Oral Answers to Questions

Claire Perry Excerpts

Tuesday 12th June 2018 Commons Chamber

[Colin Clark (Gordon) (Con)]

8. What steps he is taking to support economic growth while decreasing emissions.

[The Minister for Energy and Clean Growth (Claire Perry)]

My hon Friends and the House will agree that we should be proud of the UK’s progress in cutting emissions while driving economic growth. Since 1990, we have reduced our greenhouse gas emissions by over 40% while growing the economy by over two thirds—the best performance per capita in the G7. And we will, as part of our modern industrial strategy, continue to exploit the opportunities for future growth across the UK through our clean growth grand challenge.

[Julian Knight]

As we rightly move towards eliminating the internal combustion engine in all new cars from 2040, does the Minister agree that, in the short to medium term, it is important to jobs and growth that we recognise the role of clean diesel engines such as those in the cars that roll off the production in my local car plant?

[Claire Perry]

My hon. Friend rightly champions the incredible employer in his constituency. He knows that we are right to move towards eliminating internal combustion engines from our roads, but we must do it in a managed way and ensure that we preserve those jobs and particularly the investment in clean diesel during the transition to zero-emission vehicles. I know that there have been announcements today of job losses in his constituency, which will be concerning. However, they are part of the manufacturing plan that has been announced.

[Colin Clark]

The oil and gas industry plays an active role in protecting the environment and reducing emissions. Does the Minister share my shock that the shadow Chancellor advised Cambridge University to divest itself of oil and gas investments when that industry supports 300,000 jobs in the UK? Does she agree that the industry is playing its part, and that 300,000 UK jobs are worth protecting despite the Opposition’s—

[Mr Speaker]

Order. I say very gently that the Minister will want to focus on the policy of the Government. Her view about the policy of the Opposition is neither here nor there. With experience, I know the hon. Gentleman will realise that those questions are disorderly.

[Claire Perry]

The Government’s policy is to support a sector that employs 300,000 people and contributes £21 billion to the UK economy. We recognise that the vital oil and gas industry has an integral role to play as we transition to a low-carbon economy, which is why we are investing in technologies such as carbon capture, usage and storage, and exploring how things such as our world-leading submersible technologies can work to support oil and gas.

[Albert Owen (Ynys Môn) (Lab)]

The Minister will be aware of the potential of the marine energy sector in terms of both UK economic growth and reducing emissions. Will she assure me that projects such as Minesto and Morlais in my constituency will not be crowded out by the funding mechanism in place now, which favours offshore wind?

[Claire Perry]

The hon. Gentleman knows that we have set out £557 million to support all renewable technologies over the next few years. We want to make sure that we decarbonise at the right price for taxpayers and bill payers, which is one reason why the mechanism will continue.

[Chris Elmore (Ogmore) (Lab)]

One way in which the Government could invest in economic growth while decreasing emissions would be to invest in the Swansea Bay tidal lagoon project. They have flip-flopped over the past 10 days, with leaks about when the announcement will or will not be made. May I press the Minister? Can she please tell us when she will deliver that major economic investment for Wales?

[Claire Perry]

Having grown up on one side of the Bristol channel and seen the second-highest tidal range in the world on an almost daily basis, I will take no lessons on the value of tidal and marine technology. As guardians of public money, it is absolutely right that we make investments that deliver the right decarbonisation and the right value for the taxpayer. The hon. Gentleman should not rely on leaks and assume that they are Government information. That announcement will come in due course and the House will be the first to know.

[David T. C. Davies (Monmouth) (Con)]

Does my right hon. Friend agree that the recent announcement of support for Wylfa underpins the Government’s commitment not only to reducing emissions, but to economic growth, not least in Wales?

[Claire Perry]

My hon. Friend is right. I should clarify that we are entering commercial negotiations—a deal needs to be done—but we should make a virtue of the fact that we have one of the most diversified energy supplies in the world and one of the lowest-carbon energy supplies. We have also managed to get ourselves off coal, which other countries long to do.

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

The Government’s shambolic policy on the solar and onshore wind sectors in recent years has meant that significant economic growth and decarbonisation opportunities have been lost. For example, we have seen dramatic feed-in tariff subsidy cuts; business and VAT rate hikes; and obstruction to clean power auctions. Sadly, as we have heard today, there are reports that the Swansea Bay tidal lagoon, the world’s first tidal lagoon, which would create thousands of jobs and local supply chains and use 100,000 tonnes of majority British steel, is potentially on the Secretary of State’s hit list. Will the Minister buck that trend today and confirm when the decision will be made, and outline what support she will give to solar and onshore wind?

[Claire Perry]

I remain bemused by the hon. Lady’s ability to seize a disaster out of a triumph. We have delivered more renewable energy than we ever thought possible, at a price that is unimaginable—[Interruption.] I know the Opposition Front Benchers do not give a stuff about consumer bills, as they have made that totally obvious, but we care about decarbonisation at the right price for the consumer.

