Infrastructure Bill [Lords]

Baroness Keeley Excerpts

Monday 8th December 2014 Commons Chamber

[Mr Hayes]

The hon. Gentleman will have the chance to make that case as the Bill makes its passage through the House. I am not in the other place and it is not really for me to anticipate the amendments that he or other Members might table. Of course, we will listen—this is a Government who listen and learn, as I shall describe in a moment. Given the hon. Gentleman’s record in this House, I know that he would be the last person to turn his back on innovation and stand in the way of progress. Indeed, he has been one of this House’s greatest advocates of innovation and scientific progress.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

My constituency includes the community of Barton Moss, where a six-month exploration for shale gas took place from November to May. That was dumped on frightened communities and people as a result of a 2012 planning application for coalbed methane gas. There was no reassurance.

Even worse, the Government have changed the planning process, shortened time scales, and taken some vital aspects of planning consideration away from local planning authorities and given them to the Environment Agency; that made it so much more difficult for communities such as mine to comment and be involved. They were not involved and they did not comment. The things the Minister has said about reassurance just did not happen.

[Mr Hayes]

I do not want to be unnecessarily partisan, because that is not my way, but I can say only that the hon. Lady has either misread the Bill or misunderstood the Government’s intention. After my explanation of that aspect of the Bill, I hope the hon. Lady will leave the Chamber if not convinced, at least with many of her worst fears assuaged. If I am imperfect in making the argument, so be it, but I will give it my best shot. I will say no more than that.

The hon. Lady and others know that, because of our commitment to long-term delivery, unemployment has dropped below 2 million for the first time since 2008 and we have produced the first ever road investment strategy, which has been warmly welcomed not only by Members of this House, but by the RAC Foundation director, Professor Stephen Glaister, by Richard Threlfall, the head of infrastructure at consultants KPMG, and by many others. I will not tire the House by listing the many supporters of the Government’s approach. That would not be entirely fair to the Opposition, either. I do not want them to start with such a profound disadvantage; I want to give them a fair shot on what is, after all, an extremely sticky wicket for them.

I genuinely believe that our impressive commitment to the long term, which stands in sharp contrast to the record of the previous Government, is one of the hallmarks of this Administration. According to the World Economic Forum’s global competitiveness survey, under the Labour party—as I have said, I do not want to dwell on this for too long—our roads and railways plummeted from seventh in the world to 33rd.

We know that if Labour had been re-elected in 2010, things would have only got worse. Mr Miliband admitted to the BBC after the election that Labour had planned to cut investment in rail and road by 50%, telling Radio 5 Live that

“we’re going to halve the share of national income going to capital spending.”

That was, of course, Mr David Miliband, Mr Speaker, as you probably remember.

The sharp contrast between anyone called Miliband and Benjamin Disraeli is of course clear to all in the House. That great Prime Minister once said:

“In a progressive country, change is constant;…change…is inevitable.”

The role of Government is to prepare for change, and to plan for the long term. The various measures in the Bill will help to bring about such changes and make a real difference to people’s lives and livelihoods. Let us look at the changes in turn.

First, on roads reform, the Government have announced hundreds of extra lane miles on motorways and trunk roads, and action to improve some of the most important arteries in our country, such as the A303 to the south-west and the A1 Newcastle-Gateshead western bypass. It is fair to say that our work at Stonehenge—the bold engineering work to be done—is probably the most ambitious scheme there since the stone age. It is totemic, as it were, or emblematic of this Government’s willingness to tackle matters that have been neglected for a long time by successive Governments.

Major roads run by the new strategic highways company will create better connectivity and minimise environmental impact. The new name for our strategic highways company will be Highways England. I intend to set it up as soon as possible. The Government have already committed more than £24 billion to upgrade England’s strategic road network through to 2021.

--- Later in debate ---

[Mr Hayes]

The hon. Gentleman will be familiar with the impact assessment. I have a copy here and I would be happy to let him read it. It is available and if he looks at that impact assessment he will be able to gauge how far we have performed the analysis he describes. If he feels that we have done so insufficiently, I shall be more than happy to correspond with him directly on the matter. I know that he always brings fresh thinking to the consideration of this House.

