British Bioethanol Industry

Emma Hardy Excerpts

Wednesday 16th January 2019 Westminster Hall

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

It is a real pleasure to serve under your chairmanship, Mr Gapes; I hope that this is the first of many such occasions. I congratulate my hon. Friend the Member for Scunthorpe (Nic Dakin) on securing the debate. Just before I came into the Chamber, I was talking to him and I said how tiring it is to feel constantly angry about things. I had just left the main Chamber, where people feel constantly angry. I do not want to get angry and frustrated, so I will settle for deep disappointment and upset instead.

This is significant. The Government’s failure to fulfil their promise on E10 is not just an environmental issue, although that is crucial, and neither is it just an economic issue, although it has sacrificed so many high-quality jobs in my constituency. If the Government do not keep their promises to business, how can businesses ever trust them again? What faith can businesses have that we want them to come to my constituency, to invest there, and to provide those good-quality jobs in future? Businesses need to know that the Government can be trusted when they promise that they are going to do something. My contribution to the debate will focus on the wider significance, which is about more than whether to have E10; it is about whether we need a Government who fulfil their promises to business, especially in the uncertain years ahead.

Vivergo closed—it announced that it was closing on 2 August—because the Government did not introduce E10 as they had promised. Vivergo closed its headquarters, which were in my constituency, and consolidated all its staff in the Saltend Chemicals Park in the east of Hull. The Government passed the RTFO in 2018, but they have continued to drag their heels on the introduction of E10. Mark Chesworth, the managing director of Vivergo, said that the closure was the Government’s fault, because the political indecision had a highly damaging impact on the business and its jobs, and left it vulnerable to changeable market conditions.

It is difficult to put across Vivergo’s significance in my local area. The day that it announced its multi-million pound operation was one of fantastic good news for the area. We want skilled jobs in the constituency. People celebrated and nearly all the local MPs from across the party went there for the photo call and to congratulate the company on opening the plant—it was seen as a good news day. Vivergo contributed money towards Hull’s bid to be city of culture, and to wider projects across the whole of Yorkshire. I am not just having a moan about something that affects my constituency; the Government need to understand that the closure’s significance reaches far wider than just my constituency.

We in Kingston upon Hull West and Hessle know that we need jobs perhaps more than other areas of the country. Some 7.9% of our population are claiming jobseeker’s allowance, which is more than double the UK average. A report by the Centre for Cities think-tank found that Hull has the lowest average wage in the country, at £376 a week. We want high-skilled and high-paid jobs such as those that Vivergo provided.

The wider impact hits beyond my constituency. As my hon. Friend the Member for Scunthorpe said, the plant bought 1.1 million tonnes of feed wheat, sourced from around 900 farms across the Yorkshire region. In all the time that I have been active in the Labour party, this is the first time that farmers from the constituencies of Conservative MPs have been so desperate to meet me and tell me their problems, because they do not feel that the party with which they usually associate themselves is listening to them on this issue. Vivergo supported 3,000 jobs—directly and indirectly—and its contribution to the local economy was £600 million.

As a local MP, I want skilled jobs, which is why I have pushed so hard and talked about Vivergo for such a long time. On 30 November 2017 I wrote to the Secretary of State for Transport on the matter, seeking clarification on the renewable transport fuels obligation. On 15 February 2018 I received a reply from the Minister of State, the hon. Member for Hereford and South Herefordshire (Jesse Norman), which committed to introducing the relevant changes in April 2018. I asked four questions about biofuels and the renewable transport fuels obligation on 8 December 2017. I asked two questions about excise duties and the way biofuels are taxed on 5 December 2017. I met Vivergo in Hull and in London on a number of occasions. The issue is not new to the Government; they cannot claim not to be fully aware of it.

[Martin Vickers (Cleethorpes) (Con)]

I share the hon. Lady’s passion about this issue. She referred to questions she asked back in 2017. I think that the hon. Member for Scunthorpe (Nic Dakin) and I have seen three or four successive Ministers about the matter. I say to the Minister that one thing that we want to get from the debate is a positive route to making a decision, rather than keeping farmers, Vivergo workers and others hanging on.

