Rosebank and Jackdaw Oilfields

Debate between Michael Shanks and Tom Hayes

Monday 10th February 2025 Commons Chamber

[Madam Deputy Speaker (Judith Cummins)]

The final question is from Tom Hayes.

[Tom Hayes (Bournemouth East) (Lab)]

Thank you, Madam Deputy Speaker, and as this is the final question, may I commend the Minister on taking a measured and pragmatic approach at the Dispatch Box? That is in sharp contrast with the Conservative party, which seems to be continuing its journey from zombie Government to shambolic irrelevance. When I talk to investors and businesses in the energy sector, they stress the importance of a plan, whether it is that of the National Energy System Operator, or of mission control, led by Chris Stark. Will the Minister outline the importance of Great British Energy in the planned transition to the jobs of the future?

[Michael Shanks]

In terms of the tone of the debate, the Government and the Opposition will of course disagree on many things—by the sounds of it, we increasingly disagree on the importance of tackling climate change and net zero—but generally we all want to see a transition in the North sea that is fair and prosperous, particularly for the workers in that industry, to ensure that they have confidence that they will have well-paid jobs to go into. I spend every day in this job taking that incredibly seriously, and whatever disagreements we might have across the Dispatch Box, I hope that is understood. We want to build a transition that recognises that it is already under way, that thousands of jobs have been lost and that it is our duty and responsibility as a Government to ensure that we put in place the industry and jobs that come next. That is what I will spend every day doing while I am privileged to have this job.

Biomass Generation

Debate between Michael Shanks and Tom Hayes

Monday 10th February 2025 Commons Chamber

[Michael Shanks]

After an urgent question and a statement, I hope that I will not still be standing here in 15 years’ time, and I suspect the House will support that. Let me be really clear. I do not remember Drax being the poster child for the clean energy transition. I have outlined clearly why this decision is important in terms of energy security, but we wish that we as a Government had had more options. Unfortunately, those options were not there, so we have made the best of a difficult situation to get an incredibly good deal that delivers value for money, improves sustainability and delivers on energy security. In the 2030s, I want to see our clean power system delivering cheaper bills and industrial manufacturing jobs across the country. I hope that, in 15 years, the right hon. Member and I will have a conversation about how that is delivering for our constituents.

[Tom Hayes (Bournemouth East) (Lab)]

The shadow Secretary of State talked about being under new management, and I suspect that he will be saying the same thing in a few months after the inevitable bloody coup. I commend the statement, which will do some really important things, including: capping Drax’s output; a windfall tax on Drax; millions saved by halving subsidies paid for by my constituents; and the forcing up of sustainability. It is a pragmatic solution to a disastrous inheritance. Does the Minister agree that this will be a better deal for taxpayers and consumers for our energy security and our environment?

[Michael Shanks]

My hon. Friend summarises the importance of the deal clearly. We have limited the expected rate of return for Drax to a level below that of monopolies regulated by Ofgem. We have halved the subsidies provided to Drax that were in every single deal from the Conservative party, year after year, saving £170 million each year of the agreement. We have introduced a windfall tax with 30% and 60% rates to be clawed back should Drax have excess profits. We are delivering on energy security and on tougher sustainability requirements, but at the heart of the deal is better value for money for the hard-working people of this country.