The Bill will enable communities to be offered the chance to buy a stake in new, commercial renewable electricity schemes in their local area, so that they can gain a greater share in the associated financial benefit. We would consider using this power only if the voluntary approach to community shared ownership in renewable energy did not bear fruit. A right to buy would give communities the opportunity to have a real stake and sense of ownership in projects happening in their area. The Shared Ownership Taskforce recently launched its voluntary framework, and we brought forward an amendment to the Bill in the other place in order to provide greater certainty on the minimum time scales for this voluntary approach to take effect. We are proposing, too, to allow changes to the renewable heat incentive to provide more flexibility in financing arrangements for renewable heating systems.

Let me come on now to what I described as the exciting part of my speech, which deals with the Wood review. We recognise that increasing renewable energy sources is important, but we realise that a dynamic and flourishing oil and gas industry remains important, too. It can contribute to our energy security and to the economy, supporting around 450,000 jobs and showing record capital expenditure in 2013 of around £14 billion.

The Government agreed with the findings of Sir Ian Wood’s independent report, which concluded that changes to the recovery and stewardship regime in the North sea could deliver around £200 billion of additional value to the UK economy. We intend to deliver all of Sir Ian’s recommendations, but further work is required with stakeholders on a number of detailed aspects and parliamentary time is scarce. We are therefore starting by introducing two measures: one will put into statute the principle of maximising economic recovery of petroleum from UK waters; and the second will introduce a power so that the costs of funding a larger, better resourced regulator can be paid for by the industry rather than through general taxation, as is currently the case.

We need to explore all our energy options. This is the age of increasing costs, uncertainty and insecurity in overseas energy suppliers. The shale gas industry in the UK is at an embryonic stage, and the changes in the Bill would simplify the procedure by which onshore gas and oil and deep geothermal developers can obtain underground drilling access, and are accompanied by the industry’s commitment to pay communities in return for the right to use deep-level land. We do not yet know what is commercially viable, but we are encouraging exploration. These provisions will help us to address this question to ensure that the regulation is compatible with these new methods of underground drilling.

There has been a great deal of unfounded scaremongering on the environmental impacts of shale gas, much of it based on examples from other jurisdictions. The Bill does not alter the involvement of local authority planners; nor does it erode in any way the strength of our regulatory regime, the effectiveness of which has been demonstrated over 50 years of development, which is one of the strictest and safest in the world.

[Barbara Keeley]

rose—

[Mr Hayes]

I give way to the hon. Lady who I know is concerned about this issue. I am keen to hear from her.

[Barbara Keeley]

I am sure that a number of Members are concerned about it; I am not the only one, although I may be one who has been disturbed most recently by this sort of development in my constituency. The Government should be determined to do the right and the safe thing by communities, but they are not doing so. They are determined to have this rushed through. Indeed, the Prime Minister is determined to win the debate on shale gas. My constituents suffered for the best part of six months from exploration for shale gas. Businesses lost money and people could not sell their homes, yet the whole issue of compensation was never dealt with, and it was the same with the policing of protests. The community in Greater Manchester suffered by having to pay for the policing of the protests, and local people were really damaged by what went on at Barton Moss.

The key point is that none of the arrangements up to now has helped to compensate people in that position by one jot. Random schemes that provide some funding here and there are not the answer; the compensation should go to the people who were hurt.

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[Richard Burden]

My hon. Friend makes an important point that was repeated in the other place and if the Bill gets to Committee, and we will be seeking a much more robust regulatory environment. My hon. Friend the Member for Ellesmere Port and Neston (Andrew Miller) said that securing public confidence is not just important to us as parliamentarians when representing our constituents, but it is also important to the industry, which needs public concern about this issue like a hole in the head. If questions are to be answered they should be answered, and we should have transparency and a proper regulatory regime.

