Great British Energy Bill

Perran Moon Excerpts

2nd reading
Thursday 5th September 2024 Commons Chamber

[Perran Moon (Camborne and Redruth) (Lab)]

Thank you, Madam Deputy Speaker, for the opportunity to make my maiden speech during a debate that is so relevant to my own wonderful constituency of Camborne, Redruth and Hayle, in the heart of Cornwall. I come to this place—and I am disappointed that the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) is not present to hear me say this—with 30 years of business experience in the automotive sector and, latterly, in the renewable electricity sector. I thank all those who have given their maiden speeches today; they were all truly heartfelt, wonderful speeches. My own inspiration for being here comes from my three children, my daughter and my two sons, who join us in the Public Gallery today.

I want first to pay tribute to my predecessor George Eustice for his work on animal welfare as Secretary of State for Environment, Food and Rural Affairs, as well as his support for local projects in Cornwall such as Kresen Kernow, the Cornish archive, and—despite our profound differences on our relationship with the EU—the honourable way in which he was prepared to criticise trade arrangements made by the Conservative party.

It is an unparalleled privilege to represent one’s home constituency, and the ties that bind Cornish men and women to our homeland are woven into every sinew of our being. The constituency of Camborne, Redruth and Hayle is a truly remarkable place: the place where I was born and grew up and where I live. To understand Camborne, Redruth and Hayle, I respectfully ask you, Madam Deputy Speaker, to transport yourself in your mind to the summit of a single rocky hill, smack bang in the middle of the constituency. This rocky hill is called Carn Brea, which is, in fact, Cornish for “rocky hill”. At the summit of Carn Brea sits the Basset monument, looking down from 750 feet across the constituency. The monument was funded by public subscription in 1836 after Basset himself petitioned the other place against slavery in 1828.

To the north of Carn Brea, just 4 miles away, the Celtic sea sparkles in the sunlight and laps the beautiful beaches of Gwithian, Portreath, Porthtowan, St Agnes and Perranporth—the Celtic sea, which offers the prospect of vast quantities of electricity generated from offshore wind, an opportunity that I dearly hope this Government will grasp. Looking to the west from Carn Brea we see the town of Camborne, pronounced “Kammbronn” in Cornish, meaning “crooked hill”. It is a town that, along with its near neighbour Redruth, is synonymous with our tin mining heritage. The two towns were once among the wealthiest in Britain, helping to drive the economy for more than four centuries. Nestled in front of Camborne, a large flag of St Piran flutters in the breeze. This flag sits at the top of the South Crofty tin mine. There can be no finer physical symbol of the potential for the return of the Cornish economic powerhouse than South Crofty—the last tin mine to close, in 1998.

The economic winds have dramatically changed since then, and tin, which is used in the production of virtually every electrical device, is now also being used in the production of solar panels and, along with lithium, forms the cornerstone of our critical mineral industry. We import tin from as far afield as China and Australia, with all the damaging environmental impacts that come with such imports, yet in Camborne and Redruth we sit on the third highest-grade tin deposits in the world, and there is plenty of it. Our sense of pride in our mining heritage, which was mentioned by my hon. Friend the Member for Truro and Falmouth (Jayne Kirkham), and the possibility of our tin mining renaissance are a constant source of hope and optimism for an area that has been damned by industrial decline for decades.

But back to the summit of Carn Brea and Basset’s monument. Further over to the west, on the horizon behind Camborne, is Hayle, the third largest town in the constituency. Although the official title of my constituency is Camborne and Redruth, woe betide me if I do not mention Hayle in the same breath. Hayle is a vital natural seaport, ready to serve the new opportunities in the Celtic sea, and it includes a very large estuary. Indeed, the Cornish word for estuary is hayl. I have strong familial ties with the town, where my great-uncles, the Slade family, once ran a steel engineering business on South Quay.

Let us look directly south from Carn Brea now, to the gentle rolling hills leading down through the beautiful Cornish granite villages of Stithians, Mawnan Smith and Constantine, and then on to the two stunning subtropical gardens of Glendurgan and Trebah, which, in turn, lead down to the Helford river, from where thousands of American troops set off on D-day to free Europe from fascism.

To the east of Carn Brea lies Redruth, the Cornish meaning of which is “red ford”, the Cornish word for “red” being “ruth” and the word for “ford” being “red”—obviously! Redruth is rapidly becoming a cultural hub, and I strongly recommend visits to Krowji creative hub, Kresen Kernow—the aforementioned archive centre—the Buttermarket, and the Ladder arts and culture hub. Our former prosperity is evident throughout the centre of Redruth, with imposing granite buildings that are awakening with new life after a deep slumber.

Further to the east, beyond Redruth, can be found the villages of Carharrack and St Day, which served as a hub for the one of the world’s wealthiest copper mining districts from the 16th century to the 1830s. Just beyond them is United Downs, where Cornish Lithium, Geothermal Engineering and ground source heat pump companies are based. These businesses have the potential to play key roles in Britain’s economic transformation. We have tin, lithium, geothermal and ground source heat, but we are also blessed with the opportunities of offshore wind in the Celtic sea, onshore wind, solar and tidal. There are very few places in the UK in which renewable energy and critical mineral opportunities are so abundant.

The renewable energy opportunities are not the only factors that make this land so distinct. Let me quickly give three other examples. First, 10 years ago Cornwall was granted national minority status under the European framework convention for the protection of national minorities. Our language, our culture and our heritage, as well as our economic potential, mark us out on this island. Secondly, the positive reaction received by all six Cornish MPs on both sides of the House for taking our oaths in Cornish is telling. Almost half our children and young people consider themselves first and foremost Cornish. Finally, on Saturday my brother Dickon will be made a bard of the Gorsedh, the highest honour that can be bestowed on a Cornish man or woman. This is an honour awarded to people who have given exceptional service to Cornwall by a manifestation of the Celtic spirit or by service to Cornwall.

