Climate Action and Extinction Rebellion

Debate between Claire Perry and Colin Clark

Tuesday 23rd April 2019 Commons Chamber

[Claire Perry]

The right hon. Gentleman makes a strong point. I pay tribute to the response of the Met police, under its commissioner; the right hon. Gentleman will have seen the response today. I think there was a little bit of nervousness at the beginning of the process, unfortunately, led by the Mayor of London, who did not recognise that millions of people’s lives would be disrupted. [Interruption.] Hang on a minute; Members are moaning and whinging, but what is the point of stopping people using electric public transport so that they have to take cars? That seems utterly counterintuitive. We ended up with a proportionate response, and I pay tribute once again to the police, who acted in a very good-humoured way to confine the protests.

[Colin Clark (Gordon) (Con)]

It is imperative to reduce greenhouse gases, and the replacement of coal by natural gas has vastly reduced such gases. Does the Minister agree that we should back a responsible UK oil and gas sector, and not offshore our climate change responsibility?

[Claire Perry]

I do, and my hon. Friend will know, as do many of his Conservative colleagues, that the incredible contribution of the oil and gas sector to the Scottish economy cannot be overstated. He will also know that we can decarbonise gas very effectively, and, frankly, we produce it with environmental standards far higher than those in the countries from which we import.

Oral Answers to Questions

Debate between Claire Perry and Colin Clark

Tuesday 19th March 2019 Commons Chamber

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

The hon. Gentleman is right that CO₂ molecules do not care where they are emitted or where they have an impact. I am delighted to tell him that we are one of the world’s largest donors of climate-facing aid, with £5.8 billion over this Parliament, about half of which is spent on adaptation and half on mitigation. There is clearly more to do, but we should be proud of that record.

[Colin Clark (Gordon) (Con)]

T5. What is BEIS doing to ensure that the oil and gas industry, which is the largest employer in my constituency, is the most innovative oil and gas sector in the world?

[Claire Perry]

My hon. Friend speaks proudly of the hundreds of high-skilled jobs in his constituency, and there are hundreds of thousands such jobs across the UK. We are increasing R&D spend across the piece, but innovation in the oil and gas sector is driven through the almost £200 million investment in the oil and gas technology centre, which I have been pleased to visit, including £90 million from the Government.

Oral Answers to Questions

Debate between Claire Perry and Colin Clark

Tuesday 16th October 2018 Commons Chamber

[Colin Clark (Gordon) (Con)]

T4. During Green GB Week, what steps is the Minister taking to minimise the negative impact on farmers of renewable energy incentives that are taking away valuable distillery and brewery by-products to be used in anaerobic digesters, thus potentially undermining the livestock industry not only in Scotland but in the rest of the United Kingdom?

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

My hon. Friend has made a valuable point. We have high sustainability criteria, but we must ensure that biofuels are sourced sustainably. We have asked the Climate Change Committee for a bioenergy report, which it will provide shortly, and which will give us new advice on questions of land use and the long-term best use of resources.

Oral Answers to Questions

Debate between Claire Perry and Colin Clark

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.

[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.

Marks & Spencer

Debate between Claire Perry and Colin Clark

Thursday 24th May 2018 Commons Chamber

[Claire Perry]

The hon. Gentleman flags up the reason that the Government commissioned the Taylor review on the future of good work: clearly, the workplace is changing. The expectation, and it has been pleasing to hear Marks & Spencer talk about this, is that it will do everything it can to redeploy its workforce, particularly into stores nearby that might be transitioning to food. I have been very struck on my forays into M&S by its incredible investment in its workforce—its commitment to increasing diversity and to providing good jobs over the long term—and we must all work to make sure that those jobs continue.

[Colin Clark (Gordon) (Con)]

I declare an interest as a former supplier to Marks & Spencer, and I am still involved in—but not paid by—the company that supplies Marks & Spencer. It is one of the most innovative retailers. It trains its staff, as other people have mentioned, and is a huge supporter of the British food industry. However, north-eastern Scotland has had to withstand 50% of the business rates increase, so I ask the Minister— [Interruption.] I ask her whether that increase in business rates can be justified and to be very conscious that business rates are damaging the high street, particularly as we are seeing in Scotland—[Interruption.]

