Oral Answers to Questions
Andrew Stephenson Excerpts(5 years, 5 months ago)
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Priti Patel (Witham) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
Our national productivity investment fund of £37 billion will increase investment in areas important for economic growth, such as transport. The Government are also committed to deliver the Lower Thames crossing with an estimated cost of £5.3 billion. I will happily discuss infrastructure projects in Essex with the Secretary of State for Transport, when I next see him.
Priti Patel
Last week, I chaired key investment meetings with businesses in Essex for the Great Eastern Mainline Taskforce and on the dualling of the A120. Those two projects alone would contribute £5 billion to the regional and national economy. Will the Minister and the Secretary of State encourage the entire Department to work with us to get behind this and get to the Treasury in particular to get the investment that is needed to get those schemes moving?
Andrew Stephenson
I welcome my right hon. Friend’s tireless championing of the case for improved road and rail in Essex, and I am happy to lend my support to her campaign. The county has a vibrant, enterprising economy, but greater investment in connectivity would deliver more jobs, housing and opportunities right across the region.
Justin Madders (Ellesmere Port and Neston) (Lab)
Nicky Morgan (Loughborough) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
We provide support through Innovate UK for early-stage fuel cell technologies, and through the Advanced Propulsion Centre and the energy entrepreneurs fund as those technologies mature towards the market. Our £23 million hydrogen for transport programme is expanding refuelling infrastructure, and fuel cell vehicles are eligible for consumer incentives, which helps to increase demand. Two weeks ago, I was at No. 10 with Intelligent Energy, a company in my right hon. Friend’s constituency, considering further opportunities for fuel cell deployment.
Nicky Morgan
I thank the Minister very much indeed for that answer; it sounds almost as if he knew I was going to raise Intelligent Energy, which is based in my constituency and, as he obviously knows, manufactures hydrogen fuel cells, having developed the technology. Will he confirm that the Government are technology neutral when it comes to identifying future technologies? To follow on from the previous question, do the Minister and the Department appreciate the opportunities for factories where diesel engines are no longer going to be manufactured to get into the manufacture of the next generation of engines, which should be fuelled by hydrogen fuel cells?
Andrew Stephenson
I agree strongly with my right hon. Friend: there is huge potential for the auto sector. The Government are committed to policies that are technology neutral as we achieve the ambitions that we set out in the Road to Zero strategy around a year ago. The Government support the development of hydrogen as a transport fuel and we are in step with international progress. However, we acknowledge that we need to go further and faster in all different types of technologies.
Jim Shannon (Strangford) (DUP)
We have certainly had some impressive improvements since the Automated and Electric Vehicles Bill in 2017, but will the Minister outline what recent steps have been taken to secure this manufacturing facility, which was so central to the Bill and its goal?
Andrew Stephenson
I missed the manufacturing facility that the hon. Gentleman referred to, but I am more than happy to work with him and others. I have been working closely with colleagues in Northern Ireland on a range of issues, and I am keen to meet the hon. Gentleman who is a tireless champion on behalf of industry in his part of the United Kingdom.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
Officials in my Department have had several discussions with their counterparts in the Ministry of Defence on how the expertise and resources of the Nuclear Decommissioning Authority can best assist the submarine dismantling programme. However, we do not believe that extending the provisions of the Energy Act 2004 would provide an appropriate addition to that support.
Luke Pollard
I thank the Minister for his reply, but it is disappointing that that is the first time a Minister has said no to the cross-party request to extend the civil clean-up of nuclear sites to include old nuclear submarines, of which there are 13 in Devonport and six in Rosyth. Will the Minister lend the same support as his predecessor did and agree to meet the cross-party campaign? We have to find a way to safely recycle the submarines.
Andrew Stephenson
The disposal of nuclear submarines is a complex and challenging undertaking that I last discussed with the Minister for defence procurement, the Under-Secretary of State for Defence, my hon. Friend the Member for Pudsey (Stuart Andrew), yesterday. As the hon. Gentleman will know from the meeting he had earlier this year, the Government have an established programme of work in place and are committed to the safe, secure and cost-effective defuelling and dismantling of all decommissioned nuclear submarines as soon as practically possible. I am more than happy to meet the hon. Gentleman to discuss the matter further.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
We have regular discussions with Treasury Ministers on a range of subjects, including the importance of the manufacturing sector to the UK economy—it is the fourth largest in the EU and supports 2.7 million jobs. We are taking several measures to support manufacturing growth, including £141 million for the Made Smarter industrial digitalisation programme and £600 million for the high-value manufacturing catapult.
Mr Bailey
Notwithstanding the welcome news from Jaguar Land Rover, overall manufacturing production is contracting, export and domestic orders are down, investment is paralysed and employment is dropping. This has huge implications for the public finances. What discussions is the Minister having with the Treasury on the implications of all that for the delivery of the Tory leadership contenders’ tax and spending plans?
Andrew Stephenson
The latest Office for National Statistics index of production figures show that, despite strong fluctuations in recent months, the level of manufacturing output in May 2019 was the same as it was in May the previous year, and the level of the three months to May 2019 was actually higher than it was in the same period in 2018. That stands in stark contrast to the situation under the Labour Government, when we saw more than 35,000 manufacturing businesses cease to exist and 1.7 million manufacturing jobs lost.
Mrs Kemi Badenoch (Saffron Walden) (Con)
MetalMin is a manufacturing business in my constituency and part of the British Steel supply chain. Will the Secretary of State meet the directors of the company to discuss what specific support the Department is providing to British Steel suppliers to ensure that they can stay in business?
Andrew Stephenson
I thank my hon. Friend for her question. She will know that the Secretary of State and I are actively involved in the British Steel support group, which meets weekly. We will raise the concerns of her local business at that support group and I will come back to her.
Barry Gardiner (Brent North) (Lab)
The Minister will know that last month’s statistics on foreign direct investment show that new projects are down by 14%, new jobs are down by 24% and existing jobs safeguarded by new investment are down by 54%. That is an 80% drop in FDI over the past five years. What discussions has he had with the Chancellor about the effect of that on manufacturing output?
Andrew Stephenson
I am proud that we remain one of the most attractive destinations in the world for foreign direct investment. UK unemployment has now fallen below 3.8% for the first time since 1974, average wages are growing twice as fast as inflation and by the fastest rate in over a decade, and all while we borrow half as much as Labour did in the five years before the crash.
Martin Vickers (Cleethorpes) (Con)
Can the Minister give an update on negotiations in reference to Scunthorpe steelworks?
Andrew Stephenson
I thank my hon. Friend for that question. As he will know, that is in the hands of the official receiver. I am seeking to keep him and other local Members of Parliament updated regularly with what is going on, but I know that my right hon. Friend the Secretary of State has left no stone unturned and is meeting with various bidders and other people to secure the long-term future of steelmaking in his region.
Jeremy Lefroy (Stafford) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
Yesterday, the Prime Minister chaired a roundtable with automotive companies to discuss how the Government can best continue to support the industry through this period of unprecedented change. The Prime Minister announced a £500 million loan guarantee to support Jaguar Land Rover’s design, manufacture and export of the next generation of electric vehicles, with similar support also available to others in the sector. Through our industrial strategy and landmark automotive sector deal, we remain committed to keeping the UK at the forefront of new technological development.
Kirstene Hair
I thank the Minister for that answer and declare that I am vice-chair of the all-party group for fair fuel.
The automotive industry is moving apace to ensure that it can help reach the Government’s ambitious targets for electric vehicles, but of course we need to have the infrastructure in place to supplement that as well. Will the Minister outline what his Department has done to help rural communities such as Angus with that?
Andrew Stephenson
Our UK-wide grant scheme and the £400 million public-private charging infrastructure investment fund will see thousands more public charge points installed across the UK, including in rural areas. Yesterday, the Prime Minister committed that all new rapid and higher-powered charge points will provide pay-as-you-go debit or credit card payment options by spring 2020 to enable access for all in the community. We will continue to monitor whether any significant gaps in infrastructure provision emerge in the medium term and will consider whether further support is required.
Jeremy Lefroy
I very much welcome the announcements by JLR and BMW. The Minister will know that in the event of a no-deal, which I very much hope will not happen, we will face not only tariffs, but the implication of rules of origin. This was seen by BMW moving the manufacture of engines for South Africa out of Hams Hall in the west midlands to Germany. What discussions has he had with his colleagues in Government over the implications of rules of origin for future trade arrangements?
Andrew Stephenson
I thank my hon. Friend for his question. He is right to say that the decisions by JLR and BMW about the electric Mini are votes of confidence in the workforce in the west midlands. However, we must prepare for all scenarios, and we are fully preparing for no deal and working with the industry to understand the potential impacts, including, as he says, the impact of rules of origin. We are determined to ensure that the UK continues to be a competitive location for automotive under any scenario. Alongside industry, we are investing almost £1.5 billion to ensure that we are at the forefront of new automotive technologies.
Jack Brereton (Stoke-on-Trent South) (Con)
Trudy Harrison (Copeland) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
I agree with my hon. Friend that nuclear power has a key role to play in delivering the net zero target and acknowledge the unrivalled nuclear expertise in Copeland, which I was delighted to see on my recent visit to her constituency. We intend to publish our assessment of the feasibility of the RAB model for funding new nuclear shortly.
Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
Andrea Jenkyns (Morley and Outwood) (Con)
I recently visited Coca-Cola in my constituency. It will be investing £50 million in its Wakefield plant this year, providing jobs and apprenticeships to my constituents. Companies are investing in Britain, demonstrating that the future will be bright after Brexit. What is the Department doing to attract further foreign investment?
Andrew Stephenson
I thank my hon. Friend for her question. We work closely with the Department for International Trade to secure more inward investment into the UK, and we ensure through our industrial strategy that we have one of the most competitive environments for investment globally.
Thangam Debbonaire (Bristol West) (Lab)
What discussions is the Secretary of State having with his relevant counterparts in other departmental teams about the ability of people in the creative industries to travel around the European Union if there is a Brexit of any sort? Secretary of State, please.
Climate Change, the Environment and Global Development
Andrew Stephenson Excerpts(5 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
I beg to move,
That this House has considered tackling climate change, protecting the environment and securing global development.
I welcome this timely debate and the work of the Select Committee on International Development, and of many hon. and right hon. Members on both sides of the House, to highlight the urgency of addressing the interlinked challenges of tackling climate change, protecting the environment and ensuring sustainable development.
The challenge has never been clearer and our will to act has never been stronger, as demonstrated by the resounding support from both sides of the House for committing the UK to a target of net zero emissions by 2050. The world faces the challenges of doubling global infrastructure to meet development and of feeding 1 billion more people, while simultaneously halving global greenhouse gas emissions by 2030 to keep pace with the Paris climate change targets.
Globally, we are not yet on track to meet the aspirations of the Paris climate agreement. On our current trajectory, we may hit 1.5° C above pre-industrial temperatures as early as 2030, and 3.5° C above by 2050. This risks 100 million people being pushed into poverty by climate change by 2030, making the sustainable development goals much harder to achieve.
