Venezuela: Political Situation

Debate between Graham Stringer and Graham P Jones

Tuesday 5th September 2017 Westminster Hall

[Graham Stringer (in the Chair)]

Order. As it is the first day back, may I just remind Members that interventions should be brief? A large number of people wish to speak in this debate and there is limited time, so I ask people to observe that rule.

[Graham Jones]

I am grateful for the hon. Lady’s intervention. I say to her that it is the Government—her party—who are in power, and I am asking the current Government to tackle the situation on the streets of the United Kingdom. I can speak for myself and I condemn the regime, as I have done.

I want to turn briefly to the economic and political situation. I asked the House of Commons Library to update Members of the House and am grateful that it has done so. I am also pleased that it provided a debate pack for Members before the debate. It does a marvellous job and we should all thank it for that.

Venezuela is an economic basket case. Despite more than $1 trillion of oil revenues and billions of dollars from narco-trafficking and remittances, it is possibly the most mismanaged economy in modern history.

--- Later in debate ---

[Graham Jones]

My right hon. Friend is absolutely right; it is probably the most mismanaged country in the world. As a result, it is experiencing a brain drain: those who are educated are leaving Venezuela, because the regime is strangling intellectuals’ careers and the economy, and because their human rights are being undermined and they are being persecuted for taking part in demonstrations. Many of them are taking the decision to leave, which is having an adverse effect on Venezuela.

Venezuelan cities are the most violent in the world. Gangland violence, political brutality and drugs have taken hold as the economy collapses. The motorbike militia are quite frightening, and seem to operate hand in hand with the Maduro Administration to oppress the people of Venezuela. Inflation is at 720%, according to the International Monetary Fund, and is expected to surpass 2,000%. Rather than cutting budgets and raising taxes, the Chavista Government have borrowed from their communist allies Russia and China at high prices, and have resorted to printing money. The value of the Venezuelan bolívar has plummeted 99% against the US dollar since Hugo Chávez came to power.

The crunch will come later this year when Venezuela’s debt repayments come due. According to the World Bank, Venezuela has run a budget deficit in 15 of the last 17 years, and over the last four years, that deficit has averaged about 15% and climbing. Most of Venezuela’s reserves—what little it has—are in the form of gold, so in order to make debt repayments this year, Venezuela shipped gold bars to Switzerland. China has bailed out Venezuela by loaning it an eye-watering $60 billion, but now, according to analysts, even it is reluctant to give its Latin American ally more credit. Despite all this borrowing and huge receipts from legal and illegal exports, the country remains in dire straits. Food prices are soaring and hospitals are broken. If Members want further information, there are some good illustrative examples in the House of Commons paper provided for the debate.

Transparency International consistently ranks Venezuela as one of the most corrupt countries in the world. The House of Commons Library briefing paper states that former president Hugo Chávez

“inherited a weak economy which deteriorated further under the initial phase of his Presidency”,

with an average fall of 5.1% in economic performance, which was finally offset only by significant increases in world oil prices. Its modest rises in GDP between 2004 and 2008 were financed solely by rising oil prices. Oil accounts for 98% of total exports and 59% of official fiscal revenues.

Economic problems were exacerbated from 2005 onwards, when so-called unproductive land was nationalised, along with strategic industries including electricity, steel, cement, tourism, telecommunications, agriculture, oil services, and food distribution. By 2013, the World Bank ranked Venezuela 160th out of 185 nations for electricity availability, and 185th out of 185 for paying taxes.

We must question how Chávez’s daughter, Maria Chávez, has amassed a personal fortune of $4.2 billion. The Bolivarian revolution has spawned many “boligarchs”; the presidential palace, according to elected opposition members, costs more than $3.6 million a day to run. Such profligacy extends to the state oil company, whose US subsidiary, as reported in April by The Guardian, donated $500,000 to Donald Trump’s inauguration. All overseas trade is currency-controlled. Since 2003, the Chavista Government have controlled currency. The real currency rate is now thought to be 700 Venezuelan bolívars to the dollar, but those needing dollars require a Government permit.

As the economic situation deteriorates, the dollar is becoming the de facto currency, yet poor people cannot access it, which means they cannot access many basic goods that must be imported. The four Government rates, including what can only be described as mates’ rates, are just another means by which the Chavista elite can gain material advantage. Corruption and incompetence have been endemic throughout the Chavista regime. According to Transparency International, when the state oil company, PDVSA, took over a programme to buy food in 2007-08, more than

“1 million tons of food were bought for US $2.24 billion, but only a little more than 25% of the food was received. And of this figure, only 14% of the food was distributed to those in need. At one port alone, 3,257 containers with a total of 122,000 tons of rotten food were found.”

The United Nations says that President Maduro, the country’s leader, is responsible for “widespread and systemic” human rights abuses. The UN has said that blame for the oppression there lies

“at the highest level of the Venezuelan Government”

and slammed Maduro’s use of excessive force. More than 5,051 protesters were detained and 1,000 are still in custody after months of clashes, according to Foro Penal. Some 600 cases of torture have been referred to the International Criminal Court; according to the Casla Institute, 70% of torture cases involve sexual assault. There are 620 political prisoners in Venezuela, according to the Organization of American States, and 73 people have been killed by security forces during protests, according to UN High Commission for Refugees. The UN states that violations include house raids, torture and ill-treatment.

Before I conclude, it is worth briefly mentioning democracy in Venezuela. Although elections take place, the Government spend most of their time manipulating the law—either breaking it or changing it—with the sole intention of undermining the opposition. That has gone on for a considerable time. The line dividing state and the ruling party spending has been erased. Citizens and organisations loyal to the Government get most state jobs, contracts and subsidies, while overt opponents get nothing or are locked up. Proportional representation has been manipulated and mayors sacked to favour the PSUV.

