New Nuclear Power

Debate between Joan Walley and Martin Horwood

Thursday 7th February 2013 Commons Chamber

[Martin Horwood]

The hon. Gentleman is exactly right. In fact, the energy chief executive of Electricité de France, Vincent de Rivaz, told the Financial Times:

“the only thing missing is the contract for difference. Once we have that, we’ll have a compelling investment case to attract partners into the project”.

In other words, “If you don’t subsidise us, there is no business case.” Even with the prospect of subsidy, the business case is not that compelling. On Monday, Centrica pulled out of its partnership with EDF, writing off a cool £200 million and launching a share buy-back scheme to return another £500 million of unused capital to its investors. Like RWE and E.ON before it, and like any sane investor in my view, it has decided that it is not going to touch these new nuclear plans with a bargepole.

[Joan Walley]

I am most grateful to the hon. Gentleman for bringing this debate to the House this afternoon. Let us consider things in the light of what the House decided last week on the importance of the Liaison Committee and the scrutiny that there should be of all Government policies. This is a cross-cutting issue that affects the Public Accounts Committee, the Environmental Audit Committee and the Select Committee on Energy and Climate Change. Given all that, if we are really going to get transparency about what is going into the contracts for difference, so that we can determine whether there is or is not a subsidy, should there not be proper scrutiny by one Select Committee or a combination of Select Committees of this House? That transparency is what the hon. Gentleman is asking for in bringing this issue to the House this afternoon.

[Martin Horwood]

The signatories to the motion have included the Public Accounts Committee in it, but the hon. Lady makes a good case for perhaps extending that level of scrutiny to her own Committee. Of course because there is commercial sensitivity about some of these negotiations, it would be possible for those Committees to meet in private, as other Committees of this House do when dealing with sensitive subjects.

As I was saying, like RWE and E.ON before it, Centrica has decided that it is not going to touch these new nuclear plans with a bargepole—and it is not hard to see why. I do not know of a nuclear power station anywhere in the world that has been completed on time, on budget and without public subsidy. The new third-generation pressurised water reactors planned for the UK—sometimes called European pressurised reactors or EPRs—are already in deep trouble elsewhere. The Olkiluoto plant in Finland was begun in 2005 and should have gone on line in 2009. The latest estimate is that it will not be generating power before 2015, at least six years late. The first cost estimate was €3.7 billion, but now that has risen to €8 billion. Construction in Flamanville in France began in 2007. The Flamanville facility is now four years late and counting, while the costs have escalated even further and faster than those in Finland, from an original guess of €3.3 billion, according to Le Monde, to the €8.5 billion announced just in December. One French commentator said that this latest announcement undermined the credibility of EPRs as a technology export, and Centrica was obviously listening.

Will anyone take Centrica’s place? EDF is apparently talking to partners it has worked with in China, but I would just warn the Secretary of State that, according to the recent Nuclear Materials Security Index report, China ranks 29th among the group of 32 nuclear nations on nuclear security and materials transparency. Given wider security—

Debate on the Address

Debate between Joan Walley and Martin Horwood

Tuesday 25th May 2010 Commons Chamber

[Joan Walley (Stoke-on-Trent North) (Lab)]

I am very pleased to follow the hon. Member for Sherwood (Mr Spencer), who was making his maiden speech. His predecessor was a very good friend of many people in the House. The hon. Gentleman made his speech in a very knowledgeable way on all kinds of issues that are important to people here. That gives us a good sense of how this new Parliament is going to be. As someone who has been re-elected more times than they can almost remember—I think it is six times now—I have to say that on returning to this place there is no difference: one always feels the important weight on one’s shoulders, and the importance of this House as the place where we speak up for our constituents, not just for those who elected us.

I say a very big thank you to everybody who re-elected me as their Member of Parliament. We owe it to such people to ensure that this Chamber is the place where we not only speak knowledgeably and shape the debate about the legislation that will be brought forward from the Gracious Speech, but influence matters and debate issues. Indeed, we Back Benchers might become more influential than we have hitherto been. I note the earlier speech from my right hon. Friend the Member for Delyn (Mr Hanson), a very distinguished former Minister; it is clear that ex-Ministers have a very important part to play. I hope that that will be an important way in which this Parliament goes forward.

The hon. Member for Clacton (Mr Carswell) referred to my former constituency neighbour and very good friend, Mark Fisher, the former Member for Stoke-on-Trent Central, and the hon. Gentleman was right: Mark Fisher did a huge amount of work behind the scenes to make Parliament the place where we can start to discuss the issues, rather than just what the Government Whips tell us to discuss.

Normally, we have one old lag and one new person as proposer and seconder of the motion on the Loyal Address, but this time we had two old lags, and it is very clear from that and the debate so far that the way in which we do business in the House is changing. That has all kinds of repercussions for our new Members, particularly the large number of women Members, and we need to find out how we can use that to everybody’s best advantage, so that the best parts of the Gracious Speech can be delivered to benefit all our constituents. I hope that we can all have an input into that.

As always, it is difficult to discuss a Queen’s Speech without understanding the enormity of the budget cuts that are being made, and I really want to put on the record my displeasure at the fact that an announcement was made yesterday. It talked about £6 billion of cuts, and many of my constituents fear that it could lead us into a double-dip recession, which so many of us want to avoid. There is a lack of detail and clarity about where those £6 billion of cuts will be made and whether they will be fairly distributed throughout the whole country.