Mr Jim Cunningham (Coventry South) (Lab)
What has been the impact of the Americans withdrawing from the Paris agreement? Has there been any dialogue, for want of a better term, with the Americans to get them back into the agreement?
Andrew Stephenson
We have regular discussions with the American Government. Obviously we think the Paris climate change agreement is important, but we are seeing reductions in America’s emissions because many states and many bodies across the country have decided to up their ambitions despite the actions of the federal Government. We are seeing some encouraging signs, even if we hope the US Administration would go further and faster.
Caroline Lucas (Brighton, Pavilion) (Green)
The Minister talks of the need for the US to go further, but will he acknowledge that the UK needs to go an awful lot further, too? He will be aware that the Committee on Climate Change reported just this morning that
“actions to date have fallen short of what is needed for the previous targets and well short of those required for the net-zero target”.
If that is what the Government’s own watchdog is saying, what will they do to make sure we have real action, not just warm words?
Andrew Stephenson
We are the best in the G20 in terms of our reductions. Between 1990 and 2017 we reduced our emissions by 42% while growing our economy by 72%. I will happily take some criticism from the Committee on Climate Change, but we should acknowledge that this country is a global leader in our efforts to tackle climate change.
Henry Smith (Crawley) (Con)
I congratulate the Government on leading the way as the first major industrial country to call for net zero carbon emissions by 2050. We lead the world on our international development commitments, and as a member of the International Development Committee—the Committee is meeting in a few minutes’ time, which is why many members of the Committee are not here today—may I urge the Government to make sure we do so on the environment, too?
Andrew Stephenson
I thank my hon. Friend for what he says, and I pay tribute to him and to other members of the International Development Committee for their inquiry on this subject. I know the Committee heard many different pieces of evidence, and it made firm recommendations to the Government. I hope we will have the official response soon—hopefully next week—and then we can all reflect on how we can go further and faster, because we do need to go further and faster in all these areas.
Andrew Stephenson
I am going to make some progress. I am about one minute into my speech, and I have already given way to the hon. Lady.
The International Development Committee described the impacts of climate change as “nightmarish,” and it talked about increasing drought, flooding, displacement, hunger and disease, potentially reversing the hard-won development progress we have seen over the past few decades.
The International Development Committee’s inquiry on UK aid for combating climate change, published in April, found that
“it will be the least developed countries and the most vulnerable people who will be hit the first and the hardest by climate change…Climate change cuts across everything. The effectiveness of all UK aid spending is dependent on whether the international community rapidly and effectively combats the causes and impacts of climate change.”
As the scale of the challenge becomes ever clearer, we see a tipping point in public awareness and engagement.
I doubt whether any hon. Member here today does not have schools in their constituency that are going above and beyond in learning about the environment. I recently visited St Joseph’s Catholic Primary School in Barnoldswick, in my constituency, to present it with an Eco-Schools green flag award.
We have also seen children at schools around the world going on strike to call for urgent climate action. We have seen the success of London Climate Action Week, with 150 events showcasing a wide spectrum of climate action and solutions, and we have witnessed the strength of cross-party support for our bid to host COP 26 next year and for the UK leading the way with our net zero target.
There are many challenges ahead. We know we need to do more, and we do not have all the answers yet, but we should be proud of the UK’s ambition and leadership to date on climate change. We have led the world in delivering clean growth, showing that action on climate change can be a win-win for the environment, for the economy and for quality of life.
Anna McMorrin (Cardiff North) (Lab)
Is the Minister able to go into more detail on the radical change that is urgently needed across all levels of government and all Departments to make sure that change happens within the next 11 years? That is what the advice is telling us. Otherwise we face a climate emergency the likes of which we have never seen.
Andrew Stephenson
As the hon. Lady will be aware, the Government have published a number of strategies that are kept under constant review. In my own area—business and industry—“The Road to Zero” was published about a year ago, and it talks about phasing out all petrol and diesel cars by 2040, which is something we need to keep under review. Many hon. Members on both sides of the House think we should do it faster, and as we roll out charging points, invest in industry and take various other steps, we should always keep these things under review as we seek to decarbonise transport, home heating and all sectors of our economy.
Anna McMorrin
Words are fantastic, but we need to see action and targets to meet them. The advice of the Committee on Climate Change is actually to move towards getting rid of diesel cars long before 2040. We need to take urgent action to cut those emissions, and to cut them now.
Andrew Stephenson
I have some sympathy with what the hon. Lady says, but the Government set the target in “The Road to Zero” after consultation with industry and different groups. We came to it as a sensible target. We now have more than 200,000 electric vehicles on our roads and more than 20,000 charging points.
One thing that is overlooked when people think about the charging infrastructure is that, over the past few months, we have been installing 1,000 additional public charging points every month. We are starting to see a significant ramping up of progress, following announcements of investment in this area over successive years. Over £1.5 billion is being invested in the decarbonisation of cars in this country. In the months ahead, in addition to further Government announcements, we will start to see progress in this area.
Sir Oliver Heald (North East Hertfordshire) (Con)
Does my hon. Friend agree that what we have is a process in which the Committee on Climate Change is helping us by pointing out what we need to do next, and we are doing it? Recently, 80% by 2050 became 100%, so it is a process by which we are meeting our targets.
Andrew Stephenson
I thank my right hon. and learned Friend for that point. Most of the committee’s critique of the Government is fair, but we are about to publish updates on 80% of the actions. In many we have signalled a clear policy intent, for example on future home standards. A lot of progress is being made, and I agree with his point.
On 27 June, we set a legally binding target to achieve net zero greenhouse gas emissions from across the UK by 2050. That world-leading target will bring to an end our contribution to climate change, and makes the UK the first major economy to legislate for a net zero target. The UK also has a strong track record on international development, through our legal commitment to provide 0.7% of our gross national income as official development assistance. Alongside efforts to reduce our own emissions, we have committed to work with developing countries, including as part of our ODA, to enable them to pursue clean growth and climate-resilient development. We are on track to provide £5.8 billion of climate aid—our international climate finance—to help developing countries tackle the causes and impacts of climate change between 2016 and 2020.
That climate aid is delivering real results. Since 2011, we have helped more than 47 million people cope with the effects of climate change and natural disasters. We have provided 17 million people with access to clean energy. But it is still not enough. As the International Development Committee noted, it is not a problem that can be solved by Government action alone. We need businesses, communities and individuals to also act. It will be really challenging: real shifts in behaviour and global ambition will be needed, and there can be no more business as usual.
The next few years are critical. That is why tackling the crisis has become such a high priority for the UK, and it is why we have offered to preside over the major UN climate summit next year—COP 26—in partnership with Italy.
Wera Hobhouse (Bath) (LD)
On the point about business, what has also been said clearly this morning in the report back from the Committee on Climate Change is that the Government need to set out a road map so that business can understand in which direction they are going, and then the investment will follow. The first action has to lie with the Government.
Andrew Stephenson
To go back to the example I have just used of decarbonising transport in this country, “The Road to Zero” is a clear road map that was set out a year ago by the Government. It was not a kneejerk reaction: it was done in consultation with industry, other bodies and our international partners to come up with a credible track to reduce carbon emissions from road transport.
The UN climate action summit in September this year is a key staging post in our efforts. It will be a critical opportunity for world leaders to set out their ambitions ahead of COP 26, and to drive an unprecedented shift in the way we approach resilience and adaptation. Despite the scale of this challenge and the opportunities to be gained from acting, it is often seen as a problem for the future. That is why the United Kingdom and Egypt are co-leading the resilience and adaptation theme at the UN climate action summit in September. We want to drive a transformational change in the way different stakeholders around the world think about and invest in resilience and adaptation.
Rachel Reeves (Leeds West) (Lab)
The resilience point is well made and incredibly important. The Committee on Climate Change said today that some 9,000 properties a year need to be fitted with flood protection—up from 500 at the moment. Kirkstall in my constituency flooded in December 2015 and the Government still have not committed to the level of flood protection that the community needs. When the Government speak about resilience, is it not just more warm words and not enough action?
Andrew Stephenson
I disagree with the hon. Lady. We have seen billions of pounds spent on flood defences across the United Kingdom. There are areas where we want to go faster: the Environment Agency has just finished a £1 million project in Earby in my constituency, and I am lobbying for it to do even more in the area. I am aware that many right hon. and hon. Members would like us to go further and faster on flood defences. I will happily raise the issue with my colleagues in DEFRA, but we are investing in ensuring that we are resilient in the future. We can do more, and we need to do more, but we are making some good progress.
Let me turn to the issue of international climate finance. Many of the interventions so far have been about our domestic record, but I want to steer us back to our international obligations and what we are doing to help some of the poorest in the world.
Let me give the House a sense of the ways in which the UK is supporting developing countries with the climate challenge. The UK uses its international climate finance, a growing part of our UK aid budget, to support developing countries to move on from business as usual to: adapt and be more climate resilient; take up transformational low-carbon development; and tackle deforestation and unsustainable land use. The Department for International Development, the Department for Business, Energy and Industrial Strategy and DEFRA work together to deliver that support, which is making a difference in over 100 countries across Africa, Asia and Latin America.
Kerry McCarthy (Bristol East) (Lab)
Two quick points. At the launch of the “People and Nature” campaign in Parliament on Monday, we discussed the fact that there is not much point in DFID adopting these very admirable principles if UK Export Finance is supporting fossil fuel investment. Secondly, we have heard reports recently that in Brazil, parts of the Amazon the size of a football pitch are being deforested every minute. The current President’s approach suggests that he wants to continue that deforestation. Where does that fit? We hear that Government Ministers are going to Brazil to talk about fossil fuel exploration. There seems to be a lack of consistency between what DFID and other arms of Government are doing.
Andrew Stephenson
I thank the hon. Lady for those points. There has been a clear trend in UK Export Finance to move away from support for fossil fuels and towards significant additional resources going into funding renewables. Where fossil fuels have been supported they have been fuels such as gas, which is widely seen as a transition fossil fuel, and away from high-polluting fossil fuels such as coal, which UK Export Finance has not financed for well over a decade. I will touch on Brazil in my speech, so if she will allow me I will come on to that shortly.
Through programmes like the Climate Investment Funds, we are: climate-proofing road and canals in Zambia; mainstreaming climate resilience into Government planning in Malawi and Mozambique; supporting climate-vulnerable small island states to manage climate risks; and helping to drive investment in some of the largest solar power complexes in the world. Through programmes like the Renewable Energy Performance Platform, we are mobilising private sector investment in solar homes systems and small-scale renewable energy in sub-Saharan Africa, bringing clean power to those who need it most.
