Oral Answers to Questions

Greg Smith Excerpts

Thursday 9th January 2025 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Greg Smith (Mid Buckinghamshire) (Con)]

May I, too, wish the Minister a very happy birthday?

Estimates suggest that the SAF mandate provisions and the revenue certainty mechanism will still leave a shortfall, with a family of four facing over £300 extra to fly on holiday by 2040. That is a clear concern for consumers, as well as the airline industry. Net zero should not come at an additional cost to consumers or undermine freedoms—in this case, the freedom to fly. The test must surely be how to defossilise, decarbonise and allow people to do the same at the same cost. What steps is the Minister taking in conjunction with the Treasury to close the financial gap between incentives in the mandate and the actual increased cost of switching to SAF for the end consumer?

[Mike Kane]

I think the good will ended with “happy birthday.”

I remind the shadow Minister that a little over 12 months ago, in one of his better videos, the then Prime Minister came out into Downing Street, looked at the sky and lauded the policy he wanted when we saw Virgin Atlantic’s 100% SAF trip across the Atlantic. This was the previous Government’s policy but, because of the sclerotic nature of that Government, we are only now getting on with implementing both the SAF mandate and the revenue support mechanism. As the shadow Minister knows, a regular review point is baked into the legislation so that we can revisit targets, if required.

[Greg Smith]

Of course, there is always another way. Much of the debate so far on SAF has been about fuels made from feedstocks and waste products. Unlike fuels that require feedstock, whose input costs will only ever go up, the industrial process that creates power-to-liquid synthetic aviation fuel will actually see its production costs reduce, with some predicting cost parity between the production of these synthetic fuels and the extraction and production of fossil fuels within a decade. Does the Minister agree that synthetics offer a much better long-term solution, and will he reprioritise the Government’s approach to SAF away from transitional solutions and towards synthetics?

[Mike Kane]

The hon. Gentleman runs his car on synthetic fuel, so I know his passion. There are many ways to get to SAF. The SAF mandate is supported by industry, and there is a real opportunity to establish a plethora of production. We can create thousands of new well-paid jobs while protecting the pound in the holidaymaker’s pocket.