Oral Answers to Questions

Alistair Carmichael Excerpts

Tuesday 24th March 2020 Commons Chamber

[Jesse Norman]

I thank the hon. Gentleman for his question. He will be aware that those businesses will fall under the VAT announcements that have already been made for the next quarter and that they are also already the beneficiaries of grants of £10,000 for the smallest businesses and of £25,000 for larger ones in the hospitality, leisure and retail sectors.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

12. What discussions he has had with Cabinet colleagues on fiscal support for the development of marine renewables.

[The Economic Secretary to the Treasury (John Glen)]

The Government take seriously their climate change responsibilities, including the target of net zero greenhouse gas emissions by 2050. That means enabling a diverse range of low-carbon technologies, and we see the use of marine renewables in the future energy mix, though developers must demonstrate how those can compete with the low prices achieved by wind and solar technologies.

[Mr Carmichael]

In order to compete with those technologies, these renewables have to get from the research and development stage to commercial deployment. The industry knows that and has come up with a mechanism known as the innovation power purchase agreement. Is there any reason why the Government are not engaging with that? I have to tell the Minister that these developers are not going to hang around in this country forever. If they cannot make that step here, they will go elsewhere and do it.

[John Glen]

I am very aware of the 1,700 people who work in this area in the right hon. Gentleman’s constituency and across Wales and Scotland. I am also aware that he wrote to the previous Exchequer Secretary, who moved post before he could get a reply. At the moment, renewables are five times more expensive than wind and solar, but the Government will engage in a dialogue with the industry as we look to resolve this and move forward constructively.