Oral Answers to Questions

Debate between Iain Wright and Charles Hendry
Thursday 8th March 2012

(12 years, 8 months ago)

Commons Chamber
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Iain Wright Portrait Mr Iain Wright (Hartlepool) (Lab)
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Will the Secretary of State update the House about the memory stick that was lost in India, which contained plans for Hartlepool nuclear power station? What has been done about the matter?

Charles Hendry Portrait Charles Hendry
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Let me reassure the hon. Gentleman that we have looked into the matter. Any loss of a memory stick is a matter of concern, but we have looked at the information that was contained in it, and it was not critical. Although the loss is inconvenient and irresponsible, it poses no threat to national security.

Oral Answers to Questions

Debate between Iain Wright and Charles Hendry
Thursday 1st December 2011

(12 years, 11 months ago)

Commons Chamber
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Charles Hendry Portrait Charles Hendry
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My hon. Friend is right to point to the lessons from the United States. Shale gas has transformed the energy outlook there and potentially turned the US from a gas importer to a gas exporter. There might be lessons to learn, but there are very different rules here on land ownership that will make things much more complicated. We are a much more densely populated area, and other countries such as Poland and elsewhere are clearly attracting interest in this connection, but we will explore the matter. There are no barriers to doing so but nevertheless we recognise the limitations.

Iain Wright Portrait Mr Iain Wright (Hartlepool) (Lab)
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14. What recent discussions he has had on investment in jobs and skills in the green economy.

National Policy Statements (Energy)

Debate between Iain Wright and Charles Hendry
Monday 18th July 2011

(13 years, 4 months ago)

Commons Chamber
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Charles Hendry Portrait Charles Hendry
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There is a continuing need for gas, and the hon. Gentleman has set out the time scales accurately. We face a challenge: we have to get twice as much investment in our energy infrastructure in every year of this decade as was achieved in the last decade. We need a step change in those investment levels, but as he rightly says, there will be a continuing role for gas as well.

Iain Wright Portrait Mr Iain Wright (Hartlepool) (Lab)
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Is the Minister worried about China? It is continuing with its nuclear programme, and about half the world’s nuclear generators will be built in China in the next 20 years or so. Skills, capability and resources will therefore gravitate towards the east. Will that place difficulties on our ability to keep the lights on?

Charles Hendry Portrait Charles Hendry
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We all have to be very mindful of the situation in China. In the time it will take us to build one nuclear power station in this country, it will be building dozens. We have to understand the pressure that that creates for the construction process and the skills challenges. However, I have visited the hon. Gentleman’s constituency and have seen, along with him, the investment going into nuclear skills there, and more generally into the low-carbon economy, and I am very encouraged by what I have seen not only in Hartlepool, but in many other places around the country: businesses, councils, trade unions and others are working together to ensure we have the necessary skills to deliver the construction of plant.

This is not the time for explicit single-sector emissions caps. We recently set the level of the fourth carbon budget in line with the Committee on Climate Change recommendation. This amounts to a 50% reduction in emissions against 1990 levels for the period between 2023 and 2027. It would be wrong to introduce new planning conditions for one part of one sector in the national policy statements when we have already introduced legislation on emissions for all sectors together. Each technology-specific NPS sets out particular issues that apply. As the need case in the overarching NPS states, it is vital to have investment in clean fossil fuels to ensure that we have a secure supply of diverse energy generation.

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Charles Hendry Portrait Charles Hendry
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The purpose of the national policy statements is to facilitate the planning process. What we hear time and again from people keen to invest in different parts of our energy infrastructure is that the planning process is one of the biggest blocks to their being able to make progress—huge amounts of renewable energy are blocked in the planning process. The statements are intended to give greater clarity to investors and to those who are making the decisions, so that our process can not only be much faster and much more constructive, but can provide appropriate engagement for local communities, because we are equally committed to ensuring that their voice is heard in decisions on how their communities evolve.

Iain Wright Portrait Mr Wright
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rose

Charles Hendry Portrait Charles Hendry
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I hope that the hon. Gentleman will understand that, given the number of Members who wish to speak in this debate, it is fair to take only one intervention from each Member.

