Offshore Wind Generation (North Wales)

Lord Hanson of Flint Excerpts

Wednesday 24th October 2012 Westminster Hall

[Mr David Hanson (Delyn) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Alan. I thank my hon. Friend the Member for Ynys Môn (Albert Owen) for bringing this agenda to the Chamber. It is extremely important to focus on how we grow wind energy in north Wales, and it is significant that every Labour MP representing constituencies in north Wales is here to lend their support to my hon. Friend.

Wind energy is significant for three reasons. First, it contributes to the green energy needs of our communities at a time of diminishing coal, gas and other resources. Secondly, it is an important engine of economic growth, as can be witnessed by what has happened in north Wales. Thirdly, there is a community benefit associated with economic and green developments that helps to regenerate other areas of our community in a positive way. I wish to speak briefly on all three points.

I am proud that the previous Labour Government generated, supported and encouraged the development of offshore wind farms in my part of the world. Wind farms were developed because the Department of Energy and Climate Change, and previous Departments with responsibility for energy, took an interest, campaigned strongly and worked with the Welsh Assembly Government to attract business. I seek an assurance from the Minister that there will be that level of commitment in the future.

On the contribution to green energy needs, I place on the record two particular facts. The Rhyl Flats and North Hoyle developments will generate 240 MW of electricity, which is sufficient for the energy needs of 200,000 homes. The Gwynt y Môr development will provide 576 MW of electricity, which is sufficient for the energy needs of 400,000 homes. Those are significant developments. As my hon. Friend the Member for Ynys Môn mentioned, the Gwynt y Môr development is the largest of its kind in the United Kingdom, and it is approaching the size of major European developments. Those green energy needs are being met.

No more than 15 years ago, during the time I have been a Member of Parliament, there was a colliery at Point of Ayr in my constituency that employed 1,200 people, producing coal and material that was used for energy. The colliery is no longer there, people are not employed and coal is not produced, and yet not two miles from that site there is now the potential to create alternative energy using natural resources on a renewable basis—a positive development that we should be seeking to encourage.

As my hon. Friend the Member for Ynys Môn mentioned, green energy jobs are important contributors to the economy of north Wales—not just in Holyhead in his constituency, and not just in the development of the offshore wind farms themselves. Mostyn docks is in my constituency. In the past decade, the port of Mostyn has had to face significant challenges. It had a roll-on/roll-off ferry service to Northern Ireland. It supports the development of Airbus from the major economic factory in the constituency of my hon. Friend the Member for Alyn and Deeside (Mark Tami), where wings are made, produced and then exported via the docks.

In the past 10 to 15 years, the Mostyn dock development has diversified significantly to try to attract wind energy and enable the manufacture and construction of wind turbines. In the past few years, thanks to investment in offshore wind energy, the construction of six Irish sea offshore wind farms at North Hoyle, Burbo Bank, Robin Rigg, Rhyl Flats, Walney 1 and Walney 2 has led to a real expansion in the services provided at Mostyn docks. That is good news for the green energy sector and good news for employment in my constituency.

The Gwynt y Môr offshore wind development was mentioned earlier. That will now be based at the port of Mostyn in north Wales. The 160 turbines that will be installed offshore from north Wales will be assembled at the port of Mostyn in Flintshire. Mostyn will also benefit from the construction of an operations and maintenance base for the existing wind farms in Liverpool bay, North Hoyle, Rhyl Flats and, once complete, Gwynt y Môr.

In my constituency, where jobs in the old mining industry were lost, at least 100 long-term, skilled engineering jobs will be created in the port to staff the servicing of those facilities. On top of that, the actual construction of the facilities will see approximately 120 new jobs on site during the construction phase—a big boost to the local economy.

The £50 million lease and investment into port of Mostyn is Gwynt y Môr’s highest value long-term contract awarded to a company in Wales. That reinforces the company’s commitment to the port of Mostyn and investing in north Wales. It also underpins the work that the port of Mostyn is doing in exporting wings from the Airbus manufacturing site at Broughton in the constituency of my hon. Friend the Member for Alyn and Deeside. The port has had to diversify and bring in wind energy, but green energy is providing sufficient resource and employment to ensure that we can maintain development. As my hon. Friend knows, if the wings were not exported via Mostyn docks, and if that were the sole business, that would have a severe impact on the ability of Broughton to manufacture aircraft wings.

[Mark Tami]

I was about to make that very point. If Mostyn had been unable to expand into other areas, the whole cost would effectively have fallen on to Airbus, because that is the route that the A380 wings take. There would not be a feasible alternative route, and that would impinge on whether the work was at that factory.

