John Hayes
Main Page: John Hayes (Conservative - South Holland and The Deepings)(11 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
Ian Lavery (Wansbeck) (Lab)
2. What assessment he has made of the future of the deep-mine coal industry in the UK.
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
The Government value the role of British coal in meeting our energy needs. Equipped with carbon capture and storage, coal generation can continue to play a significant long-term role as part of a future low-carbon energy mix.
Ian Lavery
The Minister is very much aware of the situation at Daw Mill colliery, where 650 miners who have given their lives to the coal mining industry are facing uncertainty with regard to redundancy payments. Will he give a commitment to do everything in his power to ensure that these men receive their entitlements in full?
Mr Hayes
There are few in this House who can match the hon. Gentleman’s understanding, knowledge and support for the coal industry. I cannot match it, but what I can match is his determination to do right by the workers there. I had a positive meeting with the unions yesterday; I also met UK Coal yesterday and, again, had a positive meeting. The Government will do all they can, not only to protect the future of the coal industry, but to protect the interests of those workers who will lose their jobs at Daw Mill. I made that abundantly clear. We cannot match the hon. Gentleman’s knowledge of these things, but I can certainly match his determination.
David Mowat (Warrington South) (Con)
The Minister said in his response that coal had a good future in this country if it was combined with carbon capture and storage, a technology that is many years from working. Across the rest of the world, unabated coal is accelerating. In particular, countries such as Germany that produce 20% more carbon per unit of GDP and 20% more carbon per capita than us are launching a number of coal-fired stations. Why is their position so different from ours?
Mr Hayes
We are committed to CCS because we believe it can work. My hon. Friend will know that the carbon capture and storage cost reduction taskforce predicted it could work much earlier than previously estimated—by the early 2020s. With carbon capture and storage, coal can play an important part in our future. I cannot be clearer than that, Mr Speaker, surely.
Mr Dennis Skinner (Bolsover) (Lab)
The Minister will be aware that UK Coal, which owns Daw Mill colliery, is one of the principal owners in the coal industry that remains. The worst case scenario that we had put to us the other day was that if UK Coal cannot survive, two more pits—one that is loss making, one that is making a bob or two—could go, as well as some other land sites. When he is talking about Daw Mill colliery and talking to UK Coal, will he ensure that he protects the redundancy money? There is someone in my constituency who used to work in Derbyshire but who now travels 100 miles there and back to Daw Mill. Will he get his redundancy pay? He was finished before the fire, so will the Minister get on with it?
Mr Hayes
The hon. Gentleman is absolutely right—again, he is an authority on these matters. The pits at Thoresby and Kellingley are, of course, also owned by Daw Mill. Part of our determination—the determination I outlined a moment ago—is to ensure that the future of those pits is secured. However, he is also right to say—this goes for me, too—that the workers matter most in all this. That includes the workers who were made redundant in the early restructuring, the workers at Thoresby and Kellingley and the workers at Daw Mill. I have made that abundantly clear to the unions, with which I had such a positive meeting, and I have told the company that, for the Government, it is a key priority.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
The Minister has already referred to the importance of CCS in relation to the medium and long-term future of coal generation. I am sure he will be aware that around two thirds of the coal we burn to generate electricity in the UK is imported. He might not be aware yet that, as of 9.5 this morning, 46% of all the electricity being generated in Britain today is from coal-fired stations. Given those two factors and his determination, as he has said in the past, to put the “coal” into coalition, may I urge him to put the “sense” into sensible and get on with developing a short-term strategy for coal to protect the indigenous industry in the UK?
Mr Hayes
That is a good point. There is a good argument for making a clear statement about how we see coal developing in the short to medium term. It is absolutely right that we pursue CCS. Perhaps we will get the chance to say more about that later in these questions—who knows, Mr Speaker? The hon. Gentleman is right, and I will certainly consider making a statement on that. The appropriate time for that will be when we make further progress at Daw Mill, Thoresby and Kellingley. He is right. The Government can learn from the Opposition, and the wise Ministers on the Front Bench recognise that.
John Pugh (Southport) (LD)
3. What recent discussions he has had with utility companies on the cost of providing electricity infrastructure.
Mr Speaker
I think that the Minister is recovering from his last witticism.
Mr Hayes
It is as though all my Christmases have come at once, Mr Speaker.
My regular discussions with energy companies about the cost of our electricity infrastructure are essential to ensure that the Government guarantee energy security, meet decarbonisation objectives and, just as important, do so in a way that makes energy affordable for customers across Britain.
