(2 years, 1 month ago)
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I beg to move,
That this House has considered delivery of floating offshore wind projects.
It is a pleasure to serve under your chairmanship, Sir Christopher, and I am grateful to have secured time for a debate on the delivery of floating offshore wind power, which is one of the most interesting and exciting energy developments in play. It is good to see colleagues from across the United Kingdom and I look forward to hearing their contributions. I put on record my thanks to RenewableUK, the Crown Estate and many of the developers for reaching out ahead of the debate to provide briefing and insight.
This is a timely moment to discuss the role of floating offshore wind in the UK’s energy mix and to consider what further steps the Government need to take to facilitate the emergence of that new industry. The twin challenges of net zero and energy security mean that the strategic imperative around this home-grown clean energy solution is becoming ever stronger.
Floating offshore wind—or FLOW, to use the shorthand—harnesses the power of wind by using turbines based on floating structures rather than fixed. It offers an opportunity to deploy enormous turbines in larger, deeper, more exposed offshore areas where the overall wind potential is higher and therefore more energy can be generated.
There is a high level of expectation that floating wind is going to become an increasingly important part of our energy mix. The Government have set a target of 5 GW of FLOW to be installed by 2030, and Offshore Renewable Energy Catapult estimates that we could have up to 95 GW of floating wind in UK waters by 2050. At that point, the majority of the wind turbines in UK waters would be floating, not fixed to the seabed as they are today.
The UK is already home to the largest floating wind farm in the world—Kincardine, off the coast of Aberdeen in the North sea—which is using the highest-capacity turbines ever installed on floating platforms. The success of Kincardine should give both industry and Government confidence that the technology works and is scalable, and that it can be replicated elsewhere.
Floating wind will be critical to achieving the Government’s energy security targets, and if we do not choose to industrialise FLOW we will have to generate at least 15 GW of power by 2035 using other means. Indeed, it is difficult to see how the overall expansion of offshore wind envisioned by the Government’s targets would be technically possible without doing floating wind in a very big way. That industrialisation of floating offshore wind will create the pathway for cost reduction, as has been proven with fixed-bottom offshore wind.
Floating wind offers a huge opportunity for the world to harness offshore wind power, not just those limited regions with shallow sandbanks close to shore. Globally, the UK Government have set the most ambitious targets for developing floating offshore wind, but other countries are catching up fast. Spain has announced a target of 1 GW to 3 GW of FLOW by 2030. Similarly, France, Norway, Japan, Ireland and parts of the United States have set clear and ambitious targets. The world will therefore develop floating wind for sure. The UK is well positioned as the leading marketplace for investors, but if those targets are not followed through, I fear that the UK is likely to be left behind as other countries move to seize on the new technology.
Along with parts of the North sea, the Celtic sea—located off the coasts of south-west Wales, Devon, Cornwall and southern Ireland—is one of those areas with the greatest potential to deploy FLOW. It is attracting enormous interest from developers and investors, and I am delighted that my hon. Friend the Member for North Devon (Selaine Saxby), chair of the all-party parliamentary group for the Celtic sea, is here today. I look forward to hearing her remarks.
Floating offshore wind in the Celtic sea represents a multibillion pound economic development and investment opportunity for Wales, the south-west of England and the whole UK. The area has excellent wind resource infrastructure and local industry for potential supply chain development. The Crown Estate’s Celtic sea leasing programme aims to deliver 4 GW of new floating offshore wind by 2035. It could provide power for almost 4 million homes, and the project will kick start an innovative new industry in the area, with the Celtic sea assessed to have the economic potential to accommodate up to an additional 20 GW by 2045. Just last week, the Crown Estate announced that it is seeking to accelerate the leasing process for that first stage of development, recognising the importance of bringing floating wind onstream as soon as possible, and will be looking to launch the tender process in the middle of next year.
