Russian Oil Import Ban

Liz Saville Roberts Excerpts

Wednesday 9th March 2022 Commons Chamber

[Kwasi Kwarteng]

My right hon. Friend is well versed in departmental responsibilities and he will know that issues to do with taxation are squarely within the remit of the Chancellor of the Exchequer. I personally feel that a windfall tax is not the way to go in this moment, because there is huge uncertainty about investment in the North sea as it is. If we were to entertain the idea of a windfall tax, that would simply frighten the investment, destroy jobs and destroy wealth creation. I do not think that is in anyone’s interest.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Putin’s bloody war in Ukraine is being financed by Europe’s addiction to fossil fuels, so we have to speed up our green transition, but more than one in 10 Welsh households are living in fuel poverty and the number is growing daily. Starved of public transport investment, Wales is the most car-dependent nation in the UK, so we will be disproportionately affected by rising prices. Rural regions of Scotland and England with high levels of car dependency are eligible for the rural fuel duty relief. Will the Secretary of State extend that to Wales?

[Kwasi Kwarteng]

Even if I wanted to, that is not in my power, but I would be very happy to talk to people across Government to address the issue that the right hon. Lady has raised.

Subsidy Control Bill

Liz Saville Roberts Excerpts

3rd reading
Monday 13th December 2021 Commons Chamber

[Kevin Hollinrake]

I rise to speak briefly in support of the amendments tabled by my hon. Friend the Member for Weston-super-Mare (John Penrose). I will particularly address amendments 1 and 8, which are about something brutally simple: scrutiny and transparency. The Government are rightly approaching this through their obligation to meet the competition requirements of the European Union. For that purpose, £500,000 would perhaps be the right level.

I think this is about more than competition; it is also about cronyism and, potentially, fraud. My hon. Friend put it well when he talked about armchair auditors. Time and again, information about things going wrong is brought to the attention of parliamentarians like me by members of the public and members of the press. The more we give people access to such information, the more likely we are to clamp down on any suggestions of cronyism. Although most are ill-founded, it is important that we clamp down on any suggestions of cronyism and of fraud.

I agree with my hon. Friend that we should lower the threshold for reporting and registering on the database from £500,000 to £500. That seems an enormous difference, but consider what we know already. The easiest place to look is the furlough scheme and the bounce back loan scheme. The National Audit Office estimates that some £26 billion may have been lost in those coronavirus loan schemes, not all of it through fraud—some of it was through non-repayment of debt, or defaults. Nevertheless, a significant proportion of the moneys granted to businesses, which were effectively a subsidy, might have gone missing. The Government rightly put together a huge new team of people within Her Majesty’s Revenue and Customs, with an investment to the tune of £100 million, to try to clamp down on it by investigating the potential for fraud.

Alongside that, it would be a simple requirement for the database to include every single subsidy over £500 for the armchair auditors, the press, the public and—another important component—the whistleblowers. People within an organisation often do not know what subsidies the business may have received, but they might be able to identify the moneys as inappropriate and alert the authorities to that effect. Some 43% of all crimes are now economic crimes, and 40% of those are brought to light by whistleblowers, so it is hugely important that they have access to this information so they can scrutinise what is happening within these businesses.

My hon. Friend the Member for Weston-super-Mare asked why would we not do this? One answer might be bureaucracy and cost—we are not big believers in bureaucracy and unwanted, unneeded cost, and we rightly want to make our system simpler, not more complicated, for businesses—but the requirement to publish on the database is negligible. As others have said, businesses have to issue a letter anyway, so putting five bits of information on a database is not exhaustive. The impact assessment suggests that the total cost of doing it annually will be only £20,000 extra, which is insignificant in terms of the cost of red tape, but the benefits are huge.

As I mentioned in my earlier intervention, the US had much lower levels for reporting than we did. Our level was €500,000 for telling the EU who received benefits from the loan schemes, and it was done quite late in the day, after the loans were received by businesses. In the US it was $150,000, which effectively brought about a $30 billion return of moneys to the US Treasury because those businesses were embarrassed to be receiving the moneys inappropriately.

Another reason we are not doing this is that, when the British Business Bank looked at the coronavirus business interruption loan scheme and the bounce back loan scheme, it felt it should not report on this because it might be likely to lead to

“speculation about the Recipients’ financial position”.

I do not agree. Even if it were true, we are already putting on the database loans over €500,000. Are we saying only businesses below that level would have that problem? That is clearly not the case. A lot of businesses that received coronavirus business interruption loans over £500,000 were quoted on AIM, for example, including my own business. I draw the House’s attention to my entry in the Register of Members’ Financial Interests, although I am no longer associated with that business in any meaningful capacity, as it was subject to a takeover earlier this year. I would have no problem at all with the loan we took under the CBILS programme being declared on a database so people could see it. The reasons we were taking it were quite obvious and I do not think it brought our financial position into question at all. Clearly, in the desperate times we were in, most people would see that we were going after desperate measures in terms of insurance policies, which the loan was to most companies. I do not see that as a valid reason for preventing the declaration to the database being completed for all subsidies down to that £500 level.

