(8 years, 1 month ago)
Commons ChamberI, too, thank the Secretary of State for his statement, although I think he may have said a little bit more to the BBC yesterday than he has to the House today. I hope that he is not joining the ever-growing list of Secretaries of State who have been slapped down by the Prime Minister for expressing their personal opinions.
I think it important that action has been taken to protect parts of the economy from the potential negative impacts of Brexit. It may constitute more than just a quarter of the issues that were on Nissan’s agenda, but that is for the Secretary of State to answer. He said to the BBC yesterday that
“our objective would be to…have continued access…without tariffs and without bureaucratic impediments”.
That has not been said today, but I think that it is correct. If that objective is not realised, however, what will be the cost to the taxpayer of a deal with Nissan? How much will it cost to make good those tariffs should they be imposed? That is the key question.
SNP Members will welcome the fact that an area of the country that voted overwhelmingly to leave the European Union has been given a special deal, and we look forward with gusto to the deal that will be given to Scotland in recognition of the fact that we voted overwhelmingly to remain in the EU. The Government are giving a flexible Brexit to the City of London and the north-east of England; I hope the Secretary of State will bring forward a flexible Brexit to protect Scotland’s economy and the 80,000 jobs that rely on our access to the single market.
The Secretary of State must recognise that the game here is a bit of a bogey: “Brexit means Brexit” will not cut it while he is going behind closed doors cutting deals with others without making this House or the public aware of what they are. While Nissan received a letter of comfort, the devolved Administrations got a hotline—a hotline that is so hot to handle that it does not get answered for 36 hours.
(8 years, 5 months ago)
Commons ChamberOrder. I think that, as I have just been advised, the rolling stock has rather left the line. I err on the side of generosity, but the hon. Lady’s supplementary was at best tangentially related to the question on the Order Paper. We will let her off on this occasion.
5. Whether he plans to review the effectiveness of the public service obligation for regional airports.
(8 years, 8 months ago)
Commons Chamber22. Thank you, Mr Speaker; I was not expecting to be called. The Government have rightly made a big deal of the Syria donor conference in London, but the UNHCR has said that financial solidarity is not enough. Why will the United Kingdom Government not listen, and why did they not step up to their responsibilities at the Geneva conference and do more to help Syrian refugees?
(8 years, 9 months ago)
Commons ChamberIt is a pleasure to speak in this Budget debate. After close to a year of asking for action on oil and gas, it would be churlish of me not to welcome what the Chancellor has announced today. However, it is important to take that in context: we have seen significant movement, but essentially we are back to what Oil and Gas UK says is the tax level from 2003.
There is positive movement on the supplementary charge, but to suggest that the tax has been cut in half is a bit of the smoke and mirrors that we are used to. Although it has been cut in half, from 20% to 10%, oil and gas fields will still pay 40%. If we compare that with the announcement of 17% for corporation tax, we see there is a stark contrast.
The effective abolition of petroleum revenue tax is perhaps more welcome. It will affect fewer fields, but by virtue of their age and their important infrastructure, those fields are vital to ensuring the continuing success of the North sea. If they lose out and that infrastructure is decommissioned, the potential domino effect could drastically reduce the profitability of the North sea.
I welcome the proposed manoeuvring of decommissioning allowances, allowing changes between the companies that would and would not have the decommissioning liability. That is fundamental. The Red Book talks about encouraging new entrants into the industry. It is very important for the future of the industry to have new capital, new expertise and, above all, new ideas and new ingenuity coming in and not to be burdened by artificial barriers in relation to decommissioning. What has been announced is very helpful, but in and of itself, it is not enough. This will not be the end of the requests from industry, from trade unions, and from me and the SNP, for further action to support this vital industry.
We have missed out on anything relating to fiscal support for exploration. The support for seismic surveys is welcome, but beyond that more action needs to be taken. There is also nothing in terms of—
Order. I am extremely grateful to the hon. Gentleman for his contribution. I think Mr Tommy Sheppard wishes to speak. No?
The clock has not been working, Mr Speaker.
