Fossil Fuels: Lobbying

Jim Shannon Excerpts

Tuesday 30th January 2024 Commons Chamber

[Caroline Lucas]

It will come as no surprise to the hon. Member that I completely agree with her. I do wonder what our own kids will think when the planet continues to heat still further, and what their kids, in turn, will think. What were we thinking of? What was the fossil fuel industry thinking of, certainly, beyond its profits? Apparently very little.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for bringing forward this debate. She has been assiduous in her commitment to these issues. Indeed, I would go as far as to say the hon. Lady has, on many occasions, been the conscience of this House on these issues. Does she agree that it is essential that votes cast and actions taken in this place are influenced by facts and reasoned opinion, and never by one individual or group? While there is a place for lobbying—let us be honest: it is through lobbying that we learn more; I understand that—it should be only a part of the consideration of any issue.

[Caroline Lucas]

I thank the hon. Member for both his comments, with which I agree, and his kind remarks. He is right: of course, lobbying happens, but a line gets crossed when money starts to change hands. There are perceptions—never mind what the reality is—of Members and groups potentially pursuing interests that are to their own advantage, rather than for the public good.

In June 2023, after sustained further lobbying meetings, letters and statements in the press, the Government introduced the price floor that OEUK had so assiduously lobbied for—surprise, surprise. To summarise: privileged access and meetings with Ministers, an opaque, official-looking lobbying group and an oil and gas fiscal forum advising the Treasury collectively resulted in significant changes to Government plans, which, in turn, resulted in a windfall tax that raised just half of what the Government had promised and saved corporations billions. All, of course, at a time of record fossil fuel company profits and a cost of living crisis for consumers. That is what happens when we let fossil fuels into every corner of our politics.

That is only the tip of the iceberg. Last year, it was reported that Gulf states pushing fossil fuels at COP28 had hired the now Lord Hammond and Lord Maude, along with former Prime Minister Tony Blair and other former leading politicians as “consultants”. As we know, it is incredibly easy for senior British politicians and civil servants to swap Government offices for consultancy retainers; they simply have to register with the Advisory Committee on Business Appointments—a body which even its chair, the former Conservative MP and now Lord Pickles, admits is toothless—if they take up any new paid or unpaid work within two years of leaving office. For example, ACOBA’s response to Lord Hammond working for Mohammed bin Salman’s regime was to note that his inside knowledge of the UK Government could be

“perceived to offer an unfair advantage”,

and then it went ahead and approved it all the same. When, in 2021, Lord Hammond’s advisory work was deemed by ACOBA to have breached the rules, the only sanction was a strongly worded letter.

I know and accept the convention not to criticise the conduct of individual MPs or peers, so I simply want to set out facts that are already in the public domain and on the public record. It is not just former Ministers going through the revolving door between parliamentarians and the fossil fuel industry to take up lucrative consultancy roles. Second jobs, placements, internships and sabbaticals are all different sides of the same coin, and all too often a lot of coins are made or exchanged.

Members of this House can benefit financially from the fossil fuel sector in other ways, too, as the right hon. Member for Chipping Barnet (Theresa Villiers) presumably did when she held £70,000 worth of shares in Shell for five years when she was Environment Secretary, as published in the Register of Members’ Financial Interests in August 2023. I have done the courtesy of alerting any Member to whom I am referring in this Chamber, by emailing them to let them know. The right hon. Member for Stratford-on-Avon (Nadhim Zahawi) also did in the shape of payments from oil company clients to business advisory service Zahawi & Zahawi, pieced together in research carried out by journalists Jonathan Watts and Pamela Duncan for The Guardian, from his shareholdings in an oil and gas exploration and production company, and the £1 million worth of donations he received from fossil fuel companies, including a regular monthly payment of £30,000 that stopped only when he became a Minister.

The right hon. Member for South Holland and The Deepings (Sir John Hayes)—who is in this place and with whom I have had a conversation to inform him that I am about to reference some of his interests—has been a Member of this place since 1997. He served as the Energy Minister under the now Foreign Secretary, and held down a second job for BB Energy, which trades more than 33 million metric tonnes of oil every year. As a strategic adviser, he was paid £50,000 per year for the equivalent of around 11 days’ work, according to his own Register of Members’ Financial Interests.

