Oral Answers to Questions

Kwasi Kwarteng Excerpts

Tuesday 25th May 2021 Commons Chamber

[Mr Laurence Robertson (Tewkesbury) (Con)]

What steps he is taking to increase the opportunities for generating electricity locally.

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

We are providing support for the delivery of renewable energy projects within rural communities in England through the £10 million rural community energy fund programme.

[Mr Robertson]

I thank the Minister for that response. Does he agree that the production of electricity locally could help a great deal towards our net zero target? Will he also look at the situation in my constituency of Tewkesbury, where two rivers, the Avon and the Severn, join? The Severn would, I think, be particularly useful in producing electricity if we could get the schemes in place. Will he look at that and perhaps explore the possibilities?

[Kwasi Kwarteng]

My hon. Friend correctly observes that there are two major rivers in Tewkesbury, the Avon and the Severn—very beautiful rivers, I might add. As far as hydroelectric power on rivers is concerned, we would have to look at the hydraulics and the power that can be generated, but we clearly appreciate that there is potential there, and we want to explore any ideas that can bring those projects to fruition. Having said that, there is a limit to the capacity that such rivers can generate, unfortunately.

[Stephen Flynn (Aberdeen South) (SNP)]

Just last week, the Secretary of State accepted that the inexcusable costs facing Scottish renewables projects trying to access the electricity grid had been an issue for a long time, notwithstanding the 11 years that his party has been in government. The Government continue to blame Ofgem while at the same time refusing to accept that they are the ones who set Ofgem’s strategy and policy statement. On that point, can the Secretary of State outline when the consultation detailed in his energy White Paper will begin, when it will end and when we will see real change—or are UK Energy Ministers simply among the worst idlers in the world?

[Kwasi Kwarteng]

The hon. Gentleman makes a pointed and unfair observation at the end of his remarks, which I think is beneath his dignity. I know that he is referring to “Britannia Unchained”, a classic work published 10 years ago, but 10 years is a very long time and I do not want to revisit those battles. I will say what I have said to him before: this is an issue for Ofgem and we are discussing how to seek to make progress on that important subject.

[Jason McCartney (Colne Valley) (Con)]

What steps his Department is taking to support the Government’s levelling-up agenda.

[Tom Hunt (Ipswich) (Con)]

What steps his Department is taking to support the Government’s levelling-up agenda.

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

We have made a commitment to level up all areas of the country. The plan for growth is a critical part of that, and we will go further with the publication of a levelling-up White Paper, led ably by my hon. Friend the Member for Harborough (Neil O’Brien), later this year.

[Jason McCartney]

I fully welcome the Prime Minister’s 10-point plan for a green industrial revolution as we build back greener. Green eco-businesses in my Colne Valley constituency are ready to play their part, so can I please suggest to the Secretary of State that if the Department for Business, Energy and Industrial Strategy or any other Government Department is looking to relocate to the north, towns such as Slaithwaite and Marsden, with their mills and their direct rail links to the likes of Manchester and Leeds on the trans-Pennine line, would be ideal locations?

[Kwasi Kwarteng]

As my hon. Friend will appreciate, we are looking at many ideal locations at the moment. I was pleased to make an announcement last week about Darlington; that is a really good move for the Department. We are always looking at ways to create more employment and recruit really great talent for our Department across the country, and I am sure that his constituency will also—perhaps—be among those considered for such expansion.

[Tom Hunt]

My constituents are very proud of the north of England and the midlands, even though we are in East Anglia, but they want a firm commitment from the Government—it cannot be stressed enough—that the levelling-up agenda also covers Ipswich. Of course, we have the £25 million from the town deal, which goes some way to assuaging these concerns. However, does my right hon. Friend agree that the skills improvement plan pilot bid from Norfolk and Suffolk could be a fantastic example to prove to the people of Ipswich that we are in fact at the heart of the levelling-up agenda? Will he engage in discussions with the Department for Education about the possibility of that pilot scheme, which would also feed the new freeport east in Felixstowe, which already employs 6,000 of my constituents but could employ many more?