I will continue to orate, and I will be as brief as I can to allow my hon. Friend the Member for Edinburgh East (Tommy Sheppard) to get in.
There is nothing on exploration, beyond seismic. There is nothing about removing the fiscal barriers for enhanced oil recovery. The activity of enhanced oil recovery will count as operational expenditure; it does not count towards the tax allowance that can be offset against income. Such a simple fiscal measure would allow these activities to happen to a far greater extent, and then everyone would be a winner.
On the effective tax rebate rate for onshore oil and gas, tax allowances for that sector are 75%, whereas the effective rate for offshore oil and gas is 62.5%. I see no reason why there should be such a difference in the investment allowance. The North sea is a far more harsh environment in which to carry out this kind of exploration activity, and I do not see why it should be penalised vis-à-vis onshore oil and gas.
There has been nothing on loan guarantees for the oil and gas sector. The Prime Minister has talked about building the bridge to the future of oil and gas. Access to finance is vital in this regard. Companies are being turned away by banks, which see the industry as something they do not wish to invest in. I hope that the measures announced today will go some way towards allaying the concerns about finance, but more can and should be done. Lots of companies have the ability, expertise and imagination to drive the innovation that the oil and gas industry will require. If they cannot access the funding and finance that is required to develop these ideas, it will be incredibly difficult for them to bring their skills and expertise to the marketplace to benefit the industry and secure the innovation and cost reductions that it has been pursuing.
While this is a welcome step, it cannot, in and of itself, be the last thing that the Government do to support the oil and gas industry. The industry has produced £300 billion in tax revenue; it contributes immensely to the UK’s balance of payments. We may not be seeing the astronomical tax revenues from oil and gas that we did before, but we cannot overestimate the importance of the role that the industry has to play for the United Kingdom and my neck of the woods in particular, in future.
I beg to move, That the clause be read a Second time.
With this it will be convenient to discuss the following:
Amendment 24, in clause 79, page 46, line 20, leave out “31 March 2016” and insert “1 March 2017”.
This amendment and amendments 25, 26, 40, 41, 42, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38 and 39 have the effect of closing the Renewables Obligation for onshore wind a month earlier than the original date set out in the Statutory Instrument: Renewables Obligation Closure Order 2014: 2388, rather than a year earlier, as the Bill does in its present form.
Amendment 25, page 46, line 25, leave out “31 March 2016” and insert “1 March 2017”.
Amendment 22, page 47, line 22, leave out clause 80.
Amendment 26, in clause 80, page 47, line 27, leave out “31 March 2016” and insert “1 March 2017”.
Amendment 27, page 47, line 30, leave out “31 March 2016” and insert “1 March 2017”.
Amendment 28, page 47, line 36, leave out “31 March 2017” and insert “1 March 2017”.
Amendment 29, page 47, line 42, leave out “31 March 2017” and insert “1 March 2017”.
Amendment 30, page 48, line 3, leave out “31 March 2016” and insert “1 March 2017”.
Amendment 31, page 48, line 6, leave out “31 March 2017” and insert “1 March 2017”.
Amendment 32, page 48, line 20, leave out “31 March 2016” and insert “1 March 2017”.
Amendment 33, page 48, line 33, leave out “1 April 2017” and insert “2 March 2017”.
Amendment 34, page 48, line 43, leave out “1 April 2017” and insert “2 March 2017”.
Amendment 35, page 49, line 8, leave out “1 April 2017” and insert “2 March 2017”.
Amendment 36, page 49, line 17, leave out “1 April 2017” and insert “2 March 2017”.
Amendment 37, page 50, line 13, leave out “18 June 2015” and insert “18 May 2016”.
Amendment 1, page 50, line 18, leave out “planning permission” and insert
“an application for 1990 Act permission or 1997 Act permission”.
Amendment 38, page 50, line 19, leave out “18 June 2015” and insert “18 May 2016”.
Amendment 2, page 50, line 20, leave out “or judicial review”.
Amendment 3, page 50, line 30, after “Act” insert
“(excluding an extension agreed for the purposes of section 78(2) of the 1990 Act or section 47(2) of the 1997 Act)”.
