Biomass Energy

Debate between David Simpson and Ronnie Cowan

Wednesday 24th February 2016 Westminster Hall

[Ronnie Cowan (Inverclyde) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Crausby. I thank the hon. Member for Selby and Ainsty (Nigel Adams) for bringing forward this debate and for his continued work on biomass and renewable energy. I hope we can put cross-party pressure on the Government to do the right thing by the electorate of the United Kingdom.

It will be apparent to everyone present today that unabated climate change presents a major challenge to legislators in the UK and across the world. We must address the environmental health of our planet and the decarbonisation of our energy supply as priorities. Tackling the problem will require an unprecedented level of international co-operation. In some instances, our best course of action is to provide a positive example for other nations to follow, and I am proud of what Scotland has been able to achieve so far.

The Scottish Government are on track to meet their 42% emissions reduction target by 2020, and around half of Scotland’s current energy consumption is supplied by renewable wind power. We have also outperformed the UK on total emission reductions from a 1990 baseline in every year since 2010, and Sweden is the only European Union state to have outperformed Scotland. Professor Jim Skea, a member of the UK Government’s Committee on Climate Change, said:

“If you divide where Scotland is now, versus where it was in 1990, it is actually among the world leaders. That is unambiguous.”

The Scottish Government aim to have 100% of our electricity consumption generated from renewable sources by 2020. If we are to meet that ambitious target, biomass must play a key role in that transition. I welcome the Scottish Government’s strong commitment to this energy source.

Thanks in part to that support, over 2,000 jobs in Scotland are now based in the biomass sector, and Scottish Renewables believes that the industry has

“massive potential for growth in the future.”

West Coast Woodfuels, a company located in my constituency of Inverclyde, is one such organisation, and it shows the potential for growth in the biomass sector. Founded by farmer Alastair McIntyre, it produces woodchip that is dried in specialised kilns and stored on site. The raw timber for the operation comes primarily from local and sustainable sources. The rise in demand means that the company is now selling its product to a range of public and private sector customers. The example of West Coast Woodfuels shows that biomass is most efficient as a source of energy when the producer and customer are located close to each other. The environmental benefits of biomass are reduced if stocks of wood are hauled great distances across the country to be turned into woodchip, only to be transported on as a source of fuel. A strong local market for biomass fuel, close to producers, minimises carbon emissions and is a healthier option for our environment.

The economic benefits to our local economies should also be self-evident. Biomass plants create jobs in the construction, operation and maintenance of facilities. Employment opportunities are also created in the supply chain, not only through transportation but in growing and harvesting raw materials. The benefits extend beyond the biomass industry and into the wider renewables sector. A report issued by NERA and Imperial College London concluded that biomass

“is a reliable and flexible power source that provides firm capacity. Including biomass as part of the generation mix is likely to lower the costs associated with adding more wind and solar power to the system. This means that it can enable the integration of other intermittent renewable technologies (by providing back up generation), and help to facilitate the phasing out of old coal-fired power stations, whose closure is putting pressure on security of supply.”

If we are to continue enjoying the benefits of the biomass sector, adequate support must be forthcoming from the UK Government.

I share the concerns of those in the renewables sector that the decline in UK Government support not only prevents the industry from meeting its full potential, but damages investor confidence. Had the UK Government maintained their previous levels of support, the viability of many projects would not be in question. The cuts undermine Scotland’s renewables ambition, they are bad for our environment, and they are hurting businesses and consumers in my constituency.

[David Simpson (Upper Bann) (DUP)]

Does the hon. Gentleman agree that there was widespread disappointment at the Government’s bringing forward of the closure date for the renewable heat incentive? It has caused problems for the poultry sector and major difficulties for many farmers, who will not be able to avail themselves of the scheme.

[Ronnie Cowan]

The hon. Gentleman has either read my mind or read my speech over my shoulder, because I was about to move on to the renewable heat incentive. I was particularly disappointed by the Chancellor’s announcement that spending on the RHI would be some £690 million less than previously forecast by the Office for Budget Responsibility. The UK Government’s own reports have shown that the RHI has been an important tool in pushing forward the decarbonisation agenda. Data issued by the Department of Energy and Climate Change found that two thirds of users would not have installed renewable heat technology without the RHI. It is therefore difficult to understand why the UK Government feel it necessary to make these changes, which are being imposed against expert industry advice and to the detriment of jobs, investment and the environment.

I regret that we can only scratch the surface of this broad subject in the time available today. I would like to discuss a range of further issues given the opportunity, including how best to incentivise biomass use, address air quality concerns and ensure biomass producers are fairly treated through the tendering and procurement process. Most importantly, I want to see the UK Government abandon their policy of managed decline in support for renewables.

Small Business Saturday

Debate between David Simpson and Ronnie Cowan

Tuesday 1st December 2015 Westminster Hall

[Ronnie Cowan (Inverclyde) (SNP)]

I beg to move,

That this House has considered Small Business Saturday

It is a pleasure to serve under your chairmanship, Mr Stringer. I thank the powers that be for selecting this topic for debate. I am delighted that we have the opportunity to discuss how vital small businesses are to the prosperity of the UK’s nations.

The importance of small businesses should be self-evident. Indeed, 99% of businesses in the UK have fewer than 49 employees, accounting for 48% of total employment and 33% of turnover. That amounts to 15 million people in the UK being directly employed by small businesses, with a turnover of £1.75 trillion. They are the drivers of economic growth, creating jobs and serving the requirements of our communities. Whether they are—in no particular order—local tradesmen, retailers, service providers or catering outlets, the benefits of small businesses extend beyond the employees they hire. Just under a fifth of all small and medium-sized enterprises in the UK operate in the construction sector and 15% operate in the professional, scientific and technical sectors, and those businesses complement the success of associated industries such as manufacturing. We should therefore recognise that the influence of SMEs cannot easily be quantified simply by looking at their own output as it extends into the wider economy and communities.

In bringing forward this debate, I wanted to stimulate the discussion around how we can continue to support small businesses and to highlight the challenges that they face. For the last three years, Small Business Saturday has provided the opportunity to focus the minds of consumers, business people and policy makers on the indispensable contribution made by small businesses.

[David Simpson (Upper Bann) (DUP)]

I congratulate the hon. Gentleman on obtaining this debate. One issue that our small businesses, whether they are on the high street or are another form of SME, face today is that of business rates, which are crippling many companies. I am sure he would agree that they need to be looked at.

[Ronnie Cowan]

I certainly do, and that is a topic that I hope to cover later on.

Last year, 16.5 million UK adults supported a small business on Small Business Saturday, and I am sure that this year’s campaign will be equally successful when it takes place on Saturday 5 December. However, although it is important to raise awareness of the challenges small businesses face on the first Saturday of every December, we must ensure that the campaign leaves a positive and lasting impact on small businesses all year round.