New Pylons: East Anglia

James Cartlidge Excerpts

Tuesday 19th July 2022 Westminster Hall

[Sir Bernard Jenkin]

I am very grateful to my right hon. Friend for his kind words. I agree with him completely. One of my arguments is that this consultation is completely inadequate. All the respondents to the House of Commons engagement team’s inquiries expressed a strong preference for an offshore transmission system, which would avoid the blighting of farmland, and people’s homes and communities. That barely figures in the consultation and it was only in yesterday’s discussion that National Grid started to explain why it had not really considered that, but it has not published the reasons, figures, assessment or analysis as to why that has been dismissed so quickly.

[James Cartlidge (South Suffolk) (Con)]

My hon. Friend is making an excellent speech. Did we not learn yesterday that the reason National Grid had not published those detailed figures and analysis is because it did not have them, and that its pledge to produce them by the end of the summer—to give us more information that it believes will show the justification for the decision—suggests it will be working in reverse? That is not how a consultation should be done.

[Sir Bernard Jenkin]

No, it is not, but to be fair to National Grid, it engaged openly with us and we were grateful for that engagement. I believe the people at National Grid are doing their best; of course, they are working within a regulatory framework and against expectations that have been set since the industry was privatised in the 1980s that are now completely out of date. Everybody is guilty of making mistakes, but this is not about blaming people for making those mistakes; we need to address why the mistakes are being made and put that right, without casting blame on the people who are doing their best.

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[Jerome Mayhew]

Of course, Ofgem would say, “Well, we’ve done the calculations. We know that there isn’t going to be any more offshore wind, and we think this is going to be enough.” But in 2015, when it last looked at this subject and was asked to assess whether an offshore transition network would provide value for the money to the consumer, its advice to the Government was, “No, it would not, because we will never have enough offshore wind to justify it.” Well, how wrong it was. Just seven years later, here we are bitterly ruing that short-sighted failure to make anticipatory infrastructure decisions. We could have avoided all these arguments and be leading Europe in the development of this innovative design, which now is absolutely technically possible. In fact, I have spoken, with others, to the managing director of Hitachi, who told us that this is off-the-shelf technology now.

We come back to the consultation, which has just been closed, and the position of the regulators and National Grid. Their argument is essentially that it is too late to change the decision about connection points. We already have radial connections coming into Norfolk. Given that the power is being delivered to south Norfolk, the network has to be reinforced to draw the electricity south, hence East Anglia GREEN and 112 miles of pylons. However, I invite the Minister to take a step back and look at the rationale behind the decision to write contracts to allow the offshore wind farms to connect to Norwich south. All those offers must have been subject to planning permission, because the regulator knew, or ought to have known, that the connection point did not have sufficient capacity to deal with the anticipated measures.

[James Cartlidge]

My hon. Friend is making an excellent, highly technical and very important speech. Is it not true that in our recent discussions with Ofgem, National Grid and others that officials from the Department for Business, Energy and Industrial Strategy confirmed on the call that none of the current contracts could in any way predetermine the planning application? Therefore, the question of how the electricity is ultimately shifted through the onshore grid is still open.

[Jerome Mayhew]

My hon. Friend is absolutely right. As a question of law, it must be open because it is subject to planning.

The Minister has a great opportunity not to make the errors that we made in 2015 and to be bold about the anticipatory infrastructure that is required, which is being implemented for the holistic network design elsewhere in the country. It is ironic that the only part of the country that is not part of the holistic network design is East Anglia, given that East Anglian MPs pushed the Government into adopting the policy.

We have an opportunity to create the infrastructure that will allow us to connect without more devastating impacts on our environment and communities; to save money in the medium term, as pointed out by the National Grid ESO position paper; and to accelerate the early adoption of additional wind farms, because once the offshore transmission network in place, the connection process will actually be quicker and easier. Additionally, if we take the offshore route via “Sea Link 2” down to the Isle of Grain, there will potentially be additional benefits in relation to international interconnectors.

I question the rationale behind the assumptions that went into the consultation paper, and I make this one further request. In the very constructive call that a number of us had with National Grid Electricity Transmission Operator yesterday, it committed to generating a like-for-like offshore replacement for East Anglia GREEN, but I have one concern about that. If we literally have a like-for-like replacement, we would be taking energy from Norwich South to Tilbury. That is not the question that should be asked. The question that should be asked is what is the cost of taking advantage of an offshore route to deliver electricity to the Greater London area? It is not an exact like-for-like comparison with Dunstan in south Norfolk to Tilbury. How do we take advantage of the benefits that National Grid ESO identified in its position paper to maximise the dynamism of our electricity provision while minimising the cost to the taxpayer and to the constituents of our three counties?

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[Peter Aldous (Waveney) (Con)]

It is a pleasure to serve with you in the chair, Mr Stringer. I offer my condolences to my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) for his loss. I congratulate him on his choreography to secure the debate, which is ultimately about the roll-out of zero carbon renewable energy on what is likely to be the hottest day ever recorded in the UK.

The transition to net zero provides enormous opportunities for East Anglia to be the engine room of the UK, bringing new sustainable and rewarding jobs not just for Waveney and Lowestoft, which I represent, but across the region. If we get it right, we can be a global exemplar of how to deliver the transition. That, in turn, will create enormous export opportunities.

The case for offshore wind is compelling. It is now the lowest-cost technology for generating electricity. Energy bills continue to rise, and being able to transport and deliver more offshore wind across the UK will reduce bills. We need more homegrown green electricity to move away from Russia’s influence. The weather today provides a snapshot of our future if we delay action to reduce carbon emissions.

National Grid’s East Anglia green energy enablement project, known as GREEN, should be set in the context that approximately one third of today’s UK energy demand can be met by the energy that will come into East Anglia by the end of this decade. While much work has taken place to upgrade the existing transition network, it needs significant reinforcement. GREEN is the preferred option that National Grid has worked up in accordance with the existing regulatory framework, which includes the relevant national policy statements and the so-called Holford and Horlock rules.

I acknowledge the desire of all right hon. and hon. Members, on behalf of the communities that they represent, to consider an offshore option, but it would have been disingenuous of National Grid to have consulted on such proposal, knowing that the current policy and regulatory framework within which they operate would have discounted it. In due course the Government might wish to amend the national policy statements.

It should also be emphasised that we are at an early stage of the option appraisal and assessment process, with a statutory consultation and an examination in public to follow. There is therefore an opportunity for those concerned about the proposals to engage further with National Grid, following up the meetings they had yesterday and probably before, to address their concerns.

[James Cartlidge]

My hon. Friend is perfectly reasonable and has great passion about offshore wind, as we all do. He is perfectly entitled to make those points, but this is not a parallel universe. There is a sub-sea link going ahead off East Anglia called Sea Link 1. Our view is that we need far more of that. To quote National Grid about the justification:

“By connecting East Anglia and Kent, Sea Link will provide the additional network capacity needed to enable the import and export of wind energy to and from Europe.”

If it is not in policy, how can we be in a parallel universe where we are going ahead with sub-sea link off East Anglia? Our view is that we need more of them to build a connected offshore grid.

[Peter Aldous]

I thank my hon. Friend for his intervention and I am about to address his point and highlight why that alternative is not viable under the existing framework. Taking into account the framework within which National Grid operates, I would make the following high-level comments on their proposals. First, they have presented the most economically advantageous solutions, as they are bound by the UK Government to do. To move it offshore not only is technically challenging but will cost an estimated 10 times the current proposal—a cost that will ultimately be paid by the consumer. To bury the cable along the entire route not only would have a huge impact on the environment—as 150-metre-wide trenches are dug—but would increase the cost some 14 times.

While other regions have benefitted from subsea links, the scale of the challenge in East Anglia is much larger, with significantly higher amounts of potential electricity needing to be delivered into the grid. To do that without multiple connections coming ashore, together with East Anglia GREEN, would be similar to redirecting traffic from the M25 on to the A140—that tortuous route, which East Anglians know well, that runs from west of Ipswich, via Norwich, up to Cromer.