[Barbara Keeley]

The planning process for shale gas was changed on the first day of the recess last year—a day after we had debated it here—and there was no chance to comment. As my hon. Friend says, it is important that the public have confidence, which they cannot have at the moment. Planning authorities such as that in Salford should not have been denied the chance to comment on and take into account certain measures that were removed by the Government last year, and the time scale should not have been shortened. People need time to get their heads around this complex process, and planning authorities have fewer staff than they once had. I mentioned the payment scheme, which is totally unsatisfactory. People whose businesses lost money or who could not sell their homes will not be compensated by giving small amounts of money to the scout group down the road. This must be dealt with—

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. I call the Minister.

--- Later in debate ---

[Charles Hendry]

We need to satisfy the public, but the principle remains the same: the best way to deliver the toughest standards is by putting an unlimited obligation on companies to meet them, and by using the best technology and skills available to do so. That has put us in a position where our system is trusted, and people from across the world look at it to understand how well such a system can work. I hope that in this debate and in the wider debate on shale, we can start to differentiate the legitimate concerns about the transportation of liquids, what is injected and water management from the wholly bogus claims that are often made.

[Barbara Keeley]

I want to make a point about open spaces. We have been through that issue in my constituency; there is a school secure unit a quarter of a mile from the site and residential streets just over half a mile from it. That is not an open space situation. Companies such as the one at Barton Moss can go around and select sites that are grossly unsuitable—right on top of schools and where people live. That should not be allowed.

[Charles Hendry]

I hope that those issues are entirely legitimate to raise within the planning process. Those matters should be looked at in that way to decide whether an activity is or is not appropriate, and I believe that the right processes are in place to ensure that that happens.

As the shadow spokesman, the hon. Member for Birmingham, Northfield, said, the proposed underground access is not exceptional; it already happens for cables, gas pipelines, tunnels and coal mining. As the debate is taken forward, I hope that we can reassure people that we are not doing something draconian or very different, but simply allowing a change that brings the activity into line with others.

I hope that the Bill can still be amended in one area, however, so that it addresses an issue of gas security at the same time. The focus on the North sea and shale gas highlights our vulnerability on energy security. As a country, we are already dependent on imported gas. Historically, the North sea was our gas-storage capability—when we needed more, we pumped out a bit more—which is why we have never stored the same volumes of gas as the French and the Germans. As we move into a period of dependency on gas imports, we need to look again at gas storage.

That is particularly true in the current climate, with the oil price where it is. The risk from the oil price’s being lower than it was just a few months ago is that the North sea will be harder to sustain in the longer term. It is one of the most expensive basins in the world, and there is therefore a risk that some fields will be closed down earlier. They will be abandoned, and it will not be possible to reopen them. At the same time, a low oil price—the gas linkage comes into that—means that UK shale may, because of its cost, be harder or simply not economic to extract. We therefore need to consider how to preserve our security of supply, which means looking again at gas storage.

We should pay tribute to, and recognise, the tremendous difference made by the liquefied natural gas terminals in the Thames and in south Wales, and the important contribution made by pipeline infrastructure from Norway—Langeled, for example—and what it has brought to this debate. However, looking back at gas issues over the past eight years or so, I think that we came too close for comfort during four winters, overwhelmingly because of factors over which we had no control.

The first time was in 2006, when there was a fire in our main gas storage facility at Rough. In 2009, there was the Russia-Ukraine dispute. Even though we were as far away in Europe as we could have been from those issues, gas was coming in through one interconnector and the same volume was going out through the interconnector next door to meet the demand in continental Europe. Eighteen months ago, the winter before last, we came within a few hours of running out of gas because the winter was so long and cold. We cannot leave the situation to chance. We need to take action now to guarantee our energy security for the future.

I believe fundamentally in market principles and approaches, but the market approach has not delivered the level of new investment that we would wish to see in this area. My right hon. Friend the Minister, who introduced the debate, well knows my views on this matter. We had a discussion a day or so after he took over from me as the Minister of State; I said that the one thing on which I wished we had done more was gas storage. I still hold that view today—perhaps even more strongly.