(3 weeks, 4 days ago)
Commons ChamberI know that the hon. Gentleman’s party has changed position on this recently, and I welcome that change. As I have said, the North sea is a foundational industry. It is not just about the oil and gas it provides. It is not just about the tax revenues. It is not just about the jobs that exist within that industry. It is about all those other industries it supports, including the chemicals and plastics industries. By the way, even the renewables industry supports more drilling in the North sea, because it needs the specialist rigs, the undersea technologies and the exact same workers. There are so many industries and wider economies that the Government are killing just because of the ideological bent of this Secretary of State.
I will make a bit more progress.
Here is the fundamental bind that the Labour party is in. It does not matter who its next leader is—they will all fail. Its supposedly popular leadership contenders will become unpopular very quickly when they cannot keep their promises. It happened to us in government. It is happening to Labour now. It is happening to Reform at council level. It will happen to whoever is in government next unless they face up to the trade-offs that get us better growth.
Growth is the antidote to so many of our problems, but to deliver it, we need two things: cheap, abundant energy and economic freedom. By shutting down the North sea, cancelling nuclear projects and keeping a distorted electricity market in place, the Government are making energy scarce and expensive. Being part of the EU does not solve that problem. The EU leaders themselves rail against their own energy policy. Reindustrialisation is just a meaningless slogan unless we back the North sea, axe the carbon taxes that are killing British industry and cut the cost of energy. If none of Labour’s contenders has the courage to say anything about these issues, nothing will change.
Alongside cheap, abundant energy, the most important ingredient for growth is economic freedom, but the Labour party openly stands for more state control, more tax and spend, more red tape on employing people, more expensive energy, less AI, fewer profits and more subsidies. It has been on this path for two years now, and what do we have to show for it? Higher inflation, weaker growth and soaring unemployment. Why would anyone want more of this? Families are working harder and harder and getting less and less at the end of the month. And if people want full-fat socialism, why would they choose Labour when they have the boob whisperer offering them bigger and better?
Our whole system is flooded with caution. Nobody is incentivised to take any risks.
That is what is making us poorer. The truth is that the personalities in the Labour leadership race do not matter. Unless we get cheap, abundant energy, remove the legal straitjackets and onerous taxes, and fix the broken regulators and the sluggish machine of government to set the economy free, nothing is going to change.
If Labour Members think that Andy Burnham has the answers, let me tell them this. Andy is like the fun uncle who sits on the sidelines saying whatever he wants without anybody holding him accountable: “Let’s have ice cream for dinner! Let’s go to the zoo next week! Let’s nationalise everything! Who cares about the bond markets? Let’s rejoin the EU!” He has said whatever he liked because he has never had to pick up the bill. Now that he is actually looking at being in charge, he is having to go back on all those promises. Members should ask him this: how is he going to fund his nationalisation plans? He wants to stick to the fiscal rules. Is he really saying that he is going back to taxpayers, who already face the highest tax burden in history? When he talks about reindustrialisation, they should ask him whether he supports the Secretary of State’s plans to shut down the oil and gas industry—the biggest act of industrial self-harm committed in generations. If Andy Burnham wants more powers at a local level, amen to that—I could not agree more—but Labour Members should ask him how he can argue for economic freedom in one breath, while in another dictating to people what tumble dryers or cars they have to buy.
If Labour Members really cared about growth and reindustrialisation, they would axe carbon taxes, get Britain drilling, double down on nuclear and make electricity cheap. In short, they would put the national interest ahead of the Secretary of State’s ideology and vote with us tonight.
(2 months, 2 weeks ago)
Commons ChamberThe two Ministers are Scottish MPs. They have been to industry, and they know what people in those areas are saying. They know the jobs that are being lost. It is so blindingly obvious that we should use things that we make in this country, rather than using dirtier imports from abroad. The question they need to ask themselves is, why is it that their Secretary of State cannot see the truth?
Fifthly, the Government say that new fields will take too long to get up and running. That is dangerous, short-termist rubbish. Jackdaw and Rosebank could be up and running by Christmas. They have been sat on the Secretary of State’s desk gathering dust. The Government are hiding behind the process. I was part of the process, and it is in the Secretary of State’s gift—it is up to him to make the assessment. We are in an energy crisis, and he could speed things up if he chose to do so. Jackdaw alone could produce enough gas to heat more than 1.5 million homes. Labour’s Chancellor commended Norway and Canada for drilling more—[Interruption.] That is what she said last week. She said that
“every country has got to play their part”
by generating more oil and gas. Government Members should ask themselves why their party position seems to be to support the oil and gas industry anywhere but Britain.
Ms Polly Billington (East Thanet) (Lab)
Does the right hon. Lady agree with her shadow Energy Minister, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), when he said:
“Look, nobody’s saying that net zero was a mistake. Net zero in the round was the eminently sensible thing to do. We need to decarbonise and we need to have an ambitious target to aim for”?
I would thank the hon. Lady, but I do not think it takes much effort to read out a Whip’s question. The question she needs to answer is why she is supporting a policy that will increase British emissions. She is supporting a policy that means we are importing goods with higher emissions.
I have laid out five bad arguments that have been thoroughly disproved by people outside this Chamber whom the Government supposedly respect. Those five bad arguments spun by the Secretary of State should be consigned to history. What the North sea can give us is what it has been doing all along: stronger energy security, a stronger environment and a stronger economy. Are those not things that we want the next generation to have? The question that the Government need to answer is this: what reason do RenewableUK or their very own chair of Great British Energy have to back the North sea if it does not give us those very things? Maybe—just maybe—it is time for the Government to admit that their Secretary of State has approached his role with a dangerous, blinkered ideology, rather than being interested in the national interest. Perhaps even they realise that they are once more being marched up the hill on the wrong side of history and on the wrong side of public opinion, when we all know that there will be an inevitable U-turn from the Prime Minister and the Chancellor in a few weeks’ time.
It is mad at the best of times not to want to make the most of our own resources. The idea that one should ban industry if it does not change prices in this country is, let us be clear, an argument to shut down all business in this country. There are benefits to making things in Britain: jobs, tax revenue and self-reliance. The Labour party used to understand that.
(1 year, 9 months ago)
Commons ChamberThis is really important, because we are talking about taxpayers’ money. Those were small-time projects with budgets in the tens of millions, but the Secretary of State is asking for a budget of billions of pounds with no plans. He mentioned a couple of companies in his speech, including EDF, which made a loss of €17 billion in 2022, and Ørsted, which made a loss of €2.7 billion in 2023, so I think it is right that we ask some of these questions.
Ms Polly Billington (East Thanet) (Lab)
The right hon. Lady mentions Robin Hood Energy and other local energy companies that were in fact supply companies. We are talking about a Great British Energy company that will be generating energy. She simply does not understand that. She is making a mistake about our plans, and failing to understand what is actually going on. She is suggesting that something is going to happen that is not going to happen.
If the hon. Lady would bravely like to say that the company will generate energy, I am sure that she would like to tell us how much, because no one else seems able to.