[James Cartlidge]

On a point of information, as it were, the sea link that I am talking about, which my hon. Friend said cannot go ahead under policy, is approved. National Grid will be going ahead with the link; it will be going from Sizewell to Kent. It will be going ahead partly because it gives more resilience to the nuclear power station, if we are completely frank. The point is that it is a reality. The justification that National Grid uses is the same one that we want to see from Sea Links 2, 3 and 4. “Sea Link 2” was rejected. The sea link that we are talking about has been approved and the current policy framework allows approval of undersea connection off East Anglia. As far as we are concerned, the quantity is too low compared with other parts of the UK.

[Peter Aldous]

I thank my hon. Friend for his intervention and I am sure that the Minister will pick up on that in his speech. From my perspective, I think it is wrong to dismiss the concerns of the communities that the new pylons will run through, as we have heard from all colleagues today. The way forward at this early stage of the consultation process is for them to work in partnership with National Grid, developers and local and central Government to mitigate the impact. Developers are showing a willingness to do that.

In Norfolk, Vattenfall is delivering its Norfolk offshore windfarm zone by pursuing a co-ordinated approach to the onshore element of the transmission. Business organisations, such as the East of England Energy Group, Net Zero East, Opergy and the New Anglia Local Enterprise Partnership, together with the East Wind Offshore Cluster, are developing new ideas to help address future connection. That includes collaborative project design with shared or modular grid connections, and encouraging and facilitating hybrid projects such as wind to hydrogen and wind to storage.

I acknowledge the worries that all my colleagues are articulating on behalf of their constituents. However, there must be no holdup or delay in the roll-out of the offshore wind projects off the East Anglian coast. Already, they are making a significant contribution to the local economy. ScottishPower Renewables has a £25 million operations and maintenance base in the Hamilton dock in Lowestoft that is already running and providing jobs for people in my constituency and across Suffolk and Norfolk. ScottishPower Renewables is also planning to invest a further £6 billion up to 2030 as part of its East Anglia hub development. Such projects provide a once-in-a-lifetime opportunity, creating new, exciting and well-paid jobs for local people, which is vital as part of the levelling up process. They are also critical for the overall prosperity of East Anglia and for us to play our role in mitigating the impact of climate change, which we are feeling so forcefully today.

[James Cartlidge (South Suffolk) (Con)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I join others in passing my condolences to my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin), who made a brilliant speech in the circumstances. We are grateful to him for continuing none the less. We are also grateful to him for chairing OffSET; I think we have had an impact.

Let us be clear what we are not debating today. No one is debating the policy of pursuing net zero—all of us East Anglian MPs support that. No one is debating the need for sovereign sources of energy, given Russia’s invasion of Ukraine. Actually, no one is debating the need for an offshore grid. That is now Government policy. When my hon. Friend the Member for North Norfolk (Duncan Baker) held an Adjournment debate in November 2020, the current Secretary of State for Business, Energy and Industrial Strategy, then the Energy Minister, said to him:

“I would suggest that the argument for some form of offshore network system has been won. What is critically under discussion at the moment is the timing.”—[Official Report, 5 November 2020; Vol. 683, c. 584.]

That was November 2020. In the summer of 2020, the discussion had not even started. That shows the progress OffSET made in persuading Government to buy into an offshore grid. Last May, in my last Prime Minister’s question before being promoted, I asked the Prime Minister about an offshore grid. He said:

“My hon. Friend is spot on in what he says about the need for an offshore grid.”—[Official Report, 19 May 2021; Vol. 695, c. 698.]

So, it is Government policy.

The question before us is about the extent to which an offshore grid is being taken into account in the real life in-flight decisions being made today that are affecting our constituents, which brings us to East Anglia GREEN. We have just had the consultation on this brand new proposal for huge pylons across Norfolk, Suffolk and Essex. I attended those consultation sessions. Having met with my constituents, it is my view that they felt it was a predetermined consultation—what we would call a fait accompli.

My constituents were shown a narrow strip of land—I think it is called a swathe. The National Grid officials hoped that the discussion would be about where exactly the pylons would go within that very narrow swathe. However, my constituents and those of colleagues had envisaged that that informal consultation would be an opportunity to discuss the top-level options. Should the pylons go under the sea? Should they go over land? If over land, should they be underground just in the area of natural beauty, or elsewhere? Instead, constituents were presented with a final decision that the pylons were going in that swathe, on land—taking place, as I said earlier, as if in a parallel universe.

I also received feedback from constituents that when they asked the National Grid officials in the village halls doing the consultation about an offshore grid, they were told that it is not possible, not feasible and so on. I wrote to all constituents affected and pointed out that although officials were telling them that an offshore grid is not feasible, National Grid is committed to £3.4 billion of expenditure on undersea cabling off Scotland and the north of England, on two enormous bootstraps—undersea electricity cables.

In fact, we already have an undersea electricity cable off the west coast, from Scotland to north Wales, called the Western Link. As my hon. Friend the Member for Harwich and North Essex said, the total mileage—built or committed—is about 800 miles. Off East Anglia, with Sea Link 1, which I referred to when I intervened on my hon. Friend the Member for Waveney (Peter Aldous), the mileage is about 80 miles—a ratio of 10:1. When I shared that with my constituents, they were astonished. They had been given the impression that it was not even possible; in fact, it is happening as we speak. Bootstraps have been built and others will be built. My constituents want to know why we could not get a greater share of that technology in our counties.

What particularly hurt was reading an email that was shared with me. I will not reveal the name of the person concerned—they are a member of the public. The email, which was sent to National Grid’s community engagement team on the northern project, asked:

“Would you know the reasons to go submarine rather than overground, there are many obvious advantages but would be interested to understand the primary considerations?”

The response from National Grid was:

“This is a good question. Routing the cable overground for hundreds of miles would likely require overhead lines that would cause disruption and visual impacts to many communities, ranging from County Durham to southern Scotland, where the route originates. By routing the cable under the North Sea, away from settlements, we significantly reduce its impact on communities.”

Just to be clear, the question was about the primary considerations. It is clear that, off Scotland and northern England, the primary consideration—those are the words National Grid responded to—was the protection of communities. Yet when National Grid came to Holton St Mary village hall to speak to my constituents, who said, “We want you to protect our countryside by going offshore,” National Grid said that that was not even possible—“And, by the way, we can’t even talk about it as part of the consultation.”

[Jo Churchill]

My hon. Friend is making a very powerful case. If I understand him correctly, he said that in the consultation the value and worth of communities and environment was a strong rationale, but we are being told that we have to be bound by the rationale of the NPS, which is economic and efficient. Does he feel, like me, that we are not being treated fairly?

[James Cartlidge]

My hon. Friend makes a fantastic point: we are not being treated fairly. We possibly got some explanation about that at the meeting that we held yesterday with National Grid, National Grid ESO and Ofgem. Unfortunately, it was a private meeting, inasmuch as it was not held with our constituents, but it was public to the extent that we can talk publicly about what was discussed. I would much have preferred that our constituents were involved in those discussions, but unfortunately the consultation has closed.

What is crucial is that, first, National Grid argues that the consultation covered offshore options. National Grid emailed me. It believes that it covered those options because, buried in a 120-page document that it circulated when people from National Grid were going to village halls, there is a page that says:

“The use of onshore technology. The potential for an offshore connection was considered as part of the process of defining the preferred reinforcement solution”—

it then goes through some detail—

“but concluded that the options were poorer performing on the basis of capability and poorer in cost benefit least regret terms.”

In National Grid’s view, that means that the consultation covered offshore options. When I ask whether it covered offshore options, I mean that, when my constituents went to Holton St Mary village hall, was there a picture on the wall of their preference and another picture of what an offshore option would look like? That is what a consultation means: people look at both options. Of course the option was not on the wall; it was buried in the small print.

My view is not predetermined. National Grid says that it consulted on offshore. This, therefore, is what I am going to do. I will write to all of my affected constituents and ask them, “Did you participate in the consultation, and if so do you feel that it covered offshore? Do you feel that you had a say in the top-level choice of going overground or under sea?” My thoughts are not predetermined—I will see what they say—but my view is that the consultation did not cover it. There was no transparency on the justification.

There is a reason that there is no transparency, which we discovered yesterday. My hon. Friend the Member for Harwich and North Essex is absolutely right that the people at National Grid are doing their job, and we should not cast blame. That is not the point; we are here to represent our constituents. National Grid said yesterday that given the concern about what is happening in Scotland and the sense of unfairness, it would publish a detailed assessment of an offshore option later in the summer. Why will that be published later in the summer? Because it has not been done. There has been no detailed assessment of an offshore option.

