Oral Answers to Questions

Michael Connarty Excerpts

Thursday 5th February 2015 Commons Chamber

[Mr Davey]

He is probably talking about the draft strategy. He needs to see the final one before he makes such points. The fuel poverty regulations that we have introduced are radical and have not received the attention they deserve. Under the regulations, by 2030 any person who is in fuel poverty must be in a house of at least EPC rating C. That is a major step forward and we have the policies, set out in the fuel poverty strategy, to deliver that.

[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

9. What assessment he has made of the effect of lower oil prices on oil and gas extraction from the North Sea.

[The Minister of State, Department of Energy and Climate Change (Matthew Hancock)]

Oil companies around the world are reacting to the rapid fall in oil prices and prioritising activity. We are working to ensure that we deliver maximum economic extraction from the North sea. I will be travelling to Aberdeen later today to discuss that with the industry.

[Michael Connarty]

It does seem that others are doing things around the world, but this Government are doing very little. The Energy Minister did not reply to this; he is posted missing on it. He was also posted missing at the summit in Aberdeen. At that summit, the point was made that the two things that are required are investment tax write-offs, so that people continue to invest in future fields, which will stop if they do not continue to invest; and a reduction in the taxation on the fields, which the Government increased massively to 30%. If we bring the tax back down to 20% and put in tax investment, we might sustain this field—this week, Shell announced that it is closing the Brent field, the first field to bring oil into this country from the North sea.

[Matthew Hancock]

Work of a collaborative tone to support maximum extraction from the North sea might be more appropriate considering some of the inaccuracies in the question. Not only did we take measures in last year’s autumn statement to support oil companies to ensure the maximum extraction, but we are looking at what further we can do in the Budget. The Secretary of State was in Aberdeen last month, and I will be in Aberdeen later today. We are taking this action to support the maximum possible extraction in terms of economic ability from the North sea.