For us in west Wales—I represent a Welsh constituency —floating offshore wind represents a hugely exciting and valuable prospect. It is another stage in the evolution of Milford Haven port in my constituency. Shared with my right hon. Friend the Member for Carmarthen West and South Pembrokeshire (Simon Hart), Milford Haven is one of the UK’s most important energy ports, beginning in the late 18th century when whale oil was imported for use in streetlamps. The late 20th century brought oil refining and trade in petroleum products, and the early 2000s brought liquefied natural gas imports. Strategically, Milford Haven plays an incredibly important role in our energy mix, and I believe that the coming decades at Milford Haven will be about floating offshore wind and hydrogen.
Early analysis by Cardiff Business School suggests that floating offshore wind, hydrogen and sustainable fuels investment could add an additional 3,000 Welsh jobs to the 5,000 already supported by the Milford Haven waterway. Floating offshore wind will facilitate the transition to a vital new green energy era, supporting the continued evolution of that major hub for another 50 years. On the Milford Haven waterway, we already have a number of very active projects: we have Blue Gem Wind, a joint venture between Simply Blue and TotalEnergies, which is looking to establish the first demonstrator projects in the Celtic sea. We have DP Energy, a joint venture involving EDF, and RWE—which has a major gas-fired power station on the Milford Haven waterway—is looking at floating offshore wind opportunities, in conjunction with exploring the possibilities of producing hydrogen and moving its entire operation in Pembrokeshire to a lower carbon future.
Does my right hon. Friend agree that the much-rumoured and long-awaited freeport status for places such as Milford Haven—even in conjunction with Neath Port Talbot or similar—would accelerate all of the exciting initiatives he has referred to?
I will mention freeport opportunities a bit later, but my right hon. Friend is exactly right. So often when people talk about freeports, it is in the context of an answer looking for a question; what we have in Milford Haven—together with Port Talbot, I might say—is a solution. It is something that will help facilitate a new industry, and if we can use the freeport process to help support that—I am looking towards the Minister—then that would be excellent indeed.
(2 years, 4 months ago)
Commons ChamberAt the end of the Great Western line in my constituency is Milford Haven, the UK’s most important energy port and the largest town in my constituency. Its railway station is a disgrace. Does the Secretary of State agree that a project to upgrade Milford Haven train station would be an ideal round 2 levelling-up fund bid, and will he look favourably on any such bid from Pembrokeshire County Council?
My right hon. Friend and neighbour has raised the question of Milford Haven station a few times, and I am no stranger to it either. Although I am not allowed to express a preference for individual levelling-up bids, that is precisely the type of infrastructure improvement bid that the levelling-up fund was created for, so if he and the local authority can put together some compelling evidence, I am sure that those who are in a position to judge it will look on it favourably.
(2 years, 9 months ago)
Commons ChamberDevolution of the Crown Estate is a total red herring, and it so cynical of nationalists to turn every issue into an anti-United Kingdom process row. Does my right hon. Friend agree that floating offshore wind represents a hugely important opportunity for Wales, particularly for the port of Milford Haven in my constituency—Milford Haven is shared by his constituency—and will he assure the House that he and his colleagues at the Department for Business, Energy and Industrial Strategy are doing everything to ensure that Wales and Pembrokeshire benefit from the opportunities of renewable marine energy?
My right hon. Friend is right; I met the Crown Estate last week and had exactly that conversation. I have to say that it was an exciting, interesting, innovative conversation about all the possibilities that he mentions, which exist across the whole UK but particularly in the Celtic sea. I repeat what I said earlier: the emphasis and impetus come from investors, members of the public and port authorities, not from nationalists who just wish to look at everything through the prism of their own power base.
(2 years, 10 months ago)
General CommitteesI will give way to my right hon. Friend the Member for Preseli Pembrokeshire.
May I draw my right hon. Friend back to the point about the furlough scheme, in the context of the strength of the Union, because I think the point about that scheme is even better than he alluded to? The truth is that the scheme was a much bigger success than anybody had anticipated. Far from there being a crisis of unemployment at the end of 2021—as so many Opposition Members had predicted—when the furlough scheme was unwound, we actually had a boom in job creation and no employment shortage up and down the country, so full credit to the Treasury and the decision making of the Chancellor and his colleagues.
