Oral Answers to Questions

Lee Rowley Excerpts

Tuesday 29th March 2022 Commons Chamber

[Suzanne Webb (Stourbridge) (Con)]

6. What assessment he has made of the capacity of the UK’s nuclear power generation industry to strengthen energy security.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

Nuclear energy is crucial in providing low-carbon baseload power, which, over the long term, assists in reducing our reliance on fossil fuels and our exposure to volatile global prices. We will continue to emphasise the vital role of the nuclear sector, including in the forthcoming energy supply strategy.

[Suzanne Webb]

Our very own atomic kitten, my hon. Friend the Member for Ynys Môn (Virginia Crosbie), and I are going on a road trip to Hinkley Point C. When I did my research for the visit, I noticed that £5 million-worth of business opportunities had been realised by 36 companies in the west midlands, including three in my constituency, on the back of Hinkley Point C. Does the Minister agree that our investment in nuclear energy is not just about clean energy but about the supply chain opportunities that it will bring to small and medium-sized enterprises and manufacturing in my constituency?

[Lee Rowley]

My hon. Friend is right to emphasise not only the importance of nuclear in concept but the huge significance of the supply chain, which is estimated to support more than 60,000 jobs across the whole of the United Kingdom, including in SMEs in Stourbridge and Ynys Môn. And if I may shove in my knowledge of early 2000s pop music, we are working hard to make the nuclear industry whole again. [Laughter.]

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

That was written by a member of Orchestral Manoeuvres in the Dark, so we will give the Minister that.

Energy security is of vital significance, particularly at the moment, and nuclear is part of the clean energy mix. Does the Minister understand that the United Kingdom, which has the second highest tidal range on planet Earth after Canada, is not making anything like sufficient use of that permanent tidal energy? Will he look again at his Government’s policies on tidal, marine and hydro energy and give a boost not only to Cumbria and its energy coast but to the whole country?

[Lee Rowley]

The hon. Gentleman raises an important point about the importance of a diversified and secure energy supply. This is one of the reasons that the Government are looking at all forms, including tidal, and it is why we would encourage people from across the House to agree not just with tidal but with nuclear as well.

[Virginia Crosbie (Ynys Môn) (Con)]

In the 2018 nuclear sector deal, £20 million was pledged towards Britain’s first thermal hydraulic testing facility, in north Wales. Does my hon. Friend agree that it is vital that the UK establish world-leading capabilities in thermal hydraulics, and can he provide an update on the next steps for this vital investment?

[Lee Rowley]

My hon. Friend is an absolute champion of the nuclear industry. I believe that this proposal would make the UK third in the world. We are working hard to see what can be done and I will certainly pass on her keenness for progress to be made.

[Tommy Sheppard (Edinburgh East) (SNP)]

7. What steps he is taking to monitor the environmental performance of holders of existing Contracts for Difference in the context of new standards agreed at COP 26.

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[Jack Brereton (Stoke-on-Trent South) (Con)]

8. What steps he is taking to support investment in UK manufacturing.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

The UK remains one of the world’s largest manufacturing nations, and the Government agree that manufacturing plays a vital role in the health of the UK economy. It is ultimately for British manufacturers to make decisions on their own strategies, but the Government continue to support them through a range of initiatives on productivity, costs, innovation and investment, ranging from Made Smarter to the catapults and the global Britain investment fund.

[Jack Brereton]

I very much welcome the Prime Minister’s response last week to my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft) that energy-intensive manufacturers such as ceramics will be covered by the upcoming British energy security strategy. These sectors are more important than ever, particularly for future technology, and they need support to address high energy costs now. Will my hon. Friend the Minister do more to support ceramic manufacturers to invest in new technologies and increased energy efficiency?

[Lee Rowley]

There is no bigger champion of the ceramics industry than my hon. Friend and his colleagues from Stoke, who work as an excellent team in supporting the industry as a whole. The Government have worked with industry for many years to mitigate the costs of energy, including an aggregate of £2 billion-worth of subsidy since 2013. From our multitude of conversations on the ceramics industry with him and his colleagues, I know he will encourage manufacturers in his constituency to consider other opportunities such as the industrial energy transformation fund.