Oral Answers to Questions

Debate between Iain Wright and Charles Hendry
Thursday 11th November 2010

(14 years ago)

Commons Chamber
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Charles Hendry Portrait Charles Hendry
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Progress is indeed being made, such as in unbundling and separating the vertical integration of some of the larger European countries. They are also making particular progress in energy security, in terms of the development of gas and electricity connections. That will play a very useful role by greatly enhancing our security in times of international stress and pressure.

Iain Wright Portrait Mr Iain Wright (Hartlepool) (Lab)
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In response to a question from my hon. Friend the Member for Stockton North (Alex Cunningham), the Minister acknowledged the huge potential of Teesside and the north-east in the manufacture of renewable energy. That requires Government support, yet business support is being cut, particularly in the regions. Given the enormous potential of Hartlepool, Teesside and the north-east, what can the Minister do to make sure we realise that potential?

Charles Hendry Portrait Charles Hendry
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It is a tradition of these exchanges that I discuss when I will visit the hon. Gentleman’s constituency, and I shall do so before the next exchange. I will be there in early December, so that I can better understand the massive contribution businesses in his constituency and thereabouts can make in respect of our energy security and the development of low-carbon technologies in this country.

Oral Answers to Questions

Debate between Iain Wright and Charles Hendry
Thursday 16th September 2010

(14 years, 2 months ago)

Commons Chamber
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Charles Hendry Portrait Charles Hendry
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My hon. Friend has already established himself as an effective and vocal advocate for those interests in his constituency. I should be delighted to visit his constituency to understand more of the work that is being done, and the pioneering approach of his local businesses.

Iain Wright Portrait Mr Iain Wright (Hartlepool) (Lab)
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In the summer, companies from Hartlepool and Teesside joined to form Chain Reaction, a renewable energy supply chain cluster. This is a marvellous opportunity to win business, promote new technologies and ensure that the engineering and industrial base of our heartlands in the north-east have a brilliant future.

Notwithstanding the disappointing response that the Minister, the hon. Member for Bexhill and Battle (Gregory Barker) gave to my hon. Friend the Member for Ogmore (Huw Irranca-Davies), what practical and tangible support can he and his Government give to ensure that Chain Reaction, this private sector enterprise, can thrive and flourish?

Charles Hendry Portrait Charles Hendry
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One of the things that has impressed me most since I became a Minister is the wealth of activity and expertise in British business right across the country and, indeed, in the hon. Gentleman’s constituency. I repeat my offer to come and visit some of those businesses with him.

Our approach is to say that the Government have to facilitate and put in place the measures that will encourage investment, but one of the most critical things that we can do is bring down the tax and regulatory burdens on British businesses to encourage people to invest and develop their ideas. That is the main focus of the Government.

Energy Security

Debate between Iain Wright and Charles Hendry
Thursday 8th July 2010

(14 years, 4 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

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Charles Hendry Portrait The Minister of State, Department of Energy and Climate Change (Charles Hendry)
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I am grateful to you, Miss Begg, for calling me to open this important debate on a subject fundamental to our country’s future. Energy security is a high priority on the Government’s political and economic agenda. Our view is that energy security and climate change go hand in hand and must be addressed together. At the moment, we need particularly to secure new investment in the United Kingdom’s energy generating capacity in order to compensate for facilities that will soon be decommissioned.

We have inherited a situation in which, although there were many targets, it was not always clear how those targets would be met. We intend and are determined to secure our energy supplies by increasing diversity and being competitive and energy-efficient, but we must recognise that we face one of the most significant energy challenges in Europe.

Over the next 10 to 15 years, we must secure about £200 billion in new investment in our energy infrastructure, a figure estimated by Ernst and Young and supported by Ofgem and others. By 2018, 16 power stations generating more than 18 GW of capacity will close, representing about one quarter of British electricity. We will lose a third of our coal plant by 2016 as a result of the large combustion plant directive, and much of the rest as a result of the industrial emissions directive. Our remaining oil capacity will be extracted at the same time, and most of our nuclear programme, apart from Sizewell B, is due to close by the early 2020s. Global oil demand could rise by a quarter in the next 20 years, and global gas demand could increase by 40% by 2030. Some £5 trillion in investment is needed to meet those future demands.

In addition to that challenge, we face climate change. We must build a different kind of economy that cuts our carbon emissions in order to tackle climate change, and that makes our energy secure in a way that can endure volatility.

