Business of the House

Debate between Andrea Leadsom and Holly Lynch

Thursday 25th January 2018 Commons Chamber

[Andrea Leadsom]

The hon. Gentleman will be pleased to note that the productivity rise was greater in the last quarter than it has been since the financial crisis. There is a long way to go. Productivity has lagged since that financial crisis, and it is essential that the Government focus—we are doing so—on everything that we can do to invest in greater productivity. We have the national productivity plan, which is worth £31 billion, to ensure that we improve productivity right across the UK.

[Holly Lynch (Halifax) (Lab)]

I am sure that everyone agrees that police dogs are an incredibly useful element of effective policing, especially in relation to firearms and drugs operations, yet following years of cuts to policing budgets across England and Wales, forces have reduced the number of police dogs by between 50% and 80% in the past six years. Will the Leader of the House outline her support for the “Don’t Ditch the Dogs” campaign, and may we have time in the Chamber in which parliamentarians can outline their support for the amazing work of police dogs and their handlers?

[Andrea Leadsom]

Police dogs do a fantastic job—there is no doubt about that—and I share the hon. Lady’s enthusiasm for them. She may well wish to seek a debate to enable colleagues to give their experiences and to discuss what more can be done to improve the resources available to the police, such as police dogs, that help us to tackle crime.

Energy BILL [ Lords ] (Sixth sitting)

Debate between Andrea Leadsom and Holly Lynch

Thursday 4th February 2016 Public Bill Committees

[Holly Lynch (Halifax) (Lab)]

May I say what a pleasure it has been to serve under your chairmanship over the last couple of weeks, Mr Davies?

As the Opposition Whip in this Committee, I would not normally speak at any length, but I hope Members will forgive me for making an exception to speak in support of new clause 10. I do so as an MP from Yorkshire, where the decision to cancel the £1 billion CCS competition fund has been a real blow for the region, as I have no doubt it was for Peterhead and for other hopeful projects and their surrounding areas up and down the country.

Earlier in the week, we heard from the Minister, the hon. Member for Daventry and others about the tenacity with which this Government are committed to delivering an end to any public subsidy for onshore wind. I heard the Minister’s intervention earlier and perhaps that is the very crux of the issue. I hope that Members will not mind my quoting from a sitting earlier in the week, when that commitment to end subsidies for onshore wind was referred to as an absolute “manifesto commitment”—no ifs, no buts—and I think people might be forgiven for assuming that the commitment to end the £1 billion fund may have come with the same terms.

[Andrea Leadsom]

Absolutely not.

[Holly Lynch]

I think people would be forgiven for making that assumption, having read the manifesto.

The White Rose project at Drax was set to be the first CCS project of its kind in Europe and it had been awarded Government funding to carry out a feasibility study, as has been mentioned. The project, once it was up and running, was expected to generate enough low-carbon electricity to power 630,000 households, with hopes that up to 2,000 jobs would be created, bringing much needed investment, jobs and growth to Yorkshire. If Yorkshire had been the first region in Europe to get CCS up and running on this scale, the economic benefits of exporting the expertise, the skills and the transferrable technologies all over the world could have been such a boost for the local and wider economies. With the cancellation of the £l billion fund, we also sent €300 million euros from the European Commission back to the Commission. That sum had been awarded to the White Rose project in match funding, because the project was the Commission’s preferred option in its NER 300 competition.

Getting to this stage has involved years of hard work and missed opportunities. The Energy and Climate Change Committee published a report in 2014 urging the Government to reach a final investment decision on the two projects that had made it through to the final stages of the competition by early 2015, which was in line with the Government’s original timetable. The report stated that it was critical that the Government did not waste any more time on unnecessarily delaying the start of the first CCS projects, stressing that we had already lost a decade. It has taken years to bring viable schemes such as the White Rose project into alignment with a Government commitment to invest in the technology and into alignment with the European Commission’s NER 300 timeframe, in order to secure match funding. With the cancelling of the scheme, we are now much further away from bringing those projects online than we were in 2014.

Against that backdrop, I urge the Government to consider the future for CCS, to commit to a strategy and to recognise that new clause 10, and new clause 4 for that matter, present the opportunity to do just that. I think we all agreed earlier in the week about the importance of investor confidence and we have talked about it again today. My hon. Friend the Member for Norwich South made a great analogy about picking the furthest point on the horizon and getting our troops there as fast as we can. In CCS, it is fair to say that investor confidence could not now be any lower. The chief executive of the Carbon Capture and Storage Association, Dr Luke Warren, said the announcement to axe the fund was “devastating”. He went further, saying:

“Moving the goalposts just at the time when a four-year competition is about to conclude is an appalling way to do business.”

I confess that I am still confused about what the Government strategy now is. Ministers have spoken about a future for CCS, but the Prime Minister’s suggestion that there are doubts hanging over both the technology and the economics has really left potential investors with nowhere to go. That is why I ask the Committee to consider supporting new clause 10, to give Members, but most importantly the sector, a much clearer picture about what the future for CCS now means.

[Andrea Leadsom]

It is a pleasure to serve under your chairmanship today, Mr Davies.

New clauses 4 and 10 would place a duty on the Secretary of State to produce and implement a CCS strategy by June 2017, and to report to Parliament on progress every three years. I very much welcome the debate on CCS today. I recognise that the spending review announcement last year confirming that the £1 billion of ring-fenced capital funding to support the CCS competition was no longer available has led to questions regarding the Government’s CCS policy, but I can assure the Committee that the Government’s view remains that CCS has a potentially important role in the long-term decarbonisation of the UK’s power and industrial sectors.

The hon. Member for Greenwich and Woolwich raised the issue of bidders’ costs; I can tell him that the competition rules were clear that the Department would not meet bidders’ costs and that the competition was subject to value for money considerations.