Student Loan Book: Sale

Martyn Day Excerpts

Thursday 11th October 2018 Commons Chamber

[Mr Gyimah]

My hon. Friend will be aware that money raised from student loan sales goes to the Treasury, which makes a decision about in which public services to invest that money. This ultimately means that the taxpayer gets some of the reward now, rather than having to wait for 25 years. We are working with professionals on the range of estimates and I am happy to share it with my hon. Friend when we have the answer.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

This policy highlights the limitations of how this Government assess value for money and measure the cost of student loans over time. It prompts the question which Department has it right: the Department for Education or HM Treasury. This is clearly another example of the UK Government selling off assets for short-term capital gain. Will the Minister confirm how much of the student loan book he intends to sell off? What assurances can the UK Government give that the selling off of the remaining tranches of the student loan book will achieve long-term benefit for the taxpayers? And why are the UK Government devaluing assets and selling them off for less than they are actually worth?

[Mr Gyimah]

The sale remains subject to market conditions and a value-for-money assessment, but I will not be taking lessons from the Scottish National party on student finance. The SNP has created a system that actively works against the disadvantaged in Scotland. We have a system that is funding our universities well and helping the disadvantaged.

Oil and Gas Industry

Martyn Day Excerpts

Tuesday 9th October 2018 Westminster Hall

[John Mc Nally (Falkirk) (SNP)]

I beg to move,

That this House has considered the future of the oil and gas industry.

It is a pleasure to serve under your chairmanship, Mr Hollobone.

I start my contribution today by taking a moment to remember the 167 workers who lost their lives 30 years ago in the Piper Alpha disaster, off the coast of Aberdeen, on 6 July 1988. Piper Alpha is the world’s deadliest ever oil rig accident. This anniversary is and should be a reminder to us all that we must remain vigilant and do all we can to help the oil and gas sector in seeking to eliminate major hazards and risks.

I will focus my remarks on the success of the North sea oil and gas industry, and on how the sector is working alongside its partners downstream and in its supply chain to secure a lower-carbon future. I will also outline two choices that the UK Government must make. The first is to protect existing labour and supply chains through the single market and customs union membership, or risk sacrificing world-leading firms and skilled, productive jobs.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

I am grateful to my hon. Friend for securing this important debate and for taking an intervention so early. Grangemouth, which is in my constituency, is home to Scotland’s only crude oil refinery, as well as the terminus of the North sea Forties pipeline system. It hosts a number of petrochemical plants and leading players in the chemicals industry, and it accounts for more than a third of the chemical sector’s gross value added in Scotland. In total, 60% of the UK’s chemical exports and 75% of imports are to and from the EU. How important is it to have frictionless, tariff-free trade, and to ensure that multinational companies can move their staff between different countries to support local jobs and growth across districts?

[John Mc Nally]

My hon. Friend makes an excellent point; it is absolutely essential that we remain in the customs union. Of course, I will come on to the importance of frictionless trade and the supply of labour later in my speech; indeed, I hope that everybody will speak about that.

The second choice that the UK Government must make is to recognise the £350 billion contribution to the Treasury that the sector has made over the past 50 years and provide the political certainty and financial support it needs now, or risk undermining North sea oil and gas by once again using it as a cash cow, this time to pay for Brexit Britain.

With sales up by 18.2% between 2016-17 and 2017-18 and the North sea holding up to 20 billion barrels of oil, the sector is in very strong health. Recent industry announcements, such as BP’s successful discoveries in the Capercaillie and Achmelvich wells, Nexen’s phase II development of the Buzzard field, and the Norwegian oil and gas giant Equinor’s deal to buy Rosebank’s share of the oil reserves to the west of Shetland, demonstrate the enormous investment potential that the United Kingdom continental shelf still holds.

The sector supports 283,000 jobs across the UK. In the town of Grangemouth, which is in my neighbouring constituency of Linlithgow and East Falkirk, INEOS alone employs 1,300 people, including seven new apprentices, who started training in 2017. Those figures somewhat contradict the predictions we hear about the sector’s constant decline. Healthy investment is continuing.

[Martyn Day]

I am grateful to my hon. Friend for giving way again and for mentioning the great work that goes on in my constituency. INEOS, which now owns the Forties pipeline system, estimates that the economic life of the asset will be extended to 2040, which is 10 years longer than BP’s original projection. INEOS has already invested £500 million in the Grangemouth site in the last five years, and it is now investing in infrastructure projects at Grangemouth that will have a further positive impact on the longevity and reliability of the Forties pipeline. The firm has already committed to the UK’s North sea sector with investment in the northern gasfields west of Shetland, which contain the Lyon prospect. However, I wonder how much potential investment by the wider sector has been delayed until the uncertainty of Brexit has passed. Will he join me in calling on the UK Government to do more to stimulate exploration and investment?

