Welsh Government: Fracking

Baroness Randerson Excerpts

Thursday 22nd January 2015 Lords Chamber

[Lord Wigley]

To ask Her Majesty’s Government what discussions they have had with the Welsh Government regarding the devolution of powers over fracking for gas on land.

[The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson) (LD)]

My Lords, in November 2014 my right honourable friend the Secretary of State for Wales announced a programme of work to seek a political consensus on the way forward for devolution and to provide a stable settlement for Wales. This work is underpinned by discussions with Welsh party leaders, including the First Minister of Wales, the right honourable Carwyn Jones AM.

[Lord Wigley (PC)]

My Lords, may I interpret that Answer as an indication that we can look forward to a Statement being made by the Secretary of State on St David’s Day to indeed confirm a transfer of responsibility for fracking to Wales? Since the Government have their own amendment to the Infrastructure Bill, Amendment 86, on Report in the House of Commons on Monday, removing Scotland from the provisions of that Bill concerning the right to use deep-level land for fracking, why is there not a similar amendment for Wales, if that is indeed the direction in which the Government are going? Will the Minister link up with the department today to see whether it is possible, even at this late stage, to table such an amendment?

[Baroness Randerson]

The noble Lord should take into account the process that is under way. The Secretary of State has set great store by the fact that he wants to achieve political consensus across the four parties in Wales. The Welsh Government are involved, of course, and they have made it clear what their views are on the need to offer powers to the Welsh Government if they have been offered to Scotland. However, what is right for Scotland is not necessarily always right for Wales, and discussions are still ongoing.

[Lord Thomas of Gresford (LD)]

My Lords, within 10 miles of my home in Gresford in north Wales—its second mention this morning—there were in 1866 some 21 shale oil extraction plants, selling petrol at three shillings and four pence per gallon. Two years later it had fallen to 10 pence a gallon and the industry was completely wrecked. Is Welsh shale oil as sound a basis for Welsh independence—which 3% of the people of Wales want, including the noble Lord—as, for example, North Sea oil is for Scotland?

[Baroness Randerson]

My noble friend illustrates the volatility of energy prices, then as now. From current reports, the potential for significant amounts of shale gas in Wales is unclear. However, I agree with my noble friend: the recent big falls in the oil price have illustrated the shaky financial foundations on which the Scottish independence campaign was based.

[Lord Hunt of Kings Heath (Lab)]

My Lords, forgive me, but I did not quite follow the first Answer of the noble Baroness. Have there been discussions on the devolution of powers over fracking for gas on land—yes or no?

[Baroness Randerson]

My Lords, there are four parts to the ongoing discussions. One of them relates to the Smith proposals, and which of those proposals would refer to Wales appropriately. Those discussions include the issue of fracking. In relation to Wales, the conversations are ongoing.