[Claire Perry]

Mr Speaker, you can tell by the vigorous debate on this point the importance of having local government and national Government—[Interruption.]

UK Oil and Gas Industry

Debate between Claire Perry and Colin Clark

Thursday 19th April 2018 Westminster Hall

[Colin Clark]

I thank my hon. Friend for that point. I am a member of the Environmental Audit Committee, which took evidence from Lord Turner, the former chairman of the Committee on Climate Change. I asked him for how long he saw oil and gas being a major source of energy, heat and power, and he said at least into the next century, which is well over 80 years. He went on to say that in terms of an industrial raw material, we just do not know—we could be looking at hundreds of years. It is important that we realise that we probably cannot bring all the hydrocarbons we have to the surface, but that we certainly have to use them better and in a much cleaner way. I know that is a big consideration, particularly in the City of London.

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

I want to reassure my hon. Friend that I, the Government and many industry commentators absolutely see a role for oil and gas in the mix going forward, with a shift towards gas. Technologies such as carbon capture and storage, which I have had the great pleasure of debating with the hon. Member for Stockton North (Alex Cunningham), my hon. Friend the Member for Waveney (Peter Aldous) and others in this House, are part of the way to extend the industry’s life even further. The Government are committed to gas—it is not just me; it is other international parties as well—but finding ways that can help us take carbon out to keep the energy supply flowing is also part of that mix.

[Colin Clark]

I thank the Minister for that intervention. It is very important that we are careful that this industry is not demonised and is not seen as something of the past. It is a constructive industry and it is important that we do not suggest it is a stopgap until we move on to something else. We have to recognise its importance. How we use hydrocarbons responsibly is something we have to get right for generations to come, while reflecting on how we have got it wrong in the past.

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[Colin Clark]

rose—

[Claire Perry]

Will my hon. Friend give way?

[Colin Clark]

I shall.

[Claire Perry]

I wanted to do two things, briefly: first, I remind everyone of the wonderful page 218 of the industrial strategy, which shows the productivity gains that the industry has delivered to the north-east—productivity gains driven by a UK Government-wide fiscal policy that supported the industry through the 1970s and ’80s. Secondly, I remind hon. Members that the carboniferous formation that has delivered the offshore extraction has also allowed us to explore, in a sensible, environmentally safe and robust way, onshore extraction of such incredibly valuable resources. The formation runs underneath us as well.

[Colin Clark]

I thank Members for that plethora of interventions—it is good that everyone is so interested on such a hot day.

As I was saying, this is an enormously important industry, which has been the bedrock of the manufacturing industry of the United Kingdom. That is why Her Majesty’s Government have invested in it and made this country one of the best places fiscally to produce oil and gas. With the transferable tax history, the UK Government have delivered a massive incentive to invest—other Members campaigned for that for some time. However, it is important that the companies now investing in the industry understand their future responsibilities and that the companies that invested in the past, which have already had the tax benefit, realise that they still have a responsibility.

Fiscal policy makes the UK continental shelf one of the best places to produce oil and gas, and the low corporation tax of the United Kingdom means that the bigger part of the industry, the service sector, is well compensated when operating in the UK. To produce more revenue and grow the whole economy is what we are trying to do. For “business sector” read “jobs”, because employment in the oil and gas industry is picking up, and there is a huge spin-off from the industry. It has been reported that more than half of the companies surveyed expect employee numbers to rise this year. That is a big change.

The north-east of Scotland and the rest of the country involved in oil and gas have seen numbers heavily depleted. As we discussed in a Westminster Hall debate on social mobility a few weeks ago, some businesses are reporting difficulties in recruiting people with certain skills and competencies. That is a worry; perhaps our technical colleges and universities are not producing enough. I had not realised that that could be the case—I expected that Robert Gordon University in Aberdeen or Aberdeen University would be completely focused on the oil and gas industry, but there is already concern about skills shortages.

The oil and gas industry reminds me of the space programme in the US in the 1960s: when oil was $120 a barrel, the industry could not spend money fast enough—probably throughout the entire world, but particularly in the UK continental shelf. Since the oil price has dipped, the industry has obviously pulled back from training, which is probably the reason for our skills shortage. We saw a massive dip in training, although it is beginning to pick up again. Government should do everything possible to encourage training and investment in training, because the industry will continue to be important.