Amendment 52, page 50, line 34, after “application”, insert
“(provided that this period does not include any extension agreed for the purposes of section 78(2) of the 1990 Act or section 47(2) of the 1997 Act”.
Amendment 4, page 50, line 35, leave out paragraph (iii).
Amendment 39, page 50, line 40, leave out “18 June 2015” and insert “18 May 2016”.
Amendment 53, page 50, line 40, after “18th June 2015”, insert “whether”.
Amendment 6, page 50, line 40, leave out “following an appeal”.
Amendment 5, page 50, line 40, after “following an appeal” insert—
“or a decision made by the Secretary of State, Welsh Ministers or Scottish Ministers following directions given under section 77 of the 1990 Act or section 46 of the 1997 Act, and”.
Amendment 54, page 50, line 40, after “appeal”, insert “or otherwise”.
Amendment 23, page 50, line 46, at end insert
“, or
(e) evidence that—
(i) an application for 1990 Act permission or 1997 Act permission was made on or before 18th June 2015 for the station or for additional capacity,
(ii) a grant of planning permission was resolved by the relevant planning authority on or before 18th June 2015,
(iii) planning permission was granted after 18th June 2015, and
(iv) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached.”.
Amendment 7, page 50, line 46, at end insert—
“( ) evidence that—
(i) an application for 1990 Act permission or 1997 Act permission was made on or before 18 June 2015 for the station or additional capacity,
(ii) the period allowed under section 78(2) of the 1990 Act or (as the case may be) section 47(2) of the 1997 Act (excluding an extension agreed for the purposes of section 78(2) of the 1990 Act or section 47(2) of the 1997 Act) ended on or before 18 June 2015 without the things mentioned in section 78(2)(a) or (aa) of the 1990 Act or section 47(2)(a) or (b) of the 1997 Act being done in respect of the application,
(iii) the application was referred to the Secretary of State, Welsh Ministers or Scottish Ministers in accordance with directions given under section 77 of the 1990 Act or section 46 of the 1997 Act,
(iv) 1990 Act permission or 1997 Act permission was granted after 18 June 2015, and
(v) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached.”.
Amendment 8, page 50, line 46, at end insert—
“( ) evidence that—
(i) an application for 1990 Act permission or 1997 Act permission was made on or before 18 June 2015 for the station or for additional capacity,
(ii) the relevant planning authority resolved to grant 1990 Act permission or 1997 Act permission on or before 18 June 2015,
(iii) 1990 Act permission or 1997 Act permission was granted after 18 June 2015, and
(iv) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached.”.
Amendment 9, page 50, line 46, at end insert—
“( ) evidence that—
(i) an application for consent for the station or for additional capacity was made under section 36 of this Act,
(ii) the consultation period prescribed by Regulations made under paragraphs 2(3) or 3(1)(c) of Schedule 8 to this Act had expired on or before 18 June 2015,
(iii) the Secretary of State caused a public inquiry to be held under paragraph 2(2) or 3(3) of Schedule 8 to this Act or decided that a public inquiry need not be held,
(iv) consent was granted by the Secretary of State after 18 June 2015, and
(v) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached.”.
Amendment 10, page 50, line 46, at end insert—
“( ) evidence that—
(i) an application for development consent for the station or for additional capacity was made under section 37 of the Planning Act 2008,
(ii) the deadline for receipt of representations under section 56(4) of the Planning Act 2008 had expired on or before 18 June 2015,
(iii) consent was granted by the Secretary of State after 18 June 2015, and
(iv) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached.”.
Amendment 11, page 50, line 46, at end insert—
“( ) evidence that—
(i) planning permission for the station or additional capacity was granted on or before 18 June 2015,
(ii) planning permission under sections 73, 90(2), 90(2ZA) or 96A of the 1990 Act or sections 42, 57(2), 57(2ZA) or 64 of the 1997 Act, a consent under section 36C of this Act, or an order under section 153 of, and paragraph 2 or 3 of Schedule 6 to, the Planning Act 2008 varying the planning permission under clause 32LJ(4)(i)(i) was granted after 18 June 2015, and
(iii) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached.”.
