Delivery Charges (Scotland)
Brendan O'Hara Excerpts(6 years, 7 months ago)
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Brendan O'Hara (Argyll and Bute) (SNP)
I will keep my remarks brief as a courtesy to colleagues who wish to speak. The issue of fair delivery charges to Scotland has had no greater champion in this place over the last two and a half years than my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry). It is an issue not just for this Parliament but for the Scottish Parliament, and I pay tribute to the work of my Scottish National party colleague, Richard Lochhead, the MSP for Moray, who launched the fair delivery charges campaign and who led a debate in the Scottish Parliament a couple of weeks ago.
In preparing for today’s debate, I sought examples from my constituents and I was deluged—almost overwhelmed—with the examples from the people of Argyll and Bute. The one from Alex Samboerk from Lochgilphead was notable. Lochgilphead is not on an island; it is 88 miles from Glasgow and it takes less than two and a half hours to get there. Alex went online and bought a case of 28 healthy fruit and cereal bars. The cost was £17.81. When he went to check out, he was astonished to see that for the PA31 postcode in which he lives, the economy service was £90 for delivery. Alex is not alone. I have been inundated with people complaining about such things.
My wish is that this is the last time we have to debate this issue. I hope that the Minister can say that she and the Government will take on board the anger and frustration that has been felt throughout rural Scotland at this unscrupulous and outrageous practice by some delivery companies. As I said, I will cut my comments short as a courtesy to other speakers, but let us never have this debate again.
Oral Answers to Questions
Brendan O'Hara Excerpts(6 years, 7 months ago)
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Greg Clark
I do not agree with the hon. Lady, and if she reads the industrial strategy she will see that the biggest increase in science and innovation investment for 40 years has been triggered by this. It is the right way to go, and it has been welcomed by all parties across the country. It would be helpful if the hon. Lady recognised that many other countries have benefited from a strong national commitment to improving investment in productivity, such as through science and innovation, and that gives confidence to overseas investors.
Brendan O’Hara (Argyll and Bute) (SNP)
Hannah Bardell (Livingston) (SNP)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
Over a third of projects supported by contracts for difference are located in Scotland. In October, we announced plans to allow wind projects on the remote islands of Scotland to compete for support in the next auction. We have submitted a notification of our plans to the European Commission.
Brendan O’Hara
My constituency has much going for it, including an abundance of wind and water, making it an ideal place for all kinds of renewable energy projects. What will the Government do to provide revenue support to renewable energy companies during the innovation period while they work to bring down costs?
Richard Harrington
I am sure that the hon. Gentleman has read the industrial strategy avidly; if he has not, I warmly recommend that he does so, as it covers these matters extensively.
Renewable Energy Generation: Island Communities
Brendan O'Hara Excerpts(7 years ago)
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Richard Harrington
I thank my hon. Friend for his intervention. Time does not permit me to answer in full, but I would be happy to meet and discuss this subject with him on behalf of his constituents.
Thirdly, we have to define what is meant by “island wind projects” in a legal context, and that is being done; we are working through the issues. The right hon. Member for Orkney and Shetland is very aware of that matter.
Last but not least, we need to give clarity to the developers of island projects while being fair to developers of other projects elsewhere and to consumers across the UK.
Brendan O’Hara (Argyll and Bute) (SNP)
This issue is also very dear to my hon. Friend the Member for Na h-Eileanan an Iar (Angus Brendan MacNeil), who has been unavoidably delayed while travelling here today. He is very concerned, as I am. Given the promises made in the Tory manifesto and by Tory candidates at the general election, when will the Government act to introduce an island CfD? The lack of a CfD and the locational pricing model are severely hampering the industry on the islands, and this is a vital sector that we need to survive.
Richard Harrington
I can assure the hon. Gentleman that we are aware of that issue and we are fully on it. I am happy to meet him if he would like to discuss it separately, but I have only five minutes left now and I do not want to break into the time for the key points that I need to raise.
There is a range of options for overcoming the issues that I have outlined, and I hope that by taking a pragmatic approach we can do so quickly. We need to understand the costs of the projects and the impacts on consumers’ bills. My officials have begun the process of updating the evidence base to set an appropriate strike price—the maximum that these projects could get paid for each unit of electricity that they produce. We must not forget that any additional costs that arise as a result of awarding support contracts are ultimately paid by households and businesses in their electricity bills.
Our approach to supporting new renewables, of competitive auctions with limits on the maximum price that we will allow, ensures that we support only the more cost-effective projects. That approach is not new but has been applied very successfully to other technologies, such as offshore wind. The industry is confident that the renewables support auction currently under way, whose outcome is expected in the coming months, should lead to a significant further drop in price. Whatever approach we take will need to work in this context of quite rapid price changes, and we want to see the outcome of our current auction before making decisions regarding the remote Scottish islands.
We have been through very clearly the importance of local support. Not everyone in the islands will support the development of the wind farms, but I am told that the majority of residents do. I understand that a poll of 1,000 Isle of Lewis adults commissioned by Lewis Wind Power found that seven in 10 supported having wind farms on their island. That is encouraging, but such support should not be taken for granted. It needs to be rewarded in the way that has been discussed—through community benefit funds and other systems. The Scottish Government have informed my officials that all the developers on the islands have committed to pay at least £5,000 per megawatt of capacity per year into such funds for the lifetime of a wind farm. That means that the Viking wind farm on Shetland, for example, could provide up to £1.85 million every year to the community. That money could be used for all sorts of projects: schools, local support groups, scout groups—the list is endless. Developers are also offering communities the opportunity to own a stake in projects, which is something that the UK and Scottish Governments are keen to see more of. Beyond direct income, we should also acknowledge the other benefits that these projects could bring. For example, jobs will be created not just during construction but throughout the lifetime of the projects.
Wind energy can play an important role for the country as a whole in producing the electricity we all need to support the running of our economy and our daily lives and in helping to reduce the harmful emissions associated with our energy systems. We all appreciate the commitment that island communities will have to make to ensure that we have access to long-term clean power. That is why it is absolutely right that they should benefit from hosting the projects.
We recognise that there are different ways of delivering the benefits, but of course it is important that any commitments that developers make are real and go beyond warm words. The Scottish Government are considering this issue closely, and I very much welcome that work. I look forward to meeting the right hon. Member for Orkney and Shetland and a group of developers, which we discussed outside the Chamber. That is a very good idea, which I am keen to progress as soon as possible.
I hope that my response today, in the short time that I have had, provides some reassurance to Members, as well as to the constituents we all represent, that the Government will support the development of onshore wind projects in the remote islands of Scotland, where they will directly benefit local communities.
Another very good point made by the right hon. Member for Orkney and Shetland is that we are not starting from scratch. We know that, and I do not mean just the manifesto commitment, but everything that went before.