How on earth did National Grid conclude that it cannot go offshore? Let us figure that one out. That will answer the question from my hon. Friend the Member for Bury St Edmunds (Jo Churchill), because I am pleased to say that the meeting was attended by Akshay Kaul, the director of networks at Ofgem. The argument from National Grid is that the framework precludes it from looking at an offshore option. The regulator, Mr Kaul, said that is not correct: the framework does not preclude looking at offshore options; all the infrastructure projects should be looked at on a case-by-case basis. That is what he said to us yesterday, very transparently. How can something be looked at on a case-by-case basis if the detailed work has not been done?

National Grid also said to us something that goes back to the brilliant point made by my hon. Friend the Member for Broadland (Jerome Mayhew): that the work it will do will show that an offshore option is not possible. There is a word for that. I have only recently resigned as the courts Minister, and must be careful what I say—I am conscious of the judicial arm—but that is predetermination if ever Members have heard of it: “We will do the work, but here is the answer it will tell you.”

I would like that report, first, not to be undertaken by National Grid, but to be commissioned by the Government and undertaken by an independent expert who is not predetermined. Secondly, I would like it—as my hon. Friend the Member for Broadland said—not to draw a line from the closest oceanic point next to Norwich down to somewhere in the south of England, for instance near Tilbury or the Isle of Grain, but rather to draw what we all want, which is a mesh of offshore connections: in other words, not just Sea Link 1, but Sea Links 2, 3 and 4, which would give us 6 GW, which is what the pylons would give us. Crucially, as my hon. Friend said, we would then have the nodes that give us the interconnectivity with the continent, so we can import and export, and be the Saudi Arabia of offshore wind.

In other words, we want the consultation to be reopened, not to look at this basic and expensive option, which has had no work put into it, but to ask an independent consultant, “What if we used this connectivity as the foundation stone for a proper offshore grid in East Anglia?”, which is what we believe Government policy should be.

There is one final thing that the report needs to do. It needs to include my constituents. We know constitutionally that none of us is here in our own right. We are here only by virtue of the fact that we have won an election and we represent our constituents. They have not been involved in any of the discussions. There was no meaningful consultation on offshore as far as I am concerned. This has to be reopened. That does not mean giving us a report; it means going back to Holton St Mary village hall with the results and explaining to people why it may not be possible to go offshore, but being transparent about that. That is what democracy is all about.

[Mr Richard Bacon (South Norfolk) (Con)]

It is a pleasure to serve under your chairship, Mr Stringer. I reiterate the condolences of my colleagues to my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) on his loss. That was a brilliant speech by my hon. Friend the Member for South Suffolk (James Cartlidge), and I associate myself with nearly everything that nearly everyone has said. I am smiling at my constituency neighbour—my hon. Friend the Member for Bury St Edmunds (Jo Churchill)—whose constituency is behind Tesco and Morrisons in my constituency. We are neighbours, but if I were to go a few hundred yards to the east, my neighbour is a different Member of Parliament. I know Wortham Ling well—I walk my dogs near there.

I am interested in two aspects of this important debate. First, planning permission cannot be assumed and therefore a route cannot be assumed. I may have misinterpreted this, but that appeared to have come as a bit of a surprise to the Minister. He certainly looked round in alarm when one of my colleagues made that point. The second aspect is about time. My hon. Friend the Member for Harwich and North Essex mentioned judicial review. I do not want to repeat anything that has been said, but it is clear in the development in recent years of English administrative law—common law—that there is a law of consultation known as the Gunning principles, which are set out clearly and helpfully by the Local Government Association. There are four principles and they derive from a case in which Judge Stephen Sedley was in charge of the court: Regina v. Brent London Borough Council, ex parte Gunning—that is why they are called the Gunning principles. They are now clearly established and applied by the courts.

The first principle is that the proposals are still at a formative stage. The second is that there is sufficient information to give intelligent consideration. The third is that there is adequate time for consideration and response. The fourth, which has become increasingly important in recent cases, as opposed to earlier cases where the first three principles were given more weight, is that

“‘conscientious consideration’ must be given to the consultation responses before a decision is made”.

My hon. Friend the Member for Waveney (Peter Aldous) made a point about time. He said that “there must be no holdup” in the development of offshore wind. Amen to that—we all agree. The one way we can be absolutely sure there will be a huge holdup is if the lawyers get hold of this. If the Minister wants to be bogged down in judicial review and legal battles for years to come with no progress towards our net zero targets, all he has to do is ignore what all of us are saying, and I guarantee that that is where he will end up.

[James Cartlidge]

There is another email about the reasoning for the eastern link, and another reason was given was about the speed of delivery of an offshore link against the speed of building pylons. It says:

“The subsea link between Torness in East Lothian and Hawthorn Pit in County Durham needs to be in place by 2027. The link between Peterhead in Aberdeenshire and Drax in North Yorkshire is needed by 2029. While onshore AC overhead line options were considered, those were discounted because they would not be deliverable in the timescales that were required.”

Does that not show that going undersea can actually be quicker?

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[Kerry McCarthy (Bristol East) (Lab)]

It is a pleasure to see you in the Chair as always, Mr Stringer. I congratulate the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) on bringing the debate and extend my commiserations to him on the death of his mother.

When I found out that I was speaking for the Labour Front Bench in this debate and saw that the subject was posited as local opposition to renewable energy projects, the first word that came to mind was nimbyism. Such debates can be about people not wanting something that spoils their view, but it has been made very clear that the debate today is not about that.

In his opening remarks, the hon. Member for Harwich and North Essex was quite right to point out that it does matter if there is an impact on people’s house prices or on the aesthetic appeal of living in the countryside. We should not dismiss those things lightly. He also spoke about food production and the hon. Member for Bury St Edmunds (Jo Churchill) spoke eloquently about the importance of regenerative farming. Ukraine affects this debate, as it affects so many things, both in our energy security and in our resilience, including the sort of crops that could be grown in East Anglia. We ought to be doing far more to support farming there.

The frustration that the hon. Member for Harwich and North Essex expressed with the current processes and the discussions that have taken place was clear, and he talked about the lack of national control. Does the Minister think that the process is accountable and transparent? Could it be improved? Do we need a longer-term, broader-ranging strategy from the National Grid?

There were calls for National Grid to publish costed offshore alternatives to East Anglia GREEN. I welcome the fact that a meeting took place yesterday. That sounds as if it was a productive step on the way to trying at least to put more options in front of East Anglian communities, and I welcome that.

We heard from the hon. Members for Broadland (Jerome Mayhew) and for Bury St Edmunds that this was a case of putting the cart before the horse. It came across very genuinely that this is not about people trying to delay something by throwing in lots of obstacles, almost like “Wacky Races”, where lots of rocks are thrown in front of the vehicles so they will not reach the finish line. These are genuine concerns that are being raised.

The hon. Member for Bury St Edmunds talked about the broader issue of energy resilience and critical national infrastructure. This is one local example of how we need to get it right but, as she says, we need more clarity on the issue nationally as well.

I was interested to hear the comments made by the hon. Member for Waveney (Peter Aldous), not least because, having served on the Environmental Audit Committee with him, I know that he is genuine in his commitment to environmental concerns. He said that there should be no hold-ups to rolling out offshore wind, and I entirely agree with him. There was a debate with the hon. Member for South Suffolk (James Cartlidge) about whether the existing framework would permit alternative options to be considered. I will leave it to the Minister to go into who is right and what has been said about that, but that goes to the need for greater transparency in the process.

The hon. Member for South Suffolk also said that all East Anglian MPs support net zero. Having listened to some of the contributions to the Conservative leadership contest, I am not entirely sure whether the hon. Member for Saffron Walden (Kemi Badenoch) would say the same, but that is a debate for another day. The hon. Member for South Suffolk said that the consultation was inadequate and did not cover the offshore options, which were buried in the small print. Again, I will leave it to the Minister to say whether he feels that the consultation was adequate. The hon. Member for South Norfolk (Mr Bacon) also said that the consultation was not adequate and warned about getting lawyers involved, which we would probably all want to avoid. I speak as a lawyer myself.

