Infrastructure Bill [Lords] Debate
Full Debate: Read Full DebateDepartment: Department for Transport
John Hayes
Main Page: John Hayes (Conservative - South Holland and The Deepings)Department Debates - View all John Hayes's debates with the Department for Transport
(10 years ago)
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The Minister of State, Department for Transport (Mr John Hayes)
I beg to move, That the Bill be now read a Second time.
What a joy to perform once again in this theatre of dreams. What an honour to speak for the Government introducing this important Bill. What a responsibility this House has to create the future our nation needs, to build a Britain fit for generations to come and to plant trees for those born later.
Governments of all persuasions tend to neglect the long term. Perhaps that is the legacy of the post-war preoccupation with Keynes, who after all wrote:
“In the long run we are all dead.”
Perhaps the necessity of popular payback within five years discourages public policy that looks sufficiently forward. To speak candidly, it is more likely that we—those of us with power—are frightened to anticipate what might be, fearful of misjudging what is to come. Sometimes, in respect of some things, that does not matter too much, because some of the business of government is necessarily reactive. But when it comes to infrastructure, failure to face the future is catastrophic and devastating.
Thinking for the long term widens an appreciation of consequence and deepens an understanding of effect. The absence of strategic vision not only leaves us with exclusively reactive responses to need, but reduces policy to piecemeal, tiny steps when giant leaps forward are needed. That reflects a small view of government. That is not your view, Mr Speaker, I hasten to add, and nor is it mine, but it is a pessimist’s view of politics—a politics reduced to dull, technocratic managerialism.
By contrast, the Bill that I introduce to the House today is urgent and ambitious about long-term plans and a bolder view of what Government can do: urgent because Britain sits uncomfortably low, at 27th, in the global infrastructure rankings; ambitious because, as this Bill demonstrates, the Government are focused on the future. This Government understand that the future of our country depends on investment for the long term that must and will be ambitious.
Mr John Redwood (Wokingham) (Con)
Does the Minister recall that we both fought on a Conservative manifesto that said that we should get rid of quangos and not create new ones, and that Ministers should be responsible and accountable—something that I entirely agree with? Why is he proposing two new quangos on highways instead of the excellent arrangements for accountability through him?
Mr Hayes
My right hon. Friend has made that point to me previously. Let me tell him, with a candour equal to that of my earlier expressions, that I am absolutely determined that the lines of accountability for the strategy we have in place should be clear and that Ministers’ lines of reporting in this House should be palpable and known. Indeed, I have missioned my Department to make sure that that happens.
I will make available in the Library of the House, not only for my right hon. Friend’s benefit but for that of the whole House, a description of precisely what those lines of accountability will look like. When he sees that clear description of how the House and Ministers are going to exercise their proper authority in the name of the people, I think he will be more than impressed and will feel that this Government and this Minister have gone further than even he expected us to.
Caroline Lucas
I am grateful to the Minister for giving way; it is good to see that he is on his usual courteous form. He talks about the importance of facing up to the future, but the question is what kind of future it is. Why does this Bill lock us into such a high-carbon future at exactly the time when we need to be shifting towards being able to meet our climate change objectives?
Mr Hayes
As the hon. Lady suggests, the kind of future that I anticipate is very different from the one that she sees, for my kind of future is ambitious for Britain and virtuous in its intent; I am not sure that that is true of hers. I do not mean to be unkind in any way. However, as I said, I will come to invasive species by those that are apparently ornamental when they first arrive but turn out to be nothing but a nuisance.
Hon. Members will see a virtuous pattern that demonstrates my and the Government’s unrelenting commitment to delivering better infrastructure. At the heart of the autumn statement made by my right hon. Friend the Chancellor last week was the biggest and most far-reaching roads programme in decades, with over 100 improvements to our major roads. As the House knows, that extra capacity will be underpinned by £15 billion of investment. Better infrastructure means more jobs, more opportunities and more growth. Those things will ultimately help to build a better future, drive down the deficit and inspire our people.
On taking office, we produced the first ever national infrastructure plan. We have made big calls on HS2, on Crossrail—the biggest construction project in Europe—and on shale gas exploration. We have got Britain building, with over 500,000 new homes built since April 2010.
Helen Jones (Warrington North) (Lab)
The broad sunlit uplands that the Minister is describing mean absolutely nothing to people in my constituency threatened with the untried technology of fracking without sufficient safeguards, which would wreck many of our villages and suburbs. Does he think that that is all right because it is going to happen in what his noble Friend Lord Howell calls the “desolate” north?
Mr Hayes
The hon. Lady is, of course, right to defend the interests of her constituents and to say that, when such innovations occur, it is vital that the communities affected understand what is going to happen and are involved in the decision-making process. When as Energy Minister I set up the office for unconventional gas and oil, part of my intention was for it to ensure that good information was provided, that some of the misinformation that prevails be put aside, and that local communities could be as engaged as much as possible in the process. I understand the hon. Lady’s championing of her community and she can be assured that this Government take exactly that kind of open-minded, generous, communitarian approach.
Andrew Miller (Ellesmere Port and Neston) (Lab)
The right hon. Gentleman knows that I am on the same side as him when it comes to the potential development of unconventional oil and gas. With that in mind, and given his answer to my hon. Friend the Member for Warrington North (Helen Jones), will he explain why the Government rejected Labour amendments in the other place that the industry are quite relaxed about?
Mr Hayes
The hon. Gentleman will have the chance to make that case as the Bill makes its passage through the House. I am not in the other place and it is not really for me to anticipate the amendments that he or other Members might table. Of course, we will listen—this is a Government who listen and learn, as I shall describe in a moment. Given the hon. Gentleman’s record in this House, I know that he would be the last person to turn his back on innovation and stand in the way of progress. Indeed, he has been one of this House’s greatest advocates of innovation and scientific progress.
Barbara Keeley (Worsley and Eccles South) (Lab)
My constituency includes the community of Barton Moss, where a six-month exploration for shale gas took place from November to May. That was dumped on frightened communities and people as a result of a 2012 planning application for coalbed methane gas. There was no reassurance.
Even worse, the Government have changed the planning process, shortened time scales, and taken some vital aspects of planning consideration away from local planning authorities and given them to the Environment Agency; that made it so much more difficult for communities such as mine to comment and be involved. They were not involved and they did not comment. The things the Minister has said about reassurance just did not happen.
Mr Hayes
I do not want to be unnecessarily partisan, because that is not my way, but I can say only that the hon. Lady has either misread the Bill or misunderstood the Government’s intention. After my explanation of that aspect of the Bill, I hope the hon. Lady will leave the Chamber if not convinced, at least with many of her worst fears assuaged. If I am imperfect in making the argument, so be it, but I will give it my best shot. I will say no more than that.
The hon. Lady and others know that, because of our commitment to long-term delivery, unemployment has dropped below 2 million for the first time since 2008 and we have produced the first ever road investment strategy, which has been warmly welcomed not only by Members of this House, but by the RAC Foundation director, Professor Stephen Glaister, by Richard Threlfall, the head of infrastructure at consultants KPMG, and by many others. I will not tire the House by listing the many supporters of the Government’s approach. That would not be entirely fair to the Opposition, either. I do not want them to start with such a profound disadvantage; I want to give them a fair shot on what is, after all, an extremely sticky wicket for them.
I genuinely believe that our impressive commitment to the long term, which stands in sharp contrast to the record of the previous Government, is one of the hallmarks of this Administration. According to the World Economic Forum’s global competitiveness survey, under the Labour party—as I have said, I do not want to dwell on this for too long—our roads and railways plummeted from seventh in the world to 33rd.
We know that if Labour had been re-elected in 2010, things would have only got worse. Mr Miliband admitted to the BBC after the election that Labour had planned to cut investment in rail and road by 50%, telling Radio 5 Live that
“we’re going to halve the share of national income going to capital spending.”
That was, of course, Mr David Miliband, Mr Speaker, as you probably remember.
The sharp contrast between anyone called Miliband and Benjamin Disraeli is of course clear to all in the House. That great Prime Minister once said:
“In a progressive country, change is constant;…change…is inevitable.”
