Nicholas Dakin
Main Page: Nicholas Dakin (Labour - Scunthorpe)
Simon Hughes
No. As my hon. Friend the Member for West Aberdeenshire and Kincardine (Sir Robert Smith) knows, we have that capacity and I have argued consistently that it is possible to have clean coal and to ensure that we use the modern technologies through carbon capture and storage to achieve it. If we have a proper energy grid across Europe, we can capitalise on the solar power from the south and the hydroelectric power from elsewhere. It is entirely possible to do that—although that is, of course, a matter of dispute.
Nic Dakin (Scunthorpe) (Lab)
The right hon. Gentleman was very clear that there should be no subsidy for nuclear. Does he not feel, as many people do, that the carbon floor price, as it is currently constructed, acts as a subsidy for nuclear?
Simon Hughes
A very lively debate is going on about that point in the context of the European energy policy, which, as we heard the Prime Minister say earlier, will at last be delivered by 2014. We must ensure that we apply the same rules in that context as we do in all others.
When the coalition Government were formed, we set 23 objectives for energy and climate change policy. I hope that Ministers might either now or by the second anniversary put in the Library a report on how far they have gone towards achieving those objectives. Many have already been achieved and Ministers have set out down the road towards achieving the others. We already have £60 million invested in world-class offshore wind conversion in our ports to produce jobs and many people are being trained as apprentices to work on the green deal. We have a green deal energy efficiency initiative for homes across the country and a decision on the green investment bank, the location of which will be announced soon. Let me repeat what I have said publicly in the past: I do not think it should be in London. It should be elsewhere in the United Kingdom so that the benefits can be spread, and I say that as a London Member of Parliament.
We have a legally binding target for a 50% reduction in UK carbon emissions by the mid-2020s. We have the establishment of the low-carbon technology and innovation centres, a 25% improvement in energy efficiency standards for all new buildings, support for green buses, subsidies for the purchase of electric vehicles, a reduction in carbon emissions from central Government buildings of an almost incredible 14% over 12 months and—I pay tribute in particular to my right hon. Friend the Member for Eastleigh (Chris Huhne)—very successful participation in the climate conferences in Cancun and Durban, which has ensured that we are at last on the right road to international agreement and making up for what we did in the past.
Ministers also took difficult decisions after listening to what the public were saying about fuel costs. Fuel duty was cut last April, the automatic fuel duty escalator was scrapped, the planned rise this January was postponed to August and the next planned increase was cancelled. Petrol and diesel are, on average, 10p per litre cheaper than they would have been had the original plans gone ahead. Such decisions are always controversial in the environmental movement and the real world, and fuel prices obviously keep up with other prices, but the Government have responded to meet people’s concerns about their family budgets. The saving for the average motorist will be £144 and the average haulier will be £4,400 better off. Labour raised fuel duty 12 times while in office and planned for six further fuel duty rises after the election. We have done better than that.
I commend what my right hon. Friend the Secretary of State said on taking office about the Government’s plan on solar power. He wants to ensure that many more people benefit so that it can continue to be rolled out as a successful project. Combined heat and power equally has a very important role to play.
In conclusion, may I give the newly led administration in DECC my shopping list? First, will they ensure that we have the skill base to deliver the green economy, which is so important? That needs apprenticeships and good training. Secondly, will they ensure that we have energy efficiency in our schools and public buildings, including converting waste to energy more efficiently? Thirdly, will they incentivise community energy? Fourthly, will they not allow themselves to be distracted by the nuclear power persuaders? And finally, will they support the biodiesel industry in the future?
Nic Dakin (Scunthorpe) (Lab)
It is a pleasure to follow the hon. Member for Sittingbourne and Sheppey (Gordon Henderson), who spoke much sense in his contribution, particularly on the opportunities provided by the renewables sector, both onshore and offshore wind, for ensuring energy security, which is a key issue for businesses and individuals across this country, and for creating jobs, because the motion is about jobs and growth in a low-carbon economy. This is a great opportunity for a renaissance, a second industrial revolution in green jobs to drive the UK forward into this century and to create jobs and growth.
I particularly value the opportunities associated with renewable energy because close to my constituency, on the south Humber bank, there is a huge opportunity to develop a big area of land for the manufacture and deployment of renewables technology. It is a great opportunity, along with the potential for development on the north bank of the Humber, which my hon. Friend the Member for Kingston upon Hull North (Diana Johnson) outlined in relation to Siemens’s interest there. Together with the Able UK development on the south bank, that represents a site of European significance for driving the UK’s renewables industry forward. As has already been said in the debate, we need the opportunity not only of site, but of skills. We must ensure that the proper skills development is in place to take advantage of that opportunity.
I am concerned that UK taxpayers and energy bill payers should not end up resourcing jobs outside the UK. It is absolutely crucial that we ensure that the supply chain is developed to provide jobs within the UK’s renewables sector. Otherwise, we will find a huge missed opportunity. I will be interested to hear what the Minister has to say about how the Exchequer, the Department of Energy and Climate Change and the Department for Business, Innovation and Skills are working together to ensure that appropriate incentives are in place to develop the renewables industry supply chain in the UK so that we get maximum benefit. We also need to ensure that the penalties that are in place for energy intensive-industries are properly addressed. Industries such as the steel industry, which is crucial to not only the old industries of the past, but the new renewables industries, have made huge strides in becoming energy efficient.
Ian Lavery
My hon. Friend mentioned energy-intensive industries. Is he aware that, due to the carbon taxes that the Government are imposing on energy-intensive industries, Rio Tinto Alcan will close its plant in my constituency sometime this week, which will affect 600 jobs directly and 3,000 in the supply chain?
Nic Dakin
My hon. Friend makes a good point. We have already heard that 400 jobs are going in Sittingbourne and Sheppey, and now more jobs are going in his constituency. That is of great concern and underlines even more why we need to ensure that what happens in the renewables industry reclaims our industrial future in a way that we are at risk of not doing. The Chancellor came forward in the autumn statement with a package relating to energy-intensive industries, but it is still unclear to those industries what the detail of the package means. It is time that businesses on the ground had some clarity on what the package will mean. Otherwise, we will find more closures by companies such as Rio Tinto Alcan. Time is of the essence. We cannot afford to dilly-dally on such matters.
During the debate many hon. Members have drawn attention to the shambles of the solar feed-in tariff saga. I hope that everyone in the House and outside has learned from the mistakes so that we can ensure that in other significant areas, such as wind and other renewables, we do not make similar errors and create missed opportunities. I have said everything I wished to say, and I thank you, Mr Deputy Speaker, for allowing me to contribute.