(3 weeks, 2 days ago)
Commons ChamberI am going to make some progress, and then I will give way.
For nearly two years, we have been moving at speed on our mission to make Britain a clean energy superpower. We came to office amid a legacy of the irrational onshore wind ban; the fiasco of the allocation round 5 auction, with no offshore wind secured; and years of dither and delay on nuclear—the shadow Secretary of State amused me on nuclear, and I will come to that in a second. The Conservative Government left us exposed through 14 years of neglect, and we are clearing up their mess.
In less than two years—opposed every step of the way by the Conservative party—we have secured enough clean energy for the equivalent of 23 million homes through two record-breaking renewables auctions, but the lesson of these two fossil fuel crises is that we need to go further and faster.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
Will the Secretary of State give way?
My hon. Friend makes his point incredibly well, and I do want to say something about renewables before I move on. At the time of the AR7 auction, the right hon. Member for East Surrey said that we should cancel that auction. As I said, that auction secured power for the equivalent of 16 million homes—[Interruption.] Perhaps Opposition Members could listen for a second. That included offshore wind at prices that are 40% cheaper to build and operate than new gas. At the time, the right hon. Lady shouted out from a sedentary position “Gas is falling!”, as a justification for her position—[Interruption.] She did say that. Today, the gas price is around 50% higher than it was then.
There is a really important point here: there can be no clearer demonstration of the gamble that Conservative Members wanted us to take. What a terrible call; what a foolish position. We are at a time of the greatest geopolitical instability in generations. Anyone who would rationally learn the lessons from when Russia invaded Ukraine would say, “We cannot gamble on low fossil fuel prices, because this is what happens.”
I am going to make some progress. By contrast, we stand for national security through energy security and energy independence.
How we protect consumers is very important. My right hon. Friend the Chancellor showed at the Budget last year that she took decisions to raise taxes, including on the wealthiest, so that we could cut bills for everyone, and we saw that happen in April. The Gracious Speech also includes legislation to raise the rate of the electricity generator levy from 45% to 55%, as part of our plan to break the link between electricity and gas prices, and act on the excess profits that arise from that link. We are also making a big call: keeping in place the windfall tax on oil and gas profits during this conflict. In the last few weeks, we have seen profits from major oil and gas companies soar.
No, I am not giving way.
At this moment, what have the official Opposition, alongside the SNP, decided to call for? They have called for the Government to dump that policy. Let us get this straight: at the precise moment that the British people struggle with the effects of the war, those parties say that the priority with scarce resources is to cut taxes for the largest oil and gas companies making record profits. Let us be clear: no amount of false accounting or fuzzy maths can hide the facts about the idea of cutting these taxes at this moment of windfall profits to improve revenues.
The hon. Lady obviously does not understand that prices are going up, including from the North sea. Let us look at the amount that the tax raises. According to the Office for Budget Responsibility, even before this crisis the windfall tax was forecast to raise £5 billion by September 2027. Conservative Members—the official Opposition—have to explain: where is the money going to come from, then? They are going to cut that tax of £5 billion for the biggest oil and gas companies. By contrast, we believe that we should tax fairly and use the resources to help the British people.
I am not going to give way as I need to finish soon.
The energy independence Bill will legislate to help deliver the biggest investment in home upgrades in British history through our £15 billion warm homes plan. As part of this, we will act to help private renters. This is important, because it is about how we make sure that, in the drive to clean power, we help everybody in our society. It is a scandal that 1.6 million children living in private rented homes are suffering from cold, damp or mould, according to Citizens Advice. We say it is time to act. Minimum energy efficiency standards for renters were promised by the previous Government, then scrapped. The energy independence Bill will legislate for them by cutting bills for renters, and lifting 400,000 families out of fuel poverty by 2030.
