Oral Answers to Questions

Debate between Greg Clark and Alan Brown

Tuesday 11th June 2019 Commons Chamber

[Greg Clark]

My hon. Friend is right. In his time, he worked very hard to secure some of the investments that have been made. The automotive industry, along with many others, has always been clear that the strengths of the UK are at least in part drawn from our ability to export and import components very flexibly without delay. It is vital that that should continue.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Sales of electric cars in the UK in 2018 hovered at just 2.7%. In Norway, they rose to 31.2%, up from 20.8% in 2017. What lessons can the UK learn from a successful, driven, small independent country?

British Steel: EU Emissions Trading Compliance

Debate between Greg Clark and Alan Brown

Wednesday 1st May 2019 Commons Chamber

[Greg Clark]

What my right hon. Friend has said is not the case. Our legal obligations for 2018 would be there, and the company would have to comply. Had we left without a deal, the company would be in the position that it is in.

When it comes to the competitiveness of the UK steel sector, it is clear that the markets are international and, especially in the case of British Steel, very substantially across the continent of Europe. It has been very clear that we need to make sure that we continue to trade on terms at least as favourable as we do at the moment with the European Union, which is why both British Steel as a company and the steel sector have been absolutely clear, in terms, that we need to ratify an agreement such as has been proposed, and we need to do it very quickly.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I thank the Secretary of State for early sight of his statement. I also put on the record my welcome for the action taken by the Government to protect 4,200 jobs; it is really important that we protect the remaining heavy industry and manufacturing facilities in the UK. That said, questions still need to be answered. The Secretary of State confirms that this is a loan, on commercial terms, to avoid the risk of a fine of half a billion pounds to British Steel. To mitigate that risk of a fine, what was to prevent British Steel from just borrowing from the market, given that it is borrowing from the Government on commercial terms? Why did this go to the eleventh hour? It seems that what is almost a gamble has been taken with British Steel in the discussions with the Government. Will the right hon. Gentleman explain that? Were the risks identified when the Government were negotiating the extension to article 50?

In his statement, the Secretary of State talked about the need for Members to reflect on the impact of decisions or non-decisions in this place. That seems like another classic attempt to blame other Members for the Brexit mess we are in. It is not our fault—there has been a lack of leadership from the Government. For two years, the Prime Minister was telling us that no deal was much better than a bad deal, then all of sudden, near the end, it was “my deal or no way at all.” That withdrawal agreement suffered the biggest parliamentary defeat in history. Surely, the Government should have reflected on that, instead of coming back here time and again and blaming this House for the Brexit mess.

The situation is further amplified by the fact that the statement says that in the case of no deal the Government are working with the Commission about future participation in the EU ETS scheme. Surely, if the Government had made preparations for a no-deal Brexit those discussions would have already been concluded and a way forward identified.

How do we get transparency and discussions with Government and industry for companies such as British Steel and Nissan, for which back-door deals were done previously? Who misses out? How are these companies identified? Why, for example, was it left to the SNP Scottish Government, rather than the UK Government, to protect Scottish steel?

Finally, this situation proves the need for proper investment in carbon capture and storage. Peterhead has sufficient storage, and it will be ready to be utilised and operational by 2023-24. That would tie in with the Teesside cluster and help the steel industry. If the Government can find £100 million overnight for a loan, why do they not find further money for direct strategic investment, which will help heavy industry and the low carbon position?

[Greg Clark]

The hon. Gentleman started out welcoming the action we have taken and ended up, it seems, withdrawing that support. I will take the first half of his statement at face value and recognise that we have taken action to deal with an unusual and urgent problem, and have done so in a way that I think has displayed some agility. Advice has been taken, which will be fully disclosed to the Committees of the House, on the terms of the agreement and how it can be commercially benchmarked. Clearly, borrowing against allowances with a short period of time before the deadline—it is in the company’s gift and the company’s obligation to comply—requires moving quickly. The judgment we took was that we wanted to make sure we could secure against the possibility of the fine, and do so in a way that was commercially benchmarked. We have done that and it can be scrutinised. The deadline was last night. The fact that I have come immediately to this House to make a statement and publish the accounting officer’s advice I hope illustrates the transparency with which we have proceeded.

On the contingency that this arrangement has had and whether a deal has been approved, I put it as a matter of fact that the reason we had to make this transaction was that we have not, as a House of Commons, agreed a Brexit deal. We have not ratified a Brexit agreement. I said to my opposite number that I welcome the constructive discussions that are taking place. I hope that in the days and weeks ahead, the hon. Gentleman’s party might approach them in the same spirit and try to come to an agreement so that not just the steel industry but every industry in the country can have confidence in the terms of our relationship with Europe in the years to come.