Amendment 12, page 50, line 46, at end insert—
“( ) evidence that—
(i) 1990 Act permission or 1997 Act permission for the station or additional capacity was granted on or before 18 June 2015,
(ii) consent under section 36 of this Act that permits a greater capacity for the station than that permitted by the planning permission under clause 32LJ(4)(j)(i) was granted after 18 June 2015, and
(iii) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached.”.
Amendment 13, page 50, line 46, at end insert—
“( ) evidence that—
(i) planning permission for the station or additional capacity was granted on or before 18 June 2015,
(ii) planning permission under clause 32LJ(4)(k)(i) was superseded by a subsequent planning permission granted after 18 June 2015 permitting a station with the same or a lower capacity than that granted under the planning permission referred to in clause 32LJ(4)(k)(i), and
(iii) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached.”.
Amendment 14, page 50, line 46, at end insert—
“( ) evidence that—
(i) planning permission for the station or additional capacity was granted or refused on or before 18 June 2015, and was subsequently confirmed or granted after that date following a statutory challenge under section 288 of the 1990 Act, section 237 of the 1997 Act or section 118 of the Planning Act 2008, or following a judicial review, and
(ii) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached.”
Amendment 15, page 50, line 48, leave out sub-paragraph 5(a) and insert—
“(a) evidence of an agreement with a network operator to carry out grid works in relation to the station or additional capacity and was originally made on or before 18th June 2015 notwithstanding the fact that may have subsequently been amended or modified, and
(ab) a copy of a document written by, or on behalf of, the network operator which estimated or set a date for completion of the grid works which was no later than 31 March 2017; or”.
Amendment 40, page 50, line 49, leave out “18 June 2015” and insert “18 May 2016”.
Amendment 41, page 51, line 10, leave out “18 June 2015” and insert “18 May 2016”.
Amendment 16, page 51, line 26, at end insert
“and includes planning permission deemed to be granted in accordance with section 90 of that Act”.
Amendment 17, page 51, line 31, at end insert
“and includes planning permission deemed to be granted in accordance with section 57 of that Act”.
Amendment 18, page 52, line 6, leave out “from a recognised lender”.
Amendment 42, page 52, line 16, leave out “31 March 2017” and insert “1 March 2017”.
Amendment 19, page 52, leave out lines 27 to 29, and insert—
“In this section “recognised lender” means a bank or financial institution or trust or fund or other financial entity which is regulated by the relevant jurisdiction and which is engaged in making, purchasing or investing in loans, securities or other financial instruments.”.
Amendment 20, page 52, line 32, leave out subsection (6).
Amendment 43, page 54, line 19, leave out “31 March 2016” and insert “1 March 2017”.
Amendment 44, page 54, line 21, leave out “31 March 2017” and insert “1 March 2017”.
Government amendment 50.
Amendment 45, in clause 81, page 56, line 3, leave out “31 March 2016” and insert “1 March 2017”.
Amendment 21, page 56, line 3, leave out subsection (a) and insert—
“(aa) by a 33kV connected onshore wind generating station consented after 30 September 2015, or
(ab) by a cluster connected onshore wind generating station consented after 31 October 2015, and”.
Amendment 46, page 56, line 6, leave out “31 March 2016” and insert “1 March 2017”.
New clause 2 is straightforward. It would re-devolve the power to issue a closure order in respect of the renewables obligation for onshore wind back to the Scottish Government, where it used to belong. That power was re-reserved, so to speak, on the explicit understanding that there would be no changes—no closure and no material impact on Scotland from agreeing to that proposal. The proposal would have allowed for closure of the renewables obligation later next year, as had previously been agreed.
We have been through this. There has been extensive debate on the renewables obligation. It is worth reiterating briefly some of the concerns. As I said, power over the renewables obligation was removed from Scotland against the explicit undertaking that the Government had given to Scottish Ministers. An element of betrayal of trust has come about. That has woven its way through the entirety of the Government’s handling of onshore wind and the closure of the renewables obligation. For a long time the industry had trust in the Government. That trust has vanished.
