British Steel: Negotiations

Jamie Stone Excerpts

Thursday 2nd February 2023 Commons Chamber

[Ms Ghani]

Not only are my hon. Friends the Members for Cleethorpes and for Scunthorpe huge champions for steel, but they have good relationships with Ministers, unions and workers locally. I could not be better supported, which is why I am committed to ensuring that I deliver the best package for the steel sector that I can.

My hon. Friend the Member for Gloucester (Richard Graham) talked about ministerial engagement with Jingye; I do not have all the dates in front of me, but there is engagement from the Secretary of State downwards, and of course I have meetings as well. Officials will be holding meetings with British Steel and others, too, so meetings do take place regularly. I will do my best to put together some more dates and write to him so that he knows the exact number of meetings taking place and at what level.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

The green freeport announcement for the Cromarty firth is very welcome. Our dream is to build floating offshore wind structures in the Cromarty firth, at the Nigg yard, where I once used to work. We want to build them out of British steel, not steel from any other country. Our hopes, wishes and aspirations are for that to happen, so may I wish the Government all the best in sorting this situation out? I do not want to see my constituents’ hopes dashed. We need that steel, including for the future of my constituency.

[Ms Ghani]

The hon. Member has hit on two of my favourite topics: freeports and the Maritime 2050 strategy, which I launched when I was the maritime Minister. He has all my support, and I am grateful for his support with ensuring that we get the best possible negotiations over the line as soon as we can. It is unfortunate that the discussions took place yesterday.

Family Businesses: Contribution to Local Communities

Jamie Stone Excerpts

Tuesday 20th December 2022 Westminster Hall

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

It is a pleasure to serve under your chairmanship, Mr Robertson.

As a Scot myself, let me say that it is a pleasure to hear a canny Scot—the hon. Member for Carlisle (John Stevenson)—taking us through this important subject; I always think a gentleman from Aberdeen would have a particularly good grasp on the vital need to make ends meet and run a tight ship.

I ran my family business for eight years, and my brother runs it now. It was a cheesemaking business that grew out of small dairy farm on the shores of the north Firth. For eight years, I had to juggle the profit and loss account and know how to do a VAT return—I had to do all that stuff, and it was invaluable experience. I will not go any further, because I cannot plug a family business too hard, but my brother continues in the same vein and I am very proud of him.

Let me expand on the points made by the hon. Member for Carlisle. The local contribution of family businesses is crucial. They tend to use the local bank: businesses in my constituency deposit large amounts of money in the local branch and help keep it open. They mostly use a local solicitor, and that equates to jobs in the local area. They use a local estate agent if the need arises, and local shops. They rely on their reputation, as the hon. Gentleman hinted at; local businesses do not want to make a mess of things locally, because it is on their own doorstep. Those are the key things they bring to their areas.

No local business will survive if it cannot balance the books and get it to work. That expertise, as the hon. Gentleman said, makes a huge local contribution, in terms of the chamber of commerce, local government and so on. As a passing aside—this is as much about my party as any other party in this place—we could do with more local businessmen in the House of Commons. If we go back 100 years, there was a time when many Members of the House of Commons had made their fortune and knew what they were talking about when it came to the big issues. That would be no bad thing. But that criticism is not directed at any one party; it includes mine.

[John Stevenson]

The hon. Gentleman makes a really interesting point about getting people with business experience here. Does he agree that, although traditionally important local businesspeople became members of the council, we do not see that today, and that is a big loss to us all?

[Jamie Stone]

That is a very apt point. I was elected to Ross and Cromarty District Council in 1986, which was a long time ago, and I have seen the sort of people who become members change dramatically in my lifetime. When it comes to local government finance, to have hard heads on the finance committee does not half help things.

Nurturing local businesses sits within a wider framework, which the hon. Gentleman touched on. He mentioned advice and access to finance as and when needed. Many of us feel that the day of the local bank manager has gone—the man or woman who could talk to the businessman and say, “Okay, that is a good idea. I’m willing to offer the following finance.”

In my part of the UK—my very far north constituency—a local business will do well and thrive if it has the support to which I alluded. We have an organisation called Highlands and Islands Enterprise, which was conceived by the Wilson Government in the 1960s, and did much good work over the years. I am sad to say that it is not what it was all those years ago. It is weaker, through no fault of its own; it is a small organisation and does not have the ability to offer advice and target finance as and when necessary. A lot of other infrastructure is required in our constituencies—in my own case, an airport, rail links and road links. A hardy perennial is the NHS, and I often raise the issue of maternity services. If any one of those vital key support networks is not up to standard, that sadly makes life harder for local businesses, particularly when it comes to recruitment or expansion.

I will close with an example. In Caithness we have an engineering firm called JGC Engineering, which is owned by the Campbell family. It is a third-generation firm that grew out of a blacksmith business, and it makes clever stainless steel stuff for the nuclear industry, Dounreay and others. As right hon. and hon. Members know, I have often talked about the potential of a space launch coming to my constituency—and I think it is just around the corner. A company such as JGC Engineering can use that but, if it does not have the infrastructure links, the back-up and so on, it will be harder for the company when the big day comes and it can go for those contracts. It is a basic point, and I make no apology for emphasising it again and again.

It remains only for me to wish all right hon. and hon. Members the compliments of the season, a very happy Christmas and a prosperous—in the business sense—new year.

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[Jamie Stone]

The hon. Member mentions the covid pandemic. It is interesting: during the pandemic, some businesses were really inventive and innovative. For instance, many food outlets offered a delivery service. I am sure my experience was exactly the same as that of many other hon. Members. It might be profitable for civil servants one day to take a look at some of those examples, and have a case study portfolio. We would be foolish to think that British inventiveness is dead.

