Jobs and Growth in a Low-carbon Economy Debate

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Jobs and Growth in a Low-carbon Economy

Brandon Lewis Excerpts
Monday 5th March 2012

(12 years, 2 months ago)

Commons Chamber
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Brandon Lewis Portrait Brandon Lewis (Great Yarmouth) (Con)
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I want to focus on my region in East Anglia and on jobs. In East Anglia, between Great Yarmouth in my constituency and Lowestoft in the constituency of my hon. Friend the Member for Waveney (Peter Aldous), we have a whole energy hub. That hub is quite an important factor in the context of the direction we are moving in with energy. Back in 2001, the industry employed about 20,000 people in our region across 6,000-odd companies. The growth, with what is on the table now and what has developed since 2001, means around 105,000 jobs in the industry in our region alone, with a turnover for those businesses of about £13 billion a year. What is on offer to the industry at the moment with the contracts that are out there, particularly for renewable energy and with the offshore wind farm option, is potentially another £50 billion-worth of contracts, with particular focus on carbon capture.

The way in which Departments have worked together has been useful for our area and in helping our industry to grow, and it has been welcomed by people in the industry across Great Yarmouth and Lowestoft. The Department for Communities and Local Government, the Department for Business, Innovation and Skills, the Treasury and the Department of Energy and Climate Change have worked together to make sure that we get the best out of our region and provide the best for our country, not least in terms of the important issue of energy security. We have been able to secure an enterprise zone, which means about 2,000 jobs with 80 businesses. I am hopeful that the very first business to open in the enterprise zone when it starts this April will be Seajacks in Great Yarmouth, with a focus on servicing the offshore wind farm industry. In the 25-year life of that enterprise zone, which is focused on energy and particularly on low-carbon energy, we believe there could be a potential 13,500 extra jobs and 200 extra businesses coming into our region alone.

Much of the advantage and development there has been in the industry has come from people in the industry working together, taking the proverbial bull by the horns and putting together the East of England Energy Group, which works well at representing the area across the world. It has shown the huge opportunities on our doorstep to develop extra jobs and apprenticeships and to publicise them across the industry. It is a multinational industry, with multinational companies such as Perenco, Halliburton, AMEC and others basing themselves in our area to take advantage of the opportunities that are now there because of the way in which the Government are delivering. The interest that has been shown by Ministers from across Departments and Secretaries of State who have visited our area and met businesses has shown the industry that they are interested in it, that they want it to grow and that they believe we have an offer in our area. We welcome that.

The Government have said they want Britain’s businesses to benefit from the £200 billion of infrastructure needed by 2020. Will the Minister comment on the fact that some in the industry believe that when they compete overseas they are sometimes at a disadvantage because other countries overly favour businesses from their own country? I would appreciate hearing his comments on that and our Government’s view of what we can do to balance that situation here.

We also need to make sure that we get in the skills and match them to what the industry needs. In areas such as Great Yarmouth and Lowestoft, the Skills for Energy group is coming together under an excellent chairmanship. It brings together companies such as AMEC, EDF, Seajacks, Shell and others to ensure that we are developing, across our colleges and universities, the qualifications and skills needed so desperately by the energy industry, and the engineering industry that comes off it through the supply chain, to fill the jobs that are on offer locally. Given that this debate concerns jobs and growth, that is very important.

The green investment bank has been mentioned many times. That is vital for funding, particularly development funding, in the industry and for giving certainty to the industry about the ability to develop and finance that funding. It is a very welcome introduction because this area is hugely complicated. As I have mentioned the bank, let me make a pitch for Norwich to have it, as it is in such close proximity to the whole energy hub. Nowhere else in the country could match that; Norwich is the perfect home for the bank. If the Minister would like to support those points or to comment on them, his comments would be welcome.

Lastly, let me touch on earlier comments about the low-carbon economy. We have the advantage of potentially being able to service, look after, develop and help construct, through our deep-water port, the new offshore wind farm that is going to be developed, which will be a huge asset both economically and as part of our energy offer. There is also the issue of carbon capture, with the Deborah field project very closely off our shoreline being worth, possibly, around £1 billion. Potentially, 25% of that could go to our supply chain, so there is a huge opportunity for East Anglia to develop. That is another advantage to our economy coming as a result of what the Government are doing, and for that I thank everyone at DECC. Most importantly, I am glad that Departments are working together to make sure that we can offer businesses the best opportunities and an environment in which they can develop the skills and encourage local education suppliers to develop the skills that the industry needs so that we are developing not just jobs and job opportunities but the skills to fill those jobs. That is vital when we are developing jobs and growth in our economy.

None Portrait Several hon. Members
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