Three of the biggest donors to the Conservative party are funders or board members of the climate science sceptic think-tank the Global Warming Policy Foundation, or its spin-off Net Zero Watch. Companies from Cardiff Airport to ExxonMobil are handing out football tickets and passes for hospitality events to MPs across the political spectrum. In fact, I think I can safely say that there is probably only one UK-wide political party represented in Parliament that has not had some kind of handout from the fossil fuel industry, whether donations, expenses-paid trips, salaries or gifts. At this point, I give credit to the hon. Member for Coventry South (Zarah Sultana) for going public about the food hamper sent to her by staff at Heathrow in the hope it would secure her support for their third runway. They obviously did not know her very well.

Financial benefit cannot be divorced from conflict of interest or perceived conflict, It is worth noting that there is no requirement on Members of this House to declare any income from dividends or any income gained from the sale of shares. Given the seemingly routine way in which shares get moved into blind trusts when MPs become Ministers, as used by the current Prime Minister and Chancellor, or the £70,000 threshold at which we are supposed to publicly declare a shareholding stake, the idea that we have transparency around conflicts of interests is laughable.

The evidence suggests that Members of the other place are just as at risk of the perception, at least, that they are influenced by dirty fossil fuel money. A total of 43 peers have a significant stake in the industry according to 2021 data. There, the declaration threshold is lower at £50,000. It is lower again at the Senedd and Holyrood, but they are certainly not immune to fossil fuel influence. A lower threshold would clearly be an improvement, but we need to do more than just tinker with the existing rules. In the vast majority of these instances, nobody is doing anything that breaks the parliamentary rules. The Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014 only restricts about 5% of lobbyists—mostly trade unions representing workers, and charities. Meanwhile, corporations can pretty much do what they like, and consistently they do.

When we realise, as analysis by The Guardian clearly shows, that there is a direct link between fossil fuel money and the positions that MPs take in Parliament, it is self-evident that the rules cannot be fit for purpose. I believe that being an MP is about serving the public interest, not the interests of fossil fuel companies. In case anyone wants to suggest that they are working in the public interest, let me remind the House of the economic impact of continuing to extract and burn fossil fuels: public debt could rise to 289% of GDP by the end of the century if climate change is left unchecked, according to the Office for Budget Responsibility.

The climate impact is well known: if we want to be in with even a 50% chance of staying within the all-important 1.5° limit, we cannot open new fields, and we should be phasing out existing fossil fuel infrastructure in ways that will secure a just transition. That is not what these companies are using their influence to make happen, and they are frighteningly effective. Climate Action Tracker cites the Government’s doubling down on North sea oil and gas extraction as a key factor in the UK’s insufficient rating on compatibility with the Paris agreement and 1.5°. These companies’ dirty fingerprints can be seen all over our politics, and it is time to clean things up. What does that look like?

First, there would be a firewall between the industry and decision making—no lobbying meetings. If meetings are happening—for example, about the best way to secure the green transition—there must be full transparency, delivered in something approaching real time, not months after the event. At present, the Government publish details of some meetings every three months or so—often, it is every six months—but they are incomplete at best. I had to ask a series of formal parliamentary questions to expose a lunch that the then Secretary of State for Business, Energy and Industrial Strategy, the right hon. Member for Spelthorne (Kwasi Kwarteng), had with Saudi oil company Aramco. It was missing from his official declaration. First I was told that that was because it was a “social” occasion, and then that there had been an administrative oversight. All that happened months after the event—an event that, frankly, should never have happened in the first place.

It goes without saying that the behind-closed-doors cosy dinners, drinks events and so forth have to be dragged into the sunlight. There is no convenient line between social events and political business for Ministers or Ministers-in-waiting. If they have conversations about policy, either off or on the record, with someone from the oil and gas sector, or indeed another sector that stands to benefit, they should be required to make that public pretty much immediately.

A proper firewall means no industry representation on panels, Government research bodies, or expert or advisory bodies; no fossil fuel involvement in climate negotiations; no place on Government delegations to international negotiations or trade missions; no staff exchanges between the industry and Government Departments; far greater periods between leaving a ministerial role and Parliament, and consulting for an oil and gas firm, for example, with a complete ban on any sitting parliamentarians doing that kind of work, paid or otherwise; no implicit endorsements from politicians as a result of their speaking alongside industry representatives, or at events with which the industry has any kind of association; and certainly no fossil fuel company sponsorship of political party conferences.

Last year, Chevron co-hosted an event at Conservative party conference with the tagline:

“Can fossil fuel companies play a role in the energy transition?”

We know that the only role that they want to play is one of delay and obfuscation, so why should they be able to pay to get privileged access to Ministers and potential Ministers?