[Seema Malhotra]

The hon. Member makes a powerful point. Indeed, what he says comes through in the data about how family businesses got through the pandemic. However, a recent survey has suggested that 80% of members of the Institute for Family Business were less confident going into this winter than they were last year, during the pandemic. Rising inflation is a threat, and there are concerns about the cost of living and consumer confidence. Clearly much, more support for businesses is needed. I am concerned that last week the Government slipped out in a written ministerial statement that they will be closing the “Help to Grow: Digital” programme, which was to give businesses support in adopting new technologies. They had all the warnings about the design and the roll-out, but they failed to listen to those important voices. That has cost businesses a year, and the possibility of moving forward in digital.

What needs to happen if we are to support family businesses at this time? First, we need to deliver macroeconomic stability, and respect our institutions, such as the Office for Budget Responsibility and the Bank of England. A key reason for the failure and devastating impact of the mini-Budget was the sidelining of our economic institutions. We need to make sure that we work with businesses to tackle the crises facing our country. Small Business Saturday has been mentioned; we all celebrated its 10th year this year, and I celebrate it every year.

We need to make importing and exporting easier; Brexit is not working as the Government promised. We need to address the inheritance challenges for family businesses, which have been mentioned—for instance, there should be clarity around rules, and support when there might be difficulties with succession planning. We should also have a proper industrial strategy, backed by ambitious investment, that makes decisions for the long term. It should be secured by an industrial strategy council that has a statutory footing.

Family businesses are not just our local small businesses; they are also key in manufacturing and other big sectors across the country. We need a proper plan for skills, which is an area where our growth and skills levy will bring the flexibility that is needed. We also need a plan for reform of business rates, because so many businesses are concerned about the unfairness of business rates. They should be reformed and changed, to level the playing field between bricks and mortar and online businesses.

This has been a fantastic debate. Labour has a long-term plan for growth, which would bring stability for businesses across the country and give our incredible family businesses the support that they need to grow and prosper. I look forward to the Minster’s response to this important debate, and to his saying how we can work together, across this House, to support our family businesses and the employment and prosperity that they bring.

Ban on Fracking for Shale Gas Bill

Jamie Stone Excerpts

Wednesday 19th October 2022 Commons Chamber

[Mr Rees-Mogg]

I am grateful to my hon. Friend. We are not pre-empting local consent in the letter that I sent out, so he is right.

I think that the time has come for me to return to my text—at least, for a moment or two. I do understand, as we have discussed, the concerns that people have about the safety of hydraulic fracturing. The excellent report by the Royal Society and the Royal Academy of Engineering from 2012 suggests that shale gas extraction can be managed safely and effectively in the United Kingdom owing to our high regulatory standards and many decades’ experience of extracting oil and gas both on and offshore. I return to the quotation from the right hon. Member for Doncaster North. As was reported in Wales Online on 25 September 2013, he said:

“Of course, there could be a role for it if it can meet safety concerns and the needs of local residents”.

So he should vote against his own motion, because he accepted that there should be a role for it.

The Government are absolutely determined to build our energy security. At a time when energy costs are a worry for many, I can say that we are starting from a tolerably good place. The United Kingdom is blessed with a healthy mix of different sources of energy, including a strong wind resource, one of the few significant oil and gas reserves in Europe, several gas import terminals and a well-managed electricity network. We have also made strong progress in building new renewable electricity generation such as offshore wind and plan to accelerate that further while also developing new nuclear capacity.

However, we cannot escape the fact that we are a nation with a structural reliance on gas. Even though we will be reducing our reliance on gas on the way to net zero—indeed, we may be using just a quarter of the gas that we use now by 2050—gas will remain the essential transition fuel.

Gas may have been out of sight and out of mind for some years. Perhaps we were not sufficiently prepared. However, we must not take our local gas supplies for granted. This year, the energy world changed. Putin’s war against Ukraine and the weaponising of gas supply to Europe has cut off a major source of supply to the European markets that we are connected to and ignited a global rush for gas resources. So while there is no immediate threat to UK supply, we cannot let our domestic production fade away and end up ever-more reliant on imports. No responsible Government would gamble with the gas supply. That is why, in the near term, our priority is keeping our domestic production online. The North Sea Transition Authority has launched the 33rd oil and gas licensing round, which is expected to deliver more than 100 new licences and put more UK gas on the grid. That is why we are discussing making the most of our shale gas resources.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I always try to be helpful. The way out of the dilemma, if you like, is green hydrogen. I repeat what I said some days ago in this place: there are advanced plans in my constituency and the north of Scotland to generate 50 MW of energy, and that will shortly go up to 300 MW. Again, I invite His Majesty’s Government to come and see our plans. It would be helpful to all concerned.

[Mr Rees-Mogg]

The hon. Gentleman’s intervention is indeed helpful. Green hydrogen is one of the most exciting technologies, and I am very enthusiastic about the opportunities there.

--- Later in debate ---

[Alan Brown]

I thank the right hon. Gentleman for that intervention, and for proving where he is on the whole climate change denial aspect. Studies and surveys show time and again that people are in favour of onshore wind, and we know that people are against fracking, so his argument is completely at odds with what the public think, and probably what his own constituents think.

On energy security and further reducing reliance on gas, the Government need to introduce a pricing mechanism for pumped storage hydro. Dispatchable energy is one way to hit peak demand. SSE already has all the permissions in place. The funding is there to build the Coire Glas scheme in the highlands. All that is needed is a funding mechanism. The predecessor of the Secretary of State said at an evidence session of the Business, Energy and Industrial Strategy Committee that the Government had not agreed a pricing mechanism and were not doing anything on it because it was a predominantly Scottish technology. I urge the new Secretary of State to get over that mindset, and to realise that pumped storage hydro is for the good of the grid and the good of the UK as a whole.

