Oral Answers to Questions

Jesse Norman Excerpts

Tuesday 31st January 2017 Commons Chamber

[Mr Nigel Evans (Ribble Valley) (Con)]

11. What recent assessment he has made of the international competitiveness of the UK aerospace.

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

The UK has the second largest aerospace industry worldwide, with strengths in some of the most technologically advanced parts of aircraft—wings, engines and advanced systems. The sector has annual turnover of around £30 billion and exports of some £25 billion a year.

[Fiona Bruce]

Leading aerospace part designer and manufacturer Senior Aerospace Bird Bellows in my constituency speaks positively of the support from the Government’s Sharing in Growth scheme, which it says will be key in helping the company to realise its ambitious growth strategy. Will the Minister join me in congratulating the company on its plans and consider visiting its factory in Congleton to learn more?

[Jesse Norman]

I absolutely join my hon. Friend in congratulating the company. I have visited companies benefiting from the Sharing in Growth programme and I would be delighted to go to see the one in her constituency.

[Kelly Tolhurst]

Rochester and Strood has a proud aerospace history, having had the Short Brothers iconic flying boats. It is now home to Aeromet, an important SME that is part of the supply chain for Airbus. Will my hon. Friend outline how his Department will ensure that the UK aerospace supply chain will continue to have unhindered access to major opportunities in our manufacturing industries?

[Jesse Norman]

As my hon. Friend will know, the aerospace growth partnership has been a great success, with the Government working closely with industry. As part of that, the Government have made a joint funding commitment with the industry for nearly £4 billion of aerospace research between 2013 and 2026, so I think that the future is relatively well funded.

[Drew Hendry]

What guarantees will the Minister give to ADS, the group representing the UK aerospace industry, which states that it must have

“Access to vital space programmes initiated by the European Space Agency, but funded by specific EU programmes”?

[Jesse Norman]

My right hon. Friend the Secretary of State has already talked about the importance of our satellite programmes in this country. The European Space Agency sits outside the EU structure, so it will be handled separately from EU discussions.

[Mr Nigel Evans]

Does my hon. Friend see the signing of the contract in Turkey last week by the United Kingdom and Turkey on the new Turkish fighter jet as an endorsement of the skills and expertise of BAE Systems in this country, and does he foresee future deals with other countries?

[Jesse Norman]

I think that everyone concerned with the aerospace sector will welcome that transaction. It shows how BAE continues to be a global leader in this sector, and we must hope that it goes on to do further such work around the world.

[Hannah Bardell (Livingston) (SNP)]

In the last two years, Glasgow has built more satellites than any other city in Europe, with 100 private and public sector organisations such as Clyde Space contributing more than £130 million to the Scottish economy. This is much credited to Scotland’s long-standing strength in engineering, science and technology. As we face the prospect of a hard Tory Brexit, will the Minister make a commitment here and now that Scotland’s aerospace sector will be protected and that there will be no detriment to this vital sector and its many jobs?

[Jesse Norman]

The success of Scotland has been part of a wider UK success. I absolutely recognise the point that the hon. Lady mentions. I was in Glasgow only last week, talking to high-tech companies at Glasgow University, and I can absolutely vouch for their quality.

[Mr Steve Baker (Wycombe) (Con)]

In my former career as an aerospace engineer—[Hon. Members: “Hear, hear.”] They have not heard the question yet, Mr Speaker. In that former career, I saw several examples of our aerospace competitiveness being diminished by the political enforcement of collaboration in engineering across Europe. Will the Minister ensure that future collaboration across Europe on aerospace happens where that is productive, not where it suits geopolitical objectives?

[Jesse Norman]

I admire the subtle and unobtrusive way in which my hon. Friend smuggled his personal experience into that question. I assure him that we will continue to take a thoroughly co-operative approach with European colleagues.

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

The recent “Steel 2020” report noted that steel is a key foundation industry for the UK that underpins our aerospace and automotive sectors, as well as many others. However, in the Government’s 130-page industrial strategy Green Paper, steel is mentioned just once. Can the Minister explain why he is neglecting this important industry?

