Strikes (Minimum Service Levels) Bill

Matt Western Excerpts

2nd reading
Monday 16th January 2023 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

I refer Members to my declaration in the Register of Members’ Financial Interests that I am a member of Unison.

My constituent, Peter, died in February 2021. He was a proud railwayman. He lived in Leamington and he died of covid. He worked on the frontline through the pandemic. I saw him every week. Like many of the public, I was only able to get to my place of work because of people like Peter, Charlotte, Joe, Nick and others. Elsewhere, emergency service workers, healthcare workers and other frontline workers held this country together, and they are why I want to speak tonight.

We were urged to clap. Meanwhile, the Prime Minister partied. Emerging from the worst of the pandemic, these workers deserve not just our gratitude, but the right reward. The public understand that, and they want resolution to the disputes. They want due recognition for those workers, because the public also understand that, after 12 years of pay frozen or near frozen through austerity, they deserve better. The public know that for many, real wages have fallen since 2010. Nurses receive £5,000 less in real terms. We have the highest inequality of major nations in Europe.

The great irony is that this Government are incapable of meeting minimum standards or service, with the serial breaking of the ministerial code, two Prime Ministers breaking the law and a Government who illegally prorogued Parliament. The public know that this legislation is not necessary. It is a deliberate attempt to distract and to divide opinion, and a further attempt to erode workers’ rights. If Peter were still with us, he would be standing by his colleagues, and he would be striking. It is for Peter and for all those workers that I will be opposing this legislation.

Energy Security

Matt Western Excerpts

Tuesday 29th November 2022 Commons Chamber

[Grant Shapps]

My hon. Friend’s late father clearly showed great foresight—it is a shame that it has taken all these years, via a 13-year Labour Administration, to do nothing at all on nuclear. I like the T-shirt that my hon. Friend’s father made him wear, and I agree with him on separating out those prices. At the moment the highest cost in electricity applies to everything, and we are actively looking at breaking that complex relationship.

[Matt Western (Warwick and Leamington) (Lab)]

I welcome the Secretary of State’s quote from Shakespeare, but if the bard were alive today, he would be writing either a comedy about the Government or a tragedy about their energy strategy. We have houses in my constituency being built with insufficient insulation and no solar panels, or solar panels on north-facing roofs. If onshore wind is indeed the cheapest source of energy generation currently, how is it that Warwickshire has no onshore wind turbines?

[Grant Shapps]

As I mentioned, the reference price shows that other forms of energy could be even cheaper. Until now, solar panels were not as effective on north-facing roofs, for example, but the hon. Gentleman is absolutely right that the technology is improving rapidly, with the result that we can install solar panels in more conditions than would otherwise have been available.

Energy Prices: Support for Business

Matt Western Excerpts

Thursday 22nd September 2022 Commons Chamber

[Mr Rees-Mogg]

The major price rises in contracts took place after 1 April, which is why that date was set.

[Matt Western (Warwick and Leamington) (Lab)]

For the last 12 years, Conservative Governments have had the chance to act on energy supply and infrastructure. Manufacturing businesses around the country have been saying to me that they are facing a 59% premium against the EU average for electricity. Why did Governments not act sooner, certainly before this energy spike, to ensure the security of UK businesses?

[Mr Rees-Mogg]

It is important for our economy that we have competitive energy prices and that we do not go out of our way to burden British business. I agree: the hon. Gentleman is right to campaign for lower energy prices.

Shale Gas Extraction

Matt Western Excerpts

Thursday 22nd September 2022 Commons Chamber

[Mr Rees-Mogg]

We need to get as much energy as possible. Fracking does not ruin the countryside; fracking sites are actually surprisingly small for what they do. We have been expanding offshore wind dramatically—that has been a very big component—and we are continuing with increasing renewables, but we still need the base supply that can be brought on when there is a surge in demand, and that is dependent on gas.

[Matt Western (Warwick and Leamington) (Lab)]

The public will see this decision as a deceit. There is no economic price advantage to it, as we have heard, while it is damaging to the environment. The claim that the public will have some say in consenting to the proposals will ring hollow in my community, where the district council opposed a 5G mast and that was overridden. Why does the Secretary of State think that there is any advantage to this policy, when we cannot even put in onshore wind in Warwickshire? I believe it is the only county in this country where there is no onshore wind.