I very much hope that the new Government—the coalition Government—will look at, and have flagged up, the areas of greatest need, because I tell the Ministers on the Government Front Bench right now that if there is any area of high need in the country, it is Stoke-on-Trent. Huge inequalities exist there, not because of a lack of action previously, but because the scope of the challenge is so great. That also applies to other heartland areas that previously depended on manufacturing, and I want the new Government to understand those inequalities and ensure that the £6 billion of cuts and whatever follows are looked at through the prism of how such areas as my constituency can best be protected. I want to ensure that this place is where I can best safeguard my constituents’ interests.

I was particularly interested in the part of the Gracious Speech that related to climate change, and I hope that the coalition Government will consult and work closely with all those in the House who have experience on the issue. I am mindful of the fact that the Committee on Climate Change, which the previous Government set up, belongs to this House, so I hope that in new legislation on the environment and climate change we have regard for that committee’s important role and ensure that, whatever cuts apply across the board, that role is protected. We cannot afford reductions there given the importance of taking forward the climate change agenda.

I put on record also the importance that I attach to ensuring that that Bill transforms the nation’s electricity system. We have to move from that system’s fossil fuel basis, and from coal and gas to clean forms of generation. That means clean coal and, especially, renewables, and I shall discuss the role of areas such as Sherwood in that, because I have visited and seen for myself the huge amount of pioneering work taking place in those regions.

The new Bill on the environment, climate change and energy efficiency must somehow embrace the concept of a broader, green economy. The hon. Member for Cheltenham (Martin Horwood), who served with me on the Environmental Audit Committee, understands that agenda entirely, and I hope that we will legislate for more than just electricity and ensure that there are provisions for supporting residential energy efficiency and electric vehicles.

[Martin Horwood (Cheltenham) (LD)]

I congratulate the hon. Lady on her re-election and thank her for the role that she played on the Environmental Audit Committee. She and I both argued for a low-carbon economy and support for renewable energy and clean forms of energy generation. I assure her that any Government of whom the Liberal Democrats are a part will continue to have that climate change agenda absolutely at their heart.

[Joan Walley]

That was a most welcome intervention; I am glad that I gave way. I give the hon. Gentleman notice that I shall be watching very closely and holding him to account. I hope that a newly formed Environmental Audit Committee will also do so in due course, after the House decides on the role of Select Committees.

The whole issue of electric vehicles, and a charging network and infrastructure to support them, is really important. I want to flag up the important research done by the Public Interest Research Centre, which launched the Offshore Valuation in Aberdeen a couple of days ago. That work, which was part-financed by the Department of Energy and Climate Change, shows that the UK’s offshore renewable resources have enormous potential. It is vital that we find ways of putting the research into practice so that we become a net exporter, which would give us huge benefits as far as new manufacturing jobs are concerned, across the country and particularly in the west midlands.

To go back to something that the hon. Member for Sherwood said, I should say that there is an issue about the legacy of our coalfields. I am glad that my right hon. Friend the Member for Wentworth and Dearne (John Healey) is here, because he understands the issue as keenly as I do in Stoke-on-Trent. I speak as one whose constituency was the first to produce more than 1 million tonnes of coal a year, during the good old Victorian age. We have a legacy, and I say to this Government that that legacy was addressed by the previous Government. We had the coalfield regeneration work that arose from research work originally done by the Office of the Deputy Prime Minister. That set up funding to deal with the legacy of coal mining in areas such as mine. I am proud that £15 million land reclamation work has been under way; if that did not take place, there would be huge problems of land drainage and the collapse of culverts. The work also pays for the Coalfields Regeneration Trust. It is vital that the new Government should ensure that that work can continue in one way or another. Former coal mining areas such as mine still need that support.

Mention of education policy is made in the Gracious Speech. I have great concerns about the role of academies, as I firmly believe that local authorities should be able to make sure that there is equal provision of education right across the local authority area. I say one thing to those on the Government Benches on this issue. As I understand it, the Building Schools for the Future programme in Stoke-on-Trent is due to get its final financial sign-off in September this year. The plans are well advanced and partners have been chosen. I would not want any of the new investment that will be taking place, in new schools or the so-called free schools, to be at the expense of a carefully thought out programme such as the one in Stoke-on-Trent. We cannot afford to lose it. I hope that the relevant education Bill will look at that issue carefully.

The money brought forward by the new Government must not be at the expense of the needs of areas such as Stoke-on-Trent. In previous Budgets, there was mention of the relocation of 150,000 civil service jobs from the south-east. Will that plan be involved in the new efficiency savings? We need to know. We need to discuss the Gracious Speech in the context of the Budget and the cuts that are going to be made. I, for one, could say that there are great sites in Stoke-on-Trent. The momentum for securing a relocation of Government jobs from the south-east needs to be carried forward. I hope that Ministers will listen.

I speak as an honorary doctor of Staffordshire university for my work on regeneration. In respect of the regeneration agenda, ambitious plans are already under way for the Staffordshire university quarter, which is linked to the wider budget of the regional development agency and the Homes and Communities Agency. We need to make sure that we have ministerial input into addressing the needs of such areas, so that what is already under way and progressing is not stalled as a result of blanket cuts that take no account of the needs of people whom I represent in Stoke-on-Trent North.