[Kwasi Kwarteng]

My hon. Friend is quite right. He was good enough to mention the fact that Ipswich has indeed been selected for a £25 million town deal, and he suggested that that was as a matter of course, but I think it is due to his keen advocacy and his eloquent and persuasive powers that the Government can provide help in that way. Clearly, skills are at the core of any levelling-up agenda, and I know that there are great ideas in Ipswich and great things being promoted in East Anglia. I look forward to engaging with him on that.

[Judith Cummins (Bradford South) (Lab)]

When his Department plans to publish the ACAS report on fire and rehire and the Government’s response to that report.

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[Ian Paisley (North Antrim) (DUP)]

What steps he is taking to support the UK’s hydrogen economy.

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

The second point of the 10-point plan was all about hydrogen. The forthcoming hydrogen strategy will set out clearly what we hope to see and are committed to seeing for the hydrogen economy in 2030.

[Ian Paisley [V]]

I thank the Secretary of State for that answer. Will he go a little further and explain how, and commit that the strategy will actually deliver specific jobs in Northern Ireland, as well as in the rest of the United Kingdom? Will he continue to agree to meet me and other parliamentary colleagues to ensure that Northern Ireland gets a fair share of the hydrogen strategy as it is rolled out? As he knows, this is so important to the future economy of Northern Ireland.

[Kwasi Kwarteng]

I will certainly continue to agree to meet the hon. Gentleman at any time. There are very important hydrogen projects in Northern Ireland. I speak to Mr Bamford and others, particularly in relation to Wrightbus, which I understand is in the hon. Gentleman’s constituency. There is a huge opportunity, and I would be happy to meet him and others to discuss the prospects at any time.

[Owen Thompson (Midlothian) (SNP)]

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

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[Jessica Morden (Newport East) (Lab)]

What steps he is taking to support the UK steel sector.

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

The Government are committed to a UK steel industry. I mentioned this repeatedly in my session with the Business, Energy and Industrial Strategy Committee this morning.

[Nick Smith]

Sanjeev Gupta promised that none of our steel plants would close on his watch, but after the Serious Fraud Office descended on his empire, the workforce became afraid for their future. The Liberty Steel plant in Tredegar puts food on the table and pays the mortgages of my constituents, and across the country 5,000 families rely on the company. We now need the Government to ensure that these plants remain open, and, crucially, to provide the finance to bridge any transition period should a new buyer or stake purchase be necessary—and, of course, to work with the trade unions to test the commitment of any new buyers. If promises are broken, will the Secretary of State step in with the finance to support our steel communities?

[Kwasi Kwarteng]

The hon. Gentleman will remember that Mr Gupta asked me and the Department for £170 million. Many Labour Members—dare I say it?—were hollering and screaming and saying we should nationalise. In fact, I would say that my actions and those of officials have been vindicated. There were serious concerns about corporate governance with this company, and Labour Members would do well to understand how to manage public finances with care. Having said all that, I am monitoring the situation closely and I remain strategically committed to the steel industry and this sector.

[Jessica Morden]

On behalf of workers at Liberty Steel in Newport, I agree with my hon. Friend the Member for Blaenau Gwent (Nick Smith): the Government must do all they can to protect these strategic businesses that are very important to our communities. Because of that, and because of global overcapacity in steel, it is also critical and very urgent that Ministers work with Cabinet colleagues to prevent the Trade Remedies Investigations Directorate from slashing our steel safeguards in half, so please will the Government act on that?

[Kwasi Kwarteng]

With regard to TRID, the hon. Lady will know that the consultation on that closes tomorrow. I would urge all interested parties to feed into that consultation so that we can reach a good decision. She knows that I am on record as having committed to a strategic presence of steel in the UK . I think that is vital and as Secretary of State I will always promote it within Government.

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

The crisis at Liberty Steel is yet further evidence of the need to break the cycle of crisis management that has defined the approach of successive Governments to this critical sector. The Secretary of State knows full well that there is a global race under way to green the steel industry and that our country is currently at the back of the pack, with no concrete plans for trialling hydrogen-based primary production and only vague plans for a single carbon capture-based project. With its long-term survival at stake, can he explain why the Government believe that the UK steel industry can afford to wait a further two years for the limited clean steel fund to even begin distributing investment?

