(3 years, 1 month ago)
Lords ChamberWe are investigating all possible legal avenues to bring these people to justice. National Highways and Transport for London have both rapidly put in place injunctions to deter these sort of dangerous actions. Only yesterday, the High Court granted National Highways an interim injunction banning activities which obstruct traffic and access on any part of the strategic road network—that is, all motorways and major A roads. Last Friday, National Highways applied for committal for contempt of court in respect of nine individuals suspected of breaching injunctions. If found to be in breach, these individuals could face an unlimited fine and/or imprisonment.
My Lords, does my noble friend agree that what appears to have been a cunning plan by the secret society of evil net-zero sceptics to get Insulate Britain to undermine the appeal of the Green movement was brilliantly executed? Was it not a particular triumph to choose upper middle-class twits to confront ordinary people trying to get to work or school? Was it not a stroke of genius to make sure that some of them had not insulated their own homes? Does she agree that it is surprising that the environmental movement has not yet seen through this stunt?
(5 years, 9 months ago)
Lords ChamberTo ask Her Majesty’s Government whether HS2 Ltd will fulfil the requirements of public procurement regulations by obtaining its electricity supply through transparent and competitive tendering; and if so, how.
I beg leave to ask the Question in my name on the Order Paper, and refer to my interests in the register.
My Lords, HS2 will identify a suitable partner to supply electricity for the operation of the railway through a transparent and competitive process, in compliance with the Utilities Contracts Regulations 2016. HS2 Ltd is in the process of undertaking a strategic assessment of electricity sourcing options, and will produce a fully costed business case, which will then form the basis of a recommendation to the Department for Transport.
I thank my noble friend for that encouraging reply. HS2 will have a gargantuan appetite for electricity—about 3 terawatt hours per year, or 1% of the entire UK electricity demand—costing several hundred million pounds per year. She will be aware of a recent report from KPMG to HS2 Ltd, which recommended that HS2 do a sweetheart deal with the wind industry to build new wind farms specifically to supply the railway, though not necessarily along the line, with a hidden subsidy, the cost of which would be passed on to the traveller and/or the taxpayer. Can she confirm that this would break the rules on public procurement?
I thank my noble friend for his question and I share his desire to ensure good value for money for taxpayers and indeed passengers. The advice given in the KPMG report is that while the wholesale price for electricity is forecast to increase over the long term, the price of renewable energy is coming down, so it recommended signing a long-term contract for the supply of renewable electricity. I should reiterate that the report represents only advice to HS2. No decision has been made and, before any contract is signed, HS2 will need to present the proposed energy strategy to the DfT. Whatever strategy is agreed, HS2 Ltd will be required to demonstrate that it has complied with the Utilities Contracts Regulations 2016.
(7 years, 8 months ago)
Lords ChamberMy Lords, first, the events of last week were a stark reminder to us all of the nature of the challenge we face. Indeed, there was a Question on this very subject scheduled for that day, which we could not take. On the specifics of the noble Baroness’s question, how our European partners act is very much a matter for their respective Governments. We have acted in accordance with what we believe is the best interests of the United Kingdom, and Her Majesty’s Government will continue to act in that manner.
Can my noble friend explain why a laptop in the cabin is dangerous if a laptop in the hold is not?
My noble friend asks a specific question on the new measures which have been implemented. I am sure that he will respect the fact that I cannot go into the specific detail behind the reasons why we have taken these measures. However, we keep all aviation security measures under constant review and have acted in accordance with that review. On the matter of laptops now being pressed into the hold, the CAA is also issuing specific advice to carriers dealing with that.
(7 years, 9 months ago)
Lords ChamberI believe that Manchester will stay where it is. I look to my noble friend Lady Williams on my right, who knows Manchester very well. This is about being quicker and about improving capacity and connectivity. The building of HS2, along with the plans that are under way with northern powerhouse rail, will address both issues, which is extremely important for people not just in the south and the Midlands, but to the north and indeed for Scotland as well.