Bob Stewart (Beckenham) (Con)
I thank my good friend the Minister for allowing me to intervene. Ever since I was a boy, I have always been extremely concerned about jet fuel being injected directly into the upper atmosphere. I was told when I was young that it was clean. Of course it is not. One of the really big problems we have internationally is that jets go across our skies—some of them are not ours, obviously—and we cannot electrify a jet engine. It would be wonderful if someone could come up with a way of making an electric jet engine, so that we do not spew out exhaust into the upper atmosphere, which must have a direct effect on our climate.
Andrew Stephenson
I agree with most of what my hon. and gallant Friend says. I would just say that we do not have an electric jet engine—yet. Through the industrial strategy, a huge number of programmes are being run through my Department, including the Future Flight Challenge, which is looking at exactly these challenges so that we do not just electrify road transport, but move to lighter-weight and more efficient engines, and eventually on to electric engines flying our passenger aircrafts. Some of that work is running over a long period of time, but between Government and industry we are investing billions of pounds in exactly the kind of challenge he talks about.
We are a world leader in climate policy, green finance, and sustainable services and technologies. Through our climate aid programmes we are sharing our learning and expertise internationally, whether bilaterally or in multilateral forums, building on our pioneering Climate Change Act 2008, net zero legislation and standard-setting power sector reform, helping to build markets for clean growth technology and services worldwide. To give the House an example, in June, my Department hosted delegates from 12 developing countries for a week-long workshop to introduce them to British expertise in offshore wind and see it in action in the Tees Valley. We are now working with the World Bank to support those countries with their plans to develop their own offshore wind projects.
We are building bilateral partnerships to tackle these challenges. For example, the UK recently signed a memorandum of understanding with Colombia, signalling the start of a bold new partnership for sustainable growth. This first-of-its-kind partnership focuses on: clean growth; halting deforestation and environmental crime; preserving biodiversity; and promoting green finance to ensure the private sector can play its part in supporting Colombia’s transformation. About 200,000 square hectares of forest are lost each year in Colombia, putting its diverse ecosystems, indigenous communities and natural resources at risk, as well as driving greenhouse gas emissions. Our programmes address the structural development issues that lead to such deforestation, and in turn reduce carbon emissions.
One of our programmes works to restore degraded land, increase biodiversity and protect standing forests while at the same time increasing agricultural production by 17%, bringing income to the poorest farmers. That is sustainable development in action, benefiting the climate, the environment and people’s livelihoods. Working to mobilise private investment to address the climate challenges is a strong focus of our climate aid, and our innovative, market-driven approach ensures that we meet global climate and sustainable development needs hand in hand.
To give another example, growing demand for soy is driving agricultural expansion and deforestation in Brazil, particularly in the Cerrado savannah region, driving up emissions and causing environmental destruction. During London Climate Action Week, we announced a green bond that will help to prevent land conversion and restore natural habitats, while supporting farmers to grow their businesses. Launched the same week as the green finance strategy, it highlights our commitment to using our green finance expertise to support sustainable development in Brazil and other countries that will be most directly impacted by the effects of climate change.
Sarah Newton (Truro and Falmouth) (Con)
My hon. Friend makes an important point about sustainable development and preventing deforestation. Does he agree that we must reach out to countries that we currently have a difficult relationship with—for example, Russia, where we are seeing dramatic deforestation in Siberia that could create untold damage not only to the region, but to the climate?
Andrew Stephenson
I agree very strongly with what my hon. Friend says. We must work with all countries around the world. Obviously, most of our overseas work is focused on the poorest countries, but we must ensure that we engage with middle-income countries and all countries to ensure that they play their part, because it is the poorest in the world who will pay the price, and an ounce of carbon does not recognise national borders. We must work on this internationally; that is why I am really proud that we are bidding for the conference of the parties to be held here. We can never stop pushing on this globally to ensure that we are all doing everything that we can.
The scale of the challenge that we have talked about today is immense. Meeting our objectives and delivering the global transition to a low-carbon economy, while ensuring continued global development, will require action from Governments, business and communities. The UK is at the forefront of ambitious action to catalyse that transition. As announced by my right hon. Friend the Prime Minister at the G20, we have committed to ensuring that all UK aid spend will be aligned with the Paris agreement. That will mean that every penny we spend on support for developing countries, whether for education, job creation or infrastructure, will be compatible with our shared climate change goals.
We will work collaboratively with partners around the globe, including the multilateral development banks, to develop appropriate and robust methodologies for enabling our aid to align with the objectives of the Paris agreement, and we will encourage others to follow suit. My right hon. Friend the Secretary of State for International Development has also set out his intention to double the spending in his Department on climate and environment between 2021 and 2025, and to put climate and environment at the centre of our aid strategy.
Government action alone will not be enough; the global transition to a low-carbon economy will require unprecedented investment in green and low-carbon technologies, services and infrastructure. That is why the green finance strategy that we launched on 2 July is such an important step. Building a financial system fit for net zero will mean fundamental changes to the way in which investment decisions are made.
The strategy will position the UK at the forefront of this global transition, catalysing the investment we need to transition to a net zero economy, while strengthening the competitiveness of the UK financial sector and the wider economy, and ensuring that the City of London is the go-to hub for green investment and that we seize the significant opportunities of clean growth for the UK economy. Only once we are shifting the global economy by trillions will we really start to see a gear change in the low-carbon transition. It is critical that we all work together to make this transition. Tackling climate change and pursuing clean growth are critical to continued global prosperity and meeting the sustainable development goals, and for our continued prosperity and security right here in the UK.
As well as challenges, the low-carbon transition will bring huge opportunities—for cleaner air, for conserving the environment, for creating economic opportunities that the UK is well placed to seize. There are almost 400,000 jobs in the UK’s low-carbon sector and supply chains, and it is estimated that the UK low-carbon economy could grow by 11% per year until 2030. I am proud that UK companies such as Lightsource, which is developing solar in India, BBOXX, which is enabling off-grid power in sub-Saharan Africa, and Faro Energy, which is investing in renewables in Brazil, are helping to drive the clean growth transition around the world.
Andrew Stephenson
I am about to conclude my remarks, but I look forward to the hon. Lady’s contribution.
The UK has a proud record in this area. We have committed to spend 0.7% of GDP on international development and are the first major economy to legislate for net zero. By working together—Government, business and individuals—we can be world leaders in this area. I look forward to the contributions of hon. Members from across the House, including that of the Minister of State, Department for International Development, my hon. Friend the Member for West Worcestershire (Harriett Baldwin).
Sir Oliver Heald
I agree that co-ordination is crucial. The hon. Lady makes a good point about infrastructure.
To make that long-term target a reality, we need short-term policies to get us to the point where we can accelerate electrification of road transport. Important measures include providing Government-backed interest-free loans for electric vehicle purchase; creating incentives for the installation of ultra-rapid electric vehicle chargers at key strategic points, such as on the motorway network; a new tax on sales of non-electric vehicles after 2030; introducing the right as a tenant to request an electric vehicle charging point; and changing the sort of fuel we use in petrol or hybrid petrol cars. I support the campaign recently instigated by the all-party parliamentary group for British bioethanol, which has considerable support in the House, for a shift to 10% ethanol in standard petrol, which would deliver both emission reductions and UK jobs and which I see as part of the transition.
British bioethanol is created essentially from wheat in the north of England. The wheat would otherwise be used for animal feedstuff if, and only if, a high-protein additive such as soya were added to it. It cannot be used for human beings. The soya comes from South America, which touches on the point about the Brazilian rain forest, which makes these soya imports a subject of environmental concern. A by-product of making bioethanol from British wheat is a rich-in-protein animal feed, which displaces the soya. With total investment of £5 billion, two factories have been set up in the north of England, involving 5,000 jobs. One of them is mothballed and the other is running at half capacity as they wait for the Government to mandate E10 petrol—petrol with 10% ethanol. Forward-looking countries in Europe, Australia, Canada and the USA are already doing that; it is time we got on board. It is estimated that the reduction in carbon emissions from E10 being used as the UK’s standard petrol would be equivalent to taking 700,000 cars off the road; it would also be less polluting and protect British jobs. I know the Department for Transport has already consulted on this, but it should move quickly to make this change, certainly for 2020.
Let me now talk about the tax situation and how we deal with the change from fuel duty to a world of electric vehicles. As we shift to electric vehicles, the amount of revenue the Exchequer takes from fuel duty will naturally shrink. We need, therefore, to change how we pay for roads. Road pricing is based on the principle that those making use of public roads should pay a sum commensurate with costs involved. Ideally, the total sum should include the costs of air pollution and greenhouse gases as well. Sophisticated schemes also use live data to factor in congestion, and charge people more to drive during peak times on busy roads. There are existing schemes, such as in Singapore, that show that this can be done. So the Government should be looking at that as a possible way forward. By working with the power of market price signals, road pricing incentivises individuals to use cleaner fuel and to travel at times that are less damaging.
I shall turn now to regional rail networks and bus, tram and cycling services. The lack of decent transport outside London is a handbrake on UK growth. Local transport networks in towns and cities are woefully undeveloped compared with those in similar sized places in other countries. For example, Leeds is the largest city in the European Union with no mass transport system. Its twin city, Lille, has two metro lines, two tram lines, and an international high-speed rail connection. Fixing this disparity is critical to UK growth and to easing the pressure on housing demand in London. To meet net zero, we need a switch of freight from road to rail, and for commuters and travellers to feel confident to use low carbon transport.
I wish to mention a few strategic transport investments at this point. Surely the time has come to modernise the rail network across the Pennines—
Sir Oliver Heald
The electrification of the rest of the midland main line is another that the Minister would probably agree with. What about the new super-tram network for Leeds? How long has Sheffield had its tram? As the Government engage in transformative infrastructure projects, it is important that they do not ignore local efforts to encourage active transport, such as cycling. I support cycling schemes, through Sustrans and the revamped cycle to work scheme.
In my North East Hertfordshire constituency, we have done a considerable amount to improve cycling facilities, but we want more. At a recent conference in Letchworth Garden City, the subject was “connectivity”. People were looking at how we can have connectivity in a low carbon way, and this involved new developments and how we fit them in with existing ones. Improving both the low carbon footprint of towns and industry, and the low carbon transport between them, was a key subject discussed.
UK Steel Industry
Andrew Stephenson Excerpts(5 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for Scunthorpe (Nic Dakin) on securing the debate and the opportunity to bring everyone together on a cross-party basis to discuss this topic. As a number of his colleagues said, he is an energetic and passionate advocate for the UK steel industry and for his constituents. I am pleased that so many Members were able to attend and speak. It is clear that there is a shared understanding of the important role the steel sector plays in our communities and of its critical place as a foundation industry in the national economy. I also acknowledge that, for the first time in my memory, I am joined in Westminster Hall by a Secretary of State. I had better watch what I say.
