Oral Answers to Questions

Debate between Grant Shapps and Alistair Carmichael

Monday 8th January 2024 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

6. What recent assessment he has made of the effectiveness of the Royal Navy in protecting merchant shipping routes in conflict zones.

[The Secretary of State for Defence (Grant Shapps)]

Happy new year, Mr Speaker.

The Royal Navy and the Government are committed to the protection of maritime trade, ensuring that both people and shipping remain safe to travel through international waters. That work is driven by the latest intelligence and analysis of that picture. As I said on 19 December in my written statement, HMS Diamond has joined our partners and allies as part of Operation Prosperity Guardian to protect freedom of navigation and merchant shipping in the Red sea and the gulf of Aden.

--- Later in debate ---

[Grant Shapps]

As my hon. Friend will know, the Houthis have been causing havoc in that part of the Red sea, in particular attacking ships. There was a 500% increase in attacks on maritime shipping from November to December, showing that there is no direct connection to the wider conflict in the region but a decision by Houthis to attack free trade. That is unacceptable. We are working with our partners, through Operation Prosperity Guardian and other measures, to tackle it.

[Mr Carmichael]

The Secretary of State is absolutely right to point the finger at the Houthis, but we should not ignore the role of Iran in this enterprise. What are he and the Government doing with our international partners to ensure that the merchant marine have the confidence to keep using the Red sea, which is critical to the smooth operating of world trade?

[Grant Shapps]

We call on the Iranian-backed Houthis to immediately cease these attacks. The Houthis will bear the responsibility and, I have to say, the consequences should they ignore those warnings. The right hon. Gentleman asks what more we have been doing; I issued a statement along with 10 other countries during the break, in which we made clear that consequences will follow if they do not stop this action. To be clear, the UK will not tolerate the Houthis closing international waterways.

Oral Answers to Questions

Debate between Grant Shapps and Alistair Carmichael

Tuesday 23rd May 2023 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

9. What recent assessment he has made of the potential role of North sea oil and gas infrastructure in developing carbon capture and underground storage capacity.

[The Secretary of State for Energy Security and Net Zero (Grant Shapps)]

North Sea oil and gas infrastructure can play a crucial role in lowering costs and speeding up deployment if it is repurposed for carbon capture and storage, therefore improving our energy security.

[Mr Carmichael]

The Greensand project in Denmark has proven the concept of carbon capture, usage and storage, but we know that the supply chain in this country is fragile. Indeed, if others go ahead and develop CCUS, that is where they will go. Companies such as EnQuest in Shetland, which operates the Sullom Voe oil terminal, are keen to do exactly what the Secretary of State is talking about. Would he or the Energy Minister agree to meet me and the operators of EnQuest to hear what it needs to get that exciting project across the line for a final investment decision?

[Grant Shapps]

The right hon. Gentleman is absolutely right about this, but the UK is playing a leading role with its recent £20 billion investment in carbon capture, usage and storage. We have sufficient space to store potentially 78 billion tonnes of carbon under the North sea—equivalent, I am told, to the space occupied by over 15.5 billion well-fed elephants. I would be more than happy to meet him to discuss the potential of the field he mentioned.

Energy Bill [Lords]

Debate between Grant Shapps and Alistair Carmichael

2nd reading
Tuesday 9th May 2023 Commons Chamber

[Grant Shapps]

I will make a little progress before I give way again.

Turning to the contents of the Bill, I think it is helpful to consider them in three themes. The first is about liberating private investment in clean technologies, helping reduce our exposure to the very volatile gas prices in the long term. For example, the Bill will help us to exploit our absolutely extraordinary potential for carbon capture, usage and storage, as well as low-carbon hydrogen, potentially for industrial use. This country has a vast storage reservoir beneath the North sea, much of it once filled with oil and gas. There could be enough capacity to store up to 78 billion tonnes of carbon. I appreciate that people have difficulty imagining what that would look like—I know I did. The answer is that it is the equivalent weight of 15 billion elephants, if people are better able to imagine that, or to put it another way, an atmospheric pressure roughly the space of 200 million St Paul’s cathedrals. In short, our geology provides us with a lot of space under the North sea, and if we are able to fill the UK’s theoretical potential carbon dioxide storage capacity with CO₂, the avoided costs at today’s emission trading prices could be in the region of £5 trillion. We have the potential for a geological gold mine under the sea, and the Bill helps us to access it.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

CCUS is very important to me and to my constituency. EnQuest, the operator at the Sullom Voe terminal, sees the next generation of the use of that terminal involving CCUS, but does that not reinforce the point made by the right hon. Member for Reading West (Sir Alok Sharma), in relation to Ofgem’s remit? Does it not sit very nicely with the recommendations that the Secretary of State has received from Tim Pick, his offshore wind champion, who has also made the point that Ofgem’s mandate must be reshaped to bring it into the appropriate framework for net zero challenges? That remit has not been touched since 2010.

[Grant Shapps]

The reality is that the Government have committed to those targets, as has the whole House, because the law has already been passed. We have the carbon budgets, one to six; I think we exceeded one, two, three and four, but we are on track for five, and a few weeks ago, I set out in “Powering Up Britain” how we plan to meet carbon budget six as well. The conversation about whether the regulator has an individual duty is an interesting one, but the reality is that in truth, we are all headed towards that cleaner energy system.

Post Office: GLO Compensation Scheme

Debate between Grant Shapps and Alistair Carmichael

Wednesday 7th December 2022 Commons Chamber

[Grant Shapps]

To my hon. Friend’s constituent Maria, and to everybody else involved, the answer is yes.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

We are not quite at the end of the road, but there is a sense today that perhaps the end of the road is in sight. I echo colleagues in taking a great deal of comfort from the participation of the right hon. Member for North Durham (Mr Jones) and Lord Arbuthnot in future proceedings.

