Oral Answers to Questions

Debate between Matt Hancock and David Mowat

Thursday 18th December 2014 Commons Chamber

[Matthew Hancock]

I do not think that the hon. Lady listened to my answer. The amount of investment in renewables is more than double that in the previous Parliament, so it is difficult to answer the rest of the question when it is based on a complete misconception of the facts. We have a clear policy to tackle carbon emissions and ensure that we meet the UK’s international obligations on carbon alongside the lowest possible reasonable cost to consumers and ensuring the security of energy supplies. In the past year, 15% of our electricity has come from renewable sources, double the amount under the previous Government. We are making progress, but we must do it in a way that keeps costs down.

[David Mowat (Warrington South) (Con)]

Since we are quoting EU league tables for energy, will the Minister confirm that in 2010 only two EU countries had less renewable energy than us—Malta and Cyprus—and that he has no intention of allowing that situation to occur again?

Oral Answers to Questions

Debate between Matt Hancock and David Mowat

Thursday 6th November 2014 Commons Chamber

[Matthew Hancock]

This is unusual for me, but I think my hon. Friend is being slightly unreasonable to Labour Members, because, under the former Prime Minister Tony Blair, they did take the decision to restart a nuclear programme. Of course, it was slow going at first, and we have accelerated it considerably. This summer’s decision, announced on 8 October, was a big step forward that has demonstrated to other potential investors that this market in the UK is now open. We have eight approved sites in total, four of which have projects that are at various stages of development. New nuclear will play an important part in our future energy mix, and I am glad that it has cross-party support.

[David Mowat (Warrington South) (Con)]

11. What recent discussions he has had with his counterparts in European Union member states about carbon and renewables targets.

Rolls-Royce (Aerospace Group)

Debate between Matt Hancock and David Mowat

Wednesday 5th November 2014 Commons Chamber

[Matthew Hancock]

I do not think that the hon. Lady’s initial characterisation was fair. Bristol is home to a significant Rolls-Royce operation and more than 4,000 apprenticeships have been started in her constituency since 2010, so I entirely understand her concern about the future of apprentices. However, I think that the announcement by Rolls-Royce that it will maintain its graduate and apprenticeship programmes is an important statement of intent to support the younger work force.

[David Mowat (Warrington South) (Con)]

About a month ago, Rolls-Royce issued a profit warning in which it said that the problem that it faced was the effect of the imposition of sanctions on Russia. Have my right hon. Friend’s discussions with the company over the last couple of weeks included any discussion of the proportion of the job losses that will have been caused, or affected, by our position in regard to sanctions?

[Matthew Hancock]

That issue has not been raised with me directly. However, the question of whether we impose sanctions on Russia, and the question of how we deal with Russia, must be considered in the context of the national interest as a whole. Furthermore, international stability and ensuring that sovereign territory is not violated by other sovereign states constitute a crucial principle of global order, and that in itself means that it is necessary to take sanctions against Russia following its action in Ukraine. Some UK interests may be directly affected, but there is a much bigger picture: the need to ensure that we have a more stable international order.

Coalfield Communities

Debate between Matt Hancock and David Mowat

Tuesday 28th October 2014 Commons Chamber

[David Mowat (Warrington South) (Con)]

The Minister is right. On 4 December, Labour Members were whipped to vote for the accelerated closure of the UK coal industry. I have checked the list of those who so voted, and one of them was the hon. Member for Barnsley East (Michael Dugher). We are talking about looking forward, but on Lords amendment 105 the hon. Gentleman voted for the accelerated closure of the coal industry. You couldn’t make it up.

[Matthew Hancock]

The inconsistency between how the shadow Minister voted and what he has said today is evident for everybody to see. Labour Members voted for the faster-than-planned closure of coal-fired power stations, and having had 13 years in power to do all the things they are asking for, all they can do today is to complain about what happened in the 1980s.

Oral Answers to Questions

Debate between Matt Hancock and David Mowat

Monday 16th June 2014 Commons Chamber

[Matthew Hancock]

I am delighted to say that there are over 20,000 ambassadors from engineering who go into schools under the STEMNET—the science, technology, engineering and mathematics network—programme. It is just one example of the organisations that can help to bring employment and education together.

[David Mowat (Warrington South) (Con)]

7. What steps he is taking to adopt a revised funding formula for schools.

Oral Answers to Questions

Debate between Matt Hancock and David Mowat

Thursday 24th October 2013 Commons Chamber

[Matthew Hancock]

I have visited Northumberland college, which serves my right hon. Friend’s constituency, and it is an impressive institution. Of course, it is important to ensure that adult skills are available throughout our country, and as the recent OECD study showed, spreading English and maths skills is vital to ensuring not only that we can improve our competitiveness as a country but, most importantly, that we can allow everybody to participate. Improving technologies in teaching will help, but we must ensure that there is access to basic skills throughout the country.