While everyone acknowledges there are considerable challenges, we believe that great opportunities remain for the industry to secure a successful, sustainable future at the centre of British manufacturing. The announcement on 22 May that British Steel was entering insolvency has caused great concern for its employees and their families and for contractors, suppliers and customers. I understand just how important steelmaking is to the whole town of Scunthorpe and the wider area, beyond the many people with direct links to British Steel. I saw that first hand the day after the insolvency was announced, when I visited Scunthorpe with my right hon. Friend to discuss with workers, trade union officials and management.
The Government worked intensively with British Steel, Greybull Capital and lenders to seek possible solutions to the financial challenges facing the company. That included the support we provided to help it meet its environmental obligations. We also provided the official receiver with an indemnity to ensure operations could continue while they carry out the insolvency process.
We are determined that we will leave no stone unturned in our efforts to secure a suitable buyer for British Steel, safeguarding jobs across the whole of the business, and many people have spoken passionately today about the need to find a solution for the whole business. We want to keep steel coming off the production line. The official receiver has confirmed that the level of interest shown to date is encouraging, and he is in intensive discussions with the potential new owners who have submitted the strongest bids for the whole business.
Clearly, the sales process is being run by the official receiver and his special managers, who are independent of Government. However, in parallel to those commercial negotiations, the Secretary of State is in discussion with the leading bidders to better understand their proposed business plans and explore how we can support them to realise their vision for the company. Each one of British Steel’s sites has a proud record of steelmaking excellence, and the Government are determined to do all we can to ensure that that continues.
I must also pay tribute to British Steel workers, who have responded to the uncertainty with the best response possible—by producing record levels of steel and continuing to supply its customers and to win new orders. I am grateful to the hon. Member for Scunthorpe for his tireless commitment to working with Government and other stakeholders to help secure the future of the business, both in his role as a local MP and as a member of the British Steel support group, convened by my right hon. Friend. I also pay tribute to my hon. Friends the Members for Middlesbrough South and East Cleveland (Mr Clarke) and for Brigg and Goole (Andrew Percy) and the hon. Member for Redcar (Anna Turley) for the positive role they have played on the British Steel support group since it was established in May.
As the hon. Members for Newport East (Jessica Morden) and for Motherwell and Wishaw (Marion Fellows) said, steel is a foundation industry. It is important for any modern economy and plays a key role in many critical UK supply chains, including construction, automotive, defence and power generation. I have spoken to business leaders right across the manufacturing sector, who value having this expertise and capability here in the UK, and who—like all of us—want to see an innovative and sustainable steel sector that is able to compete with the best in the world.
The steel sector provides well-paid and skilled jobs in this country. The passion I have seen in Scunthorpe is replicated right across the industry, and I want to see the sector thrive and reward the staff, whose expertise and commitment is second to none. The Government have been working with the sector and trade unions to secure its future through difficult times, and we remain committed to working closely with the sector.
Since I took on this job, I have met UK Steel, Community, Tata and Liberty to understand their plans for the future and to explore the support they need to maximise the opportunities that are open to the sector. We are under no illusions that many challenges lie ahead for UK steel producers, but we should not forget, as the Opposition Front Bench spokesperson, the hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss), said, that there are also many opportunities for them in the UK. We have been encouraging the UK steel sector to strengthen its engagement with all existing and potential domestic steel consumers. That will help the sector benefit from the additional £3.8 billion a year by 2030 of high-value market opportunities identified in the research we published in December 2017, and it means that demand is forecast to increase by 3.1% a year in value terms.
The construction and automotive sectors offer some of the most significant opportunities, at £2.2 billion and £300 million respectively. Future demand in those sectors is likely to be for higher grade, higher strength steels, combined with innovative production methods. That raises the need to adapt current production, invest in new capital equipment and make a step change in research and development investment. As part of the automotive sector deal, the automotive sector stated its ambition to increase the share of UK content in the automotive supply chain to 50% by 2022. We have also signed a sector deal with the construction sector, and we expect steel to play an increasing part as we seek to substantially boost that sector’s productivity.
I am grateful for the opportunity to reflect on some of the challenges and opportunities that lie ahead for the sector. As we have offered through the Steel Council on a number of occasions, the Government stand ready to facilitate strategic engagement with other sectors, such as the Automotive Council UK and the Construction Industry Council, to ensure that efforts in the steel industry are targeted at the right market opportunities.
Several hon. Members have talked about research and development. Investment levels in the UK have been too low for too long. The research on future opportunities that I referred to earlier states:
“If the UK steel industry wishes to access these opportunities it will require investment to meet the new capability either from completely new mills, upgrades to existing facilities or R&D in products and services.”
As a proportion of value added in the sector, R&D expenditure has been low and below the average level in the manufacturing sector. It is vital that the level of investment is significantly increased, and we are committed to working in partnership with the industry to help to bring that about.
The Government will support the transformation of our foundation industries, including steel, by providing up to £66 million, subject to industry co-funding, through the industrial strategy challenge fund to develop radical new technologies and establish innovation centres of excellence in those sectors. The aim is to kick-start projects to make those sectors internationally competitive, securing more jobs and greater growth by 2025.
Several hon. Members raised the issue of procurement. We are working hard to ensure that UK producers of steel have the best chance of competing for and winning contracts across all Government projects. As a result of EU public procurement rules in place since 2015, which we negotiated and were the first country to implement, the social and economic impact on local communities, rather than just price and other commercial considerations, can be taken into account when the Government procure steel.
I was proud to sign UK Steel’s procurement charter on behalf of my Department to reaffirm our commitment to making sure that UK steel producers get a fair chance to secure public contracts. As the hon. Member for Scunthorpe said, I have written to the other Government Departments that procure steel to encourage them to do the same, on top of their existing obligations.
The charter is one element. For the first time this year, we published information from Departments and their arm’s length bodies on how much steel they have procured over the last financial year and how they have applied the steel procurement guidelines. Departments have confirmed that, where applicable, they have fully complied with the guidance when procuring steel for their major projects.
We have also published an update of the steel pipeline, which signals the upcoming steel requirements of national infrastructure projects. It shows how the Government plan to procure about 3 million tonnes of steel, worth about £500 million, over the next decade for infrastructure projects such as Hinkley Point C and the upgrade of the UK’s motorway network.
On industrial energy prices, which were mentioned by several hon. Members, I recognise the concern in the Chamber. The ability of our steel industry to compete globally and across Europe is a priority for the Government, and we will provide compensation and exemption support to maintain the UK’s reputation as an attractive location for businesses.
I fear I am running out of time, so, on the energy point, I will just say that, as many hon. Members know, we have supplied £295 million in compensation to energy-intensive industries since 2010, including £53 million in 2018. A £315 million industrial energy transformation fund has been announced, which my right hon. Friend the Secretary of State and I are keen to ensure British industry accesses and benefits from.
On international trade, it remains the express ambition of the Government to leave the European Union with a deal, as has been stated by the two candidates running for the leadership of the Conservative party. We will do everything we can to ensure that unfair trade practices do not adversely affect the industry.
I look forward to continuing to work with all hon. Members present to ensure the continued presence of a dynamic, modern and competitive steel industry in the UK. My right hon. Friend and I will continue to work with all hon. Members to secure a good future for British steel. I conclude by once again congratulating the hon. Member for Scunthorpe on securing the debate and giving us an opportunity to air these issues.
Radioactive Waste: Geological Disposal
Andrew Stephenson Excerpts(5 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
For over 60 years our country has benefited from nuclear technology. It provides clean energy to our homes and businesses and will continue to play an important role as we transition to a low carbon economy. We also have a long history of using radioactive materials to treat and diagnose serious illnesses, to deliver research and development and to help deliver industrial processes. Radioactive waste is created from a variety of sources including electricity generation, defence and healthcare. Most of this waste is low in radioactivity and is disposed of safely every day by skilled nuclear engineers across the country. However, some materials remain radioactive for thousands of years and require more specialised disposal facilities. Currently this waste is held safely in stores above ground. But this is only an interim measure, a permanent solution is needed. Geological disposal is internationally recognised as the safest and most secure means of permanently managing this type of waste.
A geological disposal facility will contribute to the Government’s industrial strategy, which identified the key role the nuclear sector has in increasing productivity and driving clean growth. It is a multi-billion pound infrastructure investment and will provide skilled jobs and benefits to the community that hosts it for more than 100 years. It is likely to involve major investments in local transport facilities and other infrastructure.
I am today laying before Parliament the revised national policy statement for geological disposal infrastructure for the relevant period ending—21 sitting days post lay date—pursuant to section 9 (8) of the Planning Act 2008. At the same time, I am also laying, pursuant to section 9 (5) of the Planning Act 2008, the Government’s response to the Business, Energy and Industrial Strategy Committee and publishing the Government response to the public consultation on the draft national policy statement.
The national policy statement for geological disposal infrastructure sets out the need for such disposal infrastructure to safely and securely manage the UK’s inventory of higher activity radioactive wastes. It provides an appropriate and effective framework for the Planning Inspectorate and the Secretary of State for the Department for Business, Energy and Industrial Strategy to examine and make decisions on development consent applications for geological disposal infrastructure in England. The statement is based on existing Government policy for managing higher activity radioactive waste. This national policy statement sits alongside the “Working with Communities” policy document that was published in December 2018 and sets out the framework for managing this type of waste through geological disposal and the process for how we will work with communities to find a location for this facility. That process is now under way.
A public consultation on the draft national policy statement was undertaken from 25 January 2018 to 19 April 2018 and the statement was also scrutinised by the Business, Energy and Industrial Strategy Committee, which considered written evidence as well as information from oral evidence sessions. I would like to thank the Committee for its very helpful report and recommendations, and also those who contributed to the subsequent debate on this issue in the House of Lords in September 2018.
The Government have considered the consultation responses and the report of the Business, Energy and Industrial Strategy Committee in producing this revised version of the national policy statement.
Copies of the national policy statement for geological disposal infrastructure and Government’s response to the Business, Energy and Industrial Strategy Committee will be laid before Parliament. I am also publishing these documents on the Department’s website, with the Government’s response to the public consultation on the draft national policy statement and the equality analysis for the national policy statement.
[HCWS1688]
Sale of New Petrol and Diesel Cars and Vans
Andrew Stephenson Excerpts(5 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
I pay tribute to all hon. Members who have contributed to today’s debate, especially the mover of the motion, the hon. Member for Hove (Peter Kyle), who eloquently set out the joy of driving an EV and spoke about the Business, Energy and Industrial Strategy Committee’s work in this area; the hon. Member for Nottingham South (Lilian Greenwood), who chairs the Transport Committee and has considerable expertise; and my hon. Friends the Members for Eddisbury (Antoinette Sandbach) and for Rugby (Mark Pawsey), who also played important roles on the Business, Energy and Industrial Strategy Committee inquiry into electric vehicles last year. I am also delighted that the hon. Member for Washington and Sunderland West (Mrs Hodgson) was able to contribute, never missing an opportunity to remind us that the Nissan UK car plant is in her constituency. I will try to address many of the points that were raised in the debate, but given the time constraints, I hope Members will accept that I will have to limit the number of interventions I take in order to allow time for the next —very emotional—debate on assisted dying.