The role of Government is to prepare for change, and to plan for the long term. The various measures in the Bill will help to bring about such changes and make a real difference to people’s lives and livelihoods. Let us look at the changes in turn.
First, on roads reform, the Government have announced hundreds of extra lane miles on motorways and trunk roads, and action to improve some of the most important arteries in our country, such as the A303 to the south-west and the A1 Newcastle-Gateshead western bypass. It is fair to say that our work at Stonehenge—the bold engineering work to be done—is probably the most ambitious scheme there since the stone age. It is totemic, as it were, or emblematic of this Government’s willingness to tackle matters that have been neglected for a long time by successive Governments.
Major roads run by the new strategic highways company will create better connectivity and minimise environmental impact. The new name for our strategic highways company will be Highways England. I intend to set it up as soon as possible. The Government have already committed more than £24 billion to upgrade England’s strategic road network through to 2021.
John Mann (Bassetlaw) (Lab)
The people of Elkesley are going to be a little perplexed. The previous Government got rid of the six roundabouts on the A1 within three years of my taking the then Minister there to show him the problem; yet the Elkesley bridge on the A1—I agreed it with the Government in 2009, with the work to begin in 2010—has only just begun to be built during the past year. Why has there been a delay by this Government on a key part of the A1? Is it not because they have not been prepared to spend the money on our roads?
Mr Hayes
The hon. Gentleman knows that Nottinghamshire is dear to my heart, as it is to his. He says that the work has only just begun; well, I have only just become the Minister, haven’t I? I do not say that that coincidence is entirely a correlation between his desire and my effectiveness, but it is certainly true that our improvements to the A1—along its length, actually—will make an immense difference not only to motorists, but to hauliers from my constituency and many others who need to get their goods to market.
The hon. Gentleman will know that we have added more than 1,300 new lane miles, and that we will fix some of the most notorious and long-standing problem areas on the network, such as the entire A303 and the A358 to the south-west, including the tunnel at Stonehenge. The 84 new road projects will improve connectivity across the UK. In addition, we are investing to improve the lives of local communities affected by road upgrades.
Mr Redwood
On the important link to the south-west, did the Government look at the alternative to a tunnel of deviating the road a little further away from Stonehenge —giving generous compensation to landowners—and building a much cheaper road above ground?
Mr Hayes
We considered all the options. My right hon. Friend will know that we undertook considerable research, discussion and consultation on that matter. The scheme we have ended up with has been welcomed by several environmental bodies, such as English Heritage. Of course, each option has pros and cons—I would not be straightforward with the House if I did not acknowledge that—but I think that we have got the right solution.
As with all such schemes, what characterises the Government, above and beyond the desire to think strategically and put funds behind the strategy, is a willingness to look empirically at a range of options. It is very important to be ambitious, but also to be precise, and the way in which we measure the effect of the money we spend has allowed us to allocate funds not only to areas of the road network that have the greatest need, but where we can make the most difference.
The fact that there is £100 million to improve cycling provision at 200 key locations across the network reflects our understanding that it is not just motorists and hauliers who count. There is a £300-million environmental fund to mitigate carbon emissions and reduce the number of people affected by serious noise by up to 250,000. There is £100 million to unlock growth and housing developments.
I have missioned my Department to look closely at the look and feel of what we build. It is absolutely right that the aesthetics are taken into account. If that was good enough for earlier generations, it should be good enough for ours. What we build does not have to be ugly. It can serve a purpose and have an edifying impact on the localities affected.
John Mann
Having condemned the Transport Ministers of the last four years for failing to do the Elkesley bridge and taken all the credit for retrieving the situation, the Minister will know that it is the one bridge that will create a strategic cycle route across the A1 in Nottinghamshire—and, indeed, the east midlands. Will he, therefore, consider how funds can be allocated to ensure that that strategic cycle way is properly incorporated into the cycle path infrastructure of the future?
Mr Hayes
On the general point, the hon. Gentleman will know that the Government have instructed the Highways Agency to look at the impact that all new road schemes will have on the interests of cyclists. That had not been done previously. On the particular point, because I never want to neglect the opportunity or waste the chance of an interface with the hon. Gentleman, I would be delighted to invite him to my Department for a cup of tea and a biscuit—[Hon. Members: “What sort?”] A digestive biscuit. I invite him to the Department to discuss the precise matter that he raises.
Guy Opperman (Hexham) (Con)
May I return to the fundamentals of the Bill? Does the Minister agree that a key issue in the Bill is the implementation of the Wood review? That will have a huge impact on the recoverability of oil and gas—not only in Scotland, but in the north-east of England, which has an oil and gas sector that is growing tremendously.
Mr Speaker
Order. I simply note, in passing, that the Minister of State has not offered his hon. Friend the Member for Hexham (Guy Opperman) a cup of tea or a biscuit, which he proffered generously in the direction of the hon. Member for Bassetlaw (John Mann). Whether the House will read anything into that, I do not know. Perhaps he has it in mind to present the hon. Member for Hexham with a copy of “Coningsby”, “Sybil”, “Tancred” or some other Disraelian creation. We do not know, but we will learn in due course.
Mr Hayes
I may have revealed a prejudice in favour of Nottinghamshire and Lincolnshire, which, as you know, Mr Speaker, are deeply ingrained on my heart. I will seek to counter that when my hon. Friend the Member for Hexham (Guy Opperman) next visits me.
Alongside the transformational investment, we propose to turn the Highways Agency into a Government-owned company, with the Secretary of State as its sole shareholder. The company will have stable, long-term funding that is set through a road investment strategy. Our ambitious programme of investment can be delivered only through a road operator that is fast and efficient and that provides a better service to road users. As a result, it will be able to plan ahead more effectively and deliver best value for money to the taxpayer. The changes are expected to save the taxpayer at least £2.6 billion over the next 10 years. Hon. Members will be familiar with the impact assessment that makes that clear.
The impact on the supply chain of creating a Government-owned company with greater certainty over funding and a clear relationship with Government will be positive. In the past, the construction industry has reacted to new spending on a case-by-case basis, and has not invested in the equipment and skills that would create long-term jobs in road construction.
If I may depart from my script at this point—although the Secretary of State will not worry about that, I can see that civil servants might, but I am going to do it anyway—I should say that I think there is a challenge in delivering this strategy. The Government can devise a strategy on the basis of the empiricism that I mentioned earlier. Bold Governments put money behind that, which is precisely what this brave and bold Government have done, but delivery will be a challenge and we will need to work with a whole range of organisations. The Highways Agency, of course, works with a number of private sector organisations. There are big issues relating to the supply chain and the skills necessary to make this happen. Those challenges would face any Government and they need to be considered carefully. They will require a new energy in respect of the acquisition and development of necessary skills. However, the Bill gives us the opportunity to do just that: the chance to give the construction industry the certainty it needs to invest in people and skills for the long term.
We have also listened and learned on a range of other issues. The British Transport police told us that the drafting of the Road Traffic Act 1988 did not allow it to require vehicle owners to disclose the identity of drivers who committed road traffic offences on the railway. We will change that. We have listened to calls to extend the BTP’s jurisdiction beyond the railway environment to help to protect people.
The provisions on invasive non-native species will allow our environmental officers to address the few cases each year where owners do not allow access to their land to eradicate new species that threaten to spread across the country. Invasive non-native species are estimated to cost the UK economy £1.8 billion a year. They are indiscriminate: they damage gardens, private land, public land, farmland and infrastructure sites.
We have introduced a number of measures designed to help to get Britain building. The small changes we are proposing speed up the approval of nationally significant infrastructure projects, such as the Thames tideway tunnel, road schemes and other major schemes, and will send a clear message to investors and developers that the steps to deliver transformational projects are as simple, sensible and straightforward as possible.