My right hon. Friend is right. The decision-making point that he makes is particularly apposite, because these decisions were being made at breakneck speed in unbelievably unpredictable conditions and under significant pressure, and they turned out to be the right calls. They were made for the right reason, at the right time. It is no coincidence that the unemployment figures now show that there are over 400,000 more people in work than there were before the pandemic.
(2 years, 10 months ago)
Commons ChamberMy hon. Friend makes a very good point. He will have heard me refer to the M4 on many occasions as a vital asset that joins the European mainland to the Republic of Ireland. It is not just a Welsh road; it is of economic significance to the UK and more widely, and it plays a strategic role. That, combined with the slightly mysterious position that the Welsh Government have adopted on a moratorium on road building, leads me to the conclusion that he has reached, which is that there are better ways of maintaining and improving the UK-wide network, including roads that are exclusively in Wales.
The UK Government have worked closely with the Welsh Government throughout the pandemic. We continue to do so in tackling the omicron variant, and Ministers in both Governments are in regular discussions.
With Labour Welsh Government Ministers now introducing fines to try to stop people going to their workplaces, with the crazy decision to prohibit parkruns at this time and with the Welsh hospitality sector effectively under lockdown through new year, does my right hon. Friend share my deep concern that, yet again, Wales faces the most burdensome and most intrusive restrictions in any part of the United Kingdom? Does he agree that these measures are driven more by fear and pessimism than by good science?
My right hon. Friend and constituency neighbour makes a good point. I might have found myself disagreeing with him if it could be demonstrated that the results of covid controls in Wales are in some way better than the results in the rest of the UK, but they are not. It is absurd that the popular parkrun in his own town of Haverfordwest cannot take place and that people cannot watch rugby from the touchline, but they can cram into a club where they ought not to be. That is nonsense. It is throttling the recovery and it is throttling economic activity.
(3 years, 2 months ago)
Commons ChamberWales’s greenhouse gas emissions have fallen by close to 31% since 1990. To bring them down to zero, we will be scaling up low-carbon power generation, kickstarting the hydrogen economy and transitioning to zero emission vehicles.
I am very grateful for my hon. Friend’s question, because it illustrates a situation very similar to his in Wales. I hope he is as pleased as we are with the £275 million commitment to the electric vehicle homecharge scheme, the workplace charging scheme, the on-street residential chargepoint scheme and a number of other measures, all of which, of course, are UK-wide initiatives.
The drive to net zero presents huge challenges to industry all across south Wales, especially for us in Pembrokeshire where the oil and gas plants support thousands of high quality jobs. What further steps can the UK Government take to help the energy sector to adapt, taking advantage of new opportunities in hydrogen but also plans for floating offshore wind? The truth is that we are going to need significant extra help in Pembrokeshire if we are going to make that transition.
My right hon. Friend raises a very important point. I hope he has taken note of the £20 million commitment to the south Wales industrial cluster. That is driving carbon capture initiatives and similar initiatives. He and I frequently speak to big employers in our area, such as Valero on the Milford Haven Waterway, which are an absolutely critical part of our net zero ambitions in Wales. Of course, the floating offshore wind opportunities in the Celtic sea are well known to both of us and I hope that developers will be able to bid for contracts for difference later this year.
(3 years, 6 months ago)
Commons ChamberThere were many questions included in that, but I am delighted to have played a part in getting the global centre of rail excellence situated in the hon. Lady’s constituency. That was a Government announcement by the Chancellor in the Budget, and it shows that collaboration can work when we try to achieve these aims. As far as covid reaction is concerned, that has been a team effort and a cross-UK effort. The vaccination programme is probably the clearest indication of why the Union matters and how we have been able to work collaboratively with our colleagues in the Welsh Government to deliver something that genuinely benefits the entire nation.