[Jamie Stone]

The bit of the jigsaw that would be helpful to both the Scottish and UK Governments is floating offshore wind production. We have the skills in Scotland for all parts of fabrication, and we have some of the mightiest oil platforms ever built. Surely that is the way forward. Finally, to repeat my point, electricity generated out at sea could be taken in and lead to the generation of green hydrogen.

[Alan Brown]

I agree wholeheartedly with the hon. Gentleman, and I recommend that he reads the report by Landfall Strategy Group, which illustrates that Scotland could have 385,000 jobs created in the future by developing a green hydrogen strategy. That would certainly benefit his constituency. I have been up to the port in Eigg, and it is fantastic to see what its plans are for the future.

There is so much more that the Government can do. Fracking is not required, and it is not the answer to reducing people’s energy bills. It certainly will not do anything to help the transition to net zero. It is opposed by the majority of the public. Seemingly just a few people in the Government are trying to force their will on the rest of Parliament, and possibly these communities.

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[Richard Graham (Gloucester) (Con)]

There is of course one great example of fracking in West Ham—fracking good football, which many of us watched at Upton Park and now at the new stadium.

Today’s is an interesting debate. Unfortunately for all the eloquence of the right hon. Member for Doncaster North (Edward Miliband), who made in many ways a very good speech about some of the hazards of fracking, it has been spoiled by the three and a half pages of the Order Paper that are all about a procedural takeover of this Chamber, which straightaway rules out voting for the Labour motion.

In an interesting contribution, the SNP spokesman, the hon. Member for Kilmarnock and Loudoun (Alan Brown), focused on the fact that in his view there is no support for fracking anywhere in the country. That view has been echoed by several Opposition speakers. Now, I do not support fracking. I do not think it should happen and I do not think it will happen, but this is a democracy, and it is perfectly possible that there are parts of the country—it might be South Thanet or Ashfield, although not the centre of the City of Gloucester—where people might support it. That is where the question that the right hon. Gentleman himself raised in 2013, and which the leader of the Liberal Democrats has previously said is vital, must be addressed: the question of local consent. I think that the Secretary of State is on a journey on this. He started, frankly, by assuming that local consent could be a consultation done by the fracking company with a few houses around where a fracking site might be. That was clearly not sustainable—it is not genuine consultation and does not take into account enough views.

My view, for what it is worth, is that there are two crucial elements of local consent, which I hope the Secretary of State will bring back to the House after his consultation. First, planning should be controlled locally and not by the inspectorate nationally. Secondly, local councils should be recognised as the expression of local democracy. That is absolutely at the core of compassionate Conservative values and is a view shared by many hon. Members on both sides of the House. A vote by a full council is the most important part. Along with those two considerations—I hope that the Whips are listening; they are talking among themselves—it is crucial that we have a free vote, on the Floor of the House, on the local consent definition, to give all hon. Members confidence that there will be no fracking in any constituency unless there is absolute local support.

[Jamie Stone]

I am sorry that there are no Scottish National party Members present, because it may interest the House that, when councils in Scotland make a planning decision—for instance, to refuse a wind farm application—it is quite frequently overturned by the Scottish Government. The rhetoric about local power can be hollow.

[Richard Graham]

The hon. Member makes a good point and it is disappointing, in a way, that SNP Members are not present to hear that, because they are huge supporters, in theory, of renewable energy.

A great deal that the Secretary of State has said and written about renewable energy, not least a very good article in The Guardian a week ago, is excellent and is something that we would all get behind, as would, I suspect, all Opposition Members. I would love him to do more to support tidal lagoons, which could have been done by now in Swansea; it seemed expensive at the time, but it is good value now. There is more that can be done on marine energy, which contributes to baseload. There are lots of other things, such as rules about onshore and floating offshore wind, about which he is absolutely on the right track and so are the Government. Hon. Members and the wider public should recognise that the Government are doing a huge amount on renewables, but the question of local consent on fracking is crucial.

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[Tim Farron (Westmorland and Lonsdale) (LD)]

I am grateful, Madam Deputy Speaker. Why on earth would the Government seek to perform another manifesto U-turn and support fracking—their amendment effectively lifts the moratorium on fracking? Two reasons are stated. One is an attempt to drive down energy prices, and the other is to tackle security of supply. Those are two massive issues. There is enormous energy poverty in my constituency in Cumbria, and everybody is rightly worried about the lack of energy security, particularly given the evil actions of President Putin. But if those were the real reasons, one would not pick fracking, and I am astounded and bemused as to why the Government have done so.

The right hon. Member for Spelthorne (Kwasi Kwarteng), former Chancellor of the Exchequer, stated that fracking would not materially affect the market price of gas. That is obvious, so that is pricing out the window. The fracking industry lobby group stated that shale gas would contribute less than 1% of Britain’s gas needs, and the British Geological Survey stated that shale gas under the United Kingdom is 15 times less in volume than originally thought. Fracking will have no impact on price, and it will do nothing meaningful when it comes to volume.

What fracking will do is add another fossil fuel into the mix at a time when we should be keeping all fossil fuels in the ground. Of all the threats that we face as a country and a community, climate change is undoubtedly the greatest, and fossil fuels should be kept in the ground. Fracking will also create massive seismic risk. The north-west of England, Cumbria and Lancashire, are two of the most geologically active places in the country. Fracking is madness. Opting for fracking is divisive and expensive, whereas renewables are popular and cheap.

[Jamie Stone]

I have gone on again and again about green energy and hydrogen creation. Hydrogen is green and clean, and we must get serious about this. Does my hon. Friend agree it is vital that all Governments in the United Kingdom work together fast, and now?

