Great British Energy Bill

Iain Duncan Smith Excerpts

Consideration of Lords amendments
Tuesday 25th March 2025 Commons Chamber

[Michael Shanks]

I am pleased that the Great British Energy Bill has returned to this House. I would like to thank all Members of both Houses for their scrutiny of this important legislation. I extend my thanks in particular to the Minister for Energy Security and Net Zero, Lord Hunt of Kings Heath, for his invaluable support and collaborative approach in guiding the Bill through the other place.

Twelve amendments were made there, which I will seek to address today. Before I turn to them, I remind the House that the Government were elected on a manifesto commitment to set up Great British Energy, and that is exactly what the Bill does. Since the Bill was last in this House, we have appointed five start-up, non-executive directors and announced Dan McGrail as interim CEO, based in Aberdeen, so that Great British Energy can quickly get the expertise needed to help the company develop. I was delighted to convene the first meeting of Great British Energy’s board of directors last week in Aberdeen.

We are determined to get Great British Energy delivering for the British people as soon as possible. It has already made some incredibly exciting announcements on initial projects, including a partnership with the Crown Estate, and most recently announcements on solar for schools and hospitals across England, with funding also for Scotland, Wales and Northern Ireland. We look forward to GBE making further investment decisions on projects this year, driving forward our clean power mission and creating thousands of jobs across the country in the process.

Lords amendment 2 would prevent the Secretary of State from providing financial assistance to Great British Energy if credible evidence of modern slavery was found in its supply chains. There has understandably been significant interest in this amendment from Members in the other place and on both sides of this House. We recognise that concerns have been raised widely on this issue, and I am seeking to approach it in a collaborative and open way with hon. Members.

I will also address amendment (a) to Lords amendment 2, as our approach to this amendment is similar. I first of all thank my hon. Friend the Member for Rotherham (Sarah Champion) for amendment (a). I have been grateful for her engagement with me ahead of the Bill returning to this House. I also pay tribute to her tireless work over many years on this important issue. Her amendment would amend Lords amendment 2 made in the other place by creating a cross-ministerial taskforce to which Great British Energy would need to prove that its supply chains were free of forced labour.

I want the House to be in no doubt that this Government are absolutely committed to confronting and tackling modern slavery in energy supply chains. As set out by my colleague Lord Hunt in the other place, Great British Energy has a range of tools to tackle modern slavery in its supply chains. GBE will prepare a slavery and human trafficking statement when it meets the thresholds set out under section 54 of the Modern Slavery Act 2015. That will outline the steps it is taking to ensure that slavery and human trafficking are not present in its supply chains or any part of its business.

Under the Procurement Act 2023, GBE can reject bids and terminate contracts with suppliers that are known to use forced labour themselves or that have it anywhere in their supply chain. I commit here that GBE will utilise the debarment list to ensure that suppliers with unethical supply chains cannot participate in procurement or be awarded contracts by GBE.

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

That is not altogether correct. The Minister will know full well that the Procurement Act can only be enacted once a supplier has had a conviction under section 54 of the Modern Slavery Act. To do that, proceedings have to be able to be taken against the company that is involved in the slavery. A British company involved in agency is not involved in the slavery. It would have to get the Chinese Government to prosecute the Chinese company to make sure that they got a prosecution here. That is never going to happen.

[Michael Shanks]

I thank the right hon. Gentleman for his contribution and his many years of work on this issue. I will come to some of the detail in addition to this measure, but it is important to say that the debarment list, which was part of the Act passed by the Conservative Government, has been in force since February and will be populated in due course. We will use that list as the basis of challenging the decisions that Great British Energy can make not to take contracts with those on that list. I will look in more detail at the specific points that he raised, and I will come to some of that later in my speech.

--- Later in debate ---

Will the Minister meet me and Professor Laura Murphy, who works on this issue at Sheffield Hallam University, as a matter of urgency to explore the detail of how we can ensure a robust system, like the one that she helped to implement in the United States—a robust system not just for GB Energy, but for the whole solar industry? I agree with the Minister that this is not just an issue for GB Energy, but for the whole industry. Will the Minister work with me to get a workable debarment list, so that we can ensure that GB Energy is acting on modern slavery? Will he give a commitment that GB Energy’s operating framework is committed to tackling forced labour? If I get these assurances from the Minister, I am happy to withdraw my amendment and work with the Government’s cross-departmental working group and others to ensure that we can take the scandal of forced labour out of our solar supply chain.

[Sir Iain Duncan Smith]

I am grateful to be called at this point, Madam Deputy Speaker. Others will want to speak, so I will be as brief as I possibly can.

As I said earlier, the Minister is incorrect in believing that the Procurement Act gives any protection at all against modern slavery in the supply chain. That is a fact of life that we have known for ages. I was one of those who brought the Modern Slavery Act into being 10 years ago, but at that time we did not understand how bad the situation was in China. Over 90% of polysilicon is made in China, and we know for a fact that 97% of all the solar arrays being sold here contain polysilicon from Xinjiang, which will have been made by slave labour. There is no dispute at all about that.

The question facing the Government is not—[Interruption.] I would be grateful if the Minister could listen. The question facing the Government is not whether they think that modern slavery is good—I do not for one moment accuse them of thinking that. What has gone missing, and what Lord Alton’s amendment focuses on, is recognition that there is no requirement on the Government to deal with slavery in the supply chain, and no way for them to do that. As has been said, America has turned the burden of proof upside down and said, “We assume you have slave labour in your product. You must prove to us that you do not.” That is the only way to deal with this. The Americans then sanction offending companies, but under our legislation, the Government do not have such measures available to them.

