Carbon Capture and Storage (Scotland)

Debate between Charles Hendry and Gordon Banks

Tuesday 17th January 2012 Westminster Hall

[Charles Hendry]

The hon. Lady makes exactly the point that I am keen to focus on: there are investors who might want to come into the project—international investors who want to be part of the early development of this game-changing technology because of its global potential. We are encouraging them to try to talk to other potential investors, and we are looking at a range of projects. We are discussing one that could come through the new competition, but it is not the only one. Other projects are viable and would have greater scope for accessing the new entrant reserve fund, but until we have seen their scope and the collaboration and co-operation between different industrial players, it is hard to come to a final decision. However, I give the hon. Lady the commitment that we have a real desire to take the competition forward much more rapidly than the previous competition, and during the next few weeks, we will provide the details.

We had an industry day in December, and during the next month we will have a further industry day to provide more detail on how the competition will work. We will then open up the competition shortly afterwards with a tight time scale to encourage firms to come back. Having lost time, we want to make up for that and to see the full range of projects that can benefit from funding and find out how we can take that forward.

[Gordon Banks]

While the Minister is winding up, will he respond to a point that I made that fits in with the one that he is making about new competition and external funding? What discussions has he had with the Scottish Government about them playing a financial role? Did the First Minister approach the Minister’s Department on Longannet or any future projects?

[Charles Hendry]

I was not remotely close to winding up until I took so many interventions, but I must now do so swiftly. On Longannet, the Scottish Government did not offer funding but, to be fair, they were not asked for funding. The project is seen to be a UK energy policy with funding from the UK Exchequer. We had constructive discussions with the Scottish Government ahead of it. I think that we all share the disappointment at the reaction, and perhaps the lesson is not to announce decisions just before the Scottish National party’s annual conference. We must try to move forward in a way that takes such issues out of politics. The gain from what can be achieved to the United Kingdom is so substantial that we all need to pull together and to work together.

The hon. Gentleman said that the decision on Longannet did not send out the right message, but it was the only decision we could have made, because at the end of the day there was so much difference between what it was going to cost and what was available. We want to take the technology forward, but we cannot do so at any price. Even if funding had been available from the Scottish Government, it could not have made up the difference to enable the project to go ahead.

Much more work needs to be done, and we are taking it forward urgently on regulatory reform, storage, the supply chain, transport and storage infrastructure and planning. In England, we can certainly make it clear through national policy statements and the infrastructure planning commission that that process will work much more smoothly and without the time delays about which people have expressed concern, although planning in Scotland is a matter for the Scottish Government. More details will come forward very shortly—

Oral Answers to Questions

Debate between Charles Hendry and Gordon Banks

Thursday 20th October 2011 Commons Chamber

[Charles Hendry]

The OFT was very clear on this matter. It said that it was looking for guidance from outside input on whether there should be a Competition Commission referral. It has said that it will continue to look into cases of potential market abuse to ensure that consumers are protected.

[Gordon Banks (Ochil and South Perthshire) (Lab)]

The Domestic Bulk Liquefied Petroleum Gas Market Investigation (Metered Estates) Order of 2009—excuse me for giving its full title—from the Competition Commission has failed abjectly to increase the ability of metered estates using LPG to change. What is the Minister going to do about that?

[Charles Hendry]

The hon. Gentleman raises an important issue. One of the most complex areas to try to get a market to operate in involves entire estates metered by a single access point. I am happy to talk to him further, and to other colleagues who have concerns about this matter, to see whether there are ways to take the situation forward. I share his concerns that people living in such estates do not always get the protection to which we feel they are entitled.