My Lords, further to the Question asked by the noble Lord, Lord Shipley, in what year will HS2 or its extension reach Newcastle, and how old will my noble friend be?
Crystal ball gazing is not my expertise, but it is important that this is a phased project. It is right to look at building the first phase of this project. I am being advised by certain noble friends that I should say “shortly”. Perhaps I will not go to that extent, but I have already indicated that northern powerhouse rail, together with DfT, Network Rail and HS2 are already undertaking work, and we will produce a report towards the end of 2017 that will underline the importance of this connectivity.
(7 years, 10 months ago)
Lords ChamberI regret to say that I am not familiar with the order that the noble Lord has mentioned, nor with its related nature. As I often say to him, in the interests of education, I will look up that order when I return to the department.
My Lords, does my noble friend agree that, in trying to achieve autonomous vehicles, we should not only look at roads; they have uses not only on rail lines but in agricultural and marine environments, where there will be huge opportunities for connected and autonomous vehicles, although possibly short of full autonomy?
My noble friend is quite right to suggest that. He mentioned roads and I agree. As a Government, we are already trialling connected and autonomous vehicles. To digress for a moment, it is quite a strange sensation when you sit in an autonomous car for the first time, knowing that you are no longer directly in control. My noble friend talks about other uses. In my own area of transport—aviation—the autopilot has been used extensively. There is a need to see how we can embrace technology in an innovative way across all transport modes, while recognising that in certain circumstances controlled interaction is also important.
(9 years, 10 months ago)
Lords ChamberMy Lords, I speak in support of the spirit of Amendment 21. As a former Energy Minister, an investor in the hydrocarbon sector and a former non-executive director in hydrocarbon companies, I have given a great deal of thought to whether I support the development of fracking in the UK.
Quite apart from the environmental risks in such drilling—and, although the degree of risk can be debated, there is always a risk when drilling for hydrocarbons, particularly given that we live on such a densely populated island—I think we should look at the broader picture. What has been ignored so far is the picture of global demand and supply that we are witnessing. The Chancellor has said that we should try to emulate the success of the United States with shale oil and gas. However, what we are witnessing globally today is a supply glut. The success of shale in the United States has partly contributed to that. Perversely, we are seeing that this glut is pushing down the price of oil and gas across the world—particularly oil—and the impact of that on a number of smaller companies is that they are going to the wall. We are already seeing a decline in shale oil production in the United States and we should not forget that with shale oil we have seen quite a dramatic decline over a couple of years. So there is a dramatic fall-off in investment in the United States in shale, a fall in employment, a number of smaller companies going to the wall and all the majors have now announced that they are cutting back investment in major oil and gas projects. Therefore my fear is that we are entering a period of greater volatility as regards energy prices.
To a certain extent the success of shale in the United States has been quite limited, both as regards scale and duration, and we are now entering a period of quite dangerous volatility with regard to investment. Therefore, although consumers currently benefit from lower energy prices for oil and gas, that may well be short-lived. In addition, with the majors pulling back on major investment and with a number of smaller shale companies going to the wall, once the existing number of companies have cut back on production in the United States, in two to three years’ time we may well see the price of a barrel of oil go back up to $200.
Therefore, if we look at the United States as a model for a number of the companies that are involved in shale—and a lot of the communities that will depend on that local investment—it appears that it is not seen as a wonderful model, so maybe it is not a model we should adopt for the UK. Shale takes a huge amount of investment to develop, and it has its environmental risks. In the UK it will take many years to go through the planning process, yet the success of shale can be relatively short-lived. In the mean time, we will have these huge peaks and troughs in the price of hydrocarbons.
Will the noble Lord agree that if the oil or gas price shoots up, as he says, we should be all the more encouraging towards the shale industry in this country?