I will refer quickly to amendment 8. Allowing individual challenge to individual decisions under a subsidy scheme is another check and balance—another way to ensure money is being handed out appropriately. I think all these amendments make sense, which is why I have signed them all. To give the public, the press and Parliament access to the database is a crucial step. I do not think it would be a bureaucratic issue at all for the people responsible for it. I know we have spoken about it, but I urge the Minister to look at this again and to table such amendments at a later stage, if they are not accepted today.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Diolch yn fawr, Dirprwy Lefarydd. It is interesting to hear the hon. Member for Weston-super-Mare (John Penrose) describe this Bill as part of a post-Brexit dividend. For many of us from the devolved nations, it actually bodes ill. It bodes ill in relation not just to key devolved competencies, but to questions about whether this negates the power of public procurement and, particularly, whether it undermines the levelling-up agenda. We would expect to see more principles in operation than we currently do, particularly when we compare this with the regimes we worked with and complained about, but were familiar with, under the European arrangements.

My party, Plaid Cymru, will support new clause 1, proposed by the hon. Member for Aberdeen North (Kirsty Blackman), which would exempt devolved agricultural subsidies from the subsidy control requirements. This is a vital new clause that protects our farmers and ensures that the devolved nations can continue to tailor support to local requirements and priorities. I do not think I need to persuade anybody in this Chamber that UK agriculture is highly regionalised in its type, its significance, the impact it has on its local economies and whether it requires region-specific subsidy for its needs.

I am very much aware of that for the less favoured areas, representing as I do the constituency of Dwyfor Meirionnydd, which is very much an upland area. I have whole communities watching these legislative developments with some concern. I know the farmers’ representatives from Wales, Scotland and Northern Ireland are equally concerned about the implications of what, on its face, appears to be a fairly technocratic Bill, but none the less sets a precedent for the sort of legislation we see coming out from the trade and co-operation agreement in the United Kingdom Internal Market Act 2020.

In Wales, where more than 80% of land is used for agricultural purposes and farmers are the bedrock of our rural communities, guardians of our natural environment and protectors of our cultural identity, subsidies are vital to protecting that legacy. The latest farm business survey showed that subsidies provide on average 30% of upland cattle and sheep farms’ income. Leaving their fate to a Westminster Government set on securing questionable trade deals that boost UK GDP by 0.01% to 0.03% while at the same time sacrificing our farmers is clearly unacceptable. Equally, without this new clause, the Bill would pre-emptively tie the hands of the Welsh Government as they look to establish a new, post-EU subsidy regime. I therefore urge hon. Members across the House to support the clause to protect our farmers, as well as amendment 11 on net zero commitments.

I also extend my support to the amendments tabled by the Opposition, including amendments 19, 23 and 26, which would extend the rights of the devolved Governments. Although I believe that they could, and possibly should, be strengthened by recognising the value of the co- production of guidance, they nevertheless address somewhat some of the Bill’s governance issues. As we have seen time and again, the Government play hard and fast, and make the rules up as they go along. That is why such guarantees as are offered by the amendments are so important.

Net Zero Strategy and Heat and Buildings Strategy

Liz Saville Roberts Excerpts

Tuesday 19th October 2021 Commons Chamber

[Greg Hands]

Mr Speaker, as a former Chief Secretary to the Treasury, you can imagine that I take a strong and ongoing interest in exactly that sort of question. We at BEIS have those discussions with the Treasury and the whole of Government all of the time to make sure that the plan here is both achievable and affordable and that it will be realised to enable us to meet all of those targets that we have set ourselves. I am looking forward to interacting with my hon. Friend on any specific concerns that he may have going forward, but his question and his points are the sorts of things that are very much on our minds.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Obviously, £450 million for heat pumps across England and Wales is a good thing, but it is set to benefit only 0.3% of Welsh households, while the future generations commissioner calculates that the cost of decarbonising Wales’s housing stock stands at £14.75 billion. The Treasury has resisted every step on the road to COP26. Our economy, our environment and our communities need Treasury funding to step up to the mark to lead the transformational investment. That will give the private sector confidence. How confident is the Minister that this news will reach us within the next 10 days?

[Greg Hands]

A very substantial amount of Government money is going into the heat and building strategy—I think it is in the region of £4 billion. I will correct the right hon. Lady. On this heat pump scheme that we have introduced, the idea is that it kickstarts the market and gets the private sector providing solutions. We have already seen a really good response to our signals from the private sector. That is exactly right, because the solutions to issues such as home heating will lie principally with the private sector.

Subsidy Control Bill

Liz Saville Roberts Excerpts

2nd reading
Wednesday 22nd September 2021 Commons Chamber

[Kwasi Kwarteng]

In her brief time in the House, my hon. Friend has been an impressive and focused campaigner on behalf of her constituents and the wider industry. As she knows, I am a particular fan of the steel industry, and want to seek a sustainable future for it here in the UK. I cannot give any budgetary guarantees, as she will appreciate, but this system does give us much more flexibility than was the case previously.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Will the Secretary of State give way?

[Kwasi Kwarteng]

May I make a little more progress? Many other colleagues want to speak.

