(8 months, 4 weeks ago)
Commons ChamberThe potential loss of 2,800 jobs at Tata Steel in Port Talbot is devastating for workers and their families, with possible knock-on effects for Trostre in Llanelli. As well as investing in the electric arc furnace, will the Government commit themselves to primary green steelmaking in the UK to preserve our security and our jobs?
The hon. Lady should, alongside us, celebrate the £500 million that the Government are contributing as part of an overall £1.25 billion investment in the modernisation of steel production at Port Talbot through, for instance, the electric arc furnace. Government and industry will also invest £100 million in skills to ensure that there are thousands of jobs for the future, and that we reduce emissions as well.
(10 months, 1 week ago)
Commons ChamberIt will be useful for us both if I write to my hon. Friend and set out the technical assessments, constraints and issues around that, because he makes an interesting point.
The Government have finally committed to a carbon border adjustment mechanism to protect our energy-intensive industries from being undercut by imports made with dirtier energy or in more heavily polluting processes. Will the Minister explain why the Government are delaying that until 2027, when the EU is introducing equivalent legislation a whole year earlier? Will he speak urgently to ministerial colleagues about bringing that date forward, both to protect our industries and reduce our carbon footprint?
I thank the hon. Lady for her support for the introduction of a carbon border adjustment mechanism. This is to make sure that we do not have carbon leakage—to use the jargon—where carbon costs imposed on companies here lead to that production simply going abroad, with no betterment to the planet. His Majesty’s Treasury takes the lead on this particular policy, but I will ensure that her sentiments are passed on to my Treasury colleagues.
(1 year, 2 months ago)
Commons ChamberMy hon. Friend is right. Last year we were dependent on fossil fuels for 77% of our energy. If we import more gas from abroad, it will be in the form of liquefied natural gas, which, according to a report from the North Sea Transition Authority two weeks ago, has four times the production emissions of domestic gas. The Scottish National party, ably supported by the Labour party, wants to threaten 200,000 jobs, £50 billion of tax revenue over the next five years, and the very subsea engineering and technological capability—not to mention the balance sheets—that we need to develop hydrogen, carbon capture, usage and storage, and the rest of the transition. It is madness, and it is the policy of the SNP.
Yes, we need increased electric arc capacity to reprocess more scrap steel in the UK, but Trostre tinplate packaging works in my constituency needs a grade of steel that can be produced only by the blast furnace process, until green production technologies are developed. With 23 such projects elsewhere in Europe, will the Secretary of State commit to investing in developing these technologies at Port Talbot, thus reducing emissions and keeping jobs in Port Talbot and Llanelli?
I share the hon. Lady’s enthusiasm for keeping those jobs, which is why we are investing hundreds of millions of pounds to ensure that these industries can make that transition. I entirely agree with her on the importance of innovation and making sure it is embedded so that not only do we sustain those industries but so that, through innovation, we can strengthen them in the years ahead.
(1 year, 2 months ago)
Commons ChamberMay I pay tribute to the right hon. Gentleman? I met him in his constituency when I visited the European Marine Energy Centre and saw for myself some of the projects in the water. I am personally determined to ensure that tidal stream continues to grow. We maintain our global leadership, with a very high percentage UK supply chain as a further positive to it. He tempts me to get ahead of myself on policy, but I cannot do that. However, what we are doing and what our dedicated pot this year did is further strengthen that so that we can get in a position where that might be a realistic policy position to take.
Even with a higher price, offshore wind would help to slash bills. When the Minister saw the Irish Government recognise inflation, up the price and proceed to a successful auction, what discussions did he have with the industry and with Treasury colleagues about the price to be set?
I thank the hon. Lady for her question, which is a good one. Obviously, we did look at whether intervention, given that prices continue to change after they are set, was the right thing to do. We think that the CfD mechanism—the way that it is operated—is sound and that the best thing to do is to allow that to pass for the year. One reason for having the annual auction was precisely to allow us quickly to adjust, and, as I say, as soon as November, we will be setting the parameters for the next year.
As I said, the system for a long time has been that charges should be cost-reflective, and it is more expensive to service prepayment meters. We need to look hard to ensure that the increase in prices, which has come as energy prices have gone up, is commensurate with that before we look at the position of PPMs overall, which we will do as part of our overall reform of the treatment of vulnerable people. It is worth pointing out that the last time a survey was done, only 30% of those who are in fuel poverty had a prepayment meter, while 70% did not. Ensuring that we have a system that is fair to all is really important; that is why it is quite a complex job to make sure that we have a better system than the one we inherited from the Labour party.
I am very disappointed in the Minister’s reply to the question that my right hon. Friend the Member for Doncaster North (Edward Miliband) asked about a minimum level of supply. It is utter nonsense to hide behind the idea that it is complicated. I am sure that energy companies could find a way of doing it. When will the Minister make them?
It is worth pointing out that emergency credit should be supplied to customers and support should be put in place for those who get into arrears. It is a failure of the existing processes and duties that has been highlighted and has caused us to come before the House today. We must make sure that companies do that which they are obliged to do.