Oral Answers to Questions

Debate between Greg Clark and Alan Brown

Tuesday 30th April 2019 Commons Chamber

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Will the Minister confirm that the Secretary of State for Scotland put in writing his objection to onshore wind finding a route to market in Scotland? Why will the Government not release that correspondence in the interests of transparency?

[Greg Clark]

I am not aware of the inquiry that the hon. Gentleman mentioned. I will follow it up with the Scottish Secretary.

Nuclear Update

Debate between Greg Clark and Alan Brown

Thursday 17th January 2019 Commons Chamber

[Greg Clark]

My right hon. Friend is right that small modular reactors have significant potential. The nuclear sector deal that we agreed with the sector and published last year contains a substantial commitment to small modular reactors, many of which would be deployable on the sites of existing and recently decommissioned nuclear reactors. However, even large new nuclear reactors can make a useful contribution. There is a challenge in every country, and this is by no means just a feature of Japanese investors. I have described clearly and, I hope, candidly the challenges that exist given the abundant availability and falling prices of alternatives. That is why we will take forward a serious assessment of whether a different financing model might make the economics more competitive. Again, the sector deal that we struck contains a programme to reduce the build costs of new nuclear, which would of course also help its financeability.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

This statement confirms that the UK Government’s nuclear programme is in tatters, yet the Secretary of State comes to the House, commends this statement, and says that he will carry on regardless, which makes absolutely no sense whatsoever. The National Audit Office confirmed that the Hinkley Point C strike rate of £92.50 per MWh was a bad deal. We know that offshore wind is currently £57.50 per MWh, but that is based on a 15-year concession, as opposed to a 35-year concession for the nuclear deal.

The Secretary of State has confirmed that the Government were so desperate for Wylfa that they would take something like a £6 billion stake and provide £9 billion of debt financing, yet he pretends that they were being prudent by limiting the 35-year contract to £75 per MWh. His use of the word “generous” in the statement could not be more appropriate. When Toshiba pulled out of Moorside with the loss of £100 million, its share price increased. At the time, the Secretary of State said, “Don’t worry. The circumstances are unique.” With this latest setback from Hitachi, the UK Government need a proper re-evaluation of their nuclear policy; they should not look just at alternative funding mechanisms.

Four existing nuclear power stations are due to close by 2024, taking more than 4 GW of capacity out of the grid, so what is the Government’s plan for replacing that capacity? New nuclear power stations are clearly not an option that could be completed by 2024. When will we know how much money is going to be thrown at Rolls-Royce for the small modular reactors that the Secretary of State mentioned? Why are the Government still blocking onshore wind in Scotland when it is clearly the cheapest mode of generation? When is the cut-off date for the ongoing discussions with Hitachi? When will the plug finally be pulled? When did the Government first find out about Hitachi pulling out? It was already being reported in the press, so how long before coming to the House to make this statement did the Secretary of State find out? When will nuclear power be properly benchmarked against onshore and offshore wind? When will the Government wake up and end their ideological obsession with nuclear?

[Greg Clark]

Given the hon. Gentleman’s suggestion that the strike price for Hinkley Point C was excessive, I would have thought he would welcome and approve of my statement, which sets a limit on what it is possible to provide to finance a private investment. He asks when the decision was made by Hitachi. My understanding is that it was made in Japan at 9 o’clock this morning, and I hope he would accept that I have come to the House as soon as possible.

The hon. Gentleman is critical of the nuclear industry, but I would have thought that he might want to pay tribute to Scotland’s proud tradition in the nuclear sector and to the people that have worked and contributed to our energy supply and still do. Chapelcross, Dounreay, Hunterston and Torness have for decades provided good jobs and employment both directly and in the supply chain across Scotland and continue to do so today. My determination to continue our tradition of being a nuclear nation offers continuing opportunities to Scotland, and I would have thought that he would welcome that.

Far from being at the expense of renewable energy, our energy policies have supported Scotland to become a world leader in securing energy from renewable sources. In fact, we heard earlier this month from WWF Scotland that wind output in Scotland has broken through the barrier of 100% of demand for the first time. That comes as a result of the policies that this Government have put in place to bring down the costs of wind, which is highly competitive. As a result, that is causing some competitive challenges for other technologies, including nuclear, but I would have thought that the hon. Gentleman would welcome the progress that has been made on renewables.