I would like to ask the Minister about UK nationals caught up in Venezuela. My constituent Judith Tregartha-Clegg is worried that political turbulence could leave her daughter stuck in the country. She states:

“A few airlines have been cancelling flights out of Caracas because of the trouble and some just won’t fly there anymore.”

She expressed her worry and her daughter’s about the journey to the airport. She has received no support from the Foreign and Commonwealth Office so far. What support have the UK Government given to UK nationals living in Venezuela? Do they have a plan to evacuate all UK nationals from Venezuela if the situation deteriorates?

Judith has described to me the dire situation. Her daughter now lives in the town, as their home was taken over by squatters following 2006 legislation allowing for requisitioning of property. It is not safe outside urban areas. Schools do not have teachers, because they have not been paid.

In summary, condemnation is not enough. The UK Government must show resolve through tangible actions that will put pressure on President Maduro and his allies to respect democracy, human rights and the rule of law. The UK Government should lead on targeted sanctions against individuals in the Venezuelan Government responsible for drug trafficking, human rights violations and breaches of democracy. Those sanctions should include: freezing any UK assets belonging to those individuals; preventing UK individuals and companies from doing business with them; enforcing a travel ban against them; enforcing a ban on exporting weapons or any equipment that might be used for internal repression in Venezuela. I note that we give Venezuela export licences for military equipment. Surely that must stop.

Those are not economic sanctions against Venezuela. It is important that the UK targets the regime and not its citizens. Can the Minister update the House on what progress he has made in introducing sanctions, and when we are likely to see some? Many thanks for your patience, Mr Stringer; I look forward to the rest of the debate and to the Minister’s reply.

[Graham Stringer (in the Chair)]

There are four Members wishing to speak and I intend to call the Front-Bench spokespeople in 30 minutes, so the arithmetic is straightforward.

Future of Biomass

Debate between Graham Stringer and Graham P Jones

Monday 20th February 2012 Commons Chamber

[Graham Stringer]

The hon. Lady makes an important point.

The committee warns that the danger of that error is “immense”, stating that

“current harvests…have already caused enormous loss of habitat by affecting perhaps 75% of the world’s ice- and desert-free land, depleting water supplies, and releasing large quantities of carbon into the air.”

On that basis, it urges that European Union regulations and policy targets should be revised to allow bioenergy use only from additional biomass that reduces net greenhouse gas emissions without displacing other necessities such as the production of food and fibre. It advises that accounting standards should fully reflect all changes in the amount of carbon stored by ecosystem, and that energy production from biomass should be based on by-products, wastes and residues rather than on stem wood that would otherwise continue happily to grow as forest biomass.

The implications of that analysis were explored by Atlantic Consulting in “Biomass’ Forgotten Carbon Cost”, published on 8 November 2011. I have sent a copy of that paper to the Minister’s Department, as well. Atlantic Consulting looked at the pattern of typical biomass plants in the UK and found that 58% of their fuel tonnage derived from wood. Some of that is waste, such as end-of-life furniture and arboreal cuttings, and some is residue, such as that from sawmills. Unfortunately, however, the largest fuel component of biomass power is stem wood—that is, tree trunks harvested with the intent of using them for boiler fuel.

Atlantic Consulting proceeded to estimate the carbon footprint of a typical UK biomass plant. Interestingly, its footprint is 690 grams of carbon dioxide equivalent per kWh, which is well above the current UK average footprint of 520 grams per kWh and the lowest-carbon conventional gas-fired combined cycle at 401 grams per kWh. It also far exceeds the eligibility hurdle of 285.12 grams per kWh set for renewable obligation certificates from 2013. In that light, more than half of biomass-powered capacity would not qualify for credits under the renewables obligation. That could be a shock to the owners if they found that they did not benefit, and it would certainly be a shock to taxpayers if they found that they were subsidising higher-carbon power generation than the existing average.

Will the Minister provide the owners and the taxpayers with a measure of reassurance, because it appears that the current sustainability criteria for biomass are not stringent enough? If the European Environment Agency scientific committee or Atlantic Consulting are wrong in their thinking, will he please explain the situation, so that we can get this right for all concerned? The interests of the economy and of the environment demand clarity.

In October last year, the Scottish Government published a consultation that proposed removing all subsidy from large-scale woody biomass electricity plants. Large-scale electricity-only biomass was, in their view, inefficient and required more wood than the UK could produce. Although current plans are to import wood, there is no guarantee that biomass plant operators will look exclusively abroad for their wood, and the overseas supply might not be stable or secure. The current subsidy means biomass providers will be able to afford more than the current market rate for wood, which might push prices up and price out traditional wood industries such as sawmills, wood panel mills, furniture manufacturers and construction, which in turn, the Scottish Government said, puts hundreds of skilled rural jobs at risk. What is the Minister’s view of the Scottish policy stance? Are the Scottish Government wrong, or are they ahead of the game?

[Graham Jones (Hyndburn) (Lab)]

In the past five years we have seen wood prices rise by 55% because of biomass subsidies. An employer in my constituency, the furniture manufacturer Senator, which employs about 1,000 people has to compete against rising wood prices simply because of the biomass subsidy. Should not the Government consider the impact of biomass subsidies on employment in furniture manufacturers and other wood-using companies, as well as the impact on the environment?

[Graham Stringer]

My hon. Friend makes exactly the same point as I did in a different way.

I think that biomass deserves a place in the renewable energy mix of the future, but we need to get the rules of the game straight in advance, so that society is not left picking up the pieces of an impetuous policy.