Onshore Oil and Gas

Debate between Kevin Brennan and Tom Blenkinsop

Tuesday 26th January 2016 Westminster Hall

[Kevin Brennan]

I understand that, although I think that there is a case to be made for saying that some of the subsidies that the Government have withdrawn could have been planned in a longer term way. We will leave that point, however, because is not the subject of our debate.

I praise my hon. Friend the Member for Penistone and Stocksbridge (Angela Smith), as other hon. Members have done, for her speech and for campaigning assiduously, particularly on behalf of the steel industry and her constituents. She put the case very well. Whatever we may think about the industry, the House has taken a decision, although it may not be the one that we wanted. There are clearly opportunities for British manufacturing, so we have to take a pragmatic approach and plan accordingly. We need a strategic approach to ensure that UK plc and jobs in the UK benefit to the greatest extent possible from the development of the industry. My hon. Friend outlined the potential for the UK chemicals industry and for manufacturing in general. She made some good points about the pumps that would be required for the industry, about sand and cement and about the steel industry. I congratulate her on her contribution.

The hon. Member for Weaver Vale (Graham Evans) described a public meeting in his constituency. I understand the difficulty of getting the message across. Energy generation is one of the great “wicked issues” of politics. We all know the rule in politics: everybody wants cheap, plentiful, clean energy at the push of a button, but nobody wants it to be produced anywhere near to where they live. Those two things, as we all know, are incompatible. We are required to wrestle with such wicked issues every day as constituency MPs, Ministers and leaders in our community and across our country. The hon. Gentleman was quite right to point that out.

I believe that Ministers might have a more direct role than the hon. Gentleman seems to think in taking the message to the public. That is part of Ministers’ responsibility, and they should not duck away from taking on difficult issues. In my experience, when Ministers take such responsibility, in the longer term they produce results for the Government in question—not that it is my duty to give them advice on how to win elections. I certainly think that Ministers have a direct role, although I appreciate that the Minister might not wish to spend his Friday nights in the way in which the hon. Gentleman described.

The hon. Member for West Aberdeenshire and Kincardine (Stuart Blair Donaldson) gave us an interesting insight, in his brief contribution, into the fact that the industry had its place in the 19th century. Shale was exploited in his constituency in the 19th century, so it is not a new concept.

The hon. Member for Tiverton and Honiton (Neil Parish) told us about his experience in Europe, and told us not to blame him for the bad things that have gone on there. Yesterday, other hon. Members and I attended a dinner with the aerospace industries. Since the start of the European collaboration that is Airbus, the European share of the commercial airline market has gone from 18% of the world market to 50%. It was made absolutely clear to us last night that that would not have happened without European co-operation and our membership of the European Union, so it is not all bad.

The hon. Gentleman described his friend the hon. Member for Thirsk and Malton as brave, and I am sure that he is. I am sure he would be equally brave if his majority were 456 rather than 19,456. He is quite right that it is always tough to have to wrestle with concerns from one’s own constituents.

The hon. Member for Warrington South (David Mowat) made, as ever, an informative and expert speech. He pointed out—this is the elephant in the debate—that the current wholesale price makes it substantially more difficult for the industry to get going than might otherwise be the case. He made a well-informed and interesting speech, in which he pointed out the potential for other industries.

We had a speech from the SNP spokesperson, the hon. Member for Aberdeen North (Kirsty Blackman), who laid out her party’s position. I wish my hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) had made a speech. He made many interventions, all of which were interesting and, as ever, informative. We slightly missed out, but he did give us the benefit of his interventions.

It is my responsibility to set out our position as a party. We have already laid out the conditions that we wanted to see in place before the industry developed further, to ensure the implementation of the protections that hon. Members have expressed concern about. I will not go into great detail on that, because we have not got time. Given that the UK will rely on gas, on any estimate, until at least the 2030s and possibly beyond that—we are very reliant on imported gas from Norway and Qatar, as was pointed out during the debate—we support exploratory drilling, but it must not be at any cost. We made that clear in the amendments we tabled last year to the Infrastructure Bill. Despite conceding some of those points during the debate, the Government have somewhat reneged on them since the general election. We laid out a large number of conditions that we thought were necessary before exploratory drilling could go ahead. I will not list them now, because of the time, but they are well established on the record. That remains our party’s policy.

We have criticised the Government for allowing communities to decide whether they want onshore wind farms but not extending the same community involvement to this industry. There are questions about the appropriate level of local concern over a strategic industry of this kind. In relation to onshore wind, the Government have rather undermined their argument about the industry by the position that they have taken. I will not press any further on that point.

The development of this industry offers great opportunities for manufacturing industry in this country. One might call it “manufracturing”, as some have done. The Government must acknowledge that unless they bring forward an active industrial strategy, those opportunities will not be realised. We have heard about opportunities that have been missed with other industries, including offshore wind, because of a failure to understand and exploit the supply chain opportunities of a developing industry. There is a great danger that the same thing will happen in relation to this industry as it develops, unless there is an active industrial strategy. That must be driven by the Government being prepared to pull every lever at their disposal and bring all the appropriate parties together in the same room, as the previous Government did, for example, with the creation of the Automotive Council. In fairness, that was carried on beyond 2010 and is still in existence. It has brought tremendous benefit to UK manufacturing by getting industry and interested parties together and encouraging them to understand that there is a commonality of need, even where people are in competition with each other, for the sector.

