Oral Answers to Questions

Claire Perry Excerpts

Tuesday 7th November 2017 Commons Chamber

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

13. What steps he is taking to support the development of carbon capture and storage technology.

[The Minister for Climate Change and Industry (Claire Perry)]

Carbon capture usage and storage has huge potential to play a vital future role in reducing emissions across a range of activities, but the technology has to be made more cost-effective to deploy at scale. That is why we have committed up to £100 million of public money in CCUS innovation in our clean growth strategy and why are working with the private sector and other Governments to drive up technological innovation and to drive down costs.

[John Mc Nally]

The clean growth strategy falls short of boosting the investment necessary to stimulate change in carbon capture and storage, and the industrial strategy Green Paper failed to mention it. In the light of the previous failure to deliver on Peterhead, what measures will the Minister announce to recover that investment?

[Claire Perry]

The world has not yet decided to invest in traditional CCUS. There are 21 at-scale plants operating globally, of which 16 rely on enhanced oil recovery as a revenue stream. It is simply not cost-effective enough in its current form for us to commit large-scale investment. We have to get the costs down. We are now in a world where the private sector wants to invest, however, and I am sure we would both welcome developments such as Project Acorn, to which both the UK Government and the Scottish Government have committed funds.

[Alan Brown]

The Minister does not like being reminded that the pulling of the £1 billion for the Peterhead project was a betrayal of the north-east of Scotland and the Scottish energy sector. She talks at the Dispatch Box about value for money, but the strike price of £92.50 at Hinkley is not value for money. When will the Government make real financial commitments to CCS in Scotland?

[Claire Perry]

In the world I live in, £100 million is quite a substantial financial investment in CCUS. It is striking that the Scottish Government invested only £100,000 in Project Acorn, as opposed to our £1.3 million. The point remains that the technology is not cost-effective. Only six plants in the world are operating without additional revenue from enhanced oil recovery. We want Britain to be the technological leader and to develop cost-effective solutions. I hope that we can work together to achieve that aim.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

I welcome the return to some consideration of CCS in the clean growth plan, after the Government’s dreadful mistake in cancelling the £1 billion UK CCS pilot plants in 2015. What discussions has the Minister had with her Norwegian counterparts on the prospects for UK-Norway collaboration on that country’s advanced plans for carbon sequestration in the North sea?

[Claire Perry]

As the hon. Gentleman will know, Norway is currently a little bit unsure about the level of its own financial commitment. However, it has an excellent Energy Minister, with whom I have had multiple meetings and conversations. It seems strange to me that, having taken the hydrocarbons out of the North sea basin, we should not co-operate to put the carbon dioxide back, so there are frequent conversations. The hon. Gentleman will have seen the clean growth strategy, on which we would like very much to work with other countries—not just Norway, but the United States and Canada as well.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

We have just heard about the broken promise to establish a world-leading carbon capture project at Peterhead. That is another betrayal of the North sea industry: £1 billion was never invested, and 600 jobs were never created. Is it not true that when it comes to the North sea, this Government are no good at anything except breaking promises?

[Claire Perry]

Some might say that the Scottish National party is not very good at forecasting oil prices. As I have already said, no Governments have taken a very substantial bet in the past few years—I call it a bet because it is not cost-effective—but, as the hon. Gentleman will know, organisations such as the Oil and Gas Climate Initiative are asking us, “How can we work together in a public-private arrangement to deliver the best, most cost-effective solutions?” We need to create some technology that we can export, like the oil and gas services that have delivered such economic value in the North sea.

[Drew Hendry]

Support for the North sea was also promised by the former Prime Minister in January 2016, when he said:

“An Oil and Gas Ambassador will be appointed to…promote”

oil and gas

“around the world”.

However, the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Watford (Richard Harrington), told the Press and Journal recently that it was a “good idea” but he was “not aware” of it. He said:

“It’s not crossed my desk”.

