Oral Answers to Questions

Kwasi Kwarteng Excerpts

Tuesday 16th November 2021 Commons Chamber

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

1. What progress his Department has made on delivering the “Life Sciences Vision”.

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

The “Life Sciences Vision” outlined our bold ambition to bring scientific excellence and the dynamism of industry together to solve the most pressing health challenges. I am delighted to say that since the strategy was published we have already launched a £200 million life sciences investment programme and established the life sciences scale-up taskforce.

[Stephen Metcalfe]

I welcome the record research and development settlement for my right hon. Friend’s Department that was delivered during the spending review, a good chunk of which will, I hope, support investment in health and life sciences. Does he agree that our world-class life sciences base has been and will be our defence against future pandemics? Will he comment on his Department’s plans to locate more life sciences manufacturing facilities in the UK, so that we are less reliant on a global supply chain?

[Kwasi Kwarteng]

I fully agree with my hon. Friend that world-class life sciences are vital, and I am pleased to confirm that we have already allocated £354 million in the spending review to strengthen the UK’s life sciences manufacturing base, with particular emphasis on preparing for future pandemics.

[Darren Jones (Bristol North West) (Lab)]

It has been reported that the Prime Minister is minded to split up the Secretary of State’s Department so that he can better deliver on the Department’s priorities. Does the Secretary of State agree on that?

[Kwasi Kwarteng]

I think it is absolutely vital that the net zero agenda—the climate change action agenda—is situated firmly in a Business Department, and I am delighted to head that Department.

[Mark Logan (Bolton North East) (Con)]

I have two questions for the Secretary of State. What role can life sciences play in the Advanced Research and Invention Agency? What role can Bolton play in ARIA?

[Mr Speaker]

We are meant to have only one question.

[Kwasi Kwarteng]

My hon. Friend smuggled a leading question into his first question. He knows that ARIA is a key part of our strategy to become a science superpower, and he and I can discuss the role that Bolton will play in that exciting future.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

The “Life Sciences Vision” has dementia as its first mission. The Conservative manifesto committed to doubling research funding in a dementia moonshot, but the Budget ignored it. The UK Dementia Research Institute called this

“a major blow to UK neuroscientists racing to find cures for these devastating diseases”.

Alzheimer’s Research UK said that this

“lets down the nearly one million people in the UK affected by this devastating condition.”

So will the Secretary of State now set out a clear timetable for doubling dementia research funding, as Labour has? Or is the “Life Sciences Vision”, like the R&D road map, the industrial strategy, the innovation strategy, the grand challenges and Northern Powerhouse Rail, all talk and no action?

[Kwasi Kwarteng]

I completely refute the hon. Lady’s allegation that those things are all words. The innovation strategy is the first of its kind. It has been broadly welcomed across the sector, and she will know that dementia is one of the seven technologies in engineering and biology that we are pursuing in the innovation strategy.

[Ian Levy (Blyth Valley) (Con)]

2. What steps his Department is taking to help support the generation of offshore wind energy.

[Lia Nici (Great Grimsby) (Con)]

19. What steps his Department is taking to help support the generation of offshore wind energy.

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

The Government recently announced £380 million for our world-leading offshore wind sector, which is boosting jobs and investment across the UK. My hon. Friend will know that the allocation round 4 opens in December, and we are very much looking forward to the bids in that round.

[Ian Levy]

The House has often heard me talk about Blyth Valley being at the heart of the green industrial revolution. Catapult, in the Port of Blyth, has tested the largest windmill blades in the world for years. We need to continue to be at the forefront of blade testing, to hold our No. 1 position on the global stage. Will my right hon. Friend agree to meet me and the management team from Catapult to make sure that we continue to lead in the race to a greener future?

[Kwasi Kwarteng]

I would be delighted to see my hon. Friend and the great people who are working on the Offshore Renewable Energy Catapult in Blyth. It is a fantastic development and the people working there will surely allow us to hit the 40 GW target for offshore wind in 2030.

[Lia Nici]

As the Secretary of State knows, Great Grimsby is the UK’s largest centre for offshore wind operations and maintenance. The £160 million announcement for floating offshore wind was very welcome. Does he believe that the time is right to increase our ambitions for that power supply to above 1 GW, which would increase investors’ confidence?

[Kwasi Kwarteng]

I am delighted to see my hon. Friend, who I accompanied in her constituency shortly after her stunning victory in 2019. She will know that I and the Department are fully committed to ensuring that we have increased ambitions. We are always looking to increase our ambitions.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I welcome what the Secretary of State says about wind power—we are proud in Cumbria to be at the heart of offshore wind—but does that not contrast negatively with the Government still sitting on the fence about commissioning a new coalmine in west Cumbria? Given the incredibly disappointing outcome on coal from COP26, is this not a moment for the UK Government to take a lead and say that the coalmine will not open?