[John Mc Nally]

I thank my hon. Friend for that intervention; again, he makes a very good point indeed. He is right to raise the concerns about investment, and I join him in calling for the UK Government to support and encourage investment in this vital asset that we have on our shores. I give him my full support in that regard.

Healthy investment is continuing, even though in some cases the level may not be as good as it should be, and new discoveries are being made and developed. In 2017-18, revenues from Scottish North sea oil and gas increased to £1.3 billion. Surely it is now time that the UK Government acted to support the sector’s future.

The sector recognises the need to decarbonise our economy and its responsibilities in supporting that transition. It is an international leader in supporting the low-carbon transition. Average emissions per unit of production on the United Kingdom continental shelf—its carbon intensity—have fallen year on year since 2013, with total emissions in decline from their peak in 2000. Firms are increasingly diversifying and using their existing skills to grasp opportunities emerging from the green economy, thereby providing sustainable employment. Often, infrastructure owners and operators in the oil and gas sector are already part of wider portfolios across a range of conventional and renewable energy sources. Contractors and supply chain companies with expertise in offshore operations and maintenance are also providing solutions across a range of energy industries, to diversify and replenish their order books.

As we all know, innovation is absolutely key to that process. Building the sector of tomorrow presents exciting and challenging opportunities for our people. The Offshore Petroleum Industry Training Organisation’s workforce dynamics report has predicted that by 2025 there could be as many as 10,000 roles that require completely new skills. It is reassuring to note that the industry continues to attract young people to build its future. There were 105 new entrants to the oil and gas technical apprentice programme in September alone. Once again, I have seen that forward-looking agenda at first hand in my neighbouring constituency of Linlithgow and East Falkirk.

As I mentioned, the town of Grangemouth is home to Scotland’s only crude oil refinery. It is a truly remarkable site. For example, the refinery was the first to introduce ultra low sulphur diesel and ultra low sulphur petrol to the UK market. Grangemouth already makes up approximately 8% of Scotland’s manufacturing base. Many of my constituents are employed at the site or in its supply chain. Grangemouth’s success shows the impact that downstream operations and manufacturing can have on the economy, locally and globally.

[Martyn Day]

I am grateful to my hon. Friend for his indulgence in giving way to me so many times.

Grangemouth has one of the country’s largest concentrations of energy-intensive industries in down- stream petrochemicals operations, and its development of a strategically located carbon capture and storage infrastructure in its industrial cluster may be essential to ensuring that those industries can compete in the low-carbon world that is coming in the future. I know that the Grangemouth site, INEOS and others are working with Imperial College as part of a wider collaboration to evaluate the feasibility of CCS for the UK. Does my hon. Friend agree that this developing technology would have been given a huge boost if the UK Government had not cancelled its CCS competition back in 2015, and that that decision demonstrated how they are failing the long-term interests of the industry?

[John Mc Nally]

Once again, my hon. Friend makes a good point about the need for long-term certainty of investment and policy. The CCS decision was an example of a shambolic state of affairs, given that many hundreds of millions of pounds had been invested for the future. That future was basically taken away from under investors’ feet, so I absolutely agree with him.

The export-orientated supply chain generates about £30 billion annually across the UK, and its exported services deliver £12 billion, and the future blueprint for the sector, “Vision 2035”, grasps the importance of that. Alongside adding a generation of productive life to the basin, the blueprint has the objective of doubling the long-term opportunities for the supply chain. If we work together to maximise production from the UK continental shelf and to help the supply chain grow its share of the global energy market, we can boost that prize by half again and generate £920 billion of revenue for the UK economy through to 2035. That is a real game changer for us all. By doubling its share of the global market and embracing the opportunities available through diversification into other markets, the sector can achieve an additional £150 billion of revenue above the baseline estimate of £350 billion.

However, Grangemouth, its workforce and the wider sector are being put at risk by Brexit. The latest Oil & Gas UK report makes it clear that Brexit will have a significant impact on the oil and gas sector, warning about the impact on frictionless access to goods and services, and that the UK Government’s Brexit plans could cause a “skills shortage” for vital North sea services such as emergency response and rescue vehicles.

The Scottish National party is clear that the best way to achieve the goals I have mentioned is to protect Scotland’s place in the single market and the customs union. The Scottish Government have delivered an exceptional range of support for the oil and gas sector and its workforce, including an investment of £2.4 billion in enterprise and skills through our enterprise agencies and skills bodies, £90 million over the next decade to support the Oil & Gas Technology Centre as part of the Aberdeen city region deal, and a £12 million transition training fund to support individuals and help the sector to retain talent.