Iain Wright Portrait Mr Iain Wright (Hartlepool) (Lab)
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The Minister said that the Government have made the green economy and energy security priorities, which I welcome. I suspect, though, that they tend to focus more on climate change and the green economy than on energy security. May I press him on the remarks made in the coalition programme about energy security, particularly the three bullet points?

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Iain Wright Portrait Mr Wright
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I appreciate your ruling, Miss Begg. Will the Minister concentrate on the energy security elements of the coalition programme? How will he reform energy markets to achieve those aims?

Charles Hendry Portrait Charles Hendry
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I am grateful to the hon. Gentleman. We will have to wait with bated breath for the three bullet points to which he was going to refer. I look forward to hearing them in due course.

Energy security is at the heart of the matter. We must rebuild this country’s energy infrastructure, and a whole raft of technologies exist that we want to bring into play. Part of the problem we face is that, considering the extent to which plant is being decommissioned, more concrete should be being poured and more bricks and mortar put in place now. A lot of work has received consent, but much of it is still on hold pending building. Greater urgency is required to secure construction.

Turning to the specific technologies, we believe that nuclear should be part of the mix as long as it can be built without subsidy; we broadly agree with the former Labour Government in that respect. According to the coalition agreement, if it can be built without subsidy, it will be part of the mix. We are clear that that means the private sector should be responsible for the building, running, decommissioning and long-term waste disposal costs of any new nuclear power stations. The Government must be involved in the effort to remove barriers to investment—the work of the Office for Nuclear Development has been important in that respect—and ensure that the appropriate safety, security and environmental regulations are in place. We see nuclear as part of the mix, but realistically, even if everything goes according to the most optimistic plans, it will be 2017 or 2018 before new plant can be constructed.

Coal has an important part to play as well. We have an abundance of coal; this country has hundreds of years’ supply of coal left. We should be leading the world in coal using carbon capture. We are determined to move from our current position—we are not as far ahead as we should be—and take that global opportunity. In addition to our coal reserves, we need to rebuild our coal-fired power stations. We have unique sequestration facilities at sea where CO2 can be stored, and people with the right skills to carry out that work are working in extremely hazardous conditions in the North sea. We are absolutely committed to taking work forward in that area.

Today we launched a market sounding exercise to encourage the industry to present schemes for consideration for subsequent projects. One pilot project is under discussion, and three others might be considered. We want industry to help us frame the competition in the way that suits it best in order to bring technologies together, share skills and understanding and make it happen.

We also announced today that we are setting up a carbon capture and storage development forum to focus specifically on removing the obstacles to investment in CCS. It will consider the nuts and bolts, just as the nuclear development forum does. We will also make headway on a road map so that people can hold us to account on our ambition. Ambition is important, but without a road map, targets have little benefit or meaning.

We want renewables to be part of the mix too. That is one of the most uncomfortable issues for us in the United Kingdom. Of the 27 members of the European Union, we are second worst regarding the extent to which renewables contribute to our electricity generation. Yet we have resources. We have some of the strongest winds in Europe, the highest tidal flows and some of the strongest potential for wave technology. We have let the rest of Europe move ahead of us in deployment, skills and, critically, the supply chain. We must ensure that we begin to take a lead on renewables. We will need more onshore and offshore wind power, a massive increase in energy from waste and faster development of marine energy such as wave and tidal. We wish to drive all those technologies further forward.

Undoubtedly, the renewables obligation has encouraged significant investment in onshore wind, but that has not been without problems in the communities where it operates. In order to drive further development, we want a different relationship, considering what aspects of council tax and business rates can be kept local to communities and how communities that host facilities of wider regional or national significance can share in the benefits that they bring. That way, we hope to give wind farms greater public legitimacy than has sometimes been the case when investment has been sought in such important systems.

We are now the world leaders in offshore wind power, with 14 operational offshore wind farms generating more than 1 GW of electricity, and a further 1.5 GW worth of construction under way. However, we also need to consider what more can be done to drive work further forward. The round 3 applications are substantial, with billions of pounds of potential investment needed. We know that we have a shortage of skills, ships, cranes and technology. Again, therefore, we must focus on how to provide solutions if companies headquartered overseas seek to invest in Britain. That is one of the challenges we face. In the current market, we are seeking to attract investment not just from British companies, which might be predisposed to invest here, but from companies around the world. That will be a key objective for this new Administration.