[Zarah Sultana (Coventry South) (Lab)]

Earlier this month, bosses triggered a consultation on redundancies at Liberty Pressing Solutions, a business in my constituency that produces high-quality products for the automotive industry. Financial difficulties at its parent company, the Gupta Family Group Alliance, have put its future in doubt, and with it the jobs of more than 200 people. I visited the factory and met the company’s skilled, dedicated workers, who risk being plunged into unemployment just as the cost of living crisis intensifies. What is the Minister doing to protect skilled jobs such as these, which are vital in transitioning to a green and sustainable economy? Will he meet me to discuss how we can save these jobs?

[Lee Rowley]

The hon. Lady is right to highlight the importance of a strong manufacturing base, which is one reason why we have spent so much time supporting and having active discussions with manufacturing. The challenges around Liberty are well known, and I have also visited Liberty sites in recent weeks and months. I am happy to meet her to talk further.

[Mark Pawsey (Rugby) (Con)]

Manufacturers will open their factory doors on 7 July in a UK-wide open house, which is an opportunity to showcase the diversity of the sector, the range of highly skilled jobs on offer and the amazing opportunities for reskilling and career development within UK manufacturing. Will the Minister join me in supporting National Manufacturing Day 2022?

[Lee Rowley]

I could hardly say no. I look forward to doing that and visiting many great manufacturers across the country. We are highlighting the brilliant work of the sector, and we continue to champion it as a vital part of the UK economy.

[Alex Cunningham (Stockton North) (Lab)]

The Government are well aware of the crisis they have created for energy-intensive industries such as those on Teesside. Now that the EU has set aside €50 million to help its firms with energy costs, British firms such as CF Fertilisers, which have no such support, face even tougher competition. I know the Minister is visiting the company tomorrow, but what will the Government do to address the impact of this EU funding on UK fertiliser production? Can he advise on when a decision will be taken about renewing the electricity compensation scheme for energy-intensive industries, which runs out on Thursday?

[Lee Rowley]

I thank the hon. Gentleman for his contribution. He will be aware of the substantial support we have given manufacturers over many years, including more than £2 billion to mitigate energy prices. I note that in Teesside there have been recent announcements that demonstrate the confidence people have within manufacturing as a whole.

[Shaun Bailey (West Bromwich West) (Con)]

My hon. Friend will know that small and medium-sized manufacturers make up the core of the manufacturing base in the Black Country, but many of mine in Wednesbury, Oldbury and Tipton will be slightly concerned that they have missed out on investment because of their size. Will he meet me and manufacturers from the Black Country to discuss how we can ensure that they make the most of the packages on offer for them to succeed?

[Lee Rowley]

My hon. Friend is a great champion for his constituency. I have been to the west midlands regularly to talk about the importance of the manufacturing base, and I would be happy to meet him to talk about West Bromwich.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

In the past, the Nigg oil fabrication facility in Easter Ross built some of the mightiest production platforms for the UK—I worked in that yard. Today, wind turbines for both onshore and offshore power seem to be built anywhere but in Scotland. The firm that owns the Nigg yard announced plans almost four months to get into fabrication, but since then we have not heard a lot. I do not expect the Minister to have the answer at his fingertips, but will he ask his Department to see how progress is- coming along on that front, because it is crucial for the local workforce?

[Lee Rowley]

I would be very happy to speak to the Department and come back to the hon. Gentleman on that.

[Richard Fuller (North East Bedfordshire) (Con)]

Investment is attracted to areas that have agile, pro-growth regulatory environments. In this country, we delegate a lot of the implementation of regulation to agencies, but the oversight and assessment of regulatory agency performance is weak. Will the Minister look at ways in which we can improve how we regulate the regulators?

[Lee Rowley]

My hon. Friend highlights an important point about getting the balance right between regulation, and ensuring that the output and productivity of these industries works. I would be happy to talk to him more if that is helpful.

[Mr Speaker]

I call the shadow Minister, Bill Esterson.

