Nissan in Sunderland

Debate between Greg Clark and Matt Western

Monday 4th February 2019 Commons Chamber

[Greg Clark]

I am impressed at the hon. Gentleman’s recall of the principles that he was taught. He is right that one of the benefits and sources of efficiency in our production system is that companies do not need warehouses or inventory. It is clearly a matter of huge regret that companies are having to invest in inventory and warehouses and divert capital from more productive uses. I agree that we need a deal and an agreement that allows just-in-time production to continue. I strongly share his analysis of that.

[Matt Western (Warwick and Leamington) (Lab)]

This is clearly a terrible decision for not only Nissan Sunderland and the whole north-east but the entire automotive industry, given how much of it depends on scale and component suppliers working to scale. The Secretary of State understands this sector particularly well. Does he accept that the industry wants a customs union and a single market? Does he accept that the Government have a responsibility to remove the diesel levy that they introduced two years ago?

[Greg Clark]

Obviously the hon. Gentleman has great familiarity with the industry, from his constituency perspective. The industry has consistently expressed itself satisfied with the deal that has been proposed. It has said so in terms at the overall level, through the Society of Motor Manufacturers and Traders, and individual companies have said so. The industry is concerned that this House has not come to a resolution to turn that agreement into something that it can depend on. I hope he will join colleagues from across the House in advocating the kind of compromise that will enable the whole House, not just by a slim majority but wholeheartedly, to agree a deal that can send confidence to investors in this industry and others around the world.

Oral Answers to Questions

Debate between Greg Clark and Matt Western

Tuesday 12th June 2018 Commons Chamber

[Greg Clark]

My hon. Friend is right that the consequences have to be borne by the companies that cheated the system. We need to make the transition to ultra low emission vehicles to make sure that we lead the world in this area. Just a few weeks ago, Toyota announced a big investment in the future of mobility here in the UK, based on the commitments that we are making as part of our industrial strategy.

[Matt Western (Warwick and Leamington) (Lab)]

21. Scrappage schemes have been used in the past to assist businesses and industries in a transition. Has the Minister costed a support package to scrap old diesel vehicles and assist in a managed transition to renewable/alternative energy vehicles?

[Greg Clark]

The hon. Gentleman is right that we need to see a managed change. Earlier, my right hon. Friend the Minister for Energy and Clean Growth pointed out that the next generation of diesel can play a big part in not only reducing greenhouse gas emissions, but improving air quality. We will shortly be setting out our proposals on how we make the important transition to zero emissions across our vehicle fleet.

Nuclear Power

Debate between Greg Clark and Matt Western

Monday 4th June 2018 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right. I had the pleasure of visiting the National College for Nuclear in Somerset a couple of weeks ago. Seeing the opportunities that will be available to the next generation of nuclear engineers is an inspiring sight. I am pleased that this is now available for them.

[Matt Western (Warwick and Leamington) (Lab)]

The Secretary of State will be well aware that several years ago the German Government took the decision to decommission their nuclear reactors and invest heavily in renewables and other suppliers. Given the significant cost advantage of offshore wind and the UK’s geographic advantage in delivering it, what do the UK Government know that the German Government do not?

[Greg Clark]

I am surprised the hon. Gentleman mentions that, because one of the problems Germany has faced is that the return to coal has increased the pressure on its greenhouse gas emissions. I checked before I came into the Chamber, and coal was contributing just 1% of our current electricity generation, compared with 20.5% from nuclear. If we are serious about meeting our climate change ambitions, we have to take decisions that are consistent with that.

Energy Price Cap

Debate between Greg Clark and Matt Western

Monday 3rd July 2017 Commons Chamber

[Greg Clark]

My right hon. Friend makes an excellent point. As I said, the poorest 10% of households spend 10% of their household expenditure on energy, whereas the richest 10% spend 3% of theirs on it. We need to look particularly at the conditions of more vulnerable consumers to ensure that they are not disadvantaged. My right hon. Friend mentioned one of the ways in which they are.

[Matt Western (Warwick and Leamington) (Lab)]

Are we not tinkering at the edges and doing a little bit of window dressing? I think that we all agree that the energy market appears to be dysfunctional. We saw that best at the beginning of this year when there was an increase in tariffs across the board that bore no relation to wholesale prices, but had everything to do with the exchange rate, particularly that with the euro, as most of our domestic companies are actually based in France or Germany. The big six are essentially operating as a cartel, not in the interests of the consumer.

[Greg Clark]

I am not sure that I would give them the excuse of exchange rate movements. The Competition and Markets Authority has said that suppliers have unilateral market power over this part of their customer base. This is a regulated market. Ofgem has the powers to introduce and extend the price gap, and my view is that it should use those powers now.