Nuclear Power: Toshiba

Debate between Greg Clark and Alan Brown

Monday 12th November 2018 Commons Chamber

[Greg Clark]

My officials and I, and my ministerial team, talk regularly to countries and companies across the world. When I was in Japan last week, I had discussions with Hitachi, which is actively engaged in negotiations on the Wylfa project. Now that Toshiba has taken its decision, for reasons that everyone understands, and I make no criticism of it—it has been very transparent in the reasons for this—that site is now available. Other developers will know that and be able to engage.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Despite losing £100 million on this venture, Toshiba’s share price went up when it pulled out, yet the Secretary of State stands there and tells us that nobody is more committed to nuclear than he is. It is quite obvious that renewables are the future, yet this Government are blocking onshore wind development in Scotland. They are looking at pulling the export tariff, and as my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) said, they have already pulled CCS funding. When will they provide proper investment in renewables and end this nuclear obsession?

[Greg Clark]

The first part of the hon. Gentleman’s question makes my point for me. The reason that Toshiba took the decision that it did was to restore robustness to the financing of the company following the chapter 11 bankruptcy proceedings that Westinghouse went into. It has grasped that nettle. On the deployment of renewables, he will know that when it comes, for example, to wind in the remote islands of Scotland, I made sure that we were able to take that opportunity, and as a result, investment is going into those communities. [Interruption.] He says that it is small, but the performance of offshore wind is creating jobs all around Scotland and the United Kingdom and is a reflection of the commitment that this Government have given to it.

Rolls-Royce Redundancies

Debate between Greg Clark and Alan Brown

Thursday 14th June 2018 Commons Chamber

[Greg Clark]

My hon. Friend raises an important point. The company has a firm commitment to apprenticeships, and I will emphasise the importance of continuity in the training offered to apprentices.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Any job losses are clearly a concern, so the potential loss of 4,600 jobs is a huge worry. I have constituents who work at the Inchinnan Rolls-Royce plant, so will the Secretary of State advise us of whether the restructuring will have any impact on jobs in Scotland?

While people often talk in general terms about having too many chiefs and not enough Indians, does the Secretary of State share my worry that it seems counterintuitive that Rolls-Royce says it will employ more engineers, continue to increase investment in R&D and expand massively while it is restructuring and downsizing the management? That does not sound quite right to me. Will the Secretary of State confirm that the Government will work urgently with Rolls-Royce, the unions and staff affected by the job losses to ensure that they can find alternative employment, if required, and that they get suitable retraining to find other jobs?

Will the Secretary of State advise the House on whether Brexit will have an impact on Rolls-Royce, in terms of the customs union? The company has already said that it is thinking about relocating the jet engine design approval process to Germany from the UK, so could that have an impact on jobs? What impact will the rules of origin have on the company’s manufacturing? What discussions has the Government had about the potential impact on Rolls-Royce’s aspirations for small modular nuclear reactors?

[Greg Clark]

I am grateful to the hon. Gentleman for his questions. It is too early to know the distribution of the proposed redundancies across the United Kingdom. As I said to the right hon. Member for Derby South, the management headquarters is obviously in Derby, so the expectation is that most of the UK job losses will happen there, but the company and I will keep Members up to date as the consultation takes place.

As for the combination of an intention to expand the production of aerospace engines and a growing order book with the need for fewer managers, that is not uncommon across competitive industries, and most industries are becoming simpler in their internal processes. That is not to say that the skills, commitment and loyalty of those who are affected are not extremely high and that they will not be in strong demand elsewhere, and it is important that we support that. We will provide all the help and assistance we can if retraining is needed.

The hon. Gentleman asks about Brexit, and Rolls-Royce has been clear that this is about making the company more efficient. It has no relation to Brexit, although it is fair to say that the continued ability to operate a just-in-time production system once we leave the European Union will, of course, be very important to the company.

Nuclear Power

Debate between Greg Clark and Alan Brown

Monday 4th June 2018 Commons Chamber

[Greg Clark]

My right hon. Friend takes a great interest in this issue. When I made my statement on Hinkley he advised that we should consider using the Government’s balance sheet in that way, and we will consider that as part of the discussions. As for the contracts that are entered into, one of the requirements of the state aid regime is that any contracts have to be on a non-discriminatory basis, which will guide the letting of any such contract.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I thank the Secretary of State for early sight of his statement but, to be truthful, it did not tell us any more than we have been able to glean from the media today. I find the Government’s nuclear obsession mind-boggling. When Hinkley was first proposed all those years ago it was on the basis that it had to be commissioned by December 2017 or there would be a risk of the lights going out. All these years later, it will not be generating at full capacity until something like 2030, which seems to undermine the need for new nuclear.