[Tim Farron]

Green hydrogen is an essential part of the mix, and I agree with my hon. Friend. If the Government were trying to change policy quickly to do something that would make a radical difference quickly, they would be opting for renewables. After Canada, the United Kingdom has the greatest tidal range on planet Earth, and yet we are tapping almost none of it. Why are we not investing in wind and solar and allowing farmers to diversify?

Shale Gas Extraction

Jamie Stone Excerpts

Thursday 22nd September 2022 Commons Chamber

[Mr Rees-Mogg]

I am not sure that, geologically speaking, Chequers is a suitable place for shale gas. The question from the hon. Member for Bristol South (Karin Smyth) was more apposite, because it may be more likely in my part of the world than in that of my right hon. Friend the Prime Minister.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

A few minutes ago, the Secretary of State mentioned hydrogen, which of course is the perfect answer, because when we burn it we get water. It is totally green and totally clean. There are well-developed plans for the production and storage of hydrogen based on the Cromarty Firth. May I cordially invite either the Secretary of State or one of his ministerial team to come north to my constituency to see what we are going to do?

[Mr Rees-Mogg]

I could not agree more with the hon. Gentleman. I think hydrogen is ultimately the silver bullet. We create it from renewable sources, because we have the wind power when people are not drawing on the electricity system; we use it as an effective battery and it can then, with some adjustments, be piped through to people’s houses to heat them during the winter. There are real opportunities with hydrogen—[Interruption.] We get some heckling from those on the socialist Front Bench, but I point out that everyone accepts that gas is a transition fuel. To get to where the hon. Gentleman wisely wishes us to go, we need more natural gas as the transition fuel, but he is right. I do not know that I can promise a visit in the short term, but in principle I would love to come, and my Ministers are like greyhounds in the slips waiting to get up to his constituency.

Action on Climate Change and Decarbonisation

Jamie Stone Excerpts

Tuesday 5th July 2022 Commons Chamber

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I thank the right hon. Member for Ludlow (Philip Dunne) for his thoughtful contribution. Coming from the highlands in the far north of Scotland, I have seen with my own eyes what climate change is doing in my lifetime. As a child, I took a huge interest in butterflies and recorded every butterfly I ever saw. I did not kill them; I recorded what they were. Today, we have species of butterfly in the highlands that we never saw there in the 1950s and 1960s, including the speckled wood and the orange tip, which are now quite common, but we are also seeing some species disappearing, particularly moths. That is because of global warming. It is there; it is real.

As is my wont, I shall make three points that are connected with the needs and requirements of my constituency. In recent days and weeks, there has been quite a lot of press coverage of a suggestion that, as and when a new wind farm is built, perhaps in England somewhere, the nearby households that might be affected would be given a grant of £350 per household. In my constituency in the highlands, we already have a large number of onshore wind farms, so my first plea, which is a pretty obvious one, is that if the Government ever did consider some sort of grant like that, it should also be afforded retrospectively to homes in the highlands and other parts of the UK where there are already wind farms. My part of the highlands is one of the coldest parts of the UK—the village of Altnaharra in Sutherland always has record low temperatures—and average incomes are not large. Transport and getting about are expensive, and given the inflationary situation and the cost of living, a wind farm payment like that would help families who are struggling to make ends meet.

I conclude my first point by saying that I am a great believer in the United Kingdom, and I believe that a family in the highlands, in Wales or in south-west England has the same rights as a family anywhere else. Therefore, if such payments were made, I think that in the interest of fairness, all parts of the UK should be considered, as should my suggestion about making retrospective payments.

I warmly encourage all Members to come and have their holidays in the highlands, but as they drive up the A9, as James Bond did in “Skyfall”, now and again they will come across a vast articulated lorry carrying part of a turbine up to where a wind farm is being constructed. Having those lorries going through the narrow villages of Sutherland, such as Golspie, Brora and Helmsdale, and negotiating the twisting roads is a problem, both for getting parts of the turbine where they are intended to go and because it discourages the local people.

My second point is an old favourite of mine. Recently, a man called Mr Frank Roach, who is a tremendous fellow for developing the use of railways, got a very large consignment of timber moved from Sutherland to markets further south on a very large train. For global warming and net zero, moving by rail makes the most enormous sense; Godspeed the day it is all electrified. My second plea, therefore, is that, where planning consent has been granted for a new wind farm, we should look quite hard at moving parts of wind turbines by rail and not by articulated lorry, consuming vast amounts of diesel as it burns its way up and down our roads. I earnestly recommend that officials in the Government contact Mr Frank Roach and talk to him, because it is really quite extraordinary the way he is getting us all in the north of Scotland thinking about the use of the railway.

My third point is that offshore wind has been proved by the construction of the Beatrice wind farm off the coast of Sutherland and Caithness. It works—it really does. It generates a huge amount of electricity. But there has been sensible talk by the Government and others—it has already been referred to in the debate—about establishing floating offshore wind farms.

Let me make an unashamed plug for the Cromarty Firth in my constituency, which was the great anchorage for the fleet in the first and second world wars because it is such a large and deep anchorage, safe from the weather. It is no accident that some of the mightiest oil production platforms ever built were built there. I strongly advocate to the Government that offshore floating wind systems could be constructed in the area. They could be constructed in Wales and elsewhere, too, but the main thing is that it would be nice to see them built in the United Kingdom. I hope—I realise that I am really chancing my arm—that the Government will look favourably on the bid by the Cromarty Firth to become a green freeport.

In concluding, I want to make two small points. First, this debate is very much in keeping with what we all hear from young people in schools. To use a German word, it is the Zeitgeist—the spirit of the times. Young people are only too well aware of the urgent need to get to net zero. They know all about climate change, and I find that hugely encouraging.