Let me conclude because it is important that the Minister has plenty of time to reply. The need to make the shift to low-carbon energy is real and urgent, and the push for 50 GW of offshore wind by 2030 is very much part of that. In recent weeks, the Government have been criticised by the Climate Change Committee for the inadequacy of their plans to reach net zero, although they are doing better on energy than on some other aspects, and only yesterday, Friends of the Earth successfully brought a court case against the Government, which will require them to rethink their net zero strategy.

I hope that there will be a revised strategy as a result of the court case and the criticisms of the Climate Change Committee, and that must include a big push to get the right low-carbon infrastructure in place. Opposition to onshore wind has been a disaster for efforts to ramp up renewable energy capacity in the UK, and it is now easier to build a road than to put up an onshore wind turbine in this country.

On this project, while I bow to the local MPs over the points that they want to put on the table, it appears to me that we need the strengthening cable to facilitate the landing and transportation of power from new wind farms. Undergrounding has been discussed, although I note that the hon. Member for Harwich and North Essex said that undergrounding would not work as well in practice as in theory. In Scotland, quite a bit of undergrounding has been done, but the hon. Gentleman was concerned that it would still have an impact on the Dedham Vale area of outstanding natural beauty. There was also discussion of whether alternative offshore routes are viable. I wait to hear from the Minister whether he thinks they really are an option.

I have a final question for the Minister: if there were additional costs associated with pursuing the offshore route, would they fall on customers through the transmission element of bills? I hope that that would not be the case. We all know the impact of rising energy prices, so will the Minister clarify whether, if a more costly option were deemed appropriate, for all the reasons the MPs here today have mentioned such as there being a problem with the cheaper option that is being posited, the Government would provide direct support to avoid that cost falling on customers through their bills?

[James Cartlidge]

To clarify, we are not saying that options with, for example, a higher theoretical up-front capital cost are necessarily more expensive over the long term. The key issue is the horizon over which we look. We feel that, based on National Grid’s own figures, if we had a co-ordinated grid, that would be much cheaper in the long term for constituents.

[Kerry McCarthy]

I pose this question to the Minister: if a different option were adopted that turned out to be more expensive, would that cost be passed to the customer? I am by no means in a position to judge which option is more expensive.

Let me conclude. There is no perfect solution, and I am pleased that discussions are taking place and that National Grid has met MPs. I hope that those discussions continue, but the ball is now in the Minister’s court for him to respond to the Members present for today’s debate.

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[The Minister for Energy, Clean Growth and Climate Change (Greg Hands)]

It is a pleasure to serve under your chairmanship, Mr Stringer, and I begin by congratulating my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) on securing this important debate. I offer my sincerest condolences on the death of his mother. I knew my hon. Friend’s father, who was a distinguished former Environment Secretary, and I feel sure I met his mother in connection with his father. I know how tragic the death of a parent can be, and I genuinely send him my deepest condolences at this difficult time.

My hon. Friend has continued to be a champion for his constituents on this topic. He said that he has never received as many emails as he has recently on this issue. I will be sure to continue to engage with National Grid on this matter, and I will ensure that it engages with my hon. Friend.

I congratulate my right hon. and hon. Friends on their engagement. It is always impressive to see MPs closely in touch with their communities. I am glad that yesterday they met National Grid—NG ESO and NG ET—and Ofgem. If I am not able to respond on all the points that they raised in the 15 minutes available, I am sure we will meet again.

My hon. Friend the Member for South Suffolk (James Cartlidge) wrote to me just over a week ago, and I want to address the questions and concerns in his letter. I will begin by introducing the topic and setting out the wider context. The British energy security strategy sets out bold plans to scale up and accelerate affordable, clean and secure energy, made in Britain for Britain, so that we can shift decisively away from expensive fossil fuels. That includes the ambition for 50 GW of offshore wind by 2030.

In the fourth contracts for difference auction earlier this month, five offshore wind projects totalling 7 GW won contracts at a record low strike price of £37.35 per megawatt-hour. To put that in perspective, on 7 July—the very same day as that result—the prevailing wholesale electricity day-ahead price was £230 per megawatt-hour. My hon. Friend the Member for Waveney (Peter Aldous) made the point well that we are No. 1 in Europe in terms of our offshore wind capacity, and the contributions to the local economy in East Anglia should not be underestimated. That confirms the fact that positioning offshore wind as a central pillar of our energy security strategy is the right call, and accelerating its deployment will be key to addressing Britain’s long-term energy needs.

I welcome the support of my hon. Friend the Members for Broadland (Jerome Mayhew), my hon. Friend the Member for South Suffolk and others for the strong contribution that offshore wind makes to the UK’s energy needs. Currently, it produces 11.4 GW. However, connecting that cheap, green energy and transporting it to where it is needed in East Anglia and across the country will require more electricity network infrastructure, both onshore and offshore, than we have today. We need that infrastructure to be built more quickly. Timescales for delivering transmission network infrastructure can be as long as 11 to 14 years—often far longer than the time taken to deliver the generation that is being connected. That constraint is already biting: about 5% of wind generation is curtailed, which means that its output is reduced because there is not enough capacity on the network to transport it. That could increase to 15% to 20% in the mid-2020s as wind generation increases.

How do we connect that energy? Unfortunately, placing all new infrastructure offshore is not feasible, as I think we would all agree, as ultimately the electricity needs to get to where the demand is, which is onshore. Therefore, even with offshore cables, infrastructure such as substations is required onshore at landing points.

Let me be up front with my right hon. and hon. Friends: the new projects proposed in East Anglia, such as East Anglia GREEN, are considered nationally significant infrastructure projects, as defined in the Planning Act 2008. Any project of that nature comes to the Secretary of State for Business, Energy and Industrial Strategy, who will consider a broad range of planning matters. That is a quasi-judicial process, of course, and I am sure that my right hon. and hon. Friends will understand that I cannot comment on specific points, which will almost certainly be submitted during the planning process, but I will try to deal with as many points as I can in the available time.



My hon. Friend the Member for Harwich and North Essex called it a patch and mend approach. I disagree with that, but there is a big transformation coming up through the Energy Security Bill, which was published only last week and is due to have its Second Reading in the House of Lords today. It includes within it a future system operator, which will take a long-term view of the whole energy system. That is one of the key reforms in the Energy Security Bill that will come before the Commons in the autumn. Two of the four pathfinder projects that have come out of the holistic network design process, which is part of the offshore transmission network review, which I will come on to explain, are actually located in East Anglia.

My hon. Friend the Member for Bury St Edmunds rightly pointed out that there is a presumption in favour of overhead pylons, but there are still broad overall factors involved in making these decisions. Those broad factors include the environmental impacts, the community impacts, the cost to bill payers, which I am sure all my hon. and right hon. Friends would agree is a significant factor, deliverability and speed. Those are all relevant factors when this planning is carried out. The significantly increased cost of undersea or underground cables needs to be taken into account, and the environmental impacts of different options need to be carefully weighed up. For example, undersea cabling can have a significant impact on marine life.

[James Cartlidge]

I appreciate what my right hon. Friend is saying—he is being very clear with us—but does he appreciate that what we learned from National Grid yesterday is that it will, over the summer, undertake a detailed assessment of a potential offshore alternative? In other words, yes, a range of factors can be considered, but that cannot have happened in the East Anglia GREEN consultation because there has been no detailed assessment of an alternative. On that basis, I hope he can understand why our constituents feel that the consultation should be reopened.

[Greg Hands]

I thank my hon. Friend for that intervention. Unfortunately I was not able to be at the meeting yesterday, but I will carefully look at a read-out of what was said at that meeting and study it. In any case I need to respond to his letter of 7 July, so I will make sure that I take on that specific point as far as I am able.

In general, my hon. Friend makes the good point that there is undersea cabling around the country. He rightly points out connections, for example, between Scotland and Wales, between Scotland and England and so on, but it is worth pointing out that East Anglia GREEN will deliver 6 GW of extra network capacity. I think my hon. Friend the Member for Waveney made that point. The latest offshore cable technology is capable of carrying up to 2 GW of capacity. When we are looking at the sheer amount of energy that needs to be transmitted, it is not necessarily comparing like with like. To deliver the equivalent of East Anglia GREEN offshore would require at least three 2 GW cables. We can all look at a map and see where connections are, but that does not tell the whole story.