John Pugh
I thank the Minister for that answer. He will be aware that, as a result of statutory undertakings, companies such as ScottishPower have a virtual monopoly over electricity industry infrastructure, which hinders commercial development, particularly in my constituency. What can be done about that?
Mr Hayes
Let me be clear that my Department expects network companies to provide connections in a timely and affordable way while maintaining the secure electricity on which we have all come to depend. Connections to the distribution network are a matter for the distribution network operator, as my hon. Friend knows, and the independent regulator, Ofgem. I entirely agree that those companies must behave properly, as we make extremely clear in our discussions with them. Indeed, I was with a number of transmission companies earlier this week doing just that.
Andy Sawford (Corby) (Lab/Co-op)
Bloomberg research has shown that investment in renewable energy has halved since this Government came to power, and the Pew group has found that Britain has slipped to seventh in the world for investment in clean energy, so is it not the case that, although the Government talk a good game, we are actually slipping behind in investment?
Mr Hayes
That is an interesting tangential question, given the question on the Order Paper, but the hon. Gentleman is absolutely right that it is vital to our energy security that we have an energy mix. Our Energy Bill underpins exactly that strategy—a mixed economy of generation—purely because only by that means can we be sufficiently flexible and responsive in a highly dynamic set of circumstances.
Mr Tim Yeo (South Suffolk) (Con)
Does my hon. Friend agree that it is very important to avoid incurring costs by building infrastructure that is not needed? Is he aware that the National Grid proposal to construct overhead pylons across Suffolk was based on the assumption of early completion of new nuclear power stations at Sizewell and completion of a large number of offshore wind farms, none of which is certain to be built? Does he agree, therefore, that the proposal should now be deferred?
Mr Hayes
It is right that the infrastructure we put in place should meet a purpose; infrastructure without a purpose can hardly be legitimised. I am not as familiar with the intimate details of the affairs of Suffolk as my hon. Friend is; he would hardly expect me to be, but I am more than happy to take a look at that. Furthermore, and not for the first time, I would be delighted to meet him to discuss these matters more fully.
Mr Mike Weir (Angus) (SNP)
In his discussions on infrastructure, has the Minister considered the place of pump storage systems and how they fit into the new world of contracts for difference and capacity payments?
Mr Hayes
It is not the first time the hon. Gentleman has raised that matter. Scotland has a particular interest in that, because of the transmission circumstances that prevail there. That is something the Department has looked at and we continue to have those kinds of exploratory discussions. If he wants to feed into those, of course his contribution, as ever, would be most welcome.
Mr Robin Walker (Worcester) (Con)
4. What recent progress he has made on the roll-out of the green deal.
Christopher Pincher (Tamworth) (Con)
7. What assessment he has made of the Nuclear Decommissioning Authority’s process and timetable for determining credible options for plutonium reuse at Sellafield; and if he will make a statement.
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
The process and timetable on the reuse of plutonium were set out in the Government’s consultation response in December 2011. Work on the reuse of plutonium as a mixed oxide fuel is progressing well and remains on track.
Christopher Pincher
May I register my disappointment that the Minister has been forced to come to answer questions this morning, when as late as last night, some of us still held out the hope that he might be translated to the Holy See? Be that as it may, does he share my belief that the Nuclear Decommissioning Authority needs to ensure that more than one technology, not just CANDU, is deemed credible for plutonium reuse, so that any subsequent licensing round is competitive and transparent, and delivers best value for the British taxpayer?
Mr Hayes
I was always an outsider for Pope, although my infallibility was a strength. My hon. Friend is right that the licensing round needs to take account of those considerations. Following extensive discussions and consultation, we settled on making MOX for nuclear reactors our preferred policy option. However, the Nuclear Decommissioning Authority is still working on alternatives. We are finalising guidance on regulatory justification for the reuse of plutonium, and I can commit today to that being published shortly.
Mr Speaker
Whether the Minister of State is infallible is a matter for conjecture, but in the 30 years that I have known him, he has always been inimitable.
Dr Alan Whitehead (Southampton, Test) (Lab)
9. What recent representations he has received on a future route to market for independent power generators.
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
Since our call for evidence last year, Ministers and officials have held meetings with a wide range of independent generators, suppliers and other stakeholders covering route-to-market issues, including the availability of power purchase agreements.
Dr Whitehead
Does the Minister recognise the difficulties that independent low-carbon generators will have with the passing of power purchase agreements following the end of the renewables obligation? Is he looking at alternatives to PPAs, such as the green power auction market, and will he seek to implement such a market in consideration of the Energy Bill?