Secondly, I want to pick up on what I think the right hon. Member for Kingswood (Chris Skidmore) was saying, if I understood him correctly. A good number of years ago, I was a member of Ross and Cromarty District Council. We went for a courageous money spending scheme called care and repair, which was deliberately targeted at some of the coastal villages of Wester Ross—Gairloch, Applecross and places like that. We threw what was known as block B capital allocation at doing up houses. That meant that people had their homes insulated.

This was quite a long time ago, but the point was that the money we spent, which was a lot, went into the local businesses—the joiners, the people who installed the solar panels, and so on. They then invested in more equipment and, in turn, bought locally. That money was pumped into the local economy of a remote rural area. That was a financial benefit that we saw in Wester Ross all those years ago. So the money that is spent is spent locally. It boosts the local economy. One could say that the Chancellor’s measures during the pandemic had the same effect; they boosted the local economy. All I am saying is that it is a mistake to think of it as being money down the drain. It is money spent in the UK, to the good of the UK, and that money is recycled, eventually supports the shops and helps to establish the businesses, which can go on to win bigger and better contracts.

I will conclude my remarks with that, other than to say that it is really good to hear a debate of this quality in this place. I know it will strike a chord with my younger constituents. I intend to send a copy of the Hansard record of this debate to my secondary schools as I think they will be interested.

[Bim Afolami (Hitchin and Harpenden) (Con)]

I rise in response to the challenge from the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone): this debate has to be of such quality as he will send a copy of the Hansard to his young constituents. That puts me under pressure—

[Jamie Stone]

But you will rise to meet it.

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[Bim Afolami]

I thank the hon. Lady for her point. The intention behind subsidies—or, to use another word, support—for energy companies is to try to achieve what we want them to achieve. The investment allowances—there are various other things—should be tweaked or changed to incentivise more directly the sort of behaviours that we are talking about. On that, I support her.

[Jamie Stone]

rose—

[Bim Afolami]

I would like to continue, as I am being nodded at by various people because of the time, so I will make a little progress if I may.

We have heard a lot today about buildings and the need for a big insulation plan, for want of a better description. I strongly support that, but micro-measures to help individuals are also important. As Ronald Reagan said, the scariest words in the English language are: “I’m from the Government, and I’m here to help.” We need big, macro ideas. We need the big plans, but at the same time we need to incentivise individuals and families who want to help with the transition, do the right thing and make their own decisions to decarbonise. We can use things such as smart household systems to allow users to manage when to charge their electric cars, optimise when their heating comes on, or when to turn their fridge up.

We could also use market reforms to allow small energy suppliers to supply local areas. When there is a proposal for something in my constituency and I say to the energy company or small supplier, “Can you do something for the local village or local community so that they can benefit from this?”—whatever the form of energy is nearby—they say, “Look, the market isn’t really structured to allow that to happen.” That is a big problem, because it means that we are not getting the support of the local community or tapping into the latent desire to decarbonise—yes, working with Government at a macro level, but also at a micro level.

[Jamie Stone]

The hon. Member need have no fears: I shall put a large red star beside his contribution when I send off the copies of Hansard. If I pick him up right, surely the point is that anyone who thinks that the Beatrice wind farm, which I mentioned in my contribution, came into being without the expertise of oil firms, which have installed mighty things in the North sea, would be very much mistaken. These same oil firms that he is referring to will be crucial if we are to establish large-scale floating offshore wind energy generation.

[Bim Afolami]

I thank the hon. Gentleman for that point; I could not agree more. It is a really difficult point to make, because it seems counter-intuitive, but we will need the major energy companies to do their bit and use what they have to achieve what we all agree we need to achieve, which is faster decarbonisation. We need macro measures from Government and we need to work much harder on buildings and insulation, but we also need micro measures to help individuals and small communities invest in decarbonisation and make those decisions themselves.

I commend these estimates. I am sure the money will be spent wisely, particularly if the Government have listened to the quality of this debate.

Oral Answers to Questions

Jamie Stone Excerpts

Tuesday 7th June 2022 Commons Chamber

[George Freeman]

I congratulate my hon. Friend on being such an advocate for her patch. I completely agree that the location of the spherical tokamak plant is critical to our future fusion industry ambitions. Some 15 sites across the UK have applied to host STEP, and the UKAEA has shortlisted five: Ardeer in Ayrshire, Goole in the East Riding of Yorkshire, Moorside in Cumbria, Severn Edge in Gloucestershire and West Burton in Nottinghamshire. The UKAEA has now completed a detailed analysis of those sites and has submitted its recommendation to the Secretary of State, who will make a final decision and announcement by the end of the year.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Dounreay in Caithness in my constituency was in the 1950s the site of the UK’s first nuclear reactor. The nuclear industry did a very great deal to provide local employment and to halt the curse of the highlands, namely depopulation. Today, we have a licensed site, we have a willing and skilled workforce and we have a local population who support the nuclear industry. Will the Secretary of State or the Minister talk to the Scottish Government, who have not ruled out nuclear fusion, about the potential for developing nuclear fusion at a site such as Dounreay?

[George Freeman]

The hon. Gentleman makes an important point. I congratulate him on his enlightened stance: he is supportive of the UK and the Scottish nuclear industry—a position we all rather wish the Scottish nationalists would take more widely. I have regular meetings with the Scottish Ministers for science, technology and innovation. This Government are very supportive of that cluster; if only the Scottish nationalists were.

Oral Answers to Questions

Jamie Stone Excerpts

Tuesday 29th March 2022 Commons Chamber

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

In the past, the Nigg oil fabrication facility in Easter Ross built some of the mightiest production platforms for the UK—I worked in that yard. Today, wind turbines for both onshore and offshore power seem to be built anywhere but in Scotland. The firm that owns the Nigg yard announced plans almost four months to get into fabrication, but since then we have not heard a lot. I do not expect the Minister to have the answer at his fingertips, but will he ask his Department to see how progress is- coming along on that front, because it is crucial for the local workforce?

