UK Fishing Industry

Callum McCaig Excerpts

Thursday 1st December 2016 Commons Chamber

[Neil Parish]

I thank the hon. Member for Strangford (Jim Shannon)—I knew his name, but not his constituency—for his point, which I am sure that the Minister has registered. We are hearing the strong view that this is about not just how and where we fish and what we catch, but the labour to man our fishing boats. The situation in Scotland and Northern Ireland shows how integrated and inter-reliant our fishing industry is.

As we move into this new world, securing access to other waters will be a great challenge, but we will probably also have to share our waters with those who have historically had rights here. Perhaps we can use that fact in our trade negotiations as we move towards a new policy. The adage is that when we entered the EU in 1972, we gave correct figures on the size of our catch, but others inflated theirs, meaning that when the catches were cut back, Britain ended up with very low quotas. From Grimsby to Scotland and all around the country, we can start to put that right.

[Callum McCaig (Aberdeen South) (SNP)]

The hon. Gentleman suggests that the fishing industry could be used as part of trade negotiations. The Scottish fishing industry learned a sore lesson when it was previously sold out in negotiations. We need assurances that that will not happen again, and that the industry will not be a pawn in trade negotiations.

[Neil Parish]

I agree with the hon. Gentleman. We must make clear our ability to take our fishing rights out to the 200-mile limit, as well as where exactly we will have those rights and how we will deal with others’ historical rights. If we can get the whip hand—if we can secure 200-mile rights—we can get a very good trade deal, as well as a very good deal for Scottish fishermen. It will be interesting to see how we unravel what has been in place for 40 years. I know that the Minister is confident of getting these rights back to 200 miles. It will take some doing, but if we can achieve it, we will be in a very good position.

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[Callum McCaig]

Aberdeen no longer has a fishing industry—it is safe to say that it was lost to the advent of oil, not to the EU—but it retains a processing sector, a significant proportion of whose workforce comes from elsewhere in the European Union. Does my hon. Friend agree that the sector is at risk if there is no protection for those workers?

[Dr Whiteford]

Of course I agree with my hon. Friend. That point has been raised by Members from many parts of the UK.

A significant proportion of the fish caught by Scottish boats is already landed in ports overseas, notably in Norway. If we were to lose any processing capacity in Scotland because of labour shortages, we would lose part of the high-value end of our supply chain. We would lose exports and revenue and, critically, we would jeopardise hundreds of local jobs that the free movement of labour has anchored in our geographically peripheral coastal communities.

I am desperately disappointed that the UK Government have chosen to use the status of EU nationals living and working in the UK as a bargaining chip in their Brexit negotiations. That has not just set a poor tone for what lies ahead, but created uncertainty for businesses and for ordinary, hard-working folk who have made their homes in our communities and do not deserve to become pawns in this unedifying game.

In or out of the EU, it is overwhelmingly in the interests of our fish processors and exporters to stay in the single market. Whatever our eventual constitutional destination, even the most ardent Brexiteers recognise that we will still have to negotiate with neighbouring coastal states over shared stocks and reciprocal access to our waters. It would be absolutely daft to get ourselves into a position where we can finally ditch the problems with the CFP and recover access to the fish in our own waters, but be unable to get that fish to market. In that regard, I was surprised to hear the right hon. Member for North Shropshire (Mr Paterson) say that he was in favour of leaving the single market, because I was looking the other day at a video clip of him on the “Murnaghan” programme saying

“only a madman would actually leave the market.”

I do not know what has prompted this turn of insanity, but I think the right hon. Gentleman should clarify.

Oral Answers to Questions

Callum McCaig Excerpts

Thursday 14th July 2016 Commons Chamber

[Andrea Leadsom]

My hon. Friend is exactly right. People all too often fail to recognise that the energy trilemma consists of keeping the lights on, keeping bills down, and decarbonising. He is right that the capacity market is there to ensure the security of supply and that is the payment we make to keep the lights on.

[Callum McCaig (Aberdeen South) (SNP)]

I echo the remarks made about the right hon. Member for Hastings and Rye (Amber Rudd) and wish her well in her new role as Home Secretary. I am glad that the Minister is here, because if she had not been, these questions may have been a little more rhetorical than usual.