In the north-east we have the highest concentration of technicians and engineers in the United Kingdom—in both north-easts—and all sides can recognise that that is hugely valuable all over the UK. It is also important at the Oil and Gas Technology Centre that STEM—science, technology, engineering and maths—learning is an important part of what the oil industry offers.

Recently, the Aberdeen and Grampian chamber of commerce carried out an industry survey including employment and attitudes. I shall give a few of the numbers because it is important for us to understand where the industry is. The picture is a mixed one, but 80% of firms believe the industry has hit the bottom of the cycle and is now starting to go back up. That means we will start to see investment again—and we are. Fifty-four per cent. of the companies expected to be growing, which is very important, because we are clearly coming out of what was a major recession.

Companies also predicted that they will grow new opportunities, as came up in an earlier intervention by the hon. Member for Stockton North. I visited Sparrows, which builds complex cranes. It had a £10 million order for cranes to put on turbine platforms, to lift parts on and off: 105 of those automated cranes at between £50,000 and £100,000 each. That is a huge investment, and there is the industry diversifying out. More than 80% of companies expected to be involved in decommissioning, where the spend will probably be about £40 billion—that is not to be sniffed at and will sustain an engineering industry for a long time. Many sectors in the United Kingdom would like a £40 billion investment.

On Brexit specifically, the survey covered the issue of recruiting talent in future. The figures are worth mentioning: 47% of the companies surveyed believe that there will be no effect; and 33% were worried. I accept absolutely that we have to get immigration right because this industry employs such highly skilled people.

The Oil and Gas Technology Centre, funded by the city region deal to the tune of £180 million, combines academic research, including that of Aberdeen and Robert Gordon Universities, and industry to create value: to unlock the potential of the UK continental shelf, to anchor the supply chain in the north-east—predominantly the north-east of Scotland, in this case—and to create a culture of innovation that attracts industry and academia. The centre is trying to bring all that together.

For a long time, the oil and gas industry operated in silos, with independent commercial organisations. Sir Ian Wood, with one organisation, has been brilliant at encouraging companies to come together. I have to say—I am sure that all Members involved would agree—that the basing of the Oil and Gas Authority in Aberdeen has been an enormous success. I would be delighted were other Ministries to consider basing anything related to oil and gas in Aberdeen as well.

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[Colin Clark]

The hon. Gentleman must have read my speech—ah, there is a camera behind me! Yes, there should also be a sector deal focused on transformational technology, underwater engineering and decommissioning that drives technology with spin-outs to the wider economy. That is so important with regard to STEM subjects alone. It worries me that young people—students and kids who are still at school—say, “Has the oil and gas industry got any future?” One young man said to me that he was going to work in the car industry, building cars with steering wheels. I said, “Nobody will be driving them in 10 years’ time, but we’ll still need oil and gas, so I would stick to the oil and gas sector.”

My third ask of the Department is to support the high-tech and highly productive supply chain, which has the potential to double its share of the global services market. I ask Departments more broadly to ensure that the UK continental shelf remains fiscally competitive and that we have UK frameworks that strengthen the UK internal market, which is essential to oil and gas.

BEIS has long supported the industry, and we appreciate that one of the Minister’s first visits in her current post was to Aberdeen.

[Claire Perry]

It was my first visit.

Clean Growth Strategy

Debate between Claire Perry and Colin Clark

Thursday 12th October 2017 Commons Chamber

[Claire Perry]

The hon. Gentleman is always welcome at the Conservative party conference. Like my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke), he does a great job of affirming the commitment and energy that is demonstrated by the Teesside Collective. As we say in the strategy, Teesside is one of several areas with rapidly advancing projects, and with our renewed commitment and desire to be world leaders in this area and in new investment I would like to see such ambitions taken forward.

[Colin Clark (Gordon) (Con)]

Does the Minister, like me, welcome new investment in exploration for gas—a lower carbon option than coal—in the North sea and onshore, helping the UK achieve its carbon targets?