Green Energy: Ports

Douglas Ross Excerpts

Wednesday 18th October 2023 Westminster Hall

[Douglas Ross (Moray) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Cummins. I apologise that I will have to leave before the end of the debate for a meeting at 4 o’clock.

I thank and congratulate my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) on securing this debate. I agreed with everything he said and noted his slight jealousy of how Scottish Conservative MPs are so good at cheering Ministers who come up to our constituencies. He also mentioned how bad the transport is in Labour-run Wales. It is also pretty bad in SNP-run Scotland, particularly if you are trying to get a ferry—but I digress. [Interruption.] Well, it’s true.

I want to focus for a few minutes on the issues in my constituency of Moray. Buckie’s proud history as a fishing harbour dates back many years, to 1878. It was the first large concrete harbour to be built in Scotland. We have seen a decline in fishing in Scotland over a number of years, so I was delighted when Buckie was chosen as the site for the operations and maintenance of the new Moray West offshore wind farm. That will bring 60 highly skilled jobs to the community of Buckie. I discussed this with the developer, Ocean Winds, and the local community at the opening event. This is not just about the jobs that are coming, important though they are; there will also be a long-term effect. The jobs will be there for the next three or four decades, so this vital work is coming to communities whose ports have experienced a downturn. It is long-term and highly skilled work.

Immediately before this debate, I met David Whitehouse from Offshore Energies UK. He has been doing a lot of work with oil and gas, but also with renewables and green energy. He was keen to speak about the opportunities available to ports across Scotland and the United Kingdom, and about the UK Government’s support to ensure that the infrastructure is there and is capable of taking us on to the next level.

The final area I want to look at is freeports in Scotland. I was delighted that one of the first announcements that the Prime Minister made after taking office was to deliver the two freeports in Scotland in conjunction with the Scottish Government. Our two Governments are working together to deliver freeports. I spoke to Calum MacPherson, the new chief executive officer of the Inverness and Cromarty freeport, which will have benefits for my Moray constituency and constituencies across the highlands. It is not just great news that we have a freeport there; it is levelling up in action, because that area has seen a decline in the working-age population. People will move to Cromarty and the area to support the tens of thousands of jobs that could be created as a result of the freeport.

The quayside depths provide Cromarty with an extremely exciting opportunity to be a real hub for the offshore renewable industry. Not only is it great that freeport status has come to both the highlands and the firth of Forth, but the jobs, investment and building up of the local community are being roundly welcomed by the vast majority of people. Sadly, some Scottish Government representatives are still against freeports, but I think the overwhelming majority of people in Scotland, particularly in the areas with freeport status, can see the benefits.

Work is being done to ensure that Scotland and its coast, and my Moray constituency, have the opportunity to be involved in the next stage of the offshore industry. Oil and gas is still an important industry in Scotland: 90,000 jobs rely on it. There is a strong future for it, as we have seen in polling this week. There are also opportunities in green renewables. I am delighted that the UK Government support that, and I am firmly behind them.

--- Later in debate ---

[Douglas Chapman (Dunfermline and West Fife) (SNP)]

It is a pleasure to serve under your chairmanship, Mrs Cummins. I am delighted to sum up in today’s debate on the contribution of ports to green energy. I really do thank the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) for securing this debate, which it is important to have at this time.

This debate gives me the chance to highlight some of the benefits, from a Scottish perspective, of the development of ports north of the border, where our green port ethos is centred on the importance of net zero and the just transition. At the heart of the Scottish Government’s unique approach to our green ports is the commitment to the development of renewable technology, an innovative environment and the promotion of decarbonisation, alongside the creation of well-paid, high-quality jobs and skills development.

In that sense, the fair work practices agenda is embedded in our green ports from the get-go, and progress on freeports and green ports must be monitored and evaluated to ensure a just transition. We want to ensure that we make the most of the skillset we have in Scotland, valuing the existing expertise across the energy sectors while transitioning from oil and gas to renewables, and training up the new generation of workers into high-quality work.