[Jesse Norman]

I am surprised that the hon. Lady says that because the Government have had very productive discussions with the steel industry.

[James Cleverly (Braintree) (Con)]

3. What steps he is taking to support the self-employed.

--- Later in debate ---

[Tim Loughton (East Worthing and Shoreham) (Con)]

8. What assessment he has made of the potential contribution of power generated by tidal lagoons to UK energy provision.

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

The Hendry review published its report earlier this month. The Government are considering its recommendations and the issues that would arise from a broader lagoon programme, including the potential contribution of power generated by tidal lagoons. The Government will publish their response to the Hendry review in due course.

[Tim Loughton]

As an MP with a coastal constituency, I am a big fan of tidal power, and following the Hendry review it has been estimated that building some 10 tidal lagoon power stations by 2030 could generate 10% of our electricity requirements. So when considering the economics of the Swansea Bay scheme, will the Minister take into account the wider benefits for British manufacturing and technology of becoming a world leader in this clean technology?

[Jesse Norman]

My hon. Friend is absolutely right to recognise that the question must be considered in the round and not merely on the merits or no of the Swansea Bay scheme. It is the Government’s job to consider the advantages and disadvantages of tidal lagoons as a whole and to take a decision that includes not merely the financial elements, but also environmental elements, the capacity to generate power as part of a wider energy mix and ancillary elements.

[Mr Speaker]

But purely in relation to tidal lagoons; we are not talking about apprenticeships more widely or seeking to shoehorn a personal interest into a question to which it does not ordinarily apply. But the Minister is a philosopher and dextrous to a fault, so I am sure he will cope.

[Jesse Norman]

Heaven forfend, Mr Speaker, that I should entertain so unworthy a suspicion as to think the hon. Member for Huddersfield (Mr Sheerman) might have smuggled some entirely unrelated question into a question on tidal lagoons. May I simply reassure him that skills remain at the centre of the Government’s concerns, and that is why they feature so prominently in the industrial strategy?

[Mr Speaker]

Marvellous.

[Michael Fabricant (Lichfield) (Con)]

The Minister is quite right to say that he will analyse this in the round, because while I think many of us will recognise the economic advantages, particularly over a long period such as 100 to 150 years, the environmental impact will be considerable. Can he perhaps amplify what sort of things he will be looking at, including how tidal lagoons affect fish life, marine life and bird life?

[Jesse Norman]

It is of course true that, as well as the economic case and value for money issues that that raises, there will be wider consideration of environmental impacts, but in relation not just to individual schemes as they can be understood now, but to the way in which they might concatenate across a programme of tidal lagoons.

[Danny Kinahan (South Antrim) (UUP)]

The Government have been very good at supporting the tidal stream generator in Portaferry in Northern Ireland. Can we ensure that we make the most of what is learned from tidal power in devolved Governments and the rest of the UK—not the events in Northern Ireland, but what we generate?

[Jesse Norman]

One hesitates to remind the hon. Gentleman that this is a different matter and a different technology from tidal lagoons, but I think he can take it as read that officials and Ministers will be thinking carefully about all the relevant precedents that might bear on this decision.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

The question was about the potential contribution of power generated by tidal lagoons to UK energy provision. My understanding is that a limited deployment of tidal lagoons in the Severn estuary alone would contribute about 8% or more of UK electricity demand. Can the Minister tell me if there is any other technology that can provide that sort of power in one location—as a clue, perhaps I can suggest to him that Hinkley C running full tilt without any outages is estimated to contribute about 7% to UK energy requirements?

[Jesse Norman]

I dare to suggest that the hon. Gentleman is misinformed. It is not quite clear what he thinks of as the lagoons in the scheme he describes, but Hinkley Point will be a bigger generator than, certainly, the first round of lagoons, as well as being a higher load and more reliable.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

9. What progress his Department is making on implementing the recommendations of the Hendry review on tidal energy.

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

The issues considered by the Hendry review are complex, and the Government will be demanding a period of time to assess the recommendations and determine what decision is in the best interests of UK energy consumers. I have already said that we will not be dragging our heels on this, and we will not do so.