My right hon. Friend the Prime Minister spoke with the First Minister shortly after the election result. I have extended an invitation to meet the new Minister for the Economy. We have had calls with the First Minister and the Chancellor of the Duchy of Lancaster last week, and another one is due this evening.
The recent elections demonstrated that the vast majority of voters in Wales have no time for independence. They have little time for ripping up the devolution settlement either. What the elections showed is that they want their politicians and Ministers at either end of the M4 to work together to make good things happen for Wales, and to make Wales a stronger and more prosperous part of the UK. Given that the success of the vaccination programme shows that this can be done, what needs to happen now to unblock other important policies such as freeports, which are stuck between the UK and Welsh Governments?
My right hon. Friend is spot on; we have had considerable, really enthusiastic interest in the freeport programme from across the whole of Wales—it will bring 15,000 jobs and it is a manifesto commitment—and the only obstacle standing between us and delivering it is currently the Welsh Government. I am determined to work collaboratively, as we have said before, to get this over the line, and any pressure that anybody in this House can bring to bear to help us achieve that will be very welcome.
(3 years, 9 months ago)
Commons ChamberI am delighted that my right hon. Friend has raised this point. The public sector apprenticeship target is applicable only to bodies in England, but he raises a critical point about devolution. We are concerned that, for example, Welsh police forces are paying into the apprenticeship levy scheme but not getting anything out of it because the Welsh Government do not support police apprenticeships. I suggest that it would be very interesting for his Committee to look at why Welsh forces are paying in but getting nothing out the other end by way of apprenticeships.
We have agreed a deal that provides Welsh business with exceptional access to the EU market. It is the first time ever that the EU has agreed a zero-tariff, zero-quota deal.
Getting the Brexit deal across the line before the end of the year was important, and huge credit is due to the Government for securing it, but we have a serious situation emerging at Welsh ports, with freight levels way down on where they should be. Will my right hon. Friend work urgently with ministerial colleagues, HMRC and trade bodies to find simpler solutions to the problem of checks and paperwork, which risks making the UK land bridge more costly and less attractive for trade between Ireland and the continent?
As my right hon. Friend knows, I am in touch with Pembroke, Fishguard and Holyhead about this issue, and we are trying to make a distinction between what we can assign to covid changes in business and the other, more permanent factors that he refers to. There are some complications to do with port infrastructure, which is the responsibility of the Welsh Government. We have meetings tomorrow to try to push the Welsh Government to get that process under way more quickly. We have discussions with road hauliers about the land bridge. I assure him that we want this business to return to as near as possible as soon as possible, and I am happy to work with him and others to achieve that goal.
SPEAKER'S STATEMENT
(3 years, 11 months ago)
Commons ChamberThe fact that the Government have listened carefully to the arguments should not be deemed some kind of act of evil or a U-turn. It shows that we are conscious of the complexities of this legislation and have listened carefully to the arguments. Where the right hon. Lady makes a mistake is in thinking that the contents of the UK Internal Market Bill are somehow a threat to devolution. Actually, they are a means by which we can encourage inward investment into Wales and encourage jobs and livelihoods. We have had this exchange across the House before, and it strikes me as worrying that she always refers to power—it is all about power to Cardiff, rather than jobs and livelihoods in Wales. For a party that argues it is the party of Wales, it seems to be remarkably out of touch with the people of Wales.
One of the findings of our Select Committee report last week on this issue was that the Government have really stepped up their communication with Welsh businesses ahead of the end of the transition period, which is very welcome. The new money that the Government have announced for Welsh ports, including Fishguard in my own constituency, is very welcome too, but will my right hon. Friend say a bit more about what he is doing with the Welsh Government to ensure that the inland checking facilities that will be required ahead of the full implementation of new border checks will be in place, given the very challenging timetables that he is working to?