The previous Prime Minister said in 2012 that he would legislate to ensure that all consumers were on the lowest tariff. We have had four years since then, and an extensive CMA report has come up with recommendations that are a little underwhelming in their scope. Does the Minister think that that will be enough to ensure that energy customers get the best possible deal?

[Andrea Leadsom]

That was a fair question. The CMA has carried out a detailed piece of research and we are committed to implementing all its recommendations as soon as possible. We have also made it clear that if we do not see change, we will take further steps. The hon. Gentleman is right. We will implement the CMA’s recommendations. We will see costs come down, competition go up, and better remedies for people on prepayment meters, but we will also be alert to other opportunities to get costs down for consumers.

[Callum McCaig]

I am glad that the Minister says that the Government will remain vigilant on this matter. The CMA found that 70% of customers of the big six domestic suppliers were on the more expensive standard variable tariff. Will she set a target for reducing that so that we know what success looks like and to determine whether the further action that she mentions is required?

[Andrea Leadsom]

As I have just explained, we do not want to set a specific target. However, we are successfully providing support to organisations that then go on to help people to switch. I love the idea that if anybody listening to this really wants to help their grandparents, neighbour or whomever, who may not have the confidence to switch themselves, they could go and help them switch, possibly saving them several hundred pounds. Instead of setting targets and blaming people when they are not met, we need to persuade people of the advantages of switching.

EU Referendum: Energy and Environment

Callum McCaig Excerpts

Tuesday 12th July 2016 Commons Chamber

[Callum McCaig (Aberdeen South) (SNP)]

This is a good debate to be having and I thank the shadow Secretary of State, the hon. Member for Brent North (Barry Gardiner), and the Labour Front Bench team for giving us the opportunity. It is a shame, however, that the hon. Gentleman did not get beyond his introductory remarks in what was an excellent overview of the issues.

SNP history is being made today in that it is the first time that the full force of “Team Callum” has been deployed at the same time. We will hear later from my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (Calum Kerr)—or, as I like to call him, the junior member of the team.

Today’s debate feels a little bit like the last day of school. There is a little bit more work to do, but not a huge amount of Government work is going on as we discuss things, pick over the bones of Brexit and ask questions about how we go forward. I am sure that the Secretary of State is pleased—as we all are—that we have a new Prime Minister because that will help to ease some of the uncertainties that were building up and it is welcome that we will not have several weeks of uncertainty. I hope that the Government use the summer recess to come up with some plans, because plans are badly needed.

Last week, we discussed the excellent Energy and Climate Change Committee report on investor confidence and were able to discuss some of the issues affecting the sector that have been exacerbated by the Brexit vote. It is fair to say and it bears repeating time and again that Scotland did not vote for Brexit, and we will be doing everything in our power to ensure that we do not leave. We should change the lexicon slightly and refer either to “Exit” or perhaps “Wexit”. Scotland is not for leaving, and our Parliament and Government have united around keeping Scotland in the European Union. However, the uncertainty afflicting the United Kingdom following the vote will have some effects while we wait for clarity about our maintained position in the European Union

On energy bills, The Guardian reports today on uSwitch research suggesting that, since 23 June, 12 providers have pulled their cheapest fixed-rate tariffs and replaced them with more expensive deals. That is the impact of Brexit, which will be felt by consumers and those who can ill afford to pay more. The weak pound will have another cost impact as the UK is a net importer of electricity. Such things will drive up bills and are an unfortunate consequence of the Brexit vote. The future of interconnection is also uncertain. Interconnection is important and represents a valuable and sensible Government aim. I have often said that we should not see it as a way of importing cheap electricity from the continent, as the Secretary of State said in her “reset” speech; we should be using it to export electricity to the continent. We should be investing in domestic, low-carbon electricity generation, for which Scotland has immense and highly enviable potential.

The prospect of cheap electricity from the continent is also slightly questionable. Exchange rates will obviously change over time, but the assumptions about future interconnection decisions built into the sums might not look so good when the pound is not faring so well against the euro. Such things will come out in the wash, as we say in Scotland, but we need to look at energy policy and interconnection to see whether it is the right thing to do.