Part of this goes to the question asked by the hon. Member for Strangford (Jim Shannon), who is no longer in his place. We believe that the drive for energy independence can deliver for workers and communities. We are already seeing the jobs that clean energy is creating across the country: 11,000 more workers in nuclear, according to the industry’s latest estimates, 8,000 more in offshore wind, with thousands more upgrading the grid, on the way to 400,000 extra clean energy jobs by 2030, and £90 billion of private investment announced since the election.
I am not going to give way.
We want to ensure that those jobs are good jobs, so we will amend employment rights legislation, as part of the energy independence Bill, to enable us to bring the rights of offshore renewables workers in line with those working in oil and gas. It is by driving forward in clean energy that we have the best chance of a fair transition in the North sea. Some 70,000 jobs were lost in less than a decade under the last Government. We are determined to lead the world in industries such as offshore wind, hydrogen and carbon capture, and we will continue to use North sea oil and gas for decades to come by keeping existing fields open for their lifetime. That is why the energy independence Bill will legislate to introduce transitional energy certificates, something the industry has welcomed. I also say to Reform Members that we look forward to debating their plans for fracking during the debate on the EIB, because fracking will make no difference to bills. It is dangerous and roundly opposed by local communities, and we will act on it.
My hon. Friend puts it well. There is something ironic about the fact that Reform says nationally that it wants fracking, but its representatives in Scarborough and Lancashire seem to say that they are against it. From now until the general election, we are going to be asking where Reform candidates stand: is it with their local community, or is it with the fracking industry?
No.
I have set out the approach to energy security that underpins this Gracious Speech. Above all, we will learn the lessons of the fossil fuel crises of our age. We will build our energy independence, tackle the affordability crisis, deliver good jobs and investment in our communities, and make the right decisions for today’s generation and future generations. I commend the Gracious Speech to the House.
(10 months, 3 weeks ago)
Commons ChamberThe answer is that we are not. As the right hon. Gentleman knows, the reality is that the North sea has been a basin in decline and that 70,000 jobs were lost under the previous Government. The question is: do we create the jobs of the future as well as maintaining existing fields for their lifetime? This Government are committed to doing so. If he wants to see those jobs, he should support our plans.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
Tempted as I am to wax lyrical about the beauties of Aberdeenshire, I will instead ask the Secretary of State a very simple question. By this time next year, how many jobs will GB Energy have created in Aberdeen and Aberdeenshire?
GB Energy will create thousands of jobs across the country, including in Aberdeen. Here is why GB Energy really matters: we have chosen to put its headquarters in Aberdeen, as we recognise that Aberdeen is the clean energy capital of our country—not just for oil and gas, which is important, but for the future. SNP Members are chuntering on the Front Bench, but they never did anything to create that future for people in Aberdeen.
(10 months, 4 weeks ago)
Commons ChamberMy hon. Friend, who speaks with such expertise on these matters, is 100% right. The biggest enemy of investment is uncertainty. That is why I appeal to all parties to stick to what we have legislated for in this country, in order to give that certainty.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
I rise not to call the Secretary of State an eco-warrior, as Members of this House are so keen on doing from time to time; in fact, I agree with him on the scale of the climate and nature emergency. I do not want to spoil the cross-party support here, but the fact is that when the Labour party was in opposition, it promised an investment of £28 billion in the just and green transition. Will he apologise to the people of Scotland—no, to the voters in Scotland—for reneging on that promise?
What I will say to the people of Scotland is that the Acorn carbon capture and storage project has been talked about for years, and it is happening because of a Labour Government. We have a publicly owned energy company, Great British Energy, and we have our clean industry bonus. This is a Government who are actually delivering for the people of Scotland, and those across the UK.