This is a Bill that promotes autonomy, transparency and accountability. It will empower hundreds of local authorities, as well as the devolved Administrations and other public authorities, to take control, allowing them to design subsidies to meet local needs while also meeting national policy objectives.

[Liz Saville Roberts]

I am grateful to the Secretary of State for giving way to me now. I wanted to pursue his earlier comment. The Conservatives appear to be perpetuating a gift for blaming the EU for everything, to all intents and purposes, and it is no surprise that we have heard a little more of that today. We must bear it in mind that the UK was known for underutilising EU state rules—we were ranked 22nd out of 28 member states in 2018—and it could be suggested that that was due to Conservative ideology rather than to any intrinsic problem.

This Bill will steamroll devolved competence. Does the Secretary of State agree that it reflects a new Conservative ideology, which is deliberately dismantling the powers of devolved Governments and their accountability as elected Governments per se?

[Kwasi Kwarteng]

That was a rather lengthy intervention, if I may say so, although I do not want to entrench on the Chair’s prerogative. As the right hon. Lady will appreciate, the Bill is a function of our leaving the EU. We are not trying to rehearse the arguments of Brexit; we were doing that long before she was elected to the House. I was certainly involved in those debates.

The Bill sets out a regime founded on seven clear and transparent principles. According to those principles, the subsidy must be designed to remedy a market failure. It must be designed to bring about a change in behaviour. It cannot normally cover costs that would have been funded in any case. It must be appropriate, proportionate, and designed to minimise any distortions to competition and investment in the United Kingdom. Finally, the public authority giving a subsidy must carry out a balancing test, and proceed only if the benefits of the subsidy outweigh any distortions to UK competition and investment, and to international trade.

Those principles will be supported by guidance for all to see. That will ensure that public authorities fully understand their legal obligations, and will make clear which subsidies are permitted and prohibited and under what circumstances.

--- Later in debate ---

[Liz Saville Roberts]

If the devolved Governments are as content as the Secretary of State is saying, why are the Welsh Government making a legal challenge to this Bill?

[Kwasi Kwarteng]

As I said, there is agreement on the fundamentals of the regime. The seven principles are not contested; they are agreed across the devolved Administrations and the UK Government. I am not privy to the exact motivation of the devolved Administration in this case but, as far as the general principles are concerned, there is a wide measure of consensus.

It is worth reminding the House that the devolved Governments will have more control over subsidies than they have ever had before. Previously, it was Brussels that made the decisions about which subsidies could be granted to support viable businesses. Now, with this Bill, it will be for the elected Governments in Edinburgh, Cardiff and Belfast to make those decisions.

During the trade and co-operation agreement negotiations and the creation of this new regime, ministerial colleagues, officials and I have worked closely with the devolved Administrations, and I thank those Administrations and the officials and Ministers here in Westminster for their considered and constructive input to the development of this policy.

Nuclear Fuel Manufacturing

Liz Saville Roberts Excerpts

Tuesday 7th September 2021 Westminster Hall

[Mark Menzies (Fylde) (Con)]

I beg to move,

That this House has considered continued nuclear fuel manufacturing in the UK.

It is a pleasure to move the motion under your chairmanship, Mr Betts. I know that you are very passionate about manufacturing and skills, so I cannot think of a more appropriate person to be chairing today’s debate.

Springfields nuclear fuel manufacturing plant is located in my constituency of Fylde. It is not just a nuclear fuel manufacturing plant; it is the United Kingdom’s only nuclear fuel manufacturing plant, so by any definition that makes it a key UK strategic asset. That is a theme that I want to touch on later in my speech. Beyond that strategic importance, over 800 people are employed directly at Springfields, with employees hailing from the full breadth of the north-west’s nuclear arc, and with the wider supply chain employing countless thousands more. Indeed, Government estimates indicate that fuel fabrication facilities in the north-west support over 4,000 direct and indirect jobs, including roughly 400 people at Urenco in Capenhurst, who are likely to be impacted hard by any drop-off in demand at Springfields.

Among these employees, roughly a third of those who work on site began their career as apprentices, jumping at the chance of what were jobs for life, as 2,000 people have done since apprenticeship schemes started at Springfields 71 years ago. Among those was the current managing director, Brian Nixon. I hope that demonstrates that these are secure, well-paid jobs, of the kind that must be at the heart of the Government’s levelling-up agenda, particularly in a sector that has at its heart the north-west’s economy with its industrial base.

Beyond the local economy, our nuclear industry is also helping to forge the UK’s path towards achieving our net zero ambitions, having already produced the nuclear fuel that has powered the equivalent of 20 years’ energy consumption since 1946.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

I am sure the hon. Gentleman shares my concerns that the UK had to fire up West Burton A yesterday, and that we are now 3% dependent on coal this year, at a time when the Government are talking about phasing out the use of coal for electricity generation by 2024. If we are to achieve our green credentials, particularly in the year of COP26, we have to look at all the options, and nuclear is inevitably among those options.