The Procurement Act does not even do a whisper of that, because it needs a prosecution to have been mounted under the Modern Slavery Act, and that cannot happen because a company that is an agent for a Chinese-made solar array will not be prosecuted. Under the present laws, only the Chinese company that makes the solar array can be prosecuted. That means that no prosecution will take place; no company in China will be prosecuted by the Chinese Government, because the Chinese Government are the ones who set up this ghastly process. Why? Because it makes their arrays cheaper than anybody else’s in the world. That is how they have pretty much wiped out all other array production in the world. Let us ask ourselves: where will we get our arrays from? The answer is that we cannot get them anywhere else, but if we had to, we would have to pay a lot of money. I understand that there is probably a debate going on in Government about whether we go down that road, which would make arrays awfully expensive.

In conclusion, the Government know the facts. I support amendment (b) to Lords amendment 2; I support the hon. Member for Leeds Central and Headingley (Alex Sobel), who brought it forward for the right reasons; and I support the way in which the hon. Member for Rotherham (Sarah Champion) brought forward her amendment (a) to Lords amendment 2. The Government must act. If we do not act, make forced labour illegal and punish the companies involved in it, directly or as agents, then we will be guilty of increasing slavery in China—that is what tonight’s debate is about.

I am sorry that the Government will get rid of this Lords amendment. They could have done a deal to enhance it or whatever, but now they will have to commit to coming forward with legislation to increase and improve the Act that they already have, which will take another debate. I say to the Government: for goodness’ sake. By the way, I had this issue with my own party when we were in government, and I voted against it; I voted with the Labour party to put this provision in the Health and Care Act 2022. We did that together.

I hope nobody thinks that I am being party political, because I am not. I am sanctioned by the Chinese Government because we raised this issue originally. I say to them that I and many in this House will not stop until the Government face up to one thing and one thing only: not one life through modern slavery is worth a lower cost on a solar array. That should be the epitaph of the ridiculous position that the Government are in.

[James Naish (Rushcliffe) (Lab)]

As an energy industry professional before entering this place, I am very pleased to see that Great British Energy is making impressive strides. It has secured a landmark partnership with the Crown Estate, and we have seen it commit to more and more solar power, which is much welcomed by my constituents. We have also seen investment in carbon capture and storage clusters in Teesside and Merseyside, bringing thousands of jobs to those areas.

More broadly, I welcome the Government’s move to lift the ban on onshore wind in England and to promote funding in newer, emerging industries, including hydrogen and fusion energy. I also look forward to the Government announcing the winner of the small modular reactor contract at some point over the coming weeks, when I hope that the Government will also place a sizeable order.

As we advance towards a future of clean, secure, home-grown energy, we must ensure that that future is built on principles of justice and respect for human rights. I will therefore speak to Lords amendment 2. Since being elected last year as the Member of Parliament for Rushcliffe, I have been contacted by constituents voicing their concerns about what is happening in the Xinjiang Uyghur autonomous region of China. In 2021, Sir Geoffrey Nice KC delivered the Uyghur tribunal’s judgment here in London deeming that the Chinese Government’s policies amounted to

“a deliberate, systematic and concerted policy”

to bring about

“long-term reduction of Uyghur and other ethnic minority populations”.

I am afraid that forced labour is being used as a key instrument in this campaign of oppression.

More than 1 million Uyghurs have been detained in re-education camps, and many are transferred to work in factories, mines and fields under barbaric conditions. As has been mentioned, some of those factories produce polysilicon, which is a critical component in 95% of the world’s solar panels. On that basis, it is estimated that around 40% of the UK solar industry may be at risk of sourcing materials tainted by this state-sponsored forced labour. That is why I believe this House has a responsibility to ask hard questions, as these Lords amendments have done. If we are to stand as a country that champions both human rights and climate action, we must ensure that our clean energy future is not built on the backs of exploited peoples.

The choices we make on legislation such as this on who receives British taxpayers’ money and what standards we demand in procurement are not abstract: they are ultimately a measure of whether we are willing to trade convenience for complicity. It is therefore right that we always examine how supply chains operate. It is right that we consider how credible evidence of forced labour should be defined and who is best placed to determine that. It is right that we reflect on whether our current legal frameworks are sufficient.

As has been mentioned, the Modern Slavery Act 2015 was groundbreaking at the time, but it lacks the teeth to tackle the forced labour taking place in Xinjiang. In that context, we should note the steps taken across the Atlantic. In June, it will be three years since the Uyghur Forced Labor Prevention Act took effect in the United States, and I believe similar resolve is needed here in the United Kingdom. We should expedite updating and strengthening our modern slavery legislation in the light of Great British Energy’s ambitious plans. The Uyghur people, and others facing slavery around the world, deserve to know that Britain will not turn a blind eye. We cannot end all injustice, but we can ensure that our laws, procurement policies and public financing do not sustain atrocities. I therefore implore the Government to listen to Members on the Labour and Opposition Benches today. I thank the Minister for the significant steps he has already outlined, and ask him to reassure us once more that the relevant steps will be taken to prevent Great British Energy from in any way contributing to promoting or sustaining known atrocities.