Oral Answers to Questions

Andrew Bowie Excerpts

Tuesday 17th July 2018 Commons Chamber

[Claire Perry]

I want to reassure the hon. Gentleman; he is absolutely right. I have had strong representations and visits about this issue in my own constituency. My reluctance to comment on it at the Dispatch Box is because it is legally incredibly complicated, as he knows, and we have just had the freshest possible news about the judgment. We need to take that away, and we will comment on it shortly. I would be very happy to work closely with him on this issue.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

Two weeks ago, I and colleagues from across the House, along with hundreds of others, attended a poignant service of remembrance at the Piper Alpha memorial in Aberdeen to mark 30 years since the worst tragedy in offshore oil and gas production. That tragedy claimed 167 lives, and many of those people were from Aberdeenshire. What are the Government doing, along with the industry, to ensure that UK oil and gas remains the world leader in health and safety practices offshore, so that we can avoid another tragedy such as this?

[Claire Perry]

Thirty years seems like a long time ago, but this is still the freshest possible knowledge for many people in my hon. Friend’s constituency: 167 men, many from a tight area in the north-east of Scotland, perished in the worst offshore disaster we have ever had in the history of our industry. Nothing will ever bring them back, but it was the findings of the Cullen inquiry that drove the changes that have made the UK a world leader in health and safety, and I want to pay tribute to our colleagues in the Health and Safety Executive, because they continue to focus on safety first when it comes to exploiting the resources in the North sea.

UK Oil and Gas Industry

Andrew Bowie Excerpts

Thursday 19th April 2018 Westminster Hall

[Colin Clark]

The hon. Gentleman makes a very constructive intervention. There were 460,000 people working in the oil and gas industry; there are now nearer 300,000. With the amount of redundancies and people laid off in the industry, we might have expected that unemployment in the north-east of Scotland and on the rest of the east coast would have gone up sharply, but these are highly skilled people with highly transferable skills, and many companies that I visit in my constituency are already reporting a skills shortage, which is a concern that I am sure the Minister will mention.

It is very important that our universities and colleges engage with what the industry wants. One of the criticisms I heard recently was that there is not enough training in digitalisation for engineers. One company, Aker Solutions, a Norwegian company with a large base in Aberdeen, is recruiting from Mumbai because those engineers are trained in digitalisation. It is a serious worry for me that training and recruitment are not matching up.

Returning to my point about Mozambique, DIT had companies from Aberdeen and the north-east looking at the opportunities out there. There was also the Israeli ambassador’s lunch the other day—there are now huge finds of gas in the Mediterranean. Skills in the United Kingdom, particularly in the north-east, for example in directional drilling, will play a very big part in that.

I want to focus on the importance of the industry—its longevity, future and strategic importance—as well as Government involvement and the moral questions that surround the sector. The industry has come through some very tough years. As I said, employment in the sector has dropped from 460,000 to 300,000, but most of those people have been employed elsewhere. Employment has held up well, as people have also been employed overseas. Although there has been a downturn in the oil price, the amount of oil being produced pretty well holds up, so the number of people involved may simply move to another part of the world.

By early 2016 the price had declined by 75% in 18 months, so the industry withstood an enormous price shock, as opposed to a demand shock. Other basins stepped up production to maintain market share, most notably the middle east and OPEC. There have since been OPEC cuts and caps, which are helping to provide some sort of cost stability. We are seeing the price move nearer to $70, which starts to make the UK continental shelf much more profitable, or at least more able to cover its costs.

The main point to make today is that this is not a dying industry. Production will decline from the peak of 4.5 million barrels in 1999-2000—it is now down to about 1.5 million barrels—but it is still an incredibly important industry for this country.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

Would my hon. Friend agree that oil and gas is not a transitional industry on the journey through to a decarbonised world? There are many industries and many people who will be using oil and gas as an energy source, and for other reasons, for many years to come.