It is these cultural differences that mark us out. It has been clear on the doorstep over the past two years that there is a strong desire for a non-mayoral model of governance arrangement with Westminster. My hope and my focus in coming weeks and months will be to persuade the Government that the most appropriate devolution arrangement for Cornwall is an Assembly similar to that of our Celtic cousins in Wales.

In terms of economic development, culture and governance, the time has come to throw open the cage door and unleash the Cornish Celtic tiger. For my part, I will put all my energies into representing the people of Camborne, Redruth and Hayle to the best of my abilities. To do so will be the honour of my life. Meur ras—thank you.

[Several hon. Members rose—]

Great British Energy Bill (First sitting)

Perran Moon Excerpts

Committee stage
Tuesday 8th October 2024 Public Bill Committees

[Wera Hobhouse]

Q I have one last question about the timeframes, which are very vague. The Bill states:

“The Secretary of State must prepare a statement of strategic priorities for Great British Energy.”

Do you have any idea of when we can expect that statement to be laid before Parliament?

Juergen Maier: I am not sure of the exact timings. Maybe when you get evidence from the Minister he will be able to put a time on that.

[Perran Moon (Camborne and Redruth) (Lab)]

Q Mr Maier, you have talked about how local communities will benefit from community energy; you mentioned floating offshore wind off the east coast of the United Kingdom. Down in Cornwall, we are very close to the Celtic sea opportunity, which is between us and Wales. Could you elaborate on the benefits, particularly the social benefits, that may come from the Celtic sea development in an area like Cornwall, which is one of the most deprived in the UK?

Juergen Maier: Indeed. The earlier question was pointed at the north-east and Aberdeen, hence my response, but you are right. As a matter of fact, the two key areas where floating offshore wind will be developed are in the north-east and in the Celtic sea. From a logistics point of view, you could not put them further apart, so it is not exactly ideal—

[The Chair]

Order. We are moving outside the scope of the Bill.

Juergen Maier: Anyway, the answer to your question is the same answer that I gave for Aberdeen. There will be an HQ, a lot of the activities, project management, knowledge and engineering, but obviously when it gets to installation and port-type infrastructure work, there will be significant opportunity in Cornwall and anywhere serving the Celtic sea.

--- Later in debate ---

[Andrew Pakes]

Q Thank you all for coming in. Could you tell us a bit more about how GB Energy might benefit from or support the ecosystem of innovation and research we have? We know the Bill is limited; we have had that discussion. I am interested in your thoughts on how what is in the Bill might stimulate the innovation and research that the three of you represent.

Marc Hedin: I think we can reflect a little bit on the role of Great British Energy here. One of the areas for innovation is around investments in less mature technologies. It is one of the roles that was highlighted in the founding statement, published in July earlier this year. There is a role for that, but I would argue that there is also a possibility for dedicated schemes to deploy capital in less mature technologies. For instance, with regards to long-duration energy storage, we had a consultation earlier this year, generally welcomed by the industry, which looked into implementing a sort of capital flow regime to promote investment into long-duration energy storage. There is a role for GB Energy here, but there are also alternative routes that are potentially less capital-intensive.

The second aspect, touched on earlier, is around supply chain. There is huge scope here for Great British Energy, where, out of all its potential roles, it may provide the best value for money. In GB, the domestic supply chain has not generally benefited that much from the high level of renewable build-out that we have seen in the past decade or so. There is a role for providing visibility to the supply chain, and implementing innovation into the supply chain more generally in the energy sector.

Ravi Gurumurthy: If you think about different barriers to innovation, I think three stand out. One is co-ordination challenges; second is the provision of certain public goods, such as ports infrastructure, which are critical to investment; and third is risk appetite. I think GB Energy can potentially address all those in different ways.

On the risk side, co-investing—particularly in the novel technologies that Marc mentioned—can accelerate that innovation. Secondly, on things such as ports infrastructure, having a body that is trying to do whatever it takes to solve some of the co-ordination issues and the dependencies on public inputs can drive that innovation.

One other thing I would mention is that Government have a role, and have increasingly played a more co-ordinated role, in driving directed R&D through the net zero panel. I think Government can be better at that, if they are more informed, and one of the things I think GB Energy will do is to give a stronger insight into the constraints and opportunities in the market, and therefore potentially inform Government’s ability to drive innovation in a smarter way.

Shaun Spiers: I obviously agree with all that. The really difficult thing about clean power by 2030 is the last 10% or 20%. It is clear that the market on its own, at the moment, will not provide that, and just adding renewables and grid will not provide it. What GB Energy provides is the potential to invest in things like pump hydropower, compressed air and new technologies that we are going to need. That is going to be essential to achieving the 2030 power decarbonisation.

[Perran Moon]

Q My question is primarily to the Green Alliance. Shaun, what difference will GB Energy make to your analysis of the UK’s progress to date to decarbonise power generation?

Shaun Spiers: It is really quite hard to see how the UK will be able to decarbonise power generation, certainly by 2030. By 2035 was really ambitious and by 2030 is even more ambitious, so you do need a vehicle of this sort to crowd in investment and to give a really clear sense of direction to overseas investors and other investors who are looking for places to put their money. This gives a huge impetus to that mission. It is easy to set targets, but unless you have a vehicle to deliver them, they are going to be impossible to achieve. GB Energy is the key vehicle. I would say it is essential.

Ravi Gurumurthy: Nesta and Boehringer co-authored a report that I was part of, which included some of the time and cost savings that we think GB Energy can deliver—for instance, the role of GB Energy as what we call the pre-developer, where the Crown Estate takes on this role of basically preparing the sites, doing the planning consents, doing the grid connection and doing the environmental surveys before having potentially a single auction process rather than the current dual auction process. We thought that would reduce the time of getting offshore wind built by two to four years. We also produced some cost savings from doing that, including some reduction in rents. We think this institution can deliver genuine improvements in terms of time and cost.