Today’s debate and a number of the amendments offer the opportunity to improve the measure that introduces the closure of the renewables obligation, notably the numerous amendments tabled by my hon. Friend the Member for Coatbridge, Chryston and Bellshill (Philip Boswell), who has meticulously detailed how the closure of the RO and the accompanying grace periods could be carried out in a way that is fairest to developers.
Last week the Energy and Climate Change Committee produced a report on investor confidence which suggested:
“Sudden and numerous policy announcements have marred the UK’s reputation for stable and predictable policy development.”
That is fairly damning. I am not steeped in the ways of Select Committee reports and how Committees finesse their arguments, but that is a clear criticism of the Government’s policy and how it has been implemented. It did not need to be done that way.
Through the various stages of the Bill we have accepted that the Government have a commitment to pursue that policy. We disagree with it. Their policy is short-sighted and is not the correct way of going about things. Onshore wind, in the view of the Scottish National party, has a significant role to play in the energy mix in the United Kingdom and should not have been taken out of the mix in a rather crude and cack-handed manner, but the Government have chosen to act in that way. [Interruption.] If the Government are to do that, they should do so in the best way possible. [Interruption.] I feel there is something else happening that I am not aware of.
Very disorderly conduct. The hon. Gentleman is pressing a serious case. If I may, at the risk of making an in-joke, be permitted to say this, that whatever is the subject of this debate, fortunately, not least for him, Otis is not.
Fortunately for the hon. Gentleman, he does not need to do so. He is innocent. He has been transgressed against; he has not transgressed. He can now speed ahead with his oration, to which we look forward.
Speed is the operative word, I think. We have called for the re-devolution of the power and for the grace periods to be dealt with in the most appropriate manner. In its manifesto and in debates the Conservative party has professed a desire to see local control of this matter, and nobody would argue with that. However, that requires that we respect local decisions, but the grace periods as they stand do not do that. That is why the new clause and the amendments are necessary, particularly amendment 8, in the name of my hon. Friend the Member for Coatbridge, Chryston and Bellshill, which relates to planning decisions at committee that were dealt with before the closure date, but where the approval certificate was not granted, in Scotland, owing to section 75 of the Town and Country Planning (Scotland) Act 1997, on planning gain—in England, I think it is section 106 of the Town and Country Planning Act 1990. This issue is clearly about local decision making, and the Government should give their consent so that it can be included in the Bill.
We accept that the change is going to happen. Having been explicitly opposed to it, the industry now sees that it is better to have some certainty, rather than continued uncertainty. However, that certainty needs to be correct certainty—it needs to be fair certainty and it needs to be certainty that does what it is intended to do.
We should respect local decision making. Where locally elected bodies—councils in England, Scotland, Wales and Northern Ireland, although there are different stipulations there—have agreed to projects but have not been able to get their certificate to allow them access to the renewables obligation because of the technical nature of decision making around planning gain and other such issues, that is simply wrong.
I am grateful to the hon. Gentleman for that. He will be aware that the Chancellor and the Prime Minister have looked carefully at the matter, so I hope that he will be pleased. I assure him that his interests and the interests of the UK continental shelf are being carefully considered. I hope that the right hon. Member for Orkney and Shetland will be content not to press the new clause to a vote.
Finally—hon. Members will be pleased to hear that—I turn to amendment 47, which was tabled by the hon. Member for Wigan and others. The amendment would oblige the OGA to consider the most advantageous use of North sea infrastructure for the overall benefit of oil and gas extraction prior to the decommissioning of such sites. I am delighted to note the support across the House for the measures to establish the OGA and give it the powers needed to maximise economic recovery. The impact of the fall in oil prices on industry makes that even more critical.
Although we are taking urgent steps to stimulate investment in exploration, it is equally important to the overall viability of the North sea that we make the best use of infrastructure in order to mitigate the risks of premature decommissioning. That requires a holistic approach in which operators, licence holders and infra- structure owners collaborate to ensure the maximum economic recovery of petroleum from the UK continental shelf. That is precisely provided by the OGA’s principal objective set out in section 9A of the Petroleum Act 1998.