[Mr Rees-Mogg]

The answer is energy security and price.

Energy Update

Matt Western Excerpts

Monday 5th September 2022 Commons Chamber

[Greg Hands]

There is a lot in that question. The hon. Lady raised a new issue, not raised in these questions so far—the issue of park homes. That is a serious concern, because around 1% of households in this country are not reached by the current £400 scheme, although they are being reached by other schemes. We have said clearly that we will announce measures to assist those living in park homes, houseboats and so on, which are not covered because they do not have a meter point. There will be a scheme announced this autumn to help them, with funding attached, as part of an additional scheme.

[Matt Western (Warwick and Leamington) (Lab)]

Like many Members, I already have a great number of distressed constituents getting in touch with me desperate for some sort of help. Today, though, I want to focus my comments more specifically on businesses, which we have been hearing about from Members around the Chamber. Last Thursday I met with farmers, who might be readily overlooked; it is essential that all sectors across our economy are considered. They have to keep their grain at a certain temperature, for example, to make sure that it is not affected by moisture and so on. I ask the Minister to ensure that all categories of businesses—care homes, farmers and so on—are considered. Specifically, I spoke to pub owners at a roundtable meeting last Friday. There were seven of them. Frankie, Phil, Ricky and Jake joined me. Several of them will be out of business in three weeks when their contracts end. I ask the Minister to implore the Prime Minister to act with absolute urgency on this issue.

[Greg Hands]

On farming, we are interacting regularly with the National Farmers Union, NFU Scotland, NFU Cymru, the Farmers’ Union of Wales and the Ulster Farmers Union to make sure that the voice of farming is heard loud and clear within this Government, including on energy prices. When it comes to wider announcements, as I have already said, I do not think that the hon. Gentleman will have too long to wait.

Shale Gas Production

Matt Western Excerpts

Tuesday 15th March 2022 Commons Chamber

[Greg Hands]

Of course we are acutely aware of the difficulties that some energy-intensive industries face. My ministerial colleague, my hon. Friend the Member for North East Derbyshire (Lee Rowley), is looking at that all the time, and we review the situation constantly, but those schemes are often a matter for the Treasury and for agreement with the Treasury.

[Matt Western (Warwick and Leamington) (Lab)]

Back in 2014, the people of Warwickshire were very vocal in their opposition to proposed fracking licences across the county by Cluff Natural Resources. I am sure the Minister would agree that our objective must be to reduce energy demand. Why was it, then, that his Government tore up the zero-carbon homes legislation of the previous Labour Government, which would have seen 1 million new zero-carbon homes built from 2016, reducing the demand for energy in this country?

[Greg Hands]

I think the hon. Gentleman is inviting me to go back down memory lane to 2010. I will tell him this: thanks to the actions of this Government, the number of homes that are energy efficient and clear those minimal criteria has massively increased in the past 12 years. Ensuring that energy-efficient homes are there is something that this Government are delivering on.

North Sea Oil and Gas

Matt Western Excerpts

Wednesday 9th February 2022 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

We do have another urgent question and a statement before we even come to the main business, so I urge colleagues to keep their questions brief.

[Matt Western (Warwick and Leamington) (Lab)]

We have a Prime Minister whose approach is “Do as I say, not as I do”. In his speech to the United Nations General Assembly on 22 September last year, he stated:

“We are approaching that critical turning point—in less than two months—when we must show that we are…learning, and maturing, and finally taking responsibility for the destruction we are inflicting...It is time for humanity to grow up.”

I do not care much for the Prime Minister, but I care about this country’s reputation. Has he misled the United Nations?

[Greg Hands]

We are proud of the record and our delivery at COP, and the COP President continues to deliver. It is a fantastic achievement to get coal written into a COP document for the first time. We should be proud of the fact that we are the co-chair of the Powering Past Coal Alliance, and the fact that so much more of the world’s GDP has been under net zero obligations at the end of the UK’s year than at the beginning.

