Summer Adjournment

Martin Vickers Excerpts

Tuesday 19th July 2011 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

Let me first pay tribute to the hon. Member for Inverclyde (Mr McKenzie) and commend him on his maiden speech. It was good to hear from a Member who, like me, was born in the constituency that he represents. Given his description of his constituency’s stunning natural beauty, it clearly has similarities with Cleethorpes.

I will be as brief as possible, Mr Deputy Speaker. The economy of northern Lincolnshire could be described as “stuttering” at the moment. It has taken many knocks, but it has the potential of a new dawn from the renewables sector. Despite its name, Cleethorpes is a highly industrialised constituency, containing Immingham docks and much of the Humber bank. Associated British Ports operates the Grimsby-Immingham docks complex, which is the largest in the country. However, expansion and regeneration are being held back by transport infrastructure that is in urgent need of improvement.

The northernmost town in my constituency is Barton-upon-Humber, which is just 20 minutes’ drive from the centre of Hull, but Humber bridge tolls are a tax on jobs. The free movement of labour is restricted. It is totally unrealistic to expect someone in Barton to accept a job in Hull paying the minimum wage, and even more unrealistic to expect people to take part-time work.

The hopes of all local people are resting on the current Treasury-led review, which is due to report in November. The business community and local people are encouraged by the work of the review team, and by Ministers’ determination to deliver a sustainable solution that may well be based on a social enterprise model. It is essential to have lower tolls in the relatively near future; we do not want promises that may never materialise.

In the East Halton and Killingholme area of my constituency sits the site of the proposed south Humber gateway development—in which Able UK Ltd has invested £100 million—alongside the largest undeveloped deep-water channel in the UK. It is thought that £1.5 billion of private sector development may follow, much of it in the renewable sector. That would offer an opportunity to develop a cluster for the sector, involving the construction of wind turbines. The ports of Immingham and Grimsby are ideally located for the service and supply of offshore wind farms—and offshore is where we want them to be, rather than in the countryside.

A major problem with the gateway development is the bottleneck in the planning process. It has been caused by a number of Government agencies, notably Natural England. Such agencies, including the Environment Agency, must appreciate that planning issues are commercial issues, and that they must move at the same speed as the demands of investors and developers. The current leisurely pace is not acceptable.

Northern Lincolnshire has taken a bit of a body blow in recent times, with the announcement of 1,200 job losses. Many of those jobs were done by my constituents at the Tata Steel works in Scunthorpe. It is encouraging that the Secretary of State for Business, Innovation and Skills will be visiting the steelworks tomorrow. It is also encouraging that the Prime Minister has taken an interest, and we eagerly await a meeting with him. I hope, however, that Ministers will be able to give us some confidence that not only the Secretary of State and the Prime Minister, but the Government as a whole, will support the local infrastructure. The highways, particularly the A160 route to Immingham, urgently need an upgrade, and it is desperately important for that to be included in the first phase of the next building programme. I hope that the Minister will be able to assure me that he will press our case with transport Ministers at the earliest opportunity.

The area is building itself up for the renewables sector. There are great training prospects at the Grimsby institute, Lincoln university and other institutions—

[Mr Deputy Speaker]

Order. The hon. Gentleman's time is up.

Finance (No. 3) Bill

Martin Vickers Excerpts

Tuesday 5th July 2011 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

I am pleased to follow my neighbour, the hon. Member for Brigg and Goole (Andrew Percy), and I support many of his comments.

For the Government to unite the representatives of manufacturing industries with Greenpeace, Friends of the Earth and the World Wildlife Fund in opposition to their proposals is a masterstroke. I do not accept the ingenious argument that the Economic Secretary to the Treasury gave in Committee, which was that such a range of opposition to the tax was proof positive that the right balance had been achieved. That is patently not the case: as we have already heard, the arguments of the high-energy manufacturers and the environmentalists are complementary, not contradictory. The key challenge that we face as a nation is how to balance greening the economy with growing the economy. The Government’s proposals fail to meet that challenge. The UK is competing internationally for investment. The Humber is competing with Bremerhaven and Esbjerg for green investment. As we have already heard, those making investment decisions too often sit outside these shores. In the real world, the carbon floor price represents a serious threat to our competitiveness. We are in danger of seeing multinational companies choose to invest not in the UK but elsewhere.

[Martin Vickers (Cleethorpes) (Con)]

The hon. Gentleman is making a persuasive case. He and I know the seriousness of the situation from our regular visits to Tata Steel in Scunthorpe, and he will be familiar with the Able UK site in my constituency. One of the arguments for the company coming to our area was the proximity of the steel works, which, ironically, Able UK wants to use for production in the renewables sector. I am sure the hon. Gentleman agrees that it would be tragic if that steel were produced elsewhere, thereby creating greater emissions.

[Nic Dakin]

The hon. Gentleman makes a cogent and sensible point. [Interruption.] Indeed, I note that the Economic Secretary is writing it down, so I hope that she will respond to it later.

We are in danger of exporting UK jobs to places such Ukraine and Russia, thereby boosting global warming rather than reducing it. As we have heard, my community in Scunthorpe faces serious challenges after Tata announced that 1,200 jobs were at risk. We have also heard the chief executive of Tata Steel, Karl-Ulrich Köhler, quoting the carbon floor price as part of the context of the decision. However, other, local companies are equally concerned. Richard Morley of Caparo Merchant Bar in Scunthorpe said to me:

“As well as supporting growth and jobs, companies like mine are well-placed to provide many of the technical and material solutions necessary to address climate change”—

the point that the hon. Member for Cleethorpes (Martin Vickers) made a moment ago—

“but we can only do so if we are able to remain competitive. The unilateral introduction of the”

carbon floor price

“at too high a level could threaten this.”

Richard Stansfield of Singleton-Birch has examined in more detail what the carbon floor price means:

“The CFP does not actually set a…price of £16 in 2013 as has been implied. The figure of £16 has been arrived at by using a 2009…carbon price of £11.06 and adding a £4.94 tax, called the carbon price support, to reach the £16. The current forward price of carbon in 2013 is already around £16, so adding this £4.94 will make the price of carbon £20.94. This will be £4.94 more than our European competition will be paying and £20.94 more than the rest of the world.”

Only last month we heard the new director general of the CBI, John Cridland, expressing concerns about the impact of the carbon floor price on high-energy manufacturing.

In a written answer to a parliamentary question, the Economic Secretary confirmed that the carbon price support provisions would put up consumer energy bills and deliver windfall profits of £50 million a year from 2013 to existing nuclear reactor operators. Greenpeace has calculated that the figure exceeds £1.3 billion up to 2020. The Government’s proposal is therefore a bad deal for bill payers. Almost £1 billion will be given to the nuclear industry for doing absolutely nothing new. The proposal will add nothing to energy output or Britain’s energy security, and there will be no requirement for the companies to invest the windfall in national priorities such as energy efficiency programmes or meeting our renewable energy targets.

I am afraid, therefore, that in its present form the carbon floor price is a badly designed tax. It will not drive the significant investment needed to develop clean, safe alternatives to fossil fuels or the technological improvements needed in energy-intensive industries. As research by Waters Wye Associates concluded:

“The outcome of implementing policies as they are currently conceived will…be poor both economically and environmentally. Global greenhouse gas emissions may well increase as well as hitting both investment and jobs.”

The current approach risks penalising British industry and endangering British jobs. It will hurt the consumer and fail to deliver our green ambitions. I urge the Government to think again.