Oral Answers to Questions

Iain Stewart Excerpts

Wednesday 15th December 2021 Commons Chamber

[Andrew Gwynne (Denton and Reddish) (Lab)]

2. What recent discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on supporting renewable energy generation in Scotland.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

I regularly discuss issues of importance to Scotland with Ministers, including support for Scotland’s renewable energy sector. Our recently published net zero strategy will leverage up to £90 billion of private investment by 2030 across the entire UK.

[Bill Esterson]

Edinburgh based Nova Innovation is a success story in the tidal energy sector. There are plans for tidal energy schemes across the UK, including in the Liverpool city region, with the Mersey tidal barrage. Thanks in large part to the Labour party and the industry, £20 million is now available in the contracts for difference scheme, after years when there was nothing. Will the Minister commit to long-term support for the tidal energy industry, which has so much potential in Scotland, for my constituents in Merseyside and across the UK?

[Iain Stewart]

The hon. Gentleman is absolutely right to point to contracts for difference, the fourth round of which was announced at the beginning of this week and is bigger than the other three rounds put together. Scotland has punched above her weight, securing 21% of the capacity in the previous rounds, and stands well placed—not just in tidal, but right across the spectrum of renewable energy. We are funding this in the short and long term.

[Andrew Gwynne]

The British Government have not backed the Acorn carbon capture and storage cluster, which is vital to Scotland’s path to net zero, but are maintaining support for the Cambo oilfield, which would dig up more fossil fuels for years to come. Does the Minister agree that the priority should always be supporting renewable energy generation, not fossil fuels?

[Iain Stewart]

The hon. Gentleman paints a misleading picture of the support that we are giving. I have just outlined to the hon. Member for Sefton Central (Bill Esterson) the long-term support that we are providing to the renewables sector. It is wrong to say that we are not backing Acorn. There was a competitive round for two carbon capture and storage schemes. Acorn was a good project; it is a reserved project. We continue to work with it to ensure that it has a fighting chance of securing the next tranche of the carbon capture and storage schemes.

[David Duguid (Banff and Buchan) (Con)]

I welcome the remarks made by my hon. Friend with regard to Acorn in my constituency, which is still very much on the table, despite protestations from Opposition Members. Will my hon. Friend confirm that the Government also provide the oil and gas industry with vital support for the energy transition through the North sea transition deal?

[Iain Stewart]

I can absolutely give my hon. Friend that assurance. I pay tribute to the tireless work that he does to champion the energy sector, both as a Minister and as a local Member. He is absolutely right; yes, we need to transition to renewable, but we have to be aware of the fact that we will need oil and gas during that transition period—not just for energy, but for the all the other purposes for which fossil fuels are required, such as the production of medicine.

[Mr Speaker]

I welcome shadow Minister Liz Twist to her new post.

[Liz Twist (Blaydon) (Lab)]

Thank you, Mr Speaker.

The post-COP26 message is that Governments have little time to act on climate change. As the Secretary of State is aware, the Acorn carbon capture and storage project has not been given the go-ahead by the UK Government, but it could create 15,000 highly skilled jobs in Scotland and demonstrate that a just transition is feasible. The shadow Secretary of State for Scotland, my hon. Friend the Member for Edinburgh South (Ian Murray), wrote to the First Minister to encourage her to find a joint solution, but the reply contained more reasons not to work together and grievances than finding a solution for the project. Rather than the UK and Scottish Governments trading insults, will the Secretary of State back the Acorn project by finding a joint funding solution with the Scottish Government?

[Iain Stewart]

I welcome the hon. Lady to her new position. I look forward to our debates in the weeks and months ahead. I can advise her that she should probably not be too surprised when letters from the Scottish Government are full of grievances—that is par for the course. On Acorn, we do support the scheme. There was a competitive bidding round, where it placed third. It is a reserved project, and we are working with it to ensure that it stands a good chance in the next tranche of the carbon capture and storage scheme.