[Kwasi Kwarteng]

I completely reject the basis of the hon. Gentleman’s remarks. The idea that we are at the back of the pack in decarbonisation is complete nonsense. We are the first country in the G7 to have come up with an industrial decarbonisation strategy. He and his Labour colleagues were saying, “Secretary of State, why don’t you nationalise Liberty? Why don’t you give Mr Gupta £170 million?”, and we made absolutely the right call. We showed judgment and restraint. Going forward, he will appreciate that I was the Secretary of State who resuscitated the Steel Council. We have had constructive conversations across unions and employers to work out a decarbonised future for the industry.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

What new plans he has to incentivise businesses to become more environmentally sustainable in the transportation of their products.

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[Tonia Antoniazzi (Gower) (Lab)]

What recent steps he has taken with the Secretary of State for Work and Pensions to improve the enforcement of workplace health and safety laws.

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

Workplace health and safety is of critical importance, and I am in regular discussion with my right hon. Friend the Secretary of State for Work and Pensions on this and other issues.

[Tonia Antoniazzi]

If the Government are so committed to keeping workers safe throughout the pandemic, can the Secretary of State explain why they have not been able to protect workers at the Driver and Vehicle Licensing Agency in Swansea by putting in measures to keep them safe from covid-19?

[Kwasi Kwarteng]

The hon. Member will appreciate that public health and guidance for safer working in Wales is a devolved matter, so she should certainly bring this up with her colleagues in the Welsh Government. Public Health Wales and the local authority, supported by the Health and Safety Executive, are working with the DVLA to ensure that there is appropriate protection.

[James Sunderland (Bracknell) (Con)]

What steps his Department is taking to support UK manufacturing.

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

  If he will make a statement on his departmental responsibilities.

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

I would like to say that over the last few weeks I think we have gone through a trying time, but two things have really stood out as remarkable successes. The vaccine roll-out continues to go from strength to strength. Something like 60 million jabs have been administered across this country, which I am pleased to say is a world-beating target to have reached for a country of our size. On the back of that, we have managed to hit the dates in the road map. On 12 April, we opened up in the way we said we would, and then we looked at the data and we were able to do so again on 17 May. This has provided business with a huge degree of support and a measure of certainty ahead of a summer reopening.

[Elliot Colburn [V]]

Carshalton and Wallington residents, particularly those living in New Mill Quarter in Hackbridge, have been suffering at the hands of the Lib Dem-run council-owned district energy network called SDEN—Sutton Decentralised Energy Network—leaving residents without heating and hot water, some more than a dozen times in just six months. I know BEIS is keen to ensure that residents such as these are not victims of shoddy operations, so following the closure of its consultation last year, what steps is my right hon. Friend taking to ensure that district energy networks are regulated?

[Kwasi Kwarteng]

It is an excellent question. My hon. Friend and I corresponded about this and spoke directly about this when I was the Minister of State for Energy. I am very pleased to tell him that we are committed to regulating the heat networks market within this Parliament, and we will bring legislation forward at the earliest possible opportunity. It is clearly a really important thing to be doing, and he and his constituents can rest assured that we are acting with due speed.

[Edward Miliband (Doncaster North) (Lab)]

I want to return to fire and rehire. Chris is a British Gas engineer who lives in Spelthorne, the Secretary of State’s constituency. Chris says:

“Working under fire and rehire has been horrific. It has caused stress and anxiety not just for me, but my family. I can’t overstate the effect that it has on mental wellbeing. And the Government and the Business Secretary, who is supposed to represent me…in parliament is doing absolutely nothing about it. I voted for Kwasi Kwarteng in 2019, but he’s failed us on this. A total let down.”

Chris met the Business Secretary recently and asked him why he had not acted on fire and rehire. What did he tell him?

