John Hayes
Main Page: John Hayes (Conservative - South Holland and The Deepings)(11 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Neil Carmichael (Stroud) (Con)
3. What recent assessment he has made of investment opportunities in green energy technologies.
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
It is estimated that replacing and upgrading our electricity infrastructure over the next decade will require approximately £110 billion of capital investment. That will provide investment opportunities for a mix of low-carbon technologies, with all the exciting prospects that brings.
Neil Carmichael
I thank the Minister of State for that answer, not least because so many firms in my constituency are clearly interested in green technologies. Does he agree that the Government have taken measures to demonstrate clarity and consistency of policy, and that that should give comfort to investors, particularly bankers, in supporting small and medium-sized enterprises?
Mr Hayes
I think it was John Ruskin who said that when we build we must think that we build for ever, and the Government are determined to build a framework of certainty that will allow investment in a range of generating technologies to guarantee our energy security. Our ambitions are no less than that.
Mr David Hanson (Delyn) (Lab)
If things are going so well, will the Minister tell the House why 17 companies are taking his Department to court for billions of pounds of compensation because of cuts to feed-in tariffs, why 80% of the solar industry has collapsed over the past year in respect of installations, and why companies in my constituency are screaming at me about the Government’s failure to develop solar industries?
Mr Hayes
The right hon. Gentleman was a distinguished Home Office Minister under the previous Government, so he will know that when the Government take on major challenges, such as the one I have described, it is not, of course, an easy road to tread. The Government’s determination to reform our electricity market and introduce the changes necessary to guarantee our energy security is, by any comparison—certainly in comparison with the Government of whom he was a part—profound, valued and welcomed by the vast majority in the industry.
Mike Crockart (Edinburgh West) (LD)
One technology that could make a huge difference in this area is anaerobic digestion. I have had discussions with companies in the field, and despite interest from the green investment bank they report that they are still having difficulty in accessing finance. What more can the Minister do to help with that problem?
Mr Hayes
It is critical that both the cost and availability of capital underpin the investment I have described, and that is particularly true, as the hon. Gentleman says, for small and medium-sized enterprises. We are working on that with the Department for Business, Innovation and Skills—my former Department—but given that he has raised the matter in this way, I will look at it again and report back directly to him.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
We heard the Minister talk about the certainty and clarity of the new arrangements and contracts for difference, but those of us serving on the Energy Bill Committee have in recent weeks heard evidence from ScottishPower, the Royal Bank of Scotland, RenewableUK and others, about the importance of the three-year transitional period. This morning we have the opportunity to vote for a Labour amendment to the Energy Bill that would ensure that if there is any delay, that three-year period of transition will remain. Will the Minister confirm whether he will be voting for that amendment, and if not, why not?
Mr Hayes
I never confirm what I am going to do about amendments until I have heard the arguments, and as I am sure the hon. Gentleman knows, it would be premature for me to consider his amendment in the House at this time and not in Committee. On the specifics of the issue, we have allowed an overlap between the renewables obligation and the new arrangements, specifically and particularly because we want businesses to be able to adapt to the new system.
Caroline Dinenage (Gosport) (Con)
4. What steps his Department is taking to tackle fuel poverty.
Paul Flynn (Newport West) (Lab)
14. What recent assessment he has made of the potential construction of new nuclear power stations.
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
The Government are firmly committed to ensure the conditions are right for investment in new nuclear power, and welcome plans for around 16 GW of new nuclear power in the UK. It is up to energy companies to construct, operate and decommission nuclear power stations. It will be for Government and the independent regulators to ensure safety and security and to maximise the benefit. The future is bright and safe: the future is nuclear.
Paul Flynn
Professor Tom Burke, a former Government adviser, said on Tuesday that the Government are planning in secret to spend up to £30 billion in subsidy to new nuclear. New nuclear is in trouble in Finland and in France—years late and billions over budget. Are the Government going to break their promise to have no nuclear subsidies, and if they are going to break that promise, can the Minister guarantee that there will be full transparency and opportunities for Parliament to discuss, debate and vote against it?
Mr Hayes
I have no secrets from this House. Of course the Government are going to be transparent about the process. Of course the Government are going to ensure taxpayer value for money. The hon. Gentleman has a history of being against Trident, which is about our future. He has a history of being against the monarchy, which is also about our future. We knew that he wanted to ban the bomb and ban the monarchy; we now know that he wants to ban the future.
Charles Hendry (Wealden) (Con)
Yesterday’s decision of Cumbria county council not to take forward work to explore the suitability of the local area for a deep geological facility for nuclear waste seems to me to be a pretty serious blow, especially to Sellafield’s own aspirations to be a global centre of nuclear expertise. What steps does the Minister plan to take to take forward that critical work, which has to be an integral part of a nuclear renaissance? Will he look at alternative technologies such as GE Hitachi’s PRISM—power reactor innovative small module—technology?
