Oral Answers to Questions

Kwasi Kwarteng Excerpts

Tuesday 22nd February 2022 Commons Chamber

[Christian Matheson (City of Chester) (Lab)]

1. What steps his Department is taking to help protect jobs in the energy sector.

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

The Government are committed to protecting jobs across the energy sector, which already employs over 700,000 people across the UK and is creating thousands of new jobs through our net-zero strategy.

[Christian Matheson]

I refer to my entry in the Register of Members’ Financial Interests as a member of Unite the union, which tells me that OVO Energy has a tangled web of companies into which £40 million has been salted away without any clear indication of what the money is or where it is coming from. Meanwhile, it is making 1,700 of its employees—a quarter of its workforce—redundant and its boss Stephen Fitzpatrick has said that they should keep warm by doing star jumps and that he is doing them a favour by sacking them because of the jobs market. Does the Secretary of State agree that it is about time that OVO stopped threatening to sack so many of its employees and opened up its books so that we can see where all the money is going?

[Kwasi Kwarteng]

I agree with the hon. Gentleman. I speak to the operators of energy suppliers the whole time, as does my right hon. Friend the Minister for Energy, Clean Growth and Climate Change, and we have had many concerns about the practices of some of these businesses and are very mindful of some of the accusations being made against OVO. I speak to Mr Fitzpatrick on a regular basis and I will absolutely pass on the hon. Gentleman’s concerns to Mr Fitzpatrick directly.

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

The other day I noticed that the Government said they were going to help and encourage people to invest more in the gas industry and help to produce more, but then I heard a statement contradicting that from my right hon. Friend’s Department. Will my right hon. Friend clarify whether the Government are prepared to see more gas extracted and greater licences?

[Kwasi Kwarteng]

I and my right hon. Friend the Minister for Energy, Clean Growth and Climate Change have been very clear about the course we want to pursue. We do not believe it is the right thing simply to switch off the oil and gas sector. Unlike many Opposition Members, we do not believe in simply an extinction of the oil and gas sector; we think oil and gas is critical not only to energy resilience but to developing new technologies such as carbon capture and blue hydrogen production. We have maintained that position consistently for the nearly three years I have been a Minister in this Department.

[Stephen Flynn (Aberdeen South) (SNP)]

We have to admire the audacity of the Secretary of State in talking about protecting jobs in the energy industry when of course his Government have presided over the loss of some 35,000 jobs in Scotland’s North sea industry over recent years alone. It gets worse, because this is the same Government who opted not to fund carbon capture and underground storage in the north-east of Scotland, costing some 20,000 new jobs. Can the Secretary of State clarify why on earth the public should trust the Tories when it comes to jobs?

[Kwasi Kwarteng]

I will make three points about that. Acorn was an excellent project, and we want to see it developed very soon in the next wave, which we want to accelerate. There is an extraordinary arrogance in Members of the Scottish National party giving us lectures about energy when they are not committed to nuclear and are in bed with the Greens who simply want to flick the switch to turn off oil and gas in their own country. I am very happy to compare our record as job creators with the hon. Gentleman’s Extinction Rebellion approach to the North sea.

[Stephen Flynn]

I am afraid the Secretary of State does his reputation no good whatsoever by propagating such unfounded garbage. If he wants to talk about records, let us talk about records, because despite energy being reserved to this place, it is the Scottish Government who have delivered the £62 million energy transition fund; it is the Scottish Government who have just delivered £30 million to Aberdeen South harbour; it is the Scottish Government who have just delivered £15 million to the Aberdeen hydrogen hub; and of course it is the Scottish Government who have just delivered a £500 million just transition fund for the entire north-east of Scotland. After taking out some £375 billion from Scotland’s natural resources, when are the Tories going to give back?

[Kwasi Kwarteng]

I am not going to take any lectures from the hon. Gentleman about energy policy. His party is committed to a job-destroying coalition with the Greens, who want to switch the lights off the North sea. Everybody knows that; that is why investment is very difficult to attract, and our job is to militate against their Extinction Rebellion approach and encourage investment, as my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) said, in our North sea.

[Mark Pawsey (Rugby) (Con)]

Jobs in the energy sector depend on an effective market, and that depends on consumers exercising their choice to change supplier, but switching fell by 73% in the year just gone compared with the previous year. What steps is the Secretary of State taking to ensure that we get back to an effective energy market?

