Onshore Oil and Gas

Debate between Neil Parish and David Mowat

Tuesday 26th January 2016 Westminster Hall

[David Mowat]

I think the steel industry unions are right, as are the chemicals and aluminium industry unions. The US, unlike the UK, still has an aluminium industry, principally because energy prices there allow it to happen.

[Neil Parish]

The US has reduced its gas price hugely to attract the industry. When we extract shale gas, will we reduce our gas price or will we keep it the same? That is an interesting point because, if we are to encourage the industry properly I suspect we will have to reduce our gas price.

[David Mowat]

Gas prices are set by the market. We have a spot price for gas which is set in the European gas market. People have made the point that the European price will not decline in the same way as in the US. That may be true, but I make the point again that they could have said that about oil and shale oil. We have seen what has happened there. Clearly, the more there is of something, all other things being equal, the more the price falls. Fuel poverty is not the subject of this debate, but many people are living in fuel poverty in our country and we should all be keen to have lower energy prices.

Before I close, I want to pick up on the pragmatic and responsible points made by the Scottish National party. All of us as Members of Parliament have a leadership role in our communities. We heard my hon. Friend the Member for Thirsk and Malton exercising his leadership role. Of course he faces pressures in terms of the environment of the Yorkshire dales, but he also understands that we need jobs in our country and we need to create wealth. Importing gas at scale from Qatar, Russia and Norway takes jobs away from our country and has an impact on industries in Cleveland and so on. That is the exercise of leadership. “Leadership” is an important word, and all of us in this place need to exercise leadership. Saying that we are going to have a moratorium on this activity because that is responsible and pragmatic when the reality is that this industry has been going for 10 years and can go to Pennsylvania, like my hon. Friend did, and have a look—it can do all of that—is what I would describe as negative leadership, and it is populist politics because there is a body of people out there who are receptive to that; and that is not what any of us were elected to this place to do.

Energy Intensive Industries

Debate between Neil Parish and David Mowat

Wednesday 4th December 2013 Westminster Hall

[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.

Financial Services Bill

Debate between Neil Parish and David Mowat

Monday 23rd April 2012 Commons Chamber

[Neil Parish]

That is absolutely right. Many of the people taking out these loans earn less than £15,500 a year and therefore cannot afford the loan in the first place. I have sympathy for their position, but are we really helping them by allowing them to get into the hands of loan sharks, which results in their having to pay back huge amounts of money that they simply do not have?

I have made the point before that if financial companies and loan sharks are arguing that they need to charge huge amounts of interest because people are such a high security risk, they should not be lending them the money in the first place. Let us remember the old adage about finance: these companies will lend us an umbrella when the sun is shining, but they will take it away again as soon as it starts to rain. In the circumstances that we are describing, they should never have made the loans in the first place. Citizens Advice and financial advisers often tell us about people who have got themselves into huge amounts of debt, perhaps through no fault of their own.

It needs to be made absolutely clear to people what to expect. I am not a great believer in huge amounts of regulation, but I do believe that the consumer should be able to see exactly what they are signing up to at the outset, and be made fully aware of the consequences of their actions. They often do not understand the terms if they are hidden in the small print or expressed as complicated percentages, but if they were told, “You can borrow £100, but if you don’t pay it back on time, you could end up paying £2,000 back”, it might make them sit up and think about exactly what they were borrowing. They might then choose not to do it, or to go to someone who could lend them the money at a better rate.

The Government are doing a great deal to increase the use of credit unions, and we need to do much more work on that. Perhaps we should look into ways of financing them. I have a very successful one in my constituency, and we need to build on that. Only a small percentage of people here borrow money from credit unions, unlike in Ireland, where almost 50% of people have access to such loans.

[David Mowat (Warrington South) (Con)]

My hon. Friend mentioned Wonga, and he was right to suggest that 4,000% is an absurd rate of interest. Does he have a view on the rate at which interest should be capped for a fortnight’s payday loan?

[Neil Parish]

Yes, I do. Many people in the banking sector would probably disagree, but I believe that anything over 50% is far too high. It is obscene and immoral to allow companies to go on charging vast amounts of interest—I do not care who they are—and that is why we have to take action. I am looking to the Government to do so, not only through legislation but through stating that such companies should clearly set out their rates of interest and the consequences of non-repayment, so that our constituents can take advantage of credit that is competitive and that will not ruin them.

Environmental Protection and Green Growth

Debate between Neil Parish and David Mowat

Wednesday 26th October 2011 Commons Chamber

[David Mowat (Warrington South) (Con)]

I should like to associate myself with the comment of my hon. Friend the Member for St Ives (Andrew George) that this should not really be a political subject, but it does tend to become one. I also want to associate myself with the Minister’s comment that the Opposition had shown chutzpah by holding a debate on green leadership and growth. Given that they have decided to do so, however, it is reasonable to examine what has happened over the past decade and a half, and what kind of legacy Ministers have taken over in relation to green issues.

I want to be fair to the Opposition. They have used the word “leadership” a number of times in the debate, and I have been looking for examples of Labour showing leadership in the past 15 years. It has shown it in one area: that of legislation. No one could have passed more legislation on this subject than Labour. The Climate Change Act 2008 places on us a requirement to reduce the total of our carbon emissions by 80% by 2050. That could be broken up in a number of ways, involving, for example, 25 new nuclear power stations—I do not think that the hon. Member for Brighton, Pavilion (Caroline Lucas) would agree with that—or 40,000 wind turbines. It is a hugely ambitious target. Equally ambitious was the way in which the Labour Government signed up to the EU 20-20-20 directive in 2009.

That was where Labour showed leadership, but, having done that, what did they achieve? Where had they got to by 2010? Labour Members need to understand that we are 25th out of 27 in the EU in terms of renewables, as I pointed out earlier. It is possible that that statistic could be subject to challenge, however, because it was based on provisional figures. It puts us slightly ahead of Luxembourg, but it is possible that we are not. Perhaps we are in fact 26th out of 27. That is the legacy from the last Government that we have had to pick up and run with. That is the starting point.

Even less impressive were the numbers that came out, right at the end of 2010, on the total amount of energy produced in this country from non-fossil fuel sources, by which I mean renewables, hydro and nuclear. It fell by 10%. That was the legacy we were left with. Chutzpah is not even half of it. We now have to pick up from that position.

I do not agree with all aspects of the energy policy of my Front-Bench team. I would like us to go more quickly down the nuclear road, but I agree that at least we have a green policy that can be looked at and criticised and that we can try to improve. I do not think that we had that previously. The green deal is massively important. The Climate Change Act 2008 implies a reduction of our total emissions by 2050—either with or without the economic growth that the hon. Member for Brighton, Pavilion does not want us to have—of around 40% to 50%. The green deal provides the only reasonable way of achieving that. The green investment bank and the energy market changes that we are going to make are hugely important.

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

My hon. Friend is making some excellent points. The green investment bank, to the tune of nearly £3 billion, is a great step forward. I also think that the green deal will enable those who have not got their homes insulated with solid wall insulation to get that done under the new scheme. That will help many more people to insulate their homes, which will be good not only for the environment but for the families concerned.

[David Mowat]

I agree.

I did not mention the carbon floor price. Having sat through the debate, it remains unclear to me whether Labour Members support it or not.

All these matters are important, and I am proud that the Government whom I support are trying to get us higher up the league table from 25th or 26th out of 27 within the EU. When the Minister sums up, will he tell us where we hope to get to by the end of this Parliament? If we start at 25th, are we heading for 20th, 15th, 10th, fifth or what? It would be interesting to hear, as we have an awfully long way to go.