Whose desk did it cross? Or was it just another fantasy— a false promise from a “say anything, do nothing” Government”?

[Claire Perry]

I can understand why there is not much solar installation in Scotland: it appears that the sun never shines north of the border.

I will take no lessons from the hon. Gentleman about support for the North sea, which is a vital industry. I cannot answer his point about the ambassador, but I shall be happy to discuss it with my colleagues.

[Tom Brake (Carshalton and Wallington) (LD)]

8. What discussions he has had with the Secretary of State for Exiting the European Union on the effect of the UK leaving the EU on the automotive sector.

--- Later in debate ---

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

10. What steps he has taken to meet the UK’s commitments under the Paris climate change agreement.

[The Minister for Climate Change and Industry (Claire Perry)]

The UK was a leading negotiator of the extraordinary Paris agreement in which 195 countries agreed to act to keep the global temperature rise well below 2°. In 2016, only two countries in the world cut their carbon emissions intensity in line with that Paris goal: China and the UK. Last month, our clean growth strategy set out how we intend to go further and faster in cutting our UK emissions to reach the Paris goal, while delivering economic growth.

[Michael Tomlinson]

Many of my constituents have contacted me with their concerns about climate change. Following Paris, what steps is the Minister taking to ensure that there is a global political movement to combat climate change?

[Claire Perry]

I will be going to Bonn next week for the 23rd United Nations climate change conference with the council of partners, where we will join other leading nations in reaffirming our commitment to the Paris goals and working on a variety of practical initiatives such as the phase-out of power generation from unabated coal. Britain, which started the industrial revolution using coal, now leads the world in phasing it out. We will also be working on the use of innovative financial solutions to mobilise private investment in low carbon technologies.

[Jenny Chapman (Darlington) (Lab)]

How does the Minister intend to support carbon capture and storage in the Tees valley, given that that, too, would improve our environmental ambitions and enhance economic growth?

[Claire Perry]

The hon. Lady will know that the Tees valley has been incredibly assiduous in campaigning in many ways to be a location for the deployment of the new technology. We are working actively with it and we would like to see some investment proposals coming forward.

[Edward Argar (Charnwood) (Con)]

In reaffirming the UK’s commitment to the Paris climate change deal, will my hon. Friend assure me that she had her colleagues will continue to pressure and persuade other countries that have not signed up to it or that might be reticent about its merits and about why they should be involved?

[Claire Perry]

My hon. Friend makes a good point: we are only as good as the partners that we are working with. Other countries, including India and China, have set progressive goals for their own countries involving very rapid decarbonisation. Paris remains fit for purpose and will not be renegotiated. We would like all countries, particularly the major OECD countries, to change their minds and get behind this groundbreaking agreement for the world.

[Caroline Lucas (Brighton, Pavilion) (Green)]

The Committee on Climate Change clearly states that fracking cannot be compatible with the UK’s climate change targets unless three key tests—on methane gas, on gas consumption and on carbon budgets—are met. Given that the Government have not shown that those tests can be met, will the Minister’s Department refuse consent for fracking in Ryedale, North Yorkshire, which is currently under consideration, or is she planning simply to ignore the advice from the Committee on Climate Change?

[Claire Perry]

We cannot comment on particular cases. Testing wells are being drilled at the moment, and we need to understand the scientific basis, so that we can prove or disprove these tests. I find it slightly odd that those who argue the loudest that people should accept the scientific basis for climate change refuse to have a conversation about the scientific basis that would prove or disprove the case for fracking.

[David Hanson (Delyn) (Lab)]

11. What discussions he has had with the Chancellor of the Exchequer on the conclusions of the recent Financial Conduct Authority report on the Royal Bank of Scotland and small business customers.

--- Later in debate ---

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

I am working closely on investment in utilities with the Greater Lincolnshire local enterprise partnership, which will shortly publish a report detailing areas of Lincolnshire in which infrastructure requires investment. One problem is that Western Power is prevented from making speculative investment by Ofgem. Can my hon. Friend the Minister tell me why there is apparently this regulatory barrier to investment and what she can do to help?