The dangers of climate change are helping to drive a revolution in road vehicles, and everyone who spoke today shares the Government’s ambition that the UK should lead the way. We can all be proud of the fact that on 27 June, the Government set a legally binding target for the UK to achieve net zero by 2050, making us the first major economy in the world to legislate for a net zero target and continuing a proud tradition of leadership when it comes to tackling climate change. Achieving that target will mean working together across political lines and encompassing all parts of society. We will need clear, considered strategies, backed up by action.
Let me be clear from the outset that the Government and I share the ambition of all colleagues from across the House to have all new vehicles delivering as many zero emission miles as possible, as fast as possible. As has been said, the current targets are that by 2040, all new cars and vans will be effectively zero emission; and that by 2050, almost every car and van in the UK will be zero emission. We set out clear steps towards achieving the 2040 target in our strategy “The Road to Zero”, which was published almost exactly a year ago. We believe that 2040 is an ambitious but achievable target, which represents the right balance between environmental ambitions and deliverability, recognising the need for a period in which industry can develop the necessary products and we can address some of the barriers about which hon. Members have talked at length today.
Lilian Greenwood
Does the Minister recognise that it takes 10 to 15 years to replace the fleet completely? If we do not end the sale of new petrol and diesel vehicles until 2040, we will simply not be able to decarbonise transport by 2050. How will he address that issue?
Andrew Stephenson
I will come on to that, but I think we are making good progress on a range of fronts, although significant barriers remain. Our wider commitments on climate change have been bold, and we have achieved a faster reduction in our carbon emissions than any other country in the G20 has done. There is no reason why we cannot go faster than the targets that we have set ourselves. Meeting those targets requires an adequate supply of ultra low emission vehicles, a strong consumer base and a fit-for-purpose infrastructure network.
Government cannot deliver our ambitions alone. At the heart of our strategy is a commitment to working in partnership with industry, business, academia, environmental groups, devolved administrations, local Government, consumers and international partners. We need new charge points in homes, workplaces and public places. The consumer experience of public charging needs to be improved. The system must be easy to use, affordable, efficient and reliable. That is why we passed the Automated and Electric Vehicles Act 2018, which allows us to regulate further in this area; that is why on Monday the Prime Minister asked OLEV to undertake a review, setting out our vision for a core national network of rapid charge points along the country’s key roads; and it is why we are encouraging people to charge at home overnight, both on and off street.
On Tuesday this week, I attended a roundtable convened at 10 Downing Street with companies such as Jaguar Land Rover, LEVC, Tesla, PSA and the National Grid to discuss how we can best build on our core infrastructure network for electric vehicles in the UK. Those who were present were supportive of Government schemes, such as the up-front £500 off the cost of installing a domestic charge point; the provision of grants to businesses for workplace charge points; and the provision of grant funding to local authorities to install charge points for residents who lack off-street parking. We accept that we need to go further and faster; for example, by ensuring that all new homes are electric vehicle ready. We will soon consult on requiring every new home to have a charge point where appropriate.
We are already in a strong position. Government funding and leadership, alongside private sector investment, has supported the installation of more than 20,000 public charge points to date. That includes more than 2,000 rapid charge points—one of the largest networks in Europe. We want to build on that and encourage private sector investment to build and operate a self-sustaining public network.
Overall, we are investing nearly £1.5 billion between 2015 and 2021 to support ultra low emission vehicles and address the barriers to uptake. As the hon. Member for Birmingham, Northfield (Richard Burden) mentioned, we have grants available to offset the up-front cost of ultra low emission vehicles, which currently cost more than petrol or diesel equivalents. As an incentive to make the switch, our plug-in grants offer up to £3,500 off the purchase price of an electric car, up to £7,500 for a taxi and up to £8,000 for a van. We are also funding the development of new cleaner technologies. With £300 million of funding from OLEV, we are supporting vehicle manufacturers, technology companies and academia to deliver a major programme of research and development in the UK.
I am pleased to say that a year on from the publication of our strategy “The Road to Zero”, we are making progress against our ambitions. In 2018, the UK was the second largest market in the EU for ultra low emission vehicles, and there are now more than 200,000 of them on our roads. We are also building in large numbers—last year, one in five electric cars sold in Europe was made in the UK—and I am proud to say that Europe’s best-selling electric vehicle, the Nissan Leaf, was made in Sunderland, as the hon. Member for Washington and Sunderland West mentioned.
Let us not forget that this sector is hugely important to the UK economy: with a £77.9 billion turnover, it directly employs 165,000 in manufacturing alone. As someone from the north of England, that is particularly important to me. Manufacturing is still a major employer in my constituency, with companies such Wardle Storeys, part of Uniroyal Global, employing more than 150 people in Earby, making automotive components. That is why I am keen to see the industry’s rapid evolution, rather than revolution, supported by our automotive sector deal, which was published last year. As I speak, the Automotive Council, which I would have attended were it not for this debate, is meeting just down the road.
It has been a real privilege of my role to see at first hand some of the technologies and innovations that are already delivering for us on the Road to Zero. Just last week, I visited the BMW Mini plant in Oxford, and I have also visited Bentley in Crewe; the Advanced Propulsion Centre in Coventry, where I got to sit in—they would not let me drive it—the first all-electric Aston Martin, which will be built in St Athan, south Wales; and McLaren in Wokingham. We are supporting innovation in the sector, with the Advanced Propulsion Centre, the Faraday battery challenge and the connected and autonomous vehicles programme, focusing on the key technologies that will drive the global transition to low-carbon mobility and form the basis of future vehicle supply chains in the UK.
Battery technologies are of course integral to the market, which is why we have committed more than £270 million to the Faraday battery challenge, to ensure that the UK builds on its strengths and leads the world in the design, development and manufacture of electric batteries. In May, I announced additional funding for the UK Battery Industrialisation Centre in Coventry, a project in which we have so far invested more than £100 million and which will provide a stepping stone in our ambitions for a gigafactory in the UK. The Government and industry have committed around £1 billion over 10 years through the Advanced Propulsion Centre, to fund the research, development and commercialisation of the next generation of low-carbon technologies and keep the UK at the cutting edge of low-carbon automotive innovations.
We have reached the tipping point with the ULEV market and made a strong start on the Road to Zero, but we cannot be complacent. The closer that we can work together across Government, manufacturers, innovators and industry, the quicker we can make that transformation and allow future generations to enjoy the benefits of cleaner air, low carbon emissions and a thriving low emission automotive sector.
Mark Pawsey
Will the Minister comment on the fact that a new motorway service area is going to open with just two charge points? What can we do to accelerate the provision of charge points?
Andrew Stephenson
That is another shocking example. In the Road to Zero strategy, a copy of which I can lend to my hon. Friend, the Government announced that we would look into the best options for ensuring the adequate provision of electric-capacity connections at motorway service areas, and that work is under way. The key task over the next year is to sustain and strengthen our collaboration in the sector, as we stride towards our ambitious emissions targets for road vehicles and beyond.
Question put and agreed to.
Resolved,
That this House calls on the Government to bring forward the date by which the sale of new petrol and diesel cars and vans will be ended.
Implementing Geological Disposal
Andrew Stephenson Excerpts(5 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
In 2010 the UK Government committed to report on progress in implementing geological disposal in response to a recommendation by the House of Lords Science and Technology Committee. Geological disposal is the Government’s policy for the long-term management of the higher activity radioactive waste that has accumulated over many decades through the use of nuclear technology in industry, medicine and to generate clean electricity. Today the Government are publishing their eighth report.
In December 2018, the Government published, “Implementing Geological Disposal: Working with Communities”, which sets out the policy framework for the future implementation of geological disposal. This also signified the launch of a new process to identify a suitable location for a geological disposal facility in England. The Welsh Government launched a similar process in January 2019. Scotland and Northern Ireland are not participating in the geological disposal programme.
The commitment to report to Parliament on progress on implementing geological disposal was made in relation to a previous siting process which ended in 2013. Since then the Government have carried out a full policy review and with the launch of the new siting process are now implementing this new policy.
Moving forward, Radioactive Waste Management Ltd, the delivery body for the GDF, will provide more focused reports on the progress of the siting process to replace these annual reports.
I will place a copy of “Implementing Geological Disposal: Progress Report” in the Libraries of both Houses.
[HCWS1663]
Bank Holidays in 2020
Andrew Stephenson Excerpts(5 years, 6 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
May I echo your comments about the new Assistant Serjeant at Arms, Mr Deputy Speaker? I wish to start by congratulating my hon. Friend the Member for St Ives (Derek Thomas) on securing this important debate and on his interesting and informative speech, which covered everything from morris dancers to bikers. I also thank other Members for their interventions, particularly the hon. Member for Strangford (Jim Shannon), who never misses an Adjournment debate. I would be delighted to hear more about his expertise at bonfires. [Interruption.] Indeed, not in this building.
I share the views expressed in the House that VE Day is an important opportunity to reflect on the sacrifices of a generation. The Government believe it is important to commemorate the sacrifices made by our servicemen and women in the second world war on the 75th anniversary of VE Day, as we did for the 50th anniversary in 1995, when there were celebrations and street parties across the UK. My hon. Friend talked so eloquently about that.
Moving next year’s early May bank holiday to VE Day itself has been seen to be a right and fitting tribute to our heroes of the second world war. The sentiment of celebrating on VE Day itself cannot be monetised for the veterans who served in the war. The Government gratefully acknowledge the responsibilities that our country’s armed forces assume on behalf of the UK Government and our people.
Hugh Gaffney
While we respect the men who fought for us and gave us our freedom today, we must also remember that there is a traditional May Day. So this is not about moving it; it is about keeping both of them. Workers have a traditional May Day holiday, celebrated every year, in the exact same way as the men who went to war.
Andrew Stephenson
If the hon. Gentleman bears with me, I will come to address that point.
The sentiment of celebrating VE Day is something that everyone in this House would agree with. As well as marking the allies’ great victory in 1945, the bank holiday on Friday 8 May is an opportunity to pay tribute to members of the UK armed forces who have served and continue to serve our country to this day. On this historic occasion, the Government want to ensure as many people as possible have the valuable opportunity to pay a fitting tribute. This is part of a wider package of celebrations the Government have supported, including the commemorations to mark the 75th anniversary of D Day, which recently took place across the UK. The 75th anniversary of VJ Day is also a significant commemoration in its own right and will be marked appropriately.
My hon. Friend has been a consistent champion of the tourism sector, which thrives in his constituency, drawing from his own experience of running a small business. Since his election to this House, he has prioritised supporting small business owners. Having served as a district and parish councillor, he has shown a deep commitment to his local community through his work at Westminster. I recognise that the Government’s decision to move the bank holiday from Monday 4 May to Friday 8 May next year will have an impact on the impressive May Day festival in his constituency, which I believe dates back to 1573.