[David Mowat (Warrington South) (Con)]

6. What projects will be eligible for funding from the Green Investment Bank.

Enterprise and Regulatory Reform Bill

Debate between Matt Hancock and David Mowat

Wednesday 17th October 2012 Commons Chamber

[David Mowat]

I believe the Minister said that the European permission excludes nuclear power, which forms by far the largest part of low-carbon electricity in this country and is likely to continue to do so. Given that, will he amend the purpose stated in clause 1(1)(a), as it is no longer accurate?

[Matthew Hancock]

The application, which has just succeeded, did not include nuclear. We do not plan to amend that purpose, not least because the Bill provides that the bank can, in time and if appropriate, be moved from the public sector into the private sector using secondary legislation, without changes having to be made to primary legislation.

--- Later in debate ---

[Matthew Hancock]

Clearly, one reason for establishing a green investment bank is to ensure that it delivers against the green purposes. Of course cost is vital. That is why we are setting up the bank so that it will act on a commercial basis. The crucial point is that it must act in accordance with one or more of the green purposes; otherwise there would be no point in it being a green investment bank.

[David Mowat]

For clarity on the point that was made from the Opposition Benches, there is a proposal for a very large wind farm in the Republic of Ireland, whose output would come over to the UK through an interconnector and would therefore hit our green purposes. Could we invest in that scheme in the Republic of Ireland under the Bill?

[Matthew Hancock]

I would want to look at the details of the scheme. However, the amendments that we have made to the articles of association refer to the bank contributing in the UK. I would expect, though I cannot formally confirm, that an interconnector would have an impact in the UK as well as on the other side of the Irish sea. I will write to my hon. Friend with more details.

Amendment 2 was tabled in response to a suggestion from the hon. Member for Hartlepool (Mr Wright) that the designation of the bank should be subject to an affirmative resolution of Parliament. We made it clear in Committee that we are looking towards that. We want to ensure that Parliament has the full ability to scrutinise these issues and I hope the Opposition will support that change in arrangements.

Amendments 4 and 5 deal with directors’ pay. The Government have repeatedly demonstrated their commitment to ensuring that UK companies apply the highest standards of corporate governance. We have already introduced measures under the Bill to require quoted companies to seek shareholder approval for the directors’ remuneration policy. This change ensures that the bank will abide by these new commitments so that it is treated as a quoted company for the purposes of chapters 4 and 4A of part 10 of the Companies Act 2006, and so that the company is required to seek shareholder approval for the directors’ remuneration policy. This requirement would continue if the bank were one day moved into the private sector. I am sure hon. Members on both sides of the House will support the Government’s commitment to the very highest standards of corporate governance.

Opposition amendments 76 and 89 deal with the bank’s ability to borrow. As I said, the Government committed in Budget 2011 to fund the green investment bank with £3 billion to 2015. This is a serious demonstration of the Government’s green credentials and it is an appropriate level of funding for a new financial institution so that it can build market confidence and show a positive commercial return, while mobilising additional capital for green infrastructure projects in accordance with its green purposes. It is a major injection of capital which underlines our strong commitment to the bank.

We have also already given a clear commitment that the bank will be able to borrow, including from the capital markets. It may help if I explain the legal position in respect of borrowing by the bank. As a company formed under the Companies Act, the bank already has the power to borrow. The bank’s constitution provides, understandably, that the company will not incur borrowing without Government consent. This restriction is imposed by the Secretary of State as shareholder and does not affect the underlying position under company law that the company, as a legal person, has the ability to borrow.

I want to be clear that we are considering carefully the case for the bank borrowing from the capital markets from 2015-16, subject to the caveats I have mentioned. It is too early to make commitments about the level or type of funding. The views of the bank’s board will be an important factor, so we will have to discuss with it the appropriate level and source of future borrowing. We made a firm commitment in Committee to seek state aid approval from the Commission in respect of borrowing before the end of this Parliament. However, we cannot move to seek that approval before we know the mechanism for and quantum of borrowing. The bank’s borrowing will clearly be scored against national debt totals, so it is entirely reasonable for the Government to take that into account as part of our future spending and fiscal plans.

In summary, the Government agree with hon. Members about the importance of the issues relating to the bank’s funding, and their role in highlighting those here is welcome, as the Government want no one to be in any doubt about our serious ambitions for the bank and the green economy. These considerations will clearly be critical to the bank’s future and we will consider carefully how to provide clarity, either through the company’s constitution or by other means, about the legal position with regard to the bank’s borrowing.