Energy Intensive Industries

Neil Parish Excerpts

Wednesday 4th December 2013 Westminster Hall

[Paul Farrelly]

I thank my hon. Friend for that intervention. I know the INEOS plant on Merseyside—it is an ex-ICI plant—very well, because two of my cousins from the extended Irish side of my family work there. Like all Members, I have had representations from INEOS, which is a major employer in my hon. Friend’s constituency. The company made exactly the same point—that 70% of its costs go on energy, so if we are substantially out of line with our competitors in Europe and the world beyond, it suffers a considerable disadvantage.

[Neil Parish (Tiverton and Honiton) (Con)]

I thank the hon. Gentleman for securing the debate. Germany has methods of subsidising high energy use-based steel, because it has high green taxes. The trouble is that the unforeseen consequences of our green taxes—they were, in all fairness, started by the previous Government—are mounting for industry. If we are to carry on with green taxes on bills, we must find a way to help these highly energy intensive industries; otherwise, we will export our business abroad.

[Paul Farrelly]

I thank the hon. Gentleman for what is the third intervention. I will come to the comparative prices in Germany, which has long had a strong green movement. In the past, it has also had the benefit of wide-ranging, simple schemes, not least in respect of coal, something that affected my constituency years ago. One of the things I want to come to later is the complexity under which our industry has to suffer.

--- Later in debate ---

[David Mowat]

I thank the hon. Gentleman for that information; whichever party brought the amendment forward, I am clean. I will not be supporting it, and I suspect that many of the people in the room are sympathetic to my petition. All I would say is that it is the official position of the Labour party that the remaining coal-fired stations in our country should be decommissioned on an accelerated basis, with all the costs that will incur for the industries we have been talking about. We should reflect on our debate this morning with regard to the debate this afternoon.

The decarbonisation target has a cost impact, as well. Nothing in the world is free. We have heard about PV tariffs; I went through the Division Lobby when the Government were reducing the subsidy for solar from six times grid parity to four times grid parity—a reasonable measure, but again, the Labour party divided on that. It is important to understand the impact of what we are voting for on fuel poverty and on the 900,000 jobs in these industries that we all care so much about.

[Neil Parish]

We have been sleepwalking into this situation for several years now. We have been driving energy prices up and up, and not only industry but domestic customers are paying for that. It is time we got overall energy prices down, not just for high users, but for everyone.

[David Mowat]

I thank my hon. Friend for that intervention. To wrap up, in terms of our position on Europe, I believe we need to cut carbon. It is important, and I am not a sceptic on that stuff. My difficulty is with the idea that we have to cut carbon unilaterally. We are responsible for 1.5% of the world’s carbon emissions. We produce two thirds as much carbon as Germany per capita, and per unit of GDP. That is similar to Holland and lower than the average in the EU, yet we are pushing ahead with unilateral actions that come with a severe price. We need to think hard about that when we negotiate our way through this maze.

The points that have been made about complexity are absolutely spot on. Myriad complexities have built up in the attempt to keep a diverse set of technologies available, and those complexities are really mindboggling.

I have put points to Labour Members about solar, about their party’s position on the decarbonisation target and about the opportunity this afternoon to vote according to their feelings on an amendment that would increase electricity prices further in the UK. I will also make a few points to the Minister, which he may wish to address. We should look at our tendency to act unilaterally, hemmed in as we are by the Climate Change Act and the fourth carbon budget and all that goes with it. I ask that we get away from EU directives on renewables and the rest. Yes, Germany is big on renewables, but it has far higher carbon emission levels than we do because it burns so much coal, and because it is building 10 more unabated coal-fired stations.

--- Later in debate ---

[Neil Parish (Tiverton and Honiton) (Con)]

It is a pleasure to speak in this debate, and I thank the hon. Member for Newcastle-under-Lyme (Paul Farrelly)—

[John Robertson (in the Chair)]

Order. I called the wrong speaker. Did you stand up, Mr Parish?

[Neil Parish]

Yes. As you called me, Mr Robertson, I thought I would hold forth.

[John Robertson (in the Chair)]

I am sorry. I call Mark Pawsey.