[Kwasi Kwarteng]

There has been a critical issue with very high wholesale prices, which as I speak are about 200p a therm, whereas at the beginning of last year they were 50p a therm or lower; there has been a quadrupling of the price. The energy price cap has protected consumers, but we are talking to Ofgem all the time about how we can refine the cap to make it more sensitive to wholesale prices in the market.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Today marks the start of International Energy Week, formerly International Petroleum Week. The Secretary of State was billed to open the event, and he will know that, despite the rebrand, the lead sponsors include fossil fuel giant BP, which is investing just 2.3% of annual capital expenditure into the jobs-rich green energy sector. When will the Government end their cosy relationship with the fossil fuel dinosaurs and replace the outdated duty to maximise economic recovery with a duty to minimise the extraction of North sea oil and gas and to maximise clean, green jobs instead?

[Kwasi Kwarteng]

The hon. Lady will know that we have committed to the “Net Zero Strategy”, which was lauded across the world as a world-beating document. She also knows that, as I have said repeatedly and my right hon. Friend the Minister for Energy, Clean Growth and Climate Change has also said, we are committed to a transition, not extinction. We have to work with fossil fuel companies and the industry to transition to a net zero future, and that is exactly what we are prepared to do.

[Aaron Bell (Newcastle-under-Lyme) (Con)]

2. What steps he is taking to support the growth of science and innovation through the Government's levelling-up agenda.

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[Yvonne Fovargue (Makerfield) (Lab)]

11. Whether he is taking steps to support prepayment meter customers following the increase in the energy price cap through the energy bills rebate.

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

We are working hard to design this scheme at pace. We acknowledge that delivering the bill reduction for this payment mechanism will require a special focus, and that is why we are engaging with consumer groups and Ofgem to work out how best to design the mechanism.

[Yvonne Fovargue]

People on prepayment meters will see their bills rise by £708, which is £46 more than for those who pay by direct debit. How will the Secretary of State ensure that people do not self-disconnect, leaving them without heat and means to cook? How will that be monitored? What thought has been given to private renters so that they do not lose out on the rebate due to the frequent tenancy changes in that sector?

[Kwasi Kwarteng]

We are constantly engaging with Citizens Advice, Ofgem and a huge range of stakeholders about how to protect the most vulnerable consumers. The package announced by my right hon. Friend the Chancellor only a couple of weeks ago includes £350, which goes halfway towards addressing the increase that the hon. Member for Makerfield (Yvonne Fovargue) describes. The warm home discount is being extended from 2 million people to 3 million people, and the uplift will be to £150.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

The 4 million pre-payment meter customers in this country will be profoundly unimpressed by the Secretary of State’s answers this morning. Not only are they paying far more than the £693 increase on the price cap for customers with accounts, but it is uncertain whether they will have access to the £200 Government scheme to lend customers their own money, as they do not have accounts through which to do this. Indeed, many of them will miss out on the council tax rebate, too.

Would it not have been much more straightforward and fairer for prepayment meter customers if we had levied a windfall tax on companies that are profiting from high gas prices and provided those customers with a direct and non-refundable discount on their bills through their meter?

[Kwasi Kwarteng]

That is why we have £155 million that can be applied discretionally, particularly to protect these vulnerable consumers. Labour’s whole approach to energy security has been woeful. Labour destroyed the nuclear industry we had, without any progress, and it has created massive uncertainty in energy supply through its proposed windfall tax, which is not the way to produce energy supply that secures low-cost energy for our people.

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

13. What steps his Department is taking to support research into Parkinson’s disease.

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[Darren Henry (Broxtowe) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

As we all know, rising energy bills are a cause for concern for people up and down this country, but we have stepped in to give families some breathing space, with our energy bills rebate and council tax discount. Our supply of gas is secure; unlike many European Union countries, we are not dependent on Russian gas. Much of our supply comes from British territorial waters and from reliable import partners, such as Norway. The UK is the fastest growing economy in the G7, unemployment is down to record low levels and wages continue to rise. There are challenges ahead, but Britain is bouncing back from the pandemic.

[Darren Henry]

Will the Secretary of State outline what steps the Department is taking to help low-income households in my constituency deal with the energy crisis?