[Lee Rowley]

I would be very happy to speak to the Department and come back to the hon. Gentleman on that.

Oral Answers to Questions

Jamie Stone Excerpts

Tuesday 22nd February 2022 Commons Chamber

[Mr Speaker]

I call Tim Loughton—not here.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Onshore and offshore, my constituency has more wind turbines than I can shake a stick at. Does the Minister not agree that we should generate hydrogen where the electricity is being made? Perhaps if he came to have a look at the wind turbines in my constituency, he would get the same delicious scones that I promised the Prime Minister when he comes to see the first space launch.

[Greg Hands]

I thank the hon. Gentleman for that question; I think I have an existing commitment to go to his constituency. In fact, in my five months in this job, I think I have been four times to Scotland, and one of those visits was to the Whitelee wind farm, just south of Glasgow, to look at precisely what he mentioned . It is the UK’s largest onshore wind farm, which generates extra energy to produce hydrogen on-site, which will hopefully power Glasgow’s buses and dustcart fleet for years to come.

Small Modular Reactors and Energy Security

Jamie Stone Excerpts

Wednesday 19th January 2022 Westminster Hall

[Virginia Crosbie]

I thank my right hon. Friend for his insightful intervention. He has been a vigorous champion of the nuclear sector, particularly in Wales, and he makes an important point. In the ’50s and ’60s we led the way with nuclear and nuclear export. This is an opportunity for us to get back to where we were, leading in a sector that is so vital for our energy security. That is very important for jobs, and it will create skilled jobs in my constituency and across Wales and the UK.

My third point is about co-locating and bringing together clean power with the industries that need it. That is an opportunity to bring high-skilled jobs from other industries. Such co-location is not new; the original Wylfa power station was established to provide power to Anglesey Aluminium.

Since we last debated nuclear financing, there have been major developments in the delivery of SMRs in the UK and in global energy security. The past months have seen an unprecedented rise in wholesale energy prices during winter, in part due to Russia’s aggressive behaviour towards its neighbour, Ukraine. That follows the issue in September with the Kent interconnector. I remind hon. Members that a fire at the Kent interconnector, which connects the UK with French power systems, led to soaring energy prices in the UK. We usually import 3 GW of power from France—enough to supply 3 million homes. That fire showed how fragile our energy security is when we rely on other countries for production.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

The hon. Member is making an excellent speech. Caithness is one of the most nuclear-sympathetic parts of the United Kingdom. Dounreay, Britain’s first nuclear reactor, was constructed there. Even today, some 1,500 jobs directly and 500 in the supply chain rest on the nuclear industry. When the wind is blowing hard and renewables are working, units of this nature can create hydrogen, which will help us to deal with the problem that the hon. Member describes.

--- Later in debate ---

[Jamie Stone]

In the same spirit, I extend an invitation to the Minister: if he would care to come north to Caithness, he would receive a cordial welcome from the trade council and civic leaders.

[Greg Hands]

I welcome that intervention. I am very happy to offer the hon. Gentleman a deal: if he can persuade his party to become more pro-nuclear, he will ease the path of a visit to the very northernmost part of mainland Scotland. If the Liberal Democrats will vote for the Nuclear Energy (Financing) Bill when it returns to the House of Commons, I will come to Caithness and Sutherland in due course.

Good points about the exportability of this technology were also raised by the former Secretary of State for Wales, my right hon. Friend the Member for Vale of Glamorgan (Alun Cairns), and by my hon. Friend the Member for Ynys Môn—points that are very much true. As my hon. Friend said, in November last year, the Government announced £210 million for Rolls-Royce SMR Ltd to further develop the design for one of the world’s first small modular reactor designs. Funding for that project is matched by private investment, with the design potentially capable of deployment in the UK in the early 2030s. We recognise the significant export potential of the Rolls-Royce SMR technology, which has already generated considerable overseas interest.

My Department and my former Department, the Department for International Trade, are working closely with the company to support it into overseas markets, and UK Export Finance has indicated its willingness to provide cover to Rolls-Royce, subject to the normal lending criteria being met. As my hon. Friend the Member for Ynys Môn pointed out, this funding is part of the advanced nuclear fund—a significant Government investment of up to £385 million to develop a domestic SMR design and demonstrate innovative advanced modular reactors, also by the early 2030s.

In addition to investment in SMRs, the Government plan to invest in the advanced modular reactor research, development and demonstration programme, which aims to enable an AMR demonstration by the early 2030s. Based on our own analysis as well as other public reports, the focus of the programme is on high-temperature gas reactors, which I announced at the Nuclear Industry Association’s conference in November. In addition to low-carbon electricity generation, HTGRs have the potential to produce very high-temperature heat, which could be used for increasingly efficient production of low-carbon hydrogen—as has already been referred to by various Members—to help decarbonise industrial processed heat, or even for synthetic fuel production.

Furthermore, the Government have recently launched the £120 million future nuclear enabling fund, which has already been referred to, as virtually everything else has, by my hon. Friend the Member for Ynys Môn. She is so on top of nuclear—so well versed—that I sometimes worry about my own job: my hon. Friend knows as much about nuclear as I do. The FNEF aims to address barriers to future new nuclear and help companies to reduce project risks, so that they are better positioned for future investment decisions.

In answer to my hon. Friend’s question about allowing the licensing and siting of the Rolls-Royce SMR to proceed in parallel, while there are some steps that logically must be completed before others can begin in a nuclear deployment project, companies are not, of course, prevented by law or policy from—for example—applying for a nuclear site licence and development consent order in parallel. Those are commercial decisions, as companies are best placed to decide how and when to enter regulatory projects to best support their project.