[Mark Menzies]

The right hon. Lady has made a very powerful point that I think everyone present would agree with. As we look to build towards that low-carbon future, with the backdrop of an ever more uncertain world, we must also strengthen our energy security. Sovereign manufacturing capability must be at the heart of that, particularly that of our sole civil nuclear fuel manufacturing site, which of course is Springfields. One lesson that the pandemic taught us is that when countries—including our closest allies—meet obstacles, they will seek to protect their own interests. It is simply inconceivable that in the thriving nuclear industry of the future, we may be reliant on overseas markets for the core parts of our reactor supply chain.

From an environmental perspective, it is also believed that existing uranium stocks could be enriched and used to make fuel. Existing stocks are sufficient to power Sizewell C throughout its lifetime, and Springfields Fuels Ltd has built an industry hub, working closely with bodies such as the National Nuclear Laboratory.

Let us look at the challenges. Although the future is full of promise for Springfields and the wider UK nuclear sector, significant and urgent challenges remain—namely, a short-term drop-off in fuel orders that risks causing redundancies and, more worryingly, the irreplaceable loss of skills. At the heart of this is the likelihood of early closure and uncertainty around Dungeness B, Hinkley B and Hunterston. With 70% of site income related to advanced gas-cooled reactor fuel manufacture, that uncertainty has seen a sudden drop-off in demand. Given the possibility that manufacturing on existing orders will end as early as 2023, this really is an urgent situation, and retrospective action cannot resolve the issue.

We are also waiting on decisions from the Government about the next generation of reactors—the small modular reactor fleet—with Sizewell C and other proposals still to be approved. Even with approval, construction will take several years, which means a lengthy gap until Springfields-manufactured fuel is in use. That ambiguity is causing delays in ownership-level decisions about the future, adding to the uncertainty, particularly among the workforce.

In the short term, to cope with the drop-off in demand, Springfields needs to find sources of income to support continued work and employment. To date, the redundancies have been voluntary, but that will likely not be the case going forward for employees, management and the unions. I pay tribute to Unite and Prospect for the incredible way in which they have engaged on a cross-party basis to represent the interests of their workforce. I have corresponded with constituents working on site, who have made their feelings clear. Some other opportunities in the wider nuclear sector are also proposed, such as decommissioning, but the site’s unique selling point is its ability to produce nuclear fuel, and that must be protected.

So what are the solutions? As the Minister knows, I come to this debate not with challenges but with key asks. First, it is important to say that this is not a company or a sector in decline. The need is just for support to help bridge the gap before the new technology comes into play and we usher in a golden age of new nuclear. There is a world-class skills base at the site, with plenty of opportunities on the horizon, particularly in the latter part of the decade. The Government need to take a long-term view of the industry. Given that no similar facility exists in the UK, those skills will be impossible to replace. Many of the people who have taken voluntary redundancy were there as apprentices, and the collective knowledge among those people really is quite something. To lose that is shocking.

The vision for net zero looks to 2050, and to lose a key component in a low-carbon industry in the mid-2020s, at the start of our net zero journey, due to a short-term approach is incredibly counterproductive. In the long term, it is essential to have a holistic approach that incorporates as much UK involvement in new deals as possible. For example, Lancashire is already at the heart of SMR—small modular reactor—manufacturing in the UK, and that technology of the future creates huge export potential.

[Liz Saville Roberts]

I thank the hon. Gentleman for giving way; he is being very generous with his time. Trawsfynydd in my constituency is widely recognised as one of the best sites, and the first of its kind, for SMR. I am sure he will welcome the Welsh Government’s appointment of Mike Tynan to Cwmni Egino, the company that will bring this forward. His point about the risk of losing skills relating to fuels and generation per se is critical. If the Government are serious about looking at nuclear among our options, we have to maintain those skills.

[Mark Menzies]

Indeed. If I may comment without embarrassing the right hon. Lady, she is a true champion of the workforce in her constituency, and she never misses an opportunity to make the case for investment in her area and champion that technology.

However, this new technology can be achieved only if the Government set out their vision for the UK’s future SMR fleet, including a regulatory framework and site proposals.

On SMR and AMR, I welcome the investment, particularly from the United States, but a way for investors to demonstrate their commitment is for them to promise to manufacture fuel in the United Kingdom. I strongly believe that a commitment to produce UK fuel for UK reactors must include all future UK projects and the possible transition of existing EDF contracts to Springfields. To achieve that, it would be a huge step forward if the Minister held meaningful discussions with EDF and US investors to work towards gaining such assurances on future contracts and to move some of the present contracts to the UK.

There are many ideas about the next phase, but one is that Framatome could manufacture at Springfields under licence, or that Westinghouse could manufacture Framatome fuel under licence, which would help to bridge the gap without a major renegotiation of EDF contracts. Indeed, having discussed this possibility—only yesterday, in fact—I know that EDF would be open to having a requirement for UK-manufactured fuel written in to contracts, as it works to solidify the long-term future of its key UK operations. EDF actually wants that clarity and certainty, which would go some way to securing Springfields.

As mentioned, there are huge opportunities on the horizon, but without the go-ahead from the Government, they remain something for the future. Therefore, it is key that the Government affirm their backing for UK nuclear and approve proposals for new reactors. With the spending review coming up and COP26 rapidly approaching, I cannot think of a better time for them to do that than now. However, we cannot just think about Sizewell C, which will provide opportunities for Springfields to fulfil the required contracts; we also have to consider the future, over the next 60 years, of what reliable nuclear energy looks like.