I would not just stop at the vantage point of 2030, because although I think this will make some impact on 2030, remember that we have to double electricity capacity in this country if we are going to electrify heating and transport, so the 10 years beyond 2030 are just as important. I think GB Energy is an institution for the long term, not just for the next five years.

[The Chair]

I am being reminded again that we should focus on what is in the Bill; I know we can extrapolate what might happen. Next we go to Olivia Blake.

--- Later in debate ---

[Stephen Flynn]

Q Again, you have spoken very eloquently about the opportunities that may or may not exist under GB Energy, particularly with regard to the risk appetite that needs to be there. You have perhaps delved into some areas in relation to planning and Crown Estate; where they sit within the devolved competency of the Scottish Parliament. I will not ask you to comment on that because that would be deeply unfair, but what you and others have done is delve into the strategic priorities and what you think they could be. Do you think it is helpful or unhelpful that at this juncture we do not have a full understanding of what those strategic priorities are, given that the Bill is going through in its current form?

Shaun Spiers: I think the more that can be done to set out the strategic priorities, the better. I do not think it necessarily needs to be in the Bill. The explanatory statement and the introductions and so on I think do give a reasonably good steer on what the strategic priorities are, but obviously this body is being set up at pace. The more clarity there is on what it is going to do, the better. I would not set unreasonable expectations of a body that is being set up really quickly, with a pretty clear short-term aim of 2030 power decarbonisation and of supporting that. However, in the longer term the priorities clearly need to be set out.

Ravi Gurumurthy: The NESO will be producing its plan in October, and you have then got the next carbon budget in February, so the actual pathway to 2030 and to 2050 will start to become even clearer in the coming months. It will need to be flexible, however. There will be technologies which emerge that shift our sense of what to focus on. You need priorities, but you do need quite a lot of flexibility in this system.

Marc Hedin: I made the point, I think, at the very beginning that we need a very flexible scope because there will be challenges to the energy transition. We need room to adapt. If this vehicle is to facilitate the energy transition, we need that scope to be relatively broad. I did mention a couple of safeguards, more like accountability, and I think that is still reasonable to ask. However, in terms of strategic priorities, I think the scope is broad enough and makes sense.

[Perran Moon]

Q As a proud Cornishman, I am very excited about the reopening of our tin mines and our lithium mines. I was very pleased to hear you mention critical minerals. Can you elaborate a little on how you think GB Energy can support the UK’s domestic critical minerals industry?

Shaun Spiers: By investing in it. It is more a question of the recycling, because there is a big recycling industry elsewhere. When the UK was the pioneer in offshore wind, it was easy to import critical raw materials and then not bother about reusing them and just import more. As the Foreign Secretary was talking about in his speech at Kew, there are now real concerns about the shortage of critical raw materials across the world. Because they are needed for so many technologies, and so many technologies that are essential to the transition, we need a plan for the transition that includes recycling plants. Lithium mining in Cornwall is great, but we also need not be exporting our critical raw materials to be repurposed elsewhere, and then reimporting the repurposed ones. There are 37 recycling plants in the EU, while in China there were 61 waste lithium battery recycling and processing companies two years ago, and it is a growing industry. It has not grown in the UK, it has not had attention, and I think that if GB Energy is committed to long-term energy security, which it is, then it could play a part in getting that industry going in the UK.

[The Chair]

We are straying quite far from the scope of the Bill. It is an interesting discussion, and it could carry on offline afterwards, but it is not within the scope of this Bill. Are there any more questions? If there are no further questions from Committee members, I thank the witnesses for their evidence.

Examination of Witnesses

Dan McGrail and Adam Berman gave evidence.

--- Later in debate ---

[Catherine Fookes]

Q It is good to see you both. You were not here for the earlier sessions, but there were a lot of questions about whether there is enough detail in the Bill. Before I was an MP, I used to be the CEO of a charity; if the objects of that charity had gone into an incredible amount of detail telling me exactly what to do, it would have been very difficult 10 years down the line, when I joined the charity, to pivot and do what we did. I think you are absolutely right: we are hearing from every single witness that the Bill needs to be general enough to allow the business plan to be developed by the experts running the company. You are chiming with everyone else, which is interesting and good.

My question is about tidal power. I represent a Welsh constituency, Monmouthshire. We have the River Severn in the south of the constituency, which is a tidal river, and we have the Celtic sea. What opportunities will the Bill give to generate more tidal power?

Dan McGrail: The Bill allows space for GB Energy to take quite an activist role in the sector. I am aware of tidal power companies that are already very keen to engage with GB Energy on specific proposals. One thing about tidal power is that we have seen the success of many projects through the CfD auctions. We need to see them come to investment decisions. The more we can see a state actor enabling companies to take decisions, the more it will help to scale up the industry and then the technologies. From the technologies, we can hopefully deliver the kind of supply chain growth and jobs in local communities to which we all aspire.

[Perran Moon]

Q Clause 5(1) requires the Secretary of State to

“prepare a statement of strategic priorities”.

I have been listening carefully to the priorities on skills and innovation from your perspective. Let me ask you both: if you were Secretary of State, what would be your key strategic priorities be for the Bill?

Adam Berman: The first is public value, which goes beyond the ability of GB Energy to create profits and return them to energy bills or whatever mechanism it might come up with. That is not to say that that is not important, but if this is new money—a significant amount of new capital—being made available by the Treasury, it is about how we, as a society and as an economy, can get the most out of those investments. So I would say public value, which is about not just financial returns but broader public benefits.

Secondly, it is about spreading economic activity and about how that links into the industrial strategy. That might be for the supply chain and also for GB Energy, but we should think not just about particular technologies but about particular regions.

A third priority would be the delivery of the UK’s legal objectives—its legally binding climate commitments.

A fourth priority would be the delivery of the National Energy System Operator’s priorities, which links to the strategic spatial energy plan that we have already been talking about, and ensuring that it helps to foster a workable decarbonised power sector. For example, we could see solutions such as GB Energy putting investment into wind or solar in areas with higher constraint costs or lower population centres with higher land use costs, which are not as attractive to private investors at the moment, but which with GB Energy’s lower cost of capital may well still be a profitable enterprise. It is about how we can have a win-win with NESO’s objectives.