Those who believed that the coalition Government, with all the inevitable pressures and tensions, could not be bold, have been proved, wrong have they not? Among the many examples of boldness, some stand proud. Hinkley Point C, a scheme approved under the improved nationally significant infrastructure projects process, took 17 months to receive planning consent. That compares with more than six years for Sizewell B, including a public inquiry that lasted three years. We think we can do more and that we can improve on that. It is vital that we do so, because these schemes are hugely important. Hinkley Point C will deliver more than 900 skilled jobs for 60 years.
On deemed discharge, we have all seen a piece of land that has been bought, fenced off and ready to be developed, and felt a pang of frustration due to a seemingly inexplicable delay. The measures to discharge planning conditions will ensure that planning applications can get on and be delivered. The Government have already taken action. We have delivered a clear policy in the national planning policy framework and provided fresh guidance, but we need to go further. Recently, a major house builder identified that more than one third of its entire land bank was tied up in the planning system, awaiting reserved matters approval or the discharge of conditions. As a nation, we simply cannot afford to accept unnecessary delays to much-needed development that has already been subject to local scrutiny and granted planning permission.
Mr Raynsford
The Minister talks about deemed discharges and refers to the national planning policy framework. Where a local authority has set a condition that is in conformity with the national planning policy framework, does he believe that it should be subject to deemed discharge?
Mr Hayes
That is a fair question, and one which has already been put to me by those in local government. I will look closely at that, but I am anxious—the right hon. Gentleman is a great expert, given his experience as a Minister and, beyond that, his understanding of house building—and keen to ensure that this does not create unnecessarily bureaucratic or over-regulatory delay. The point he makes is a good one and I will certainly go away and consider it during the passage of the Bill. I say to my right hon. Friend the Member for Wokingham—who has intervened twice and might have another go in a minute, who knows?—that this is a very good example of the Government taking action to make the system more straightforward and less bureaucratic, so that decisions can be made in a timely way and be acted on with appropriate promptness. Wise as they are on these things, I am sure the Opposition will not disagree. Likewise, when they reflect on much of the Bill, I suspect they will appreciate it is the right thing to do in the national interest—but we will hear from them in a few moments.
Public sector land is an important source of land for development, and we have already released land with the capacity for 90,000 new homes, but to make that happen we propose to allow a Government arm’s length body to transfer disused surplus land directly to the Homes and Communities Agency or the Greater London authority, rather than having first to transfer it back to the parent Department. This measure will once again reduce bureaucracy in the transfer of land, meaning that disused Government-owned land can be brought to the market more quickly to build homes and improve communities.
As you know, Mr Speaker, the Government are committed to England’s public forest estate remaining in public ownership—[Hon. Members: “They are now.”] I know Labour is in the woods, but we are committed to the past, present and future of our forests. Hon. Members, including my hon. Friend the Member for Forest of Dean (Mr Harper), have raised their constituents’ interests several times in the House and have influenced the decision to amend the Bill to ensure the measure will not apply to them.
The move to digitise and centralise local land charges and free up the Land Registry to take a wider role will ultimately help people buying and selling their homes. The Government aim to make dealing with property quicker, cheaper and easier. The Land Registry is well placed to help achieve that aim because it is already at the centre of the conveyancing process and is the largest single source of property information. The changes in the Bill will stop the wider disparities in charging, currently ranging from approximately £3 to £76, and will lead to a more efficient service for searches as people access a single provider rather than one of 348 separate providers. We need modern systems to underpin the property market.
On zero-carbon homes, we have already tightened building regulations to make new homes more energy efficient. Today’s new homes save people about £200 on average—
Dr Whitehead
Given the Minister’s concern for linguistic exactitude, will he reflect that he is talking about “zero-carbon homes”, yet he must be clear that the provisions in the Bill mean that no zero-carbon homes will be built now or in the future? Would he care to rephrase his contribution to something such as “slightly less energy leaky homes”, or some such locution, to make his language exact?
Mr Hayes
Even if I believed that, such an ugly turn of phrase would fit ill on my lips, and I could not possibly bring myself to issue it. To that end, I will stick with my own choice of words.
The hon. Gentleman knows, because he is a great expert on these matters—far more expert than I am, I have to acknowledge—today’s new homes save £200 on average on their energy bills compared with homes built before the coalition came to power. He knows that new homes are more energy efficient. I want that energy efficiency to grow, however, so new homes will have net zero-carbon emissions from energy used to heat and light them, and there will be a higher efficiency requirement that may be augmented by on-site renewable energy measures such as solar panels.
Where that is not possible, however, to abate all carbon emissions on-site, the Government will allow developers to offset remaining emissions through off- site carbon abatement measures known as “allowable solutions”—precisely what the hon. Gentleman was referring to—which is a cost effective and practical way of dealing with carbon. I know it does not appeal to the purists, but it is deliverable. Either we want to hit these targets and get to our destination, or we do not.
Joan Walley (Stoke-on-Trent North) (Lab)
I know very well about the Minister’s literary expertise, but why is he giving small-scale developments exemptions from the highest standards?
Mr Hayes
We are doing it on the grounds of practicality. The hon. Lady and I, during a recent session of the Committee she chairs, exchanged thoughts on the issue of emissions. She will know that there is always a balance to be struck. She refers in her intervention to the preferred threshold of 10 units, but as I say there is always a balance between inhibiting or even preventing development at all and achieving our desired outcomes on carbon. I am happy to hear representations on all these matters, as I want this Bill to be as good as it can be. We are trying to strike that balance, which is the frank answer to the hon. Lady—and I am known in this place for giving straightforward and frank answers.
Duncan Hames
The Minister speaks of striking a balance, but I wonder whether he will help us by saying what assessment has been made of the overall impact of the Bill in its entirety on the Government’s ability to meet their legal obligations under the fourth carbon budget?
Mr Hayes
The hon. Gentleman will be familiar with the impact assessment. I have a copy here and I would be happy to let him read it. It is available and if he looks at that impact assessment he will be able to gauge how far we have performed the analysis he describes. If he feels that we have done so insufficiently, I shall be more than happy to correspond with him directly on the matter. I know that he always brings fresh thinking to the consideration of this House.
The Bill will enable communities to be offered the chance to buy a stake in new, commercial renewable electricity schemes in their local area, so that they can gain a greater share in the associated financial benefit. We would consider using this power only if the voluntary approach to community shared ownership in renewable energy did not bear fruit. A right to buy would give communities the opportunity to have a real stake and sense of ownership in projects happening in their area. The Shared Ownership Taskforce recently launched its voluntary framework, and we brought forward an amendment to the Bill in the other place in order to provide greater certainty on the minimum time scales for this voluntary approach to take effect. We are proposing, too, to allow changes to the renewable heat incentive to provide more flexibility in financing arrangements for renewable heating systems.
Let me come on now to what I described as the exciting part of my speech, which deals with the Wood review. We recognise that increasing renewable energy sources is important, but we realise that a dynamic and flourishing oil and gas industry remains important, too. It can contribute to our energy security and to the economy, supporting around 450,000 jobs and showing record capital expenditure in 2013 of around £14 billion.
The Government agreed with the findings of Sir Ian Wood’s independent report, which concluded that changes to the recovery and stewardship regime in the North sea could deliver around £200 billion of additional value to the UK economy. We intend to deliver all of Sir Ian’s recommendations, but further work is required with stakeholders on a number of detailed aspects and parliamentary time is scarce. We are therefore starting by introducing two measures: one will put into statute the principle of maximising economic recovery of petroleum from UK waters; and the second will introduce a power so that the costs of funding a larger, better resourced regulator can be paid for by the industry rather than through general taxation, as is currently the case.
We need to explore all our energy options. This is the age of increasing costs, uncertainty and insecurity in overseas energy suppliers. The shale gas industry in the UK is at an embryonic stage, and the changes in the Bill would simplify the procedure by which onshore gas and oil and deep geothermal developers can obtain underground drilling access, and are accompanied by the industry’s commitment to pay communities in return for the right to use deep-level land. We do not yet know what is commercially viable, but we are encouraging exploration. These provisions will help us to address this question to ensure that the regulation is compatible with these new methods of underground drilling.