[Rebecca Long Bailey]

I think we touched a nerve there. The Minister is living in a parallel universe to me, because in the first quarter of 2018 the deployment of new solar slowed to its lowest level since 2010, and next year onshore wind installation is expected to be at its lowest level since before 2008. But it gets worse: last November, the industrial strategy was published, yet seven months on progress has been slow, with business becoming increasingly frustrated. The industrial strategy council has not yet been appointed, no strategy for reaching the research and development target has been published and dozens of sectors are waiting for responses to their sector deals. So does the Minister accept, as some key business leaders do, that perhaps her Government’s chaos over Brexit and the apparent inability even to concentrate on an industrial strategy are undermining British business and indeed our growth?

[Claire Perry]

The previous point still stands. We are incredibly proud of our industrial strategy, with its groundbreaking opportunities to link up government and businesses for the first time. I go back to the point on the hon. Lady’s questions about solar: the thing about offshore wind is that we lead—[Interruption.] Again, if they could all stop chuntering, Mr Speaker—God almighty. We lead the world in terms of the installed capacity, and we have created tens of thousands of jobs. I know the Opposition Front Benchers, as per the first question, do not give a stuff about jobs, let alone consumer bills, but the point is that—

[Mr Speaker]

Order. Minister, please resume your seat. I am most grateful to you, but I am afraid dilation is not in order today. We have a lot to get through and not much time in which to do so. We have to make progress. We need short questions and short answers.

[Mr Philip Hollobone (Kettering) (Con)]

2. What estimate he has made of the amount of electricity (a) generated and (b) consumed annually in the borough of Kettering.

[The Minister for Energy and Clean Growth (Claire Perry)]

The last time I talked about dilation, I was in labour. However, in Kettering—

[Mr Speaker]

Order. What is required is a brief answer and a brief question—no dilation.

[Claire Perry]

In 2016, at least 150 GWh were generated in Kettering, mostly from renewables; this is enough generation to power 38,000 homes. In 2016, 405 GWh of electricity were consumed in the Kettering local authority area.

[Mr Hollobone]

It is great news that Kettering is one of the greenest boroughs in the country, but we do have a very large number of wind turbines in the borough. What are the Government doing to encourage offshore wind turbines, rather than onshore ones?

[Claire Perry]

We have maintained, and will continue to maintain, our manifesto commitment that says that no more large-scale onshore wind development is right in England. That should reassure my hon. Friend and his constituents.

[Stephen Kerr (Stirling) (Con)]

rose—

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[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

6. What steps he is taking to encourage investment in environmentally sustainable electricity generation.

[The Minister for Energy and Clean Growth (Claire Perry)]

Since 2010, we have seen a large increase in renewables deployment and investment, with more than £52 billion invested, and indeed it is paying off. In 2017, more than half our energy generation came from low-carbon sources. As prices tumble, we can buy more with the same amount of money, which is why we are making £557 million available for further contracts for difference. We have started negotiations with Hitachi to bring forward the country’s second new nuclear plant, which my hon. Friend the Member for Monmouth (David T. C. Davies) mentioned.

[Dr Huq]

The Minister talks a good talk, but rooftop solar panel take-up is at a seven-year low. In my seat, Alternergy has gone from topping the Fintech 100 to an 80% drop in business since the end of the feed-in tariff was announced in 2012. What assurances does the Minister have for such firms after the scheme closes next year?

[Claire Perry]

It is right that we look at how we can deliver subsidy-free energy using schemes such as the feed-in tariff that have been wildly successful. I will shortly be launching a call for evidence so that we can come up with a good replacement for the feed-in tariff scheme.

[Sir Desmond Swayne (New Forest West) (Con)]

What was the principal driver in the reduction of the price of new offshore wind?

[Claire Perry]

There were two things. First was the world-leading contract structure that we set up with our auctions; I pay tribute to that very good coalition policy. The second thing was the enormous deployment globally and the reduction in price of the various components. It has been a great British success story.

[Barry Gardiner (Brent North) (Lab)]

In 2015, the then Secretary of State said that 2018 would be the year for the UK to ratchet up our Paris climate commitments and our progress towards sustainable generation, but in the past three years the Government have capped support for low-carbon energy and destroyed 12,000 solar jobs. Clean energy investment, which fell by 10% in 2016, fell by a further 56% in 2017 to its lowest level in a decade. How about the Minister comes down off cloud complacency and finally gives investors certainty about the renewables industry, starting with a date for the consultation on the post feed-in tariff framework?

[Claire Perry]

I think that the question in all that preamble was, “What is the date?” As I said, we will be announcing that soon.

