Energy Bill [Lords]

Callum McCaig Excerpts

Ping Pong: House of Commons
Monday 9th May 2016 Commons Chamber

[James Cartlidge (South Suffolk) (Con)]

I will speak briefly given that we have been here before in this ping- pong process.

This was my first Bill Committee and Reasons Committee—I believe I am already coming up for my second, which is interesting—and we are now down to one key point: there is wide acceptance of the broader need for the Bill, but we are told that if it is so important, we need only accept one more wafer-thin amendment and then it can go through. Conservative Members take the view that a Government could not govern if they did that every time. There are, unfortunately, cut-off points in lots of Bills, and many are unpopular, and although I can understand why people who will lose out are aggrieved, we take the view that the wider principles are incredibly important.

Others have spoken about the Oil and Gas Authority. Every time I have spoken, I have referred to the oil price, which I think is now up to about $49. There is still no sign of stability returning to the sector. Who knows where it will be in weeks if not days, given all that is happening in the world? The measures in relation to the OGA are not a magic wand for the oil sector but will bring an extra level of stability and demonstrate Government support at an incredibly sensitive and important time for what remains one of the UK’s largest industries and one of Scotland’s key industries. We should dispense with this process, move forward and pass the Bill, for the simple reason that it is about the fundamental strength of the UK economy.

[Callum McCaig (Aberdeen South) (SNP)]

It is with an unfortunate sense of déjà vu that we return to debate an issue we should have put to bed months ago, if not longer. I struggle to recall when the Wood review reported, but it was well in excess of 18 months ago, and as has been said many times, including by me, it was a completely different time in the oil industry’s lifespan. Up to a point, the Government have taken the action expected, but they did so at the time of the Wood review, when things were very different. Further delay should not have happened.

The Bill should have been on the statute books months ago and should not have conflated the OGA with onshore wind. It might have seemed like a neat parliamentary ruse at the time, but it is causing potentially significant damage. The last time we dealt with this—a week or so ago—the Minister told Opposition Members that we should be ashamed of ourselves. The most unedifying aspect of all this is that we are now talking only about projects in Scotland—four Scottish wind farms—and the OGA, which will largely deal with the oil industry in Scotland, and yet this House and that House cannot get their act together to protect two vital Scottish industries. That, for me, is utterly shameful and unacceptable.

Not content with decimating the wind industry in Scotland, the Tory party, supposedly in the name of public opinion, is twisting the knife in the face of public opinion. The four projects affected by the Bill all got planning permission from the local council. That is the definition of public support, which is what this should be about. There is public support for wind farms that would have significant community benefit. We have talked about the £7 million cost. I wonder how much we would have saved had we not delayed in establishing the OGA and provided it with the teeth it should have had months ago. We are squabbling over a relatively small figure, in the grand scheme of things, compared with the colossal amounts of money the Government will waste on the white elephant at Hinkley Point C. That sticks in my craw and that of folks in Scotland.

The Lords have compromised—good on them—because they want to get a deal done. I am no expert in parliamentary procedure, but the Minister talks about wanting to pass the Bill. It could be done very simply by accepting the amendment. We run the risk, before we prorogue for the Queen’s Speech, of the Bill falling. If that happens, it will be a shameful betrayal of the entire cross-party process over the establishment of the OGA, the development of its agenda and the provision of the tools it requires to help our oil industry. That cannot be allowed to happen. The risk is that we sacrifice the OGA on the altar of Tory party dogma on onshore wind. That is utterly unforgiveable.

--- Later in debate ---

[Pete Wishart]

I am loth to interrupt my hon. Friend, who is making a powerful case in defence of the Lords amendment, but I am sure he has seen the evidence submitted to the Scottish Affairs Committee and how the energy has been taken out of the sector because of the Government’s arbitrary decision. He is right that they made a manifesto commitment, but it is totally unacceptable to do this in a year and leave these four plants in a state of limbo. There is a simple way the Government could solve the issue this evening and get the Bill through: accept the amendment, get on with it, deliver the Bill and make sure we do our best for both sectors.

[Callum McCaig]

I thank my hon. Friend for his intervention. I agree 100% and commend the work of the Committee he leads in shedding light on this issue.

Most countries would be proud of the wind industry that has developed in the last decade or so. It should not be seen as a burden, as it apparently is; it contributes massively to jobs, to reducing our carbon emissions and to tackling the great threat of climate change. But—again—no, because it upsets a few folks!

[Pete Wishart]

Tory ideology.

[Callum McCaig]

It is. It is an ideological attack, and despite the potential consequences for wider industry sectors, they are happy to see it happen. We have this squabble over an issue in Scotland between the unelected House of Lords and a Government who, with their sole Tory representative, might as well be unelected in Scotland. We are talking about grace periods. Thus far, the Government have acted completely and utterly without grace. It is not too late to change that.

[Suella Fernandes (Fareham) (Con)]

This is a vital Bill, and there have been plenty of opportunities in this House and the other place to give it proper scrutiny. Having spoken on Second Reading and sat on the Bill Committee, I feel that I am nearly as familiar as the Minister with some of the debates.

I have a particular local interest in the wider issue. A proposed new electricity interconnector facility linking France and the UK comes ashore at Chilling in my constituency. The development, called IFA2, will provide the capability to export or import more than 1,000 MW of power and provide benefits to consumers through increased flexibility of supply and downwards pressure on prices. It is because I want the Bill enacted that I share the Minister’s frustrations at the continued blocking by the Opposition in the other place. It also defies long-held conventions such as the Salisbury convention, which is that a manifesto commitment of a party elected with a majority of support from the people should be enshrined in law—without opposition from the other place. And we should not forget that the other place gains its majority from Members who come from the Liberal Democrats or other parties that are not elected and do not reflect the political make-up of this elected Chamber. This undermines parliamentary democracy and the will of the general public.

This amendment addresses one of the narrowest aspects of the Bill—and the issue of the cut-off date and potential grace period has become the sticking-point. Debate on the merits of the arguments have been exhausted by now, so I shall not dwell on them too long. We can all appreciate the concern of those directly affected, who understandably want changes in the rules to benefit themselves. They have the right to lobby the Government and put their case. In the end, however, a decision has to be made, and a line needs to be drawn somewhere. Every deadline is arbitrary in some sense because it draws such a line. Some will be on one side and some on the other side. The fact of setting a deadline itself, however, cannot be considered unfair—otherwise we would be unable to set them at all.

The hon. Member for Southampton, Test (Dr Whitehead) put forward a proposal for a grace period, but where will it end? Some people will benefit; others will not. The Government have made a very clear commitment to this policy in their manifesto, and I support it.

Question put, That this House disagrees with Lords amendment 7TB.