Energy Generation

Kerry McCarthy Excerpts

Wednesday 17th April 2013 Westminster Hall

[Kerry McCarthy (Bristol East) (Lab)]

Does the hon. Gentleman share my frustration that it is three years since the coalition came to power, and to drive the agenda forward, we need things such as targets to create the impetus for some of the measures to be put in place and to create a situation where investors have confidence? At the moment, so much is uncertain about the future of Government energy policy. We have the Treasury driving fracking forward, a lack of targets and the Secretary of State for Energy and Climate Change criticising the general thrust of energy policy that is being imposed on him by the Treasury. Does the hon. Gentleman agree that certainty is important and that decarbonisation targets are an essential part of that?

[Andrew George]

The hon. Lady is absolutely right. In fact, that is the nub of the debate. It has taken me 10 minutes to get to that point—perhaps I will get to it now—but it is fundamental to this debate. Investors are clear in the messages that they are sending out at present. This is not purely a green campaigning issue for non-governmental organisations. It is an area in which very substantial pension funds and other investors are looking to invest. Looking forward decades, they want certainty and confidence, and they see this as a sector where they believe that certainty can be demonstrated with a target set sooner rather than later. Not only has this part of the economy performed by generating a large number of jobs and significant growth—far higher growth than in almost all other sectors of the British economy—but it is an area in which significant investors in the British economy want investment to take place.