Great British Energy Bill

Debate between Michael Shanks and Iain Duncan Smith

Consideration of Lords message
Wednesday 14th May 2025 Commons Chamber

[Michael Shanks]

Cornwall is ever present in these debates. Nevertheless, however much the shadow Minister’s teeth were gritted, I do welcome his support for the approach we are taking today.

We are debating Lords amendment 2B, which, combined with the previous commitments that I have made from the Dispatch Box and that my noble Friend Lord Hunt has made in the other place, demonstrates that this Government are committed to using Great British Energy as a vehicle for taking this issue seriously. As came through in a number of the contributions, though, this is not solely the preserve of Great British Energy; it is much broader, both in the energy system and in the wider economy.

I have committed to doing some things already. I have committed to appointing a senior leader in Great British Energy who will have oversight of tackling forced labour in the supply chain; we have confirmed that Baroness O’Grady will take on that role. Many Members will know that she has significant experience in this space, and she will bring much effort to important deliberations at GB Energy. I have committed to cross-Government departmental meetings, which took place on 7 May as a starting point. I have committed to including an overarching expectation in the statement of strategic priorities, and that will be delivered within six months. We have demonstrated our unwavering commitment to tackling forced labour in supply chains, and we are resolute in our determination to go further.

[Sir Iain Duncan Smith]

The question, however, is this: at the end of it all, how will we know that the supply chains have been correctly declared? If they have not been, it will become a matter of avoidance. America checks, tests and sanctions companies that have lied about their supply chains, and that has forced wholesale change to its supply chain process. I ask the Government to learn from America and get companies such as Oritain to use forensic science to test the company supply chains about which they are suspicious.

--- Later in debate ---

[Michael Shanks]

I thank my hon. Friend for that intervention, but more broadly, as I have said before, for her significant contribution in this space and for the way she has influenced me and others over the past few weeks on these important issues. I also thank others across the House, because it has been a real cross-party effort, and I think we are in the same place. We want to take this forward, and there is much more work to do. I want the message to be that, while this is progress, it is—as the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) put it very well—the beginning, and certainly not the end, of further work.

Without wanting to tempt fate, this is the last opportunity to speak about the Bill in this place, so I close by thanking everyone who has played a role in getting it to this stage. In particular, I thank my noble Friend Lord Hunt in the other place. I thank all the Members from all parties in this place who contributed to the Bill Committee, and the witnesses who gave evidence. I also thank the parliamentary staff who play such an important role in shepherding Bills through this place and the House of Lords. I especially thank the fantastic team of officials in the Department for Energy Security and Net Zero, who moved at incredible speed to develop the legislation, but always with good humour, which I have personally appreciated.

Great British Energy is at the heart of what the Government are setting out to achieve: delivering clean power, but delivering jobs and investment as we do it; and delivering energy security and climate leadership, owned by and for the people of this country, and headquartered in the energy capital of Europe, Aberdeen. With investments having already been made, including in community energy in Scotland today, which Members from Scotland might welcome, and investment in supply chains and much, much more, this is the big idea of our time. It will deliver on our energy objectives, but with the public owning a stake in their energy future. I am pleased that Parliament will—I hope, without tempting fate—back it today, so that it can receive Royal Assent and get on with doing what we need it to do.

[Sir Iain Duncan Smith]

On a point of order, Madam Deputy Speaker. I just want to remind the House that the Deputy Speaker in the Chair today is also sanctioned by the Chinese Government for her bravery.

Great British Energy Bill

Debate between Michael Shanks and Iain Duncan Smith

Consideration of Lords amendments
Tuesday 25th March 2025 Commons Chamber

[Michael Shanks]

I am pleased that the Great British Energy Bill has returned to this House. I would like to thank all Members of both Houses for their scrutiny of this important legislation. I extend my thanks in particular to the Minister for Energy Security and Net Zero, Lord Hunt of Kings Heath, for his invaluable support and collaborative approach in guiding the Bill through the other place.

Twelve amendments were made there, which I will seek to address today. Before I turn to them, I remind the House that the Government were elected on a manifesto commitment to set up Great British Energy, and that is exactly what the Bill does. Since the Bill was last in this House, we have appointed five start-up, non-executive directors and announced Dan McGrail as interim CEO, based in Aberdeen, so that Great British Energy can quickly get the expertise needed to help the company develop. I was delighted to convene the first meeting of Great British Energy’s board of directors last week in Aberdeen.

We are determined to get Great British Energy delivering for the British people as soon as possible. It has already made some incredibly exciting announcements on initial projects, including a partnership with the Crown Estate, and most recently announcements on solar for schools and hospitals across England, with funding also for Scotland, Wales and Northern Ireland. We look forward to GBE making further investment decisions on projects this year, driving forward our clean power mission and creating thousands of jobs across the country in the process.

Lords amendment 2 would prevent the Secretary of State from providing financial assistance to Great British Energy if credible evidence of modern slavery was found in its supply chains. There has understandably been significant interest in this amendment from Members in the other place and on both sides of this House. We recognise that concerns have been raised widely on this issue, and I am seeking to approach it in a collaborative and open way with hon. Members.

I will also address amendment (a) to Lords amendment 2, as our approach to this amendment is similar. I first of all thank my hon. Friend the Member for Rotherham (Sarah Champion) for amendment (a). I have been grateful for her engagement with me ahead of the Bill returning to this House. I also pay tribute to her tireless work over many years on this important issue. Her amendment would amend Lords amendment 2 made in the other place by creating a cross-ministerial taskforce to which Great British Energy would need to prove that its supply chains were free of forced labour.

I want the House to be in no doubt that this Government are absolutely committed to confronting and tackling modern slavery in energy supply chains. As set out by my colleague Lord Hunt in the other place, Great British Energy has a range of tools to tackle modern slavery in its supply chains. GBE will prepare a slavery and human trafficking statement when it meets the thresholds set out under section 54 of the Modern Slavery Act 2015. That will outline the steps it is taking to ensure that slavery and human trafficking are not present in its supply chains or any part of its business.

Under the Procurement Act 2023, GBE can reject bids and terminate contracts with suppliers that are known to use forced labour themselves or that have it anywhere in their supply chain. I commit here that GBE will utilise the debarment list to ensure that suppliers with unethical supply chains cannot participate in procurement or be awarded contracts by GBE.

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

That is not altogether correct. The Minister will know full well that the Procurement Act can only be enacted once a supplier has had a conviction under section 54 of the Modern Slavery Act. To do that, proceedings have to be able to be taken against the company that is involved in the slavery. A British company involved in agency is not involved in the slavery. It would have to get the Chinese Government to prosecute the Chinese company to make sure that they got a prosecution here. That is never going to happen.

[Michael Shanks]

I thank the right hon. Gentleman for his contribution and his many years of work on this issue. I will come to some of the detail in addition to this measure, but it is important to say that the debarment list, which was part of the Act passed by the Conservative Government, has been in force since February and will be populated in due course. We will use that list as the basis of challenging the decisions that Great British Energy can make not to take contracts with those on that list. I will look in more detail at the specific points that he raised, and I will come to some of that later in my speech.