National Policy Statements (Energy)
Debate between Huw Irranca-Davies and John Robertson
Huw Irranca-Davies
I would expect the people of Wales, the Welsh Assembly Government and the National Assembly for Wales to have a full input and I am sure that the Minister, when he concludes, will be able to confirm that that is exactly what would happen. My hon. Friend’s point is very well made: such a decision cannot be made unilaterally and there has to be input from across the regions, too.
I said that those who doubt the technology should be respected, and not long ago the Secretary of State was one of those doubters. Confronted with the evidence and, I guess, with office, he has changed his tune. I must tell the Minister that the manic contortions of the Secretary of State over the financial support for nuclear have surpassed those of a Chinese acrobat in recent weeks. Last week, during the electricity market reform statement, when challenged by his party colleagues, he laid out three financial mechanisms that could support the development of new nuclear facilities alongside other low-carbon technologies. He did that to explain to the House that there was no subsidy for nuclear.
As the Secretary of State has come out of the closet on nuclear, he ought to stop trying to hide his embarrassment. The expansion of low-carbon technologies does not come free and they will all—onshore and offshore wind, biomass, future wave and tidal, CCS and nuclear—require some support and market intervention to drive in the levels of capital required. The medium to long-term protection that that gives through the diversity of energy security is in the interests of UK plc and we support it.
We do not, however, support sleight of hand or the appearance of double dealing. The carbon floor price announced in the recent Budget is a pretty poor way of generating the new low-carbon investment that the documents envisage. It was, in fact, a back-door windfall for existing nuclear and renewables to the tune of £1 billion and a far from stealthy Treasury tax grab of £740 million in 2013-14 rising to £1.4 billion in 2015-16. That decision shook confidence in DECC’s grasp of electricity market reform, shocked some of the big six utilities on which the Minister explicitly depends for the level of new investment required and it hammered the energy-intensive users, risking exports of jobs abroad along with carbon leakage. It gives carbon tax a bad name and shows who is in charge of DECC policy: the Chancellor.
On EN-6, although it is good to see the groundwork physically being dug for the first of the new generation of stations at Hinkley Point, will the Minister tell us when he anticipates that the first such station will be completed and online? Can he give us an indication of the dates for bringing the others online? Will he please not say that it is entirely up to the market, as that would suggest that he has not met any nuclear operators over the past year? He has, as I have, and I am sure he will have some idea of when that will happen.
John Robertson
Is my hon. Friend concerned, as I am, about the grid for some of the new power stations and, for that matter, renewables and about how the energy will get into the system for people to use?
Huw Irranca-Davies
Very much so. That is the benefit of having the package of NPSs to consider tonight, as we need to deal with the grid connectivity, too, to which I shall return in a moment. My hon. Friend makes a good point.
We are also considering EN-3 on renewable energy. Since we last debated the draft NPS on renewables, we have learned that the UK has dropped out of the top 10 global league tables for investment in renewables. That is quite a feat for the greenest Government ever. We have not just slipped out; we have bombed out. We have crashed out from having the fifth highest inward investment according to global rankings at the end of Labour’s Administration to having the 13th, according to the Pew report, in just one year. Today’s NPSs, including that on renewables, are part of the end-of-term report for the greenest Government ever, which states: “Must do better. After early promise, fails to live up to expectations and has gone backwards in many areas.”
The renewables document, EN-3, however, will succeed because it is built on very good foundations. It is welcome that the Government have made good on Labour’s ports competition and have started to build the manufacturing, distribution and servicing base in our ports, which will see a massive boom in our offshore wind. That builds on the consenting regime for offshore that was already under way under Labour. Those measures will provide crucial green jobs in manufacturing, engineering, design and maintenance up and down hard-pressed coastal regimes and in supply chains across the country, so they are to be welcomed. With streamlined planning in place, we will have the potential to create several hundred thousand jobs and to reduce emissions of carbon dioxide by hundreds of millions of tonnes as we head in the direction set by the previous Government.