Hinkley is shocking value for money, with a 35-year megawatt-hour strike price of £92.50, whereas recent offshore auctions have returned bids of £57.50 per megawatt-hour over a 15-year period. That is the real cost benchmark that the Government should use. Considering that the National Audit Office concluded that it would be impossible to know for decades whether building Hinkley represented good value for money for UK taxpayers, it is utterly incredible that we are diving headlong into another costly venture. The Secretary of State has said that he wants to do a sector deal, but we do not know what value for money that will provide. It has been reported that the strike price for the new power station will be something like £15 per megawatt-hour cheaper than at Hinkley, but how much of that cost reduction is due to the billions of pounds of direct investment from the taxpayer?

Given the company’s questionable track record on safety, will the Government confirm that Hitachi will be financially liable in the event of any accidents? Given the unprecedented level of taxpayer investment, how will the Government demonstrate that they have met the Public Accounts Committee’s demand for a full value for money assessment before they finally sign off the deal, and how will Parliament be able to scrutinise that? When will we know the level of the financial commitments?

If the Secretary of State is so willing to commit taxpayers’ money directly for stakes in projects, will he consider paying for national grid upgrades to further facilitate the deployment of renewables, instead of tagging such upgrades on to the costs of renewable projects? As bad as the Government’s obsession with nuclear is, this is also about their attacks on renewable investment. When will they have a coherent energy policy and proper investment in future technologies rather than a technology that has had its day?

[Greg Clark]

I thank the hon. Gentleman for his comments. On statements to the House, I think all Members would recognise that I have come to the House at the earliest possible opportunity. It was today that the decision was taken to enter into negotiations. Members will know that I always keep the House updated and always will.

It is a bit rich of the hon. Gentleman to complain that new nuclear power will come online later in the 2020s, given that he and his colleagues have resisted the replacement of our nuclear fleet, which we have known needs to be replaced for all this time. It is an act of responsibility on the part of this Government that we are planning ahead for the replacement of the 20% of our electricity that is currently generated from nuclear power. It is important for consumers in Scotland and in the rest of the United Kingdom that we do that.

The hon. Gentleman criticised what he regarded as the value for money of the Hinkley project. He will have heard me say at the time that that represents the highest price we will pay for new nuclear. I expect future new nuclear power stations to come in at a lower price. I have made it explicit today that that is a requirement of the negotiation. However, this is the beginning of a formal period of negotiation.

The recommendations of the Public Accounts Committee and the National Audit Office have shaped the approach we are taking. The value for money test has to be met, and at all the key milestones I will ensure that Parliament has the opportunity to scrutinise the progress of the negotiations.

Industrial Strategy

Debate between Greg Clark and Alan Brown

Wednesday 18th April 2018 Commons Chamber

[Greg Clark]

We are getting better at it. Most colleagues will have experience of their local universities and others, and most research universities have active programmes to spin out discoveries and reap the benefits. Again, through the industrial strategy challenge fund, funding is available on a match basis to universities to pursue that implementation of good ideas. My hon. Friend is absolutely right.

Let us take the future of mobility. The hon. Member for Coventry South (Mr Cunningham) and I have had many conversations about this country’s reputation not only for the efficient manufacture of vehicles—that is a proud record—but for innovation, whether in the west midlands or the world-beating cluster of Formula 1 businesses around Oxfordshire and Northamptonshire. The world comes to the UK for the next generation of technologies. Forty-year veterans of the automotive industry say that this is the most exciting time in their career, when not only the powertrain but the way in which vehicles navigate is undergoing a revolution. Around the world, there is increasing demand for that set of technologies and we have a strong capability in them. Again, setting a grand challenge is crucial.

We have set the Faraday challenge to be a world leader in the development and application of new battery technology. It is already attracting great interest around the world, and the hon. Member for Coventry South will know that the national battery manufacturing development facility will be located in Warwickshire at the heart of our cluster there.

