Oral Answers to Questions

Nusrat Ghani Excerpts

Tuesday 17th January 2023 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

9. What steps his Department is taking to support the advanced manufacturing sector.

[The Minister for Industry and Investment Security (Ms Nusrat Ghani)]

The Government support advanced manufacturing through programmes in strategically important manufacturing sectors such as aerospace, automotives and life sciences. We have committed nearly £650 million to high-value manufacturing Catapult centres, and £200 million to the Made Smarter programme.

[Mark Pawsey]

Pramac Generac recently acquired Off Grid Energy Ltd, a highly innovative SME based in my constituency which makes high-tech power storage solutions to reduce fuel consumption and carbon emissions. Will the Minister join me in welcoming the high-quality advanced manufacturing jobs that it is providing, and may I invite her to visit Rugby to see the work that it is doing to provide more resilient, sustainable, efficient energy supplies?

[Ms Ghani]

I welcome the invitation, and it would be remiss of me not to wish my hon. Friend a happy birthday for yesterday.

We salute the great work that is being done in this firm and others throughout the country, and welcome the jobs that they provide. This is exactly why the Government’s £1.2 billion investment was set up for high-value manufacturing centres, to help manufacturers to bring advanced technologies such as these to the market. I look forward to visiting my hon. Friend’s constituency.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Not just the advanced manufacturing sector but many sectors throughout the country struggle to recruit staff with the skills that they need. I hope the Minister will support the initiative “Work Hull. Work Happy.” Its aim is to make Hull the co-working capital of the UK by encouraging businesses up and down the country to come and recruit the remote workers that we have in the city, because people should not have to leave the place they love for the job they want.

[Ms Ghani]

There is nothing I could disagree with there. It is absolutely right that we focus on the skilled workforce that so many of our manufacturing sectors are struggling to recruit, and any opportunity to show and share with the skilled workforces, or even help them to “skill up”, is welcome news.

[Mary Glindon (North Tyneside) (Lab)]

10. What recent estimate he has made of the number of households in fuel poverty.

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

25. What recent estimate he has made of the number of households in fuel poverty.

[The Minister for Industry and Investment Security (Ms Nusrat Ghani)]

The latest statistics, published in February 2022, show that 3.2 million households in England were fuel poor in 2020. Updated estimates are due to be published next month. Fuel-poor households can benefit from schemes including the energy company obligation, the local authority delivery scheme and the home upgrade grant, which will help them to improve the energy efficiency of their homes.

[Mary Glindon]

According to the Fuel Poverty Monitor released by National Energy Action today, from next April onwards the number of households in fuel poverty in the UK could reach 8.4 million. What additional targeted support will the Government provide for those on the lowest incomes—particularly those who are not receiving benefits—when the energy price guarantee increases to £3,000 in April?

[Ms Ghani]

The Government are committed to tackling fuel poverty, and I welcome the work of National Energy Action, which published its Fuel Poverty Monitor today to highlight the difficult situation in which many households have found themselves. Just as we provided support during covid, we are providing it now. I believe that the report looked fundamentally at means-tested benefits, pensioners and those with disabilities. The Government have committed £26 billion for 2023-24, including £900 for households on means-tested benefits, £300 for pensioners and £150 for those with disabilities, as well as an extra £1 billion to allow the extension of the household support fund. However, I know that we will continue to do more.

[Mr Speaker]

I think we have got the message.

[Vicky Foxcroft]

Today a group of nearly 100 charities and other organisations, co-ordinated by Scope, wrote to the Chancellor calling for a social energy tariff to help low-income and vulnerable older and disabled households to heat their homes. A survey for Age UK suggests that 24% of over-60s are living in homes that are colder than they would like, rising to 27% for older people with a disability. Will the Minister commit herself to giving serious consideration to targeted support for those groups?