Finally, impact on investment cannot be ignored. I recognise that it is not the Government’s intention at all that there be an impact on private sector investment, but we need to ensure, as a founding principle, that there is not a risk that any GB Energy investment could deter or crowd out private sector investment.

Dan McGrail: I would add one thing to that very good summary. There are a number of new institutions being set up at the same time—NESO, mission control, GB Energy. There are also a number of big initiatives such as strategic spatial energy plans and centralised network planning. It would be very helpful for the sector and for industry to understand the interaction of those with the national wealth fund. I almost see an organogram in my mind of how things flow. In my conversations with the sector, there have been questions about where the limit of GB Energy ends and where the National Wealth Fund begins, and so on and so forth. It would be enormously helpful for the sector and for other institutions such as the Scottish National Investment Bank and UKIB to understand how they fit within that matrix.

[The Chair]

If there are no further questions from Members, may I thank the witnesses for their evidence?

That brings us to the end of our morning sitting. We have had four panels with eight witnesses—thanks, everyone. The Committee will meet again in this Committee Room at 2 o’clock, when I will have turned into Sir Roger Gale.

Ordered, That further consideration be now adjourned. (Anna Turley.)

Great British Energy Bill (Second sitting)

Perran Moon Excerpts

Committee stage
Tuesday 8th October 2024 Public Bill Committees

[The Chair]

We have a couple of minutes left.

[Perran Moon (Camborne and Redruth) (Lab)]

Q Gentlemen, in relation to clause 3(2)(a), on the supply of clean energy, you have mentioned floating offshore wind, onshore wind and tidal; what do you think are the benefits of GB Energy for technologies such as solar, which is quite well advanced, and geothermal, which is quite important to us in Cornwall? There will be no requirement to consult a Cornish Minister about that.

Tristan Zipfel: I can start with solar energy. As a business we do not look at geothermal, so I do not want to elaborate on that, but we invest a lot in solar. When you look at solar, the issue is not to get private capital—there is more than enough capital to invest in this. However, where GB could provide value is perhaps in creating that link with local communities. I keep going back to that, but it is so important for us to create a sense that those projects are not just there for private investors but have an element of state and public ownership. That could mean a lot for local communities. In partnership with GB Energy, we could even imagine GB Energy taking the lead on the relationship with local communities or in certain parts of the development that are so essential to the project. Recent studies have shown that local communities would respond very favourably to projects in which Great British Energy is an investor alongside the private sector. In that sense, it would make a difference.

Alistair McGirr: I think the local power plan is an opportunity for these technologies. It is not just about the big, mature technologies. It will play an important role in developing projects in solar and geothermal in Cornwall, in Wales and in other parts of the country, too. It is about making the most of the local power plan and working with developers to help to bring those to fruition as soon as possible.

[The Chair]

Thank you. I apologise to Members who have not managed to ask all the questions they want to ask, but we are out of time on this panel. Mr Zipfel and Mr McGirr, I thank you very much on behalf of the Committee and the House for affording us the benefit of your opinions and your time.

Examination of Witness

Dan Labbad gave evidence.

--- Later in debate ---

[Andrew Bowie]

Q We have spoken with previous guests this afternoon about the necessity for the Secretary of State and the Minister here to have strategic priorities and plans to engage with Scottish and Welsh Ministers and all the devolved Administrations. Obviously, the Crown Estate is an area that is devolved in Scotland. You said that within the market right now there are different plans, priorities and timescales and people are moving in different directions. How are you co-ordinating with Crown Estate Scotland to ensure that your work with GBE will be uniform and joined up across the United Kingdom? Otherwise, none of the targets will be met.

Dan Labbad: Consultation across the country is fundamental. In fact, if you look at our Celtic sea round 5 tender, which is live at the moment, you will see that we consulted heavily with the Welsh Government and with Welsh stakeholders. In fact, we evolved our approach quite considerably in the deployment of that tender approach through that consultation, adding a lot of value.

I should say that to get a leasing programme out like round 5—which is the 4.5 GW floating wind programme that we have at the moment live in the Celtic sea—you engage with many stakeholders. The count in the case of the Celtic sea was more than 70 stakeholders from global and local environmental groups, developers across Government, the third sector again and a whole host of users of the seabed. Without doing that we do not deploy, because we do not get everybody’s buy-in. If we are talking other parts of the country, there is no difference whether it is Northern Ireland or Scotland.

We enjoy a good relationship with Crown Estates Scotland and with the Scottish Government. They are partners in our marine delivery route map and we are co-ordinating on systems issues, because obviously some of the environmental issues and deployment and grid issues do not have borders, so that consultation is, as you suggest, fundamental.

[Perran Moon]

Q In relation to clause 1(5), about the statement of strategic priorities, you just mentioned the Celtic sea round 5 tenders. I think I am correct in saying that they did not have any mandatory social value element. What would be your thoughts on social value being mandated as part of the strategic priorities for local coastal communities, particularly deprived areas such as Cornwall?

Dan Labbad: First, as regards the Celtic sea, there are social requirements as part of the tender process. I obviously cannot talk about them too much, given that we are in a live tender for procurement purposes, but there are social requirements as part of that tender.

To your question, it is fundamental. It will be a real failure if we end up deploying renewable energy on the seabed in the way we need to in the next 20 years and are not able to capture a fair proportion of that industrial complex for ourselves as a country. It would be a real pity if we did not build new jobs and new futures for young people across the country and if we did not support the distribution of that benefit across the country, including to coastal communities.