I was pleased that Parliament voted to back the Nuclear Energy (Financing) Bill last week. As my hon. Friend has pointed out, classifying nuclear as green investment in the UK taxonomy would allow billions to flow into this essential technology. That is the basis behind the Nuclear Energy (Financing) Bill—to bring in private sector institutional financing. As the Prime Minister set out to the CBI, we intend to consult on including nuclear in the draft technical standards for our own UK green taxonomy. Further details will be released when the consultation is published.

To conclude, the Government fully support the development of small modular reactors and the exciting opportunities, both in terms of energy security and of reaching net zero, that new nuclear can offer the UK. We have demonstrated our serious interest in building nuclear capacity in the UK, and over the past year we have made decisions that boost investors’ and businesses’ confidence in investing in UK nuclear. From the energy White Paper to our landmark net zero strategy and funding for small modular reactors, we have shown our dedication to net zero and nuclear. I once again congratulate my hon. Friend the Member for Ynys Môn on an excellent debate.

Question put and agreed to.

Gas and Electricity Costs

Jamie Stone Excerpts

Tuesday 18th January 2022 Westminster Hall

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I beg to move,

That this House has considered the cost of gas and electricity.

It is a pleasure to serve under your chairmanship, Sir Edward. Obviously, the debate is very dear to my heart, because I represent the part of the United Kingdom that every year seems to have the lowest temperature recorded in any community: the village of Altnaharra in Sutherland.

Much of what I am about say is blindingly obvious, but I want to roll out a few statistics. It is a fact that household electricity and gas bills are predicted to rise in April by around 45%. That would see the price cap reach £2,000 a year, or £165 a month. I would suggest that without Government intervention, this rise could take the total number of households in fuel poverty to no less than 6 million. The high level of global gas prices affects the whole economy; it does not impact only on energy retailers, suppliers and household customers. It could mean between a 1% and 2% inflationary increase across the whole UK economy, which would result in more than £10 billion a year in additional Government costs from indexing debt to pensions, salaries and other payments.

Some 33% of households in rural Scotland are in extreme poverty, with a further 9% in ordinary fuel poverty. That makes a total of 42%. The figure is even more acute in the far north and my constituency, where, as I have already said, temperatures are regularly the coldest in the United Kingdom.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

I congratulate the hon. Gentleman on securing the debate. He is absolutely right about Altnaharra, and the fuel poverty that is shared by his constituency and mine. The UK Government talk about levelling up, but one of the best things that could be done in that regard would be to tackle the differences and inequities between distribution costs of the electricity network, as well as the transmission costs to generate. I note that our part of the world is a net generator and contributor of electricity, particularly to the grid.

[Jamie Stone]

My highland colleague makes a sage and wise point. [Interruption.]—with all due reference to my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael).

The figure that I have outlined compares with 24% of households living in poverty in the rest of Scotland, which is still a high figure. I believe that fuel poverty is a clear priority issue for remote rural constituencies but, overall, I would suggest that is an unacceptable blight across society.

[Wendy Chamberlain (North East Fife) (LD)]

My hon. Friend has talked eloquently about the hardship of fuel poverty experienced in rural Scotland, and particularly in the highlands. I want to talk about disabled people, who are also disproportionately suffering as a result of the energy crisis. They have higher energy costs because of the equipment that they often need for assisted living. Just living from day to day is simply more expensive for them, so does my hon. Friend agree that the Government should be putting in place additional support—similar to the warm home discount—for families of disabled children and for disabled people of working age?

[Jamie Stone]

My hon. Friend must be clairvoyant, because she has anticipated a point that I shall make in due course. I thank her for her intervention.

There are two major contributory factors to fuel poverty in Caithness, Sutherland and Easter Ross: the absence of mains gas supply to many properties, and the comparative price of electricity, which costs four to five times more than mains gas and domestic oil per unit. Both of these power sources are often used to heat things that we rely on—for instance, water. Rural and remote households are more exposed to rising household costs due to paying an extra premium.

I suggest that energy policy in the UK is fundamentally broken. Consider this: the highlands and islands, to which the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) referred, produce more than 300% of their electricity demand from renewable sources—we produce three times more than we use. We export the rest to other parts of the UK, but as the hon. Member pointed out, a highland or island household pays more per unit of electricity due to the transmission charging regime, which pushes up energy bills even further. This is fundamentally wrong. Root and branch reform is required to design a UK energy policy that is fit for the 21st century, and that, most importantly, puts consumers at its heart.

Turning to business, energy price hikes are having a serious impact on the viability of businesses in the far north and, indeed, across the UK. I will quote two examples. Sitting at the back of the Public Gallery, I witness today Mr Andrew Mackay, my constituent. He and his brother own three hotels in Caithness known as the Caithness Collection—excellent hotels. They are facing an annual increase in electricity costs from almost £77,000 to—can Members believe?—nearly £130,000, which is a 70% rise.

Also in Caithness, we have a local engineering company, JGC Engineering, which is owned by the Campbell family and makes excellent pieces of stainless steel for the nuclear and other industries. The company’s annual electricity bill runs into six figures. The owners have been forced—they had no choice; it was the best deal they could get—to sign a deal that, believe it or not, means an 80% increase in costs starting in March 2022. To enable sustainable economic growth and—to borrow an expression from Her Majesty’s Government—to level up the United Kingdom, it is imperative that measures are put in place to protect consumers and businesses from crippling energy costs.

Looking ahead at the UK’s future energy mix, it is crucial that investment in renewables is kept up to pace. However, I believe that the Government can also look seriously at novel solutions to age-old problems. In terms of nuclear power, small modular reactors, such as those being designed by Rolls-Royce, could provide districts with heating and electricity in areas where it is costly to receive utilities on the national grid.