Support for other future opportunities, such as reprocessed uranium, is currently a growing area, and countries such as France rely on fuel imported from Russia. We are a neighbour and strategic partner of France, with a strong nuclear safety record, so with Government support and investment, this is something that Springfields has the expertise to commence work on in earnest.

To conclude, I cannot stress enough that, given the time-sensitive situation we find ourselves in, decisive action is needed at the earliest opportunity to protect this strategic national asset, and the Government must do whatever it takes to safeguard that asset’s future. Mr Betts, coming from Sheffield, you will know that Sheffield Forgemasters was regarded as a strategic national asset, and thank goodness action was taken to protect it. To stall further on nuclear would lead to irreplaceable skills being lost and facilities potentially closing. This is an industry with a great future, but it needs the certainty that Government support on investment and future projects can give.

The employees who I have discussed today are genuinely world-class; many of them are unique in this country in terms of what they do. However, they are ready to take on the new challenges that exist. Government must work with industry to guarantee that UK nuclear fuel will be produced in the UK, and give the go-ahead to the projects that will create those orders. If we do that in a timely way, both the workers and the plant would have a future, a national strategic asset would be protected, our journey towards low carbon would be a safe one, this country would achieve energy security, we would be able to export fuels, with the AMRs and SMRs, to many other countries around the world, and we would truly be heralding a golden era. I call upon the Government to seize this opportunity.

UK Emissions Trading Scheme: Wales

Liz Saville Roberts Excerpts

Tuesday 13th July 2021 Westminster Hall

[Ben Lake (Ceredigion) (PC)]

I beg to move,

That this House has considered the operation of the UK Emissions Trading Scheme in Wales.

It is a pleasure to serve under your chairmanship, Sir Edward. I commend the co-operative approach taken by the UK and devolved Governments in establishing the emissions trading scheme and in agreeing a common framework that treats each nation as an equal partner in our climate efforts. The scheme has brought coherence to one element of our combined efforts to achieve net zero.

There is, of course, room for improvement. I draw the Minister’s attention to concerns expressed by the Green Finance Observatory:

“The elephant in the room is that offsets are fundamentally not about mitigating climate change, or even about removing past emissions, but about enabling future emissions, about protecting economic growth and corporate profits.”

I hope that the Minister will reflect on those remarks when she sums up the debate. They raise two critical questions. First, how will businesses fundamentally reduce aggregate emissions, and do so rapidly? Secondly, what is the role of Government in facilitating that change?

In order to meet our climate targets, we must not only reduce overall emissions but adopt carbon-negative strategies. The most economical and natural of those is tree planting. I hope to expand on that point today and in doing so make a case for more closely linking the UK emissions trading scheme with a separate and voluntary carbon offset market. Both schemes encourage businesses to reduce overall emissions. They are currently unconnected in policy; they run parallel to each other. I accept the technical and policy challenges associated with directly incorporating carbon offsetting into the UK ETS, but I believe that an association between the two schemes, if established, would bring rigour, scrutiny and additional resources to the offsetting process.

Governmental intervention is urgently required to bring much-needed stability to the voluntary carbon offset market in Wales. My hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards) recently highlighted that large companies are already purchasing vast tracts of agricultural land in the upper Teifi and Tywi valleys for forestry and carbon offsetting and are doing so in a manner that internalises financial gain and externalises the social, economic and cultural costs.

Those costs increasingly pose an existential challenge to Welsh farmers and rural communities and are inimical to efficient land use and a just transition. To echo the National Farmers Union, we urgently need to ensure a system that makes carbon offsetting mean the right tree in the right place. The Government, by acting as a broker and data-backed co-ordinator, can help to ensure appropriate land use for carbon offsetting, support the sufficient scale of planting and empower local farmers and rural communities to make a carbon-negative effort for themselves.

Wales’s forests are a natural economic and national asset at the very heart of our decarbonisation efforts. The lungs of our nation, our forests sequester approximately 1.84 million tonnes of carbon dioxide equivalent annually, while pollution removal by woodland was estimated to have an ecosystem value of more than £385 million back in 2015. Our forests are also essential for our environment and biodiversity. Indeed, of the 542 listed species of principal importance to the Welsh Government, 210 rely wholly or partly on woodland habitats.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Will my hon. Friend acknowledge the crucial importance of restoring Wales’s peatlands, given that their climate change mitigation potential is 3,000 tonnes of carbon a year, equivalent to 5% of Wales’s transport carbon emissions? I am sure he will also take the opportunity to welcome the peat restoration projects led by parc cenedlaethol Eryri, the Snowdonia national park.

[Ben Lake]

I thank my right hon. Friend for that intervention and, indeed, will join her in congratulating the parc cenedlaethol on that work. Peatland restoration will be an incredibly important part of our carbon mitigation and sequestration efforts. More work to ensure that local actors such as the parc cenedlaethol can fully benefit from and engage in that process is what we as politicians and policy makers should focus on in the future.

