: The Growth Plan 2022

Lord Walney Excerpts

Monday 10th October 2022 Lords Chamber

[Lord Walney (CB)]

My Lords, I want to focus on the parts of the growth plan targeted at regional disparities—the drive to level up the country. I draw your Lordships’ attention to my role as chair of the Purpose Business Coalition, which encompasses the levelling-up goals architecture.

The new Administration have not yet set out in detail how significantly their approach to levelling up will differ from the last. However, the signalling—including the briefing about de-Goveing Whitehall and wanting to dismantle the former Levelling Up Secretary’s strategy—suggests that the focus on delivering growth through taxation and deregulatory measures in the new investment zones will replace the activist approach to tackling regional disparities set out in the levelling-up White Paper of February this year rather than supplementing it. I very much hope that is not the case.

While the policy programme remained underdeveloped, the White Paper showed that the Government understood a fundamentally important point that had eluded Governments of both colours for decades: the importance of successful capacity building in areas being left behind. That lack of local agency is a key factor holding back many areas, and national government has a role to play there to help build up local institutions, governance capacity, its skills base and of course its physical infrastructure. It was really important that that was stated front and centre in the levelling-up White Paper. Without that, the geographical disparities that exist within regions, as well as between regions, may well widen further—an acceleration of the decades-long trend that has seen, in the main, large cities, including in the north, making significant and commendable progress but with provincial towns, such as the area that I used to represent in the other place, without the tools to keep up.

It is not too late for the new Administration to embrace a twin-track approach: supply-side change without dismissing the idea of active, joined-up government as some kind of quasi-socialist meddling, as some of the more wayward of the off-the-record briefings in the last couple of weeks seemed to suggest it is. I hope they will, and, I humbly suggest, that so will many of their new MPs in those northern constituencies.

The existing programme of infrastructure investment earmarked from the levelling-up and towns funds need not be sacrosanct in full. Much of it was targeted in town centres that have since been further ravaged by the Covid lockdowns. Reassessing whether those commitments remain the best way to target scarce resources would be understandable, although probably unwelcome for many of those new MPs, particularly in the north of England.

Finally, there must be a question mark over the extent to which companies would take advantage of relaxation of regulatory standards in investment zones, aside from the fierce debate that change in particular areas, such as environmental or employment legislation, would entail. As they decide what options to give the new zones, I hope Ministers will keep in mind the scale of change in boardrooms in recent years: how important it is now for companies to be, and be seen to be, good citizens making a positive impact in the communities in which they are based. Driven by genuine leadership and the market forces of ethical investors, discerning consumers, and the young graduates and school leavers they are in a race to attract, this is now mainstream within boardrooms. That means that if loosening standards happened in investment terms, it would not necessarily drive the change in business behaviour which would be needed if it was to successfully drive up productivity.

North Sea Oil and Gas

Lord Walney Excerpts

Thursday 10th February 2022 Lords Chamber

[Lord Callanan (Con)]

Indeed, my noble friend makes a very good point. The House will shortly have the opportunity to consider the Nuclear Financing Bill, which has its Second Reading on 21 February, I believe.

[Lord Walney (CB)]

The Government agree—do they not?—that the actions of President Putin show that the whole of the West needs to increase the priority it gives to energy security. New nuclear must be part of that, but it should cause us to rethink some of the finely calibrated decisions on fossil fuels here in the UK if it can mean extra security for our western partners.

Energy Prices: Electricity Bills

Lord Walney Excerpts

Wednesday 13th October 2021 Lords Chamber

[Lord Walney (CB)]

My Lords, will the Government redouble their efforts to persuade our European partners to resist the siren voices from the Kremlin over Nord Stream 2, in the knowledge that President Putin’s regime will only try to exacerbate this cost-of-living crisis and not bring benefit to our or European citizens?

[Lord Callanan (Con)]

The noble Lord makes an extremely good point. We remain very concerned about the impact of Nord Stream 2 on European energy security and particularly on the interests of Ukraine. We will continue to raise our significant concerns about the project, defend the interests of Ukraine, support future arrangements and give a significant transit role to them.

Global Navigation Satellite System

Lord Walney Excerpts

Wednesday 10th March 2021 Lords Chamber

[Lord Callanan (Con)]

I outlined in answer to three other questions the rationale for our investment in OneWeb.