[Greg Hands]

I thank my hon. Friend for that intervention. I have spoken about yesterday, and I repeat my pledge to hold as soon as I can a further meeting with colleagues to consider what was said and the progression of these matters, while bearing in mind the quasi-judicial planning nature of the Secretary of State’s decision.

In July my right hon. Friend the Secretary of State, when he was Energy Minister, launched the offshore transmission network review, or OTNR, to improve the level of co-ordination in how we connect offshore and ensure that future connections are delivered in the most appropriate way. I think itwas my hon. Friend the Member for Broadland who asked, could we not have foreseen in 2015 the great need for this work? To some extent, that is not an unfair point. In many ways, in this country we are victims of our incredible success with our offshore wind capacity, which is the largest in Europe. It was the largest in the world until last summer, when China overtook us. It really is the envy of the world, and others come to see us. The United States is scaling up its capability and other European countries are coming to see us and so on. So he makes a fair point.

Earlier this month, we reached a significant milestone in the review with the publication of a major deliverable—the holistic network design, to which my hon. Friends have referred. In addition, we recently announced Nick Winser CBE as the UK’s first Electricity Networks Commissioner. He will play a pivotal role in ensuring that we have the right infrastructure to transmit electricity to where it is needed.

I pay tribute my hon. Friend the Member for Bury St Edmunds for always being engaged on all matters environmental during her time at the Department for Environment, Food and Rural Affairs. When it comes to commercial and industrial and energy resilience, which is very important, I refer her to the evidence that I gave yesterday to the Joint Committee on National Security Strategy, which goes into those matters in some detail.

The HND sets out the need for about £54 billion of onshore and offshore transmission infrastructure, new and upgraded, which will be needed to deliver our 2030 ambition. That is the first time that those have been co-ordinated to ensure better outcomes for communities, the environment and bill payers. Although a new requirement for onshore network reinforcement has been identified in the HND, no decisions have yet been taken on how best to do that. All projects that come forward as a result of the HND will be subject to the relevant democratic planning processes to ensure that local stakeholders get a say on the developments and that the impacts are mitigated as far as possible. I have already mentioned the pathfinder projects.

I will deal with three or four other points that arose in the debate. My hon. Friend the Member for Broadland asked whether connection contracts were subject to planning. They are, but of course they are not yet in the planning system. There is a statement from the five projects in East Anglia that are working together on offshore co-ordinated options, as he knows, and utilising changes in the offshore transmission network review process. That will be supported by a £100 million offshore co-ordination support scheme, which will be launched later this year.

My hon. Friend the Member for Bury St Edmunds asked about the NPS, which will be reconsulted on later this year. I expect that that will apply to this project. MPs will have a chance to have an input on the NPS process. I expect both the current and future NPS to provide the flexibility for trade-offs between cost and impact and between offshore and onshore options to be brought forward where appropriate. That is a matter for National Grid Electricity Transmission and Ofgem. My hon. Friend also asked about the environment impact assessment for East Anglia GREEN, which will cover the impacts on agriculture. We expect farmers and landowners to receive compensation for any loss or impact on crop production.

My hon. Friend the Member for South Suffolk wants a study on the offshore grid to be done independently. In accordance with its transmission licence, it is NGET’s responsibility to develop and put forward options to reinforce the network. BEIS is the ultimate decision maker for those nationally significant infrastructure projects.

[James Cartlidge]

NGET could commission an independent expert under its contract.

[Greg Hands]

I am sure that National Grid Electricity Transmission will have noted that point from the debate. If my hon. Friend did not make that point yesterday, I am sure he could make that to them. I must be careful about the role in the quasi-judicial process in relation to NGET’s responsibility.

We have covered the holistic network design and the pathfinder projects, so I will allow my hon. Friend the Member for Harwich and North Essex a couple of minutes in which to respond. I look forward to continuing engagement with my right hon. and hon. Friends on these topics. I will respond in writing to the letter of 7 July as soon as possible. I will also look at what was said yesterday and any other points from the debate that I have not been able to respond to.

Oral Answers to Questions

James Cartlidge Excerpts

Tuesday 12th July 2022 Commons Chamber

[James Cartlidge (South Suffolk) (Con)]

Further to the question from my hon. Friend the Member for Bury St Edmunds (Jo Churchill), the fact is that National Grid is committing to 800 miles of undersea cabling to protect countryside in Scotland and the north of England from new pylons, but to only 80 miles off East Anglia, even though we produce so much offshore wind. Why are our constituents not going to get a fairer share?

[Greg Hands]

My hon. Friend and I have met to discuss this issue at least three times, and he continues to be a champion for his constituents. I know he is doing a lot of constituency meetings on this. I will continue to engage and make sure that National Grid also engages with him constantly.

Electricity Network Grid Charges

James Cartlidge Excerpts

Thursday 8th July 2021 Commons Chamber

[The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)]

I congratulate the hon. Member for Kilmarnock and Loudoun (Alan Brown) on securing an important debate.

Network charging arrangements are central to the delivery of a secure and affordable net zero energy system, and the Government absolutely understand that. By law, network charging is a matter for Ofgem, as the independent regulator. Network charges are governed by the principle that the user pays. For the transmission network, that means higher charges for generators in Scotland, as much electricity is sent over long distances to centres of demand in the rest of Great Britain. By contrast, homes and businesses in Scotland pay lower transmission charges than consumers elsewhere in Great Britain. This cost-reflective approach ensures the efficient use of the network and keeps costs down for all bill payers.

Ofgem recognises the critical importance of charging arrangements in progressing to net zero. Last week, it published its consultation on a number of reform proposals as part of its access and forward-looking charges review, including a proposed reduction in the up-front charge paid by generators and demand users connecting to the distribution network. Ofgem’s consultation also noted potential issues with transmission charging arrangements and signalled that it is considering a wider and more holistic review of them.

As the pace of the energy transformation accelerates, it will be important for Ofgem to have clear sight of the Government’s policy priorities for energy decarbonisation. We have therefore committed in our energy White Paper to consulting on Ofgem’s strategy and policy statement in 2021. It will set out the strategic priorities of the Government’s energy policy, the policy outcomes sought and the role of the Government, Ofgem and other parties collectively responsible for delivering these goals.

For the Government’s part, we remain firmly committed to the roll-out of renewable generation projects and are taking a number of measures to support it. We will continue to support low-carbon projects across Great Britain through our contracts for difference scheme. Scotland has benefited significantly from the scheme since its inception in 2015; 34% of all projects are located there. The next round will open at the end of this year.

We have launched the offshore transmission network review to improve the delivery of transmission connections for offshore wind generation. We are working very closely with the devolved Administrations on that.

[James Cartlidge (South Suffolk) (Con)]

The offshore transmission review, as the Minister knows, means a lot to my constituents because they strongly support net zero. Offshore wind has been an amazing achievement in East Anglia, but it is bringing new infrastructure and we have the threat of new pylons across open countryside. On pricing, is it not true that one should look not only at the charging, but at expenditure on capital items that are relieving infrastructure pressure? For example, the eastern link, a huge undersea cable off the coast of Scotland that will relieve pressure on the countryside, will be more than £3 billion. People in East Anglia will hope to see similar expenditure so that they have a defrayment of the infrastructure that would otherwise be going over the countryside.

[Anne-Marie Trevelyan]

My hon. Friend is a doughty campaigner on the matter and continues to drive the Department to make sure that we are moving the offshore transmission network review at pace to find the right solutions that work for the whole country. We will be working on the review to improve delivery.

If I may, I will reply in detail in writing to the very long series of questions asked by the hon. Member for Kilmarnock and Loudoun, to ensure that he gets as full an answer as possible. In closing, I emphasise the importance of the network charging arrangements, which support the delivery of net zero in a fair and efficient way. The reforms that Ofgem is progressing will help us to achieve that.

Question put and agreed to.

Employment Rights: Government Plans

James Cartlidge Excerpts

Monday 25th January 2021 Commons Chamber

[Andy McDonald]

I agree wholeheartedly with my hon. Friend in that respect and I will come on to deal with many of those issues later on in my speech.

Against this backdrop, it is shocking that the Government would even consider embarking on a review to rip up the hard-won rights of working people. As revealed in the Financial Times, the Government have drawn up plans to end the 48-hour working week, weaken rules around rest breaks and exclude overtime when calculating holiday and pay entitlement. If the Government have their way, these changes would have a devastating impact on working people. Quite simply, it will mean longer hours, lower wages and less safe work.