Mr Hayes
The hon. Gentleman has been consistent in his advocacy of independent generators. He raised this issue during the Committee stage of the Energy Bill. He knows that I am not unsympathetic to his assertions about the difficulties that independent generators face. I believe that contracts for difference will make it easier for independent generators to access the market, as he knows, because they will remove wholesale price risk and eliminate the requirement to market renewables obligation certificates, which will also reduce risk. I make this commitment: I think that we need to look at this matter more closely and to do more. We need a more plural and a more liquid market to create competition and drive down prices.
Mr Edward Leigh (Gainsborough) (Con)
12. What the height will be of the proposed wind farms in north Lincolnshire; and if he will make a statement.
Michael Fabricant (Lichfield) (Con)
15. What steps he is taking to ensure that oil from the North sea continues to make a contribution to UK energy needs; and if he will make a statement.
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
The North sea has been a major UK success story, and oil and gas will continue to play a key role in the energy mix for years to come. The Government continue to promote activity and investment in the North sea, and we maintain a close dialogue with the industry on how to support its continued development.
Michael Fabricant
My hon. Friend knows that the Government have issued more exploration licences than ever before, which is fantastic. However, there are many mature wells from which about 80% of the oil has been extracted. How can we set up a new procedure whereby we wring every single last drop of oil from those mature wells, and benefit the UK economy accordingly?
Mr Hayes
My hon. Friend is absolutely right: North sea oil and gas have a long and bright future. He may not have seen the report from Oil & Gas UK—as you may not have done, Mr Speaker—but it states that we are seeing the highest investment in UK offshore oil and gas development on record. The Government, too, are doing their bit. The brownfield allowances have encouraged that investment, and this is about growth, jobs and skills, as well as energy. I look forward to a bright future in the North sea for the United Kingdom and all those who work in that wonderful industry.
Dame Anne Begg (Aberdeen South) (Lab)
Indeed, the oil industry does have a bright future; it is not a twilight industry. Miraculously, Scotland’s First Minister seems to have found a great deal more oil at the weekend, which will be very interesting to see. For the last drop to be wrung, as the hon. Member for Lichfield (Michael Fabricant) said, assets in the North sea will need to continue and many were not built to last as long as they have. What will the Government do to help companies to improve their asset integrity in the North sea?
Mr Hayes
The hon. Lady is, I am aware, the chair of the all-party group on British offshore oil and gas. I visited Aberdeen a week or so ago, and I am going again in a week or two. I have committed to visiting Aberdeen more often even than my predecessor, who had a proud record in that regard. We need to bring in a new type of investor to the North sea industry. To that end, I have run investment events that will encourage the industry to link up with a new breed of investor. She is right: infrastructure matters and we must facilitate the investment to rebuild that infrastructure.
Charles Hendry (Wealden) (Con)
I am delighted to hear that my hon. Friend will be visiting Aberdeen as often as I did, because I found that to be one of the most inspiring parts of the energy portfolio. What more can we do to support groundbreaking, world-class companies here in the UK supply chain, so that they can take advantage of the opportunities here and overseas, and we can get the industrial benefit alongside the energy benefit?
Mr Hayes
My hon. Friend is absolutely right, and let me repeat that he was highly thought of in the industry, not least due to his commitment to the visits he made and to his work. It is key to recognise that many small and medium-sized companies are a part of this exciting opportunity. Often we see this issue in terms of very large oil companies, but it is the SMEs that require the extra investment I described in answer to the hon. Member for Aberdeen South (Dame Anne Begg).
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
16. What steps he is taking to increase the confidence of the energy sector to invest in new generating capacity.
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
The UK is one of the most attractive places in the world to invest in energy infrastructure, and still more so since we published the Energy Bill. The certainty this provides is backed by complete cross-Government support unmatched by any other country in Europe.
Mr Sheerman
The Minister seems to be living in a parallel universe. I have a declared interest: I am on the environmental scrutiny board of Veolia, the environmental company. When I meet people who are being asked to make a long-term investment in the production of energy, they are very cautious of making any commitment at this time. What will he do about that? An energy gap, which is totally frightening for the people of this country, is emerging.
Mr Hayes
Just last week the Secretary of State, the Minister of State and I were in Downing street with the Prime Minister, making exactly the case to the investment community for which the hon. Gentleman is calling. I want him to join me in my universe. That universe is the universe of optimism, the universe of growth, the universe of success.