Tourism has driven development in my hon. Friend’s constituency over the past 150 years and is an essential part of the area’s day-to-day life, impacting significantly on the economic activity of the local community. An estimated 2,850 jobs in St Ives are supported by visitor-related spending and 42% of jobs directly depend on tourism, so I understand the importance of this sector to his local area. These celebrations will have others like them across the country, and reorganising them will be a real challenge. I hope that plans can be adapted during the next 11 months to ensure minimal disruption. I also hope that other events planned may benefit from the change; I particularly hope that the St Ives literary festival, which begins only a day after the VE Day bank holiday next year, will attract even more tourists, due to the long weekend.
As we have heard, there are additional impacts on other specific sectors and planned events throughout the country. As we are moving the bank holiday rather than creating an additional one, we anticipate that the overall cost to business will be relatively low, but I genuinely recognise that the benefits and costs will vary from area to area and from sector to sector.
Jim Shannon
In my intervention on the hon. Member for St Ives (Derek Thomas), I referred to the massive £200,000 cost to a calendar business. Does the Minister have an idea of how we can help to compensate that business in some way for its massive loss? That small business cannot absorb that cost.
Andrew Stephenson
I think I have read about that example in the newspapers. It is obviously a significant blow to that business and something that I feel is regrettable. I wish the decision could have been made in a more timely fashion and do genuinely appreciate the concerns expressed by firms throughout the country. As I shall say later in my speech, the impact on different sectors of the creation of an additional bank holiday, of which there would be even shorter notice, could have an even bigger impact on our economy and on some businesses. I appreciate some of the concerns expressed about this decision, but we need to strike a balance in our approach to the creation of additional bank holidays.
Let me reflect on some more of the points that my hon. Friend the Member for St Ives made about the importance of small business. First and foremost, we need to ensure that the decisions the Government take reflect the needs of small businesses, because small businesses are the backbone of our economy. In 2018, small and medium-sized enterprises accounted for 60% of UK private sector employment and had a combined annual turnover of £2 trillion. We try to support small businesses through my Department’s industrial strategy, and on an almost weekly basis I meet the Federation of Small Businesses and the British Chambers of Commerce to hear about their concerns and how we can best support them.
In May, the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst), who is responsible for small business, held the first ever small and microbusiness engagement call, to allow the Government to engage with hard-to-reach businesses. The next call will be on Monday, alongside the regularly scheduled SME advisory board meeting.
I appreciate what my hon. Friend the Member for St Ives said about the Department having a tin ear on this issue, but I reassure him that we regularly engage with businesses small, medium and large throughout the country. I have been in post for only two months, but in the past month I visited 22 businesses throughout the UK, from Kent to Derby and up to Burnley—I had to do some visits in Lancashire, Mr Deputy Speaker.
The Government are proceeding rapidly with discussions with the industry to deliver a tourism sector deal. Ten sector deals are currently part of our industrial strategy, and I very much hope that the 11th will be a tourism sector deal, which we hope to launch in the coming weeks. The deal will look to harness the opportunities that the UK has to offer and further boost our tourism sector.
My hon. Friend asked about parents having booked holidays on the date of the original bank holiday, which will now fall as a school term day. As I understand it, it is within the gift of headteachers to grant permission for children to be absent during term time, under exceptional circumstances. Given the rationale behind the moving of the bank holiday, a compelling argument could be made that the circumstances are indeed exceptional.
I accept that the decision will have a negative impact on some people, but moving the bank holiday remains a right and fitting tribute to mark such a watershed moment in our nation’s history.
Andrew Stephenson
Let me continue a little.
As my hon. Friend the Member for St Ives acknowledged, we all know the history: in Cornwall, 4,786 casualties were identified as the result of world war two, including the deaths of 54 sets of brothers and nine sets of fathers and sons. I expect that the people of St Ives will understand the importance of honouring those who served in the war, as my hon. Friend rightly said, and pay tribute to the brave people of Cornwall who served or laid down their lives in conflict.
In the light of the lateness of the decision, my hon. Friend asked the Government to create an extra bank holiday to avoid disruption. The Government regularly receive requests for additional bank and public holidays to commemorate a variety of occasions, such as cultural history and military and religious events. My ministerial colleague, the Minister for Small Business, took a House of Commons petitions debate introduced by the hon. Member for Linlithgow and East Falkirk (Martyn Day) relating to holding public holidays on religious occasions last year, in which the merit of bank holidays for important religious occasions, such as Eid and Diwali, was debated.
It is the duty of any responsible Government, however, to judge impacts on the overall economy and the economic impacts on all sectors. Although an additional bank holiday may benefit some people and some sectors—my hon. Friend made a good point about the benefit it certainly has for our pub sector—the cost to the economy of an additional bank holiday is considerable. The impact on the economy of the one-off bank holiday for the Queen’s diamond jubilee in 2012 was estimated at £1.2 billion. The cost falls heaviest on the manufacturing sector, with the burden being twice as big as that on the service sector. We need to take into account not just the fact that there are different impacts on different sectors—some gaining and others not—but the size of those impacts. The Government considered these issues carefully and it was judged that moving the bank holiday, rather than creating an additional one, is the most appropriate way on this occasion following the precedent set by the 50th anniversary.
Friday 8 May next year will be a valuable opportunity for people across the UK to take time to commemorate the historic occasion of victory in Europe and pay tribute to those who sacrificed their lives in the second world war on behalf of us all. I thank my hon. Friend for allowing me the opportunity to discuss the Government’s position on the significance of bank holidays in 2020.
Question put and agreed to.
Oral Answers to Questions
Andrew Stephenson Excerpts(5 years, 6 months ago)
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Andrea Jenkyns (Morley and Outwood) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
In the Leeds city region, 66 businesses in Morley and Outwood have been directly supported, with £1 million in grant funding to help them create nearly 200 jobs. The AD:Venture initiative, which is available to start-ups in the first three years of trading in the Leeds city region, provides grants of up to £25,000. That is alongside a range of other support including academic support and coaching.
Andrea Jenkyns
My hon. Friend will know that in 2017 the UK was the second biggest market in the EU for ultra low emission vehicles. Alfa Power, a company in my constituency, is a fine example of British engagement in the sector. What steps is he taking to further the sector’s progress? Next time he is in Yorkshire, will he visit Alfa Power to see the great work it is doing in electric charging points throughout Yorkshire?
Andrew Stephenson
I should be delighted to visit. The Government are investing nearly £1.5 billion until March 2021 to help to grow the market for ultra-low-emission vehicles. Yesterday I was pleased to announce £33 million of funding for the winners of the Advanced Propulsion Centre’s 12th competition. These latest projects focus on electrification and the future of low-emission vehicles as we aim to advance the UK’s low-carbon capacity.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I am sure that the members of the ministerial team know that Huddersfield and Morley and Outwood are part of the dynamic Leeds city region, but are they aware of the Power Up The North campaign, which was launched this week? It needs to receive a lot of interest. It is intended to help small businesses to grow even faster and go further in our northern constituencies. Will the Minister put his efforts behind it?
Andrew Stephenson
I am delighted about the Power Up The North campaign. I wholeheartedly support it, and I am very pleased that my Department has been bolstered by the addition of the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), who will help to further our work on the northern powerhouse. The Government are investing £694 million in the Leeds city region through growth deals, creating up to 10,000 jobs, allowing more than 2,000 homes to be built, and creating up to £640 million in public and private investment.
Emma Hardy
Thank you, Mr Speaker. May I draw the Minister’s attention to Hull, one of the great cities that are part of the northern powerhouse? He is aware of the appalling way in which some of the people working for Grotto Hire have been treated—those who were not paid over Christmas. I have met the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Rochester and Strood (Kelly Tolhurst), to discuss the issue. What has the Department done to try to recover that money since our last meeting?
Andrew Stephenson
I know that the hon. Lady has discussed the issue with my ministerial colleague. I am not dealing with it personally, but I should be more than happy to have a conversation with my hon. Friend about it and come back to the hon. Lady.
Bill Esterson (Sefton Central) (Lab)
The British Retail Consortium has reported that the high-street footfall is at a six-year low. Town centre businesses across the country are closing. Labour has a five-point plan to reinvigorate our high streets, in stark contrast to the Government’s worn-out platitudes and failure to act. Precisely when is the Minister going to produce a plan—or will the Government just keep walking by on the other side of the high street?
Andrew Stephenson
John Timpson has produced a plan for the Government, and in successive Budgets we have announced record support for the high street. There is £1.6 billion to help with business rates, and an additional £675 million for the future high streets fund.
Mr Stephen Hepburn (Jarrow) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
I regularly speak with a range of steel companies. Since 2013 the Government have provided more than £291 million to the steel sector for the costs of renewables and climate change policies, including over £53 million compensation during 2018.
Julian Sturdy (York Outer) (Con)
Tom Pursglove (Corby) (Con)
The excellent new Minister has been a strong supporter of the new UK steel charter. Will he update the House on the progress he has made in getting it adopted across Government?
Andrew Stephenson
I thank my hon. Friend for his question. After signing the UK steel charter on behalf of my Department, I have written to several other Departments, encouraging them to support this excellent initiative.
Rachael Maskell (York Central) (Lab/Co-op)
Only a fifth of York Central development is earmarked for economic development, which will seriously curtail the opportunities for business growth, inward investment and good jobs for York. Following my discussions with the Minister and stakeholders, will he consider a new proposal for York Central?
Mineworkers’ Pension Scheme
Andrew Stephenson Excerpts(5 years, 6 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
I would like to start by paying tribute to all hon. and right hon. Members who have contributed to today’s debate, and to the many emotional and passionate speeches reflecting the importance of this issue. This is a question about real people and their incomes. It is about real people who have done some of the hardest work in our country, and about the respect and loyalty owed to them by their Government.
This subject is really important to me because, like many of those who have spoken today, I have a strong family connection. My family worked in the pits in the north-east for generations. My grandfather, George Stephenson worked at the Windlestone colliery in County Durham, following in the footsteps of his father, John. My uncle Bert worked at the Dean and Chapter colliery and then at the Mainsforth colliery. My great aunt Daisy and great uncle Tom spent most of their working lives at the National Coal Board in Team Valley in Gateshead. I grew up with stories of hard work, tough times, soot black baths and three pints after a hard day’s work because you could not taste the first through all the coal dust.
The Whips are rarely mentioned in this place, but the Business, Energy and Industrial Strategy Whip, the Lord Commissioner of Her Majesty’s Treasury, my hon. Friend the Member for Castle Point (Rebecca Harris), is on the Front Bench this evening. Her grandfather worked in the mines and her great-grandfather was in charge of the pit ponies at Boldon colliery in County Durham, so we both have strong links with the mining industry. I know that the same goes for one of my predecessors in this role, the Minister for Energy and Clean Growth, my right hon. Friend the Member for Devizes (Claire Perry). Her connections to mining communities were so strong that she had to pass responsibility for their pensions over to me.