[Colin Clark]

I thank my hon. Friend for that point. I am a member of the Environmental Audit Committee, which took evidence from Lord Turner, the former chairman of the Committee on Climate Change. I asked him for how long he saw oil and gas being a major source of energy, heat and power, and he said at least into the next century, which is well over 80 years. He went on to say that in terms of an industrial raw material, we just do not know—we could be looking at hundreds of years. It is important that we realise that we probably cannot bring all the hydrocarbons we have to the surface, but that we certainly have to use them better and in a much cleaner way. I know that is a big consideration, particularly in the City of London.

--- Later in debate ---

[Colin Clark]

Quite right. I mean the generic north-east.

The north-east of Scotland has 7% of the population, but 15% of the Scottish economy. I am sure that the hon. Member for Aberdeen North (Kirsty Blackman) will agree that it is the engine room of the Scottish economy. The policies of Her Majesty’s Government and the Scottish Government must encourage companies to thrive, and not be damaging. The cost of living in the north-east of Scotland is higher—house prices were driven up by the boom years, so we have the highest council tax bills—and employers feel penalised by what they see to be very high business rates. The empty business property rates have unfortunately backfired and are encouraging landlords to take buildings down. It is important that we invest in the north-east of Scotland—this is a plea to this place as much as it is to Holyrood—and that the money we raise there is spent there.

Over the lifetime of this Parliament, as much as £500 million of extra rates will be raised in the north-east of Scotland. My plea is that we spend that money in the north-east of Scotland, whether on roads, schools, hospitals or other facilities. It is important that we make the north-east of Scotland not only the right place to invest, but the right place to live. If somebody flies in from Houston or comes up from London or Europe, they have to come to somewhere they really want to live, so it is important that we invest in the area.

[Andrew Bowie]

Does my hon. Friend agree that there is a general feeling in the north-east of Scotland that the region has been undervalued and underfunded by Governments over the past few years?

[Colin Clark]

Yes, but many parts of the country feel they are underinvested in. The engine room of the Scottish economy is taxed that much more than other areas—if we do not invest in it, we risk killing the golden goose. That is the important thing. I am not saying that other areas are not deserving; I am saying that if we do not invest in the north-east of Scotland and the surrounding area, it will not be an attractive place to live, and it will be very difficult to attract people to work there.

Oral Answers to Questions

Andrew Bowie Excerpts

Tuesday 13th March 2018 Commons Chamber

[Greg Clark]

I am delighted that there is such enthusiasm in Bristol. The hon. Lady will be aware that the funding for charging infrastructure is available especially for city-centre authorities that can put it into public car parks.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

5. What progress has been made on a sector deal for the oil and gas industry.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

The Government remain committed to supporting the industry and building on the £2.3 billion package announced in recent Budgets. My right hon. Friend the Minister for Energy and Clean Growth greatly enjoyed her recent visit to Aberdeen—as did I, when I visited—when the industry presented its initial proposals for a deal. My right hon. Friend is meeting the sector deal champion, Trevor Garlick, tomorrow.

[Andrew Bowie]

I thank my hon. Friend for that answer. The oil and gas industry based in the north-east of Scotland has contributed over £330 billion to the economy, supports over 330,000 jobs across the United Kingdom and has a supply chain worth nearly £30 billion. With an estimated 20 million barrels of oil still to get out of the North sea, the industry has huge potential to drive this country’s growth, but of course there is still uncertainty, so I know that the Minister will welcome the response—

[Mr Speaker]

Order. I am sorry to interrupt the hon. Gentleman, but we need a single-sentence question, not a preamble.

[Andrew Bowie]

Will the Minister pledge to work continually with the industry to develop and deliver the sector deal?

[Richard Harrington]

Yes.