[Bill Esterson (Sefton Central) (Lab)]

The spring statement did not

“address the complex challenges facing the manufacturing sector”.

It just is not

“tenable for thousands of businesses”

and it is

“kicking the can down the road”.

Those are the words of three businesses that are asking for help. So how about this: first, cancel the 10% increase in national insurance payroll tax; secondly, cut energy bills by up to £600 per household; and, thirdly, set up a £600 million energy-intensive industries contingency fund? Our plan is following the evidence from the business community of what is needed. Why will this Government not help businesses that are crying out for support?

[Lee Rowley]

The hon. Gentleman highlights the importance of manufacturing, which we have already talked about in these questions. This Government are a champion of manufacturing—[Interruption.] I am so glad that all Opposition Members agree with me. If they really do, they would recognise that ensuring a strong manufacturing base is incredibly important. The Labour party can provide no lessons, on the basis that it decimated manufacturing before 2010.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

I am glad now to know who the Minister’s favourite in Stoke-on-Trent is. Steelite, based in Stoke-on-Trent North, Kidsgrove and Talke, received funding from the regional growth fund, but it is being asked to pay back £685,000 plus interest due to capital underspend. The reason for that is simple: a global pandemic came across in March 2020, so it was not viable for Steelite to invest in capital when it did not even know whether it was going to continue to exist or how long the pandemic was going to last. Will my hon. Friend meet me and representatives of Steelite to discuss how that funding can continue to stay, so that Steelite can add to its factory and therefore employ more people locally?

[Lee Rowley]

I am happy to meet my hon. Friend to talk about that in more detail.

[Mary Glindon (North Tyneside) (Lab)]

9. What steps he is taking to support small businesses with rising costs.

--- Later in debate ---

[Greg Smith (Buckingham) (Con)]

12. What assessment he has made of the potential role of synthetic fuels in achieving net zero targets.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

The net zero strategy highlighted the potential importance of sustainable and synthetic fuels as part of the transition to net zero and committed to additional strategies. In aviation, the Government have already announced their ambition to deliver 10% sustainable aviation fuels by 2030.

[Greg Smith]

In our inquiry, “Fuelling the future”, the Transport Committee has heard significant evidence of the role that synthetic fuels can play as drop-in fuels that mean that vehicles, aircraft, ships, cars and plant do not have to be changed—the fuel just works in them. Given this, will my hon. Friend commit to ensure that synthetic fuels and their development are given equal billing with other energy sources?

[Lee Rowley]

My hon. Friend makes two crucial points: first, that technological innovation—the ingenuity of human endeavour—is crucially important in helping us to get to net zero in the first place; and secondly, that it is very important that we let a multitude of technologies and innovations grow and develop, working in conjunction with private enterprise, to help to solve society’s challenges.

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

14. Whether he was involved in the decision of the Oil and Gas Authority to change its name to the North Sea Transition Authority.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

The North Sea Transition Authority decided to change its name to reflect its important role in the energy transition, driving the UK upstream oil and gas industry towards net zero. My right hon. Friend the Secretary of State was consulted on and supported this change.

[Caroline Lucas]

No amount of greenwash can hide the fact that the Oil and Gas Authority’s primary purpose is to pump every last drop of oil and gas from the North sea, but the International Energy Agency report that was commissioned by this Government is clear that there can be no new exploration for fossil fuels. Let me pre-empt the Minister’s response by saying that no one is suggesting turning off the taps tomorrow, as he regularly claims. We absolutely need a transition that is fair to workers; what we do not need is a so-called climate pass to allow the Government to ignore climate consequences and license more explorations supposedly on the grounds of national security. Can he assure us that he recognises that climate change is itself an issue of national security, and that if we are serious about our net zero commitments there can be no exemptions from the climate compatibility checkpoints?

[Lee Rowley]

If the hon. Lady accepts the principle of transition, then she needs to accept the principle that we will need oil and gas for a number of years yet. That is logical, simple and understood. The only greenwashing that is going on is the Green party pretending that it is interested in green issues when it is only interested in socialism.

[Munira Wilson (Twickenham) (LD)]

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