[Jacob Young (Redcar) (Con)]

Alongside renewable energy, we need to accept our current energy mix with the energy transition. Does the Minister therefore share my anger at the Scottish Government’s complete dismissal of the Cambo oilfield, at the expense of oil and gas workers in Scotland and across the country?

[Iain Stewart]

My hon. Friend makes an important point. As I said a minute ago, we cannot just switch off oil and gas immediately. We want a transition, and this Government are investing significantly, with £160 million in floating wind farms, £20 million for tidal stream and the £285 million next round of contracts for difference, but it is important that we do not lose our domestic oil and gas supply not only for energy, but for the whole range of purposes, including medicine and other vital products.

[Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)]

3. What recent assessment he has made of the implications of allegations of standards impropriety for his Department’s work on strengthening the Union.

--- Later in debate ---

[Dr James Davies (Vale of Clwyd) (Con)]

4. What discussions he has had with Cabinet colleagues on improving transport connections between Scotland and the rest of the UK.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

I have regular discussions with ministerial colleagues about cross-border connectivity. Sir Peter Hendy’s report, published last month, covers a wide range of solutions spanning all transport modes across the United Kingdom. We will take time to consider carefully all the recommendations in the report, and we will publish our response in the new year.

[Dr Davies]

Investing in zero-emission technologies is essential for future public transport connections. Scotland, as well as other parts of the country, is of course an important manufacturing base for buses. Can my hon. Friend confirm that the Government are working hard to ensure that British manufacturing leads the way in fulfilling our world-leading commitments to introduce zero-emission buses?

[Iain Stewart]

I am happy to give my hon. Friend that assurance. We remain committed to supporting the introduction of 4,000 zero-emission buses and to achieving a zero-emission bus fleet. I think I am right in saying that transport is now the biggest single contributor in this country to carbon emissions, so it is absolutely right that we back our domestic industry to help deliver these zero-emission buses.

[Mr Speaker]

Let us bring in the shy Member—Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

Thank you, Mr Speaker. Can I ask the Minister this question? Now that the bridge between Scotland and Northern Ireland has been laid to bed at long last, can the Minister indicate what will be done to improve the roads from Larne to Stranraer and further on, because it is important for us in Northern Ireland, where we have tourism and we have business, that the roads are up to a certain standard? What has been done to improve those?

[Iain Stewart]

The hon. Gentleman raises an important question. The thinking behind the connectivity review is that we look at transport connections right across the UK. The A75 from Stranraer and Cairnryan to the motorway network is in desperate need of an upgrade, and that was one of the central recommendations of Sir Peter’s report. We absolutely see that as an important corridor.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

5. What discussions he has had with Cabinet colleagues on the future of the oil and gas sector in Scotland.

--- Later in debate ---

[Sally-Ann Hart (Hastings and Rye) (Con)]

8. What assessment his Department has made of the effectiveness of support for the Scottish tidal power sector.

[The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)]

I am delighted that the Government recently announced a new £20 million ringfenced allocation for tidal stream technology as part of the new contracts for difference round. That will enable Scotland to take advantage of the huge potential that exists to develop tidal stream technology.

[Sally-Ann Hart]

The Scottish Affairs Committee visited Orkney a few months ago when collating evidence for its report on renewable energy. We were so impressed with the tidal stream technology, which is less expensive than tidal lagoon barrage technology. I am delighted that the renewable energy auction will include for the first time a ring fence for tidal stream power. How will that turbocharge the potential for this type of renewable energy in Scotland?

[Iain Stewart]

I am very glad that my hon. Friend and her colleagues on the Committee had the opportunity to visit Orkney. I also visited Orkney in August and was hugely impressed by the innovation that is going on there. The principle behind contracts for difference is that it gives the renewables sector the confidence to invest in these long-term technologies. I believe Scotland as a whole, and Orkney in particular, will be at the forefront of that.

[Mr Speaker]

Before we come to Prime Minister’s questions, I would like to point out that the British Sign Language interpretation of proceedings is available to watch on parliamentlive.tv.