Oral Answers to Questions Debate
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Main Page: Chris McDonald (Labour - Stockton North)Department Debates - View all Chris McDonald's debates with the Department for Energy Security & Net Zero
(1 week, 1 day ago)
Commons Chamber
Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
Clean energy is a huge economic opportunity for every corner of the country. Our clean energy jobs plan highlighted 860,000 high-quality jobs across the whole of our nation by 2030—jobs that young people will not need to leave their home town for.
Steve Witherden
As we face the second fossil fuel shock in half a decade, it is right that the Government are scaling up clean, home-grown renewable energy through the energy independence Bill. However, clean energy jobs are not yet being created at the pace required to replace losses in oil and gas. How will the Government guarantee secure, well-paid jobs with strong trade union rights throughout the green transition?
Chris McDonald
My hon. Friend is right to point out the vulnerability to oil price shocks—Wales has been identified as a particularly vulnerable area. Like me, he has paid close attention to the report by the former Member for Darlington, Alan Milburn, on the need to provide opportunities for young people; in fact, I believe he has invited Alan Milburn to a meeting of his all-party parliamentary group later this week. The clean energy industry is one of the industries that will provide good-quality jobs, and in the Department we are using grants and procurement to ensure that we have strong trade union engagement.
The hon. Member for Montgomeryshire and Glyndŵr (Steve Witherden) is right: those jobs are not there yet, and we risk losing the incredible talent in our energy industry as my constituents move abroad to find jobs. My constituency has historically had some of the highest numbers of patents in the UK, so we have the innovators we need for the energy transition. How will the Minister and the Government ensure that this gap is filled and that people can find jobs to power that transition, rather than leaving us because there are no jobs just now?
Chris McDonald
The hon. Lady raises an important point about managing the transition, and that is certainly what this Government are doing. I just want to challenge the point about the number of jobs being created by the number being lost. I know that the Opposition are always keen to quote the research from Robert Gordon University, but it does point to more jobs being created than lost. Actually, the recent report from the Confederation of British Industry now says that 1.1 million jobs in our economy are now dependent on net zero. But clearly, we do need to support the transition—it will not happen on its own. That is why, through our North sea transition funding and the opportunities through our clean energy technical colleges, we are providing that opportunity for people.
Mike Reader (Northampton South) (Lab)
Twenty-five per cent of the manufacturing output of the east midlands is in the food and drink sector, but that sector feels left behind in the clean energy transition without support from Government programmes, such as the British industrial competitiveness scheme. What support can the Minister give to the food and drink sector to ensure that it continues to prosper in the east midlands and to create jobs in constituencies such as mine?
Chris McDonald
The Government and I recognise the importance of the food and drink sector. My hon. Friend is right to point out that the sector is not included in the British industrial competitiveness scheme, but our boiler upgrade scheme does apply to these industries. One thing that I am doing is looking at the role of third-party intermediaries. The Department intends to provide a regulatory role for Ofgem, and subject to parliamentary time, we should be bringing forward measures that will benefit the food and drink industry.
Harriet Cross (Gordon and Buchan) (Con)
This Government are not supporting workers in the oil and gas sector in north-east Scotland and Aberdeen; they are supporting workers in the oil and gas sectors of Norway, Qatar, America and even now Russia. The recent energy transition survey from the Aberdeen and Grampian chamber of commerce showed that 37% of respondents had seen staff or colleagues move abroad. What will it take for this Government to see the damage they are doing and end their ban on new licences, end the energy profits levy, permit Rosebank and Jackdaw, and get Britain drilling again?
Chris McDonald
I have to say that caring for the transition of our oil and gas workers is not something on which the Opposition have a monopoly, because only the Government have taken any action. The previous party when in government oversaw a decline in the North sea and did nothing to support a transition. This Government are supporting the transition in the North sea. Through our tiebacks policy, we are ensuring that we can make the best use of the available resources, but by continuing to invest in our cheapest form of energy and by ensuring that the supply chains are here and that the skills remain here, we will create those opportunities for people to work in those areas of the UK.
The truth is there is no just transition. Everybody can see that except for the Government Front Bench. I spoke to a woman in Aberdeen just yesterday, born and raised in that city and raising her family there. She had worked in oil and gas and, actually, was proud to be playing her part in developing the energy technologies of the future. She was a lifelong Labour voter—no longer, because she has now been made redundant. Like so many others in that city, she is now looking overseas because of this Government. What does the Minister have to say to Aberdonians like her?
Chris McDonald
Clearly, on a personal level, I say to the hon. Member’s constituent that I fully understand the position she is in, having lived through such transitions myself. But the difference with this Government is that we are taking care to ensure that communities are supported—1.1 million jobs now in net zero, £105 billion of gross value added and £90 billion invested in clean energy industries since this Government came to power. We are building the British industry of the future and attracting investment to do that. We are creating the jobs of the future, while the Conservatives sat and oversaw a decline.