Oral Answers to Questions

Andrew Bowie Excerpts

Tuesday 12th December 2017 Commons Chamber

[Greg Clark]

The most important thing is that we have excellent products here, and I am proud to say that we do in the automotive sector. The right hon. Gentleman will be aware that the Government changed the procurement guidelines to allow the importance of local impact to be taken into account. I hope he welcomes that.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

Thanks to the actions of this Government, it is widely recognised that the UK now has the most fiscally attractive regime in the world for investment in oil and gas. Does my right hon. Friend agree that a good sector deal would build on that and would mean that the north-east of Scotland could look forward to a future in which it is not only Europe’s energy capital, but the world’s?

[Greg Clark]

I completely agree with my hon. Friend. I had the privilege of leading a trade delegation to India that included many companies from Aberdeen and the north-east of Scotland that are selling their wares and expertise right around the world. That is one of the big opportunities in the deal that is being negotiated.

Retail Energy

Andrew Bowie Excerpts

Thursday 12th October 2017 Commons Chamber

[Greg Clark]

The hon. Gentleman makes an excellent point, and he will see when he looks at the Bill that there is precisely a requirement that these abusive standard variable tariffs cannot be replaced by something with just a different name.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

I know that the people of West Aberdeenshire and Kincardine—possibly, dare I say it, even more than those of Taunton Deane—will welcome my right hon. Friend’s commitment today to a thriving and competitive energy market, so will he confirm that nationalising the energy companies has, unlike the Labour party’s position, never been a consideration for this Government?

[Greg Clark]

I very happily confirm that. Not only would that be a disastrous signal to business throughout the United Kingdom but, as has been evidenced during the election campaign, it would leave a gaping black hole in the public finances, and we have had no explanation whatever about how that would be paid for.

European Union (Approvals) Bill

Andrew Bowie Excerpts

3rd reading: House of Commons & Committee: 1st sitting: House of Commons & Report stage: House of Commons
Tuesday 10th October 2017 Commons Chamber

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

It has been said by some that this Bill lacks substance, that this is a perfunctory debate and that it has little significance. I think that could not be further from the truth. For our actions here in the House this evening demonstrate beyond any discernible doubt that up to and until the point that we leave the European Union, we will continue to use our rights and obligations as full members of that institution, demonstrating that in the United Kingdom the European Union will retain the closest of friends, the strongest of allies and the most dependable of partners.

In that spirit, with our desire to do the right thing by our neighbours and echoing the Prime Minister’s comments yesterday when she reaffirmed our commitment to a peaceful, secure and prosperous future for Europe, it is right that we approve the decisions of the European Union Council. Few other single acts could better signal our desire for a peaceful and prosperous Europe than the granting to Serbia and Albania of observer status in the European Union’s Fundamental Rights Agency.

We cannot forget that it was less than 20 years ago that British and other NATO troops were deployed in the Balkans in the midst of an horrific conflict that we hoped we would never see the likes of in Europe again. While I am sure that all in this House would agree that more should and could be done, with the Council of Europe among others, regarding the pursuit of war crimes in Serbia, and on judicial reform, anti-discrimination policies, illegal migration, organised crime and protections of fundamental freedoms, it is surely a mark of the huge progress made in all these areas by the respective countries that the Council of the EU has seen fit to recommend that they be granted observer status as part of their EU candidate status.

Using our rights and obligations to the full until we leave, as we should, it is right that the UK supports Albania in its accession efforts and Serbia in its reform projects. Our giving consent to these—

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The hon. Gentleman makes an important point about encouraging the enlargement of the EU across the Balkan countries. On that count, does he also support the application of countries such as Montenegro, Macedonia, Kosovo and Bosnia?

[Andrew Bowie]

Each application has to be looked at in its own individual context. It is obviously not for me or this House to decide where each state is in terms of its candidate status, but for the Council of the European Union. I know that that is going through at this very moment.