We have to bear in mind that there is a role for developers and a role for Government and the Crown Estate. For example, in the Celtic sea a 4.5 GW tender does not build a supply chain. It is not enough; the critical mass is not there. Again, that is why it is so important that Great British Energy and the Crown Estate work together, with our additional powers and being able to provide forward commitments to, for example, the Celtic sea. We estimate at the moment that it has the potential for another 12 GW of offshore wind, predominantly floating but also fixed. You need that type of scale so that both Government and private sector investment in the supply chain, including in coastal communities, will stick. That is why this partnership is so important and why we have to remember the size of that prize, so to speak.

[Stephen Flynn]

Q GB Energy’s objectives as set out in the Bill make it quite clear that it is intent on becoming a producer, distributor, supplier and storer of energy, and to achieve that the Crown Estate will be absolutely crucial. Can you provide a little insight on the recent powers on borrowing provided to the Crown Estate, and how that will help you and GB Energy to meet the Bill’s aims?

Dan Labbad: First, from the Crown Estate’s perspective —I know this is a little out of scope—we operate under an Act of Parliament and have an obligation to enhance the value of our portfolio nationally, on behalf of the country, into perpetuity. We must ensure that we, like any business, balance safe investments with more risky investments. There is no doubt that investing in the seabed in the way we are talking about is a higher risk activity than other things that we do.

The increased borrowing powers do two things. First, they give us the capital throughput to do more—to accelerate and offer more. Secondly, because we know that we will have a line of credit, they allow us to make commitments. To use the Celtic sea as an example, as we move from what we envisage we can do about 12 GW to the reality of knowing that we can do that, we can then say to the market that we are committed to that leasing programme over the next 10 years. That is huge. From a developer perspective, they are not chipping away. For argument’s sake, let us say that we have 4 GW divided into three bits. You are talking about small gigawattage for companies of the scale of Equinor, for example. Being able to provide a pipeline where we know there is more to come means that they invest more—that is what that does.

The other thing that comes with the borrowing powers is a broader investment remit, which allows us to turn our attention to supply chain opportunities and to support the industrial complex and jobs. Again, we have been restricted in what we can do there in the past, so that is fundamental. With regard to GB Energy, as I said earlier, the Crown Estate cannot do it all on its own. We need additional capital support, support with co-ordination and support with policy evolution. All those things are required, which is why the partnership is so fundamental.

--- Later in debate ---

[Stephen Flynn]

My question has just been answered.

[Perran Moon]

Q My question is along similar lines. Thinking about attracting that capital investment, we are currently in a scenario where, in relation to clause 4, there is a need to de-risk some UK energy projects to unlock additional capital investment. Can you describe how you see the specific role of GB Energy in unlocking some of that capital investment?

Josh Buckland: I have looked through the project life cycle, and clause 4 gives a lot of flexibility around it. There is the early-stage development capital, which is quite difficult at this stage to develop at the scale required. Developing large-scale energy projects costs not just tens of millions, but potentially hundreds of millions through the development phase, so there is a role there that GB Energy could play in the deployment of development capital.

Potentially more important in a development phase is the ability to help projects to de-risk other things that they cannot control, such as their ability to access a grid connection, to get planning approval and to access the right supply chain domestically, to go back to the point about unlocking economic potential here. That could potentially be a significant role for GB Energy. That comes back to the governance question of where Government draw the line between a role for Great British Energy and the Government, because a lot of those issues are effectively for the Government to deal with, but that is an interesting dynamic to watch.

If we move through to the construction phase, there is slightly less of a role, in truth, because the level of capital required in building out projects once they have got over the initial financing barrier is potentially lower. I know the Government have talked a lot about that separately from the Bill. The exception is local and community energy projects, where clearly the barrier to unlocking investment is higher, and there is potentially a role there for Great British Energy that the Government have talked about.

The final piece is whether, once an asset has been built out and is operational, Great British Energy should have a role there. Again, that is potentially more a question about how you want the capital to be deployed. The Government could take a stake in a project, or invest to then seek a return, and utilise that money either to reduce energy bills or to reinvest. That is a question around prioritisation of public spending, because that might be a sensible thing to do, but there is a range of other things you could invest in that might look beyond the energy transition. Hopefully that gives you a bit of a feel. The role will definitely change depending on where you are in the asset life cycle.

[Pippa Heylings]

Q Given your history as a civil servant and in government over the last years, one of the issues around governance under clause 5 was the level of scope and power given to the Secretary of State, without a review, being able to review, reverse or replace the statement. Given that in the past we have had the rolling back of commitments and that we are trying to create certainty for investment, do you have any reflections on whether there should be any kind of review before the Secretary of State can do anything? We are being asked to support this Bill’s being so broad and flexible that any change would be quite substantive. Is there any learning from the past where you would change the way that is described in the Bill?

Josh Buckland: There is a question around consultative processes, I suppose. One thing we have seen, or that I have experienced, especially on the planning side, is that when the Government set out statements of intent—for example, through the planning regime and national policy statements—it is important to consult on those extensively in advance so that there is certainty around what they mean. Then they have to wait as institutions respond. There may be a question about what level of external input is given before the statement of strategic priorities is set out, or whether it is just a Government statement that is then passed through. There is an interesting question about consultation in advance.

Once it is established, those acting and investing alongside Great British Energy will be more interested in how it as an institution interprets that statement. If it has to set out a strategic business plan as set out under subsection (8), that is the area that companies will be more interested in, because—assuming it is operationally independent—that is the thing that they will take more seriously.

The other dynamic in terms of updates is the risk that regular updates to the strategic plan create uncertainty. That might go back to the question of timeline and expectations of when the statement is reviewed, when it is republished and at what stage, and what needs to change externally to make that a reality. That is probably an important dynamic. Whether that is a matter for the Bill I will leave to others to guide on, but obviously it is an area that will be of interest externally in understanding how Great British Energy operates in practice.

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[Harriet Cross]

Q The statement of strategic priorities set out in clause 5 does not have a timescale on it. I wonder how important it is from your members’ points of view that that timescale is narrowed down, particularly given that a lot of your members will be international companies. Obviously investment and personnel—that is, skills—flow abroad, and we cannot guarantee that they will wait for a strategic priorities document to come forward.

