Julian Smith
Main Page: Julian Smith (Conservative - Skipton and Ripon)
Mr Davey
I think that the right hon. Lady is quoting from the Pew report, but those data were provisional. According to the new data recorded by Bloomberg, investment is twice as much. I am afraid that she needs to do her homework before she comes to the House.
Unlike the right hon. Lady, we have made good progress on the green investment bank. The recruitment of the bank’s chair and senior independent director is under way. [Hon. Members: “Where’s the progress?”] The right hon. Lady and the hon. Member for Liverpool, Wavertree (Luciana Berger) need to calm down. If they do, they will hear that 32 bids were submitted to host the bank, which suggests an awful lot of interest and attraction. Those bids have come from right across the country. It is because of such interest that we have allowed extra time to ensure that we make the right decision on the location of the bank. Right hon. and hon. Members seeking to have the bank in their constituency ought to give credit to the Government for taking their representations seriously.
Julian Smith (Skipton and Ripon) (Con)
Will the Secretary of State confirm that the Leeds city region has made an excellent bid for the green investment bank? It is, I hope, one of the best bids that he has seen.
Mr Davey
When I used to attend Business, Innovation and Skills questions, as a Minister in that Department, I noted that there were more questions on the location of the bank than on any other subject. I thought I might not get so many in my new position, but I see that I am already getting them. I refer my hon. Friend to my right hon. Friend the Secretary of State for Business, Innovation and Skills.
Subject to state aid approval, the bank will be operational by the end of the year. But from next month, we will pave the way for the establishment of the bank with a programme of direct coalition investment in green infrastructure: we have made £100 million available to invest in smaller waste infrastructure projects on a fully commercial basis; a further £100 million has been made available for investment in the non-domestic energy efficiency sector; and the coalition is ready to co-invest in offshore wind projects. The bank is on course to begin investing its £3 billion of initial capital by the end of the year.
Julian Smith (Skipton and Ripon) (Con)
I want to pay tribute to the Department of Energy and Climate Change, and in particular to the Minister of State, my hon. Friend the Member for Wealden (Charles Hendry), for the work that is being done on carbon capture and storage. There have been a number of very important positive announcements in recent weeks: the decision to include gas as well as coal; the establishment of the Office of CCS within the Department, which is giving focus to this area; and the holding of a number of industrial days, which culminated a couple of weeks ago in 200 or 300 CCS industry representatives debating in London with the Department. The head of the CCS Storage Association described the relationship between the industry and the Government as “tremendous”.
There was criticism about the decision to pull back from Longannet last year. It was said that that would slow things down, but it has proved to be a positive move, and there seems to have been a strategic rethink of what we are trying to do, how we are going to achieve it, how we are going to include European money, and how we are going to support clusters. On the eve of DECC announcing the new terms of its CCS competition, we have an industry that is enthused, a Government who are focused, and, most importantly, a positive dialogue and a sense of mutual support, which is vital for the success of such a tricky and unproven technology.
This change of philosophy is important for Yorkshire and the Humber, as it is the best placed region in the UK to deliver on CCS, with its heavy-industry heritage and its proximity to North sea storage. Much work has already been done to position the region to make the most of CCS. There are four or five main projects, including Don valley, Killingholme, Ferrybridge and Tata Steel, and nowhere else in the country has so many potential projects.
On pipelines, the National Grid has already undertaken initial consultation work, with very positive feedback from the public, and CO2Sense—we are grateful for the fact that the Department for Business, Innovation and Skills has supported it, and continues to do so post-Yorkshire Forward—has been bringing together people and expertise in the region. Yorkshire and the Humber has so many pieces of the required CCS jigsaw: the right industrial heritage, a good geography and location, projects that are ready, and a team of people who are collaborating and have a vision.
A commitment to the Yorkshire and the Humber cluster through the upcoming process would give a massive boost to the economy, with some 55,000 construction jobs in the construction phase alone, inward investment opportunities, export opportunities with countries such as China, and opportunities at home, too, created by additional revenues and extra skills as universities in the region, including York and Leeds, develop expertise and technologies to meet the business demand. There will be huge economic benefits, and there will be a great rebalancing of our economy, if we can get the commitment from the Department and from the European Union.
I wish to finish by encouraging Ministers to do the following: accelerate further the timelines for the competition; focus even more on the cluster benefits; encourage Europe to push forward on its side of the financial bargain; and avoid the Opposition’s legacy of picking a project here and there across the country, and instead focus on a region, Yorkshire and the Humber, to develop the critical mass and ensure that Britain is a world leader in CCS.