Caroline Flint (Don Valley) (Lab)
There was not much good news for bill payers in the answer to my last question, so let me try one about businesses. I am glad to hear about the summit in No. 10. Ministers say that investment in energy infrastructure is at a record high, but four out of five of the projects that they claim credit for either received planning permission or started construction under Labour. My hon. Friend the Member for Corby (Andy Sawford) earlier quoted independent sources saying that under this Government investment in clean energy has fallen by half. Businesses are saying that what they need now to invest is a target in law to decarbonise the power sector by 2030. Why will the Government not listen to them?
Mr Hayes
I have all sorts of prepared notes but I am not going to use them because the answer to this question is as plain as this: it is fine to have targets; targets matter because they signal direction. However, one must have weapons to hit those targets. What the Government have done that the previous Government did not—I do not want to be excessively critical—is put measures in the Energy Bill that will allow us to develop the weapons to hit targets. That is what investment is about: meeting targets, not setting them.
Mr John Baron (Basildon and Billericay) (Con)
17. What steps he is taking to increase competition in the energy market.
Glyn Davies (Montgomeryshire) (Con)
T6. I want to thank the Minister of State, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes) for hosting a constructive meeting with the Welsh Assembly Member Russell George and myself earlier this week about planning permission for onshore wind farms and associated infrastructure in mid-Wales. Will the Minister tell us how he intends to ensure that more weight be given to the view of planning authorities and local communities when they fiercely oppose wind farms in their areas?
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
The Secretary of State has said—and I can do no more than echo his words:
“I am clear that local people and their councils should not feel bullied into accepting proposals they do not want.”
It is critical to listen to local communities. The call for evidence that my right hon. Friend has mentioned is, in turn, critical to that. I am delighted that I was able to meet my hon. Friend and his colleagues. He will await our response to the call for evidence with interest, as will the whole House, and I am sure it will be very good news.
John Cryer (Leyton and Wanstead) (Lab)
Further to Question 2 on the deep-mining industry outlined by my hon. Friends, Britain could be facing a sharp rise in the importation of coal. On that basis, what assessment has the Minister made of the future security of energy supply in Britain?
Mr Hayes
Coal matters, for reasons of energy security, but jobs and skills matter too. People who do a dirty, difficult, dangerous job deserve our respect and support. The job that they do helps our energy security, and the Government understand that, which is why we will work to preserve that security and protect those people.
Andrew Selous (South West Bedfordshire) (Con)
T8. The United Kingdom is not alone in Europe in wanting to build new nuclear power stations. How can we co-operate with other European countries to our advantage, without ceding further powers to them?
Mr Adrian Sanders (Torbay) (LD)
T9. Many of my constituents are concerned about fracking, but I am not aware of any applications for fracking in the south Devon area. Can the Minister reassure my constituents that the Government are not aware of any such applications?
Mr Hayes
As the hon. Gentleman will know, we have established an office for unconventional gas and oil precisely in order to co-ordinate such matters. It is absolutely right for us to explore this opportunity, which could prove very fruitful, but we must do so in a safe and secure way, and a way that encourages communities to understand the benefits that it can bring them as well as the whole nation.
Mr William Bain (Glasgow North East) (Lab)
The CBI estimates that more than a third of the pitiful economic growth that we saw last year came from the green economy. Why is the Secretary of State listening to the Chancellor rather than to green businesses, which say that they want a target in law for the decarbonisation of the energy sector by 2030 and they want that target now?
Mr Marcus Jones (Nuneaton) (Con)
I want to thank the Minister of State, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes) for the care and support he has shown for the workers at the Daw Mill colliery during this difficult time. In addition to the work he is doing, will he make representations to the Department for Business, Innovation and Skills to ensure that it is fully engaged with local organisations in the provision of careers advice, support and retraining opportunities for the workers who cannot be redeployed in the coal industry?
Mr Hayes
My hon. Friend has been a powerful champion of his constituents in this regard, as have my hon. Friends the Members for Sherwood (Mr Spencer) and for North Warwickshire (Dan Byles) of their constituents. I will, indeed, do what has been asked. In fact, I already have: there will be a bespoke tailored event run with local colleges, local authorities and Jobcentre Plus aimed at providing new job opportunities and reskilling for those who find themselves made redundant.
Alison Seabeck (Plymouth, Moor View) (Lab)
The Hills fuel poverty review said that unless the Government changed course a further 200,000 families would be in fuel poverty within four years. Does the Secretary of State agree with the Hills conclusions, and if not, will he place in the Library the evidence on which he is basing his views?