Stephanie Peacock
The Minister refers to his predecessor. In my Adjournment debate back in February, she agreed to a meeting with me, coalfield MPs and the trustees, but unfortunately, despite several emails, that meeting never happened. Will the Minister commit today to a meeting with us?
Andrew Stephenson
I am always happy to meet anybody, and I am more than happy to meet people who have asked for meetings today. I believe that my predecessor, my hon. Friend the Member for Watford (Richard Harrington), who took on responsibility from my right hon. Friend the Member for Devizes, did have a meeting, but I am always happy to have further meetings on this topic or any other.
I was just going to clarify that the connections of my right hon. Friend the Member for Devizes were so strong that she had to pass over her responsibility for this topic. Her mother-in-law is a beneficiary of the scheme that we are discussing today. Her mother-in-law’s late husband, Bill O’Neill, was a leader of the coke workers union and I understand that he died very young as a result of his years of service underground. At the age of 16, my right hon. Friend’s husband turned down a job in the Keresley pit, but that did not stop him helping to organise port blockades to prevent Polish imports while he was a student, and getting into trouble with his university to protect—in his view—British coal. It is because we appreciate the importance of fairness to mining communities that my right hon. Friend the Member for Devizes, when she was in post, dedicated a considerable amount of time to this issue and instructed officials to do the same. She spent time understanding the arguments and concerns of all sides, thinking and talking through alternative proposals and weighing up the merits of the cases presented.
It has been four months since the last Adjournment debate on this matter. Since then, my right hon. Friend the Minister for Energy and Clean Growth has met the scheme’s trustees, and my predecessor as business and industry Minister, my hon. Friend the Member for Watford, has met campaigners and coalfield MPs. Officials have also met the scheme’s trustees. For my part, even though I have been in post for only two months, I have taken an interest in this debate not just because of my family background, but because a number of the right hon. and hon. Members who have spoken today have collared me in the corridors since my appointment.
I have reviewed the trustees’ proposals, which my officials have been considering for some time, and I wrote to Her Majesty’s Treasury last week giving them my full support. I will be meeting the chair of the trustees, Chris Cheetham, on 24 June. Central to the trustees’ proposals is protecting existing bonuses. Under that option, if there is a deficit in the future, members will still see their guaranteed pensions continue to rise in line with RPI, and their current bonuses will not be eroded. Without that additional guarantee, members may not be able to get any increase in payment, possibly for many years. The proposals put to my predecessor by the trustees offer benefits to all pensioners, who will see their pensions secured into the future, even if the scheme was to go into deficit, by protecting the bonuses that have accrued to date. The trustees, who include former miners, believe that that is an important way of protecting future revenues for scheme members in the event of a future scheme deficit, because bonuses accrued at past evaluations could be eroded.
The trustees’ proposals would mean a significant additional liability for the Government. In turn, that creates an additional risk of a sizeable call on the public purse. However, I support the trustees’ aim to protect the revenues of individual pensioners. My officials have provided an analysis of the proposals, which I have now shared with Treasury colleagues. As I have said, I am dedicated to the best for miners across the country, which is why I am immensely proud of the scheme and of the investments that we are making to transform mining communities across the country.
Ian Lavery
I agree that this has been a fantastic debate, with everyone who participated believing that justice should be done for the mineworkers. Will the Minister say whether the trustees’ proposals include a review of the 50-50 split?
Andrew Stephenson
They do not. There are six proposals, which I have written to the Treasury about, and the trustees felt that protecting existing bonuses earned is more important than a review of the 50-50 split at this time.
Edward Miliband
The motion states:
“That this House calls on the Government to carry out a review of the existing arrangements for the sharing of the surplus generated by the Mineworkers’ Pension Scheme.”
As I understand it, the Government will not vote against the motion, so will the Minister tell us what he is going to do after the motion passes, because it calls for precisely such a review?
Andrew Stephenson
As I just said, I will be meeting the trustees, and their proposals relate to six points, about which I have written to the Treasury to share my analysis.
Edward Miliband
But this House is about to pass a motion agreeing to a review, so the Government are going to have to do something about that. That is the point, and I think we would all be interested to know what the Minister intends to do.
Andrew Stephenson
I am setting out my Department’s position. Whether a review is undertaken is a matter for the Treasury, and the Treasury’s position was set out in a letter from the Chief Secretary to the Treasury to MPs on 14 May. That position has not changed. I am sure that the Chief Secretary to the Treasury and other colleagues in that Department will want to reflect on any motion passed by this House, but I am trying to update the House in response to the Opposition Front-Bench spokesman, who asked what the Government were doing about the proposals that had previously been under discussion—the proposals that have been brought forward by the scheme’s trustees.
The proposals have been considered for several months. They are balanced, and I support them. With the support of my Department, I have formally written to the Treasury to say that we support the proposals, because the trustees have identified that protecting already accrued bonuses is more important than the 50-50 split.
Alan Brown
The Minister seems to be saying that the proposals being considered are from the trustees and they have not proposed any changes to the 50-50 split. Is it not the case that the trustees have said today that the Government are not willing to discuss a change to the 50-50 split? Is he saying that he thinks it is fair to maintain that 50-50 ratio?
Andrew Stephenson
The trustees have made it clear that protecting bonuses already accrued is their priority, rather than renegotiating a greater share of future surpluses. I have not met the trustees, and I have already given the House the date when I will be meeting them. I have seen the six proposals from the trustees, which have been considered by my predecessor and his predecessor, and I acted swiftly in my first two months in office to ensure that my Department supports those proposals and will write to the Treasury encouraging their adoption.
Stephanie Peacock
The trustees’ proposals are important. However, speaking to that is a red herring and does not answer what this debate is about. Every single person who has spoken in this debate has talked about the 50-50 split. Will the Minister please get up and answer that point?
Andrew Stephenson
I certainly will. I think I have only two minutes left, and I was going to come on to exactly that point. I was addressing the question of what has been done to date.
I began by saying that we owe the miners loyalty and respect, which includes being honest. In this case, the honest answer is that the current position, whereby the Government guarantee arrangements and split the surpluses, is a fair settlement. It is reflected in the fact that successive Governments of all political persuasions have retained the split currently in place.
Helen Goodman
On a point of order, Mr Speaker. Surely the Government cannot ignore a motion passed by the whole House following a Backbench Business Committee debate.
Mr Speaker
The short answer is that that is not a point of order, but it is open to the Government to do that. Whether it is politically wise is another matter. In the event that Members are disappointed, I feel sure they will trouble the Backbench Business Committee for further debates, which may continue ad infinitum. I am sure the Minister would not want to countenance such an unfortunate, even grisly, scenario.
Andrew Stephenson
Thank you, Mr Speaker. The guarantee gives recipients security because, of course, they know future outcomes can never be known. As referenced earlier, my right hon. Friend the Chief Secretary to the Treasury has responded to the letter from the hon. Member for Blaenau Gwent (Nick Smith), sent on behalf of a cross-party group, by saying that she will not be reviewing the current arrangements.
I believe that all of us here today are united by our commitment to fairness for our miners and mining communities. Although we may be divided on the best way to deliver that, I can assure the House that I will seek to agree changes to the scheme that benefit scheme members and protect taxpayers.
Industrial Strategy: North-East of England
Andrew Stephenson Excerpts(5 years, 6 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)
It is a pleasure to serve under your chairmanship, Mr Betts. I congratulate the hon. Member for North Tyneside (Mary Glindon) on securing the debate. I thank hon. Members, who have given very considered and generally good-natured speeches.
I will now start to get controversial. My father was born in Shildon, County Durham, which is of course the home of the railways, and I still have family living in Wylam, Northumberland, which is the birthplace of George Stephenson, the father of the railways. He did much of his pioneering work in Killingworth, in the constituency of the hon. Member for North Tyneside. I am delighted that his work was mentioned by the hon. Member for Sedgefield (Phil Wilson), but I will not pass judgment on where the first ticket office was. Sadly, even though I am Andrew George Stephenson and my family descend from that part of the world, I cannot claim to be a descendant of the great man, because George Stephenson had only one son, Robert, who had no children. If we look far back enough, though, who knows?
My father’s first job in the north-east was for British Rail in Shildon, before he moved permanently to Manchester, where he worked in the aerospace sector for Avro, the famed manufacturer of the Lancaster and Vulcan bombers. I know that the pride my family felt at working in vital industries across the north-east of England is still deeply felt by people in the region today.
Our industrial strategy is about ensuring that that heritage of excellence is translated into future success and prosperity. We want to grow productivity and prosperity across all parts of the country, so that whenever young people decide to leave a place such as Shildon for opportunities elsewhere in the country, they do it through choice and not because they feel forced out by a lack of chances closer to home.
As we have heard, the north-east has a proud tradition of innovation, creativity and technical skills. We know that from the histories of railways, mining, shipbuilding and electronics, as well as from today’s leading businesses in the region, such as the cutting-edge offshore energy companies that have moved into the region’s old shipbuilding areas and one of the world’s most productive automotive clusters, based around Nissan. The industrial strategy is about taking that existing strength and blending it with the future-facing technologies and skills that emerge from our knowledge-intensive centres, such as those at Newcastle’s £350 million Helix site, Sunderland’s Software City or Durham’s NETPark.
The industrial strategy focuses on strengthening the foundations of productivity: skilled people, thriving places, ideas, innovation and support for the business environment. The industrial strategy is also about taking on the grand challenges of clean growth, the future of mobility, our ageing society, and artificial intelligence and data. Those are society-changing opportunities and industries of the future in which the UK can build on its strengths and truly lead the world.
Since the publication of the industrial strategy, we have made significant progress across the country. We have committed to the biggest ever increase in R&D, an extra £7 billion by 2021-22, which includes the £1.7 billion that we have already allocated to innovative programmes to support industries and researchers through the first two waves of the industrial strategy challenge fund.
The first wave of the strength in places fund, which supports industrial strategy with a place-based approach to research and innovation, has awarded seedcorn support to two north-east projects to enable them to develop full bids this year: the Centre of Excellence for Sustainable Advanced Manufacturing, led by the University of Sunderland; and the north-east cluster for healthy ageing and independent living, led by Newcastle University. In the neighbouring Tees Valley, strength in places support has been awarded to a project to establish the UK hydrogen corridor, which aims to reduce carbon usage dramatically by producing, using and storing hydrogen energy.
Alex Cunningham
Any investment in the north-east is great news, in particular if it encourages innovation, but does the Minister also recognise that we need to support our existing industries? British Steel is a particularly important one at this time. As I asked in my remarks, will he update us on his understanding of the progress being made in that area?
Andrew Stephenson
Certainly. I am grateful to the hon. Gentleman for raising the issue of British Steel. Since I was appointed, it has probably been the one thing that has taken up more of my time than anything else. The one point of contention in what he said was his suggestion that the Government were standing on the sidelines as British Steel went into liquidation, waiting for the receiver to act.