Mr Hayes
Of course disposal matters, but let me be clear: our plans for nuclear to be part of an energy mix are firm, resolute and will not be spoiled by anything that has been described. These are important matters, but the certainty and clarity that I described earlier are uninterrupted by these events.
Mr Jamie Reed (Copeland) (Lab)
Cumbria county council’s decision would have been described by John Ruskin as a “pathetic fallacy”. Will the Minister undertake to recognise the democratic mandate given by the people to the councils in west Cumbria to embark on a process of managing the country’s radioactive waste as a matter of urgency? Will he agree to meet me, and representatives of the trade unions, in order to establish a new process so that we can take action in the national interest?
Mr Hayes
I was looking at that Ruskin quotation last night, as it happens, and wondering whether I could weave it in.
The hon. Gentleman has been notable for his support for nuclear power, because he understands its significance to the energy mix. He is right: there are very different views in Cumbria, and we should not characterise them in a casual fashion. Of course we will continue to work with local communities who understand the importance of long-term disposal in the same way as the hon. Gentleman and many of his friends in Cumbria.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
If the Minister were concerned about transparency, he would have voted for our amendments to the Energy Bill earlier this week, which would have increased transparency and given comfort to my hon. Friend the Member for Newport West (Paul Flynn) and many others.
As for yesterday’s decision in Cumbria, the Minister has rightly noted that west Cumbrian authorities voted to support the study, although the county council did not. The Secretary of State said that he would embark on a new drive to make the case for waste disposal to other communities. This morning the president of his party, the hon. Member for Westmorland and Lonsdale (Tim Farron)—who is not in the Chamber—was quoted in the Financial Times as saying that Oxfordshire was more suitable. Is that the policy of the party that is the Minister’s coalition partner, and, if so, has it been discussed with the Prime Minister?
Mr Hayes
We will have discussions with the communities who understand the significance of this and its potential value to them, and of course those discussions will be ongoing.
Let me be clear about transparency. In the Bill Committee to which he referred, the hon. Gentleman has repeatedly made the case for a more transparent approach, and I am sympathetic to that argument. This Government must be characterised by openness in the way in which they conduct their affairs, in this matter and in all matters.
Martin Horwood (Cheltenham) (LD)
18. What recent progress has been made on strike price negotiations with EDF.
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
Shale gas has exciting potential, but we need to—
Mr Speaker
Order. I am grateful to the Minister, but we are actually discussing strike price negotiations with EDF, which is a somewhat different matter.
Martin Horwood
Another interpretation of those ongoing discussions is that they are offering a consumer subsidy to the French state nationalised energy company Électricité de France in a mature market, without much competition, and in advance of the relevant legislation. Should that not be subject to proper parliamentary scrutiny?
Mr Hayes
As I have already said, the strike price that we agree and the process that leads up to that agreement will indeed be subject to such scrutiny, because we will be transparent about the arrangements that we make. Let me be perfectly candid. If this deal does not stack up, we will not proceed with it. It must be in the interests of taxpayers and it must be fair, although of course it must be commercially attractive as well. The negotiations are going ahead, and it would be inappropriate for me to say more about them, but I will say that this can be a win-win for our future.
Barry Gardiner (Brent North) (Lab)
The Minister is right to say that the deal must be in our interests, but that cannot be known until after the fact of the agreement on the strike price. The key problem with the strike price is a perverse incentive to overestimate the construction costs on which it will be based. If it is subsequently found that those costs are lower than the estimate, the consumer will be paying more for the strike price that the Department has agreed. Why did the Minister and his colleagues on the Government Benches vote against our amendments to the Energy Bill, which would have made transparency essential to the entire process?
Mr Hayes
Because we have said that we will publish an investment contract concerning details of the strike price. The hon. Gentleman, who is an experienced Member of Parliament, knows that the process of negotiation itself is bound to deal with commercial matters that are sensitive, and is bound to deal with trade secrets which, as he acknowledged in the Bill Committee, cannot be published. He also knows that it might be subject to all kinds of other matters that it would be inappropriate to debate now. However, we are clear about this: we will be transparent, and we will be straightforward.
Mr Speaker
Order. These are very important matters, but there are other important matters that we need to reach.
Mr Peter Lilley (Hitchin and Harpenden) (Con)
19. Whether his assessment of fracking in the US included any information on (a) people poisoned by water contamination and (b) buildings damaged by earth tremors as a result of fracking.
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
Now for shale gas, Mr Speaker. Shale gas has exciting potential, but we need to move forward with the right measures to ensure safe and secure operations, and reassure local communities. As for the US experience, so far as we know there has been no confirmed instance of any person being poisoned by water contamination or of buildings being damaged by earth tremors as a result of fracking.
Mr Lilley
I am grateful to the Minister for that clear answer. I know that he will not want to be critical of his predecessors in the Department, but why has it taken 18 months to discover such a simple fact, which, if promulgated earlier, would have set at rest the minds of people in the areas where frack drilling is likely to take place?