The area of land covered by trees and woodland in Wales has tripled since the early 20th century, increasing from 88,000 hectares in 1905 to more than 309,000 hectares as of March 2020. It accounts for about 14.9% of the Welsh land area. That is significantly greater in percentage terms than in England or Northern Ireland, but the coverage lags behind our Scottish cousins and is lower than both European Union and wider European averages, so we have much further to go.

The “Woodlands for Wales” strategy suggests increasing tree planting to at least 2,000 hectares per year from 2020. The Climate Change Committee, recognising the challenge of reaching net zero, has been even more ambitious, recommending an increase to woodland cover in Wales from present levels to 24%. That would mean planting 43,000 hectares of new trees by 2030 and 180,000 hectares by 2050.

Set against that backdrop, Welsh farming finds itself at a perilous juncture, buffeted on the one hand by increased trade barriers with our largest market and uncertainty over future income support, and on the other by increasing pressure on land use. Welsh land, like all land, is of course a finite resource. If climate goals are to be met in a sustainable and fair manner, solutions cannot be imposed on rural communities. Instead, solutions can and should be implemented in conjunction with rural communities, and in a way that protects them from any damaging consequences. That is especially important when it comes to Welsh forestry and carbon sequestration. If we are to achieve the desired objective of reducing carbon emissions and promoting biodiversity, rural communities must be at the heart of implementation. Welsh farmers play a vital but often overlooked role in the climate equation, with over 109,000 hectares of woodland—just over a third of the total woodland in Wales—located on Welsh farms. To fulfil the stated tree-planting objectives, therefore, we need to understand the implications for the farming and food and drinks sectors, which rely on this agricultural land—land that is also essential to the wellbeing of the rural economy.

At scale, concerns about food security are increasingly valid. We must also account for the real risk of displacing food production elsewhere, to countries that may have higher carbon footprints and lower environmental standards. The last thing that any of us would want is for an unregulated carbon offset market to bring about the perverse scenario of productive agricultural land in Wales being sold to large corporations for the purposes of carbon offsetting while we increase our food imports from across the world. Such a scenario—namely, the offshoring of our food production—would make a mockery of wider sustainability efforts. I must warn the Government that there are anecdotal examples of such a scenario beginning to take root in some parts of Wales. We must therefore act now to ensure that it does not become widespread.

The best way forward would be to increase the support for farmers and rural communities looking to enter the carbon offsetting market for themselves. I pay tribute to the fantastic work by academics based at Bangor University. In particular, I thank Professor John Healey, Dr Prysor Williams, Dr Sophie Wynne-Jones, Dr Tim Pagella and Ashley Hardaker for their outstanding research, which I commend to the Minister. If she were to review their work, she would note that substantial barriers to entry still exist for farmers and local landowners hoping to diversify into agroforestry. The UK ETS could play a transformative role, not only by better regulating the offset market but by providing the resources to encourage tree planting that is locally grounded rather than purchased by external, big business actors.

Practically, ETS revenues could be used to hasten a system of payments, as has happened in Ireland, so that farmers can afford to wait for a crop of trees to mature in order to derive an income stream. We could also look at land tenure restrictions and review contractual clauses that prohibit the planting of trees, which are especially important because over 30% of Welsh landed is tenanted.

Although such measures may seem parochial, they are fundamental to ensuring that we actually deliver a transition that is just as well as sustainable. We must work with farmers, who manage over 80% of land in Wales, to deliver a forested future that is critical to the overall success of our decarbonisation efforts. The alternative, in which big business can buy land, plant trees without any reference to local biodiversity and the optimum use of different parcels of land, all the while continuing with their polluting, business-as-usual practices, is unacceptable. Greenwashing, as the Minister will know, is an ever-present danger, but in this instance it would devastate Wales’s rural communities, culture and economy.

I hope that the Minister will address concerns that the ETS is not moving fast enough nor fundamentally reducing emissions. I also hope that she will agree that local groups and farmers should be supported to play an important part in the carbon offset market and in so doing lead the transition to net zero. We must not allow large corporations to buy farms, put rural communities out of home and land, and weaken local food production for the sake of greenwashed business as usual. More specifically, I would welcome any thoughts that the Minister might have on integrating carbon offsetting into the wider UK ETS framework to ensure that we have effective regulation of the market, the promotion of sustainable practices and the rewarding of responsible practitioners.

I hope that today’s debate, short as it is, has demonstrated the need for co-operative action across the UK to ensure that our greener future is ecologically, socially and culturally sustainable and, therefore, that the transition to it is a just one.

Budget Resolutions and Economic Situation

Liz Saville Roberts Excerpts

Tuesday 9th March 2021 Commons Chamber

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC) [V]]

Page 41 of the Conservative party’s 2019 manifesto in Wales guaranteed that Wales would

“receive at least the same level of financial support”—

from the UK—

“as it currently receives from the EU.”

That was a cast-iron, copper-bottomed manifesto promise. We also had endless levelling-up rhetoric and the UK Government singing the praises of the Union. What could possibly go wrong?

Fifteen months later, this Budget announced an array of competing, competitive and opaque Westminster-controlled funds, which undermine rather than enhance Wales’s economic strategy, and fail to honour this Government’s promises to Wales. The shared prosperity fund’s pilot, disingenuously named the community renewal fund, was allocated a mere £220 million to boost the entire UK, yet Wales alone received around £370 million a year in needs-based funding—I emphasis that it was needs-based funding—from Europe. This is not only a broken manifesto promise, but a broken promise to Wales.

