Oral Answers to Questions
Debate between Michael Fallon and Jessica Morden(7 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Sir Michael Fallon
Yes. I visited both carriers last week. This will be a huge asset for the Royal Navy and for this country. Let us be very clear: Scotland is getting all the Royal Navy’s submarines, a major Army base is growing at Leuchars, and there is huge investment at Lossiemouth with an additional Typhoon squadron and the deployment of our new maritime patrol aircraft. Scotland plays a huge part in the defence of the United Kingdom.
Jessica Morden (Newport East) (Lab)
Oral Answers to Questions
Debate between Michael Fallon and Jessica Morden(10 years, 3 months ago)
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Jessica Morden (Newport East) (Lab)
13. What assessment he has made of the value for money for the public purse of the recent sale of shares in Royal Mail.
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
The National Audit Office’s report on the Royal Mail share sale published last week confirms that we achieved our key objective of achieving the sale and allowing Royal Mail access to the private capital it needs to invest and thrive. It was a successful transaction, raising £2 billion for the Exchequer, and has reduced the risks to the taxpayer of having to provide future financial support to the universal six-day-a-week service.
Michael Fallon
More than half the shares allocated to priority investors are still held by those investors, and six of them remain among Royal Mail’s largest shareholders.
Jessica Morden
Most people listening to the Minister’s response will think that it was particularly lame, to put it mildly. Can he justify the fact that consumers and businesses have faced hikes of up to 30% in stamp prices, while hundreds of millions of pounds have been squandered because of the Secretary of State’s disastrous decision at a time when families are really struggling?
Michael Fallon
Nobody has lost anything. Britain has gained a top-100 company in which 10% of the shares are owned by the staff themselves. Nearly three quarters of a million individual investors also have shares in Royal Mail. We achieved our objective of realising nearly £2 billion of receipts for the Exchequer, ensuring that Royal Mail has been put on a sound commercial footing.
Oral Answers to Questions
Debate between Michael Fallon and Jessica Morden(10 years, 6 months ago)
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Jessica Morden (Newport East) (Lab)
T7. In the light of the Government’s announcements this week on shale gas, will the Minister give an update on his Department’s current plans for harnessing energy from the Severn estuary?
Michael Fallon
As I said earlier in response to my hon. Friend the Member for Truro and Falmouth (Sarah Newton), we published the final strike prices for both tidal and wave in December. We continue to take an interest in that particular project, which, of course, has to be commercially sustainable. I am sure that those behind the project are aware of what they have to do to bring it to the market.
UK Energy Infrastructure (Wales)
Debate between Michael Fallon and Jessica MordenWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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Michael Fallon
Yes, I am happy to do so. We are now accelerating the pace of shale gas exploration by putting in place a robust regulatory framework, and ensuring that where shale is hosted by a local community, that local community benefits, just as it benefits from onshore wind farms and as it will do from nuclear stations. The Chancellor has also announced fiscal measures to incentivise the expensive early years of exploration. My right hon. Friend the Secretary of State for Communities and Local Government will be setting out some amended planning guidance so that both developers and local communities that want to consider their applications will be clearer about how the applications are to be handled. We want to make sure that we do not miss out on the potential of shale gas.
Last month, we published the first authoritative estimate of the amount of shale lying underneath the northern basin—the Bowland-Hodder basin covering the northern counties of Lancashire, Cheshire, Yorkshire and so on. We now have a similar study going on in the south of England. Eventually we need to start mapping the resource right across the United Kingdom.
Finally, I can say that I have authorised a new 14th onshore licensing round, which is in preparation at the moment and will commence next year. Again, that should provide opportunities right across the United Kingdom to check and tap the potential of this resource. It is only potential at the moment; we do not yet know whether shale gas is recoverable as cost-effectively and as easily as it is in the United States. We know that the shale here appears to be thicker, so potentially there is a lot of gas that could be extracted and that could make a real difference to our economy. We also know that given the increasing volatility of international oil and gas prices, we have to do more to secure our energy supplies here at home by encouraging a stronger mix of energy from different sources, whether it is wind, other renewables, nuclear, other gas or shale gas.
Jessica Morden
The Minister rightly talks about long-term energy projects. In the short term, we have to maximise the capacity of what we have, particularly when demand is high. Will he look at the issue of lack of rail freight for existing power stations?
Michael Fallon
I am certainly prepared to look at that.
In conclusion, with the framework for investment in place, the energy legislation in front of the House and the details of electricity and market reform being published in greater detail and in draft, we now need to get investment flowing. That is the challenge over the coming years. If we can get investment in a new efficient, low-carbon and diverse energy mix, the jobs and growth that we all want to see will follow. Based on the evidence to date, and the points I have been making, I am confident that Wales is up to the challenge. It is already seeing deployment on the ground, and it is well placed to take advantage of the new investment that we need.