Oral Answers to Questions

Charles Hendry Excerpts

Thursday 16th January 2014 Commons Chamber

[Gregory Barker]

It is a great shame that the hon. Gentleman did not have that view when Labour was in government. Let us not forget that Labour created the big six. There were 14 major energy companies when Labour took office and those were driven into the big six. The big six are Labour’s creation. We are on the side of competition, technological change and the consumer; under this Government, we are putting the consumer first.

[Charles Hendry (Wealden) (Con)]

Will my right hon. Friend look at taking some specific measures to tackle fuel poverty for those who are off the gas grid? Will he encourage the use of syndicates, which can buy oil and LPG more cheaply? Will he look again at whether this vital sector should be regulated by Ofgem, and will he explore whether some of the revenues from future shale gas development could be used directly to extend the gas grid?

[Gregory Barker]

I take my hon. Friend’s points extremely seriously, not least because he did a great deal for this group of people when he was an energy Minister. Speaking as someone who is off the gas grid, I am delighted to say that I recently joined my local community’s syndicate for buying heating oil, and it has delivered a very good price. I encourage others to do the same. The good point that my hon. Friend raises is under review. We are looking at more effective data matching to identify those in fuel poverty in rural areas who are often much harder to find than those in similar circumstances in urban areas. We are absolutely on it; I can assure my hon. Friend of that.

--- Later in debate ---

[Michael Fallon]

We have published a study by the chief scientist at the Department on the likely emission level of shale gas. Let me take this opportunity to tell the House that we have of course now signed on the first carbon capture and storage project at Drax, which I hope that the hon. Gentleman will welcome. We hope to follow that with the second CCS project in Scotland very shortly.

[Charles Hendry (Wealden) (Con)]

Will my right hon. Friend welcome the decision of Chevron this week to allocate at least 75% of the work for the Alder field development in the North sea to companies in the UK supply chain? Will he congratulate his officials in DECC’s office in Aberdeen on how they have worked tirelessly to achieve that outcome, which is a huge boost of confidence in the UK supply chain and will be worth many tens of millions of pounds?

[Mr Davey]

I am grateful to my hon. Friend for raising that issue. I will certainly congratulate my officials in the Aberdeen office, who do tremendous work both for the oil and gas industry directly and in helping the supply chain. The industrial strategy that my right hon. Friend the Secretary of State for Business, Innovation and Skills and I published last year has made a big difference in saying to those in the oil and gas supply chain that we want them to contract with British fabricators and other British companies.

Finally, I pay tribute to my hon. Friend for leading the all-party group set up under the industrial strategy to create better communications with the supply chain and to make it clear to international companies that they should consider using British companies as part of their projects.