[Kwasi Kwarteng]

I remember the meeting well. I met Chris, I think on the Avenue in Sunbury, and I said very clearly to him that we had an ACAS report that we hoped to publish in due course, and that once we published that we would set out further action, as the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Sutton and Cheam (Paul Scully), very ably mentioned earlier.

[Edward Miliband]

The problem is that the right hon. Member is the Business Secretary. He is in charge. He promised an employment Bill two years ago. He has had the ACAS report for three months. He is not even telling us what is in the ACAS report. Maybe he can satisfy Chris and millions of people around this country by saying from the Dispatch Box today that he agrees with the principle that we should legislate to outlaw fire and rehire, and he will bring forward an employment Bill to do it. If he does not do that, people will suspect that the truth is not that he is not acting because he cannot act, but that he is not acting because he does not want to act, because he thinks this kind of one-sided power for employers is necessary for our economy to succeed.

[Kwasi Kwarteng]

We all know the Marxist trope of the employers versus the workers, and we have moved on from that—most of us. There are two issues there. One was related to the employment Bill, which we are committed to introducing to this House when we can, and that has always been our position. The second is that the whole point of having an ACAS independent report was to allow it to happen and then we would consider, after publication, the steps forward. I know the right hon. Member is impatient, and I know he is probably wishing that there was a leadership change in his party, but we have to stay focused on delivery.

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[Stephen Flynn (Aberdeen South) (SNP)]

Stats released by the Office for National Statistics this morning show that trade with the European Union has fallen by 23% in the first quarter. In the meantime, Scottish farmers are facing up to the reality of a trade deal with the Australians that threatens their very future. The Scottish Parliament—it has no say; the Scottish Government—ignored. What exactly will the UK Business Secretary do about that, and how much damage are his Government willing to cause?

[Kwasi Kwarteng]

The hon. Gentleman is right to mention the ONS data, but he will appreciate that that is comparing quarter 1 this year with quarter 1 last year. [Interruption.] Of course it does. January was exceptionally bad—I fully admit that—because there was uncertainty about how the new deal would operate. Subsequent data from Q2 and from March was much better, The next quarter will have better results, and I am sure that quarters after that will show proportionate improvement. The Australian trade deal is a fundamental issue for us. If we cannot make a trade deal with a country that has shared legislation, shared history, and shared traditions, we will not get anywhere with any of these trade deals. I think this is an excellent opportunity for the UK.

[Mr Laurence Robertson (Tewkesbury) (Con)]

The Government are to be congratulated on their plans to phase out diesel and petrol cars, but that raises the question of how we will charge electric cars, especially for those who do not have driveways and have to park on the roads. What can we do to speed up the development of the infrastructure?

[Layla Moran (Oxford West and Abingdon) (LD)]

  The green homes grant was scrapped at the end of March, due to severe mismanagement. Nevertheless, we urgently need a long-term strategy to help homeowners cut emissions and bills, if we are to tackle the climate emergency properly. Now that local authorities have been awarded £300 million to deliver the green homes upgrades, what steps is the Secretary of State taking to ensure that councils have all the support they need to jump over bureaucratic hurdles and handle the unrealistic deadlines created for them, so that we can significantly cut carbon emissions across UK homes?

[Kwasi Kwarteng]

The hon. Lady will appreciate that the green homes grant initially had three elements: the first dealt with owner-occupier houses, the second was distributed by local authorities in the way she describes, and the third was about public sector building decarbonisation. Two of those elements were successful. The third was a short-term stimulus, which we have closed and are looking to replace.

[Mrs Flick Drummond (Meon Valley) (Con)]

  Many of my constituents work in the aviation sector and at Southampton Airport. Advances in green technology to cut emissions are vital for the future of air travel, and that may even include electric airplanes, powered by greener fuels. Will my right hon. Friend outline what encouragement the Government will provide in that area?

[Kwasi Kwarteng]

We have done a number of things that I am sure my hon. Friend will appreciate. I was very pleased, with my right hon. Friend the Transport Secretary, to appoint Emma Gilthorpe as chief executive officer of the Jet Zero Council, which brings together considerable industry expertise to drive sustainable aviation fuel. Electric aeroplanes may be a thing of the future, but clearly, we have the technology today to innovate and to use things such as hydrogen and sustainable fuels to power a net zero aviation sector.

