Nuclear Management Partners (Sellafield)
Debate between Meg Hillier and Ed Davey(9 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
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Mr Davey
To be clear, the renewal of the contract was the NDA’s decision, which we endorsed. When we endorsed it, we obviously asked the chief executive, the chairman and the board of the NDA some serious questions, including about the model, and that led to the review of the model and to today’s statement.
In relation to the renewal of the ongoing contract, I of course met executives from the NMP. I cannot give the hon. Lady details of all the meetings that my Ministers or I had. I am happy to write to her about them; there is nothing secret about them. The key thing was to ensure that the contract renewal covered improved performance during the ongoing review of the model, and the facts show that performance has improved.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
Three of the world’s top 10 engineering challenges are at Sellafield. As other hon. Members have said, it is a very complex site. Will the Secretary of State ensure that he and his fellow Ministers undertake very complex monitoring to make sure that the value-for-money challenges identified by the National Audit Office and the Public Accounts Committee do not slip again? I mean value for money in not just the cost of the contract but, as my hon. Friend the Member for Barrow and Furness (John Woodcock) said, the impact on the supply chain, because Sellafield should not deaden the local market, but build it and help it to thrive.
Mr Davey
I certainly agree with the hon. Lady that the project on the site is hugely complicated. Anyone who visits it can see that for themselves. I should tell her, however, that the prime responsibility for managing it lies with the Nuclear Decommissioning Authority. The NDA was quite rightly set up under the previous Government—with cross-party support—and we believe that it is the right model.
The NDA needs to be involved in all local decisions. It would not be very sensible for that to be managed by Ministers and officials in Whitehall—the NDA is on the front line—but it is the job of Ministers and, indeed, this House to hold the NDA to account. We do that through regular reports and through the officials who regularly work with the NDA, and the House does it through the Energy and Climate Change Committee and the Public Accounts Committee.
Oral Answers to Questions
Debate between Meg Hillier and Ed Davey
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
T5. On the roll-out of smart meters, the in-home display accounts for about £15 of the cost per household, yet in a recent survey six out of 10 customers said that they would prefer to receive information on tablets, personal computers or smartphones. Does not the Secretary of State think that he is wasting money by going down the route of old-fashioned technology, and will he rethink it?
Mr Davey
No. There is an awful lot of research that shows that in-home displays lead to changed behaviour. There is nothing to stop an energy supplier offering other options in addition. If the hon. Lady wants the improved energy efficiency and lower energy bills that the smart meter programme wants to deliver, I hope she will look at the research, because it is pretty strong.
Oral Answers to Questions
Debate between Meg Hillier and Ed Davey(10 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
It is interesting that when the Energy Bill received its Third Reading in this House, only eight Members voted against it. All the Front Benchers of all parties bar one—and that party has only one Member—voted for the Bill. I think that sent a sign, not just from the Government, but from this whole House and across the British political system that this country supports investment in renewables.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
The Minister of State, Department of Energy and Climate Change, the right hon. Member for Bexhill and Battle (Gregory Barker) talked earlier about good value for green money, but the green deal has been a complete failure. What is the Secretary of State’s assessment of the enormous amount of money spent on this complex, bureaucratic project that has delivered no results?
UK Nuclear Energy Programme
Debate between Meg Hillier and Ed Davey
Mr Davey
I am grateful for the hon. Gentleman’s question, and he is right to say there is a lot of international interest, as I saw on recent trips to Korea, Japan and China. Right hon. and hon. Members will also know about interest not only from France, but from north America, including Canada, and Russia. I am not sure, however, that that international interest all depends on National Grid because I think a lot of the work depends on my Department and the Government. National Grid has a critical role, but the negotiations were done by my Department.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
Earlier, the Secretary of State reflected on why there has been a delay in building new nuclear. When I was shadowing his position, I was approached by nuclear companies who asked about political commitment in this country. I gave resounding support from the Labour party, so I think the dithering came from his side. While he talks about a 35-year plan and a power station that will open in more than a decade, does he still advise my constituents to put a jumper on when they cannot pay the bills?
Mr Davey
The hon. Lady demeans herself because she knows I did not say that on “Newsnight” recently. More importantly, she is not taking responsibility and neither is the Labour party. She may not know this, but this is the first time the Liberal Democrat party, or its predecessor, has been in power in peacetime for about 90 years, so blaming my party for not delivering on nuclear power takes some cheek.
Cost of Living
Debate between Meg Hillier and Ed Davey
Mr Davey
I am disappointed that my hon. Friend seeks to deny the science of climate change. He may have heard Sir John Beddington, the Government’s recently retired chief scientist and a very distinguished scientist, say that the science showing climate change was human-made was “unequivocal”. When it comes to science, I like to listen to the experts.
It is important that we gain jobs, especially green jobs, through our investment in low carbon. We also need to ensure that these are profitable enterprises in which people can invest. We need £110 billion of investment in our energy infrastructure over the rest of this decade. That will be in low carbon, in gas and in other energy security measures.