The 48-hour working week limit is a vital protection of work-life balance. It is also a crucial health and safety protection, without which the physical and mental wellbeing of workers and the general public is at risk. But let us not beat around the bush: working longer hours leads to more deaths and more serious injuries. Nobody wants their loved ones cared for by our fantastic, but exhausted and overworked, nurses or ambulance staff, or for buses and trains to be operated by tired-out drivers. After the sacrifices of the past year, it is unconscionable for the Government to plot changes that would endanger workers and the public.

It is not just about making work less safe; the Government are proposing to exclude overtime from holiday pay entitlements, which would be a hammer blow to the finances of the country’s lowest paid and most insecure workers. Under current rules, regular overtime is included when calculating holiday pay entitlement, ensuring that it reflects the hours that are actually worked. Scrapping those rules would mean that the holiday pay that workers get would be lower. The average full-time care worker would lose out on £240 a year, a police officer more than £300, an HGV driver more than £400 and a worker in food and drink processing more than £500.

The losses, however, will be even more severe for those who work irregular hours, such as retail workers, who work lots of overtime. USDAW, the Union of Shop, Distributive and Allied Workers, described the case of Leon, a warehouse worker who works night shifts for a major parcel delivery company. Employed on an 8.5-hour contract, but working 36.5 hours in an average week, Leon would lose £2,149.22 per year.

All of that is at the start of the stewardship of a new Secretary of State for Business, who wrote in “Britannia Unchained” in 2012 that the British are

“among the worst idlers in the world”.

The Secretary of State is wrong: far from being lazy, British workers work some of the longest hours of workers in any mature economy, yet our economy still suffers from poor productivity.

The solution is to strengthen employment rights, not to strip them away in a bid to make working people work even longer hours. The Secretary of State excused his comments as being made a long time ago, but in 2015 the right hon. Gentleman wrote and edited another pamphlet, called “A Time for Choosing”, in which he said:

“Over the last three decades, the burden of employment regulation has swollen six times in size”,

before singling out protections on working time, declaring that the UK

“should do whatever we can to cut the burden of employment regulation.”

Does he stand by that?

[James Cartlidge (South Suffolk) (Con)]

On recent writings, Labour had a manifesto in December 2019 that committed to a four-day week. Is that still its position?

--- Later in debate ---

[James Cartlidge (South Suffolk) (Con)]

May I begin by associating myself with the remarks of the Opposition spokesman, the hon. Member for Middlesbrough (Andy McDonald), about those workers who continue to go to their physical workplace during the pandemic? We should all pay tribute to them and share that noble sentiment. I also congratulate my right hon. Friend the Secretary of State on his promotion to the Cabinet—it is well deserved. I know he will champion business in these challenging times and, in particular, the principles and practice of free enterprise.

We may not be moving the amendment, but I am particularly proud that it contains two words that we did not hear at all from the Opposition: job creation. Let us be clear: no matter what anyone says, there is broad consensus now across the House and the country about keeping the fundamental employment rights we have. Employers are familiar with them, employees understand them and the country generally supports them. However, it would be quite extraordinary, facing the economic pressures that we do, if a Conservative Government did not look at what supply-side reform, including deregulation and cutting red tape, could be brought forward so that we can strengthen our recovery as we eventually come out of lockdown, and there are two key reasons why they should do that.

The first is obviously the strength of the challenge. I am very proud that, as the Secretary of State said, we had the lowest unemployment since I was born in 1974 before we went into the pandemic. However, covid and the action that we have had to take have created inevitable economic pressure, and the impact on jobs will be seismic. In that context, the Government should use every lever at their disposal to strengthen the recovery as we move out of lockdown. That must include looking at what areas can be deregulated, while keeping fundamental employment rights in place.

The second reason is that we have to understand one of the most important assets of our economy. One of the key strengths of UK plc is that we have a flexible labour market. The World Economic Forum and others have recognised that. It is a key factor in why huge multinationals like to invest in the UK, and inward investment will be a crucial part of our recovery. It would therefore be deeply unwise if we were now to send a message to the rest of the world that we were going to unwind our flexible labour market.

This is about the message we send. If we had a four-day week—it seems that the Labour party is still considering that—there are many who would support it, but the message that that would send is that we were not going to be pro-business or to drive a strong recovery. Instead, the message we should send is that we will look at every single action we can take across Government, in every Department, to prioritise jobs, jobs, jobs and to achieve the two outcomes we must achieve above all else: reducing the risk of long-term scarring from covid to the economy and, most important of all, maximising those two great words—job creation.

Border Carbon Adjustment Tariffs and Decarbonisation

James Cartlidge Excerpts

Wednesday 16th December 2020 Commons Chamber

[Jerome Mayhew]

The hon. Gentleman is entirely right. That is one of the great benefits of a border adjustment: it allows us to raise domestic costs without being unfairly undercut by international imports coming in. We can square the circle. We can support the environment by setting a carbon price that is sufficient to change people’s behaviour, to make lower-carbon products more attractive in the economy than higher-carbon products, while at the same time facilitating our domestic industry to remain competitive.

It is because we cannot price carbon emissions that our market is currently floundering. The reason is that they are an externality. When I produce a piece of paper, I take account of the cost of the ingredients for the paper, the energy I will use, my overheads, my marketing spend, my transport and distribution costs, and my profit. However, in the free market exchange with my purchaser, the cost to society of the emission of carbon through that manufacturing process is not currently accounted for, because it is dissipated into the environment and we cannot put a price on it. That is why we have market failure on the price of carbon.

So what do the Government do to try to deal with that market failure?  They are left in a very difficult position. They try to change behaviour by announcing a reduction in targets, making piecemeal regulations as and when they become available, and picking innovation winners—we have a list, most recently hydrogen and modular new nuclear, to name but two. I very much hope the Government have got those expensive choices right. Based on the available evidence I believe that they have, but that is the point: only a properly functioning market finds the best way to allocate capital, with its invisible use of the combined knowledge of the sum of all the participants in that market. No Government can match that combined wisdom.

Our current approach to carbon pricing simply does not work. If we raise the cost of energy with our higher cost of carbon, our industry simply becomes uncompetitive, as the hon. Member for Strangford (Jim Shannon) pointed out a moment ago. Manufacturing simply moves abroad, or it goes bust and its place is taken by the raft of imports from higher-carbon countries—in addition to the very high cost of carbon in the import process and transport—like China. The result is damaging to jobs. It is, of course, damaging to our business. It is very damaging to our balance of trade. It is very damaging to our tax base and it is damaging to the climate. All in all, it is a damaging disaster.

Border carbon adjustment can transform that process: charge imports from a high- carbon economy the same carbon cost as we impose on our domestic industry via a BCA and the problem is solved. There would be no incentive for our manufacturers to base production abroad, since the costs would be equalised. Foreign companies would no longer have an unfair trade advantage. In fact, it would provide them with a direct incentive to reduce carbon usage in their domestic environment to avoid corrective tariffs. From a policy perspective—I am using China as an example—the Chinese Government would have a choice: either their exports pay a carbon price at our border and the money goes to our Exchequer; or they create a carbon price in their domestic market and they get to keep the money themselves. There is, therefore, a really positive incentive internationally for carbon reduction and the benefits to be spread. After all, climate change knows no borders. Better still, using the same calculation for border carbon adjustment but this time in reverse, our own factories would get the benefit of a carbon cost rebate at the border when they export, making their exports both cheaper and more profitable, increasing our competitiveness already on the international market.

There are many ways that you can skin this particular cat, Madam Deputy Speaker. We can either design a system whereby all products coming in or out of the United Kingdom have their carbon contribution assessed, or, if that is considered to be too complex, we can take baby steps. We can start off by applying a BCA towards the five or six most carbon-intensive industries and then take it from there. We would start with steel, fertiliser, petrochemicals, aluminium and energy. I will take two examples from that list by way of explanation.

First of all, with steel, an independent research project has been undertaken to assess the impact of a border adjustment tariff on the steel industry. Its conclusions were that were we to implement a BCA in the United Kingdom, it would increase the competitiveness of UK steel against many of its international competitors, at the same time as raising for the Treasury a tax windfall of between £270 million and £850 million if that carbon price was set at between £50 and £75 per tonne.