[Kwasi Kwarteng]

My hon. Friend will appreciate the excellent statement made by my right hon. Friend the Chancellor of the Exchequer a couple of weeks ago. There was a range of measures totalling £9.1 billion, which included the council tax rebate for bands A to D and a £200 reduction in energy bills, totalling £350 to reduce bills. As I alluded to earlier, there was also an extension of the warm home discount.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

The Secretary of State omitted to mention that inflation is now at its highest level for 30 years. Energy costs are spiralling and the private sector has yet to recover to pre-pandemic levels. Does he acknowledge that the Chancellor’s very large rise in national insurance, coming in April, will make a bad situation for British businesses even worse?

[Kwasi Kwarteng]

I am delighted to hear Members from the Opposition parties so bullish about our economy, given that we are the fastest growing economy in the G7! The hon. Member for Sefton Central (Bill Esterson) mentioned Germany; I was very struck by the Bundesbank saying that Germany was facing recession, but we do not hear about that. We are creating more jobs, we have announced record investment and the Government’s plan is working in terms of bouncing back better from the pandemic.

[Seema Malhotra]

The Secretary of State did not answer the question, because he knows that this is a high-tax Government because they have created a low-growth economy. May I also raise his recent claim that fraud is not something that affects people day to day? Fraud is estimated to cost the British economy as much as £52 billion a year, so will he accept that he has got this wrong? Will he apologise to the 4.6 million people who are victims of fraud each year, and tell the House today what steps he will take to do better?

[Kwasi Kwarteng]

I will tell the hon. Lady exactly what steps I will take to do better. I will constantly and always fight against Labour’s socialism, its windfall tax, its inability to plan ahead and its total lack of remorse for the fact that it destroyed manufacturing jobs in the time it was in government.

[David Johnston (Wantage) (Con)]

T2. My right hon. Friend the Minister will know that I am the promoter of the Local Electricity Bill, which is supported by just under 300 Members of this House, and I will be chairing a new all-party parliamentary group on community energy to promote it. Does he agree that community energy can play a key role in reaching our net zero goal? Will he work with us to remove the barriers to local suppliers of renewable energy?

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[Joanna Cherry (Edinburgh South West) (SNP)]

T7. Community schemes such as Harlaw Hydro in my constituency provide 11% of Scotland’s renewable energy production. Our current energy crisis underlines the need to diversify energy production, so I was a bit disappointed when the hon. Member for Wantage (David Johnston) asked about his Local Electricity Bill and the Government were not able to give it their full support. Will the Government now state for the record their full support for measures such as that Bill to make proper and full use of community energy projects like the one in my constituency?

[Kwasi Kwarteng]

I assure the hon. and learned Lady that we fully support the transition in the North sea transition deal and the oil and gas sector, whereas her party and the Greens are seeking to destroy it and destroy jobs. That is the fact that I want to raise here.

[Antony Higginbotham (Burnley) (Con)]

T5.   The fact that global energy prices continue to be very volatile is a big concern for my constituents in Burnley and Padiham. One reason for that volatility is the weaponisation of energy by countries such as Russia, highlighting how we need not to rely on hostile state actors. Will the Secretary of State or the Minister set out what we are doing to ensure security of supply, not just now but for decades to come?

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

T9.   Does the Secretary of State agree that Afghan families who have come to the UK want to participate fully in our economy? Will he therefore help to establish a funded scheme so that Afghan refugees can set up their own businesses and contribute fully to our economy?

[Kwasi Kwarteng]

The hon. Gentleman will appreciate that issues of settlement and asylum are ably dealt with by my right hon. Friend the Home Secretary. I engage with her constantly in respect of employment schemes for people who wish to come into this country.

[Dr James Davies (Vale of Clwyd) (Con)]

T6. Is my right hon. Friend aware of Rolls-Royce SMR’s plans to set up small modular reactor factories here in the UK? Does he agree that the high-skilled, long-term jobs in such factories could significantly help to level up north Wales and contribute to both net zero and a global Britain that exports more around the world?

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[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

The Government hate a monopoly, so can the Minister come to the Dispatch Box and tell my constituents who are former employees of Together Energy why his Government are using the energy crisis to create an energy monopoly by the big players, as opposed to small and medium-sized providers?

[Kwasi Kwarteng]

As I have maintained on a number of occasions, the hon. Gentleman’s party is a jobs destroyer in the energy sector, refusing to countenance any investment in the North sea, and in alliance with the Greens, who want to destroy jobs in the sector.