[Mr Hanson]

Green energy supports the manufacturing, construction and development base at port of Mostyn, and that underpins not just the energy sector in north Wales, but a wide range of other manufacturing industries, too. The 100-plus new jobs will also contribute more spending into the economy in north Wales. There will be a big impact on the economic base of our area.

The third issue I mentioned is the community benefit. I am sure my hon. Friend the Member for Vale of Clwyd (Chris Ruane)—[Interruption.] We have just had a boundary review and we are trying to work out where the boundaries are. I am sure my hon. Friend will speak about community benefits as well, but Gwynt y Môr will invest £20 million in local communities over the lifetime of the contract. The Rhyl Flats community fund is investing resources in Conwy and Rhyl. The North Hoyle partnership has funds linked to Denbighshire coastal partnership, including money for my constituency, too.

[Mark Tami]

Does my right hon. Friend agree that, while that is very welcome, we still have a long way to go to catch up with countries such as France, which has areas that try to bid for these projects, whether nuclear power, wind or whatever, because there are great incentives—cheaper electricity, or some other payback? While there is some good stuff coming, we still have some way to go to get the issue moving.

[Mr Hanson]

I agree. This is a start, but it is a contributor to community benefits, which I want to spread wider than just the boroughs of Conwy and Denbighshire; boroughs in Flintshire in our area have an impact on economic activity in a negative as well as a positive way in respect of the development of wind farms.

Wind farms in north Wales are positive for the green economy, our local economy and the community. I have three requests to make of the Minister. First, I hope that he recognises, gives credit to and celebrates the fact that the industry is developing and flourishing in our area. I say that not to cause a political row between us, but to get consensus in the Chamber and with the Assembly on these matters.

The Secretary of State for Wales wrote a blog in 2009, when the Gwynt y Môr wind farm was being developed, under the headline, “Well done, Conwy”:

“I was extremely pleased and relieved to hear that Conwy County Councillors today resolved to seek counsel’s opinion on the merits of an application for judicial review of the decision to grant consent for the development of the proposed Gwynt y Môr wind farm.”

I could quote three or four other blogs from the Secretary of State, expressing a mild cynicism about the benefits of wind farms appearing in north Wales, including for its economy. I do not wish to cause the Minister any difficulty, but I genuinely want him to give words of comfort and encouragement and to say that his Government, of whom he and the Secretary of State are part, are committed to helping develop these industries in our area.

[Albert Owen]

My right hon. Friend is right to raise the issue of the Secretary of State’s previous remarks, although I am sure that the right hon. Gentleman is now in line with Government policy. The Secretary of State mentioned the negative impact that offshore wind farms would have on tourism. However, the opposite is the case, if anything. The chair of the association for north Wales tourism has said that the new development of Gwynt y Môr, and others, would not impact on tourism at all. So people who understand the industry are saying that there would be no negative impact as a result of offshore development in north Wales.

[Mr Hanson]

I am grateful for my hon. Friend’s intervention. I represent places such as Talacre and Gronant, at the north end of my constituency, where holiday activity goes on undiminished by the wind farms in those areas. I want to get recognition from the Minister that the Government are committed to helping develop these important industries.

Secondly, we need the Minister to provide certainty about certain matters, because that is important in the context of the forthcoming Energy Bill. For the moment, there is the question of long-term contracts for difference to support renewable and low-carbon energy, guaranteed by fixed prices for output. We need clarity from the Government on the allocation process for contracts for difference. We need the Government to give certainty to the industry about timetables, including on targets for decarbonisation, so that long-term investment by wind farm developers can be considered not just in the context of the previous Government or this Government, but of any future Government, who will have to make long-term financial decisions. Cross-party consensus on the need for developing this industry, if I can get it, will help give that certainty.

Thirdly, I want to throw into the mix the fact that at Mostyn docks and in the offshore developments, we are assembling material constructed and built elsewhere. The Swedes—the Scandinavians—are masters at the production of wind-farm technology. We have probably missed the chance now, although we in the previous Government pressed to do it. The Minister should cast an eye gently on what we can do to help encourage UK-based manufacture and development skills. It is great to assemble at Mostyn docks and to have the skills offshore, but ultimately we are missing a trick if we do not consider the potential for future manufacture and technology development in our country.

I ask the Minister for confidence and certainty, to look at manufacturing and to please help support this industry, which really does create jobs in our area.