[Tom Blenkinsop]

On the subject of an integrated industrial strategy, the comments of the hon. Member for Warrington South (David Mowat) about the east coast of America are quite interesting. The Obama Administration underwrote a lot of those projects with stimulus funding, which is part and parcel of the Obama Administration’s industrial strategy.

[Kevin Brennan]

On this side of the Atlantic, we tend to think that the USA is a laissez-faire society, but when we go there and see the reality of policies, not only at federal level but at state level, we soon find out that the picture is very different from our assumptions. Next time, I hope that my hon. Friend will prepare a speech, because we will not let him intervene so many times, no matter how interesting his contributions are. We look forward to hearing from the Minister about what he will do to make sure that the Government pull every possible lever.

UK Steel Industry

Debate between Kevin Brennan and Tom Blenkinsop

Thursday 21st January 2016 Westminster Hall

[Kevin Brennan]

I fear that my hon. Friend may well be right. It is clear that the Chinese state is absorbing the losses to kill off the competition, which is why it is essential that we have a UK Government who understand that and are prepared to take the action necessary to protect the strategic asset that is the UK steel industry.

[Tom Blenkinsop]

It is worth remembering that the Redcar blast furnace was constructed by the Callaghan Government in 1978 and 1979. There was supposed to be a second furnace, but that mysteriously disappeared after the change of Government. The current world market is effectively a free market for China, and it is interesting that the one nation with a state-owned steel industry is dominating the market. That is not a defence of a nationalised steel industry, but it is certainly something that Ministers should pore over when they consider which policies, regulation, instruments of trade defence they should be implementing in the steel market.

[Kevin Brennan]

My hon. Friend is absolutely right. I listened carefully to what the Prime Minister said about market economy status in yesterday’s Prime Minister’s questions. It was clear from his tone, demeanour and words that the Government have already made up their mind that they are going to ease the path to market economy status for China, rather than putting up a real fight for the British steel industry.

Trade Union Bill

Debate between Kevin Brennan and Tom Blenkinsop

Tuesday 10th November 2015 Commons Chamber

[Kevin Brennan]

If it was felt there had been abuse in some areas, that could be dealt with, but to legislate to outlaw something of this kind is shocking. Yet that is, in effect, what the Government are doing.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

The point is that under the law, a human resources director of a large company would still have to consult individuals. Through collective consultation, a lot of agreements can be made very quickly; the union can communicate with its members very quickly and negotiate with an HR director. With this legislation, an HR director will have to go round to every single employee. We are talking about the NHS, and councils that have several thousand employees. That will cost vast amounts of money, take vast amounts of time and leave the Government and those employees in a really peculiar situation in which they could be taken to judicial review.

[Kevin Brennan]

As ever, my hon. Friend brings his vast experience of these matters to bear in the debate.

Our amendment 9 would ensure that the ban on check-off arrangements would not apply to services that were wholly or partly devolved. In Committee, the Government introduced a new clause—it is now clause 14 of the Bill—to prevent all public sector employers from deducting union subscriptions via the payroll. The proposed ban is clearly designed to target union finances and to make it harder for individuals, including lower-paid workers, to access union representation in the workplace. Under the clause, the Government will be able to introduce regulations imposing a ban on check-off arrangements across the entire public sector.

The Government claim that that will save the taxpayer £6 million, but many unions already cover the cost of check-off services. There is a real risk that if the ban on check-off services comes into effect, the Government— and therefore the taxpayer—will actually incur costs, potentially including legal costs arising from the need to compensate trade union members for the loss of their contractual right to have their union subscription deducted at source.

The proposed ban on check-off arrangements has been introduced without consultation with employers, without engagement with the unions and without any proper assessment of its impact on employment relations. It was not in the Conservative party’s manifesto or in the Queen’s Speech, and there was no reference to it in any of the Department for Business, Innovation and Skills consultations or the impact assessments that accompanied the Bill. I note the concern that has been expressed by Conservative Members on this matter in amendments that we will consider later today.

--- Later in debate ---

[Kevin Brennan]

I am not going to escalate our dispute as to whether this is a farce, a tragedy or simply sinister, but the hon. Gentleman is right.

[Tom Blenkinsop]

In Committee, we raised this issue about other things that can be collected centrally by an HR department or the payroll. For example, some members of staff may be chartered accountants or nurses who pay for their qualifications on an annual basis through their payroll, and that would not be affected but their trade union membership of course would be.

[Kevin Brennan]

It is entirely appropriate from time to time for payroll to be used in this way. Often, members pay into a credit union through their payroll. These things should be encouraged; they are very good for industrial relations.

This ban was not included in the Conservative manifesto or the Queen’s Speech, and no reference was made to it in any of the Department for Business, Innovation and Skills consultations or the Department’s impact assessment. As we have heard, there have been concerns among Government Members about this move as well. It is almost universally opposed, except by the TaxPayers Alliance, known colloquially as the tax-dodgers alliance, which gave evidence during the oral evidence stage.

In pressing ahead, the Government have failed to secure substantial employer support for their proposals, with many employers, particularly in local government and the health sector, having expressed concern that they could undermine positive industrial relations, which are vital for the delivery of quality public services. Is it any wonder that that is the case, given that employers and trade unions were not consulted? We believe these provisions are unnecessary and draconian, and I give notice that we may wish to press amendment 9 to a vote later—for some strange parliamentary reason, it does not come at this knife.