David Whitehouse: There is no doubt that the UK and Scotland are in a global race for investment, and we need to create an environment where we are attracting investment. I sit in a sector that has been battered to some degree by public perception and by tax changes. There are things that are happening outwith GB Energy that, as a country, we need to look at. We need to make a great environment for investment.

Time does matter; GB Energy will start to come to life when the Secretary of State puts forward priorities. The thing that we would ask—I think you have heard it from others—is about bringing forward the strategic priorities for GB Energy. The statement should be something that we are engaged in and are bringing forward now. It should come forward in a timely manner, but it must make sure that it has taken on board the necessary engagement with industry, Governments and other key stakeholders. Time is always of the essence.

[Perran Moon]

Q In relation to clause 4, “Financial assistance”, you mentioned unlocking capital investment. Can you elaborate on specific areas where the de-risking of unlocking capital investment could be particularly relevant to GB Energy?

David Whitehouse: For me, there are areas—I have touched on them slightly—where you look at the projects and their timelines, and if you have more data and more information up front, it massively shrinks the time from taking on a licence, or whatever it is, to turning that into carbon stored or electricity generated. There is an opportunity for an entity like GB Energy to invest in some of that up-front data gathering to de-risk those projects. GB Energy would then have the opportunity to trade that for a share in the future projects that come from that. We will see how that shows in the priorities, but that is a clear area where GB Energy can invest now to get data and use it to leverage equity stakes in projects moving forward, which I think is very much consistent with the founding principles of GB Energy.

We also touched on the infrastructure that is required in the UK, much of which is now being dealt with through the National Energy System Operator, and people will have spoken at length about the issues around the grid. There is so much more that we need to deliver a net zero future for the UK and for Europe. Again, a state investor with a long-term investment horizon can now be in the position where we start talking about what networks we need across the North sea to be successful. Having an entity like GB Energy crowding in private sector money is a great opportunity to unlock some of that.

[Perran Moon]

Q On clause 3, you mentioned the supply chain. I totally agree with you about the value of the UK supply chain. You referred to the North sea a lot in relation to that, which I completely understand given your membership, but what about the other areas of the UK? I am particularly thinking of Wales and Cornwall where there is a huge renewable energy opportunity but where, perhaps, the supply chains have not yet been as well established as they are in the North sea. Could you comment on how we can fix that problem through GB Energy?

David Whitehouse: I think it will and should be one of the priorities of GB Energy that our drive for clean energy must be done in a way where we create those supply chains. How do we do that? We already have—we can provide it to the Committee—a good assessment of the quality of the UK supply chain and what its capabilities are. We have a good understanding of what those future renewable opportunities are, and you are absolutely right that there are supply chain opportunities across the country, in essentially every constituency. We have that knowledge.

Now we need GB Energy to recognise what those opportunities are. There are projects to be invested in that GB Energy should be part of, and it should be directing and working with industry and the supply chain to make sure that we take the opportunities to grow our supply chain. We have a lot of significant companies that we should grow. It is a fantastic export but also delivers in our own country. Myrtle will have touched on it: we have a whole host of acorns around this country that could be grown into massive oaks. It will probably use less flowery language, but that should be one of the principles of GB Energy. We have supply chain acorns that we can identify, and we must turn them into the oaks that this country needs.

[Wera Hobhouse]

Q We have been round the houses several times today. We need to see whether we can add anything to the Bill, whether something is missing from it or whether a lot of this will become clearer once the Secretary of State prepares a statement of strategic priorities or we understand the governance structures—all that. You are identifying all the stuff to do with future development of technologies that we do not even know about.

There was a question this morning about whether the Bill should specify that GB Energy should look at the gap in financial markets when it comes to support for new technology companies that otherwise would not make it through the valleys of death. As I understand it, there are not enough financial products out there, from private equity, ordinary banks or other investment opportunities. Can we put anything in the Bill to make addressing that particular gap more of a priority?

David Whitehouse: I am sorry; I wish I could give you a better answer. I have spoken with our members. In some way, shape or form, we think the Bill as it stands is broad and provides the opportunity for the Secretary of State and others to bring forward the statement of principles. That is where we would see some of that.

The Government will also bring forward an industrial strategy, and linked to that will be our energy policy. I think there is such a good opportunity within those—we will have representation from industry, which understands some of the issues, and there will be representatives from our investors across the sector. From our members’ feedback, I think that is where they would see that input: in those broader ways.

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[The Chair]

I call Perran Moon.

[Perran Moon]

My question has been answered.

[Torcuil Crichton]

Q Thank you, Andy, for your impressive evidence. I also declare an interest as a member of the GMB. You welcome the Bill, possibly the prescription part for renewables, but what would you write in that prescription part to ensure that the workforce is involved and that we retain that workforce as we move to green energy away from oil and gas?

Andy Prendergast: The role of trade unions is key. I have always had a very simple view: trade unions are about democracy at work. We are a country that believes in democracy so much that we invade other countries to give it to them whether they want it or not, and yet the idea of democratisation at the workplace is an anathema—certainly to what was over half of Parliament.

We need to listen to workers and ensure that they share in the success of businesses and ultimately that their sacrifices and those of their families are recognised. When we look at the work that is going to be coming out, we know that we have to do this. We have been asking for an industrial plan for years, and I think GB Energy is part of that industrial plan. That industrial plan has to be a road map of how we do this properly, how we engage those communities and how we provide the support necessary to make a transition.

I mentioned going to Denmark. When I was there, something fascinating happened: they closed a bacon plant, which was 1,000 jobs. You sit there and say, “That’s terrible. In Britain, we’d be fighting that. We’d be on picket lines.” In Denmark, because of the support given in social security and retraining, and the industrial strategy, it was seen as an opportunity for people to get better jobs. That was also helped an awful lot by the fact that those people were getting 90% of their salary paid for up to a year, so people thought, “Well, it’s a better job and a bit of a holiday in the meantime.” That shows what happens when you engage people properly.