The hon. Gentleman was in the main Chamber when I answered an urgent question by saying that no stone was being left unturned. At that point, I think that the Department was up to 87 meetings about British Steel. The £120 million bridging loan that we extended to the company earlier in the year showed the Secretary of State’s willingness to think innovatively and to act with regard to British Steel. We considered all sorts of proposals made by the company but, unfortunately, none of them proved compliant with state aid rules—we took legal opinion on that—so the company went into liquidation.
The Government acted immediately by providing the liquidator with an indemnity for the cost of keeping the site running, so that the blast furnaces could be kept running and we would end up with British Steel in the best possible situation to be sold as a going concern. The very next day after the Secretary of State made his statement to the House about the unfortunate news of the liquidation, he and I went up to Scunthorpe to meet trade union representatives and other people on the site to discuss how to work together to ensure that it could be sold as a going concern. I remain hopeful that that will be the case, and I will continue to leave no stone unturned, working with the trade unions, the workers and others on site to ensure that it is sold as a going concern.
Alex Cunningham
I might have been a little unkind to the Minister—that is a hell of a lot of meetings—but talking does not get us far when real funding is needed. If this integrated part of the steel industry cannot be sold as a going concern, just as we nationalised the banks, will the Minister consider nationalising part of the steel industry, even on a temporary basis, to ensure that we do not lose this critical foundation industry?
Andrew Stephenson
I think that I am correct in saying that the Secretary of State has not ruled that option out. However, the thing to bear in mind about nationalisation is that, even if British Steel were nationalised, the same state aid rules apply: the company has to be run on a commercial basis in order to be compliant with those rules. Therefore, nationalisation is not a simple solution; it might be the solution, but it is not an easy option.
Lots of steel companies in the UK and across Europe are doing great work, and I hope that we can find an experienced company in the sector that wants to invest in British Steel. If we look at the steel sector pipeline—orders and infrastructure projects across the UK, such as Hinkley Point, High Speed 2 and various other big projects—there is sizeable domestic demand for products made by British Steel. I think that the company has a strong future. I am therefore very hopeful that over the coming weeks and months we will find a good buyer who will want to invest in the site and, most importantly, its workers who have such skills and knowledge of the industry, to ensure the future of steelmaking in that part of this country.
Chi Onwurah
I thank the Minister for responding to questions about the key strategic asset of British Steel and of that capability. He cited state aid rules as a crucial concern in providing the right level of financial and other support. Does he agree that different countries interpret state aid rules in different ways? Other countries within the European Union have been, shall we say, far more innovative, creative and supportive with their strategic industrial capacities, despite the same state aid rules environment. Will he commit to publishing parts of the legal advice on the possible infringement of state aid, so that we can see whether there is a way to provide British Steel with the support it requires within the European Union and, indeed, World Trade Organisation state aid rules, which other countries do manage to achieve?
Andrew Stephenson
The shadow Minister makes a valid point about the interpretation of state aid rules. The challenge of the rules in relation to the steel sector is that they are particularly rigid. A lot of the global overcapacity was created by illegal subsidies around the world for domestic steel producers.
We received legal advice from within the Department and, on the Secretary of State’s instruction, we sought a second opinion, because we wanted to ensure that there was definitely nothing more that we could do. The accounting officer’s advice has, I believe, been laid in the Libraries of both Houses, so it is available to all hon. Members who wish to see it. I hope that it sets out how the Government looked at the issue in a detailed way.
The reason I mentioned the 87 meetings is that we were meeting morning, evening and night about it, in order to find a way through. The Secretary of State, whom I have the pleasure of working with and serving under, has a real commitment to the north-east. Originally, he is from that part of the world, and he really wants the British Steel site to remain a going concern. Through the number of meetings he has had, the £120 million bridging facility provided to the industry and other things, he clearly demonstrates a commitment to finding a way through, but it has to be legal and compliant with both UK domestic law and EU law. I look forward to continuing to work with him, hon. Members in all parts of the House, trade unions and others to ensure a future for British Steel.
Returning to research and development spending, we have committed record investment in UK infrastructure: £37 billion has been committed through the national productivity investment fund, including £2.5 billion for the transforming cities fund to improve transport, £5.5 billion for the housing infrastructure fund and £740 million for digital infrastructure. That infrastructure investment has been of direct relevance to the north-east of England. In March, the Government announced that £10 million from the first tranche of the transforming cities fund will be allocated to the north-east, and £35.9 million of housing infrastructure funding has been allocated to the region.
Aside from that national work, all places will produce local industrial strategies, setting out how the quest for prosperity will come to life in our cities, towns and rural areas. The first local industrial strategy was published on 16 May in the west midlands. I was delighted to join local councillors and others in Coventry to launch that strategy. The north-east and the Tees Valley areas are both in the second wave of places to produce their own local industrial strategies in collaboration with Government. In the area of the hon. Member for North Tyneside, that work is led by the North East local enterprise partnership, which has a strong history of evidence-based delivery and is well placed to develop a powerful and distinctive local industrial strategy for the region. So far, a number of critical local drivers have been identified to improve productivity in the north-east: from the need to grow small businesses and to improve start-up rates, to improving the skills base of the local workforce.
The north-east boasts a cutting-edge technological and knowledge economy, based on its four leading universities and its fast-growing digital and tech sectors. On the doorstep are tremendous opportunities in east coast offshore energy, as well as deep expertise in advanced manufacturing. I am particularly interested in the contribution that the area could make to the ageing society grand challenge, which was cited by the hon. Member for Washington and Sunderland West (Mrs Hodgson). The north-east is home to the £40 million National Innovation Centre for Ageing, which reflects Newcastle University’s longstanding leadership in that field. There is a powerful story to tell about how the north-east, with its large rural area and expertise of the transition away from heavy industry, is ideally placed to lead the response to this national and global challenge.
The north-east local industrial strategy will be empowered by the recent North of Tyne devolution deal, which covers three north-east authorities: Newcastle, Northumberland and the home authority of the hon. Member for North Tyneside. I congratulate the three councils on their successful pursuit of devolution, and Jamie Driscoll on his recent election as the first North of Tyne Mayor. The Government have a strong track record of working with the elected mayors, including Ben Houchen in Tees Valley. Alongside specific powers such as control over the adult education budget, the deal includes a total investment fund of £600 million over 30 years, to be used by the area to pursue its local growth goals. Local estimates are that the investment will generate £1.1 billion for the local economy and create 10,000 new jobs.
The north-east local industrial strategy will build on a strong track record of investment in the wider North East local enterprise partnership area. Over the three rounds of the local growth fund, £379.6 million will be invested in the North East LEP area. That includes £1 million for the Ignite centre for engineering and innovation in North Tyneside. I look forward to visiting the north-east and Tees Valley—shortly I will visit the Centre for Process Innovation, which has bases in both areas. That centre has a strong record of collaboration with Government, including a £38 million grant from UK Research and Innovation to establish a national biologics industry innovation centre in Darlington.
Alex Cunningham
I am sure we will welcome the Minister when he comes to the Tees Valley. Will he bring some good news on carbon capture, use and storage?
Andrew Stephenson
I am very keen to see the UK move forward with carbon capture, use and storage. The hon. Gentleman will be aware of the report by the Committee on Climate Change, which suggested that we could move towards a target of net zero in the same cost envelope as our current target. It says that carbon capture and storage has to be part of the mix. That will accelerate what the Government are doing in this area. I will certainly pass on remarks from today’s debate to the Minister for Energy and Climate Change, as I am sure she will want to focus on this area. When I am in the region, I will be keen to see some of the work in the renewables sector, and I will also pay close attention to carbon capture, use and storage now that the hon. Gentleman has raised it.
I will visit the CPI’s Redcar centre to discuss its achievements and ambitions and the development of the industrial strategy. I look forward to attending the northern powerhouse SME roadshow in June, to discuss investment opportunities and links to the industrial strategy across the whole of the north. Through local partnerships with Government and the impact of national investments, we expect the north-east and Tees Valley to play a full part in the industrial strategy agenda.
I was pleased to hear a number of hon. Members support various Highways England projects in the region, including Silverlink and improvements to the A19. I take on board the point made by the hon. Member for North Tyneside about power lines; she has raised that point on numerous occasions and has met my ministerial colleague about this issue, who wrote to Ofgem about it, and we are looking at possible ways forward. I am sure we will continue to push the point, and I assure her that her remarks today have not gone unnoticed.
Members rightly raised the importance of the east coast main line. At the Cabinet meeting in Newcastle in July 2018, a £780 million investment in the east coast main line was announced, which hopefully will mean faster journey times and more frequent services. That builds on the £337 million that was announced to upgrade local transport through a new fleet on the Tyne and Wear metro.
I strongly agree with the comments by the hon. Member for Washington and Sunderland West about the importance of Nissan and its huge strength in battery technology. I agree that the company is incredibly well placed to benefit from schemes such as the Government’s £246 million Faraday battery challenge, which is supporting the development of new battery technology in a market that will be worth £5 billion to the UK by 2025.
As the Minister responsible for the automotive sector, I recognise that the sector will go through more change in the next 10 years than it has in the last 100. We need to work closely with car manufacturers based in the UK to help them with that transition and to ensure that they decide this is the best country in the world in which to invest in new, cleaner modes of transport.
Chi Onwurah
The Minister speaks about the importance of battery technology, and Nissan’s strength in particular, but does he recognise that while the five-year fund supports investment in battery technology, it does not support investment in battery manufacturing? In this country we need a battery manufacturing base, so that batteries are not simply imported. Will he speak to that? I also hope he will not forget to respond to the concerns about a replacement for European regional development and structural investment funds.
Andrew Stephenson
The shadow Minister is correct; that is one of the reasons why we have the industrial strategy challenge fund. I mentioned my being in Coventry to launch the west midlands local industrial strategy, which was the first to be launched. On that day, I was delighted to visit the UK Battery Industrialisation Centre and to announce a further £28 million for that facility, which will be about production. It will take technologies being developed in places such as the Advanced Propulsion Centre and see how to produce batteries here in the UK. Some existing companies that have already done incredible work, such as Nissan, have the potential to bid for some of the Government funds that are already available, as well as future funds. That is fundamental because of the number of petrol engines we produce in the UK: to keep the UK as an automotive hub, we need to ensure that companies across the board invest in battery technology and production in the UK.
Questions have been asked about the £675 million high streets fund, the £1.6 billion stronger towns fund and the UK shared prosperity fund. More details of all those funds will be published in due course. They show the Government’s commitment to addressing the challenges raised by Members today. We need to invest more in renewable technologies, as was raised by several Members. The offshore wind sector deal is a great example of that. The Government’s commitment to the sector is underlined by the £92 billion of public and private investment in renewables since 2010. We have just finished an 18-day coal-free run in our power supply.
Lots has been done, but there is lots more to do, and lots of great ideas have been suggested today. I look forward to working with all Members who spoke in the debate and to visiting their constituencies and some of the projects they talked about.