The other major risk that is looming also comes from Westminster, and that is the Budget on 29 October. With the Treasury having taken about £350 billion from the oil and gas sector in the past 50 years, this is an opportunity for the UK Government to repay their debts and show their support for the sector. The Chancellor must ensure in his autumn Budget that the UKCS is globally attractive for investment, with a competitive and predictable fiscal regime. The UK Government must not repeat the mistakes of previous Administrations and undermine the sector by using it as the Treasury’s cash cow. Instead, they must protect tax incentives designed to support the sector, introduce measures to improve exploration and attract fresh investment, complete the work on transferable tax history, urgently ensure that the tax treatment of late-life assets is addressed so that those assets are in the right hands, and support the urgently required alternative solution to end-use relief.

The SNP also demands that the UK Government use the autumn Budget to implement an oil and gas sector deal, instead of dragging their feet, as is currently the case in Ayrshire, Tayside and Inverness. A sector deal should support practical steps to protect, progress and promote operators, the supply chain and the offshore and onshore workforce. A sector deal for the industry must include visionary national hubs for underwater innovation, transformational technology and decommissioning, based in Aberdeen but serving the whole industry.

In conclusion, North sea oil and gas is booming and the sector is working hard alongside its downstream and supply chain partners to secure a bright, lower-carbon future. The sector has a clear route map in “Vision 2035” and is ably supported by the Scottish Government, who are using their limited powers to the full. The UK Government must now make two choices: to protect the supply chains and the labour supply through single market and customs union membership, and to provide the long-term political certainty and financial support that the sector needs.

Oral Answers to Questions

Martyn Day Excerpts

Tuesday 17th July 2018 Commons Chamber

[Claire Perry]

I share entirely the hon. Gentleman’s desire for us to get on with it. In fact, I have met many representatives of the sectors. We just have to get the scheme right. We must not create something that causes a bonanza for people who are gaming the system or that puts up bills for consumers. We are very aware of the need to provide certainty for investors, and I look forward to doing so soon.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

17. Solar power has been shut out of clean power options for three years, and onshore wind vilified. Will the Minister heed the National Infrastructure Commission’s recommendations to forgo new nuclear investment in favour of bringing back clean power options for cheap and established renewables?

[Claire Perry]

I can only refer to the comments of my right hon. Friend the Secretary of State. We want to provide a balanced, secure energy supply that keeps bills down for consumers. That is why we will be investing in nuclear. We have invested in many forms of renewable energy. In fact, we are now leading many parts of the world in that investment, and we will continue to do so.

Nuclear Sector Deal

Martyn Day Excerpts

Thursday 28th June 2018 Commons Chamber

[Mr Gyimah]

My hon. Friend is right: nuclear is a key part of the energy mix and we are looking for low-cost, reliable and stable sources of energy. That is why our industrial strategy is focusing today on a nuclear energy deal to deliver precisely that.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

With Mark Carney saying that Brexit has cost each household £900, this Government’s support for costly nuclear energy is a further blow to household budgets. The deal coincides with the proposed nuclear power station at Wylfa in Anglesey in north Wales with a trailed strike price of around £80 per megawatt-hour, brought down from Hinkley’s £92.5 per megawatt-hour through UK Government support with capital costs. This is still significantly more than wind, which comes in at around £57.5 per megawatt-hour, even including intermittency costs. Having failed the North sea in its time of need and abandoned cost-effective carbon capture and renewables technology, why do the UK Government persist with an energy policy that continues to fail Scottish industry while hiking cost for consumers?

[Mr Gyimah]

We have become accustomed in this House to Scottish National party MPs doing one thing north of the border and saying a different thing south of the border. The former Member for Gordon, when he was First Minister, backed the life extension of the nuclear plants in Scotland, so I am surprised that faced with this deal they are not welcoming the jobs in the supply chain from which Scotland will benefit. Yes, we are focused on nuclear, but as part of a balanced approach to ensure that we have the energy sources we need for the future.

Draft Package Travel and linked travel arrangements regulations 2018

Martyn Day Excerpts

Monday 14th May 2018 General Committees

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

It is a genuine pleasure to serve under your chairmanship, Mr Hosie. I thank the Minister and the Opposition spokesperson for their contributions. I do not think these regulations are in any way contentious and I am happy to associate myself with the comments that have already been made; I am broadly supportive of them. I have one admission to make, however: I have never booked a traditional package holiday. I have, however, booked many holidays myself and am glad to see that the legislation is catching up with the practice that many of my constituents and I participate in.

Oral Answers to Questions

Martyn Day Excerpts

Tuesday 14th March 2017 Commons Chamber

[Joseph Johnson]

Through the creation of UK research and innovation, a UK-wide global funding and research agency, we will continue to ensure that excellent science and research are supported throughout the UK in the years to come.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

3. What steps his Department is taking to support the oil and gas sector.

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

The oil and gas sector is important for the UK’s economy, for energy security and for jobs. That is why the Government have established the Oil and Gas Authority as a strong, independent regulator over the past two years, providing a £2.3 billion package of support to encourage investment and exploration in the UK. In the spring Budget last week, the Chancellor announced that the Government will consider how tax could be used to assist sales of late-life oil and gas assets in the North sea, helping to keep them productive for longer.

