Oral Answers to Questions

Debate between Martin Vickers and Andrea Leadsom

Thursday 2nd March 2017 Commons Chamber

[Andrea Leadsom]

I disagree with the right hon. Gentleman. Our fishing communities around the UK provide a vital vibrancy to local communities and the rural economy, so I do not agree with the suggestion that processing is somehow far more important. We will seek the freest possible access to European markets, but when I was in China last year I signed a memorandum of understanding with the Chinese worth £50 million, which included UK seafood. It will be very important for us to be able to find new export markets.

[Martin Vickers (Cleethorpes) (Con)]

Last Friday, I spoke at a seafood processing and fishing industry seminar in the Grimsby-Cleethorpes area. The industry recognises the opportunities of Brexit, but understandably it has some concerns. I welcome the Secretary of State’s reassurances to date, but can she give an absolute reassurance to the seafood processing sector that it will form a key part of the negotiations?

[Andrea Leadsom]

I had a very happy fish and chip lunch in Cleethorpes with my hon. Friend and I look forward to further such opportunities. He is right to point out that seafood processing is an absolutely vital part of our fishing sector. We are very much taking it into account in our negotiations on leaving the EU and in looking at opportunities around the world.

Oral Answers to Questions

Debate between Martin Vickers and Andrea Leadsom

Thursday 13th October 2016 Commons Chamber

[Andrea Leadsom]

We are very proud that the UK has some of the highest animal welfare standards in the world, the best food traceability and the best food safety. The hon. Lady is exactly right to point out the importance of labelling. We are doing everything we can. There is a lot of mandatory labelling, as she will be aware, but we also do a lot of work with businesses that want to label voluntarily, particularly for our iconic food products. I did a bit of research and found north-east Craster kippers, Wylam golden ale and other iconic names. I encourage her to apply for protected name status wherever possible, and we intend to support that.

[Martin Vickers (Cleethorpes) (Con)]

This week is Seafood Week. Will my right hon. Friend outline what her Department has done to promote Seafood Week? I urge her to return to Cleethorpes so that we can have a less rushed plate of fish and chips than we had on her last visit.

[Andrea Leadsom]

I am always delighted to visit my hon. Friend’s constituency, because he always has something exciting in store for me. During Seafood Week we have established a working group with different seafood organisations. We are absolutely committed to promoting it, as we are with all our great British food. As I have mentioned, I am off to the Paris food exhibition and the China food exhibition to see what more we can do for our great British seafood and other food.

Oral Answers to Questions

Debate between Martin Vickers and Andrea Leadsom

Thursday 12th May 2016 Commons Chamber

[Andrea Leadsom]

It is not the Government who decide whether a delivery milestone is met; it is the Low Carbon Contracts Company that manages those contracts for difference. That cancellation was the result of the milestone delivery date not being met, and there are ongoing discussions about that. I recognise that the termination of a CFD is disappointing for all partners, but I can reassure the hon. Gentleman that there is quite a big project pipeline for Scottish offshore wind and I expect to see other projects coming forward at the next auction.

[Martin Vickers (Cleethorpes) (Con)]

rose—

Oral Answers to Questions

Debate between Martin Vickers and Andrea Leadsom

Thursday 24th March 2016 Commons Chamber

[Andrea Leadsom]

I am sorry that the hon. Gentleman takes that approach. He will be aware that domestic coalmining has been in decline for the past 60 years, that imports are a great deal cheaper, and that it is for private companies to decide to choose the cheapest options. The Government have done all we can to reduce the impacts of the most recent closures, by injecting up to £20 million to help the directors of Hatfield to manage the closure of the business and £17 million to help UK Coal deliver its two-year closure plan for Kellingley and Thoresby, and by agreeing to meet UK Coal’s concessionary fuel allowances.

[Martin Vickers (Cleethorpes) (Con)]

I thank the Minister of State for the recent meeting she held with me in connection with the Able development in my constituency, which has the potential for 4,000 new jobs. Is there any news of the implementation of the memorandum of understanding with DONG Energy?

