Energy Generation

Mark Reckless Excerpts

Wednesday 17th April 2013 Westminster Hall

[Nia Griffith]

No, the hon. Gentleman has had many chances to talk; I will give way only to someone who has not yet had a turn.

Tacitly encouraging more reliance on imported gas looks even more bizarre when we have huge potential here for renewables, particularly—

[Mark Reckless (Rochester and Strood) (Con)]

Will the hon. Lady give way?

[Nia Griffith]

Indeed, I will.

[Mark Reckless]

Gas prices are linked to oil, but we have seen in the United States that the success of shale gas has detached gas prices from oil, and gas prices are now much lower. In addition, that has helped the US to reduce its carbon emissions.

[Nia Griffith]

Mr Gray, I will not digress to discuss that matter, as we want to keep—fairly strictly—to the matter of decarbonisation targets, and it is absolutely vital that we get those targets now. That is because the Government’s position is that no targets will be set until 2016 at the earliest, with no guarantee then as to what those targets might be. Targets are absolutely vital for industry, because we need absolute certainty to encourage investment in low or indeed zero-carbon technologies. We want to get ahead, rather than seeing big investment in green energy components go elsewhere.

I am secretary of the all-party group on steel and metal related industry, and we see huge opportunities for the steel industry in the production of turbines for offshore wind farms and of marine current turbines. Without targets, however, we will lose those opportunities to other countries. The steel industry in this country is facing a real crisis in demand, and certainty about decarbonisation targets now would bolster investment in renewable technologies and help that manufacturing to stay in the UK.

Research by the Institute for Public Policy Research puts paid to the myth that decarbonisation will increase fuel bills. Leaving aside all the disgraceful ways in which the big energy companies exploit the consumer as a result of weak regulation, excessive profits and now, we understand, dubious taxation practices, simply looking at the price of decarbonisation, the conclusions are that increased reliance on electricity generated from gas will cost the consumer more, and that is on conservative estimates of price rises without unpredictable events. Certainty on decarbonisation targets now would be good for the future of the planet, good for manufacturing and good for the consumer.

--- Later in debate ---

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Gray. I congratulate the hon. Member for St Ives (Andrew George) on securing the debate. As is his habit, he gave a comprehensive account of the issues, many of which other hon. Members were seeking to add to the debate. He rightly made the point about the time pressure in respect of the Energy Bill. Members of the Bill Committee know that we need to return to a range of issues and it is important that we have adequate time on Report if we are ever to get to them. Even in this debate, a number of hon. Members have been unable to speak or have had to truncate their remarks on a fundamentally important issue.

It is always a pleasure to stand opposite the Minister, although I am slightly disappointed that the other, new, part-time Energy Minister—the third Energy Minister in six months—is not here, because his other part-time responsibility is in the Department for Business, Innovation and Skills, and publications coming out of that Department have highlighted the important role that decarbonisation and the green, low-carbon economy needs to play in having a target and a direction for the future.

[Mark Reckless]

Will the hon. Gentleman give way?

[Tom Greatrex]

I am tempted not to, because the hon. Gentleman came into the debate late, but I will. I am more generous than I should be.

[Mark Reckless]

Some are concerned about the extent to which decarbonisation and the green agenda are pushing up electricity prices. The shadow Minister says that he is keen to have sufficient time to discuss all the issues on Report, so would he support having two days on Report?

[Tom Greatrex]

I am glad that I gave way, because the hon. Gentleman is right on that point. Significant time needs to be given to these matters, because a range of issues must be discussed, and this is just one. He has talked previously about other issues covered in aspects of the Energy Bill—not directly on this point—and I am sure that he would want to contribute. I hope that the Minister and the usual channels have heard his concern.

I have mentioned the other responsibilities of the new Energy Minister. The hon. Member for St Ives rightly focused on the business case, and the jobs and growth case, for the decarbonisation target, but there are other strong arguments. My hon. Friends the Members for Brent North (Barry Gardiner) and for Southampton, Test (Dr Whitehead) made the climate arguments. There are also important security-of-supply arguments about why this is sensible.

The hon. Member for St Austell and Newquay (Stephen Gilbert), the close geographical colleague of the hon. Member for St Ives, is sitting slightly apart from the rest of the Liberal Democrat Members today, and he is the only Liberal Democrat in the Chamber who had the opportunity to ensure that this target was in the Bill. We debated the matter in the Energy Bill Committee and he and another colleague chose not to vote for his party’s policy. I hope that the number of Liberal Democrats who are here this afternoon is indicative of the fact that those who are not encumbered by ministerial or Parliamentary Private Secretary posts will support that policy when the opportunity to support the cross-party amendment comes in due course, although their party’s policy was not in the manifesto, but was agreed at their party conference in October, when the Bill was under way and under discussion in pre-legislative scrutiny.