The third and fourth decisions of the EU Council are necessary to implement a co-operation agreement between the European Union and Canada on competition enforcement. Canada is one of the United Kingdom’s oldest and closest partners: we have been allies in conflicts for over a century and we have a shared past, strong family links and shared values. As if to underline that closeness, Canadian and British troops, as well as European and other NATO service personnel, are working closely, side by side, as part of Exercise Joint Warrior along the north coast of Scotland. It is because of this closeness, and our shared history and values, that many in this House and beyond find it so frustrating that it has taken over eight years for the Comprehensive Economic and Trade Agreement to be agreed between the European Union and Canada. Even then, it almost came unstuck due to the complex internal machinations of Wallonian politics—I was going to make a comment about unchecked devolution, but I have thought better of it. I just wonder whether a UK-Canada free trade deal might take a slightly shorter time.

[Peter Grant (Glenrothes) (SNP)]

I am grateful to the hon. Member for giving way and for reminding us that as well as the co-operation with Canada, subject to this proposed Act, a much more significant and detailed co-operation agreement was finalised not so long ago. He will be aware that while the Bill has been offered a potential six hours debating time on the Floor of the House, the CETA deal was agreed without a single minute’s debate on the Floor of the House. Does he believe that that allowed the House to properly influence such an important trade deal?

--- Later in debate ---

[Andrew Bowie]

As the hon. Gentleman knows, that was well before my time in this House so I would not feel entirely comfortable commenting on that. This debate is not about CETA.

The decisions taken in the EU Council being approved by us today for agreement by the European Parliament will replace the 1999 competition and co-operation agreement. As the Minister said, the agreement replicates and builds on the provisions in the earlier agreement by allowing the European Commission and the Canadian Competition Bureau to exchange evidence obtained during investigations, including confidential information and personal data. These decisions will further help British businesses thrive internationally, as both Canadian and European business benefit from strong international competition law. On anti-competitive business practices, we must continue to work with Europe and Canada after we leave the European Union. We on the Conservative Benches know that the only way to reliably increase long-term living standards is through trade. Fair competitive trade is, as we know, the catalyst for reducing poverty, spreading prosperity and fostering innovation.

An outward-looking global Britain, as we will be, must continue to fight fair for business practices across the globe to ensure that free trade works for everyone. I hope the European Union recognises that the approval of its agreements is done in good faith, because it benefits citizens and businesses across the United Kingdom, Europe and Canada. In approving these decisions, we not only signal our commitment to the future of a peaceful and prosperous Europe, reaffirming our position as its closest and most dependable friend, but signal our continued desire to promote fair competition, free trade and an ambitious future for ourselves and our partners across the world.

[Peter Grant]

I am happy to speak in support of the Bill. As I mentioned in my intervention, it seems ironic that something that appears to attract little opposition and not even a great deal of concern across the House could, if necessary, be granted a total of six hours of debate—tonight’s allocation and what we had on Second Reading—on the Floor of the House, yet massively important and much more contentious EU legislation, such as the CETA deal, is guaranteed no time whatever on the Floor of the House. The Government were eventually dragged kicking and screaming into an upstairs Committee room for an hour and a half after the CETA deal had been signed off but before it was finally ratified. That was after months, if not years, of determined efforts by the European Scrutiny Committee, whose scrutiny process was ignored and overridden by the Government on that and on so many other matters. I will come back in a moment to explain why that is so vital, but it seems ironic that something relatively non-contentious requires an Act of Parliament before the Minister can sign it when Ministers from all parties have quite happily signed much more contentious EU documents in the past without any appropriate reference back to this House.

I want first to speak about the applications from Albania and Serbia. We should enthusiastically welcome the movements in those two countries. I am one of a fairly small number in here who can remember the days when Albania was like the North Korea of Europe. Even before the fall of the iron curtain, even when the Stasi were in charge in East Germany and even when the Ceausescu regime was in charge in Romania, Albania was seen to be the most isolationist place of all. We should welcome the fact that it now wants to move closer to the more modern family of European nations. And look at where Serbia has come from in the past 20 or 25 years; we should enthusiastically welcome the fact that it is now asking to be allowed to co-operate much more closely in the protection of human rights and the eradication of racism and xenophobia. We should encourage the Serbian people and Government to continue on that journey.