Hinkley is another big question about which we have had some discussion and it will come as no surprise to anyone on the Government Benches that the SNP is not in favour of it. We have discussed it ad nauseam, but it bears repeating that the economics of Hinkley were, in the views of my party, myself and a large number of people in the Chamber, highly dubious. The fundamental economics have only been undermined by the Brexit vote, and we need to reconsider them. We cannot afford to have all our eggs in this particular basket, because if it does not happen—I suspect it will not—there will be a rather large hole to be filled. We cannot, like we did with the Brexit vote, enter the unknown with no back-up plan.

[Caroline Lucas]

To give some shape to the hole that the hon. Gentleman mentions, does he agree that it is shocking that the expected fall in wholesale electricity prices has driven up the Government’s estimate of the whole lifetime cost of Hinkley to £37 billion from the £14 billion of only a year ago?

[Callum McCaig]

I thank the hon. Lady for that intervention. The costs are eye-watering. Given the extent to which Hinkley is an international project, the costs could rise even further still. It is time to have a sincere look at the plans and to decide whether the project is possible, but I strongly assume that it is not, so we require a back-up plan. If we do not address the huge strains on our energy system, the bread and butter of keeping the lights on will be put in jeopardy—perhaps not today but in the decades to come. It is incumbent upon the Government and the Department of Energy and Climate Change to act now.

We also need clarity from the Government on the position of the internal energy market in the European Union. The Vivid Economics report that was cited last week and again today about the potential of being outwith the system adding £500 million per annum to the costs of our energy system is sobering. When DECC and the Government as a whole are engaged in their summer homework of working out how to get out of this particular pickle, I suggest that ensuring that we keep the co-operation of the IEM should be high up the agenda because it delivers for us here and for folks abroad. It will help us to meet the trilemma of energy costs and should not be sold down the river lightly.

To maintain security of supply, the time has come to scrap Hinkley and to invest in viable and cheaper forms of domestic energy, including onshore wind, on which we need to lift the embargo. We need the contract for difference auctions that the Secretary of State has mentioned. They should be as wide as possible, technology neutral—as they are supposed to be—and no one should be excluded from bidding. We need to get serious about building the suggested new gas plants, and I will make the case for Scotland again: if we can get the anomaly of transmission charging sorted, we are ready to go with gas plants in Scotland that will contribute significantly to reducing the forthcoming hole in energy production.

Above all, we need to invest in energy efficiency. The Scottish Government are doing strong work and that needs to be replicated right across these islands. If we are to deal with an ever more challenging set of energy circumstances, including where we get it from, the best way is to use less of it. The benefits for everyone are substantial in the long term.

On climate change, I agree with the hon. Member for Warrington South (David Mowat), who is no longer present, that it is regrettable that the UK will not be a member of the European Union. I pay tribute to the Secretary of State for her role in the Paris talks, where the UK played a strong hand—perhaps not as strong as I and others would have liked, but it was played well and resulted in a pretty good deal. The fact we are no longer going to be at the heart of the decision-making process is regrettable, because the UK can be proud of what it has done on tackling climate change and has more it could offer the EU. We need to work out how that will happen in a renewed relationship with the EU, but there will be an absence and that is regrettable.

I have some specific questions to ask about what the process will be and what the impact of Brexit is on our commitments from the Paris talks, which have been touched upon. Our nationally defined contribution was the European Union’s NDC, and I am not clear whether that still applies to us. I assume it does, as we are still a member, but we can and should do more. I am also unclear about some issues on the ratification of the deal. Do we have to ratify this before the Brexit deal is concluded? Is there an impact on the EU as a whole? I understand that the EU ratification process requires all member states to ratify before the EU can ratify it as a whole. Ultimately, the UN requires ratification by the 55 countries that account for 55% of the emissions. So are there implications for us? Are there implications for ratification by the EU? Are there implications for the whole deal if we are not able to do that?

[Amber Rudd]

I may not answer all the hon. Gentleman’s questions in this intervention, but let me say, as I did not pick this up from the questions put by the hon. Member for Brent North (Barry Gardiner) either, that we are pushing for early ratification of the Paris treaty on behalf of the United Kingdom.

