(5 years, 7 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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I am afraid that I do not agree with the hon. Lady on this. The British people voted to leave, and I am determined to ensure that I fulfil my manifesto commitments to my constituency, which also voted to leave, by making sure that that happens. I want to ensure that we can mitigate any circumstances that may arise from leaving the European Union, to ensure that we continue to benefit from the opportunities that we have had as a member as we move forward into the new relationship with our EU partners and also move forward internationally.
On the votes, when it comes to looking at the deal and the future economic partnership, I ask the hon. Lady to please, although it sounds like she will not—[Interruption.] Brexit is happening, and we need to ensure that we have—[Interruption.] Hon. Members seem to query that and suggest that they do not want it to happen, but I am afraid that is what the British people voted for. I am sure that when we, as a House— [Interruption.] I cannot actually believe what I am hearing from Opposition Members. When they stood in 2017, they also said that they were going to respect the result of the referendum; it sounds like they do not believe in the manifesto commitments that they made.
However, I believe that the deal is a good one. It is vital for scientific and education partnerships going forward, which it will protect for the next two years, and will allow for future negotiations, in order to make sure that we can continue to work with our European neighbours.
As a member of the board of the Liverpool School of Tropical Medicine, I agree with my hon. Friends the Members for North East Somerset (Mr Rees-Mogg) and for Crawley (Henry Smith) about the importance of encouraging students from low-income countries to come here. I would like us to provide more scholarships and bursaries out of our international development fund than we do at the moment; we are falling behind quite a number of other countries, but by doing that we can increase our influence. Does the Minister agree that it is absolutely vital to avoid any kind of cliff edge and have a smooth transition from the arrangement we have now, which is beneficial, to the future arrangement, and that we do not suddenly cut off opportunities, both for our students studying in the European Union and vice versa?
I thank my hon. Friend for his comments. When it comes to tropical diseases, future scientific research on climate change or the opportunities that agri-tech might present to developing countries, it is absolutely right that we look at what we can do to play our part to help the poorest countries across the globe in those endeavours. I will be happy to discuss with him, and the Liverpool School of Tropical Medicine when I am next up in Liverpool, any potential policy initiatives that he might have in this sphere.
On the point about a transition period, the deal is a transition. We will be able then to get round the table and open up the square brackets around our future relationship, which are currently closed because of Members’ indecision and failure to back this EU deal—the EU helped to put it together and backs it also—so that we can move forwards together, safeguarding scientific partnerships and working on education partnerships.
(5 years, 7 months ago)
General CommitteesI would also point to the fact that we have seen 150 MW of battery storage through the recent T-4 auction; 1.1GW of DSR and 2GW of new interconnectors. There is obviously a variation. When it comes to the capacity market, this technology is based on delivering the most cost-effective mechanism, but we have demonstrated the need to introduce new capacity as and when needed.
When it comes to the Government’s record on switching away from coal, I should say that we have invested £92 billion in clean energy and quadrupled the renewable electricity capacity since 2010: the share of electricity from low-carbon sources is now 56%. In quarter 3 of 2018, 33% was from renewables, an increase from 6.9% in 2010.
If the Minister of State for Energy and Clean Growth were here, I am sure she would expound on the recent offshore wind sector deal, which was published two weeks ago. We now have the ability in offshore wind to exceed 30GW of installed operational capacity—more than we expected. We have already met the 2020 renewable targets. That is the same for solar capacity: in 2013, we estimated it would reach between 10GW and 12GW by 2020. The latest figures indicate it has reached 30GW, enough to power more than 3 million homes.
Important progress has been made. In terms of the five-year review of the capacity market that the hon. Gentleman mentioned, in line with the requirements set out in the Energy Act, we intend to publish a report that summarises our five-year review of electricity market reform this summer. One chapter of that will cover the five-year review of the capacity market.
On the hon. Gentleman’s specific point about meeting the Minister for Energy and Clean Growth, I should say that she will be delighted to discuss the opportunities for reform of the capacity market and to look at how we can deliver the best capacity market in the future.