My right hon. Friend raises an interesting point. Of course, the devolution settlement poses its own complexities. With Holyhead, we have a Welsh Government-UK Government-HMRC relationship that needs to be managed as we progress towards the end of the transition period, but Fishguard and Pembroke on the coast of west Wales, in the areas we represent, are entirely in the gift of the Welsh Government. However, we have tried to ensure that we work almost on a daily basis with the Welsh Government to ensure that those delivery timetables and objectives are in place.
(4 years, 1 month ago)
Commons ChamberMy hon. Friend makes a very good point. The Barnettised numbers, which total £4.4 billion so far, do give the Welsh Government a degree of flexibility in addressing issues if the evidence supports doing it in a slightly different way. There are one or two examples of where they have introduced their own interventions, courtesy of money provided by UK taxpayers, but the overriding point is that there does need to be a degree of collaboration and co-operation that straddles all the countries of the UK, because this is an international and a national challenge.
Like me, the Secretary of State will have welcomed the vision set out by the Prime Minister last week for expanding renewable energy and, importantly, the commitment to boosting floating offshore wind power, which represents such a big opportunity for us in Wales. May I ask him if he would use his good offices to ensure that all the relevant players in this—the private sector developers that have projects ready to go, the Department for Business, Energy and Industrial Strategy and the Crown Estate, which owns the seabed—are all on the same page, working towards a shared goal so that we get decisions made in a timely way?
Absolutely. I agree with my right hon. Friend and neighbour’s assessment of the situation. We were all encouraged by my hon. Friend the Under-Secretary’s comments just now in that respect. I can, I hope, encourage my right hon. Friend by saying that I am meeting the Crown Estate the day after tomorrow, I think, to discuss the potential delays, which at the moment look like being its problem, and we need to unblock that.
(4 years, 4 months ago)
Commons ChamberOf course I can offer that commitment, but the commitment is to urge the Welsh Government to make those important decisions for the whole of Wales. Having had the pleasure of meeting some of my hon. Friend’s industries the other day, I know that, in her own area, critical events such as the Royal Welsh Show are hugely culturally important, and it is absolutely right that the Welsh Government should look at the whole of Wales, and not be tempted into just supporting a few well-known industries around their favoured patch.
(4 years, 5 months ago)
Commons ChamberMy opposite number makes a very good point. Right from the start, as I think he will agree, the Chancellor has said that we will always look at every possible anomaly in these support systems, because he and all of us, I suspect, in our in own constituency examples recognise that even though the measures are widespread and generous and try to account for every individual circumstance, they do not always do so. Where people slip through the net and where there are anomalies, yes, of course, we will work to see if we can rectify those.
The furloughing scheme has been a lifeline for businesses in every corner of the United Kingdom and demonstrates the strength and the value of our Union, but with the scheme becoming co-financing in August, could I ask my right hon. Friend urgently to discuss with the Chancellor the need for ongoing financial support, particularly for tourism businesses in Wales? Frankly, they will not have the money to contribute a share of staff costs, and they see little prospect of the Welsh Government allowing any kind of late tourism season this year.
My right hon. Friend rightly points out what is becoming known as the risk of the 12-month winter, and he might be pleased to hear that I have already had such conversations with Treasury Ministers including the Chancellor himself. We are looking, as we always do, at ways of making sure that for industries that find themselves in a particularly difficult position—tourism and leisure is one such example—there are ways in which we can be as flexible as possible, but obviously within the overall financial ambitions and constraints that we all understand.
(4 years, 7 months ago)
Commons ChamberOf course I will work with the hon. Gentleman, who has been constructive throughout this crisis. The Department of Health and Social Care and others have had a mountain to climb in relation to this and the many, very kind offers they have had, but if there are administrative gaps that we need to fill I will of course take up individual concerns where relevant.
In the absence of a vaccine or cure, large-scale testing and contact tracing will be essential tools in tackling coronavirus. In recent days, we have seen a Welsh Health Minister rip up his own testing targets, key people in my local health authority telling me they were not cited on the Deloitte plans for rolling out regional testing centres and there is no real evidence of contact tracers being recruited. Can my right hon. Friend tell me therefore who is actually running the test strategy in Wales—the UK Government, the Welsh Government or Deloitte? Furthermore, what assurances can he give that we have a clear plan based on the science and that that remains at the heart of everything we are doing in Wales?