[David Linden (Glasgow East) (SNP)]

  The Secretary of State will be aware of pladis’s proposal to close the McVitie’s factory in Glasgow’s east end, putting at risk up to 500 jobs in a very fragile part of the local economy. On Saturday, I, politicians from across parties and, indeed, the GMB union came together to send a loud message to Salman Amin in Turkey that doing so would put the local economy at risk. Will the Secretary of State join us in calling on pladis to rethink these devastating plans, which would deliver a hammer blow to the local economy in Glasgow and Scotland?

[Kwasi Kwarteng]

In my business engagement, I have been lucky enough, I suppose, to meet the CEO of pladis, the McVitie’s operator. I am not particularly aware of the specifics of what the hon. Gentleman has just informed the House, but I would be very happy to speak to him and others to see what we can do to ensure that the situation is improved. The business seems open; I had a good conversation with the CEO, but I would like to hear more about the specific details of that plant.

[Suzanne Webb (Stourbridge) (Con)]

Levelling up has never been more important than in the historic town of Lye in my constituency, an area that I am determined to help regenerate—made easier, I hope, by the funding put in place by this Government. One business in Stourbridge, I’m Lucky, was unlucky enough to open just before the second lockdown, but with Government support, and helped by its own fantastic entrepreneurism, it has survived. It now has an online shop front, and it has begun recruiting staff. Does my hon. Friend agree that businesses such as I’m Lucky have a vital role to play in levelling up this country?

[Peter Gibson (Darlington) (Con) [V]]

Following the Budget, the Leader of the Opposition said that establishing “Treasury North” in Darlington was “not levelling up” but “giving up”. Does my right hon. Friend agree that the opposite is true, and that by shifting decision making outside London, including in his own Department, we will truly level up our country?

[Kwasi Kwarteng]

My hon. Friend is absolutely right; it is a huge opportunity. I was delighted to see him in his constituency only a couple of weeks ago. I was very pleased to see the photograph that was taken of us looking like an advert for “Reservoir Dogs”. BEIS is absolutely committed to recruiting excellent staff in Darlington, among other places around the UK.

[Kate Osamor (Edmonton) (Lab/Co-op) [V]]

  Following the announcement that the Government plan to cut £120 million from official development assistance research, what assessment has the Secretary of State made of the long-term impact that that will have on UK research and development?

[Kwasi Kwarteng]

The hon. Lady will know that that was a very difficult decision. The Treasury and the Government made a decision to reduce ODA spending from 0.7% of GDP to 0.5%. In the integrated review, we said that we would get it back to 0.7% when we could. We are fully appreciative that it was a difficult decision, and we want to get back to 0.7% as soon as the fiscal situation allows.

[Sally-Ann Hart (Hastings and Rye) (Con) [V]]

  The Government are already embarking on their unprecedented levelling-up agenda. What measures is my hon. Friend planning to facilitate levelling up by small businesses, looking specifically at start-ups and growing SMEs, as well as at issues arising from late payments, reducing employment costs, improving skills such as digital skills, and levelling up apprenticeships? Those are the specific questions asked by the Federation of Small Businesses in Hastings and Rye.

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[Tony Lloyd (Rochdale) (Lab) [V]]

May I ask the Minister for an unequivocal statement, consistent with the Government’s zero-carbon promises, that there will be no new coal mines and no new licences for fracking in this country?

[Kwasi Kwarteng]

There are two issues there. On fracking, I was very pleased, as Minister of State, to impose a moratorium on it. The language that we used at the time was that it was going to be evidence-focused and scientifically based. There is no new evidence to suggest that we should end the moratorium, so it stays—no more fracking. On coal mines, I have said specifically that this is a judicial issue, in terms of the west Cumbrian coal mine, and that has to go through the planning process.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

As the Minister knows, I am passionate about inspiring the next generation of scientists and engineers. Will she tell the House what plans her Department has to build on the previous good work in this field, such as the Year of Engineering?