[Ms Ghani]

As I listed earlier—I do not wish to test the patience of the Speaker—we have focused on targeted support, but I also remind the House of the local authority delivery, which is focused on low income households and those homes that need energy efficiency upgrades. They have a grant ability of £787 million to provide the support that is needed. That is on top of the £26 billion that I mentioned earlier for 2023-24.

[Owen Thompson (Midlothian) (SNP)]

11. What plans he has to support energy transition projects in Scotland.

[The Minister for Industry and Investment Security (Ms Nusrat Ghani)]

The Government remain firmly committed to the low carbon industry across the UK, including Scotland. Our landmark North sea transition deal will support the offshore oil and gas sector, including its supply chain, for the delivery of low carbon hydrogen production and carbon capture, usage and storage.

[Owen Thompson]

Former mining communities such as my own in Midlothian contributed so much to the economy through our mining history, but for many years they have been left behind after the pits were closed. New opportunities are now widely available, especially in coalfield communities, so will the Minister commit to a clear road map to fast-track more geothermal energy projects and to use mine water energy to help in production, particularly to help regenerate coalfield communities across the nations of the UK?

[Ms Ghani]

We will continue to provide as much support as we can to ensure we are helping emerging technologies in the renewable sector, but the North sea transition deal will support 40,000 high quality direct and indirect supply chain jobs, and also generate up to £14 billion to £16 billion of investment up to 2030. This is good support and investment that is being provided to these communities.

[David Duguid (Banff and Buchan) (Con)]

Of course we all welcome the ongoing development and implementation of renewable and low carbon sources of energy, not only in Scotland but right across the United Kingdom, and especially in my constituency of Banff and Buchan, including carbon capture and storage, net zero thermal energy and a range of other sources, but could the Minister explain why the awarding of new oil and gas licences and producing our own domestic hydrocarbons is not at all inconsistent with our net zero objectives?

[Ms Ghani]

I think it is only being seen as inconsistent with some of the proposals provided by the Scottish Government. We will be investing £1 billion to support carbon capture and storage in four industrial clusters by 2030. My hon. Friend is absolutely right: for us to have an energy mix, we need oil and gas and we need it here in the UK, because obviously there is less of a carbon footprint if we are not shipping it in.

[Mr Speaker]

I call the Scottish National party spokesperson.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

For a real energy mix we need dispatchable energy such as pumped storage hydro, and in Scotland we have such schemes ready to go, including Coire Glas, Cruachan and Red John, which between them could generate 2.5 GW of power—almost the same as a new power station but at a fraction of the cost. In the BEIS Committee, the Secretary of State told me that he had met representatives of SSE to discuss Coire Glas—a meeting so memorable that SSE does not seem to know anything about it. When are this Government going to get a grip and meet the industry to agree a route to market for pumped storage hydro?

[Ms Ghani]

I think the hon. Member is incorrect. I believe that the Secretary of State did indeed hold that meeting. What I find extraordinary is that the hon. Member will look at the energy mix but exclude nuclear, for example. We need to have everything in our energy mix, and the work that we are doing in the UK has shown that we are going on the right path. Our low carbon electricity sources such as solar, wind, and hydrogen, alongside nuclear, generated over 50% of the UK’s energy last year in February, May, October, November, and December, I believe, so we do have a path forward.

[Alan Brown]

The reality about nuclear is that there is not one successful evolutionary power reactor—EPR—project in the world. Hinckley is a disaster and Sizewell C will not happen in time, if it happens at all. On the energy mix, the UK Government’s inaction has blocked pumped storage hydro, onshore wind was blocked for years in Scotland and we have had the rug pulled from under the feet of the Peterhead carbon capture project three times now. When will this Government finally support and give the go-ahead for the Acorn cluster, which is vital for reducing emissions in Scotland and the UK? Is not this cap-in-hand approach proof that Scotland has energy but not the power?

[Mr Speaker]

Order. The Minister must let the hon. Gentleman finish before she goes to the Dispatch Box. I cannot have both of you on your feet at the same time.

[Ms Ghani]

I am sorry, Mr Speaker. I was not sure if there was one question there or just a lot.