[James Cartlidge (South Suffolk) (Con)]

My hon. Friend is making an incredibly sophisticated argument. On international competition, can he tell us what other countries are doing? For example, is the EU considering something along these lines?

[Jerome Mayhew]

My hon. Friend has anticipated a point in my speech

that I was coming to in a few minutes. He is absolutely right that, just in July this year, the EU started a formal consultation on the implementation of the border carbon adjustment process for the entire European Union—and not just there, but he will have to wait a moment or two before I come on to the other exciting news.

Let us look at steel. We can get a huge amount of tax benefit, plus increased competition, that will give a fair, competitive advantage to our domestic steel.

Offshore Wind Transmission Connections

James Cartlidge Excerpts

Thursday 5th November 2020 Commons Chamber

[James Cartlidge (South Suffolk) (Con)]

I congratulate my hon. Friend on bringing forward this vital debate and on speaking so eloquently. I am proud to be one of the quintet to which he refers. Does he agree that what we all share is that our constituencies will see very significant infrastructure built in the years ahead to accommodate the new demand for offshore wind? We all support that, but is it not the case that bringing forward a new transmission method, whereby we have more co-ordinated wind farms, would not only reduce infrastructure pressure but sustainably develop the industry in the interests of UK plc?

[Duncan Baker]

My hon. Friend makes perhaps one of the most important points I am about to come on to. He is absolutely right that as our growth has become almost exponential, we have had to tackle the problem of infrastructure and find that better way. We will come on to that in a moment, but first of all I just want to highlight some of the problems that that presents for my communities and the communities of my hon. Friends the Members for Broadland and for South Suffolk.

I have said before that it is about the rate of growth. Because of the rate of growth at the moment, communities are blighted by the invasiveness of connecting these mammoth pieces of infrastructure to the transmission grid. I have said many times—for the record, I still believe it—that I am lucky enough to represent the most beautiful constituency in the country, which is my home of North Norfolk. An increasing number of offshore wind projects are being granted in similar locations within my constituency, breaking land and sharing cables routes that go through my countryside. My communities, such as Weybourne and Happisburgh, which I am sure some of my hon. Friends know well and have holidayed there, are seeing year after year of destruction to their communities as cable routes tear through villages, communities and farmland.

--- Later in debate ---

[Duncan Baker]

My hon. Friend has, as he always does so beautifully and succinctly hit the nail on the head. This is all about our wanting to promote, help, collaborate and work together on such an important issue. Ever since we have been involved in this whole discussion, we have come together with the industry, and worked with people from across the world, mainly in Europe, who have brought such brilliant ideas to the table. Only through collaboration and working with them do I even stand here today to try to present some of the issues and why it is so important to work together. I thank him enormously for that contribution.

[James Cartlidge]

As a supplementary to that intervention, will my hon. Friend give way?

[Duncan Baker]

Absolutely.

[James Cartlidge]

My hon. Friend is being very generous in taking interventions. I hope that he continues in that spirit—I am sure he will. My hon. Friend the Member for Waveney (Peter Aldous) is absolutely right to highlight the Policy Exchange report. I believe that it calls for a more holistic approach to planning the future of the North sea. Is that not in keeping with what we are asking for, which is a more co-ordinated approach? After all, not only is it in the interests of our communities to reduce infrastructure and build more of it out at sea, but it supports the industry, enabling it to grow more sustainably because it does not have to be bogged down with constant planning changes and all that comes with that.

[Duncan Baker]

Again, my hon. Friend, in his enthusiasm and excitement, is leaping ahead to the point in my speech that I am going to get to in just a moment, but he makes the point so passionately and enthusiastically. That is why I said at the beginning that he was part of the quintet. I feel almost guilty that my great friend the hon. Member for Waveney is not included in this quintet. I want to invite everybody to be part of this, because they have all been such champions to get to this important debate this evening. That point is absolutely right, and we will come to that point about co-ordination and integration point in one second.

As more and more developments are granted and our communities recover from one cable corridor and get back on their feet, another one comes along in close proximity. As my hon. Friend the Member for Broadland mentioned, even in such close proximity, they cross over the top of each other. I say to all hon. and right hon. Members in this place today that we cannot go on like this. There is a better way and it is only right that we urge the Government to address this problem. For months now, we have met with all manner of stakeholders, from the operators to the regulators, to those around the world who have helped us in our quest, and I do think that there is light at the end of the tunnel.

I am hugely grateful, as we all are here, to the Minister for giving up his time and for so willingly allowing us to lobby him. I have even disturbed him when he was eating his dinner in the Dining Room to talk about this. He has always been so engaging and has allowed me to shamelessly talk about this. I know that the Department for Business, Energy and Industrial Strategy is charging ahead with the offshore transmission network review, which we also welcome. What started off as a very fixed vision of an offshore ring main has in just a few months morphed and evolved into something probably best summarised by the National Grid ESO report published last month. The report’s findings outline many of our concerns, but, as in all governance, we should not just come up with a problem—we should offer a solution. There is something there: an integrated offshore network using high-voltage, direct current, or HVDC, technology that could save consumers approximately £6 billion by 2050. More than that, by using an integrated approach with the infrastructure out at sea, we reduce the environmental and social impacts of the point-to-point connections, such as cables and onshore landings, by about 50%.

[James Cartlidge]

My hon. Friend is being incredibly generous in giving way. Is not another big advantage that once we start building that offshore transmission network, it massively increases the capacity for exporting energy once a surplus is generated? We will come ever closer to linking through those big DC connectors into Europe through France.

[Duncan Baker]

Again, my hon. Friend hits such an important point. We touched on this at the very beginning when we talked about the ability to create energy security for ourselves. Where else do we produce a solution in which we could actually end up exporting energy? We will be a sovereign nation—we are a sovereign nation again—and the ability to have that security but export excess energy to other countries in Europe is almost a no-brainer. I know that he has very close links to the Chancellor, and I am sure that he, too, is watching this speech and that his eyes will light up at the potential export opportunity and income to the Treasury.

The integrated technology is reasonably available, but a key way to unleash the new system is through the use of HVDC circuit breakers. As we heard very recently, some of the technology is already available. Some is being developed. We are very much at the cusp of this.

--- Later in debate ---

[Duncan Baker]

My hon. Friend again makes an important point. Even in my short time in this place, it has been amazing to see how many people seem to want and agree on this, and to be pushing in the same direction. He is absolutely right—yes, there are people out there, and industry bodies, who do this day in, day out, who want us to push in this direction. Suddenly, for the first time, everyone is pushing at an open door and it is now incumbent on us to help try to deliver this, and that is part of the reason why we are here this evening.

I was trying to set out the point that if we ensure that the legislative and regulatory frameworks are right, using this new technology we will have a chance to link wind farms together and send current down new cabling straight into the locations that need it. No longer would it have to go through my communities and those of many other hon. Members. It would go directly to the locations that need it. What would that do? It would minimise the need for onshore infrastructure and trenching and disruption in our communities.

[James Cartlidge]

Is it not the case that this is precedented? There was a plan to build new power lines over the border from Scotland into England, but because of the damage that that would have done to the countryside, they built an under-sea link, known as the western link, down into north Wales and the rest of the grid. Does that not show that we can already deliver large amounts of power underneath the sea so that it is closer to the population centres where the demand exists?

[Duncan Baker]

My hon. Friend has again picked up on the fact that some of this technology is already out there. It may be in its infancy, but it is on the way. It is being developed and, in some parts of the country, it is even starting to be there already. We just need to unleash it for the rest of the country to take advantage of it.

We often lose sight of why we are even talking about this issue. The current piecemeal approach was appropriate in perhaps the early stages, but as we quadruple our wind generation and commit our energies to decarbonising, we have to look again, and in my case and those of my hon. Friend the Member for South Suffolk and other Members here, pay particular attention to our coastal communities, where such technology has been such an enormous problem.

--- Later in debate ---

[Kwasi Kwarteng]

I fully appreciate my hon. Friend’s point. We want to expedite this process, but we are talking about very expensive infrastructure and about redesigning or tweaking the regulatory framework in order to accommodate that investment. These things take time, but it is absolutely right for him and other MPs to hold the Government’s feet to the fire. That is entirely legitimate, and he has done a great job on that.