[Lord Walney (Non-Afl)]

Further to what a number of speakers today have said, could the Minister clarify whether the Government are pursuing a formal partnership with our Five Eyes allies? Would that not be a good idea for our long-term security?

[Lord Callanan (Con)]

That is indeed one of the points that are being considered in the review, which will be reporting at the end of March. We will then outline a business case and, if there can be collaboration with our Five Eyes partners, I am sure we would want to go down that route.

Energy White Paper

Lord Walney Excerpts

Wednesday 16th December 2020 Lords Chamber

[Lord Walney (Non-Afl)]

It is now two years since the Toshiba NuGen deal in west Cumbria collapsed. Small modular reactors are very welcome but are still many years off, so what are the Government doing to maintain the world-class nuclear skills base in that county and prevent it dissipating?

[Lord Callanan (Con)]

Coming from the north myself, albeit from the north-east and not the north-west, I understand the challenges that the noble Lord refers to. The commitment is to enter into negotiations regarding the Sizewell C project in Suffolk, but we keep all these options regarding nuclear power at different sites under review. First, we will see how this goes and then move forward with SMRs and AMRs as well, which do have potential. I am sorry that I cannot give the noble Lord a commitment at the moment, but we keep these options under consideration.

Net Zero Emissions Target

Lord Walney Excerpts

Wednesday 12th June 2019 Commons Chamber

[Greg Clark]

The hon. Gentleman is absolutely right that we should have the best arrangement. In fact, that inter-ministerial group does exist, and my hon. Friend the Minister for Energy and Clean Growth chaired its most recent meeting just last week. The hon. Gentleman should reflect on the creation of my Department, which brought together the responsibilities for business and industry with energy and climate change, because that is a recognition that if we want, as we must, to take action to achieve the targets, we must make sure that the economy is run and companies operate in a way that supports that action. It is a practical example of just the kind of thinking and acting that the hon. Gentleman advocates.

[John Woodcock (Barrow and Furness) (Ind)]

The 2050 deadline is of course important, but anyone who has seen how Parliament is squandering its time ahead of 31 October will understand that deadlines are not sufficient in and of themselves. What is the Secretary of State going to do on two critical issues: what is he going to do to rescue the Moorside nuclear deal and Wylfa; and will he meet the team behind the strategic business case that is being put together for the plan for a tidal barrage across Morecambe bay and the Duddon, which could be transformative?

[Greg Clark]

I am happy to meet anyone who has a contribution to make, both to reducing our emissions and to achieving technological advances. On the nuclear industry, the hon. Gentleman knows that the financing of new nuclear power stations has been done commercially, and we are reviewing the financing model to see whether a different approach might address some of the difficulties that private sector investors have had in financing the scale of investment required for new nuclear. That review will report soon.

Small Modular Reactors

Lord Walney Excerpts

Wednesday 20th February 2019 Westminster Hall

[John Woodcock (Barrow and Furness) (Ind)]

It is great to see you in the Chair, Mr Paisley. I congratulate my neighbour, the hon. Member for Copeland (Trudy Harrison), on securing this debate and on continuing to be a champion for the industry. It is great to work with her on that. It is good to see the Minister in his place. There were some doubts about that this time last week, and it is probably a good job the debate is happening this week, given everything else that is happening.

I endorse everything that has been said about small modular reactors. Fellside should be right up there at the forefront as a pathfinder for SMRs in this country. However I will use my brief time to say that while SMRs are absolutely necessary, they can never on their own be sufficient to solve the huge energy gap now opening up in our future.

The Minister and his boss are probably doing God’s work in trying to wrench the Government from total madness on the Brexit deal, but that illustrates the lack of focus across Government on our wider energy future at a critical time. We have the crisis derailing the Moorside deal, and Wylfa is in a very difficult patch. Where will our energy come from? We do not know what our relationships will be with other energy-producing nations in 10, 20 or 30 months’ time, never mind 10, 20 or 30 years. We have got to secure Britain’s future by securing our energy, and the only reliable way to do that is through UK nuclear energy.

I am sick of us going and pleading with other nations and things not quite going well. We see that everyone is working really hard but it does not quite get results. We need to get back into UK nuclear—not simply taking a stake, but taking the lead. Let us show the world that we, who created the fabulous nuclear energy in the 1950s in Cumbria, can do that again with a new nuclear revolution, led by Government and backed—I would imagine—by many Members here.

