Oral Answers to Questions

Kwasi Kwarteng Excerpts

Tuesday 10th November 2020 Commons Chamber

[Ruth Jones (Newport West) (Lab)]

What steps he is taking to support the development of marine renewable energy.

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

On 6 October, the Prime Minister announced new plans to build back greener, which included boosting the Government’s previous offshore wind target from 30 gigawatts to 40 gigawatts. The hon. Lady will also be interested to hear that the Marine Energy Council is looking at funding models for early tidal projects, and that is something in which the Government are very interested.

[Ruth Jones]

UK maritime energy is seeing seismic changes, as is so much of the economy in all parts of the nation. Workers skilled in vessels and rigs offshore are being moved to new renewable industries, but—as is always the case with this Government—some are being left behind. This Government cannot be allowed to make the same mistakes that they made in the 1980s, when they left coal workers and entire communities devastated and unsupported. Will the Minister tell the people of Newport West how the Government plan to avoid those mistakes in the new energy transition?

[Kwasi Kwarteng]

The hon. Lady will be aware that the green jobs element of the transition is at the centre of the Government’s net-zero strategy, and we fully intend to have something like 2 million green jobs by 2030, although now we have only 460,000. Green jobs are at the centre of the recovery that we are trying to drive.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

What plans he has to help ensure adequate Government scrutiny of the Sizewell C nuclear power station development consent order application.

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[Alexander Stafford (Rother Valley) (Con)]

What steps his Department is taking to help achieve the net zero emissions target by 2050.

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

The hon. Lady will know that the UK’s net zero target is a world-leading initiative. Indeed, it was striking that this month China, Japan and South Korea committed themselves to net-zero carbon targets.

[Felicity Buchan]

I am a big proponent of electric vehicles. Will my right hon. Friend consider regulatory reform to encourage investment in the electric vehicle infrastructure, such as vehicle-to-grid charging?

[Kwasi Kwarteng]

My hon. Friend will know that we are taking considerable action to encourage consumers to buy electric vehicles, and we are also investing in the necessary infrastructure. So far we have invested £30 million to support vehicle-to-grid technology, and we will regulate next year to ensure that consumers benefit from smart-charging their electric vehicles.

[Alexander Stafford]

Recent commentary has highlighted the role of the North sea as a strategic asset for net zero. It could deliver one third of our energy needs via offshore wind, which could increase the utilisation of carbon capture and storage and green hydrogen. What is the role of a carbon pricing mechanism in delivering this?

[Kwasi Kwarteng]

My hon. Friend, as he often does, raises a pertinent question relating to our energy strategy. Obviously, carbon pricing is at the centre of any move to try to decarbonise our energy mix. We have a track record on this, and we have also committed to 40 GW of offshore wind by 2030, which, through the auction process, is critical to delivering our net zero ambitions.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

If we are to sustain public support for the goal of net zero, it is essential that we maximise the benefits of the green transition here at home, but there are far too many examples where the promise of that green transition risks not being realised. One such case is the plight of the BiFab engineering yards in Fife and Lewis, which represents a clear failure to utilise industrial strategy to ensure that British firms win work and sustain decent jobs from the billions of pounds being invested in offshore wind installations just a few miles off the Scottish coast. Citing state aid rules, the SNP Scottish Government appear content to sit back and let the steel jackets in question be manufactured overseas. Can the Minister give a commitment today that the UK Government will step in and safeguard the future of mounting fabrication in the UK and these vital 450 Scottish jobs?

[Kwasi Kwarteng]

The hon. Gentleman will know that we are absolutely committed to maintaining a UK supply chain for the extra deployment of offshore wind that I alluded to earlier. With regard to this specific issue, we are in conversations with counterparts in Scotland and also speaking to people in the company.

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[Owen Thompson (Midlothian) (SNP)]

What discussions he has had with the Chancellor of the Exchequer on increasing support to businesses affected by the covid-19 outbreak.

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

The Department has engaged regularly with the Chancellor and other partners across the devolved Governments, including in Scotland, since the beginning of the covid-19 outbreak to make sure that businesses have the right information, guidance and support that they need.

[Dr Whitford [V]]

A pub owner in my constituency has seen his business severely impacted by covid-19 restrictions but has been unable to access a bounce back loan, as the bank where he has his business account is not part of the scheme and none of the accredited lenders are accepting new business accounts. Will the Secretary of State widen the number of banks eligible to provide these loans or ensure that the big lenders accept additional business customers, so that small businesses can access the support they need to get through this crisis?

[Kwasi Kwarteng]

Obviously, I am not familiar with the exact details that the hon. Lady refers to. What I can point out is that in her constituency of Central Ayrshire, banks have provided something like £37 million of business loans, but I would be very interested to hear the specifics of that case and to see what we can do to meet those concerns.

[Peter Grant [V]]

In response to a question from my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), the Secretary of State claimed that Her Majesty’s Revenue and Customs does not have the information necessary to distinguish between an active, working owner-director of a small business, and an absentee shareholder of a big business who contributes no part to the running of the business. HMRC may not have all that information, but Companies House definitely does and most of it is on public record, so can the Minister tell us what discussions his Department has had with Companies House in the last seven months with a view to using that information to identify the million or so small businesses that have been deliberately excluded from Government support up until now?

[Kwasi Kwarteng]

We are in constant contact with Companies House and other sources of information relating to businesses. With regard to the specifics, I am not as familiar with those charges as the hon. Gentleman, but again I point out that something like £30 million of loan money—of credit—has been supplied to companies in his constituency.