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[Callum McCaig]

I thank the Secretary of State for that intervention and very much welcome it; that is progress and I hope it can be done. I do not think there will be any opposition on that—none will come from Scottish National party Members.

I do not want to go through the negativities, but on the eve of the Paris summit we had the sweet and the sour. We had the sour on CCS, to which my hon. Friend the Member for Coatbridge, Chryston and Bellshill (Philip Boswell) referred. The sweet was the commitment from the Secretary of State and the Government on coal. That was welcome and it was a significant step forward, but are there questions about its deliverability now? I think that there are, as the commitment had a subtle caveat, which was that it would be done only if and when it was possible. The combination of the effects on investor confidence and the lack of clarity on a number of these things will make it more difficult to meet the conditions required to have that coal taken off the system. There is a requirement to look at that again. Above all, although we all welcome the fact that we are getting the fifth carbon budget and that it agreed with the recommendations of the Committee on Climate Change, we do need the action plan. That is the fundamental thing; the bread and butter of this is how we do it. The ambition, determination and commitment is there, but it will come to be only if we have a viable plan. I do think this is achievable, but it has become more uncertain because of the Brexit vote.

In conclusion, yesterday’s events probably put us in a better place than many of us expected to be in. We do not have the added unwelcome uncertainty of a nine-week leadership contest, but a power of work needs to be done by Government over the summer. I hope the Secretary of State continues in her post to do that. I look forward to continuing to work with her and to marking her homework after the summer recess.

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[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

It is a pleasure to take part in this debate. As well as having a fantastically named constituency—it is much easier to remember than Berwickshire, Roxburgh and Selkirk—the new hon. Member for Tooting (Dr Allin-Khan) did herself proud and stood tall for Tooting today. There were so many Labour MPs on the Benches around her that I wondered whether she was going to make a bid for her party’s leadership.

I also thank my hon. Friend the Member for Aberdeen South (Callum McCaig)—the other half, as he claims, of Team Callum. He failed to mention that he calls himself Callum 2.0. He is taller and has more hair, but anyone who can see his shoes knows that there are clearly some flaws in the design.

[Callum McCaig]

We need a 3.0.

[Calum Kerr]

We do, absolutely.

This has been an excellent debate—it is a shame that we did not have more such debates prior to the referendum. SNP Members did everything in our power to promote the case for the UK remaining in the European Union, and a key part of that was about keeping the protections that EU legislation has brought in the workplace, and on human rights and the environment. Unfortunately, those issues were too often brushed aside in the fierce political contest that we experienced during the referendum. Indeed, as we have heard, the environment scarcely featured in the debate about Britain’s membership of the EU.

The environmental protections that we have enjoyed in this country for decades, which cover areas such as air and water quality, emissions, waste, chemical regulation, and habitat protection, are all underpinned by EU legislation. Britain’s membership of the European Union has had an extremely positive effect on the quality of Britain’s beaches, our water and rivers, and on the air that we breathe. It has underpinned protection for many of our rarest birds, plants and animals, and their habitats. Like so many other questions on the detail of Brexit, the question of how we will continue to protect those precious assets needs a coherent answer.

Whenever we look at an issue in more detail, the value of European collaboration becomes clear. As the hon. Member for Uxbridge and South Ruislip (Boris Johnson) told the country just days after encouraging us to vote to leave:

“There will still be intense and intensifying European cooperation and partnership in a huge number of fields: the arts, the sciences, the universities, and on improving the environment.”

It is not clear how that picture of intensifying European co-operation squares with the Home Secretary’s statement yesterday that “Brexit means Brexit”.

On matters that stretch across a range of different fields that are vital to our prosperity and wellbeing, there has been little more than evasion and confusion from the Government thus far. That is why Ministers must do everything in their power to clarify how they will take forward the protection of the UK’s environment in this new political situation. There is so much about the EU that we do not want to abandon. For example, as part of my other brief, I have noticed in meetings on the digital single market a strong view that it makes sense to continue to adhere to EU directives and projects, even though we have voluntarily given up the capacity to shape them.