Nuclear Power: Toshiba

Lord Walney Excerpts

Monday 12th November 2018 Commons Chamber

[John Woodcock (Barrow and Furness) (Ind) (Urgent Question)]

To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on Toshiba’s decision to withdraw from the development of a nuclear power plant at Moorside in Cumbria.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

At its board meeting last Thursday, the Japanese company Toshiba confirmed that it proposed to wind up its subsidiary NuGen following an earlier decision to exit the overseas nuclear power business. This followed the well known financial difficulties of Toshiba’s US subsidiary, Westinghouse. Following that, Toshiba considered the sale of NuGen, but, having failed to agree terms, the Toshiba board decided that the company will instead be wound up. I met board members of Toshiba in Tokyo on Wednesday, and they confirmed that the board’s decision was a commercial one. The decision is ultimately a matter for Toshiba and we fully understand the challenging circumstances that that company has faced over the past 18 months.

The Moorside site in west Cumbria is owned by the Nuclear Decommissioning Authority and the land will revert to the NDA. It remains a potential site for nuclear new build and the NDA will consider a range of options for its future. The Government are fully committed to new nuclear being part of a diverse supply of energy. The EDF-led Hinkley Point C is under construction and future potential projects include Wylfa, Sizewell C, Bradwell and Oldbury. All projects are developer-led and can proceed if, and only if, they satisfy the most stringent safety and regulatory approvals process and if, at the point of a contract being issued, they demonstrate value for money compared with alternative sources of electricity generation available at the time.

I recognise that last week’s announcement will be a disappointing but not an unexpected one to the people of west Cumbria. One thing is certain: west Cumbria will continue to be a centre for excellence in civil nuclear. It is of huge strategic importance to the UK and a source of large numbers of highly skilled and well-paid jobs and will be for many decades to come.

[John Woodcock]

And so the people of Cumbria are thrown under a bus. I thank the Secretary of State for that statement, but I have to say that it is extraordinary that he has had to be dragged to the Chamber to make it rather than offering it proactively on a project that will affect up to 21,000 jobs in the constituency of the hon. Member for Copeland (Trudy Harrison) and many, many in my constituency and across Cumbria.

In his initial statement, the Secretary of State did not even commit to a new civil nuclear power plant in the Cumbrian area. It is just not good enough. It is not good enough for the Government to hide behind the idea that this is simply a commercial decision, because he knows that if the Government had offered terms to NuGen, to Kepco, to Toshiba that were on a par with those that they have offered on other sites in the country, this deal could have been salvaged.

I would like to hear from the Secretary of State this afternoon. Surely this is not the end. Will he commit to working with the people of Cumbria, their MPs, their council, and their local enterprise partnership to salvage the prospect of new civil nuclear in Cumbria? Does he recognise the hole that losing Moorside will create for the UK’s ability to generate low-carbon energy, and does he see the potentially irreversible decline in absolutely essential nuclear skills in Cumbria for the nation if civil nuclear is not allowed to go ahead on the site?

[Greg Clark]

I am grateful to the hon. Gentleman for his question. I know that the nuclear industry is very important to his constituents, as it is to those of my hon. Friend the Member for Copeland (Trudy Harrison).

The hon. Gentleman knows that no one is more committed than I am to the future of nuclear power in this country. It is this Government who have revived nuclear power following more than 25 years in which no new nuclear power station was inaugurated. He knows that the approach that we have taken to new nuclear power stations is that they should be developer-led. That has always been the case since the right hon. Member for Kingston and Surbiton (Sir Edward Davey) was Secretary of State and established this approach and this policy.

The hon. Gentleman knows very well, because he talks to the executives himself, that the problems that Toshiba has encountered during the past 18 months, since the entry into chapter 11 bankruptcy proceedings of its Westinghouse subsidiary, have made for a fundamental review of its strategy. It has decided, for commercial reasons, which the board of Toshiba told me, in person, on Wednesday, that it wants to concentrate on its activities away from international nuclear. The announcement is a consequence of that. Obviously, it is not possible to enter into negotiations with a counter-party that is exiting the business and does not have the financial opportunity to be able to take on this project. That has been clear, as he knows, for some time.

I was certainly very clear in my response to the hon. Gentleman that I regard the site, when it returns to the NDA, as available for further projects, and I will work very closely with those in the industry, including his predecessor. Of course I will meet the hon. Gentleman, my hon. Friend the Member for Copeland, and other people who take the same interest that I do in the future of nuclear in this country, and particularly in west Cumbria.