[James Cartlidge]

It is brilliant how the Minister is engaging with us on this subject. On timing, we feel that there is an issue about legislation, and if we are to reform the regulatory framework as quickly as we are pushing ahead with output targets, we may need legislation in the forthcoming Queen’s Speech. We are ready to help in any way we can to ensure that we get something ready quickly.

[Kwasi Kwarteng]

Perhaps regrettably, the subjects of the Queen’s Speech are beyond my pay grade, as people say, and I cannot possibly divulge what will be in the speech in that context, because frankly I do not know. However, my hon. Friend makes a serious point, and any subsequent legislation from BEIS, or that I try to introduce to the House, must consider the question of the regulatory regime and the environment through which we can develop the offshore network system. We are looking at that issue and taking it seriously.

Company Transparency (Carbon in Supply Chains) Bill

James Cartlidge Excerpts

2nd reading & 2nd reading: House of Commons
Friday 16th October 2020 Commons Chamber

[Karen Bradley]

My right hon. Friend is absolutely right. I can tell my hon. Friend the Member for Christchurch with absolute conviction that companies and boards are taking this matter seriously. Would anybody wish to be a board director signing off a report saying that they had taken no steps to eradicate modern slavery in their supply chain? I do not think any of us would want that.

I was thinking about what I could do usefully to assist the Government in dealing with carbon, because it is very easy for businesses to offshore carbon. I am not suggesting that UK businesses do that or choose to have products manufactured in high carbon-emitting countries to avoid carbon emission restrictions in the UK. It is absolutely right that this country was the first to legislate for net zero by 2050. That is fantastic, and this country should be incredibly proud of it. We are also hosting COP26, which again gives the UK an opportunity to show global leadership. The Prime Minister, in his recent address to the United Nations, said:

“we have a responsibility to our planet to lead in this way and to do this.”

I say to my right hon. Friend the Minister that this is a simple measure that companies understand. It would allow us to shine a light through supply chains and see what carbon emissions companies are offshoring and what they are doing to bring products for sale in the UK without giving proper regard to carbon emissions.

Now, I am a realist as well as a former Whip—

[James Cartlidge (South Suffolk) (Con)]

Same thing.

--- Later in debate ---

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

I thank my right hon. Friend the Member for Staffordshire Moorlands (Karen Bradley) for giving the House an opportunity to debate this extremely important issue. I am extremely happy to respond on behalf of the Government.

I wholeheartedly agree with my right hon. Friend on the importance of transparency in supply chains. I know the great work she did when she was an Under-Secretary in the Home Office, under the guidance of my right hon. Friend the Member for Maidenhead (Mrs May) who was, at the time, the Home Secretary. That work was signal legislation. It had a huge impact and I think it is having a huge impact. It was a remarkable piece of legislation and I commend them for that.

The importance of highlighting the transparency of carbon emissions in supply chains is also extremely important. My right hon. Friend the Member for Staffordshire Moorlands will know that I always had an open-door policy. She saw me a number of times before the lockdown—before the new normal, as she put it—and, as far as I was concerned, we had a very constructive discussion on this issue. I will just say to her that whatever happens in the next five minutes she should continue to engage with the Department and me on this extremely important issue. There may be a number of differences between her policies and ours, but I think there is a strong common strategic objective which we should pursue together. I am therefore very open to having more conversations with her.

More broadly, the House will recognise that the UK has long been a leader in the fight against climate change. We have managed to do that while achieving impressive rates of economic growth. Between 1990 and 2018, the UK managed to reduce carbon emissions by 43% while growing the economy by 75%. As that has happened, the UK has decarbonised its economy at the fastest rate of all G20 countries since 2000. Our carbon emissions today are at their lowest level since the 19th century. Once again, I pay tribute to my right hon. Friend the Member for Maidenhead. It was under her Administration that we passed the net zero carbon legislation last year which essentially made us world leaders, as my right hon. Friend the Member for Staffordshire Moorlands suggested.

[James Cartlidge]

I pay tribute to the work the Government are doing. Does the Minister not agree that the key is the development of offshore wind, particularly, of course, in East Anglia? Does he agree that a key issue is the ability to grow that sustainably by having a more joined-up infrastructure in wind farms?

[Kwasi Kwarteng]

After a number of years in the House, my hon. Friend shows himself very adept at crowbarring somewhat irrelevant issues, which are extremely pertinent to his constituency, into this narrow debate.

Oral Answers to Questions

James Cartlidge Excerpts

Tuesday 22nd October 2019 Commons Chamber

[Andrea Leadsom]

The hon. Gentleman will know that the gender pay gap is now the smallest it has ever been and that the Government have required reporting of the gender pay gap. Such transparency can partially solve the problem, but we are not resting there: we are doing as much as possible to get more women to become entrepreneurs and to help women to acquire the skills they need to lead some of our fantastic UK businesses.

[James Cartlidge (South Suffolk) (Con)]

11. What support her Department is providing to the offshore wind industry.

[Greg Hands (Chelsea and Fulham) (Con)]

22. What steps she is taking to support exports from the offshore wind sector.

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

As a result of the Government’s support, the UK is a world leader in offshore wind and a leader in tackling climate change. The third contracts for difference auction in 2019 delivered 5.5 GW of new offshore wind capacity, and the price was £39 per megawatt-hour, which was two thirds less than just four years ago. Our sector deal also paves the way to increase exports fivefold to £2.6 billion a year by 2030.

[James Cartlidge]

In East Anglia, we want to be champions of clean growth and are very proud that off our coast we are generating 52% of this country’s offshore wind output, but we want to go much further. Can my right hon. Friend assure me that the national grid will be able to keep pace and that we will support technology such as battery storage that will enable us to make the most of our natural asset?

[Kwasi Kwarteng]

My hon. Friend can rest assured that the Government continue to upgrade and invest in the electricity system to ensure that it can deliver additional generation. Of course, battery storage technology and other forms of storage are at the centre of any strategy to reach the net zero carbon target.

British Steel

James Cartlidge Excerpts

Tuesday 21st May 2019 Commons Chamber

[Andrew Stephenson]

The Government have been willing to act. We provided a £120 million bridging facility to the company earlier this month, which shows that we are fleet of foot and responsive to businesses that approach us with their concerns. I cannot comment on any current negotiations with this or any other company, but the Government are responsive, and, when it comes to this specific company, we have already shown our willingness to act, with that £120 million.

[James Cartlidge (South Suffolk) (Con)]

I was born in 1974: in my entire lifetime, unemployment has never been lower than it is today. Should we not remember that picture? It is based not on policies such as renationalisation but on maintaining pro-business policies that keep us attractive and open to inward investment.

[Andrew Stephenson]

I see the steel sector as fundamentally important to the British economy, and we are keen to do everything we can to support it. However, as I have already said and the House will know, we can only act within the strict bounds of what is legally possible under domestic and European law.

Oral Answers to Questions

James Cartlidge Excerpts

Tuesday 19th March 2019 Commons Chamber

[Claire Perry]

I will attempt to do that, Mr Speaker. The hon. Gentleman will know, of course, that all these technologies basically started off in the same place. Arguably, marine and tidal have received more innovation funding. They have not been able to demonstrate a cost reduction pathway commensurate with, for example, offshore wind, but he is right to say that we need to look at ways to try to bring these technologies forward and we will continue to do so.

[James Cartlidge (South Suffolk) (Con)]

9. What recent steps he has taken through the industrial strategy to increase the number of high-quality and well-paid jobs.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

The industrial strategy is based on increasing the number of high-quality and well-paid jobs because it invests in skills, infrastructure and innovation, as well as building long-term strategic partnerships with businesses through sector deals between the Government and industry.

[James Cartlidge]

As my hon. Friend will be aware, we often talk about our being the fifth largest economy, but by GDP per head we are ranked about 23rd or 24th, according to the International Monetary Fund and the World Bank. Does he agree that greater export penetration into growing markets overseas will help to raise that GDP per head and that an independent trade policy could boost that endeavour?

[Richard Harrington]

I agree with my hon. Friend. In his own constituency, six companies have received the Queen’s award for international trade. He understands the importance of exports. I agree that the UK needs to deploy all the tools at its disposal to support UK exporters, and a key part of that is tailoring our trade policy to the strengths and requirements of our economy and supporting the delivery of the industrial strategy.