On the ageing society, whether in Glasgow and Edinburgh or Cambridge, we have some of the best researchers in the world looking at medical breakthroughs that will be in increasing demand around the world. I make it clear that now and long into the future, we will invest in the facilities and the people to make us the place to come to research new innovations. As Members from Scotland will know, the Glasgow city deal had a big medical component to build on our success there.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Clearly, medical innovation and continued investment are welcome, but when dealing with an ageing population and workforce, we need not just innovation but immigration. We need immigration in the healthcare sector to support an ageing population. Does the Secretary of State agree that the Government should review their immigration policy, especially tier 2 visas, which are putting a block on experienced healthcare workers coming to the UK?

[Greg Clark]

As the hon. Gentleman knows—the industrial strategy is clear about it—we benefit from the contribution of workers, scientists and engineers from all over the world. There is no successful future for an economy that does not engage with the world. That means that we should be open to talent from around the world. We need to make sure, as every responsible nation does, that we have an orderly system for managing immigration from around the world. That is what we are achieving and what we will continue to achieve. It is very clear, on every page of the strategy, that this is a vision for an international Britain, rather than one that is moving towards a kind of national self-sufficiency.

Oral Answers to Questions

Debate between Greg Clark and Alan Brown

Tuesday 12th December 2017 Commons Chamber

[Greg Clark]

I agree with my hon. Friend. That is one reason why we have established a series of test beds between London and the west midlands, including the motorsport cluster. They are already attracting huge interest from around the world, reinforcing our reputation in the field.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

T5. Onshore wind has been Scotland’s success story, with the Scottish Government still on track to meet 100% of electricity generation coming from renewables. The UK Government are the possible blocker. As we approach the point of zero-subsidy onshore developments, will the Government find a way to allow Scottish onshore developments to bid in the next CfD auction?

[Greg Clark]

The renewables strategy that we have set out has been remarkably successful in bringing down the price of onshore wind and creating jobs, including in Scotland. As the hon. Gentleman knows, I have discussions with the Scottish Government, which have resulted in the remote islands policy that we have adopted. I will continue to have those discussions with his colleagues.

Budget Resolutions

Debate between Greg Clark and Alan Brown

1st reading: House of Commons
Tuesday 28th November 2017 Commons Chamber

[Greg Clark]

Contracts for difference have brought down the price of renewable energy substantially. We have commissioned a review from Professor Dieter Helm—I know that the right hon. Gentleman knows him well—which has reported, and we will make our response to it. It would be wrong to pre-empt our consideration of that, but I hope that the right hon. Gentleman and others will give their thoughts on the Helm review. We have launched a consultation on that, as he knows.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I note the Secretary of State’s comments about the Dieter Helm review, but will the Government commit to moving away from their nuclear obsession, given—as he acknowledged—CfD has brought down the cost of renewable energy?

[Greg Clark]

It is my view that we need to have a broad base of power supplies for our security in the future. We are now the world leader in offshore wind, which demonstrates that one comes not at the expense of the other, and that is the right and prudent way to proceed.

We have many world-leading industries, from financial services to advanced manufacturing, from the life sciences to the creative industries. In many cases, they are at the forefront of the technological revolution that is sweeping the world.

Industrial Strategy

Debate between Greg Clark and Alan Brown

Monday 27th November 2017 Commons Chamber

[Greg Clark]

I would be delighted to visit my hon. Friend’s constituency. As she points out, not just in this country but all around the world economies are becoming cleaner and greener, and if we can establish leadership in the research and development and, critically, the translation of those discoveries into industrial products and processes, we can benefit substantially. We are already doing that in the offshore wind industry and others. It is a world full of opportunities for more of that, and of course the south-west has a particular role to play in that.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Secretary of State’s document rightly stresses the importance of transport infrastructure and digital infrastructure, yet when it comes to Scotland, his Government have just imposed a £600 million cut to the future rail investment programme and to date we have been underfunded in terms of superfast broadband. Will he confirm that Scotland’s funding from the £740 million digital infrastructure programme and the £400 million fund for electric vehicle charging will be allocated on need, which covers Scotland’s landmass and geography, and will not be based on arbitrary population or other measures?

[Greg Clark]

Of course we recognise that, and I have made the point throughout our discussions this afternoon that every place requires a consideration of its particular challenges. The geography of Scotland means that different decisions will be appropriate there compared with more urban parts of England, for example. We completely recognise that, which is why we are setting out a localist approach to ensure that we make the right investments for the right places.