[Andrea Leadsom]

I am grateful to my hon. Friend for continually holding my feet to the fire on this matter. I have had a number of individual meetings with developers to press for UK content as far as possible in the offshore wind sector, and I am getting some very good responses. In particular, he will be aware that there is to be a strategy review of the east of England, which will include the potential for the development at Able. I am very positive about the prospects.

Oral Answers to Questions

Debate between Martin Vickers and Andrea Leadsom

Thursday 11th February 2016 Commons Chamber

[Andrea Leadsom]

We absolutely appreciate that industry, across all technologies, needs clarity on Government policies in future allocation rounds so that it can manage its investment decisions, and we aim to support that. We are currently working with Her Majesty’s Treasury to finalise the budget for future auctions, and we will set out more information as soon as we can.

[Martin Vickers (Cleethorpes) (Con)]

I thank the Minister for her robust and informative response to my Adjournment debate about the Humber estuary on Tuesday evening. May I draw her attention to a statement issued to the local media by DONG Energy? The statement is wet, woolly and non-committal. Will she reaffirm her determination to be involved in the future developments in northern Lincolnshire?

[Andrea Leadsom]

I pay tribute to my hon. Friend for his excellent support for his area. I was delighted to respond to him in the Adjournment debate, and I can absolutely assure him that there will be no wriggle room; in order for the UK to benefit properly from our decision to support new offshore wind, we will require UK content and the UK supply chain be a key beneficiary of it.

Humber Energy Estuary

Debate between Martin Vickers and Andrea Leadsom

Tuesday 9th February 2016 Commons Chamber

[Andrea Leadsom]

Absolutely. I am very happy to do that. As I said when we last spoke about this, I will be delighted to meet the hon. Lady.

Like my hon. Friend the Member for Cleethorpes, I want to see the Humber estuary achieve much more. I want developers to do more to share the economic benefits to be gained from building and operating offshore wind farms, and to share the gains of our new offshore wind policy. As he rightly said, it is payback time. I have instructed my officials to set up bilateral discussions with key offshore wind developers, such as DONG, SSE and Scottish Power. As I will make clear to them, the current round of projects provides a clear opportunity to stimulate further UK supply chain activities that will enable us to reap the rewards of our offshore wind leadership, both in terms of securing more jobs in the current projects and industrialising the supply chain. I want the UK to be exporting our technology and skills to projects in Europe and elsewhere. This is my ambition, and I want the Humber estuary to be at the forefront of that ambition.

[Martin Vickers]

What the Minister has just outlined is clearly good news. She has made rapid progress since our last discussions and I compliment her on that. Can she give a timeframe for that? It is critical that we move forward now. We have already lost quite a few months.

[Andrea Leadsom]

Yes, absolutely. I can tell my hon. Friend that it is a very top priority for me to have those meetings. We will be reconvening the offshore wind industry council in the near future and I want to have met each of the key developers before that meeting takes place.

On the Able marine energy park, I agree with my hon. Friend that the proposed facility is a significant opportunity to build on the successes in offshore wind and renewable energy more generally. It would be a fantastic addition to the UK offer. When it is completed, for example, it is well located to be a construction and staging facility, and could open up further port infrastructure facilities for the industry, as well as additional land for quayside supply chain investments. I encourage Able to continue to make the case for the facility, which has the potential to attract a range of developers.

As my hon. Friend pointed out, Able issued a press release on 9 July 2015 announcing the signing of a memorandum of understanding with DONG Energy, which committed to early stage talks on the project. Expectations are high that the facility would provide much-needed jobs. The recent announcement by DONG about Hornsea reaching a financial close last week is timely. I understand the importance of this project to my hon. Friend and to the UK. I therefore wrote and spoke to DONG seeking an update.