[Mr Speaker]

Order. I think I will decide that.

[Ms Ghani]

Forgive me, Mr Speaker. Just to clarify, the Secretary of State did meet that individual at COP. Within the hon. Member’s few sentences, I will address the issue of Acorn, which was a sensible point. The promise of Government is to progress carbon capture, usage and storage at pace, and Acorn submitted a bid into the track 1 sequencing process, forming the reserve cluster. Should either of the track 1 clusters not be able to deliver, we would call on the Scottish cluster instead.

[Mohammad Yasin (Bedford) (Lab)]

13. What assessment he has made of the adequacy of the energy bills support scheme alternative funding.

--- Later in debate ---

[Selaine Saxby (North Devon) (Con)]

14. When he plans to make an announcement on the floating offshore wind manufacturing investment scheme.

[The Minister for Industry and Investment Security (Ms Nusrat Ghani)]

BEIS is currently processing the information it was provided through the request for information process that ran over the summer, in which there was significant interest. We will set out the next steps on the floating offshore wind manufacturing investment scheme in due course.

[Selaine Saxby]

I thank the BEIS team for attending last week’s reception held by the all-party parliamentary group on the Celtic sea. As they heard at the reception, sustained investment is needed in a number of ports across the region to ensure that we harness the full opportunity of floating offshore wind in the Celtic sea and meet the ambition of 50 GW of flow by 2050. Can my hon. Friend confirm that steps are being taken to invest in ports across the region?

[Ms Ghani]

My hon. Friend was welcome to host BEIS colleagues at her event. BEIS recognises the potential for floating offshore wind in the Celtic sea region. Following the request for information, BEIS is continuing to engage with ports on their development plans to understand their investment needs in more detail. I know she has liaised and corresponded with the Energy Minister, and a letter is winging its way to her.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Although the Government are rightly considering the advantages that can be gained from rural and offshore renewable energy, will the Minister also consider the possibility of using tidal power, and particularly tidal turbines? The United Kingdom has the biggest tidal range on Earth after Canada, and we are using nearly none of it. Is it not time to consider this innovative technology? Will she meet me and those seeking to get tidal energy out of Morecambe bay?

[Ms Ghani]

I believe that the largest number of contract for difference licences were awarded to tidal, and the Energy Minister will be more than happy to meet the hon. Gentleman.

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[Stephen Kinnock (Aberavon) (Lab)]

The Secretary of State is well known for his airbrushing skills, but he cannot airbrush the fact that, of the top 10 economies in the world, the UK is the only one with a declining steel industry. When is he going to sit down with Tata Steel and the other businesses to do a deal on green steel for the future of our workforce?

[The Minister for Industry and Investment Security (Ms Nusrat Ghani)]

We are working with the whole steel industry across the UK and regularly hold meetings. I do not think the question was posed in an appropriate way, because we are doing a huge amount of work to support the steel sector, including providing £800 million since 2013. We have provided a package of relief support for non-domestic users throughout this winter worth £18 billion. The report published by the BEIS Committee, which I previously sat on, also mentioned that any earlier bail-out for Liberty Steel, in particular, would not have been good value for taxpayers’ money.

--- Later in debate ---

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

The UK imports all medical radioisotopes used for treatment and diagnosis, mostly from European facilities that are due to close down by 2030. What assessment has the Secretary of State made of the need to ensure security of supply of nuclear medicines?

[Ms Ghani]

As the life sciences Minister I can say that we are working extensively with the industry to ensure that we have good equipment in our supply chains. I am not particularly aware of this situation, but I am happy to have a meeting or write to the right hon. Lady to see what exactly the problem is.

[James Sunderland (Bracknell) (Con)]

T8. The UK is a hub of privately driven research and development. I am proud that my Bracknell constituency is the silicon valley of the Thames valley and the home of fantastic companies such as 3M, Dell, Honda and Panasonic, which is also great for local employment. What steps are being taken to encourage more international R&D investment into the UK?