Smart Meters Bill

Debate between Greg Clark and Alan Brown

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Tuesday 24th October 2017 Commons Chamber

[Greg Clark]

My hon. Friend raises an important point. I would be very pleased to take up the particular concerns of her college. The energy companies do have an obligation to roll out smart meters. If they subcontract the work, they do not escape their responsibilities. Again, the purpose of the Bill is to extend the current regulatory powers through to the end of the roll-out so that we can ensure that the higher standards apply.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I thank the Secretary of State for giving way one more time. On projected savings, consumer benefits are estimated in the Government’s cost-benefit analysis to be £5.24 billion. How much of that is based on consumers having to switch? In the same cost-benefit analysis, supplier benefits are estimated to be £8.25 billion. How will those supplier benefits be passed onto the consumer?

[Greg Clark]

The hon. Gentleman raises an important point. There are multiple benefits. About a third of the savings come from the possible reductions in the use of energy. Just over 40% comes from the supplier’s cost savings, which is a result of not having to read meters—that gets done automatically. We expect those savings to be passed onto consumers as savings in their bill. In the 21st century, it seems absurd that we should have to rely on someone physically coming to inspect, literally, a spinning metal wheel. That is decades out of date. To have such work done automatically provides important savings. Therefore, there are benefits to consumers and to the whole economy.

[Greg Clark]

I can certainly confirm that. There is no obligation on the customer whatsoever.

The roll-out is well under way. Some 7.7 million smart meters were installed by June 2017. The current rate of installation is around 350,000 a month, but that is increasing as energy suppliers continue to ramp up their delivery. As the right hon. Member for Kingston and Surbiton (Sir Edward Davey) mentioned, it is right that we should move on to the second generation of smart meters, the so-called SMETS 2 meters. One advantage of doing so is that the next generation of meters are between 20% and 30% less costly than SMETS 1 meters, thereby providing another good reason to upgrade.

In recognition of the importance of this upgrade and the value that it will bring to consumers, we are committed to seeing all homes and small businesses being offered a smart meter—but they are not compelled to have one—by the end of 2020.

[Alan Brown]

To help achieve that 2020 target, the install rate needs to go up from 350,000 a month to 1.25 million a month. How will that happen?

[Greg Clark]

There is a significant increase of the scale that the hon. Gentleman describes. Part of the reason for ensuring that we have these powers is so that the energy companies do not regard this as optional, and have to meet their obligations.

The Government are overseeing the process and that has enabled us to take steps to protect consumers. We have put in place a licensed central data and communications provider, the Data Communications Company. The information will not be held exclusively by the supplier. It is therefore available, with the consumer’s consent, to competitors. Through the DCC, energy companies and other authorised parties are able to collect energy data remotely and securely.

Let me take the House through the specifics of the Bill. Clause 1 extends by five years the Government’s powers to direct the roll-out of smart meters. Since the first legislation was introduced, the powers have lasted for five years at a time, which seems to be the right approach, rather than having powers in perpetuity. Therefore, it is consistent with our practice to come back to the House in order to renew those powers for five years.

International Investment

Debate between Greg Clark and Alan Brown

Tuesday 17th October 2017 Commons Chamber

[Greg Clark]

We are saying loudly and clearly that we depend on free trade, and that free trade depends on our having clarity in the rules so that investors in our companies know what scrutiny they will be subject to. That is something that business has wanted, so it is good that we are going to be clear about that.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

These proposals are welcome as far as they go, but if, thinking about the bigger picture, we are looking at transparency in safeguards relating to foreign investment, we will need to stamp out the laundromat money-laundering schemes that channel billions of pounds through the UK. What steps are the Government taking to eliminate the vehicles for that practice, including the Scottish limited partnerships?

[Greg Clark]

My hon. Friends in the Treasury are, as the House knows, active and vigorous in pursuing measures against money laundering, and that approach is an important part of this regime’s reputation for applying high standards.

Nuclear Safeguards Bill

Debate between Greg Clark and Alan Brown

2nd reading: House of Commons
Monday 16th October 2017 Commons Chamber

[Greg Clark]

The fact of this legislation should send a signal to the world that we are absolutely determined to be forward facing and to make sure that we have a regime in place that can continue the high standards that we enjoy while pursuing, in negotiation with Euratom and with other countries, the same continuity of arrangements that we have enjoyed. I see absolutely no obstacle to that.

Clause 2 will create a limited power, enabling regulations to amend the Nuclear Safeguards and Electricity (Finance) Act 1978; the Nuclear Safeguards Act 2000; and the Nuclear Safeguards (Notification) Regulations 2004. This narrow power will mean that cross references in that legislation to existing agreements with the IAEA can be updated once new international agreements have been reached.