(11 months ago)
Commons ChamberI thank my hon. Friend for that really important question. The impact on Scotland is an important dimension here, because Scotland has really exciting plans to drive forward renewable energy, particularly offshore wind. It can be a massive job creator for the future, and it is something we are really focused on. One other issue with zonal pricing is that I fear it would have had quite an adverse effect on the Scottish green economy, which was a point powerfully made by lots of different stakeholders. I can definitely say to my hon. Friend that we are 100% committed. We think that Scotland has a rightful place as an energy capital and an energy powerhouse, and offshore wind is a crucial part of that.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
Thank you for allowing my question, Madam Deputy Speaker. I must apologise to the House and the Front Bench for being a little late.
I appreciate the high-wire nature of the act that the Secretary of State and his ministerial team are trying to deliver, but there are two litmus tests in Scotland that are absolutely crucial. First, private investment is essential to make the journey to net zero happen. Secondly, Scotland is such an energy-rich country, as he referenced, and yet we are paying the highest prices for tariffs and standing charges. Will his statement make it easier for private investment to come in and deliver us towards that journey to net zero, and does he foresee lower energy costs for consumers in Scotland?
The answer to both those questions is yes. The first point the hon. Member raises is important and goes to the question asked by my hon. Friend the Member for Edinburgh North and Leith (Tracy Gilbert), which was on the fears that lots of people had that it would dry up the renewables industry in Scotland if we went down the route of zonal pricing. That is why we have opted for the reformed national pricing system that we have talked about. To elaborate on the second point, building this clean power system that can lower wholesale prices, which is the absolute prize here, is the route to lowering energy costs for people in Scotland and across the UK.
(1 year, 2 months ago)
Commons ChamberMy hon. Friend should not be so shy and retiring. He makes a really important point. I listened to the interim shadow Secretary of State, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), on the radio this morning. He made net zero 2050 sound like a target dreamed up by me, but it is not. It was Theresa May, the former Conservative Prime Minister, who legislated for net zero by 2050. The hon. Member was her Parliamentary Private Secretary at the time—he was supposed to be the man implementing it. She set the target because it was the right thing to do, so that we can have cleaner home-grown energy, get the jobs, and protect future generations.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
The plans for a green generator at the Peterhead power station in my constituency are shovel-ready, but they depend on approval for the Acorn project at St Fergus. On 12 November last year, the Minister for Industry stated in response to a question from me that more information would be available on the track 2 projects “in the coming months.” Given that four months have passed, can the Secretary of State provide an updated timescale and outline what the next steps will be?
I support the Acorn project; it is really important. For reasons that the hon. Member will understand, the right time to make decisions will be at the spending review in June.
(1 year, 5 months ago)
Commons ChamberMy hon. Friend is right about this. We must not have short memories here, because the truth is that the cost of living crisis that we saw after Russia’s invasion of Ukraine not only hit families and businesses across Britain, but continues to hit them today. That is why the drive for clean power is so important. Every solar panel we put up, every wind turbine we erect, and every piece of grid we build makes us more secure as a country.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
(1 year, 8 months ago)
Commons ChamberLet us be absolutely clear about this, because that was a significant intervention from the hon. Gentleman. Here we have what claims to be the party of working people opposing jobs for working people right across the country. That says all we need to know about the hon. Gentleman: outside this House, he pretends to be in favour of good industrial jobs for Britain; in this House, he opposes them.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
I welcome the announcement that has been made, but the Acorn project in St Fergus, between Fraserburgh and Peterhead in my constituency, has been waiting for years, following a promise of jam tomorrow from the last lot. Opposition colleagues have asked for a definitive statement regarding progress on the project. I know that it is a track 2 project, but I am deeply impressed by the extent to which the Secretary of State is prepared to move things forward rapidly, so can he please give us some sort of timescale for the Acorn project today?
I am grateful to the hon. Gentleman for the tone of his question. I do understand that, just as track 1 was led a merry dance by the last Government, so too was track 2. The current Government have been in power for three months. We are moving at speed, and we have got track 1 over the line. These are obviously decisions that the Chancellor will have to make in the spending review, for reasons the hon. Gentleman will understand. I just say to him that we are absolutely committed to track 2, including Acorn.