What you ended up with is something that would decimate a community in Britain but rejuvenated a community in Denmark. That is because there was a tripartite strategy of listening to unions, talking to Government and talking to employers, and everyone put their heads together to come up with a solution to what would clearly be a problem. We have failed at that in Britain for years.

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[The Chair]

I understand that that was out of order this morning, but you got your answer in the end.

[Perran Moon]

Q I would like to declare that I am the secretary of the all-party parliamentary group for critical minerals. That will be relevant in my question.

I can safely say that the people of Cornwall are really excited about GB Energy. Expectations are very high. We are a post-industrial community that has suffered for decades from lack of investment. More recently, however, we have discovered that investment is now going into our tin industry; we have the third highest-grade tin deposits in the world. We also have lithium. We face the Celtic sea, so we have a huge opportunity with offshore wind and onshore wind. We have companies setting up in geothermal, solar and tidal, and we have the country’s largest ground source heat pump.

Can you elaborate on the potential benefits for communities such as Cornwall, where we have such a wide array of opportunity, and say how GB Energy will support those opportunities? And if I may be a little bit cheeky, we have heard quite a lot today about the head office being set up in Aberdeen with satellite offices being set up in Edinburgh and Glasgow, but I will just point out that there is another corner of the United Kingdom that would be delighted to have a satellite office.

Michael Shanks: May I thank you for the question? I think that, in asking it, you have successfully elaborated on all the potentials of Cornwall, which I am sure your constituents will be delighted about.

However, you make a really important point on two fronts. The aim of GB Energy is to crowd in investment in projects right across the United Kingdom. Yes, we are very proud to say that the headquarters will be in Scotland and—importantly—specifically in Aberdeen, as the Prime Minister announced. That is partly to recognise the energy story in the north-east of Scotland for the last 60 years in oil and gas, and the importance of the transition. However, it is also important to say that on the renewables journey Scotland has also been leading the way and will continue to do so in so many ways. It is right that the headquarters is in Aberdeen, building on the talent, experience and skills that are already there.

On the broader point, though, there are real opportunities for investments in every corner of the UK. To go back to some of the earlier points that witnesses made, this is a combination of policies; it is not just GB Energy in isolation. We have been really clear that we are a Government that are not agnostic about industrial strategy, and that we want to see manufacturing in the UK, and the thousands of jobs that could have been created by some of our offshore wind projects, for example, but actually went to other countries before we towed the projects into British waters. We want to see those jobs in this country and that will create opportunities across the country in the supply chains, in skill developments and in lots of other opportunities, including in Cornwall.

Although I absolutely cannot commit to opening an office in Cornwall and I would like the record to reflect that, I think there will be opportunities for your part of the world and indeed for the whole of the UK.

[Harriet Cross]

Q We have heard from various witnesses, particularly Ravi Gurumurthy, about the risk management of private investment and how that will sort of coincide within GB Energy. I am just wondering how the Bill is expected to ensure that GB Energy does not just effectively end up as a sink for risky investments, or is that okay? Is the prospect for GB Energy that it provides that full buffer? If not, how will we prevent that situation? Otherwise, we are effectively just making taxpayers’ money the risk management for private investment. I do not have a “yes or no, which side of that fence do I sit on?” answer; I am just wondering what is acceptable within the context of the Bill.

Michael Shanks: That is a really fair question. The question of risk appetite is important; that is partly why setting up GB Energy as a company, regulated by the Companies Act and with a fiduciary board made up of financial experts who have a responsibility as a board of directors for the direction of the company and for its financial results, is so important.

There has to be some risk appetite, and one of the earlier witnesses made a point that I would agree with—if there are absolutely no projects that do not have any risk at all, GB Energy is not really filling the gap. It is really important that GB Energy can move in the spaces where the current investors are not necessarily finding those opportunities. Crucially, however, GB Energy is obviously owned by the taxpayer and therefore, as a backstop, there is a real conviction that it will only invest in things that have a likelihood of producing a return for the taxpayer.

Of course, when we get into making individual decisions, that is partly why it is important the Bill does not go into a granular level of detail on every single thing that GB Energy will do, because it is really important that we give that board, those experts and everyone they bring in to advise them, the space to move into opportunities as they emerge.

If we were to go back five or 10 years, we would not have thought that we were about to have the world’s biggest floating offshore wind farm off the coast of the UK. That would not be on the face of a Bill like this, but actually it is a huge potential opportunity for us and we would like those kinds of opportunities to be open to GB Energy to explore.

Great British Energy Bill (Third sitting)

Perran Moon Excerpts

Committee stage
Thursday 10th October 2024 Public Bill Committees

[Andrew Pakes]

I thank the hon. Gentleman for being kind to me in the first intervention that I have ever taken in this House, but I will stick to my point: that we could achieve so much more in this country. We would be having a fundamentally different conversation about insulation efficiency and renewable energy if we had not gone through the last 14 years, in which budgets were cut. There are young people in my constituency of Peterborough who could have contributed, by moving from blue-collar to green-collar jobs, if we had had a further education system that was functioning and could train them—if we had a home insulation system that had a workforce that could get out and deliver.

Whatever we say in any resolution, motion or primary legislation in this place will not be enacted unless we have a people plan that delivers for it. That is why delivering on this issue should come in a different piece of legislation, even though I have huge empathy with the sentiments expressed by the hon. Member for South Cambridgeshire.

[Perran Moon (Camborne and Redruth) (Lab)]

Although I entirely agree with the importance of the warm homes plan, I am getting really concerned that we are losing focus. We are looking to create a Bill that allows the scope and flexibility to ensure—I am glad the Minister mentioned this earlier—that the UK taxpayer gets the best bang for their buck. As the expert witnesses consistently testified, one of the key benefits of the Bill is that it is not overly or unnecessarily prescriptive and allows the scope to develop the strategic priorities, referred to in clause 5, that focus on ensuring that we get this right. I look forward to speaking to the Minister in due course about those priorities. GB Energy will work alongside and in partnership with the private sector, but we must avoid trying to be too prescriptive in a specific Bill focused on this area.