[Kwasi Kwarteng]

First, the hon. Gentleman will understand that the coalmine is a matter of an independent planning decision. Secondly, I completely deny his assertion that somehow COP26 was a failure. It was not. It was a great success, thanks to the COP26 President, my right hon. Friend the Member for Reading West (Alok Sharma). Huge commitments were made, which everyone is supporting.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Tapadh leibh. Scotland’s offshore islands could produce as much energy each day as some EU countries are sending to the United Kingdom. When will we see contract for difference levels match interconnector requirements? The Secretary of State knows about this subject. Will that come soon, especially for the Hebrides? I say gently to him that, as he knows, probably no other country in Europe would be squandering this opportunity.

[Kwasi Kwarteng]

The hon. Gentleman knows that I am fully committed to remote island wind. In fact, when I was Energy Minister, I spearheaded the move to have a separate pot for renewable island wind. He lobbied successfully, and I am happy to speak to him about that at any time of his choosing.

[Paul Howell (Sedgefield) (Con)]

Does my right hon. Friend agree that the recent comprehensive spending review and Budget announcement shows that the Government are delivering an historic increase in R&D investment to build back better with a high skill and wage economy for all of the UK? That is very much reflected in NETPark in Sedgefield, which he had the pleasure of visiting recently.

[Kwasi Kwarteng]

I was delighted to see my hon. Friend in his constituency and to see the wonderful businesses that he is promoting. He will know that the CSR is fully committed to driving our science superpower status through unprecedented investment.

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[Darren Henry (Broxtowe) (Con)]

11. What steps his Department is taking to support the renewable energy sector.

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

We are holding the largest ever contracts for difference round next month, as my hon. Friend is aware, and only last month we confirmed up to £160 million to support investment in the floating offshore wind industry.

[Darren Henry]

The Government have quite rightly taken action to accelerate uptake of electric vehicles by both subsidising those purchasing a new electric car and banning the sale of petrol and diesel vehicles from 2030. However, in my capacity as co-chair of the all-party midlands engine group, I recognise that vast areas of the midlands are insufficiently served with charging infrastructure. The Midlands Engine’s 10-point plan for green growth looks to tackle this issue. Will the Minister meet me to discuss how we can support the Midlands Engine Partnership, deliver greener transport, create jobs, and cut emissions?

[Kwasi Kwarteng]

I would be very happy to meet my hon. Friend and the Midlands Engine Partnership to discuss how we can decarbonise our economy. I know he does a fabulous jobs as co-chair of the APPG. I have always enjoyed my engagement not only with him but with the Midlands Engine Partnership.

[Sammy Wilson (East Antrim) (DUP)]

Does the Secretary of State at least accept that immediate environmental damage is being caused by the pursuit of renewable energy, with 13 million trees cut down in Scotland for wind farms, forests devastated across the world to produce ethanol for petrol, and Drax power station importing millions of tonnes of wood from America each year? Does he not accept that in an attempt to control the world’s climate, we are actually damaging the environment right now?

[Kwasi Kwarteng]

The right hon. Gentleman and I have exchanged differing views on this subject over many years now. What I do accept is that our drive—our push—for renewables is leading the world in pursuing a decarbonised economy.

[Jacob Young (Redcar) (Con)]

The Secretary of State is well aware that Teesside is the centre of the green industrial revolution. In building new renewable energy capacity, can he confirm that he is happy to visit Teesside to see our plans for linking that renewable energy with green hydrogen production to power our homes in Teesside?

[Kwasi Kwarteng]

Perhaps to the surprise of the House, I can confirm that I am always delighted to visit my hon. Friend. I have done so on many occasions and I look forward to doing so whenever he wants and whenever my diary permits.

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

In a speech last month to the Energy UK conference, the Secretary of State made the case for a decisive shift towards clean energy and away from what he termed “volatile fossil fuels”, on which he said

“we are still very dependent, perhaps too dependent”.

Will he therefore explain how a decision by the Government to permit Cambo, an oilfield whose anticipated lifespan would see it still producing oil four years before we are legally bound to reach net zero, would be anything other than fundamentally at odds with that vision?

[Kwasi Kwarteng]

The hon. Gentleman will understand that the licences under which Cambo was permitted were actually granted when his own party was in government. He will also appreciate that I have always said that there will be a transition. He and his Labour associates want to shut down the industry and cause mass unemployment among the 250,000 people in this country who work in the sector.