There has been a great deal of unfounded scaremongering on the environmental impacts of shale gas, much of it based on examples from other jurisdictions. The Bill does not alter the involvement of local authority planners; nor does it erode in any way the strength of our regulatory regime, the effectiveness of which has been demonstrated over 50 years of development, which is one of the strictest and safest in the world.
Barbara Keeley
I am sure that a number of Members are concerned about it; I am not the only one, although I may be one who has been disturbed most recently by this sort of development in my constituency. The Government should be determined to do the right and the safe thing by communities, but they are not doing so. They are determined to have this rushed through. Indeed, the Prime Minister is determined to win the debate on shale gas. My constituents suffered for the best part of six months from exploration for shale gas. Businesses lost money and people could not sell their homes, yet the whole issue of compensation was never dealt with, and it was the same with the policing of protests. The community in Greater Manchester suffered by having to pay for the policing of the protests, and local people were really damaged by what went on at Barton Moss.
The key point is that none of the arrangements up to now has helped to compensate people in that position by one jot. Random schemes that provide some funding here and there are not the answer; the compensation should go to the people who were hurt.
Mr Hayes
The House has had no greater advocate of the interests of communities in respect of shale gas exploration than my hon. Friend the Member for Fylde (Mark Menzies), who has brought their concerns to the notice of the House on at least two occasions. When I was Energy Minister, I debated those issues with him twice from the Dispatch Box. I made it clear then, and I repeat now, that I am absolutely determined that these things should be done safely and properly, and in tune with the interests of the communities that are affected. That commitment lies at the heart of the Government’s approach, as the hon. Lady should know. I do not want to fall out with her, but she can, I hope, see that my determination—to do the right thing and the safe thing—at least matches hers
Mark Menzies
The Minister is right to point out that I have been campaigning on shale gas regulation for the last four and a half years. I urge him to take this opportunity to reflect on the need for an independent panel of experts. We need to ensure, above all, that all the regulations are viewed impartially and independently, and that, if this goes ahead, we have the safest shale gas regime in the world.
Mr Hayes
I think that my hon. Friend and I should share a secret with the House. Not only did I debate this matter with him in the House, but I visited his constituency, looked at the sites involved, met some of the people who—like the constituents of the hon. Member for Worsley and Eccles South (Barbara Keeley)—were concerned, listened to and learned from them, and determined to do this thing right, on the basis of the empiricism that my hon. Friend has once again recommended.
With—I hope—your permission, Mr Speaker, I shall now proceed with my speech rather more rapidly, because I know that a number of other Members want to contribute to the debate. I do not want to eat up too much of their time, nor do I want to shorten the exciting conclusion of my speech.
Martin Horwood
Is the Minister aware of a new report by Anna Grear of Cardiff law school, which was commissioned by the Bianca Jagger Human Rights Foundation, which deals with the rights to, in particular, a fair hearing and public participation, and which casts some doubt on the Secretary of State’s bold statement on the front of the Bill that all human rights legislation is complied with in the case of fracking?
Mr Hayes
I have no doubts about the Secretary of State for Transport. I am proud and privileged to serve under him in the Department. However, I should be more than happy to debate the issue of natural rights with the hon. Gentleman on any public platform. Perhaps he will invite me to do so at our mutual convenience.
The Bill does not alter the involvement of local authority planners, nor does it erode in any way the strength of our regulatory regime, the effectiveness of which has been demonstrated for a considerable time. In Scotland, “oil and gas” is a reserved matter, and the consent of the Scottish Parliament for the Bill is not required under the Sewel convention. Deep geothermal and petroleum exploration are not included in the 20 subjects on which the Welsh Assembly is currently entitled to legislate. As such, the proposals for oil and gas will apply across the whole of our island nation.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
Will the Minister give way?
Jonathan Edwards
The Smith commission, which is engaged in a cross-party process in Scotland, has made the case that powers over onshore oil and gas licensing should be devolved to the Scottish Parliament. Over the weekend, the Welsh Labour Government made the case that they should have similar powers. Will the United Kingdom Government use this Bill to enact the promises made to the people of Scotland and the wishes of the Welsh Government?
Mr Hayes
I am going to make progress. I have been incredibly, and typically, generous, and I want to draw my remarks to a conclusion. [Hon. Members: “One more!”] Members are testing my generosity, but I do not want to lose my reputation for being the nicest man in the House, so I shall give way to the hon. Gentleman.
Ian Lucas
I am most grateful to the right hon. Gentleman for giving way; I think I am the only Member he has refused to give way to thus far in this debate.
The concern we in Wrexham have is not whether fracking is dealt with by the Welsh Government or the UK Government but whether it is safe. This is a novel process, and the right hon. Gentleman keeps referring to the planning process not having been changed. Does he understand that this new process is causing genuine concern to many people, and that we need to work much harder to persuade honest people that there is no cause for concern, if, indeed, that is the case?
Mr Hayes
With a certain elegance, the hon. Gentleman has conflated three matters and I shall try to deal with each of them. He talked about the planning process and he is right that it is not directly affected by this Bill, but it is also right that we need to make sure that information is made available in digestible form. He then mentioned safety. The Environment Agency continues to have responsibility for safety in this regard, as it always has, and some of the particular issues, such as waste water, have been dealt with by the EA—as they are in all water-intensive industries, by the way—and will continue to be so. Thirdly, the hon. Gentleman talked about broadcasting the right kind of information in the right way to the right people, and that is precisely why as Energy Minister I established the Office of Unconventional Gas and Oil, but he is right that we can do more, we must do more and we will do more to assuage doubts, to scotch those false assumptions that people have, and to make it clear that this can be done properly and safely in all our interests.
The Bill will allow Her Majesty’s Revenue and Customs to participate in the extractive industries transparency initiative and meet the UK’s commitment on higher international transparency standards.
Some of the changes in the Bill, like driving forward development of our shale gas reserves or reforming the Highways Agency, are potentially hugely transformative, while others may right smaller wrongs, but taken together they will undoubtedly deliver benefits that can be felt by people and communities right across the UK. In this Bill we have measures from seven Government Departments—which is why I have taken rather longer than I might have done ordinarily to make the case for this important measure. That is evidence that the Government see infrastructure not through a single lens, but as a kaleidoscope of interconnected elements. Whether it is building and maintaining our strategic roads, major schemes such as HS2 or nuclear power stations, housing developments such as new garden cities, or new industries such as shale and geothermal, or existing ones such as North sea oil, we must never lose our focus on the big prize—invest, improve, build, develop, and ultimately prosper.
Let us no longer look back in anger on the bad days of under-investment and mismanagement. I am not going to focus on the previous Government’s many failures; let us instead focus with the anticipation of a long-distance runner on the exciting road ahead.
Too often the stance of the Labour party on these matters brings to mind the conversation between Alice and the Cheshire Cat as envisioned by Lewis Carroll. Alice asked to know
“‘Which way I ought to go from here?’
‘That depends a good deal on where you want to get to,’ said the Cat.
‘I don't much care where—’ said Alice.
‘Then it doesn't matter which way you go,’ said the Cat.”
Sadly, the Labour party remains in Wonderland: stuck down the rabbit hole, and presenting the economy with a bottle labelled “drink me.” In contrast to Labour’s shrinking potion, the measures in this Bill promise an effect similar to the cake labelled “eat me”: measures that enable the economy to grow at the same burgeoning pace.
I simply say this to the Opposition: they must be careful. As Disraeli once said:
“It is easier to be critical than correct.”
There are times for clever criticisms and there are times for meaningful scrutiny; times for short-term hard-edged politics, and a time for the long view. The Opposition should recognise that the time for this Bill has surely come.
This is a Bill fashioned by a Government determined to do the people’s will, and a Minster who, as the Opposition know, is the people’s voice. This Government with this Bill confirm our courage and our willingness to put long-term thinking at the heart of our programme. This Government with this Bill concrete our confidence—confidence in a vision that is bold and ambitious for Britain. This Government with this Bill cement our reputation as a regime. There is hope for our nation’s future, a future for our people as glorious as our past. I commend the Bill to the House.