Oil and Gas Producers: Windfall Tax

Matt Western Excerpts

Tuesday 1st February 2022 Commons Chamber

[Edward Miliband]

I will answer all the hon. Gentleman’s points. We would raise £1.2 billion from the windfall tax. I will come to this later in my speech, but the tax position is incredibly generous for companies, including Shell and BP. He says that their money is going into renewables, but I am afraid that he is not correct. Shell’s near-term plans involve investment of just £2 billion to £3 billion in low carbon activities and £8 billion on upstream fossil fuel production. It is just greenwash to say that these companies have somehow moved out of fossil fuels and into renewables. The truth is that when profits have risen by billions and billions and when billions are being paid out in share buybacks, it is not credible that somehow a one-off tax rise, taking just a small proportion of the windfall profits that these companies did not expect, will somehow lead to a collapse in investment.

There is a clear consensus that a windfall tax is the right thing to do. An overwhelming majority of people support it—including, I might point out to Government Members, three quarters of Conservative voters. I do not know what Conservative Members are waiting for: they should support a windfall tax because some of the people who vote for them—or used to vote for them, anyway—also support it. Leading charities have endorsed it and some Conservative Members, including the right hon. Member for Harlow (Robert Halfon) and the former business Minister the right hon. Member for Kingswood (Chris Skidmore), have supported it too.

Of course the oil and gas companies do not want the windfall tax to happen. Let us take their arguments head on. As I have said, the argument that the tax will lead to a collapse in investment is not credible given what the companies are doing with this windfall, and it also misunderstands the long-term basis of these companies’ investment plans. I should also point out that the companies would keep a significant proportion of the windfall, even under our proposals. It is an unexpected, unearned windfall, half of which they would keep.

Secondly, as I said to the hon. Member for East Worthing and Shoreham (Tim Loughton), the proposal comes against a backdrop of the incredibly generous tax position in the UK, which meant that BP and Shell actually paid no net tax at all between 2018 and 2020.

Thirdly, there is a wider context. [Interruption.] The hon. Member for East Worthing and Shoreham is muttering, from a sedentary position, that those companies are not making profits. Actually, they are forecast to make near-record profits this year, as the hon. Gentleman will see if he looks at what outside analysts are saying.

As I was saying, there is a wider context. The oil and gas sector provides important employment for our country and communities. We need a phased transition, but, as I said to the hon. Gentleman, the long-term answer to this crisis is not more reliance on fossil fuels. Indeed, the Business Secretary himself has said:

“the UK is still too reliant on fossil fuels.”—[Official Report, 20 September 2021; Vol. 701, c. 95.]

The answer must be instead to go further and faster on renewables, nuclear and other zero-carbon alternatives, but that is not what the fossil fuel companies are doing with their profits.

[Matt Western (Warwick and Leamington) (Lab)]

My right hon. Friend is making a powerful speech. He has identified the immediate issue of energy poverty and crisis that we have in this country. Those of us who are old enough to have lived through the 1970s and 1980s recall how the Norwegians used the wealth generated from the North sea to create sovereign wealth funds. Should we not be thinking about that? Could we perhaps not just use the windfall tax, but deploy such funds in the way that my hon. Friend is describing, to invest in renewables and invest in our country?

[Edward Miliband]

My hon. Friend has made a powerful point.

Labour has come up with a clear and costed plan. We plan, by levying the windfall tax, to reduce VAT to zero, to increase the warm homes discount from £150 to £400, and to extend it from the 2.2 million families who currently receive it to 9 million. On top of that, we have set aside £600 million to help our businesses out. This is in stark contrast with what is being proposed by the Conservatives—the Government of the day, who, six days before the announcement of the rise in the price cap, seem to have nothing to say. What is their explanation for why they are not acting? It is very hard to find the explanation, although perhaps we will hear one today. The one person who has ventured to provide one is the Education Secretary, who has said:

“A windfall tax on oil and gas companies that are already struggling in the North Sea is never going to cut it.”