It is worth considering how the country’s approach to the environment has been shaped since it joined the EU. As many hon. Members have said, in the 1980s Britain was known as “the dirty man of Europe” because of widespread pollution of air, land and water. There is a risk that Britain will end up regaining that reputation. Although the UK has sometimes willingly followed the drive for environmental standards, and even at times led the way, it has taken years to get this country to meet some standards that are considered the norm in Europe.

When we consider environmental protection, it is worth remembering that in addition to the inherent worth of our landscape and ecosystems, there are key economic benefits to protecting biodiversity. Our natural environment in Scotland contributes an estimated £21.5 billion to the Scottish economy. Scotland also provides the major part of the UK’s contribution to the EU-established Natura 2000 network of protected sites, with more than 15% of our land designated for a wealth of habitats and species.

During the campaign, we heard nothing from the Brexiteers about what a vote to leave would mean for the habitats directive, for the circular economy, with its need for long-term planning and investment, or for issues around water quality, on which the UK still has a lot of catching up to do. What we did hear was a deep and often ideologically driven opposition to “red tape”. That red tape includes measures that protect rare species and unique habitats, and that prevent companies from damaging the environment or using dangerous chemicals in their products. It is now time to put the rhetorical bluster about red tape behind us and move on to focusing on what the Government’s red lines will be as they undertake these negotiations. If their priorities are muddled, or if key protections are sacrificed for short-term gain, we could be living with the impact for generations. Wherever all the moving parts of this constitutional crisis end up, we must ensure that the UK continues on the right path. As a range of environmental groups asserted before and after Brexit, co-operation and collaboration within Europe and with the EU works, because we do not solve such problems in isolation. My nation, Scotland, understands that, but does this House and do this Government also understand?

Flooding

Callum McCaig Excerpts

Wednesday 6th January 2016 Commons Chamber

[Callum McCaig (Aberdeen South) (SNP)]

rose—

[Kerry McCarthy]

I need to make some progress. As this is a devolved matter, we cannot debate it in the detail we would like today, but it is important that the motion recognises the problems with how flooding is being dealt with and the seriousness with which it is being taken in Scotland. That needs to be addressed, which is why we put it in the motion.

Climate Change and Flooding

Callum McCaig Excerpts

Tuesday 15th December 2015 Commons Chamber

[Edward Miliband]

Certainly. While we are on the subject of sorry sagas, I am afraid that one of the other sorry sagas is the CCS competition, which is a recipe for how not to make policy. It was started, believe it or not, nearly 10 years ago by the Labour Government. I think it was started under Alistair Darling. I then pushed it forward before this Government cancelled the competition, then restarted it and then cancelled it again.

[Callum McCaig (Aberdeen South) (SNP)]

It has been an incredibly sorry saga, but I do not think that the previous Labour Government can have anything positive to say about CCS, given how badly they treated it when it was going to be introduced at Longannet.

[Edward Miliband]

I am not saying it is glorious from anyone’s point of view. What I put in place was a mechanism to provide four projects. At the time, the Conservative Opposition said, as Oppositions do, that four was not enough and that there should have been six. Then they cancelled the mechanism, then they said there would be public funding, then they cancelled that competition and then they restarted it. I think we can all agree that it has not been a glorious episode.

The third reason that I think the world has changed is the five-year ratchet mechanism in the agreement. It is a mechanism to ratchet up ambition so that the pledges that countries make meet the aspiration. At the moment, we are saying 1.5 °C, but the pledges add up to 3 °C. We argued for the mechanism and the EU said before the summit that it wanted its emissions to be reduced by at least 40% by 2030. As I understand it, “at least” meant that if there was a stronger agreement, we would ratchet up the EU ambition. I ask the Secretary of State and the Government: what is the mechanism to make that happen? The world has changed, because we have a strong agreement, and the EU said at least 40%, so how are we going to ratchet it up? In his closing remarks at the summit, President Hollande said that he wanted to raise French ambition. I would be interested to hear the Secretary of State say, either today or in the future, how she thinks we can raise that ambition.