Richard Burden
My hon. Friend is right on that point. As well as being a shadow Minister with responsibility for roads, I have the honour of chairing the all-party motor group. Fortunately, the days of seeing the motor vehicle as an inevitable enemy of environmental protection are long gone. There is a great deal of innovation going on in the automotive industry. Although the hon. Lady has some very serious points to make, she should understand who brought in the Climate Change Act 2008, and who was Energy Secretary when some of the best initiatives on preserving the environment were taken in Britain. That should give her a little more confidence that the Opposition take our environmental responsibilities seriously.
Another area that the Bill does not tackle is that of local roads. The Minister talks about a roads revolution, but in reality this Bill addresses just 2% of the road network, as 98% of the roads in this country are local roads. Two-thirds of traffic is on local roads. Motorists, pedestrians, cyclists, HGV drivers and motorcyclists all rely on roads to get around. Nearly all our journeys start and finish on local roads, but it is those roads that are the most creaking part of our road infrastructure. A third of local roads are in urgent need of attention. There is a £12 billion pothole backlog that will take 12 years to fix, and congestion on local roads is set to rise by 61% by 2040. A record 91% of the public are dissatisfied with the condition of local roads. Nearly 90% of businesses surveyed by the CBI expect local roads to get worse, not better. That is not surprising, because spending on local road maintenance is down 11% since 2010. Under this Government, it will decline further in real terms by 2020. There is a risk that the Bill will make the situation worse.
Local government and transport campaigners have warned that giving strategic roads management to an arm’s length company could create a two-tier road system, pushing traffic on to local roads and into our towns and cities. We need proper joined-up planning between strategic and local road networks, with devolved bodies and local authorities having greater powers over local transport and traffic management to tackle congestion. That is why we on the Opposition Benches are committed to English devolution. City regions face huge congestion pressure between now and 2040. They are planning their 20-year growth strategies, and need confidence that the Highways Agency, or whatever it is called, is working to similar horizons. We need an independent commission to take that long-term view.
Ring-fencing money for environmental protection, innovation, cycling and safety is important, which is why I am pleased that there is a £100 million budget for cycling on strategic roads. The problem is that it is yet another one-off announcement. It is not the long-term commitment to funding to get Britain cycling. As far as I can tell, the Department for Transport still has no clear budget for cycling, and funding is set to end by 2016 when the local sustainable transport fund finishes. It seems ludicrous that we will have five years of that.
After two years of calling for safety targets to be reinstated, I am pleased that the Government have finally recognised that axing them was a mistake. It is good to see in the road investment strategy a target to cut deaths and serious injuries by 40% on strategic roads by 2020. However, if it is right to have road safety targets for the strategic road network, why cannot we have safety commitments and targets for all UK roads?
It seems ludicrous that we will have five years of road and rail plans that will not be joined up. One of the most pressing transport problems is that, too often, decisions on road, rail and airports are taken in individual silos. Investments are not joined up and maximised. The Government’s proposals to study the options for HS3 include a tunnel under the Peak district and other trans-Pennine road improvements, but they are being considered separately when they should be looked at together. Where is the requirement for the new company and Network Rail to share forecasts, and to map and plan investment in a co-ordinated way?
Richard Burden
I am grateful to the Minister. I am sure we can pursue and discuss the matter in Committee if the Bill gets that far.
My final point—perhaps the Minister has reassuring words on this—is whether the new agency will have adequate accountability, which the right hon. Member for Wokingham (Mr Redwood) mentioned. Passenger Focus will be renamed Transport Focus because it will have a responsibility for roads as well as for rail and bus. Why is there still a silo mentality on the Office of the Rail Regulator, even though it will have a monitoring role? After pressure from the Opposition in the other place to give the new body more powers, it cannot be a regulator of roads. In the Bill, Transport Focus can represent only people who use strategic roads—it will not represent pedestrians or cyclists who use local roads, or motorists who are frustrated with conditions on local roads. I hope we can look at that if the Bill gets as far as Committee. With the recent ruling on the UK’s air quality infraction, should not a watchdog consider the environmental impact of any new company?
What about the Minister’s accountability to Parliament? Will hon. Members be able to table parliamentary questions and have proper debates on roads, whether in the Chamber or in Westminster Hall, or will we get letters from the chief executive of the new body instead? The chief executive of the Highways Agency has said that the reform will enable it to “set its own destiny”. The public depend on roads for daily life, so is that what we want? We will want to look at that closely in Committee if the Bill gets that far, and I hope the Minister reflects on it.
The Opposition support the extension of powers for the British Transport police to obtain driver information and take enforcement action outside the railways. That proposal was tabled by Lord Faulkner in the other place, with the Opposition’s support. It is an absurd situation when trained and effective British Transport police officers have to ask permission to take enforcement action on land outside railway jurisdiction. That makes no sense to the public. I hope the Minister will comment, today or later, on how that relates to the Smith commission recommendation that the British Transport police should be devolved.
The Opposition support a proper control regime for invasive non-native species, but we do not believe the Bill is fit for purpose. After the badger cull chaos, the Government listened to pressure from animal rights campaigners, wildlife groups, the National Farmers Union and Labour, and it is good that they included animal welfare protections in the regime. However, although there are three distinct categories of species in the Bill—native, former native and non-native—the definitions still seem problematic. We expect the Government to look at the EU habitats directive for those definitions, and will seek assurances that specific species such as the beaver will be given legal protection.
The Bill also includes a number of changes to the planning regime, none of which seem to go anywhere near addressing the housing crisis facing Britain today. Effective and efficient planning is vital, and we will support sensible changes to deliver a timely planning system, especially for nationally significant infrastructure projects. We want the Bill to define what the public can expect from garden cities in terms of high-quality design and sustainability for strong and inclusive communities for the future. My hon. Friend the Member for City of Durham will expand on that point later, say why the Bill fails to ensure that building standards reduce CO2 sufficiently, and explain our position on deemed discharge, land transfers to the Homes and Communities Agency, and the Land Registry. Suffice it to say that a trend seems to be emerging with the Government’s Land Registry reforms, which still seem rather confused, and they appear to have made a U-turn on putting those at arm’s length. Perhaps the most glaring omission on housing and land use is the fact that the Bill contains no acknowledgment of the housing crisis our country faces, of what the Lyons review said, or that Labour is right to call for ambitious reforms and 200,000 extra homes to be built a year. This Bill is a far cry from that.
Part 5 sets out a number of provisions on energy. Getting energy policy right is critical to our economy and vital to enable all infrastructure sectors to function. It is therefore a shame that the Bill contains no ambitious commitment or strategy to ensure that the UK will meet growing demand in a sustainable way. The Bill sets out a new community right for a stake in renewable energy schemes—that is fine, although we do not think it goes far enough—and it is good that it implements Wood review proposals for increasing oil and gas extraction, which have cross-party support. However, the issue that I am sure generates the most interest, both inside and outside the House, is in clauses 38 to 43 on underground access to shale and geothermal energy—there have already been questions on that.
Richard Burden
I must say that I am a little confused by the hon. Gentleman’s point. As I understand it, the current situation, even without this Bill, is that shale gas extraction can happen in Scotland only with the approval of the Government in Holyrood. I also understand—perhaps he will correct me if I am wrong—that the Scottish Government, despite having an effective veto over any development in Scotland, actually voted against a shale gas moratorium earlier this year. He is right that the Smith commission has recommended the devolution of mineral access rights and the licensing process to Scotland. If this goes as far as Committee, I am sure that the issue will be explored there.
Labour is committed to the decarbonisation of the power sector by 2030 and to reducing our carbon emissions in line with the Climate Change Act 2008.
Mr Hayes
Before the hon. Gentleman moves on from shale gas, and leaving aside the issue of where power is exercised and how close that is to its effects, let me repeat that we recognise that this is an embryonic industry. We are very happy, during the course of the Bill’s consideration, to listen to reasonable overtures about safety and other matters such as those that have been raised in this House.
Richard Burden
I am grateful for the Minister’s comments.