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

Globally, the nuclear power market is declining rapidly while the low-carbon power of offshore wind and battery storage becomes more affordable. How can the UK Government justify taking a reported £5 billion direct stake, and a further guarantee of £9 billion, in the nuclear white elephant that is Hitachi Wylfa Newydd?

[Claire Perry]

As I have said repeatedly, we have entered into negotiations. I have to tell the hon. Gentleman that one of the saddest things I saw at the conference of the parties in Bonn this year was the barge-loads of dirty brown coal sailing down the Ruhr because countries like Germany have made an ideological choice about their energy supply rather than focusing on what keeps the lights on, costs down and carbon falling.

[Drew Hendry]

The Minister said earlier that she “gave a stuff” about household budgets, yet Tory dogma is set to saddle consumers with nuclear energy costing about £80 per megawatt-hour compared with under £60 for offshore wind. Is it not time that the UK Government stopped living in the past, scrapped this nuclear project and put households, who bear the brunt of costs, front of mind?

[Claire Perry]

The hon. Gentleman cites numbers that have no relevance to the negotiations. We have to keep bills down, and we have to make sure that the lights are on, that we have a secure energy supply and that we decarbonise. We think nuclear is very much part of that mix.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

7. What his policy is on supporting small and medium-sized renewable power generators after the closure of the feed-in tariff scheme.

[Tim Farron (Westmorland and Lonsdale) (LD)]

16. What the timetable is for the publication of the Government’s consultation on the feed-in tariff scheme.

[The Minister for Energy and Clean Growth (Claire Perry)]

The feed-in tariff scheme was launched in 2010 and now delivers £1.5 billion-worth of support a year for low-carbon generation. It has been really successful, and over 6 GW of it has been deployed—2.5% of UK electricity consumption. We want to see how we can deploy it at a subsidy-free level, as that is where prices are going. I will launch a call for evidence on the future of small-scale generation soon.

[Mr Sweeney]

Although I was delighted to hear that the world-leading small wind turbine manufacturer in my constituency, Gaia-Wind, was saved from liquidation this week by an overseas buyer, the unnecessary uncertainty that the Government have created around the future of small-scale renewable energy persists. So will the Minister put investors and companies at ease and make a cast-iron promise to bring forward the consultation on future support before the summer recess?

[Claire Perry]

I am really glad that, as the hon. Gentleman says, it looks as though at least some of the jobs at the company in his constituency have been saved. With these schemes, we always have to think about what is value for money and what is the right thing to do in terms of energy security and supply. I will not make cast-iron guarantees, but I can promise him that it will happen soon.

[Tim Farron]

Ben Dyson at Lakes Renewables Ltd in Kendal, which focuses on solar power, has seen a 50% reduction in his work due to the impending closure of the scheme. He has kept going by diversifying, but many other firms have gone to the wall. Ben urgently needs policy clarity from next March, and to see business rates on commercial rooftop solar abolished. What steps will the Minister take to ensure that these rates are abolished and that the growth of small green businesses such as Ben’s is encouraged?

[Claire Perry]

I met representatives of the various trade associations to discuss this really important point. It will be considered separately from the consultation. However, I invite the hon. Gentleman and his constituent to make any representations; I would be keen to receive them.

[Maria Caulfield (Lewes) (Con)]

9. What steps he is taking to support high street businesses.

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[The Minister for Energy and Clean Growth (Claire Perry)]

This Government have provided unprecedented levels of support to help this incredibly important sector—that is something on which we do agree. The Government announced the transferable tax allowance, the sector’s No. 1 ask; established the Oil and Gas Authority; invested in the Aberdeen city deal, including the excellent £90 million Oil and Gas Technology Centre, which I was pleased to visit; and put together a fiscal package worth £2.3 billion. It is working, with 16 new final investment decisions this year.

[Alan Brown]

That all sounds very good, but the reality is that in 2016 the Budget measures on support for the oil and gas industry were only a third of the measures on inheritance tax. The measure on transferable tax history has been delayed further, so when will that come forward? Why can the Government find billions and billions of pounds for nuclear but not for the oil and gas sector?

[Claire Perry]

The hon. Gentleman and I usually talk about the sector in very positive terms. We have delivered the things that the sector has asked for and it is working. It is fantastic to see investment happening in the North sea basin. The fact that the sector has gone through a time of building resilience given the oil price decline means that it is now starting to invest and grow again.

[Mrs Madeleine Moon (Bridgend) (Lab)]

13. What assessment he has made of the capability of British steel manufacturers to produce high-grade steel for new markets.

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[John Grogan (Keighley) (Lab)]

14. What the timetable is for his receipt of the report of the carbon capture usage and storage cost challenge taskforce; and if he will make a statement.

