China: Mineral Acquisitions

Baroness Symons of Vernham Dean Excerpts

Thursday 12th July 2012 Lords Chamber

[Lord Howell of Guildford]

Well, it is not quite pointless. As my noble friend knows well, China, although reluctant to commit itself to legal binding global agreements for which some others have argued, is in fact investing enormous amounts in decarbonisation and low-carbon technologies. It is working very closely with the United Kingdom and our technologies and developing in those areas. All these are very valuable moves forward in the decarbonisation movement and, one hopes, effective moves worldwide against climate violence in the future. I think there is value in this.

The pursuit of international global targets that are legally binding is going to be a very uphill task in relation not merely to China but to other countries as well. The general message coming to us from Beijing and the vast Chinese industrial machine is that they are well on the path to low-carbon technologies, and we are going to work with them on that.

[Baroness Symons of Vernham Dean]

My Lords, I draw attention to my declaration in the register of interests. Is it not true that these are largely state-sponsored Chinese acquisitions? They very often come with promises of collateral benefits for the growth of infrastructure in the countries concerned, such as railways and roads. Have the Government done any assessment of the level of delivery from the Chinese on these collateral benefits? There is evidence that much is promised that will go along with access to these mineral resources, and very often not much is delivered. Would the Minister initiate looking at the evidence for what is really the benefit to the country concerned?

[Lord Howell of Guildford]

We follow these things very closely. The noble Baroness is entirely right that in some cases the benefits have disadvantages attached to them. I am not talking so much about their failing to deliver fantastic new developments in sports stadia, schools, railways, government offices and so on, although that certainly happens. In other areas, the benefit for local people turns out to be non-existent because labour is just imported from China and taken away again. There are lessons to be learnt by our Chinese friends, which, again, we can possibly help with, on the basis of our own experience in the past, as to how to conduct operations that bring real benefit to local people and do not just leave them feeling that they have been ripped off.