Even the oil and gas companies do not describe themselves as struggling. They say that this is a cash machine. I have to ask what planet the Government are living on. Does it not say everything about them that it is the struggles of companies making billions from an expected windfall that stir them, not the struggles of the British people? How dare they leave families in the lurch because of their refusal to stand up to vested interests in the oil and gas sector?

--- Later in debate ---

[Lee Rowley]

My hon. Friend makes a number of hugely important and powerful points.

[Matt Western]

rose—

[Lee Rowley]

The hon. Gentleman has been waiting for a long time, so I am happy to give way.

[Matt Western]

The Minister is being generous with his time. We need to put his point about the drop in the ocean and the value of £1.5 billion in the context of the £4.3 billion that the Treasury has just written off. We are talking about not dissimilar sums of money, are we not?

[Lee Rowley]

I am very glad that the hon. Gentleman raises that point. I am not sure whether he was present at the end of the last debate, but it was made clear from this Dispatch Box that that is not the case in the slightest. This Government will continue to pursue the recovery of as much of that money as possible. The Labour party can keep repeating the point if it wants, but it would not be fair, accurate or real to do so.

To come back to the Opposition motion, if it is not all about the money, the motivation has to be different. If that is the case, the Labour party should just be clear. The right hon. Member for Doncaster North knows that policy actions have consequences and decisions have reactions. He has put forward a specific proposal for a windfall tax, so he should be held to account for it.

The implications of a windfall tax structured in such a way would have to fall somewhere: on consumers, on investors or on the activity itself. I assume that the Labour party does not propose to go after consumers or to reject the idea of oil and gas as a commodity, so ultimately it will have to be the investors who shoulder the burden. If so, the right hon. Gentleman should be clear that he is expecting less of a return for pension funds and therefore for pensioners and the many hundreds of thousands of people out there who are reliant on the performance of the stock market to ensure that they can be supported in old age.

Perhaps the proposal is just a blunt tool to reduce production in general. If so, the right hon. Gentleman should just say so. That certainly seems to be the inference to draw from his statements today, and from his questions over recent weeks to other Government Front Benchers. It does not sound as if he is simply looking for a source of money to fund others; it does not sound as if he is seeking to maximise economic return; it sounds as if he is deliberately trying to penalise activity on the UK continental shelf and, if possible, to reduce it. If that is the case, he should say so out loud, because then will we know.

Reducing Costs for Businesses

Matt Western Excerpts

Tuesday 11th January 2022 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

Let me start with energy costs, which are significant. Energy prices in the UK are 87% higher than our EU competitors, which is a massive cost disadvantage against them. They are a massive factor for small businesses too, irrespective of the sector that they are in, as the Federation of Small Businesses has highlighted. Some 78% of small businesses say that they expect energy costs to increase significantly in the next three months.

Business rates, as we have heard, are not fit for purpose in their current guise. Almost 50 shops a day disappeared from our high streets in the first six months of last year. They are also a massive cost burden for our major businesses. Some of our big automotive plants and other manufacturing sector sites have a 50% higher tax burden from business rates compared with sites in Europe. By freezing business rates this year, which would save a small shop or factory £4,000, and by seeking to abolish business rates altogether in favour of a fairer system, the viability of our high street could be guaranteed only under a Labour Government.

On Brexit, briefly, businesses in my constituency are really concerned. They have told me time and again about the painful and expensive exercise of navigating customs, including the complexity of navigating 27 VAT regimes in Europe. Then there is the shortage of staff—HGV drivers, warehouse staff and skilled workers—that is also having an impact and costing our businesses. The Prime Minister infamously said “F*** business”, and I am afraid that he has. The lack of an industrial strategy has underlined that. The simple truth, I am afraid to say, is that the Conservatives are no longer the party of business, but the party of burden.

To conclude my two minutes, the Labour party is unashamedly pro-business. With every day that passes, our pro-business policies gain more and more traction with the business community and the electorate. With that in mind, I unreservedly support the motion.

Shotton Steelworks: 125th Anniversary

Matt Western Excerpts

Wednesday 1st December 2021 Commons Chamber

[Mark Tami]

I absolutely agree with my hon. Friend. We have to look at the whole picture, not just part of it.