[Paul Bristow (Peterborough) (Con)]

12. What steps his Department is taking to increase nuclear power generation.

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[Munira Wilson (Twickenham) (LD)]

13. What steps his Department is taking to support greener, better-insulated homes.

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

We are decarbonising heat through the renewable heat incentive, with an estimated £1 billion this year, and we have announced the boiler upgrade scheme, the green heat network fund and the launch of the green gas support scheme later this month.

[Munira Wilson]

Zero carbon homes was a Liberal Democrat policy that the Tories scrapped after the coalition. That means we now need to retrofit a million new homes. Will the Secretary of State commit to a zero carbon homes standard once again for all new homes built in this country?

[Kwasi Kwarteng]

I am pleased to inform the hon. Lady that we have a heat and building strategy that sets out clear plans and clear ambitions for decarbonising heat, particularly sources of heat in buildings and in homes.

[Robert Largan (High Peak) (Con)]

14. What steps he is taking to support energy-intensive businesses.

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[Robert Largan (High Peak) (Con)]

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

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

First, I congratulate the COP26 President, my right hon. Friend the Member for Reading West (Alok Sharma), on his adept handling of the COP26 negotiations in Glasgow. My Department’s priority now is to turn all that ambition into concrete action. We will continue to attract private investment into green projects, and I am happy to announce that in recent weeks we have seen nearly £10 billion of new commitments at the Global Investment Summit, with £1 billion from SABIC on Teesside, and £230 million announced by Ford on Merseyside. We are getting on with the job of delivering a stronger economy for the UK.

[Robert Largan]

I have recently been contacted by Prisma Colour, another fantastic local business in High Peak that does really important work. Unfortunately, it has been hit by a more than doubling of its energy bills in recent months, which is simply not sustainable. I welcome what the Government are trying to do in the long run to ease supply pressures and help energy-intensive industries to bring down bills, but what can be done in the short term to help fantastic employers such as Prisma Colour?

[Kwasi Kwarteng]

I pay tribute to my hon. Friend for the excellent work he has done in a short time, representing his constituency. He knows that across Government we have regular conversations about how to help energy-intensive industries, and I would be happy to meet him and his constituents to discuss what we are doing.

[Edward Miliband (Doncaster North) (Lab)]

I join the Secretary of State in commending the COP26 President on the progress made at COP26, but we know much greater action is required, and it is the Secretary of State’s job to ensure that every part of our Government acts. There is an immediate test with the UK-Australia trade deal: yesterday, the Australian Government reaffirmed their 2030 target, which is consistent only with 4° of warming, and there are reports that our Government have allowed the watering down of temperature targets in that deal. Surely, if we are serious after Glasgow about not letting big emitters off the hook, the deal must be rewritten to enshrine in it a proper plan for Australia as well as the UK, including for 2030, to keep 1.5° alive.

[Kwasi Kwarteng]

The right hon. Gentleman is absolutely right: we have a duty to ensure that we put net zero at the centre in treaties and in our international obligations. Where I dispute with him is that the Australian deal does mention Paris climate ambitions and does commit to decarbonisation. Lastly, for the first time ever, the Australian Government have committed to net zero. That is a huge achievement, which I wish he would support and endorse.

[Edward Miliband]

The Secretary of State should not be defending the Australian Government’s 2030 target. It is he who said about the negotiations:

“There may have been an issue about specifically putting the 1.5° on the face of the negotiating mandate.”

It is time for the Government not only to talk tough, but to act tough, because we must put pressure on countries such as Australia. There is a clear pattern of behaviour here on climate. Too often, this Government face both ways: the Cumbria coal mine, the Cambo oil field, cutting overseas aid for the most vulnerable countries, cutting air passenger duty for domestic flights and failing to invest in green recovery at home. He is the man supposed to be in charge of ensuring the Government speak with one voice. Why does he think he is failing to do so? Is that the reason why people are calling for the COP26 President to take back control of energy and climate change?

[Kwasi Kwarteng]

The COP26 President did a marvellous job, and the person speaking with two voices is the right hon. Gentleman. On the one hand, he says COP was a great success, and then on the other hand, he is saying the Government have failed. It is inconsistent and it is implausible.

[Simon Jupp (East Devon) (Con)]

T4. Cleaner and greener aviation is undoubtedly the future, and Exeter airport is at the forefront of innovation in aerospace. This summer, we saw the first hybrid electric test flight on a commercial route, between Exeter and Newquay, thanks to support from this Government and this Department. What further steps will my hon. Friend take to support innovative green aviation to help it really take off?