Although wind and biomass, as large technologies, will be central to meeting our 2020 targets, we need to see the targets in perspective. Too often, there is a tendency to see them as a finishing post—a line over which we will fall, struggling and gasping, having got there by 2020. In reality, we should see them as a staging post and as part of the process towards even more ambitious and challenging objectives further down the line. If we start to see them in that way, it gives us the ability to drive forward investment in new technologies, such as the marine and tidal sectors. On Friday, I had a meeting in Bristol with some of the key players involved with that technology, who are keen to invest and move Britain forward. However, we do not yet have the structures in place to make that happen.

We are considering how we can make marine energy parks work. A system could be put in place whereby there is not just a grid connection point but, critically, onshore facilities and people with the relevant engineering, academic and business skills. We hope to attract people from around the world to invest in Britain to develop those marine and tidal technologies, so that Britain will be the natural place for them to be deployed. We undoubtedly have the natural resources here to make that happen. However, rather worryingly, some of the key players are looking elsewhere for the best financial support mechanisms—for example, Portugal or the United States. We have to make it absolutely clear to the key players that we are determined to drive this forward in the United Kingdom.

In addition to putting a new generating capacity in place, we face the challenge of rebuilding the grid infrastructure—not just the existing grid, which is rather old, but connecting up the new facilities. Last year, the Electricity Networks Strategy Group published its report, setting out the onshore transmission investments needed to meet the challenges in our generating mix between now and 2020. That group estimates that about £4.7 billion of new investment in the grid is required over the next decade. We will shortly publish our decisions on the best systems for driving forward that absolutely fundamental investment.

We have nuclear, clean coal and renewables in the mix but, realistically, they will not produce huge amounts of electrical energy before the latter part of this decade. We are facing a crisis and a challenge here and now. In the shorter term, we recognise that there will be increased reliance on gas. Although imports are not themselves a problem, our growing dependence on them means that we need to increase the security of our gas supplies.

The Government will set out measures to improve our gas security, as promised in the coalition document. We need more gas storage capacity, more gas import capacity and greater assurances that our market will deliver gas when it is needed. Our gas market arrangements must therefore have a sharper focus on increased flexibility and resilience. We will work internationally to try to address some of those issues and to deal with the physical constraints in the system. The disputes between Russia and Ukraine in the past, and between Russia and Belarus more recently, show that new routes to market for gas must be found. Additional pipeline infrastructures to the north and south of Europe would remove some of those blockages but, again, they will take some time to put in place.

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Iain Wright Portrait Mr Iain Wright
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Will the Minister tell hon. Members how many days of gas capacity we have? I heard that we have eight days at the moment, which does not seem a lot. In the middle of summer, I can understand how that figure is workable, but it would cause a real problem in the height of a very cold, severe winter. What steps is the Minister taking to ensure that we increase gas storage capacity?

Charles Hendry Portrait Charles Hendry
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I think the hon. Gentleman has been reading my speeches from before the election. In two months, we have not completely transformed the availability of gas security and storage in this country. However, we recognise that we have at best about 16 days’ capacity, which compares with about 100 days in Germany and a bit more than that in France. We need to secure more capacity, but we also need to recognise the totality of the picture. The Langeled pipeline from Norway is one of our most important channels, and there are liquefied natural gas facilities in the Thames and in south Wales. Those are areas where we can bring gas into the United Kingdom. That is part of the overall gas security picture. We need more gas storage, but we also need to be absolutely clear—this is what the coalition agreement states—that the people who are supplying gas are certain that they have access to adequate supplies. That could relate to storage, to long-term contracts through pipelines or to more interruptible contracts.

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Charles Hendry Portrait Charles Hendry
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We are considering a whole range of things to which the previous Government were committed. Many were laudable, worthwhile projects, but we have to accept that we have run out of money. That was the fundamental problem. There was nothing about the nuclear industry, the locus of her original charge; we had to consider major areas of expenditure, and commitments that had been made that could not be funded. It is a good company and a good project, and we want it to happen, but we have to decide whether public money should be contributed, given that we are trying to reduce some of the pressures and burdens on taxpayers. I assure the hon. Lady that the decision was based on the fact that the money was not available; it was no reflection on the company’s workmanship, which is outstanding, or the nature of the project itself.