Equally flawed is the levelling-up fund, which is being applied in the devolved nations in a way that is deliberately set out to undermine devolution. Both schemes entail UK-wide competition, rather than a needs-based system, which effectively and disinterestedly tackles the UK’s vast regional inequalities without fear or favour.

Welsh local authorities will now bid for funding from a smaller pot in direct competition with the entire UK. The consequences for economic planning are enormous. Instead of a Wales-wide economic development agenda, the UK Government have divided and, they hope, conquered Wales, by breaking our economy into 22 competing units. What makes that worse, of course, is that the UK Government have linked the success of these funds to representation by MPs. The Chancellor is therefore obviously not discomfited by whether Wales receives our fair share, since the Government are also cutting the number of Welsh MPs by a fifth.

It seems that this Conservative Government, not content with breaking promises and scorning need, are rigging the system to favour their own political interests, as both funds disproportionately benefit Conservative seats, including, appallingly, the Chancellor’s.

The Chancellor failed to present a coherent long-term strategy that complements Wales’s existing development agenda to improve the lives of Welsh people. Instead, he withdrew support, undermined our autonomy and prioritised his party’s interest. Wales does have a choice, though, and Plaid Cymru has a better plan—a strategic £6 billion recovery stimulus to make our economy fairer and greener. I urge the Chancellor to give us the tools to help ourselves and deliver a recovery that works for Wales.

Climate and Ecological Emergency: UK’s Response

Liz Saville Roberts Excerpts

Tuesday 9th February 2021 Commons Chamber

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC) [V]]

Diolch yn fawr, Dirprwy Lefarydd. It is an honour for me to work today in a cross-party spirit with the hon. Member for Brighton, Pavilion (Caroline Lucas). I am sure that we are all trying to raise the sense of urgency by the best means we can and use this House and this Chamber to good effect.

Climate change and ecosystem degradation are already a pressing reality in Wales, from changing weather patterns to biodiversity loss, with a 2019 report concluding that 666 species are threatened with extinction and 73 have been lost already. It is clear that to address this issue effectively and quickly, we need to mobilise unprecedented levels of innovation and investment across our economy and society.

Wales is a nation committed to transition, with the principle of sustainable development written into our constitution, but to bring about real transition, the UK also has to change. That means devolving and decentralising power, rather than centralising the decision making and resources necessary for that transition. Critically, that means increased economic and borrowing powers for the Government of Wales to finance the pivotal transition with the rapidity that our climate and environment demand.

I welcome this debate, and I hope that the UK Government will consider how best to support this transition across all four nations of the UK, particularly in the upcoming Budget. No nation in the world can manage climate change alone, but neither can centralised command and control alone bring about the change we need.

[Madam Deputy Speaker]

Before I call the Minister, I should say that there have been a number of contributions, and it needs to be noted that this has left the Minister with a very short amount of time to respond; she only has six minutes.

Energy White Paper

Liz Saville Roberts Excerpts

Monday 14th December 2020 Commons Chamber

[Alok Sharma]

My right hon. Friend raises an incredibly important point about batteries. We are putting investment into gigafactories and batteries for electric vehicles. Importantly, we will also be looking into energy storage technology, such as hydrogen batteries. The amount of storage we need will depend, ultimately, on the energy mix, but he raises a very important point, and of course developing battery storage will be vital.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Diolch yn fawr, Madam Dirprwy Lefarydd. The White Paper mentions small modular reactors. When will the Secretary of State be in a position to update the House regarding the process for locating SMRs, bearing in mind that the Welsh Government are establishing a development company, Cwmni Egino, for the former nuclear site at Trawsfynydd?

[Alok Sharma]

Obviously, SMRs in the UK are currently at the design phase, and the consortium led by Rolls-Royce is making progress. We think there is the potential for SMR technology to be operational by the early 2030s, so we are still some way away from that. I am sure that, over the coming period, I or the Minister for Business, Energy and Clean Growth will be able to come to the House and give more information about that.

Coronavirus Business Interruption Loan Scheme

Liz Saville Roberts Excerpts

Thursday 5th November 2020 Commons Chamber

[Owen Thompson]

Absolutely; I completely agree with my hon. Friend. This is about ensuring the security and the future of thousands of businesses across these islands. It is a bold move—I accept that—but we are in a crisis and bold action is exactly what is needed.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

I am wondering whether consideration might be given to certain sectors, because we know that, sector-specifically, there are areas such as tourism that have been able to make no money whatever over the summer. Could this be a medium by which that could be addressed?

[Owen Thompson]

That is an excellent suggestion. Tourism, events—a number of industries have no opportunity to make the income that they need at the moment. Looking forward, there is no immediate prospect of their being able to do so, which is where the threat of those loans becoming due for repayment really starts to come into its own.

The Government, when considering a replacement for CBILS, need to look at ways to use the remainder of the £350 billion promised to be released on direct grants, perhaps equity, and make sure that reaches those who actually need it. Many viable businesses have received nothing so far, and they are not going away either.