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[Gareth Thomas (Harrow West) (Lab/Co-op)]

T2. A loophole in company law means that Bain Capital does not have to reveal how much it is paying the army of advisers helping it demutualise Liverpool Victoria. FTI Consulting, Clifford Chance, Fenchurch Advisory Partners and others have all benefited, perhaps by as much as £50 million or more. Does the Secretary of State not think that the members of Liverpool Victoria, whose money this is, have a right to know exactly how their money is being spent?

[Kwasi Kwarteng]

The hon. Gentleman will know, from his long experience in this House, that many of these issues relate to financial disclosure, which is obviously in the remit of my right hon. Friend the Chancellor. I am particularly interested in this deal. I think he is absolutely right that people who are shareholders and people who are customers have every right to transparent data, and I would very much support that.

[Lee Anderson (Ashfield) (Con)]

T6. Carl Berridge’s company in Ashfield produces energy-saving boilers and heating solutions for industry, and he tells me that many businesses are unaware that new technologies can substantially reduce their energy consumption in a cost-effective way. What are the Government doing to ensure that industry gets the right information and businesses such as Powergas have the incentives they need to reduce the carbon footprint of industry?

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[Kirsten Oswald (East Renfrewshire) (SNP)]

T9. This UK Government are simply failing to support Scotland’s potential for green investment. We have heard as much today: the UK’s most advanced carbon capture and storage proposal shelved; grid connection charges punishing Scotland’s renewable energy projects; and funding for tidal power held up as the Prime Minister dithers. Having squandered £350 billion of oil revenues from the North sea, can the Secretary of State appreciate why there are concerns that his Government will simply do the same with our vast energy resources?

[Kwasi Kwarteng]

I remind the hon. Lady that this Government are the first UK Government to commit to a North sea transition deal. That deal is a world first; it is leading the world and showing how we can decarbonise a historically very productive sector to drive new technology and new economic opportunity.

[Dr Jamie Wallis (Bridgend) (Con)]

T10. I recently had the pleasure of meeting with Infinite Renewables in my constituency, which has done great work facilitating renewable projects across the UK. It pointed out to me that the strike price for nuclear power provides generous support to nuclear projects, but those supported by private wire power purchasing agreements in the renewables sector get very little support. What are the Government doing to facilitate private wire PPA renewables in the UK?

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

As my hon. Friend the Member for East Renfrewshire (Kirsten Oswald) said, Scotland’s world-leading carbon capture and storage project at St Fergus was snubbed by the Government in favour of their pork-barrel interests in the red wall. Will the Secretary of State guarantee the Acorn team funding in the next round, or should we conclude that Scotland can only decarbonise with independence?

[Kwasi Kwarteng]

Again, I have to completely refute what the hon. and learned Lady says. The position is absolutely clear: Acorn was an excellent project and is on the reserve list, and I am looking forward to working with her constructively to make sure we land this very exciting project.

[Jerome Mayhew (Broadland) (Con)]

The sooner the offshore transmission network is constructed in the southern North sea, the better. It will save money for consumers and limit the damage to local communities and the environment. So will the Minister commit to restarting the previously planned consultation on a regulated asset base finance model for renewables and low-carbon energy-generating assets as soon as possible?

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[Peter Aldous (Waveney) (Con)]

In Suffolk and Norfolk, investment in research and development is vital to making the most of the opportunities emerging in such sectors as low carbon and life sciences, as well as to tackling pockets of deprivation, particularly in coastal areas. It is thus concerning that, in the Budget Red Book, the east of England is coupled with London and the south-east as an area from which spending on R&D will be diverted and in which it will be discouraged. Will my right hon. Friend work with his colleagues across Government to ensure that this discrimination against Suffolk and Norfolk is removed and is not included in the levelling-up White Paper?

[Kwasi Kwarteng]

I pay tribute to the fantastic work that my hon. Friend has done representing his constituents over 11 and a half years. He will know that I personally, as a Minister, have always been committed to the east of England. I have visited him in Lowestoft, I have visited offshore wind projects, and I would be very happy to speak to him about how we can drive the R&D programme and how East Anglia and his constituents can benefit from the UK’s science superpower status.

[Ian Paisley (North Antrim) (DUP)]

Is it not the case that the most exciting industrial development in the UK at present is hydrogen production? Does the Secretary of State welcome the pioneering work by JCB, under Lord Bamford’s direction, along with the partnership with Queen’s University Belfast, to produce the first working hydrogen combustion engine, which has made the past the future? What support will the Secretary of State give to capitalise on that engineering excellence to ensure that British jobs and British tech flow from it?

[Kwasi Kwarteng]

The hon. Gentleman will be well aware that I am fully conscious and fully supportive of the great work that Mr Bamford and his colleagues are doing driving Wrightbus and driving the hydrogen economy. The hon. Gentleman may know that I am very shortly to visit to Northern Ireland to see that great work on the ground.