Mr Hayes
As my right hon. Friend knows, the Secretary of State has made it clear that he has put in place conditions, regulations, and secure and safe circumstances that will allow the continued exploration for shale gas. Shale gas is a potential virtue, but it has to be pursued in a way that is safe and secure, and guarantees public support.
Kerry McCarthy (Bristol East) (Lab)
Will the Minister take heed of the words of his predecessor, the hon. Member for Wealden (Charles Hendry), who warned against “betting the farm” on shale gas? Will the Minister assure me that the Government’s perspective on this issue is not influenced by the over-inflated claims made by firms that are major donors to, and have close links with, the Tory party? Such firms include the one that put in the recent planning application for exploratory drilling in Somerset and has given £500,000 to the Tories.
Christopher Pincher (Tamworth) (Con)
21. The British Geological Survey suggests that there could be 10 trillion cubic feet of gas under the Bowland field, whereas Cuadrilla suggests that there may be as much as 200 trillion. Would not the best way to determine who is right, so that we find out just what impact this vital resource could have and to ensure that we can get players into the marketplace, be for the Department to release the information it has and forge ahead on the next licensing round? That would allow us to get players into the marketplace and just do it.
Mr Hayes
Consistency is the watchword that characterises all the work that my hon. Friend does in this place, for in the Select Committee he made just that point and urged the Government to move ahead with another licensing round as soon as possible. We need to test and we need to establish the scale of this potential. Without exploration we cannot do that—he is absolutely right.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
20. What steps he is taking to help households with their energy bills.
Amber Rudd (Hastings and Rye) (Con)
T4. The Energy Minister has appeared before the Energy Bill Committee, waxing lyrical about the important reforms the Government are introducing to ensure that we get the energy investment we need in the future. What steps is he taking to ensure that those measures will see appropriate diversity of generating technologies?
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
Diversity matters because it provides resilience and sustainability. It is absolutely right that, through the mechanisms we put in place and the framework of certainty I described earlier, we guarantee an energy mix that is fit for purpose and fit for the future.
Paul Flynn (Newport West) (Lab)
T5. In 1976, the Flowers commission said that it would be irresponsible to proceed with generating electricity from nuclear power without a policy on the disposal of waste. The policy then was to dig a hole and bury the waste in it. The policy now is to do the same thing, but we no longer have a hole since Cumbria county council turned down the planning permission yesterday. Will this preposterous buffoon of a Minister of State try to answer one question and say whether it is still irresponsible to proceed without a solution to deal with the waste?
Karl MᶜCartney (Lincoln) (Con)
T7. As a fellow Member representing an area in the green and pleasant county that is Lincolnshire, the Minister of State, Department of Energy and Climate Change, my hon. Friend the hon. Member for South Holland and The Deepings (Mr Hayes), will be aware that Lincolnshire county council is deeply troubled by the local impact of onshore wind deployment. Does my hon. Friend share that concern?
Derek Twigg (Halton) (Lab)
You might recall, Mr Speaker, that in July last year, I raised on the Floor of the House my concern about the Department’s delay in deciding whether to retain the electric lines at the Heath business and technical park in Runcorn. This is important because the delay in the decision is holding up the creation of many hundreds of new jobs and of new housing. We are now told the decision might not be taken until March, because the inspector is busy. Does the Minister think that that is acceptable?
Jeremy Lefroy (Stafford) (Con)
T8. With the development of new sources of many types of generation in many locations on and offshore, what measures is my right hon. Friend the Secretary of State taking to speed up the strengthening of the grid, which is essential for the efficient transmission of electricity?
Jackie Doyle-Price (Thurrock) (Con)
Tilbury power station in my constituency has been generating power for more than 60 years. It successfully transferred from coal-fired generation to biomass to the extent that it generates more than half the UK’s supply of renewable energy. However, owing to the large combustion plant directive, it will still have to close. Is not that stark raving bonkers?
Mr Hayes
I am aware of that situation, and I know how well my hon. Friend has articulated and represented the interests of her constituents in this regard. This is, in the end, a commercial decision. RWE took the decision to use Tilbury as a test bed in October 2011 and converted the station to run on 100% biomass. Particular circumstances have affected that decision, but I will be more than happy, as I already have begun to, to discuss the matter further with my hon. Friend.
Barry Gardiner (Brent North) (Lab)
In his response to my question earlier, the Minister of State was gracious enough to say that he wanted complete openness about the strike price. Will he therefore tell the House whether there will be a provision in the strike price negotiations for a claw-back, should the estimated construction costs exceed the real ones?
Duncan Hames (Chippenham) (LD)
The prospect of managing a contract for difference is no trivial matter for the small organisations often involved in community energy initiatives. Will my right hon. Friend consider pleas from those on the Liberal Benches to continue the now familiar feed-in tariff for small-scale prospective community energy generators?