The strategy to maximise economic recovery further addresses that issue. It includes duties to plan, commission and maintain infrastructure in a way that meets the optimum configuration for maximising the value of economically recoverable petroleum, taking into account the operational needs of others. The strategy and the measures in the Bill ensure that before commencing the decommissioning of any infrastructure in relevant UK waters, the owners of the infrastructure and the OGA must ensure that all viable options for its continued use have been suitably explored. The OGA is already working to support a stable and sustainable decommissioning framework focused on improving late-life management. The OGA will publish its decommissioning sector strategy early in the summer. I hope that hon. Members have found my explanation reassuring and will be content not to press the amendment to a vote.
Order. I should gently point out to the House that hon. or right hon. Members who were not present at the start of the Secretary of State’s statement should not expect to be called. Now that I have made that point, it would be rather unseemly for them to continue to stand, as well as fruitless.
I add my thanks and that of my party to the Secretary of State, her team and all those both at home and abroad who made the deal possible. The term “historic” has rightly been used in the rhetoric, but we will be judged not on words but on deeds.
We very much welcome the money to be provided to those most at risk from climate change and to those who have contributed least to it. That is the theme of climate justice, which I have spoken about here before. The deal is not perfect, and it has been acknowledged that it is not enough. We need to up our game both at home and abroad if we are to meet the target of a 2° C rise or well below, and extensively so if we are to meet the aspiration of a 1.5° C rise.
It strikes me that we almost have two Secretaries of State—the one who made her eloquent statement extolling the virtues of the low-carbon economy, and the one who answered questions and reiterated some of the appalling betrayals that the green economy has suffered at the hands of this Government. She said in her statement that there are no excuses, but for the past six months I have heard excuse after excuse. On onshore wind—excuses. On the solar feed-in tariffs—excuses. On carbon capture and storage—excuses. On the Green Investment Bank—yet more excuses. Will she rethink those policies and reinvest in them, or are we to hear yet more excuses?
The world stands on the brink of a global green revolution, and the economic possibilities are enormous, yet we seem determined to throw away our lead in various technologies. To use the words that my hon. Friend the Member for Na h-Eileanan an Iar (Mr MacNeil) regularly uses, the Government are being penny-wise but pound-foolish. There has been betrayal on carbon capture and storage—I had to question my hearing when it was said that it had a bright future in the UK following the recent decision. It might, but it will be technology developed by others, and others will make the money out of it. That is so short-sighted that it is beyond belief.
Scotland wants to play its part, and we can play our part, but we require this Government to match their rhetoric with deeds. Will the Secretary of State back the green economy and allow us to play our part, or will we hear yet more excuses?
(9 years, 2 months ago)
Commons ChamberOrder. The Prime Minister had finished his answer, for which we are extremely grateful, but progress has been very slow and I want to get Back Benchers in—and I will do so.
Q2. The Scottish Government have estimated that the apprenticeship levy introduced by the Chancellor in the July Budget will raise £391 million from Scotland, with £146 million of that coming from the public sector. As yet, there has been no confirmation that a single penny of that will come to Scotland to fund our distinct modern apprenticeship programme. Will the Prime Minister confirm today that Scotland will receive our fair share of this funding, or are we seeing another pig in a poke from this supposed one nation Government?
(9 years, 5 months ago)
Commons ChamberThe hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) was, on my suggestion, given a Christmas present by his brother of a book on yoga, but to date there is no evidence that he has read the first chapter.
Exploration in the North sea is at its lowest level for decades. Will the Chancellor bring forward in next week’s Budget proposals to incentivise exploration for oil and gas to boost production and to protect employment?
(9 years, 6 months ago)
Commons ChamberAs colleagues will know, I am almost invariably keen to get everyone in at business questions, but we do now need to speed up a bit. If account of that could be taken, it would be helpful.
I shall be incredibly brief, Mr Speaker. We have touched on the ending of the subsidy for renewable onshore wind. With a stroke of the pen, a written statement and a press release, £3 billion-worth of investment in Scotland is at risk. When will the Secretary of State come to this House to explain that disastrous decision?