When we look at the issue of agreements, the hon. Gentleman is right that the majority of capacity types can only access one-year agreements. An exception is obviously made for new and refurbished plants because investors require more certainty when investing in large capital projects; those agreements are for up to four years. However, we believe that longer-term agreements, where not needed, risk needlessly locking consumers into paying a long-term price, while there are challenges to encouraging business to engage in demand-side response. The same capital costs do not apply there. No clear evidence suggests that longer-term agreements are necessary to ensure demand-side response can compete effectively.
Opposition Members have referred to the long-term problem with capacity, particularly with the nuclear baseload coming off-stream in the late 2020s and coal stopping between 2023 and 2025. At the same time, the Government are quite rightly encouraging increased uptake of electric vehicles—I declare an interest in that I drive one myself. This will place great demands on the grid and generation capacity. What plans do the Government have to make sure that the increased demand will be met by increased supply and to replace the energy that is coming offline?
The question here is one of short-term capacity. We mentioned earlier that the electricity margin is 11%, which the highest it has been for the past five years. However, we cannot be complacent about ensuring that we have that insurance mechanism in place. That is why the capacity market is so important.
I point to the importance of investing in future technologies, while, side-by-side, we look at existing technologies and ensure that the capacity market adopts those providers. We have the Faraday battery challenge, which is quite close to where the hon. Gentleman is in the Midlands—that is £280 million worth of investment. When it comes to the supply of electricity, making sure that we have efficiency within a system, particularly with electric vehicles, is a key part of our grand challenge for Motability, particularly in cities. Work is being done to ensure that we can deliver on the power supply for that upscaling in electric vehicle manufacture and uptake, and I am struck by that work.
I am equally passionate about future technologies that we will need to invest in. We talked about nuclear fission, but we need to continue to work towards nuclear fusion with our European partners. The European Commission recently allowed a £100 million extension of the Joint European Torus contract at Culham. Going forwards, we are keen to associate with ITER, the international thermonuclear experimental reactor in France.
The point that the hon. Gentleman raises is right. We need to ensure that we have a portfolio of energy supplies as we reduce our dependence, as we have done successfully on fossil fuels and gas, but we can and will do more. It is important to recognise that this country has the most successful record when it comes to the introduction of renewables as a percentage of the overall grid supply.
We appreciate that the Court’s judgment has created the uncertainty and the potential difficulties that the hon. Gentleman mentioned. The Commission is investigating the scheme and has confirmed that it is moving on to the next phase. That is an important step as we work to reinstate state aid approval for the capacity market as soon as possible. The regulations provide legal certainty and confidence to industry and the electricity system about how the capacity market will operate during that standstill period pending state aid approval and about what we expect after that period. We continue to believe that the capacity market is the right mechanism for delivering security of supply at the lowest cost. The regulations are essential to preserving the operation of the capacity market to the extent that is possible when state aid approval is outstanding. The regulations provide vital confidence to industry and safeguard a secure system.
We have had an important and detailed debate about some of the wider policy implications. I have set out an opportunity for the hon. Gentleman to have a meeting with the Minister for Energy and Clean Growth. The regulations prescribe for the immediate future of the capacity market. That is important, and I urge all Members to support them.
Question put and agreed to.
Resolved,
That the Committee has considered the draft Electricity Capacity (No. 1) Regulations 2019.
(5 years, 10 months ago)
Commons ChamberA total of 390,000 18 to 24-year olds are involved in starting businesses in the UK, and the British Business Bank has provided £52 million in start-up loans to young people since 2012. In December we launched a youth engagement programme, including a celebration of UK science, technology, engineering and maths projects and an industrial strategy competition to inspire 13 to 19-year-olds.
I welcome that and I welcome the start-up loans scheme, which has helped a lot of young entrepreneurs, but will the Minister talk with his counterparts in the Department for Education to see how we can embed entrepreneurship and life skills in business into the school curriculum?
Absolutely. Indeed, as a Minister also in the Department for Education, I work with that Department and understand the importance of ensuring that young people develop entrepreneurial skills. Our careers strategy launched in 2017 places a strong emphasis on our interaction with entrepreneurs. We have connected more than 2,000 schools and colleges with enterprise advisers, launched a £2.5 million investment fund to support employer encounters, and created 20 new career hubs.