[Martyn Day]

Do this Government stand by or reject comments, which are in contrast to industry voices, made by the Scottish Conservatives’ energy spokesman, Alexander Burnett MSP, that the oil and gas industry does not need any help and that

“People in Aberdeen are not asking for more at the moment”?

[Jesse Norman]

I am unsure whether I entirely caught the hon. Gentleman’s remarks, but the Government have been clear in their support not just for the UK continental shelf and the companies on it, but for Aberdeen through the £250 million city deal.

Fourth Industrial Revolution

Martyn Day Excerpts

Thursday 8th September 2016 Commons Chamber

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

It is a pleasure to speak today in this interesting and far-reaching debate that was brought forward by the hon. Members for Havant (Mr Mak) and for Hove (Peter Kyle). The debate is fundamentally about technological change.

There is a proud industrial past across my constituency. In fact, the town of Bo’ness can justifiably claim to be the birthplace of the first industrial revolution—I suspect that many other constituencies are staking such a claim today.

[Lucy Allan (Telford) (Con)]

The hon. Gentleman has just claimed to be the representative of the birthplace of British industry, but I must confess that I am the representative of the birthplace of British industry. I hope that he will agree.

[Martyn Day]

I thank the hon. Lady for proving my point.

James Watt, who hailed from Greenock in the constituency of my hon. Friend the Member for Inverclyde (Ronnie Cowan), constructed his first steam engine for Dr John Roebuck of Kinneil in 1768, and the rest as they say is history.

My constituency has not been a stranger to the changes brought about by subsequent industrial revolutions—or to decline. Indeed, much of the 20th century was marked by the demise of heavy industry and the loss of jobs. For many people, the name Bathgate still to this day conjures images of large-scale closures at British Leyland in 1984 and more recently at Motorola in 2001. We must learn from those experiences and ensure that the legacy of the coming revolution is not another round of job losses and increased inequality.

With that in mind, let me say that I welcome the UK Government’s decision to put industrial strategy back on the policy-making agenda. I also support the introduction of programmes that assist businesses in delivering greater economic growth. That said, I am concerned by the uncertainty caused by the UK’s decision to leave the EU, which affects firms’ planning for key investment decisions. Any such delays may weaken an industrial strategy.

In Scotland, the SNP Government have put forward ambitious policies, such as the action plan for manufacturing, to fully realise Scotland’s manufacturing potential, encouraging innovation and skills development, while promoting inclusive growth. As industries evolve, so, too, must the firms that support them. One good example from my constituency is Sibbald Limited, at Blackridge, a firm that has continued to move with the times and is one of the leading providers of training in the construction sector in the country—indeed, it provides construction industry and plant training worldwide. As the fourth revolution develops and processes become increasingly sophisticated, specialist training becomes ever more crucial.

When I grew up as child in West Lothian, not all that long ago, the landscape was littered with shale bings and scenes of industrial decay. What is now being achieved technologically was the stuff of sci-fi shows such as “Star Trek”, which is 50 years old today; there will be a free screening of “The Wrath of Khan” in Linlithgow on Saturday, with Linlithgow being the future birth place of Scotty. The growth of phone apps and world interconnectivity take things to an entirely new level, with personally tailored solutions designed to fit individual user needs. One such modern solution has been developed by another local firm, Silent Seminars in Grangemouth, which has an assistive listening system technology. When that was used during the Edinburgh Hogmanay party last year, it was the first time this tailored service solution had been used at an outdoor music event in the UK, and it allows people with hearing impairments, who may not usually be able to attend live concerts and such, to enjoy shared social experiences with their partners, friends and families.

I am fairly certain that we have arrived at the early stages of the fourth industrial revolution, but large parts of the world have still to experience the second industrial revolution; about 1.3 billion people still lack access to electricity. One thing is certain: we will be in the thick of this revolution for decades to come, and the pace of change will be like nothing before. Where society ends up is anyone’s guess. We need to ensure that such a pace of technological advances reduces, and not magnifies, social and gender inequalities, both locally and globally. Indeed, a long-term comprehensive strategy must be developed to tackle that.

It is predicted that we are witnessing an internet of things, and it is suggested that 30 billion devices or more, covering all aspects of our lives, will be connected to the internet by 2020. This, in turn, will be opening up an unprecedented level of remote control management. Unlike James Watt, whose work at Bo’ness required the nearby Gil Burn to provide a plentiful supply of water, today’s engineers will be able to work remotely, but let us make sure people are not isolated and left behind. We live in exciting times, filled with many challenges and opportunities, so let us make the most of them.