(1 week, 4 days ago)
Commons Chamber
Chris McDonald
The Government and I recognise the importance of the food and drink sector. My hon. Friend is right to point out that the sector is not included in the British industrial competitiveness scheme, but our boiler upgrade scheme does apply to these industries. One thing that I am doing is looking at the role of third-party intermediaries. The Department intends to provide a regulatory role for Ofgem, and subject to parliamentary time, we should be bringing forward measures that will benefit the food and drink industry.
Harriet Cross (Gordon and Buchan) (Con)
This Government are not supporting workers in the oil and gas sector in north-east Scotland and Aberdeen; they are supporting workers in the oil and gas sectors of Norway, Qatar, America and even now Russia. The recent energy transition survey from the Aberdeen and Grampian chamber of commerce showed that 37% of respondents had seen staff or colleagues move abroad. What will it take for this Government to see the damage they are doing and end their ban on new licences, end the energy profits levy, permit Rosebank and Jackdaw, and get Britain drilling again?
Chris McDonald
I have to say that caring for the transition of our oil and gas workers is not something on which the Opposition have a monopoly, because only the Government have taken any action. The previous party when in government oversaw a decline in the North sea and did nothing to support a transition. This Government are supporting the transition in the North sea. Through our tiebacks policy, we are ensuring that we can make the best use of the available resources, but by continuing to invest in our cheapest form of energy and by ensuring that the supply chains are here and that the skills remain here, we will create those opportunities for people to work in those areas of the UK.
(5 months, 3 weeks ago)
Commons Chamber
Chris McDonald
I do agree with my hon. Friend. It really is astonishing how the previous Conservative Government and the SNP Government in Scotland were prepared just to stand by and let the refinery at Grangemouth close after having been given data for years and deciding not to do anything about it at all. He rightly mentions the supply chains, and the multiplier of jobs in the supply chains is much greater. We recognise that this is a good investment for the taxpayer, not just to secure the vital product that we need in our chemicals and defence industries or because the ethylene plant is important in its own right, but to spread the economic benefits through the supply chains in Scotland and beyond.
Harriet Cross (Gordon and Buchan) (Con)
First, like everyone else, I welcome 500 jobs having been secured, but 500 jobs a fortnight are being lost from the oil and gas sector because of this Government’s policies. The Minister has spoken about the supply chain, but those jobs and skills in the supply chain are being lost and will not be there for the transition because of the energy profits levy. The Government have defined what a windfall is. There are no longer windfall prices or windfall profits, but there is still a windfall tax. When will the Government get rid of the windfall tax to protect the supply chain, the oil and gas sector and our vital industries?
Chris McDonald
I thank the hon. Lady for her welcome for the announcement. I think that is something that we can share across the whole House. I would just reiterate the point that the Government recognise the importance of the oil and gas sector. Of course it is important to the UK, to the people who work in it and to local communities as well, but we also recognise that the North sea is a declining basin. We have taken the actions, through our clean energy jobs plan and our clean energy initiatives, to ensure that we secure the supply chains for those clean energy jobs here in the UK. Again, this is a marked contrast between this Government and the previous Conservative Government, who were proud to boast of the UK being the largest market for offshore wind but enabled those jobs to be located in Denmark and other countries around the North sea. We do not think that is acceptable. That is why we are bringing the jobs here and helping workers to transition into those industries.
(6 months, 3 weeks ago)
Commons Chamber
Chris McDonald
I was pleased to meet my hon. Friend earlier to discuss some of these issues in detail, and I am pleased that he has raised the issue of apprentices. I raised that personally with the chairman of the company earlier today, and I have established that there are approximately six apprentices involved. It would be usual in this situation for those apprentices to be found positions in local industry, and that will certainly be a priority. With only six apprentices, I do not think it will be a problem. Local industry tends to respond very rapidly in these situations, and of course it is a priority for us to ensure that those apprentices can continue their apprenticeships.
Harriet Cross (Gordon and Buchan) (Con)
Exxon has said that the plant’s closure
“reflects the challenges of operating in a policy environment that is accelerating the exit of vital industries, domestic manufacturing, and the high-value jobs they provide.”
When are the Government going to take responsibility for the decisions that they are making? We see no prospect of energy prices reducing, while the ethane supply from the North sea is reducing at a huge rate. That is leading to these job losses and it will continue to lead to more and more job losses across Scotland, as the Minister knows, until policy decisions are changed and until the North sea is supported.
Chris McDonald
I am aware that that is what was reported in the press, but I actually spoke to the chairman of Exxon earlier and asked him specifically whether he could confirm that. He told me that there were a few issues, including the availability and cost of feedstock and the efficiency of the plant. He also said that without the $1 billion investment, he could not see a future for the plant in those circumstances.