On prices, we have to drive a wedge between the rising global prices and the bills that people have to pay. We also have to rise to the climate change challenge. We need to recognise that the challenge is serious and that—contrary to what my hon. Friend suggests—the science tells us that we have to act.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
The Secretary of State talked about investments in our infrastructure. The green investment bank could be fuelling jobs in the green sector if it were also investing in SMEs that are developing and bringing to market technology in this area. Why are the Government failing to deliver on that?
Mr Davey
The Government have delivered on the green investment bank. The hon. Lady should know that investment banks are not controlled by Government. They are given a remit to make investments, and the green investment bank is doing so and is extremely effective. Indeed, it is world leading. I am sorry that the hon. Lady is criticising it and I hope that she will look at what it is doing and realise that it is making a big difference. Our performance on green growth and green jobs shows that we are delivering on the coalition agreement promise to build a new economy from the rubble of the old.
We have this massive infrastructure opportunity because nearly a quarter of our capacity will close over the next decade. We have to replace that to keep the lights on, but at the same time we can begin, and really go for, the transition to a low-carbon energy economy. We need to do that by investing especially in energy efficiency. I have stressed that from day one as Secretary of State. We have several policies already, such as the green deal and the energy company obligation, but in the last year we have developed some very interesting proposals on electricity demand reduction. We will publish the response to our consultation on that shortly.
Around 1 million people work in the green economy, and the support that we are giving to clean energy will fuel the rise in the area. Between now and 2020, the support we give to renewables will increase year on year to £7.6 billion—a tripling of the support for renewable energy and a record the Government can be proud of. We already have 110,00 jobs in the renewable energy sector directly, and 160,000 jobs in the supply chain. By 2020, we believe the sector will have more than 400,000 jobs.
We also have the prospect of a new generation of nuclear power stations. I am engaged in discussions with EDF for a proposed nuclear reactor at Hinkley Point C. If we reach agreement, it will result in more than 5,500 jobs during construction, more than 1,000 ongoing jobs at Hinkley Point C and more in the supply chain. Our proposals on carbon capture and storage—we have two preferred bidders, Peterhead in Aberdeenshire and White Rose in Yorkshire—will also result in lots of jobs and deliver a pathway to commercial CCS in the next decade, which will be very important in meeting our climate change targets.
We sometimes forget the oil and gas sector, perhaps because it is not as green as renewables, nuclear and CCS, but it will be essential as we make the transition from a fossil-fuel economy to a low-carbon economy. We will still need an awful lot of gas and oil during that process and in the next few decades. I am delighted to report to the House that investment in the North sea is booming. We are seeing record levels of investment in the North sea, which is good for our energy security as we do not have to import so much gas from other parts of the world. I hope that right hon. and hon. Members will welcome that.
I have made it clear that we will also support the development of shale gas. If it has potential—and we do not know that yet—it could be beneficial, especially to our energy security. We are going to need gas for many decades. It replaces coal, so it can help us to meet our climate change targets. At the moment, we have to import increasing amounts as the amount coming from the North sea is declining. If we can exploit shale gas commercially, that will make sense, and I hope that we can reach agreement on that. We are going about this in a way that is designed to keep the public with us. In other countries that have rushed headlong into it, the public have reacted very badly, leading to moratoriums and bans. We want to ensure that we think things through carefully, which will help us do it properly.
Oral Answers to Questions
Debate between Meg Hillier and Ed Davey(11 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Meg Hillier
With respect, the Energy Secretary has not answered my hon. Friend’s question. How are the Government going to ensure that the energy companies do not simply raise the price of their lowest tariff so that it is no longer as low as it was in the past?
Mr Davey
With respect, I did answer the question. It involves something called competition. On this side of the House, we understand competition and how it supports consumers. I have to say to Opposition Members that an awful lot of people were asking the last Labour Government why they did not sort out the multitude of tariffs that were creating complexity and confusion and getting in the way of competition. Through our simplification, we are helping the most vulnerable people and those who have been on dead tariffs and paying far too much for their energy, but we are also ensuring that competition can deliver for our economy.
Energy Policy
Debate between Meg Hillier and Ed Davey(11 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
On 17 October, the Prime Minister promised that he would ensure that energy companies put consumers on the lowest tariff by law. We know that that was a sleight of hand; the Secretary of State has just said that metered customers would not be on the lowest tariff, only the lowest in their band. Will the Secretary of State be clear today that he is limiting the tariffs to only four per company and that there is no guarantee that they will be the lowest? The lowest tariffs will now be higher than they were before.
Mr Davey
If the hon. Lady has read Ofgem’s proposals, she will have seen that it proposes four core tariffs. People can then express preferences in respect of both their payment method and whether they want dual discounts. Our consultation paper’s proposals are very similar to Ofgem’s.