Infrastructure Bill [Lords]

Duncan Hames Excerpts

Monday 8th December 2014 Commons Chamber

[Mr Hayes]

We are doing it on the grounds of practicality. The hon. Lady and I, during a recent session of the Committee she chairs, exchanged thoughts on the issue of emissions. She will know that there is always a balance to be struck. She refers in her intervention to the preferred threshold of 10 units, but as I say there is always a balance between inhibiting or even preventing development at all and achieving our desired outcomes on carbon. I am happy to hear representations on all these matters, as I want this Bill to be as good as it can be. We are trying to strike that balance, which is the frank answer to the hon. Lady—and I am known in this place for giving straightforward and frank answers.

[Duncan Hames (Chippenham) (LD)]

Will the Minister give way?

[Mr Hayes]

For another frank answer perhaps?

[Duncan Hames]

The Minister speaks of striking a balance, but I wonder whether he will help us by saying what assessment has been made of the overall impact of the Bill in its entirety on the Government’s ability to meet their legal obligations under the fourth carbon budget?

[Mr Hayes]

The hon. Gentleman will be familiar with the impact assessment. I have a copy here and I would be happy to let him read it. It is available and if he looks at that impact assessment he will be able to gauge how far we have performed the analysis he describes. If he feels that we have done so insufficiently, I shall be more than happy to correspond with him directly on the matter. I know that he always brings fresh thinking to the consideration of this House.

The Bill will enable communities to be offered the chance to buy a stake in new, commercial renewable electricity schemes in their local area, so that they can gain a greater share in the associated financial benefit. We would consider using this power only if the voluntary approach to community shared ownership in renewable energy did not bear fruit. A right to buy would give communities the opportunity to have a real stake and sense of ownership in projects happening in their area. The Shared Ownership Taskforce recently launched its voluntary framework, and we brought forward an amendment to the Bill in the other place in order to provide greater certainty on the minimum time scales for this voluntary approach to take effect. We are proposing, too, to allow changes to the renewable heat incentive to provide more flexibility in financing arrangements for renewable heating systems.

Let me come on now to what I described as the exciting part of my speech, which deals with the Wood review. We recognise that increasing renewable energy sources is important, but we realise that a dynamic and flourishing oil and gas industry remains important, too. It can contribute to our energy security and to the economy, supporting around 450,000 jobs and showing record capital expenditure in 2013 of around £14 billion.

The Government agreed with the findings of Sir Ian Wood’s independent report, which concluded that changes to the recovery and stewardship regime in the North sea could deliver around £200 billion of additional value to the UK economy. We intend to deliver all of Sir Ian’s recommendations, but further work is required with stakeholders on a number of detailed aspects and parliamentary time is scarce. We are therefore starting by introducing two measures: one will put into statute the principle of maximising economic recovery of petroleum from UK waters; and the second will introduce a power so that the costs of funding a larger, better resourced regulator can be paid for by the industry rather than through general taxation, as is currently the case.

We need to explore all our energy options. This is the age of increasing costs, uncertainty and insecurity in overseas energy suppliers. The shale gas industry in the UK is at an embryonic stage, and the changes in the Bill would simplify the procedure by which onshore gas and oil and deep geothermal developers can obtain underground drilling access, and are accompanied by the industry’s commitment to pay communities in return for the right to use deep-level land. We do not yet know what is commercially viable, but we are encouraging exploration. These provisions will help us to address this question to ensure that the regulation is compatible with these new methods of underground drilling.

There has been a great deal of unfounded scaremongering on the environmental impacts of shale gas, much of it based on examples from other jurisdictions. The Bill does not alter the involvement of local authority planners; nor does it erode in any way the strength of our regulatory regime, the effectiveness of which has been demonstrated over 50 years of development, which is one of the strictest and safest in the world.

--- Later in debate ---

[Stephen Williams]

We will develop the proposals after we have received the results of the consultation. We want this to be a workable, practical way for zero-carbon homes to be built by house builders of all sizes, but one thing we will certainly do when we introduce the secondary legislation that will probably be necessary is to ensure that there can be no gaming of the system by anyone. I hope that gives my right hon. Friend some reassurance.

Let me now say something about the energy provisions. Britain needs more home-grown energy. We expect to be importing nearly 70% of the gas that we consume by 2025 if we do not develop other sources such as shale. We must maximise domestic production of the fuels that we need for the transition to a low-carbon economy, including gas, renewables and new nuclear, and we must use our energy more wisely.

[Duncan Hames]

Will the Minister give way?

[Stephen Williams]

I have limited time left.

Both coalition parties know that this is an issue of great sensitivity and concern to many of our constituents. The provisions are narrow, but the Government will listen very carefully to all concerns that are expressed in Committee and on Report, and will seek to address them while the Bill progresses through Parliament.

[Duncan Hames]

I thank the Minister for giving way; time is indeed short. In listening to all those concerns, will he ensure that the Bill Committee hears evidence from the Government’s Committee on Climate Change on the impact of the Bill?

[Stephen Williams]

I assure my hon. Friend that we will take all evidence into account in Committee, as is now the normal practice when Bills progress through the House.

The Bill deals with access to land, proposing that horizontal drilling for shale or geothermal should take place only at a depth of 300 metres or below. As the right hon. Member for Hitchin and Harpenden (Mr Lilley) pointed out in a thoughtful speech, that is far lower than many other drillings underground, including the London Underground. As the son of a miner, I should mention coal mines as well.

The Bill will keep people and goods moving around the country. It will remove some obstacles to house building, and will ensure that new homes are built according to a tough zero-carbon regime. It provides for community ownership of local electricity, and will give Britain long-term energy security. My right hon. Friend the Minister of State—the roads Minister—said that the A303 improvements would be the greatest improvements in the area since the stone age. I am not sure whether that is the case, but it is certainly true that under this coalition Government, investment is revealing the greatest revamp of strategic infrastructure since Victorian times. The Bill makes possible easier delivery of that investment.

I urge the House to reject the amendment, and I commend the Bill to the House.

Question put, That the amendment be made.