The hon. Member for Hartlepool spoke about the north-east and the contribution that it can make, as he has done before. I asked whether I could visit the area rather than him inviting me, but my offer to visit is still there. I shall have to be slightly careful about those nuclear plants that are going through the planning process, as I may subsequently be involved in some of those decisions. However, I am particularly keen to see some of the supply chain opportunities and the industries that ride on the back of them. I recognise the fantastic opportunities and potential of the north-east, and of those elsewhere.

What is exciting at the moment is that many parts of the country are looking at their energy potential. Cumbria is calling itself the energy coast, and Anglesey calling itself the energy island. Many see it as a key point in selling their areas to potential investors. The skills base of the north-east and the extraordinary depth of experience in the engineering and technical sectors must be an incredible attraction to industry. People looking to come to the United Kingdom will undoubtedly consider the north-east to be a priority area. I would very much welcome the opportunity to see some of that potential with the hon. Gentleman.

Iain Wright Portrait Mr Iain Wright
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Before the Minister moves on from the economy of the north-east, will he comment on the prospect of One NorthEast and the regional development agencies in providing such leadership to potential investors on the energy potential of my region?

Charles Hendry Portrait Charles Hendry
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I am sorry, but I should already have done so, as the hon. Gentleman raised the matter earlier.

We believe that some of the things that the regional development agencies have done were truly strategic, but that others were slightly artificial. People’s view of RDAs is different in the various parts of the country. Having been to see One NorthEast, it is clear that the area had a better sense of regional identity than in my region of the south-east. There is not an enormous amount binding the western end of Oxfordshire with eastern Kent; people have different perceptions in different parts of the country. However, there must be rationality.

Most coastal RDAs say that they are the No. 1 place in the United Kingdom to develop offshore wind facilities, but they cannot all be No. 1. If we are trying to attract big international investors, there may be a case for considering the wider national interest rather than breaking things down further. However, RDAs have undoubtedly done some exceptional work. For example, Yorkshire Forward has been considering how to put a carbon capture and storage infrastructure in place; it is ahead of anything else in England. I hope that some of that work will be continued, even if RDAs are not part of that future—they may be in some parts of the country—but local authorities, which are responsible for business development, might see it as a particular advantage for their communities, and be keen to ensure that it is part of the mix. Again, I am happy to visit the north-east to talk to those in the RDA about how we can build on the work that has already been done.

The hon. Member for Islington South and Finsbury spoke about carbon capture and storage. I shall answer directly some of her questions. She asked whether every new plant built after 2020 would be required to have full CCS. The position is as it was under the Labour Government, which is that they will be required to have CCS or that it should be retrofitted in due course. An important aspect of the levy is that it can be used for retrofitting in plants used in the pilot projects.

The hon. Lady asked whether the four plants would all be coal or whether one would be gas. We are considering the recommendations of the Committee on Climate Change, which said that we should be doing a pilot project on gas. We need to consider the balance, deciding whether one of the four should be gas or whether the first four should be coal. There is no doubt in our minds that coal is the imperative. Coal is the greater polluter; it is where the technology is closer to the market. The focus is very much on coal, but we were pleased that the levy was changed under the Energy Act 2010 to allow it to be used also for developing gas and biomass technologies. The hon. Lady also asked about the emissions performance standard. We are indeed committed to putting in place an emissions performance standard, and in the near future we will be setting out our thinking and how we intend taking it forward.

The hon. Member for Southampton, Test always brings a huge amount of wisdom and experience to such debates, for which I am grateful. He spoke about the oil sector. I agree with him on the subject of peak oil. Realistically, we will not know when peak oil has happened until some time afterwards. However, Nobuo Tanaka of the International Energy Agency spoke earlier this week about the need to bring down demand ahead of the peak in supply. If we can get the peak in demand to come earlier, consumers will benefit because the price of oil will drop dramatically. If the peak in demand happens after the peak in supply, the oil companies will benefit because they will be able to ramp up their prices. For me, that shows the imperative to decarbonise society and to move ahead more quickly.