No, because that would be a short-term benefit. We should look at the long-term planning. That is the difficult thing with shale at the moment: it is destabilising the market for oil and gas, with the majors cutting back quite dramatically. You can have shale production, but it is short term. If, for example, you invest in a major field, it can take 10 or 20 years to develop—Kashagan in Kazakhstan, for example—it needs billions of dollars of investment, and takes many years to develop, sometimes decades. Companies have to be able to plan ahead, as that gives medium to long-term relative stability to the oil price. If you are talking about shale, you are talking about a two to three-year timescale for the development of a field, which does not provide the sort of stability we are talking about.
Of course, we should also look at increasing investment in renewables as well. Shale is one thing you can look at, but you can also look at investing more in renewables.
My Lords, I welcome this government amendment and thank my noble friend for clarifying some extremely important points. I am particularly pleased that it is now clearer that the clauses apply to hydraulic fracturing, with any ambiguity removed. However, there are some further points that I hope will be addressed in secondary legislation.
We have delayed shale exploration for too long. We have to get going so that we can show the public that there is nothing to fear. Once we start, the public will surely say, “What was all the fuss about?”. It is therefore extremely important that drilling boreholes for groundwater quality monitoring is delinked from the planning process. Permitted development rights under the general permitted development order can be used to install boreholes for monitoring water quality; that is common in the water industry. However, it is different for any development that is subject to environmental impact assessment regulations. Then, any part of the development, including the drilling of boreholes for monitoring water quality, cannot take place until full planning consent is granted. That would apply in the case of any development which includes hydraulic fracturing. It would mean, in practice, that no baseline data could be collected until full planning permission was granted, leading to a minimum of 12 months after planning before hydraulic fracturing would be permitted to take place. That would be a significant and unnecessary delay.
We should therefore allow baseline monitoring during the planning process for shale exploration. That would drastically cut the delay: doing the monitoring, then putting in the planning application, and monitoring while the planning process continues. Even if it is not a positive planning decision for industry, at least some useful data will have been obtained in the mean time during the monitoring process. More baseline data would be very welcome, so delinking from planning is a win-win whether the planning decision is positive or not. Can my noble friend therefore assure me that these concerns are noted in the amendments and will be strongly considered as the secondary legislation is formulated?
The treatment of groundwater protection zones was one of the worst outcomes of the amendments made in the other place. The Environment Agency already effectively prohibits operations in what is known as source protection zone 1, and in the lesser zones 2 and 3 the industry already has to make a convincing case to the Environment Agency. That strikes me as the right balance of regulatory oversight. That could impact on other industries, too. Shale operations take place well over 1,000 metres below any aquifer, whereas a lot more industrial activity from other sectors takes place on the surface, directly on top of the same source protection zones.
Moving away from the current regulatory framework of the Environment Agency regulatory position could have dire consequences for other industries. Furthermore, if a licence has already been purchased, it may be of no use whatever. There is no chance of that company receiving its investment back. Every investment is risky—rightly so—but this will make future investment in shale exploration all the more risky than it ought to be. Changing the rules after the licences have been awarded will not increase future licence revenue.
The government amendments mean that a decision on what is groundwater area is referred to secondary legislation. Can my noble friend assure me that those concerns will be taken into consideration as the secondary legislation is formulated?
My Lords, I declare my interests in energy as listed in the register; they include coal, which is of course threatened by shale.
Unlike the noble Lord, Lord Truscott, I think that the people whom we should be concerned about are not those looking for oil in Kazakhstan or the Saudi oil companies but the people who are struggling to pay their heating bills this winter. That is what this is all about: trying to get the cost of gas down. We need gas and, whatever happens, we will continue to need gas, as the Minister said on a previous amendment. We need gas for heating and will continue to need it—84% of British homes are heated by gas. Where there is fuel poverty, it is nearly always associated with electric, rather than gas, heating. We need gas as a chemical feedstock for the chemical industry; we need it to make fertiliser to feed the world.