[Owen Thompson]

While I welcome the extension of the furlough, albeit belatedly, I would suggest the next step to repair mistakes made in handling the pandemic for businesses is to look at the failures within the business interruption loan schemes, which I outlined in a debate in this Chamber last week. Many companies are not taking on CBILs or BBLS loans, because having more debt around their necks is the last thing they need just now. Has the Minister carried out any analysis of the potential effects of offering businesses grants, rather than loans?

[Kwasi Kwarteng]

The provision of credit, as I have suggested to some of the hon. Gentleman’s colleagues, has been very generous during this covid-19 period. Obviously, we can refine the process and we are very open to listening to ideas from hon. and right hon. Members about how we can do that. I would like to point out that, last year, in his constituency of Midlothian, we issued something like £49 million-worth of credit. Many of the companies in his constituency have been very grateful and very happy to receive that money.

[Jeff Smith (Manchester, Withington) (Lab)]

If he will make a statement on his departmental responsibilities.

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[Andrea Jenkyns (Morley and Outwood) (Con) [V]]

High streets up and down our country are struggling and rely on this peak selling time of year. What is my right hon. Friend’s plan to relaunch sales and drive footfall after lockdown and help to save our high streets?

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

I thank my hon. Friend for raising this issue; I know that she is a tireless champion for her local high street. She knows that click and collect and delivery services are still possible, as are takeaway services for the hospitality sector. The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Sutton and Cheam (Paul Scully), is working tirelessly with retail to make sure that once the lockdown is over, we can bounce back more strongly and take on board much of the important advice that she has been giving us.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

  My right hon. Friend is aware that we cannot get to net zero without the technologies being developed in the oil and gas sector, on which thousands of my constituents rely for employment. With that in mind, might he be able to give an update as to when we might see the long-awaited and now rebranded oil and gas transition deal?

[Kwasi Kwarteng]

I am grateful to my hon. Friend for raising this. The oil and gas sector, as he knows, is currently developing its own proposal for a transformational North sea transition deal, as we call it now. Once we receive its input and ideas, we will be able to negotiate with the sector to make sure that we have the right level of ambition with regard to net zero while preserving the much-valued jobs and expertise that he and others are so keen to promote.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

Vauxhall Motors in Ellesmere Port faces an uncertain future, as does much of the automotive sector, so we need Government support now more than ever. Will someone please explain what the sense is in allowing the manufacturers to stay open so that they can build the cars, while the showrooms remain shut so they cannot actually sell them?

[Elliot Colburn (Carshalton and Wallington) (Con)]

I know that Carshalton and Wallington residents, particularly those living in New Mill Quarter in Hackbridge, will be very grateful that the Government are consulting on regulating a district energy scheme network to prevent residents from being ripped off without any consumer protection. Will the Minister outline when he expects to report back on the consultation on district energy schemes, and can we have a timeline for implementation?

[Kwasi Kwarteng]

I thank my hon. Friend for raising this very important issue. He and I have spoken about this a number of times. I wish only that his council were as focused as he is on championing his residents’ interests. BEIS has recently consulted on regulating heat networks, and our market framework from 2022 will ensure that consumers receive reliable and regulated heat from heat networks.

[Graham Stringer (Blackley and Broughton) (Lab)]

  The Government claim that they want to rebalance the economy and have invested in new vaccine manufacturing capacity. Why was that not in the north of England or other regions, rather than in Braintree?

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[Anne McLaughlin (Glasgow North East) (SNP) [V]]

Four weeks ago, the Prime Minister agreed with me when he said this about the green deal mis-selling scandal:“We must accelerate the process by which these complaints are upheld…and compensation is delivered”—[Official Report, 14 October 2020; Vol. 682, c. 372.]I have three constituents who have died waiting. I do not want this to be political and I do not care who gets the credit when it is all resolved; I just want it sorted out. So will the Secretary of State please meet the all-party parliamentary group on green deal mis-selling as a matter of urgency and work with us to find a way forward?

[Kwasi Kwarteng]

I thank the hon. Lady for raising this. Obviously, this is a critical issue. We are working through the cases as expeditiously as we can. I am happy to meet the APPG in my capacity as Energy Minister and resolve what has been a difficult issue—I do not deny that.

[Paul Howell (Sedgefield) (Con) [V]]

  I, like others, have had many approaches from my local businesses in Sedgefield, some of which, because of specific rules, have received inadequate support in the context of what they need to survive. Bexbrides in Hurworth and J&C Coaches in Newton Aycliffe are perfect examples. Bex described it as like having a mine of customers that has been flooded: you know the customers are there—brides are still waiting to get married—but you cannot get to them until the flood subsides. But you know it will. These businesses and others need to keep themselves afloat until the flood subsides. Can the Minister please work with his friend the Chancellor to ensure that they are better supported through the next phase of the pandemic? Will he meet me to enable me to discuss in detail the best support options for them?

[Kwasi Kwarteng]

I am grateful to my hon. Friend for that important question. We fully appreciate that it is a very difficult time, and of course ministerial colleagues are working constantly with Treasury colleagues and officials to ensure that we have the right support, however this pandemic, this dreadful disease, develops. We are working effectively and many of the remedies are being widely appreciated.

[Judith Cummins (Bradford South) (Lab)]

Forty-one per cent. of hair and beauty salon owners say that they do not know whether their businesses will be able to survive until Christmas, putting tens of thousands of jobs at risk. Will the Business Secretary speak to the Chancellor about the VAT cuts for hospitality and extend those to hair, beauty, spa and wellbeing businesses to give them a much-needed boost during these very difficult times?