This kind of out-of-the-box thinking could reduce the cost of gas and electricity, reduce reliance on fossil fuels, and ensure the economic future of areas that consider themselves left behind, such as Caithness.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Is there an estimated cost for these modular reactors? How much will it cost overall? Is there a policy for how nuclear waste will be dealt with?

[Jamie Stone]

A conversation with Rolls-Royce would be rewarding for the hon. Member. It is working up the proposals, but has some interesting thinking; I think we would be unwise not to take a good look at it.

Solutions do not stop there. Governments could soften the impact on consumers in the short term by providing loans up front to energy suppliers to cover the costs incurred from the significant rise in global wholesale prices for gas. I suggest constructively to the Minister that the Government could remove VAT from energy bills, or double and extend the warm home discount, taking £300 a year off the heating bills of around 7.5 million vulnerable households.

Her Majesty’s Government could introduce a new social tariff for those in fuel poverty—perhaps double the winter fuel allowance, giving up to £600 a year to 11.3 million elderly pensioners who currently face a £208 real-terms cut to their state pension next year, due to the Government’s decision to scrap the triple lock.

The Government could also implement a one-off windfall tax on oil and gas companies’ super-profits—the extra profits. This would not impact companies’ usual profits and thereby keep jobs secure, and would target the unprecedented extra profits that they have made in the last six months.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

Does my hon. Friend agree there is also a role for the energy companies in all this? I suspect that he will have as many constituents as I do who, over the years, in order to compensate for the lack of access to mains gas, have taken other options, including storage heating and going on to tariffs such as “total heating total control”, which is now being used by SSE to keep their customers prisoner because it is impossible for them to switch. Does he join me in calling on companies such as SSE to treat their customers, who have been loyal for generations across the highlands and islands, rather better than that?

[Jamie Stone]

I have no hesitation in joining my right hon. Friend in making that plea. His points are well made.

I hope that in getting this debate under way today, we start a dialogue with energy companies, Her Majesty’s Government and all concerned parties—not least those people who stand to be faced with crippling debts. I think of a young mother I know, who lives in the village of Balintore in my constituency. She tells me that she has to budget absolutely to balance the books; it is just a few pounds between surviving and going into the red. She says to me that if the electricity bill or the cost of diesel for her car goes up, she is in trouble. To square the books, she would then have to cut down on her expenditure. In turn, that hits the local shops, the local chemist and so on, in the seaboard villages of my constituency. I hope there will be a dialogue.

There have been, in what I have said, a lot of “coulds”, “shoulds” and “woulds”. What we really need from the Government is real, urgent action. I would suggest that they have failed millions of hard-working families and thousands of pensioners, at a time when energy bills are going through the roof. At this stage, the nation is plummeting further into a fuel poverty crisis. As far as I can see, there seem to be no plans to tackle it, but I await the Minister’s comments with great interest and expectation. At the end of the day, old people, single parents and people on very limited incomes are wondering how the heck they will get through the next period, because we all dread getting into debt.

Members from across the House have put forward suggestions to the Government on how to stop this disaster in its tracks. I respectfully suggest to Her Majesty’s Government that we stop the dither and delay, get talking, and do something about it.

[Craig Mackinlay (South Thanet) (Con)]

I thank the hon. Gentleman for securing this debate. It is a fact that all economies are facing an energy price rise, for international reasons. The hon. Member has not mentioned gas at all. No matter anyone’s views on gas, it will be part of our energy mix for a generation. I wonder if he might agree that we have been uniquely silly in diminishing our storage capacity, with the closure of the Rough field. Mother nature has given us a gift in this country: a lot of gas. No matter anyone’s view on the path to net zero, a super report by the House of Commons Library charts the reduction in our gas use over the years, and shows that we have reduced our gas capacity and production even faster, leading to imports. Does the hon. Member agree that it might be sensible to increase our domestic supply while gas is such an important part of our energy mix? That might give a longer-term solution to price volatility.

[Jamie Stone]

I will conclude in just a moment or two. I thank the hon. Member for his intervention. The bottom line is that if we care about the people I have mentioned, who are petrified of getting into fuel poverty, then we must look at all possible solutions. There will be a mix to the answer. I would not rule out anything that the hon. Member said. We will take a look at it.

Of course, if we get hydrogen production right, that also makes enormous sense, because it is absolutely neutral for the environment. Hydrogen is a gas, and we should be thinking about that as a possibility. I conclude my remarks there, Sir Edward. Thank you for your forbearance.

--- Later in debate ---

[Jamie Stone]

There is an economic point here. The money that the hon. Gentleman is talking about, whichever level of Government is giving it to individuals or businesses to see them through all of this, is money that, as well as giving assurance and comfort, ultimately will be spent in shops and other businesses, and will boost local economies. I might suggest that the Government can then recoup that through corporation tax and other means.

[Alan Brown]

I agree. People on lower incomes are the ones who spend all of their disposable income, and they spend it in local businesses and support local businesses. For families in Scotland, there is also the game-changing £20 a week Scottish child payment. As my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) said, that compares with the heartless £20 a week cut to universal credit by the UK Government. Again, that universal credit uplift was spent in local businesses. It was direct support.

It is absurd that Scotland has paid £375 billion of oil and gas revenues to the Exchequer and that it has been squandered over the years. There should have been an oil and gas fund, which would have provided an additional buffer that could have been used in this time of need. It is time that the UK Government take short-term action to deal with the cost of living crisis and energy crisis, but there needs to be a change in long-term planning, for a fair and equitable energy policy. Perhaps that is why Scotland needs independence, so that we can do things differently.