I am pleased to tell my hon. Friend the Member for Cleethorpes that DONG has replied saying that it continues to see AMEP as an as an important facility in the development of the offshore wind sector in the UK. DONG proposes to establish and lead a strategic joint industry and Government review to identify opportunities to develop the east coast as a UK construction and staging facility for the UK and European offshore wind industry. DONG would expect the AMEP facility to be a key consideration in this exercise, and I am pleased that DONG has appointed Benj Sykes, who co-chairs the Offshore Wind Industry Council with me, to lead that work. I shall shortly write to other developers regarding their participation in this review.

I am also pleased to say that DONG has told me that discussions on a UK tower manufacturer continue to progress well. To secure the first UK tower facility would be a major achievement, on which developers and the supply chain can continue to build. Let us be clear: the ability of the UK offshore industry to contribute to jobs and growth is a key part of what makes it an attractive industry. It is not the only one: climate change is one of the biggest challenges that we face, and it needs big technologies if we are to achieve our decarbonisation goals. Offshore wind offers one of those solutions.

[Martin Vickers]

Will the Minister confirm that she or her officials will have an input in those discussions, and not leave it entirely to the industry?

[Andrea Leadsom]

I can assure my hon. Friend that this interests me a great deal, and I shall certainly be involved.

When the Secretary of State set out the Government’s new direction for UK energy policy last November, she highlighted the challenge we face in making sure that energy remains the backbone of our economy while we transform to a low carbon system that is secure, affordable and clean. We want a consumer-led, competition-focused energy system that has energy security at its heart and delivers for families and businesses.

Britain is already the world leader in offshore wind, with over 5GW operational, which could double by the end of the decade, with the UK on track to reach around 10GW by 2020. That supports a growing installation, development and blade-manufacturing industry that employs about 14,000 people, but there is clearly potential for many excellent new careers. The Secretary of State has provided what the offshore wind industry has been asking for: clarity. She announced last November that the Government would hold three further contract for difference auctions in this Parliament, with the first due to take place by the end of 2016. If costs come down sufficiently, the UK could support up to another 10GW of new offshore wind in the 2020s, which is a doubling of capacity.

The offshore wind industry must do its part in return for being provided with such long-term clarity. The technology needs to move quickly to cost-competitiveness. There will be no blank cheques. A priority is the UK supply chain playing a full part in enabling the offshore wind industry to drive towards cost-competitiveness. The industry exemplifies what the Government are trying to achieve: creating jobs and apprenticeships, and working towards full employment while delivering our decarbonisation targets—but not at any price.

The Government have set their new energy policy direction. Offshore wind developers fully understand the importance of UK companies securing economic benefit from our programme of development, and they agree that it is not unreasonable to want to see UK companies competing for this work, as they can then use the home market as the perfect launch pad to export their capability and expertise.

In conclusion, the Government are fully committed to the continued growth of UK offshore wind and its supply chain, and to building on the success that the region is already seeing. I congratulate my hon. Friend the Member for Cleethorpes once again on raising this important issue.

Question put and agreed to.

Oral Answers to Questions

Debate between Martin Vickers and Andrea Leadsom

Thursday 17th September 2015 Commons Chamber

[Andrea Leadsom]

I am afraid the hon. Lady has not done her homework. She should be aware that it is a requirement of EU state aid that we regularly review the subsidies to ensure that we are not overcompensating the sector. That is exactly what we are doing. We are now in a consultation which closes on 23 October. I am sure she will give her response to that. As I keep repeating, we want to ensure that we are not impacting negatively on consumer bills, but at the same time we are supporting this very valuable and growing sector to become subsidy-free within the next few years.

[Martin Vickers (Cleethorpes) (Con)]

I welcome the Minister’s earlier replies, but she will know that there is a lack of confidence and certainty in the offshore industry, which is vital to the future economy of my constituency. Can she assure me that when she visits north-east Lincolnshire later this month, she will have a positive message for the industry representatives?

[Andrea Leadsom]

I can assure my hon. Friend that I will always have a positive message. I am very much looking forward to my trip to Humber and Lincolnshire. While I am there I will seek to reassure investors and project managers that it is our intention to continue to support and promote the very important renewables technologies in which, particularly in offshore, Britain is world No. 1.