Let me summarise the four key points. We are totally committed to the current and future prosperity of the nuclear industry. It is an important part of our energy future, our security as a nation and our commitment to clean energy. We are committed to meeting all our international obligations and to retaining our world-leading status on nuclear research and development. We need the powers in the Bill to give the existing independent nuclear regulator—the ONR—a new role to regulate nuclear safeguards, alongside its existing role regulating the UK’s nuclear safety and security.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I thank the Secretary of State for giving way one more time. I am not sure whether he is coming to an end, but he has not yet responded to the intervention on radioisotopes of the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith). Does that mean that the Nuclear Industry Association, Dame Sue Ion, the honorary president of the National Skills Academy for Nuclear, and the Royal College of Radiologists are right to express concerns about the future possible supply of radioisotopes, especially given that, in the past, there have been global shortages? The Euratom supply chain was prominent in managing those shortages of supplies.

[Greg Clark]

Radioisotopes are not in scope of the measures before us today; this is about safeguards; and I replied perfectly adequately to my right hon. Friend.

The Bill sits alongside other work streams around our future relationship with Euratom, with the International Atomic Energy Agency and with third countries, and as such has been drafted to cater for a variety of possible outcomes to these talks. I want to reiterate our commitment to maximum continuity of these arrangements. The reason we are leaving Euratom is the decision to leave the European Union. The two treaties are uniquely legally joined. We continue to support Euratom and want to see a continuity of co-operation and standards and a close future partnership with it.

We do not know what the final arrangements will be, so we are doing what any responsible Government would do by putting in place now a civil nuclear safeguards regime for the United Kingdom through this Bill so that we will be fully prepared whatever the outcome of negotiations. I commend this Bill to the House.

Retail Energy

Debate between Greg Clark and Alan Brown

Thursday 12th October 2017 Commons Chamber

[Greg Clark]

I pay tribute to my hon. Friend’s personal energy in this matter. He has been assiduous and tenacious in pursuing consumers’ welfare. The reason for publishing the Bill for pre-legislative scrutiny was to build the consensus that I know he will participate in. Our proposal is for an absolute cap—to ensure a clear limit on what can be charged—but I know he has thoughtful views that he will want to convey during the scrutiny process.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I thank the Secretary of State for early sight of the statement and pay tribute to the hon. Member for Weston-super-Mare (John Penrose), the right hon. Member for Don Valley (Caroline Flint) and my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) for the cross-party way in which they have brought this to the House. I am sure that that is what has forced Government action.

With 18 million customers on default tariffs, today’s announcement is a welcome step forward. I hope that those customers get the benefit of the savings that have been talked about. We need to make sure, however, that there is not too much equalisation or coalescing of pricing around the cap and that customer service is not affected as a consequence of companies trying to find other ways to save money. As the Secretary of State rightly said, standard variable tariffs themselves are a problem. How will the Government guarantee that people are moved off them once and for all?

The end supplier is only a small component of energy bills. What steps will the Government take to review the profits that the distant network operators make? They make up a huge cost in energy bills. Government energy policy also impacts on energy bills. I refer the Secretary of State to the Hinkley project and the fact that future auctions have been announced but onshore wind cannot bid. To keep energy prices down, clearly we must have the most cost-effective energy generation policies in place, so it must be allowed to bid in the electricity generation market. In Scotland, the First Minister has announced that a public sector supplier will be set up and allowed to bid in the markets. Does the Secretary of State welcome that and is it something that the UK Government will follow? Energy efficiency is also a key component. The Scottish Government are committed to a warm homes Bill. Will the UK Government do likewise?

[Greg Clark]

I hope that the hon. Gentleman will be able to stay for the statement by my hon. Friend the Minister for Climate Change and Industry.

[Alan Brown]

indicated assent.

[Greg Clark]

He says that he will. I hope he will give a warm welcome to the proposals in the clean growth strategy, which will include something that many of his colleagues in Scotland, from all parties, have pressed for, which is the remote islands being entitled to bid in renewables auctions. I hope he will welcome that and, indeed, our leadership in renewables, not only in deployment—we are the world’s leader in offshore wind—but in the jobs being created around the United Kingdom in the supply chain.