We have been over this before: BP, Hunting, Harbour, Chevron, Well-Safe, Petrofac, Ithaca Energy and, just this morning, Xodus Group are all laying people off. Xodus specifically blamed the slowdown in the roll-out of renewables due to the decline in oil and gas in the North sea. The former Health Secretary the right hon. Member for Ilford North (Wes Streeting), Tony Blair, academics, Scottish Renewables, the chair of GB Energy and apparently quite a number of the Cabinet agree with us on the Opposition side of the House and with the public that we must keep drilling in the North sea while we have a demand and while it is there. When will the Government listen to everyone else, end this ideological obsession, overturn this and get Britain drilling?
Chris McDonald
I think we have found something on which we can agree, which is that we need to invest in renewables further and faster. I look forward to those on the Opposition Front Bench supporting our clean power 2030 plan.
Vikki Slade (Mid Dorset and North Poole) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
Supporting businesses with the cost of energy is a priority for the Government. We have expanded support through the British industrial competitiveness scheme and increased discounts on electricity network charges, and we stand ready to act if market conditions worsen due to the middle east crisis.
Clive Jones
Surelock McGill, based in my constituency, is a world leader in the manufacture of door locking systems. It recently acquired a casting foundry to ensure that its manufacturing process proudly remains entirely in the UK, but the foundry is struggling with ever-increasing energy costs. What will the Government do to support local businesses that are proud to contribute to the UK economy yet seem to be suffering as a result of their determination to keep manufacturing in the UK?
Chris McDonald
In the specific case that the hon. Gentleman mentions, if the company is operating a ferrous foundry, that will be part of the British industrial competitiveness scheme. If it is a non-ferrous foundry, he may wish to share further details with me, because I have had representations on both copper and aluminium foundries, which I am looking at very carefully.
Not only are small businesses facing increasing energy bills, but they are dealing with prohibitive costs in connecting to the grid when they want to expand. These businesses want to grow, invest and create jobs, and we should be helping them, so what is the Department doing to bring down the cost of grid connection and ensure that the price of accessing reliable power is never the reason that a small business cannot get off the ground or expand?
Chris McDonald
We are concerned about the ability of businesses to connect to the grid, both to expand and to invest in new production facilities. Part of the work we did on reordering the grid queue was to help with that, but my colleague the Minister for Energy has commissioned an Ofgem end-to-end review so that we can bear down on the cost of grid connections.
Baggy Shanker (Derby South) (Lab/Co-op)
From Denby Pottery to Royal Crown Derby, soaring energy costs are hitting our ceramics industry hard, putting more skilled jobs at risk. I welcome the recently announced ceramics support package, which will help bring costs down, but can the Minister confirm that he will work with colleagues across Government to ensure that energy bill support reaches the ceramics manufacturers who need it the most?
Chris McDonald
I thank my hon. Friend and all the other MPs from the Stoke and Staffordshire area for their work in championing the ceramics industry. First, let me say how sad I was to hear the news about Denby, as that company proceeds into administration. The Government are providing support to the workforce. On the point he raised, with the Chancellor of the Exchequer’s support we are providing £120 million to enable ceramics companies to invest in lower carbon production—essentially, electrical furnaces—so that they can decarbonise and reduce their operating costs. I will be working closely with ceramics MPs on the implementation.
Chris Vince (Harlow) (Lab/Co-op)
I thank the Minister for his answers so far. I have recently written to the Department for Business and Trade about the Lea Valley growers, who are fantastic fruit and veg glasshouse growers in my constituency of Harlow. That hugely energy-intensive business is important to food security, and indeed to this country’s security more generally. What work is the Minister doing across Departments and with the Department for Business and Trade to ensure that no energy-intensive business, including the Lea Valley growers, is forgotten?
Chris McDonald
I thank my hon. Friend for his letter on the Lea Valley growers. I have had discussions as a result of his prompting with Ministers in other Departments, not only about the Lea Valley growers, but about the horticulture sector more generally. I will update him on that in response to his letter. I thank him for saying that my answers so far have been acceptable, and hopefully that one is too.
Dr Al Pinkerton (Surrey Heath) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
As I mentioned in answer to an earlier question, we are concerned about the role of third-party intermediaries and the proper functioning of the market, and, subject to finding parliamentary time, we intend to bring forward the opportunity for Ofgem to act as a regulator in that regard. The hon. Gentleman’s question clearly identifies why it is so important that we return to energy stability in the UK through our own home-grown clean energy.
In an earlier answer, the Minister for Energy mentioned the money being spent on carbon capture, but has he considered the impact of his net zero policies on carbon release? Last week, I visited a site in the Sperrins where 250,000 metric tonnes of peat are to be stripped from the hillside in order to put in the infrastructure for a wind farm. That is similar to what is happening on peatlands all over England. What assessment has the Minister made of the impact of that and will he—