A fourth and final thing has changed since Paris, and it relates to the Secretary of State and her role in Government. I want to say something personal to her about that. I think that the thing that has changed after Paris is her negotiating power. Anyone who has been a Secretary of State knows that not all the decisions go their way—that was certainly true when I was Secretary of State. I am sure there have been a number of times over the past few months—obviously, the Secretary of State is not going to say this at the Dispatch Box—when she wanted a decision to go one way but it went another way. Successful Secretaries of State, however, recognise their power, and I say to her that she is empowered by the Paris agreement. She is empowered by it to tell the Prime Minister that he cannot just use warm words abroad and then not follow them through with deeds at home. She is empowered to tell the Chancellor that British business is, frankly, furious at the neglect of a crucial and growing sector of the economy. Above all, she is empowered to be the Cabinet champion for tackling climate change. If the Secretary of State does that—if she is that champion—she will get support from those Members on both sides of the House who believe in this cause, as I know that she does, too. They will support her in her endeavours.

In conclusion, whatever the Secretary of State does, we need to match the high ambition coalition in Paris with a high ambition coalition at home. That high ambition coalition has to combine trade unions, business and civil society. I do not see Paris as the end in any sense; it is merely the beginning—it gives us a new beginning on climate change. In the interests of future generations, we have to seize that moment.

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[Callum McCaig (Aberdeen South) (SNP)]

Floods are clearly devastating at any time, but never more so than at this time of year. We have heard a number of eloquent speeches about the devastation that the floods have wrought, but we also need to remember that we are in a fortunate position, as a rich advanced nation, in that we can afford to rebuild, to rehouse and to protect those who are affected by flooding. Those who are affected by climate change in other parts of the world will not be so fortunate.

For me, the stand-out aspect of the Paris agreement was the $100 billion for the mitigation of climate change. That will allow the poorest nations access to the finance they need to develop in a way that will allow the planet to be protected. It will also give us the opportunity to lock in low carbon emissions without locking in poverty. That is fundamental to the way in which we deal with what has rightly been described as the greatest threat that humanity is facing.

My hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (Calum Kerr) mentioned the Scottish Government’s climate justice fund, and we as a party are rightly proud of that. This is not a devolved matter, but we have sought to put our money where our mouth is. That money has to be seen as an additional contribution, however; it cannot be taken out of the pot because of what we have done. That needs to be respected nationally and repeated internationally.

We have had many debates in this place on the changes that have been made to the renewables obligation and to the green economy more widely. It disappoints me to state that our target in Scotland of a 100% renewable electricity generation is under threat because of changes to the renewables obligation and the prevarication over contracts for difference. There has also been much slower progress over heat, which represents a bigger challenge in relation to carbon reduction. It is pleasing that there will still be some form of support through the renewable heat incentive, but in the context of what we are dealing with following Paris, the £700 million that has been taken out seems like yet another short-sighted move.

Speaking of short-sighted approaches, the decision on carbon capture and storage is one of the worst that we have heard, and I will continue to bang the drum about that. There has been prevarication over CCS for a number of years. This process just needs to be done. We are talking about spending billions of pounds to prevent the symptoms, but we are not trying to tackle the cure. If we were to put £1 billion into carbon capture and storage, the reduction in the impact of flooding would be a potential game changer. Using carbon capture and storage is the most straightforward way of dealing with the matter. It also has the least impact on our economic model. It allows us to extract the fossil fuels that we discussed—shale, North sea oil or whatever—without having to invest. We will still have to invest in other technologies, but this gives us an opportunity.

[Barry Gardiner (Brent North) (Lab)]

Did the hon. Gentleman share a sense of comedy yesterday when the Secretary of State spoke on this matter? She said:

“I believe that CCS is going to play an important part in decarbonising in the future”.—[Official Report, 14 December 2015; Vol. 603, c. 1297.]

She then went on to say that, just for now, the Government are cutting the £1 billion subsidy towards it.

[Callum McCaig]

It was comedy of the blackest sort. It is short-sighted and it does not take into account how we can target the reduction at industry, as has been ably suggested.

The action here falls very short of the rhetoric, and very, very short of what is required to deliver and protect those people, both at home and abroad, from the impact of climate change. We need to up our game. It is time that we reset the reset button. I am happy if we in the Scottish National party join the high ambition coalition of the right hon. Member for Doncaster North (Edward Miliband) here in the UK. The SNP is more than ready and willing to play our part in achieving that ambition.