As the Committee on Climate Change has said, within our legally binding carbon targets, gas can have a role to play as part of a balanced energy mix, along with renewables, nuclear, and carbon capture and storage. With 80% of our homes reliant on gas for heating, and in the context of declining North sea oil production, indigenous shale gas production may have a beneficial impact on our energy security. However, only by fully addressing legitimate environmental and safety concerns about fracking, with the kind of robust regulation that I have been talking about, with comprehensive monitoring and strict enforcement, will we give people confidence that the exploration and possible extraction of shale gas is safe and a reliable source that can contribute to the UK’s energy mix. That is why we are seeking to amend the Bill in Committee to ensure that any fracking could happen only under robust safety and environmental standards.
The issue of underground access rights is separate from the environmental and safety framework. It does not affect the requirement for consent to be sought for exploration and extraction through planning and relevant environmental permitting processes. Any application sanctioned by local authorities will require a strict environmental assessment. Other industries requiring underground access—such as coal mining, water, sewerage, and gas transportation pipelines—already have underground access rights without requiring the landowner’s permission. In principle, we do not oppose the reforms to underground access. However, we will continue to push for the environmental framework to be strengthened, and for assurances that the responsibility for clean-up costs and the liability for any untoward consequences rest fairly and squarely with the industry, not with taxpayers or homeowners.
Important regulatory questions must be answered before large-scale extraction can begin, but Conservative Ministers have so far chosen to ignore those legitimate environmental concerns rather than address them and provide safeguards for communities. That is why we will table amendments to close a number of loopholes in the existing regulatory framework. My hon. Friend the Member for Rutherglen and Hamilton West will set those out in detail in Committee. We are taking a responsible approach. People will have confidence that shale gas is a safe and reliable source only if this Government provide robust regulations, set out a comprehensive monitoring process, and ensure strict enforcement of exploration and extraction. Sadly, we heard no such assurances from the Minister.
The Bill has some important provisions to help to facilitate and improve national infrastructure planning, but too many parts are weak or confused. Above all, it is no match for the infrastructure challenges that face the UK in transport, in housing, and in energy. That is why Labour wants an independent commission to set out the priorities and strategy that we need to deliver—not just announce, re-announce, and re-announce again—the infrastructure that the UK so urgently needs.
Charles Hendry
I hope that those issues are entirely legitimate to raise within the planning process. Those matters should be looked at in that way to decide whether an activity is or is not appropriate, and I believe that the right processes are in place to ensure that that happens.
As the shadow spokesman, the hon. Member for Birmingham, Northfield, said, the proposed underground access is not exceptional; it already happens for cables, gas pipelines, tunnels and coal mining. As the debate is taken forward, I hope that we can reassure people that we are not doing something draconian or very different, but simply allowing a change that brings the activity into line with others.
I hope that the Bill can still be amended in one area, however, so that it addresses an issue of gas security at the same time. The focus on the North sea and shale gas highlights our vulnerability on energy security. As a country, we are already dependent on imported gas. Historically, the North sea was our gas-storage capability—when we needed more, we pumped out a bit more—which is why we have never stored the same volumes of gas as the French and the Germans. As we move into a period of dependency on gas imports, we need to look again at gas storage.
That is particularly true in the current climate, with the oil price where it is. The risk from the oil price’s being lower than it was just a few months ago is that the North sea will be harder to sustain in the longer term. It is one of the most expensive basins in the world, and there is therefore a risk that some fields will be closed down earlier. They will be abandoned, and it will not be possible to reopen them. At the same time, a low oil price—the gas linkage comes into that—means that UK shale may, because of its cost, be harder or simply not economic to extract. We therefore need to consider how to preserve our security of supply, which means looking again at gas storage.
We should pay tribute to, and recognise, the tremendous difference made by the liquefied natural gas terminals in the Thames and in south Wales, and the important contribution made by pipeline infrastructure from Norway—Langeled, for example—and what it has brought to this debate. However, looking back at gas issues over the past eight years or so, I think that we came too close for comfort during four winters, overwhelmingly because of factors over which we had no control.
The first time was in 2006, when there was a fire in our main gas storage facility at Rough. In 2009, there was the Russia-Ukraine dispute. Even though we were as far away in Europe as we could have been from those issues, gas was coming in through one interconnector and the same volume was going out through the interconnector next door to meet the demand in continental Europe. Eighteen months ago, the winter before last, we came within a few hours of running out of gas because the winter was so long and cold. We cannot leave the situation to chance. We need to take action now to guarantee our energy security for the future.
I believe fundamentally in market principles and approaches, but the market approach has not delivered the level of new investment that we would wish to see in this area. My right hon. Friend the Minister, who introduced the debate, well knows my views on this matter. We had a discussion a day or so after he took over from me as the Minister of State; I said that the one thing on which I wished we had done more was gas storage. I still hold that view today—perhaps even more strongly.
Charles Hendry
My right hon. Friend took the agenda forward on this matter and I hope that he will have a sympathetic ear.
John McDonnell (Hayes and Harlington) (Lab)
I agree with every word that the right hon. Member for Hazel Grove (Sir Andrew Stunell) has just said. His speech follows on from the constructive work that he did when he was in the Department for Communities and Local Government.
Having learned that we are burning fossil fuels and bringing about climate change on such a scale that it could destroy our planet, I find it almost insane that we should be bringing forward proposals that would mean our relying on another form of fossil fuel. I totally oppose the development of fracking in this country.
I shall concentrate on part 1, which deals with the Highways Agency and the road network. Sometimes I feel like shaking people in this building. There seems to be a loss of collective memory. Part 1 is the first stage towards the privatisation of our road network and it is on the same scale as the privatisations of rail, water and energy under the previous Conservative Government. I have the same dystopian vision of what will happen: once a GoCo has been set up, it will be broken up into regional franchises and sold off, almost inevitably to foreign-owned companies, most of them state run, exactly as 80% of the rail industry has been sold off. The story of the energy and water industries has been similar. There will then be the introduction of tolls, exactly as laid out in the Government’s response to the Transport Committee, and the tolls will fund exorbitant profiteering by those companies.
The House needs to wake up and recognise that the Bill represents the privatisation of our roads. We should be honest with the electorate and warn people that that is the consequence of the Bill. Why am I saying that? It is evidenced by what has gone on throughout this Government and previously. There is a loss of collective memory of what happened when the Conservatives were last in government. Throughout the 1992 to 1997 Administration, there were proposals to build on the privatisation of rail, water and energy by also privatising roads. In 1992 the Government published “Paying for Better Motorways”, in which they said that they would establish a single Government-owned company funded by road levies—that is, tolls—and possibly break it down into a number of privatised regional franchises, as has happened with rail and water. That was the Conservatives’ plan when they were last in power; now it is being implemented under a coalition Government. I hope some of the coalition partners wake up to the consequences of the Bill.
What other evidence is there? The plan is evidenced by the appointments that the Government have made to the Highways Agency. They brought in Tom Smith. Who is Tom Smith? He has just been put on the Highways Agency board. He is the chief executive officer of the M6 toll road. The Government brought in Elaine Holt. What was she? She was headhunted by the Department for Transport to lead on the east coast railway line—first in public sector management, but then to prepare it for privatisation.
All the evidence is there of the Government preparing for the privatisation of our roads. We saw it with the A14. The more recent proposals for the improvement of the A14 included tolling on that road, but there was such public uproar that even the Government had to pull back. We saw the evidence in the Government’s response to the Transport Committee. Paragraph 79 states:
“The Government will consider tolling as a means of funding new road capacity on the strategic road network. New road capacity would include entirely new roads and existing roads where they are transformed by an improvement scheme”
—that is, the investment programme announced last week. The strategy, as far as I can see, is to invest as much public money as possible to bring the roads up to a certain standard in the current period so that they can be privatised under the new agency that will then be broken up into regional franchises.