We have talked of energy efficiency today; that will clearly be part of the solution. We shall need to decarbonise ground transportation, but we also need more low-carbon methods of electricity generation. In looking at the way forward, we need long-term vision. We must decide what steps should be taken now in order to pre-empt the inevitable; the situation will become more challenging over time, and we must try to ensure that society and the nation decarbonise.

I pick up on what the hon. Gentleman said about international reliance. I was intrigued by some of his comments. It appears that he is willing to accept it in some areas but less so in others. For example, we get most of our coal from imports, Russia being the single largest market from which we buy, and we will become increasingly dependent on imported gas from Norway and Qatar. I am not sure whether he wants to see the closure of the LNG facilities, but picking out nuclear and uranium as being something that we import was slightly perverse in the wider context. Diversity is as important as our domestic resources. We enhance our security of supply by having a range of methods of electricity generation and different sources of supply.

Nuclear Energy

Debate between Iain Wright and Charles Hendry
Tuesday 22nd June 2010

(14 years, 5 months ago)

Westminster Hall
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Charles Hendry Portrait The Minister of State, Department of Energy and Climate Change (Charles Hendry)
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I welcome you to the Chair, Mr Brady, in this important debate, and I congratulate the hon. Member for Glasgow North West (John Robertson) on securing it. He has had an interest in this area of policy for many years, and we welcome his commitment. He delivered his speech with the degree of mischief that we have come to expect from him. I hope that we all approach the matter on the basis of needing to find common ground. In opposition, we approached the nuclear debate by asking how we could best co-operate with the previous Government’s approach and how to take the matter out of politics. I hope that that approach will continue during this Parliament, because some of the most important decisions will have to be made during it. I will try to answer as many as possible of the points that have arisen during the debate, but if I do not respond to any, I will be more than happy to make an early appearance before the hon. Gentleman’s all-party group on nuclear energy to try to provide the assurance that its members seek.

The hon. Member for West Bromwich East (Mr Watson) asked whether I would meet the trade unions. I have already had contact with some of them. They are all part of the family, and I am keen to work closely with them because they have a significant contribution to make on skills, safety issues and the whole approach to new-build nuclear in this country.

This has been a good debate and I am grateful for the kind comments that people have made to me personally—they normally say that they respect me just before disagreeing with virtually everything they think I might be about to say. This is perhaps a bit of a replay of the work of the Energy and Climate Change Committee, to which I am sure we will return more formally in due course. We have heard some extremely useful contributions. My hon. Friend the Member for Folkestone and Hythe (Damian Collins) made an extremely impressive speech. He will understand that I am constrained in what I can say about Dungeness, but it is very encouraging indeed that it has such a strong advocate in Parliament for its interest and for the nuclear agenda more generally.

The hon. Member for Angus (Mr Weir) asked about the respect agenda. We absolutely understand that those planning issues are a matter for the Scottish Government, and it will be up to them to decide whether there should be new nuclear plants in Scotland. We have a fairly clear idea where they are coming from on those issues. The national policy statements covered only England and Wales, so the process for Scotland has not been considered, but if one talks to the investors, one realises they have essentially ruled out investment in new nuclear plants in Scotland for the time being. Many people will feel that that is a mistake and is unfortunate. However, we completely respect the position of the Scottish Government.

The hon. Member for West Aberdeenshire and Kincardine (Sir Robert Smith) talked about the range of other low-carbon technologies that we should also be considering. I agree with him. This is not just about nuclear; it is about marine development, in relation to which the United Kingdom is not taking the lead that it should. The issue is also about carbon capture and storage, and we must up the game in terms of our contribution to that. As he said, the matter is critically also about the offshore oil and gas industry and having policies in place that enable us to get the maximum potential out of the resources that are there. That is a central part of our national interest in relation to energy policy.

Iain Wright Portrait Mr Iain Wright
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The hon. Gentleman commands the respect of all parties and I welcome him to his position. He mentioned the issues of nuclear on the one hand and renewables on the other. I agree with him that those matters are not mutually exclusive—in fact, a range of infrastructure is needed to have a degree of compatibility. In Tees valley in my constituency, there are great opportunities to have not only a nuclear power station but a range of renewable energy. What help and support can he give my area to make sure that we become a real centre of excellence and an engine for growth for energy policy in the UK?