Today—5 November—is an important day to hold this debate. It is not just the beginning of the new lockdown in England, but it commemorates the date of a failed gunpowder plot. Let us make it our day to properly remember, and not leave a giant powder-keg sitting under the businesses across our nations. We must ensure that our businesses survive and our democracy works for the people it is supposed to serve. I urge the UK Government to act now, to prevent a debt crisis, to boost support for businesses, and to stop more jobs and livelihoods going up in smoke.

--- Later in debate ---

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

I congratulate my hon. Friend the Member for Midlothian (Owen Thompson) on securing this debate. I was extremely interested to hear some of the contribution of the hon. Member for Thirsk and Malton (Kevin Hollinrake), particularly the idea of increasing the local stake and interest of banks in communities. It would be really useful to take that forward.

Covid-19 continues to cast a dark shadow over all four nations of the UK, blighting lives and businesses. This debate is an important moment to consider the ramifications, legacy and lessons from one of the key economic measures that have been our response to the virus. Nearly 1,700 coronavirus business interruption loans have been provided to businesses in Wales, totalling approximately £374 million in much-needed support to our economy. This represents one aspect of a broader intervention by not only the UK Government but the Welsh Government and local authorities, who have directed more than £1.6 billion of public support in the form of grants and reliefs to Welsh businesses. Indeed, the resilience and effectiveness of the devolved Governments can perhaps be compared with the Westminster record, which has shown itself on occasion to be prioritising headlines over competency. Westminster has exacerbated rather than eased confusion among businesses, and I refer to the furlough scheme and the lack of transparency in Government contracts as stand-out examples.

I want to make a point about the furlough scheme. I have spoken to businesses in the community that are carrying hundreds of thousands of pounds of debt, which is relevant to what we are discussing today. Because they were unsure what was going to happen with the furlough scheme, they put in place the necessary steps to start making staff redundant, and those processes have started. So there is an effect when these decisions are made late in the day.

It is increasingly clear that covid-19 is no equaliser, either as a deadly disease or in its wider socioeconomic ramifications. This has created a potent economic legacy, in which the CBIL scheme plays a part. A concern throughout the programme has been accessibility. Unlike in later schemes, CBILS applicants had to certify that they had been adversely affected and, more importantly, were still required to present a borrowing proposal to lenders. That posed a significant challenge for many businesses in Wales, particularly in rural areas such as my constituency of Dwyfor Meirionnydd and in post-industrial communities, particularly across Wales, a country that last year topped the UK table for bank closures.

After 43% of Welsh bank branches were closed between 2015 and 2019, businesses face an uphill challenge, even before covid restrictions, simply to find a financial adviser to inform them on loan applications. The banks’ local knowledge, as well as their stake in local communities, has been eroded, even as they reach out with their digital capacities. Banks had that local interest and local stake in our communities, and we should be looking at the way in which they now operate in the United Kingdom. We have welcomed the improvements in the later schemes, but the Government need to go further and work with lenders to continue to improve accessibility to all covid-19 support schemes for households and businesses in rural and poor communities.

Westminster presumes that the UK is a healthy, mixed economy, but the reality is that in many areas, single industries dominate the local economy. This is particularly true in north and west Wales, where the strongly seasonal tourism, hospitality and leisure sectors dominate. This is the reality of where we are now, and I am not criticising it. I accept it, but if we want to make a difference to those communities in future, we have to realise the implications of covid and how the support measures will work their way through. We had a harsh winter last winter, and we are going into winter now. In the meantime, many businesses in the sector had no choice but to pursue UK and Welsh Government support schemes. They banked on a strong summer season’s earnings that never materialised sufficiently for them to pay off their debts. That was their usual business model. They are usually viable businesses, but this summer they did not have time to make that up. These businesses, and now the whole communities in which they operate, face a bleak future.

It is therefore vital that CBILS should be part of our effort to rebuild, rather than being employed as a stopgap in the immediate crisis. That is why I urge the UK Government to work with lenders and the Welsh Government to lighten the mounting debt burden facing UK businesses. This should include measures such as debt relief for viable Welsh businesses, particularly in badly affected industries such as hospitality. The effect of such an action would be immediate and direct. It would immediately improve businesses’ balance sheets and outlook, give certainty on employment and free up capital that could be set aside to ultimately fund our economic recovery. Although bold, such an intervention on the back of historically low interest rates for Government borrowing would recognise that debt is an economic and political problem, not a health one.

Time is ticking. TheCityUK’s recapitalisation report estimates that, without action now, UK businesses will have £100 billion-worth of toxic debt by March next year, leading to further unemployment and ending in permanent economic scarring in areas that can least afford it. We have a golden opportunity to turn this debt crisis into a vote of confidence in our economy, freeing businesses of an avoidable debt crisis to reinvest in their livelihoods and workers. I urge the Chancellor to seize this opportunity.

[Madam Deputy Speaker (Dame Rosie Winterton)]

As all our speakers are now here, I remind Members that I would like to start the winding-up speeches at about 3.25 pm, and speeches of between six and seven minutes should make that possible. I call Virginia Crosbie.