I note that clause 1 refers not to “a highways company” but to “highways companies”, to enable the Secretary of State to amend the legislation, under the Henry VIII clause later in the Bill, to enable regional franchises to be set up. I warn all the travelling public—motorists, cyclists, pedestrians and others—that our road network is about to be sold off, they will soon be fleeced by tolls and the tolls will subsidise the private profits of foreign companies. If anything provides evidence of that, it is the example of what happened to rail, energy and water when the Conservative party was last in government.
Having said all that, I wish to raise a number of issues on which I would like a response during the debate. I am concerned about the 3,500 staff, who, until now, have been commended for their hard work, commitment and professionalism. What will happen to them? TUPE is not provided for in the Bill. We have argued for it time and again, and in the past four and a half years TUPE has been put into only one Bill. All we have been given, yet again, are assurances that the staff will be covered by COSOP, the Cabinet Office statement of practice on staff transfers in the public sector—the protocol agreement similar to TUPE, but not as enforceable. I reiterate that to give the 3,500 staff greater security we should insert a TUPE commitment in the Bill.
There are arguments to be made about the financial savings and the claim that they will be £2.4 billion. I note the debate over whether VAT is to be charged. First, the Treasury denied that the VAT would be saved and therefore the cost could be, over six years, some £2.4 billion—almost the savings the Government are seeking to find. Then, in the other place, we were told that there was a guarantee that VAT would not be charged. I think that is open to legal challenge. We need greater certainty, otherwise this whole operation will be jeopardised from the beginning.
We also need more details about the monitoring exercise, as we have a monitoring body that is not a regulator, no complaints procedure, and no information about the costings or the investment in the operation of the body. One of the worst aspects of privatisations in the past has been the way that remuneration at the top has gone through the roof while wages elsewhere in the organisations have not risen. We are told that remuneration will somehow be controlled through a central review. I do not think such constraints have worked elsewhere when these agencies have been set up—quite the reverse. I would like to see a ratio put in place between the highest paid and those who are on average earnings in the organisation. In that way we may be able to control the overall levels of remuneration in the future.
I am also concerned about clause 17, the Henry VIII clause, which puts such wide-ranging powers into the hands of the Secretary of State. We have now been assured that, through clause 46, the affirmative procedure will apply in respect of any changes in the legislation to be undertaken by the Secretary of State, but I am not convinced that that procedure gives those democratic protections of accountability to this House. I urge that the super-affirmative procedure be looked at.
Mr Hayes
I am reluctant to interrupt the hon. Gentleman but I want to make it perfectly clear that the Government and this Minister—I am the roads Minister, after all—have no intention of privatising our roads; have no intention of not having clear lines of accountability to both Government and this House for the work of the new agency; will set the priorities; will set the strategy; and will hold those responsible for delivering it accountable. I do not want to spoil the party, but I am afraid that he is fantasising.
John McDonnell
The Minister has not spoiled the party because I have no confidence or trust that this Government will not privatise. Assurances have been given on the Floor of the House about privatisation before and it has gone ahead. This Bill is the first step towards privatisation and towards introducing tolling on our roads—a new form of funding the road network that will be open to profiteering by foreign companies. I warn this House that if it passes this legislation, it will put at risk our road network in the future, our taxpayers and the future environmental policies that might be able to protect us against climate change.
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
I will not detain the House for long, so that remaining Members get a chance to speak. I have just a few points to raise, as many issues have been dealt with exhaustively. My hon. Friends the Members for Wealden (Charles Hendry) and for Castle Point (Rebecca Harris) spoke about gas storage. As I understand it, enough applications for gas storage have already been approved, but they have not been carried through. I raise the matter because Halite in my constituency has made an application for gas storage. It has been turned down three times—once by the previous Government and twice by this Government. It is now on its fourth application. I just want to underline the fact that we in the area are against that permission being granted, and I have the support of my hon. Friends the Members for Blackpool North and Cleveleys (Paul Maynard), for Fylde (Mark Menzies) and for Wyre and Preston North (Mr Wallace). This is to do not with gas storage in the future but with the issue of approvals. The application from Preesall in Lancashire has not been approved and has been turned down three times. I just wanted to put the record straight on that.
The hon. Member for Bassetlaw (John Mann) mentioned the matter of neighbourhood planning and raised some very sensible points. He and the hon. Member for Stretford and Urmston (Kate Green) talked about the ability locally to influence not just the number of houses but the style of houses. I wish I was in the position of my hon. Friend the Member for Stevenage (Stephen McPartland) and able to get approval for a few more bungalows, so that older people could downsize but stay in the villages where they have always lived. I hope that the Bill delivers some real power to neighbourhood planning, as local people need a say in the type of housing required.
As Members expect, my main point is to do with clauses 38 to 40 in part 5 on geothermal energy—or fracking. Clause 38 (1) says:
“A person has the right to use deep-level land in any way for the purposes of exploiting petroleum or deep geothermal energy.”
As I understand it, the Government are trying to win popular support for fracking. To have such a clause in the Bill will act as a red rag to a bull. That subsection is reinforced by clause 39 (3), which says:
“The right of use includes the right to leave deep-level land in a different condition from the condition it was in before an exercise of the right of use (including by leaving any infrastructure of substance in the land).”
Whoever secures such a right can leave whatever they want below the land. As the hon. Member for Angus (Mr Weir) said, a system already exists for securing such rights—people could argue their case before the courts. We are now removing that right. Some Members, such as my right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley), for whom I have a great deal of respect, are telling me that there is nothing new in that, citing the example of the coal industry. Come to parts of Lancashire and see the ravages of the coal industry and coal mining in terms of subsidence and the fall in housing values, and tell me about support. If there are Members who believe in the issue and wish to win the political and community argument, I suggest that fewer references are made to the depredations of coal.
Unlike the hon. Members for Wrexham (Ian Lucas) and for Angus, I have no ideological argument against shale, but what many of us in Lancashire have said about winning the debate is that, unlike coal and other massive developments, there should be a real return for the people most affected. A number of Members, across parties, have been trying extremely hard to get that message across. To some extent, there has been some give. The references that the Chancellor and the Secretary of State made to a sovereign wealth fund, which some of us argued for on behalf of Lancashire but which has now become a sovereign wealth fund for the north—I have some views about Yorkshire sharing in anything that we produce—shows that there has been movement.
The argument is that it is the people most affected and closest to the operation, not just the Chancellor and the companies, who should get the long-term dividend from the operation. However, the Bill does not define the payment scheme. Clause 41(1) states:
“The Secretary of State may, by regulations, require relevant energy undertakings”
to make payments. I know that that is the terminology we use in the construction of Bills and laws, but the Government are trying to win an argument about the need to develop shale as rapidly as possible. I buy some of those arguments. I buy the argument on the need to replace coal, and the argument that renewables will not certainly exist in the quantities we need to fill the gap. I buy the argument that gas may lower carbon emissions for the time being. However, I do not believe that clauses such as those in such a complicated Bill will win anybody over in my part of Lancashire. People will not have the confidence that their concerns are being dealt with effectively until Ministers come forward and explain the situation.
Whatever happens with fracking—the security of the aquifers and the rest of it—it will, at the very minimum, cause disruption. I have argued long and hard in the House. I understand that Ministers are beginning to listen, but currently their argument is back to front. They should have come forward with much more definite answers. What are the returns for people in Lancashire who will be putting up with that new industry? Currently, I am not able to support that part of the Bill.
Mr Hayes
I hope I can persuade my hon. Friend to support the Bill on this basis: as a result of the arguments he and others have made, including the arguments made by Opposition Members during my speech, I will be happy to convene a meeting with Members who have concerns about the community interest in the exploitation of shale. We have debated that in the House and I have spoken about it. I am more than happy to ask the Department of Energy and Climate Change to convene such a meeting. I hope, on that basis, that my hon. Friend will change his mind about supporting the Bill.
Eric Ollerenshaw
I am grateful to the Minister, but with great respect—I have great respect for him as a Minister—we have had meetings and more meetings, and I have to go back to Lancashire and explain to people what the Bill means. As I have said, I understand the terminology we use, but when it comes to my support for the Bill, I am not convinced tonight that I have a definite figure for the benefit for Lancashire.