That was three questions rolled into one. Being driven and guided by the science is absolutely the ongoing priority of the UK and Welsh Governments. As my right hon. Friend will know, being a former Secretary of State for Wales, the question of responsibility for the pilot and other testing schemes is a matter for the devolution settlement. If there is a lack of clarity there—the test centre he mentioned is rumoured to be situated in my own constituency—I will take it up with the First Minister in Cardiff.
(4 years, 8 months ago)
Commons ChamberAs the hon. Gentleman knows, I will always congratulate any Government of any colour if they do the right thing by jobs and growth.
On renewables, which I have touched on, Wales’s electricity is already 50% powered by clean energy, and I am committed, as I know colleagues are, to seeing that figure rise. This is of course the Prime Minister’s year of climate action, building up to COP26, and Wales has a role to play in that, just as it does in a low-carbon economy.
The Secretary of State is making an important point about Wales’s potential contribution towards meeting renewable energy targets. Does he agree that one of the big constraints we face in Wales is grid capacity? I know that he has not been long in the job, but has he had a chance to have any discussions with Western Power or National Grid, for example, about how we can enhance grid capacity so that more renewables projects can be taken forward?
The answer is a partial yes. As my right hon. Friend knows, businesses in the Carmarthenshire element of my constituency in particular are constrained by grid capacity. In my capacity as an MP, my answer is yes; in my capacity as Secretary of State, my answer is that it is on the to-do list. It is an urgent issue that colleagues from Plaid Cymru raised with me towards the back end of last year.
(4 years, 9 months ago)
Commons ChamberI think all of us, on both sides of the House, recognise that the system does not always work as well as it should. We all have casework that would indicate that. Our ongoing commitment—indeed, I was doing this back in 2011—is to make sure that, where people do struggle with the system or fall through the gaps, we act quickly, efficiently and humanely. Any cases that the hon. Lady or other Members have where that is not happening, please raise them with us and we will take them up with the Department for Work and Pensions.
The unemployment rate in Wales is at a record low. There are 144,000 more people in work in Wales than in 2010 and 90,000 fewer workless households. The Government are committed to driving further economic growth and levelling up across the UK, including west Wales.
As we prepare to celebrate St David’s Day, now is a good moment to celebrate the enormous and excellent progress that has been made in reducing unemployment in Wales. Does my right hon. Friend agree that what is really encouraging is the fact that the long-term lag between Welsh employment levels and the UK average has now closed, with more people in Wales going out to work than ever before?
I am grateful to my right hon. Friend and constituency neighbour for raising this issue. He will be as pleased as I am that the figures in his own constituency, when compared with 2010, are as good as they are. It is absolutely right that the Government’s job, in collaboration with the Welsh Government if that is necessary, is to ensure we create the circumstances where that trend continues. He has my absolute assurance that that will be the case.
(4 years, 10 months ago)
Commons ChamberI thank my right hon. Friend for the advice that he has so generously given me over the years. It should be a source of encouragement that the early conversations I have had with the relevant Ministers, including the First Minister in Cardiff, suggest that they are as attuned as we are, or are certainly getting that way, to the need to ensure that the shared prosperity fund money that will be benefiting Wales is targeted at the areas where it is most needed and recognise the arguments being made across all parts of Wales. There is a public perception that this is always just about Cardiff, but this will be about more than just Cardiff, and it is my job and the job of the Welsh Government to ensure that that is the case.
I thank my right hon. Friend and west Walian neighbour for his question. The answer is yes. One of the reasons we are in this position—one of the reasons the Brexit vote went the way it did in June 2016 and the general election went the way it did in December 2019—is exactly the point he makes: people were beginning to lose faith. They knew that there were substantial sums of money, but somehow it never quite reached the places it should. The new arrangement—the reset to which I referred—will address exactly that point.