Energy Supply

David Amess Excerpts

Thursday 6th September 2012 Westminster Hall

[Barry Gardiner (Brent North) (Lab)]

I simply want to say that during all the time I have served on the Committee, it has always been aware of the Chairman’s interests, and at no time have any of us felt that those interests have in any way impeded or compromised the work of the Committee. He has been absolutely scrupulous in declaring those interests and making clear his position. I deprecate the journalism that has sought to besmirch the work of the Committee, which I believe is what journalists have tried to do, by suggesting that there has been any compromise. I welcome the fact that the Chairman has made such a statement.

[Mr David Amess (in the Chair)]

The House is very grateful for the hon. Gentleman’s contribution.

[Mr Yeo]

I, too, am grateful for that entirely unsolicited intervention from my colleague.

I also point out that I have been a strong and consistent advocate of greater investment in renewable energy for almost two decades—ever since I first took an interest in climate change when I was rather unexpectedly given ministerial responsibility for it in 1993. I believe that Britain needs investment in many forms of low-carbon technology, which of course includes nuclear power, and the suggestion that my views on the subject could possibly have been influenced by interests that I did not acquire until 2006 is simply absurd.

I warmly welcome the new Minister to his post. He comes in at a very challenging time in his Department’s history. We, as a Committee, look forward to working closely with him. We worked very closely with his predecessor, my hon. Friend the Member for Wealden (Charles Hendry). I would like to take this opportunity to pay public tribute to him as an exceptionally conscientious, straightforward, knowledgeable and trustworthy Minister. He will be much missed—certainly by me, and I think by the whole Committee—and his knowledge of the issues, at a time when rather complex legislation is going through the House, is something that I hope my hon. Friend the new Minister will also soon acquire. I wish him well in his task.

I also thank my colleagues on the Committee for their work in producing not just the report that we are debating, but an extraordinary number of reports over the past 12 months. I also pay tribute to our very hard-working staff.

It is almost a year since the publication of the report that we are debating, and the concerns that we expressed then are almost exactly the same as those that we would express now. Britain is, of course, very dependent on imported fossil fuels for its energy, and anxieties about the level of generating capacity remain. The concerns about the fact that much of our existing capacity, in the form of the old coal and nuclear plants, will retire very soon, and about the need for that to be replaced, are as acute today—if not more acute—as they were last year. Absolutely enormous investment is needed in new capacity, storage facilities and so on. In the past year, there has still been progress, albeit insufficient, on energy efficiency, and on carbon capture and storage.

Britain remains a big net importer of energy—the figure was 29% last year. We are very lucky to have Norway on our doorstep, which is a friendly and reliable supplier of gas, but it is still desirable that we try to minimise our dependence on imports. In my view, that supports the argument for exploiting our shale gas reserves, for which we look to the Department of Energy and Climate Change for early approval, as has been recommended by the Committee. We will soon return to that subject, and I hope that we get the go-ahead soon.

Norway is a friendly supplier of gas, but even that fact cannot insulate us from future gas price spikes. Those who advocate relying mainly on gas to generate our electricity must recognise not only that, without the so far unproven economic availability of carbon capture and storage, gas cannot possibly get us to the 50 grams per kWh emissions target set by the Committee on Climate Change for 2030, but that there is also a real danger, as the Asian economies continue to grow, that global demand for gas will drive prices up, meaning that Britain’s economy will become less competitive if gas is our principal source of electricity generation.

--- Later in debate ---

[Several hon. Members]

rose—

[Mr David Amess (in the Chair)]

Order. The debate finishes at 4 o’clock. I intend to call the Opposition spokesman at 25 minutes to 4. Then the Minister will respond and the Committee Chairman will make his final remarks. Time is tight. I think that two hon. Members want to catch my eye.

--- Later in debate ---

[Barry Gardiner]

The Committee said, in its recent report on climate change, that only 60,000 of the 330,000 solid wall insulations, which the Government indicated were necessary, had been installed. That is an important indication of how serious the situation is.

[Mr David Amess (in the Chair)]

Order. I am worried that the Minister will have little time to respond to the report. The Committee Chairman would also like to say something.

[Tom Greatrex]

I take that on board, Mr Amess. I concur with my hon. Friend.

There are many challenges for the Minister to deal with—many of them covered in the report—and I am sure that he will seek to do so in his diligent manner. Although we in the Opposition will always seek to scrutinise effectively, we will not oppose for the sake of opposition. We hope, in these areas and many others, to address the energy challenge of the country and be an inquiring, critical colleague for him in the months ahead.