[The Minister for Climate Change and Industry (Claire Perry)]

I commend my hon. Friend and her local enterprise partnership for their work. We look forward to seeing that report and to having productive conversations. We do not want any barriers that impede economic growth in her constituency and region.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

T6. Net present value is the economic measurement generally held to provide the most robust assessment of all the costs and benefits of any proposed major infrastructure project. Would the Government ever support a major infrastructure project that, at its inception, was calculated to have a negative net economic benefit?

--- Later in debate ---

[Claire Perry]

I am sure that my hon. Friend, like me, celebrates the fact that there has been an unprecedented fall in the price of offshore wind in the most recent auction, proving that the policy making—at least in this case—actually worked. We look forward to further investment in the industry, and are working with the sector on a sector deal that will have to address the issue of skills and apprenticeships. It is a vital industry; there is much more to do and much more growth to come.

[Rachel Reeves (Leeds West) (Lab)]

T8. Last year, a Whirlpool tumble dryer caused a devastating fire at Shepherd’s Bush Green after Whirlpool told customers that it was safe to continue using them, contrary to advice from the fire brigade. There are still 1 million of these potentially deadly tumble dryers in people’s homes. What does the Minister think about that and what is she doing to ensure that all electrical goods are safe, and recalled if they are not?

--- Later in debate ---

[Diana Johnson (Kingston upon Hull North) (Lab)]

T9. The Minister knows that the Red Arrows fly Hawks built at Brough, and they are great ambassadors for British aeronautical engineering and attracting export orders. But with the production line at Brough under threat, including those skilled jobs, is it not time for the Government to renew the contract for Hawks for the Red Arrows and, most importantly, to keep sovereign capability in this country?

[Claire Perry]

The hon. Lady is a great advocate for this and we discussed this matter during the recent urgent question. We want to do all we can to support the manufacturing future of that entire company, which is why we are focusing so much on trying to help it to get the overseas orders it needs.

[Stephen Kerr (Stirling) (Con)]

When does the Minister plan to respond to the Matthew Taylor review of employment practices in the modern economy?

--- Later in debate ---

[Stephen Kinnock (Aberavon) (Lab)]

Imminent changes to the operation of the EU emissions trading system register are likely to invalidate UK-issued carbon allowances from the start of next year. These measures, which have been brought about by Brexit, will have a significant impact on the steel industry. Will the Minister let us know what contingency measures are being taken to mitigate this impact in the event that an agreement cannot be reached with the European Commission on this issue in time?

[Claire Perry]

The hon. Gentleman is right to raise this important issue. He will be reassured to know that there are active conversations going on between my Department and the European Commission. He presents the absolute worst-case scenario, which we are confident that we will not reach.

[Several hon. Members rose—]

--- Later in debate ---

[Claire Perry]

I commend my hon. Friend for her tireless advocacy and leadership in the Conservative Environment Network and for the work she does on behalf of her constituents—Taunton Deane is very lucky. She and I share the aspiration to continue our global leadership role; indeed, the headline objective for the conference is about making everyone aware that there is no rowing back on the Paris agreement—in fact, we want momentum to accelerate. I will be using the conference to announce further investments and further approaches the UK is taking to push our world leadership position forward. If my hon. Friend can just be patient for a few more days, I am sure she will join me in celebrating those when we announce them.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

The Committee on Climate Change and a range of respected experts all point out that the existing clean growth strategy will fail on the fifth carbon budget and on the Paris commitments. The Minister must have some additional measures in mind. What are they?

[Claire Perry]

The Committee on Climate Change said this set of policies was one of the most wide-ranging that had ever been put forward. As the hon. Gentleman knows, the budgets end in 10 and 15 years’ time, and we are currently on track to achieve 94% and 93% of the things we need to do, a decade out. I think it is pretty good odds that we will achieve them.