Mark Menzies (Fylde) (Con)
It is a great pleasure to be called to finish the Back-Bench contributions to the debate. I wish to touch upon a number of items in the Bill, but I will focus primarily on one specific area. Right hon. and hon. Members on both sides have used various terms to describe the Bill, including a rag-tag Bill. I prefer to call it a Christmas tree Bill, given that we are in the festive season, because many things appear to have been hung on it.
I will first mention one point the hon. Member for Stretford and Urmston (Kate Green) made on the design of new homes. She touched on something that is incredibly important for my constituency, which has an older population and where a considerable number of new houses are being built. The overwhelming majority of those new houses have bedrooms and bathrooms upstairs and living accommodation downstairs, but not living accommodation that could easily be reconfigured to cater for the needs of someone who is disabled or could become disabled, or who would not wish to have a chair lift fitted when they grow older or to move home. I urge the Government to give some serious thought to what measures could be introduced to encourage developers to build some future-proofing into new houses as they are being designed and as they go through the planning stage, because at the moment one size certainly does not fit all.
My purpose in rising tonight is to talk about an issue that concerns my constituency and that many other right hon. and hon. Member have touched upon: shale gas and fracking. It was back in 2011 that I secured my first Adjournment debate on the matter, and I have had subsequent Westminster Hall debates, in which my hon. Friends the Members for Lancaster and Fleetwood (Eric Ollerenshaw) and for Blackpool North and Cleveleys (Paul Maynard) participated.
One of the things I called for in 2011 was the establishment of an independent body to oversee shale gas regulation. The purpose was not to supersede the regulators, but to ensure that the regulations that were in place and were likely to be in place were fit for purpose. It was partly as a result of that call that the Office of Unconventional Gas and Oil was born. I know that it was the Minister here tonight, my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes), who was responsible for establishing that body, but I think that since he left the Department that body has not continued to flourish in the way he had originally intended. I ask the Government to ensure that that body is fit for purpose and adequately resourced and that it looks at issues such as community engagement and involvement, because that is one of the things that has fallen by the wayside.
It is not sufficient to say that the regulations are robust and adequate; we must demonstrate that they are robust and adequate. We must also have enforcement on the ground. For the Health and Safety Executive, which is based in Aberdeen, to say that it can do all that from Aberdeen without any presence on the ground in Lancashire is completely unacceptable to me, to my constituents and to people in Lancashire. If it wants to have a serious role—it is the only body that can have a serious role in this—I think that it has to have a permanent presence in Lancashire, and not just at the development stage, but from the earliest point of the exploration phase.
That brings me to the Environment Agency, which should have responsibility, above all agencies, for ensuring the safe and thorough regulation of environmental aspects. It really concerned me when a colleague who is a Lancashire county councillor highlighted to me that Lancashire county council had been in discussion with both Cuadrilla and the Environment Agency over the site at Preese Hall, which is located in my constituency. The council requested that the Environment Agency monitor the site for a period of up to five years. It then discovered that it had no powers to compel the Environment Agency to conduct that monitoring. The agency expressed reluctance, or even refused, to conduct environmental monitoring at the site and said that that obligation should fall on Cuadrilla.
Mr Hayes
My hon. Friend knows, as you do, Mr Deputy Speaker, that I eat reluctant bureaucrats for breakfast. If there is any such reluctance on the part of the Environment Agency, Ministers must ensure that it is aware of its responsibilities in this regard. I pledged to have a meeting with concerned colleagues, and I am more than happy to explore at that meeting what extra measures we need to put in place to ensure that the Environment Agency does its job. I am not aware that it is not doing it, but if there is a problem, let us for heaven’s sake deal with it.
Mark Menzies
I thank my right hon. Friend for that assurance.
As the hon. Member for Birmingham, Northfield (Richard Burden) said, when the Bill gets into Committee we will have to be rigorous and specific in considering certain amendments as to how we can improve regulation and its enforcement, and make sure that that regulation is absolutely robust. If I had had the opportunity to intervene on him, I would have welcomed his sentiments on that point, which, to be fair, the Minister also made in his opening speech. Based on those two assurances, I will support the Bill’s Second Reading. However, I will be unable to support its further progress if, in Committee, we are unable to improve regulation and I do not get assurances on how it will be enforced. That would cause me great sadness, because the Bill contains many good things that are unrelated to shale gas.
It is important that Labour Members do not fall into the trap of seeking to turn this into a party political football. The licence round in my constituency was awarded under the previous Labour Government; indeed, the Leader of the Opposition may even have been Energy Secretary at the time. It is therefore beholden on them to make sure that regulation is in place. It is no good their now saying that they do not support shale gas fracking, because if that was their sentiment when the Leader of the Opposition was Secretary of State, they should not have ventured down that path to start with. We must work together on behalf of our communities to ensure that regulation is robust. If it is not, and we get to a point where this cannot be done safely, then the only way to proceed is to say, “Thank you very much, but it’s not right for us.”
I want to make a point to those on both Front Benches about planning processes. Two planning applications are before Lancashire county council. I have deliberately avoided getting involved in trying to influence its decision one way or the other, because I firmly believe that it is the role first and foremost of a planning committee— in this case, the council’s mineral rights authority—to consider the merits and the negatives of a planning application. If it feels, as a result of due deliberation, that rejecting one or both sites is the right thing to do, we must accept its will. It would be wrong to trigger a process of judicial reviews and central Government seeking to overturn that decision. I believe, above all, in the importance of localism and of taking local people with us on these matters. If local councillors feel that they have taken the right decision, we must stand by them on that. There can be no easy way out and no expectation that someone further up the food chain will take a difficult decision for us. If the answer is no, then that is where we have to be.
If shale gas fracking does proceed and inspections start to take place, they must include a large number of unannounced inspections. It is no good letting the operator know when the inspectors are coming, although there will be times when that is necessary. Unannounced, and rigorous, inspections have to be the core of what we are seeking to do.
I say to Government Front Benchers that for the past four years I have worked to highlight the concerns of my local residents. I have also worked with various Ministers to make sure that we can improve the process under discussion. The caveat of my support has always been to make sure that the regulation is robust and that it can be done safely, but if it cannot be done safely it should not be done at all.
Roberta Blackman-Woods
The hon. Gentleman will have to wait to hear what I will say about the range of provisions in the Bill.
More alarmingly, the Bill could make things worse by diverting expenditure from the road network used by 67% of traffic. These are the very roads that need urgent attention in terms of the £12 billion funding black hole for potholes, not to mention measures to reduce congestion. Most tellingly, all this means that 91% of the public are dissatisfied with the state of the roads, which the Government surely need to address.
I am going to come on to the planning measures—or rather, the lack of them—in a minute, but it is obvious to everyone except this Government that meeting our infrastructure needs requires joined-up planning between strategic and local networks. That is the sort of devolution of powers that Labour is proposing—giving powers to local authorities, either singly or in combination, so that they can plan for the needs of the area—but we see no joined-up thinking coming from this Government. All the Bill does is to propose minor changes to the national infrastructure planning regime to allow two inspectors to sit on the panel of an examining authority and to allow the Secretary of State to make changes to development consent orders once they are made.
A recent report by the London School of Economics—one of the many recent reports on this topic—argues for a new approach to infrastructure in this country. Labour has grasped that, which is why we set up the Armitt review to look at how we should approach the planning and delivery of national infrastructure projects. Armitt accepts much of the Planning Act 2008, but argues for an independent national infrastructure commission and cross-party agreement to prevent the start-stop regime that is often experienced by major infrastructure projects. To tackle that, we shall table amendments in Committee to try to persuade the Government of the sense of adopting the Armitt proposals.
Mr Hayes
Just to be absolutely clear, the feasibility studies that we carried out on the major road schemes that I outlined were on the basis of a dialogue with all the local agencies through a series of stakeholder events in which I was involved personally and the proper analysis of local needs and how they interface with the major schemes. I would not want the hon. Lady to have the misguided impression that we were not diligent in the process by which we devised our roads strategy.