National Policy Statements

Andrew Percy Excerpts

Wednesday 1st December 2010 Commons Chamber

[Andrew Percy (Brigg and Goole) (Con)]

In my constituency, many properties are not on the gas network, and there are no plans to expand the network into many of the small villages there. Will those properties be able to access alternative sources of heating through the green deal, perhaps through air source heat pumps and so on?

[Charles Hendry]

I am grateful to my hon. Friend for the work that he has done to highlight issues such as these. We said in the coalition agreement that prioritising off-grid customers would be an important part of what we are seeking to do. However, the help for them will not come through the measures in the green deal. His constituents will of course be eligible for support for energy efficiency measures through the green deal, but the renewable heat incentive will give them support for other mechanisms such as air source heat pumps, ground source heat pumps and solar thermal installations. There will be a different funding mechanism for that, and we have confirmed that £860 million will be made available for the renewable heat incentive. We will set out the precise details of that in the next few weeks, and it will target precisely the people that he is most concerned about in that respect.

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[Charles Hendry]

We have to see the national policy statements as part of the process. They are an integral part of an improved planning process, but they are not the full package. Electricity market reform will also be a key element in incentivising people to invest. Let me give an example of how things are changing. I was recently with Ofgem launching the second round of offshore grid transmission infrastructure bids. More than 100 different organisations, most of which were new players in this area, were keen to take part in that process, which was started by the previous Administration. A number of new organisations—new financial institutions—want to invest in our energy infrastructure, which is extremely encouraging, but to see the full package of these measures it will be necessary to ensure that they see the planning changes and the funding mechanisms that will drive it forward.

[Andrew Percy]

rose—

[Charlie Elphicke]

rose—

[Charles Hendry]

I shall take a couple of interventions and then seek to conclude my remarks.

[Andrew Percy]

While we are on the subject of new players coming into our energy industry, I invite the Minister to visit north Lincolnshire and the site of the South Humber Gateway project, where we hope to cluster a number of offshore wind farm manufacturers with the potential to create 5,000 jobs initially, possibly rising to 20,000. It will be incredibly important to our region, so I invite the Minister to join me and my hon. Friend the Member for Cleethorpes (Martin Vickers) on a visit some time soon.

[Charles Hendry]

I know that both my hon. Friends have done sterling work in pushing the case for the South Humber Gateway. I would be delighted to see the planned work to get a clearer understanding of the ambition. It is typical of many of the ambitions of people who see a fantastic new opportunity emerging in the energy sector, and we are keen to encourage that. I imagine that my hon. Friend the Member for Dover (Charlie Elphicke) will make a similar plea for a visit.

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[Andrew Percy (Brigg and Goole) (Con)]

It is a delight to follow my hon. Friend the Member for Truro and Falmouth (Sarah Newton), who spoke about the energy potential of the hot rocks of Cornwall. I shall say something about the energy potential of the East Riding of Yorkshire and north Lincolnshire, which it is my privilege to represent. My rocks may be a little colder, however.

We already contribute significantly to the energy infrastructure of this country, not least through the power stations just outside my constituency and the constituency of my right hon. Friend the Member for Haltemprice and Howden (Mr Davis), at Drax and Eggborough, as well as through the coal-fired power station at Keadby in my constituency. There are also the potential opportunities that I raised with the Minister earlier with regard to offshore wind at the South Humber Gateway. I shall not mention in the presence of my neighbour, my right hon. Friend and the Member for Haltemprice and Howden, onshore wind turbines, as he and I are engaged in a number of skirmishes with various developers.

I welcome today’s debate, which has ranged much broader than simply the national policy statements. We have gone into many wider areas of energy policy. The national policy statements will contribute to putting our energy policy on a much more secure footing, which we recognise is essential if we are to attract the necessary investment to keep the lights on in this country, as other Members have mentioned.

I shall speak about two issues associated with the potential for offshore wind. I mentioned earlier the potential for clustering the manufacturing for offshore wind at the South Humber Gateway, which has been progressing somewhat slowly through the planning system, owing to similar problems to those mentioned by other Members in relation to Natural England. In fairness to both Natural England and the developers, I should say that there has been significant movement in recent days and we may well get agreement. The planning structure is a problem for us because the developers are looking at sites not just in the UK, but internationally. Unless we get that right, we risk losing a potentially huge amount of investment, in this case to other countries in Europe.

I was pleased to hear the Minister talk about the review of overhead lines, which are another massive issue in my constituency. The national grid seems to criss-cross all over some beautiful Lincolnshire and east Yorkshire countryside. I shall follow the proceedings with interest.

On the relationship between national policy statements and local councils, I echo some of the concerns expressed by the Energy and Climate Change Committee, which said:

“We are concerned that the current status of the NPSs within the wider planning system is, at best, ambiguous.”

I note the Government’s response, which states that

“the degree to which Government policy, including the policy in the NPS, or draft NPS, is relevant to any particular planning application . . . is not for Government to prescribe.”

They go on to say that they therefore do not believe that any additional guidance is necessary.

I ask the Minister to reconsider that. Having served as a local councillor for 10 years, I know that it is an undeniable attraction to planning officers to look for leadership from national Government in local planning decisions. Could we have a clearer statement that the NPSs will not impact on local planning decisions and should not be used as an excuse? We saw regional spatial strategies often being drawn into planning applications, where they had no real role. The temptation is irresistible to many planning officers to look to national policy for guidance. Perhaps that can be considered in more detail when we debate national policy statements next year.

I welcome the general direction of policy. The debate today has been interesting, with the Minister and the shadow Minister working on a consensual cross-party basis on many topics. That is significant on a subject that is so important to the country. I look forward to seeing the Minister at the South Humber Gateway shortly, and I thank him for that.