In developing the Scottish green port model, the Scottish Government were mindful of the more negative aspects of freeports and their reputation for poor working practices, deregulation, weak productivity and the lack of real benefits for their surrounding areas. Instead, in Scotland, we are centring on sustainability, environmental concerns and fairness to boost innovation in renewables, and focusing on a prosperous growth agenda for our local communities based around our ports.

[Douglas Ross]

Given everything positive that the hon. Member has said about freeports in Scotland, does he agree that it is disappointing that the Scottish Greens, who are in government with his party in Holyrood, do not support Scotland’s two freeports?

[Douglas Chapman]

I worked very closely with the Minister, Ivan McKee, when the green ports project was at its inception. We worked with the UK Government at that time as well, and Mr McKee was very supportive of the whole concept. There is more I want to say today that might give the hon. Member a bit more reassurance that we see the green port opportunity as just that: a real opportunity to develop the economy of Scotland.

Others have mentioned their own constituencies; I am the Member for Dunfermline and West Fife, which has one of the two green ports being developed in Scotland, at Rosyth on the firth of Forth, along with Leith and Grangemouth. I believe it will be transformative for the local economy and in trying to meet our environmental ambitions. The green port will feature a new freight terminal, offshore renewable manufacturing and green power generation capacity, skills development opportunities and new rail connections. The regeneration of this important logistical port should deliver a huge boost to the local community, through employment opportunities, and the wider economy in the surrounding area. It is good for energy security, good for creating prosperous communities and, importantly, good for the environment.

The Forth green port aims to bring £6 billion in private and public investment and will contribute £4 billion in gross value added. It has the potential to create 50,000 high-quality jobs, stimulate growth in renewable manufacturing, and develop offshore wind and various alternative fuel sectors. It will also support research and development investment and drive business growth for small and medium-sized enterprises and start-ups.

Alongside the development of the green port, I have been campaigning for a number of years to reinstate the ferry connection from Rosyth to mainland Europe, which will not only boost connectivity and trade prospects, but contribute to a reduction in harmful emissions by reducing both the tourism carbon footprint and road miles for freight transport. It would also reduce the pressure on the land bridge ports in the south-east of England. It is a good example of joined-up thinking for the climate and for the economy. I hope that the Minister and his colleagues will open their ears to this plea. The project currently has a logjam with the border and export authorities in London. If anything could be done to ease that pain, we could get ahead and ensure that the ferry service can start as soon as possible. In the Republic of Ireland, I have seen new ferry routes helping to boost exports. If Ireland can do it, why not Scotland?

The second green port will be based at the Inverness and Cromarty firth—another area steeped in industrial history and now playing a critical role in offshore wind. The project will place the highlands at the heart of the drive towards net zero. It will create 15,000 jobs in the area and a further 10,000 across Scotland and the rest of the UK, focusing on renewable and low-carbon energy production. Again, it is good for the economy, good for creating prosperous communities, and good for the environment.

Before I draw to a close, it is good to remind colleagues not just of the benefits of a just transition, but of its true definition. Scotland’s Just Transition Commission described it as a process whereby

“Governments design policies in a way that”

benefits the climate change agenda—benefits that are widely shared—but where

“the costs do not unfairly burden those least able to pay, or whose livelihoods are directly or indirectly at risk as the economy shifts and changes.”

I remind Opposition politicians that we are trying to lead on that in Scotland, but we need to focus on these ambitious climate and net zero targets to ensure that the just transition actually happens and remains meaningful.

In conclusion, the Scottish Government are committed to using the new green ports to attract investment into our economy. In addition, Scotland has all the potential to be a world-leading green energy producer, where the jobs, the revenue and the power rest with Scotland. The maritime sector also has a strong responsibility and an opportunity to be a key player in that ambition and to make the managed transition work for everyone. Between our industry sectors and Government, we can all benefit, but the message needs to be: let’s just do it.