[Stephen Doughty]

There is huge potential for tidal energy not only in the Swansea scheme but along the south Wales coast and the Severn estuary and along the north Wales coast. However, I am hearing worrying things about the Department dragging its heels on this. Will the Minister assure me that there will be strong ministerial leadership to take the recommendations forward and to get on with the Swansea scheme and others?

[Jesse Norman]

I am surprised that the hon. Gentleman would say that, given that it was the Department’s expectation that the report might be published before Christmas and that it was in fact published only two or three weeks ago. There is no suggestion that the Department is dragging its heels, and nor will we do so, but we will, in the public interest, give the report proper, thorough consideration on value-for-money and other grounds.

[Byron Davies (Gower) (Con)]

In a previous answer, the Minister referred to advantages and disadvantages. Does he agree that the Swansea Bay tidal lagoon would not only meet energy needs but provide huge levels of investment in jobs in my constituency and throughout the region? As the Hendry report implies, it could put Wales at the forefront of developing a world-first technology.

[Jesse Norman]

I salute my colleague’s proper concern for support and investment in his constituency; that is absolutely right. The wider implications are being considered by the Government, and I remind him that the Hendry review asked for the issues to be considered specifically in the context of power generation, so those things go alongside the wider consideration we are giving to the report.

[Jim Shannon (Strangford) (DUP)]

The Hendry report refers to tidal energy. The Minister will know that the first large-scale tidal steam generator in Northern Ireland, in Strangford Lough, was four times more powerful than any other in the whole world at the time. What consideration will he give to ensuring that the energy being produced in Strangford Lough can be utilised for the benefit of the whole of Northern Ireland?

[Jesse Norman]

As I have indicated in a separate debate with the hon. Gentleman, that is a different, although related, technology. It was funded in part by the Government and has produced interesting results. This is a matter for close consideration by officials and we will continue to reflect on the matter. If he wishes to write to me further, I would be delighted to take a letter.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

One of the core objectives of the draft industrial strategy is to rebalance the UK economy, with engineering, construction and manufacturing making a larger contribution to economic growth. Does the Minister agree that if we are to achieve that objective, we will need to invest in major infrastructure projects such as the tidal lagoon?

[Jesse Norman]

I absolutely share my right hon. Friend’s view that major infrastructure investment is an important part, although only a part, of the wider overall investment that can be made in this country as part of the industrial strategy. He is right to suggest that those wider considerations must be balanced by a tempered assessment of value for money, and that is what we will be giving them.

[Clive Lewis (Norwich South) (Lab)]

With all due respect to the Minister, may I tell him that his Department simply not dragging its heels is not good enough? The Hendry report recommends that Ministers

“secure the pathfinder project as swiftly as possible”.

I can promise that he will have the full support of the Members on this side of the House for doing that, although I am unsure that he would have the same support from those behind him. Will he therefore press the Chancellor for an agreement on the Swansea tidal lagoon, to be announced in the March Budget?

[Jesse Norman]

I admire the hon. Gentleman’s dexterity in turning three weeks into foot-dragging. Given his rabbinical scrutiny of the Hendry review, I shall simply remind him that it specifically asks the Government to give these issues careful consideration, and that is what we will be doing.

[Richard Arkless (Dumfries and Galloway) (SNP)]

10. What steps he is taking to safeguard investment in research and development in Scotland as a result of the UK's decision to leave the EU.

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[Clive Lewis (Norwich South) (Lab)]

The Secretary of State’s plan to impose arbitrary cuts on the pensions of 16,000 nuclear energy workers, 7,000 of them in Copeland, threatens industrial relations in a key sector. I urge him to take the opportunity, at this week’s meeting with trade unions, to end his attack on workers who power our country and abandon the raid on their pensions before the industry is plunged into chaos.

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

I met the unions last week, and we had some constructive, although undoubtedly robust, conversations. The discussion continues and we hope it will end constructively.

[Tom Pursglove (Corby) (Con)]

T4. What discussions has my right hon. Friend the Secretary of State had with representatives of industry, particularly the steel industry, about the UK’s leaving the European Union?