[Emma Hardy]

The hon. Gentleman makes an excellent contribution. I am fully aware of how long the campaign has been going on and of how long people have been talking about the issue.

The incompetence, the lack of commitment, energy and dedication, and the dereliction of duty—hon. Members can add their own adjectives to describe the Government—has not only cost families in my constituency their jobs and incomes; the damage goes much further. The Government’s failure to fulfil their promise could damage future investment from other businesses in the area. It is therefore vital, for that reason and no other, that the Government keep their promise on E10 and take immediate action.

--- Later in debate ---

[Ms Ghani]

The hon. Gentleman spoke passionately about the Ensus plant in Wilton in his constituency. I cannot make that commitment here and now, but a meeting is due to take place—it is in the diary—and there will be further clarification after that. As has been said, that meeting will be open to all those who wish to attend. I cannot give that confirmation right now, but we are committed to working with the sector to ensure that the plants are open and running as soon as they can be.

Plant closures were discussed throughout the debate. The hon. Member for Kingston upon Hull West and Hessle made a very passionate contribution, but I must take her up on one point. I know that she wants this debate to be as respectful as possible, because we do not want to reflect what is happening in the main Chamber on all occasions. She mentioned a Government promise, but I would argue that it was never a promise—we must be clear if something is a Government intention and how that should be perceived, as it is very different from the word “promise”. We must ensure that we are honest in our contributions.

[Emma Hardy]

The words I was using were those of the industry, so if the Minister has an issue with a promise being made by the Government, perhaps she should take that up with the industries involved. There is no way that any industry would invest many millions of pounds on a mere suggestion that the Government might be interested in it in future, and if they had not been led to believe that it was indeed a Government promise.

[Ms Ghani]

An interpretation of how a Government may respond and a promise are two very different things. The Department is working closely with the sector and will do what it can to support it. We must ensure that we understand the difference between what is and is not a promise.

We heard passionate contributions about the bioethanol sector and businesses in Members’ constituencies, and the halting of bioethanol production at Vivergo Fuels and Ensus plants last year is saddening and regrettable for all those impacted. I understand the frustration of those calling on the Government to act quickly to mandate the introduction of E10.

--- Later in debate ---

[Ms Ghani]

The Teesside massive, as I will call them, have no doubt put this issue back firmly on the Minister’s agenda, although no doubt it was already there. We always want to ensure that any consultation we undertake provides a good response to all involved—not just the sector providing the fuel but those putting the infrastructure in place and owners of classic or older cars.

There was mention of the impact on international roll-out. I was reflecting that the roll-outs in Europe have been quite mixed: in some places, they have done well and in others they have not fared as well as one might have assumed. We have to ensure that we get this right. I am hearing, and no doubt the Department is too, frustration at getting a response. That is why a meeting was agreed.

[Emma Hardy]

I am sure the Minister understands how frustrated everyone feels, including businesses. To go back to the central point of my speech, does the Minister not acknowledge that trust in the Government will be undermined, potentially undermining investment in areas such as ours, where it is desperately needed?

[Ms Ghani]

When Government make rash decisions that are not fully thought through, when a sector is involved, that further undermines trust in Government. That is why it is our responsibility to ensure that we get the right decision. Unfortunately, on occasion, that can take time. The hon. Lady’s frustration has no doubt been noted. It is absolutely right that if and when we roll out E10, we do so in a successful way, not least for EU bioethanol suppliers.

Given the barriers to introduction, it is right that we have taken time to learn from the experiences, good and bad, of the roll-out of E10 in other countries. If a decision were taken to mandate E10 further to last year’s call for evidence, we would also need to test the costs and benefits against firm proposals, ensuring that all those with an interest, including fuel retailers and motorists in particular, have an opportunity to submit evidence. If E10 is rolled out in future, the Government remain committed to ensuring that E5 remains available and that any introduction of E10 is well managed, with information on compatibility made available to vehicle owners.