[The Minister for Energy and Clean Growth (Claire Perry)]

I am delighted to answer this question and continue the conversation about carbon capture and storage that the hon. Gentleman and I were having last night. We are determined to deploy cost-effective carbon capture and storage at scale and in a way that helps to decarbonise both generation and industry. That is why we have asked the taskforce, the best minds in the country, and our CCUS council to convene. I am looking forward to receiving their report and acting on it very soon.

[John Grogan]

Does the Minister agree that the development of carbon capture and storage is crucial for much of British manufacturing and for the use of gas during the transition, and will she encourage innovation not just in technology but in finance, with both the Government and the fossil fuel sector contributing?

[Claire Perry]

The hon. Gentleman might have been reading one of the report’s recommendations. He is absolutely right. We must deliver this in a way that is cost-effective and supports further innovation. I am confident that, with the taskforce’s help, we will have very good recommendations and ideas to move forward with.

[Ms Marie Rimmer (St Helens South and Whiston) (Lab)]

15. What progress he has made on developing (a) sector deals and (b) local industrial strategies as part of the industrial strategy.

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[Sir Edward Davey (Kingston and Surbiton) (LD)]

19. What the Government’s policy is on tidal lagoons.

[The Minister for Energy and Clean Growth (Claire Perry)]

The right hon. Gentleman knows, more than many in the House, the need to invest in innovative technologies, while maintaining a focus on value for money. We have rightly looked at this project with very serious scrutiny. There are some very attractive things about it, but it has to pass the value for money test. When that decision is made, the House will be the first to know.

[Sir Edward Davey]

Does the Minister accept that nuclear and offshore wind needed pathfinder projects, first-of-a-kind projects, to prove the technology and the economics and to get the cost down. Why can tidal lagoons not have such a pathfinder project, just as Charles Hendry recommended?

[Claire Perry]

Partly because of the right hon. Gentleman’s great policy decisions, we have had a world-leading advance in offshore wind in terms of the cost at which we can deploy it. He is right to say that we have to consider the whole life cycle of technologies and that is exactly what we have been doing in considering tidal technology.

[Mr Speaker]

The right hon. Gentleman has been given the accolade of being the source of world leadership in a particular field. I trust, therefore, that he will be gratified with his efforts today.

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

T4. Will my right hon. Friend update the House on what he is doing to support vulnerable people in Mid Dorset and North Poole with their energy bills?

[The Minister for Energy and Clean Growth (Claire Perry)]

Of course, the whole House will shortly be able to pass the price cap Bill, which will assist all consumers with the cost of energy, and this comes on top of the prepayment meter and vulnerable consumers price caps that are in place. We are determined to continue supporting vulnerable consumers through such things as the warm home discount, winter fuel payments and repurposing the very large energy company obligation scheme to tackle fuel poverty.

[Thangam Debbonaire (Bristol West) (Lab)]

T2. Will the Secretary of State please think of the 150,000 homes that it would power, the thousands of jobs that it would create, the supply chain business that it would support in Wales and the west, and the climate change that it would tackle, and get off the fence and announce Government support for Swansea Bay tidal lagoon today?

[Claire Perry]

I have always admired the hon. Lady’s passion. Again, as I have said multiple times, we absolutely are very keen to scrutinise this deal. It has to deliver the low-carbon energy we all want and the jobs we all want at a price that is affordable for the consumers we all represent.

[Luke Graham (Ochil and South Perthshire) (Con)]

T5. Following my Adjournment debate on 4 June, what steps has my right hon. Friend been able to take to progress geothermal energy in Clackmannanshire?

[Claire Perry]

Those who missed the Clackmannanshire energy project Adjournment debate missed a massive treat: it was a very enjoyable, informative debate. We are very supportive of the project. My officials are working closely to explore funding opportunities, and I commend my hon. Friend for his continued leadership in this important area.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

T3. Last night, I had the pleasure of travelling on the sleeper from Inverness to Euston, and with me on the sleeper was a consignment of delicious highland shellfish products. What are the Government doing to assist the transportation of fresh highland food products to markets in the south and, indeed, overseas?

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[Richard Graham (Gloucester) (Con)]

T9. Like all good films, I hope that a Government response to the Hendry review is “Coming Soon”, but meanwhile, will the Minister share with us whether she agrees that the opportunities for marine energy, whether tidal stream, tidal lagoon or waves, are enormous? Does she agree that they deserve more support and encouragement to develop this fantastically innovative source of additional low-carbon, domestically produced energy?

[Claire Perry]

I must pay tribute to my hon. Friend’s brilliant chairmanship of the all-party group on this technology area. He is absolutely right: we do think that water power has incredible potential. That is why the Government have invested over £100 million since 2010 in investigating various forms of the technology and why we are keen to continue to pursue opportunities, but they have to be at the right price for consumers.

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

T7. What assurances has the Minister received that the British steel industry can supply Heathrow expansion sufficiently?