When it comes to the proposals in the retail market that we have set out, I can confirm that it is absolutely the Government’s intention and requirement that competition should be preserved—indeed, extended—in this market. The Competition and Markets Authority said there was not enough of it at the moment. That is why part of its panel said that interim measures were needed while that competition comes in. That is important, and the requirement of the draft Bill is that Ofgem should take steps to ensure choice and vigorous competition as part of that.

Energy Price Cap

Debate between Greg Clark and Alan Brown

Monday 3rd July 2017 Commons Chamber

[Greg Clark]

My hon. Friend has done great work with many Members from various parties to establish that there is an appetite and need to tackle the problem exposed by the CMA, which has been going on for too long. In response to my letter, Ofgem has said today that it will work with consumer groups and come forward with a range of responses. I will look at them closely, as I know my hon. Friend will, and I am sure that the Business, Energy and Industrial Strategy Committee will, too. I have said clearly that the test of the adequacy of the responses is that they address the clear detriment that the authorities have identified.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The UK Government really lack strategy right across the energy sector. The £20 billion Hinkley Point C project will add to future household bills, mention of energy was sadly lacking in the Green Paper that was published before the election, and now there is this lack of a joined-up approach to an energy cap. Will the Secretary of State confirm the Government’s plans to protect the 14 million people who will not be covered by the current proposals? Of the £1.4 billion that the CMA has said is going to the big companies instead of staying in consumers’ pockets, how much will be returned to consumers under the measures that are being introduced? He said that he might consider legislation, but what is his timescale for reviewing what is happening and deciding whether there is a need to act? Will he ask Ofgem to determine what the true level of a cap should be?

Opel/Vauxhall: Sale to PSA Group

Debate between Greg Clark and Alan Brown

Monday 6th March 2017 Commons Chamber

[Greg Clark]

I agree with my right hon. Friend. We are talking about both the workforce directly employed by Vauxhall and the substantial employment in the supply chain. Both are very important, so this has been part of our discussions. I think that there is every opportunity—I will be vigorous in pursuing it—to expand the supply chain that supplies not only the Vauxhall plants, but other plants in this country. In the context of our industrial strategy, that is one of the avenues that we intend to expand on during the months ahead.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I congratulate the hon. Member for Salford and Eccles (Rebecca Long Bailey) on securing this urgent question. I welcome the Secretary of State’s initial comments regarding guarantees on pensions and short-term jobs, which are welcome. Even then, we have to appreciate that workers are clearly experiencing some uncertainty.

I know from manufacturing plants in my constituency that being efficient does not necessarily protect them from wider politics. It is quite clear from media vox pops that some of the workers are concerned about the future impact of Brexit, given the wider European plants that they are combining with. To repeat the earlier question, what guarantees has the Secretary of State got for the wider supply chain for components, given that we are now talking about a much bigger multinational company? Has he had any discussions about the effect that the UK being outwith the customs union would have on costs and component supply for UK plants? What discussions has he had with the Chancellor about the provision of R and D money out of the £23 billion so-called investment fund, which is clearly needed to do what he talked about—to support these plants, and continue the development of electric vehicles and battery storage?

Industrial Strategy Consultation

Debate between Greg Clark and Alan Brown

Monday 23rd January 2017 Commons Chamber

[Greg Clark]

It is evident that this is a whole-Government Green Paper; not just my Department but all Departments are joined in it, and the Health Secretary is an enthusiastic participant and will want to be part of those conversations —advised, I am sure, by the expertise that my hon. Friend brings to the subject.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

When the Secretary of State met the four Ayrshire MPs to discuss the Ayrshire growth deal, we had a very positive and encouraging discussion, and we welcomed that. He suggested that the growth deal aligned with the Green Paper, and having now seen the 10 action points, I agree. Will he confirm that he still believes that the Ayrshire growth deal aligns with the industrial strategy? If so, will he also commit to working with his Treasury colleagues to secure some money for it?

[Greg Clark]

I strongly believe in the city deals and growth deals, and I thought the presentation from the hon. Gentleman and his colleagues showed a very good ambition, bringing together the industrial strengths and opportunities of their area, so I wish it every success. These deals need to be negotiated, but he will know that in Scotland we have a good record of making progress on city and growth deals.

Oral Answers to Questions

Debate between Greg Clark and Alan Brown

Monday 14th December 2015 Commons Chamber

[Greg Clark]

I can assure my right hon. Friend that I have no intention of reintroducing Avon by the front door, back door or side door.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Further to my earlier question, if the new one-for-one replacement for right to buy was funded directly by the UK Government instead of other means, what would the Barnett consequentials be for Scotland?