[Matt Western (Warwick and Leamington) (Lab)]

I listened closely to what my right hon. Friend said about energy. On the point about costs, the Labour party’s proposal to introduce a total review of business rates is critical to the industry. As we know, comparison of business rates in this country with their equivalent in Europe shows a disadvantage for the UK of something like 70%.

[Mark Tami]

My hon. Friend makes a very good point. Every which way the industry turns, it seems to be at a disadvantage to its neighbours.

I implore the Government: instead of turning their back, will they turn towards the people they serve, provide a proper industrial strategy for the industry and the workers, support the industry to decarbonise, and put stronger targets in place to buy British? It is our duty and our place to stand up and represent the industries and businesses providing a livelihood for the people we represent, which are the lifeblood of our areas, while taking steps to secure a green and sustainable environmental future for us all.

Shotton has provided communities in Alyn and Deeside with secure employment since its inception, has supported the local and global economy and has provided vital quality products for infrastructure developments. The Government must recognise and support the Tata Steel group in its effort to transform into a green steel producer. I will continue, as I am sure hon. Friends will, to demand that funding is properly directed to that area. Above all, I will continue to stand with the workers of Shotton Steel, the trade unions and the management, for it is their skill and dedication that maintain production and innovation. It is they who keep Shotton at the heart of the community, and it is they who will be central to the next 125 years of steel making in Alyn and Deeside.

--- Later in debate ---

[Lee Rowley]

I know that the right hon. Gentleman will not expect me to accept that point. We accept that there is a challenge with energy prices at the moment, and we understand that that is a cause for concern for a number of energy-intensive industries, including steel, ceramics—which I debated with a number of colleagues in this Chamber and beyond in another place last week—glass and paper. We are keen to understand the detail, and it is important that we recognise that there is nuance in this debate and that different strategies are being employed by different companies.

There are also different contexts in which these energy prices are applied. A diverse group of industries are impacted by gas prices. Efficiencies are being pursued in some places, and there are hedging strategies in others. I accept the right hon. Gentleman’s challenge that energy prices are high, albeit volatile and variable, but I hope he will also acknowledge that we are really trying to work with the industry and the sectors to understand the different challenges presented by high gas prices, and that we will continue to do so over the coming weeks and months.

[Matt Western]

I applaud the Minister’s ambition in seeking to address energy costs in the energy-intensive industries that he has just identified. Would he welcome and support a move towards a greater number of onshore wind turbines, which would be one of the best providers of low-cost energy to this country?

[Lee Rowley]

If the hon. Gentleman will forgive me, I will not set out our energy strategy on wind turbines today. That would be a matter for one of my colleagues in the Department. The broader point that he makes, however, is that over the coming decades we need to decarbonise our electricity supply. We have had some success in doing that over the previous decades. By doing that, through whichever process we can achieve it, we will ensure that we have clean and green energy to support industries such as we are talking about today.

I just want to touch on a couple more points before I close. The right hon. Member for Alyn and Deeside highlighted his concern that the Government do not focus on steel. I would not accept that point. In the 10 or so weeks that I have been the Industry Minister, I have already visited two steel mills and had regular conversations with the companies involved. I have met them on a number of roundtables and will continue to do that. On a broader level, we had the announcement at COP26 and the Glasgow breakthroughs, and we will be working with a number of countries around the world to ensure that we can decarbonise the industries that are more challenging to decarbonise. That indicates a desire to find ways through difficult challenges where there are no easy answers, and the Government and communities are trying to work through how to do that.

One way is through hydrogen, as the right hon. Gentleman highlighted extensively in his speech. He was somewhat sceptical about the UK Government’s activities in this space, but I want to place on record for completeness that there has been significant movement on hydrogen in recent months. We had the publication of the hydrogen strategy in August, the hydrogen business model is being consulted on, and the net zero hydrogen fund stands at nearly £0.25 billion. We also have the UK low carbon hydrogen standard. Of course there is much more to do on that, which is why we are putting in place the frameworks for that to happen, but I hope that that demonstrates an intent from the Government to explore the possibilities around hydrogen.

Finally, I want to touch on procurement, because I know that that was an important part of the right hon. Gentleman’s speech.