One of the lessons we have to learn is that it is all too easy for people in Government and people in public bodies to use taxpayers’ money to defend situations where they have made mistakes. This is, by far and away, the most egregious example, but it is not the only example. As well as being involved in this issue for some time, I have been helping constituents who were defrauded by Midas Financial Solutions. They had to take the Competition and Markets Authority to court, and they eventually received compensation, but those who took the case are still out of pocket to the tune of £2 million. That is exactly the same situation in which the sub-postmasters find themselves. Why should they be treated differently?

[Grant Shapps]

Again, it is a dangerous and sometimes potent mixture to have the backing of essentially endless taxpayers’ money in a battle of David and Goliath. As the right hon. Gentleman knows, Ministers always have to be careful to weigh the advice to make sure that, when we wield the power of the state, we do so in the interest of society as a whole and not, as has clearly happened in this case, in a manner detrimental to individual citizens—in this case postmasters and sub-postmasters. His point is well made.

P&O Ferries

Debate between Grant Shapps and Alistair Carmichael

Wednesday 30th March 2022 Commons Chamber

[Grant Shapps]

My hon. Friend is absolutely right about the reputation of P&O Ferries being ripped to shreds in 14 days in a way that I cannot think of with any company in corporate history. It is important that its owners understand that they are welcome to invest in this country and create employment, but that we take employment law seriously. They need to understand that and deal with this P&O situation, otherwise that will not be smooth.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I very much welcome the Secretary of State’s statement today. It is one of the most substantial and significant statements I have heard in almost 21 years as a Member who has taken a close interest in matters of the merchant marine. I hope that this is the start of a very different practice from what we have seen in recent decades. One of the problems we have had over the years is that when successive Governments were introducing the tonnage tax and refining it, there was a link to training, but not enough of a link to post-training employment. That is the sort of thing that has to change. Protection has to be given not just to officers, but to ratings. When the Secretary of State is constructing the next round of the tonnage tax, will he listen first to the unions representing the ratings and the officers, and not just the shipping companies?

[Grant Shapps]

Needless to say, I am very grateful for the right hon. Gentleman’s comments on this statement. It is a serious attempt to sort out something that internationally has not been satisfactory for a very long time, because of the global nature of shipping. He is absolutely right to zero in on the tonnage tax. As he knows, there will be an opening for the tonnage tax—from 4 April, I think—for the first time in many years. If we can get this right, we can use the tonnage tax not only to improve the industry, but to drive the right kind of behaviour. With more ships flagged under the British flag, we can lead—as we do as a maritime nation—with the IMO here, and use the tonnage tax to pull those ships along.

P&O Ferries and Employment Rights

Debate between Grant Shapps and Alistair Carmichael

Monday 21st March 2022 Commons Chamber

[Grant Shapps]

Again, I wish to make a little progress, so let me turn to the critical issue of fire and rehire. It is only a rehire to a very limited degree here, from what I can see—it is more like just fire. I have already asked ACAS, or, rather, my right hon. Friend the Business Secretary has, to produce additional information and guidance to employees, and—[Interruption.] And wait for it: if we need to go further, this is something we will consider doing. I have spoken to the Secretary of State for Work and Pensions to ensure that those who have lost their jobs are supported with relevant help and a rapid response taskforce. Since Thursday, I have received many messages from blue-chip employers anxious to snap up the newly redundant workforce, and I have arranged to put them in touch. I pay tribute to those who have come forward, and with unemployment at 3.9% I very much hope that those excellent individuals will be snapped up very quickly indeed.

[Mr Carmichael]

I hope that we are going to hear soon about the safety implications of this issue. P&O Ferries has obligations under the international safety management code, which requires each vessel to have a safety management system. That is then audited by the Maritime and Coastguard Agency, which produces a document of compliance. It is difficult to see how, with 100% crew changes in the way we have heard, P&O can possibly now be in compliance with those obligations. Will the Secretary of State look at the possibility of suspending the documents of compliance until he is satisfied that P&O is in compliance with them?

[Grant Shapps]

I will, but I will come back to the right hon. Gentleman’s precise points in a moment in my speech. Seafarers’ rights and wellbeing are a matter I take extremely seriously. Indeed, the House may recall that during the pandemic I ordered the MCA to board vessels forcibly to ensure that conditions were appropriate where I believed that there may have been maritime workers who were being exploited, as indeed they were being. So I take this matter incredibly seriously. Maritime employees have not in this country, and indeed throughout much of the world, received some of the same benefits and protections that exist otherwise for workers. That simply is not good enough and it is a practice we have been seeking to end.

Oral Answers to Questions

Debate between Grant Shapps and Alistair Carmichael

Thursday 12th March 2020 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

16. What his policy is on the UK’s membership of the European Aviation Safety Agency after the end of the transition period.

[The Secretary of State for Transport (Grant Shapps)]

The UK will leave EASA at the end of the transition period.

[Mr Carmichael]

The Secretary of State will be aware that that news has not been well received by the aviation industry. The ADS, which represents over 1,100 UK companies, has noted that the UK and the EU could have an arrangement, in the same way that Switzerland does, giving us full membership of EASA without even having any jurisdiction of the European Court of Justice. Why would that be a problem for the Government?

[Grant Shapps]

Because the EU said in its statement of negotiating parameters on 15 January that UK participation in EASA is not viable from its perspective. It would not be viable from a UK perspective either, because we would be subject to ECJ rulings in one form or another, and certainly, without any doubt, we would have to accept the European Commission creating the laws under which we would exist— and this country voted for Brexit. However, we will have a bilateral aviation safety agreement—a so-called BASA. We will also have a comprehensive air transport agreement—a so-called CATA—to enable smooth transport to continue.