Charles Hendry Portrait Charles Hendry
- Hansard - - - Excerpts

I absolutely understand that it is not just a nuclear matter. The Tees valley can play a crucial role in the development of carbon capture in nearby Teesside, and there are also many offshore opportunities there. We want to try to find the best way we can to encourage a supply chain to invest in Britain. That is not always going to be through Government grants and subsidies, although there is a role for that and such an approach can make an important contribution. Other issues will also determine whether people invest in Britain. It is mostly—although not exclusively—international companies that will be making such investment, and there is a wide range of issues surrounding the regulatory and tax environment that will be central to whether they invest here. Nuclear is part of an overall approach. I hope I will have the chance to come up to Hartlepool to see some of those opportunities, and perhaps be shown around by the hon. Gentleman.

Some of the issues raised today have to be considered against the backdrop of the challenge that we face as a country. In the course of the next few years, we will see a third of our coal plant being taken out of commission because of the large combustion plant directive, and most of the rest will go as a result of the industrial emissions directive. Much of the remaining oil plant will also be closed because of those measures. Based on current plans, if there are not life extensions, apart from Sizewell B, the nuclear fleet will have closed down in little over a decade. We therefore have an incredible challenge to face.

The hon. Member for Glasgow North West, who introduced the debate, talked about £200 billion of new investment, which compares with about £350 billion of new investment in energy infrastructure in the other 26 nations of the European Union. We have a uniquely serious challenge, and part of the problem is that not enough has been done soon enough. If the five-year moratorium on nuclear had not taken place, we would obviously be five years further forward in the development of those plants. The pressure points in our energy security to which he and others have referred exist because we have not been securing enough investment at an early enough stage during the course of the process.

The coalition agreement is absolutely clear. By definition, a coalition agreement brings together people of differing views to work together for the national good, and that is what we are seeking to achieve. It has been made clear that nuclear will be part of the mix as long as that is done without subsidy. Above all, we have to know whether the industry itself is comfortable with that position and whether the people who will be required to invest billions of pounds in each plant are happy with that agreement. The discussions that we have had since the election suggest that they are comfortable with that arrangement and with the position of myself and the Secretary of State.

Some people opposed nuclear for philosophical reasons; others believed that it would not happen because it would never be economically viable. The Secretary of State has always questioned the economics. However, he is happy that if people come forward with an application for a new nuclear plant without subsidy, it should be part of the mix going forward. We have a clear position, which the investors themselves have been very keen to clarify and which they are now able to support. I hope hon. Members will give us the credence to work forward on that basis, because it is critical for investor confidence that they see a broad coalition in Parliament in favour of a future role for nuclear in this country.

We will go to great lengths to ensure that the taxpayer is protected—no subsidy means no subsidy. We are considering areas in which there may have been hidden subsidies and dealing with those. For example, we will certainly maintain—and reinforce if necessary—measures put in place by the previous Government to ensure that the operators of new plants are required by law to set aside money from day one to pay for the waste and clean-up process. The industries themselves will have to carry out the investment, but the Government will be responsible for the regulation of the safety and environmental aspects that go with that.

The Office for Nuclear Development will continue its crucial work in trying to remove barriers to investment. I give the right hon. Member for Lewisham, Deptford (Joan Ruddock) an assurance that the Nuclear Development Forum will be a key part of taking that forward. It has been an extremely important part of that process, in which both the Secretary of State and I will be very involved. We want people to see that we are at one on these issues.

There has been much discussion of planning during the debate. A statement will be made to Parliament in the near future that will set out exactly how the changes will work. We want the national policy statements to be ratified by Parliament because that reduces the risk of judicial review and makes them stronger and more robust. We want investors to see that there is a strong majority in Parliament in favour of new build, as that sends a strong signal to their overseas boards. We will certainly take account of the representations made by Dungeness to be included in the list, but we will also give similar weight to the representations from community groups in areas concerned about new build, so that we can ensure that their views are fully taken into account. We are currently considering our response to the NPS consultation process and we will make it clear as soon as we can.

On the Infrastructure Planning Commission, we will be introducing a degree of democratic accountability. There will not be delays as a result of that process because we totally understand the urgency of driving these decisions forward, not just in nuclear but right across the board in the energy mix. However, we are keen to ensure that there is parliamentary accountability—again, because we believe that reduces the risk of judicial review.