[Wera Hobhouse]

The hon. Gentleman is a new Member of Parliament; I have been here a little longer. Those of us who have been here longer always want to ensure that something is in statute—in law—because we parliamentarians are always a little wary of leaving it to a further document that may or may not come. We would like to see some assurances in law to ensure that whatever has been promised will actually happen. Does the hon. Gentleman share my concern?

[Perran Moon]

I am absolutely delighted that the Government are already talking about the warm homes plan. We have a plan, and it is coming through; we have talked about it coming through in spring. Today we are talking about the Great British Energy Bill, and it is really important that we retain the focus on ensuring that the Bill has flexibility, so that we can see the strategic priorities delivering on GB Energy specifically.

[Michael Shanks]

The hon. Member for South Cambridgeshire has rightly and passionately outlined the scandal of people living in cold homes and poorly insulated homes. She is right that it is an absolute scandal.

Great British Energy Bill (Fourth sitting)

Perran Moon Excerpts

Committee stage
Thursday 10th October 2024 Public Bill Committees

[Andrew Bowie]

I do not think so, but the creation of the company is a state intervention in the market. That is one reason we on the Conservative Benches disagree with the Bill. We think that we can drive up investment in renewables and new technologies in this country by allowing companies the freedom to invest and by creating the best environment for private investment in this country. That is what we did when we were in government. That is why we have the first to the fifth-largest offshore wind farms in the world, and that is why we cut emissions faster than any other country in the G7, at the same time as growing the economy. That is a record that I am very proud of, and I worry that this state intervention in the market will have a negative effect.

We are debating the creation of GB Energy and this Bill. As part of that, a reduction in electricity prices should be one of the strategic aims.

[Perran Moon (Camborne and Redruth) (Lab)]

The Conservative party in government—I do not know whether opinion has changed—had little regard for private businesses. On Tuesday, however, we clearly heard expert witnesses from private businesses consistently testify that one of the Bill’s key benefits is that it is not overly and unnecessarily prescriptive, so it allows the scope to develop the strategic priorities that focus on ensuring that we get this right. The amendment is completely unnecessary, because it is yet another example of being overly prescriptive, which is not what businesses asked for on Tuesday.

[Andrew Bowie]

I completely agree that we should not be overly prescriptive of business, but one of the strategic objectives in setting up this company should be to work towards a reduction in wholesale electricity prices. The Bill sets out everything else that the company will seek to do, so why not add that to the Bill as an objective for the company in the long run? I do not know why there would be any disagreement with including that objective in the Bill, given that we all agree that electricity prices and the cost of doing business are far too high in this country. Surely, therefore, GB Energy should be working towards that objective—hence I think the amendment is necessary and we have moved it today.

On the requirement on the Secretary of State to give a specific direction to GB Energy, we think that it should report its progress on the priority of reducing wholesale electricity costs to Parliament. Amendment 19 would also introduce the requirement for GB Energy to report to the Secretary of State within three months of every investment on the projected impact on wholesale energy prices over the next 10 years. It is essential that we in Parliament, Government and Great British Energy take a sufficiently long-term view of the decisions and investments that will impact wholesale electricity prices and, therefore, consumer bills and the cost to industry in the years and decades to come. Those are the reasons for our amendments.

--- Later in debate ---

[Andrew Bowie]

Well, not quite. We did have an industrial strategy. We had a Department for Business, Energy and Industrial Strategy. It is not an industrial strategy. The amendment aims to establish within the strategic priorities of this company a commitment to deliver a UK-based supply chain, which is something that we sought to do while in Government, with the sustainable industry reward scheme that will launch next year with the auction round for the contracts for difference, and through other programmes and investment opportunities that we were seeking to see come to fruition. I am very glad that this Government seem to be taking the challenge in this regard just as seriously as we did.

The transition we are in just now spans our entire energy industry and incorporates the North sea and our homegrown petroleum outputs. As noted by the Climate Change Committee, we will need oil and gas for decades to come, not just as an energy baseload but as a key component in the transition and in the technologies for the transition.

In our electric vehicles and our batteries, we will need lithium. In 2023, Cornish Lithium opened Britain’s first lithium mine in Cornwall, with £53.6 million investment led by the UK Infrastructure Bank, which we established in 2021, to invest in our domestic supply chain, our clean technology supply chain and our energy future.

In our solar panels, we need silver, indium and copper. In our grid systems, we need kilometres and kilometres of copper. In fact, renewable energy will drive 45% of copper demand by 2030. Our reliance on China for low-cost, clean technology and minerals should worry us all. In 2022, we imported 64% of rare earth metals and 49% of lithium batteries from China.

[Perran Moon]

Will the hon. Gentleman give way?

[Andrew Bowie]

I would be delighted to give way to the hon. Member for Cornwall.

[Perran Moon]

The hon. Member for Camborne, Redruth and Hayle—but I take the shadow Minister’s point. As he said, it is important to consider that an awful lot of our critical minerals are imported from the other side of the world, from Australasia and China, but that in Cornwall we have massive deposits of tin, lithium and tungsten. Does he agree that one opportunity that might come from GB Energy is to expand British jobs in Cornwall and areas that are extremely deprived? In that respect, might he support GB Energy?

Great British Energy Bill (Fifth sitting)

Perran Moon Excerpts

Committee stage
Tuesday 15th October 2024 Public Bill Committees

[Stephen Flynn]

No.

[Perran Moon (Camborne and Redruth) (Lab)]

I am interested in the right hon. Gentleman’s premise. If Scotland is granted this amendment, surely the Welsh and the Cornish—in Cornwall we have onshore wind, offshore wind, geothermal, tidal, solar, tin and lithium, which are all critical to the UK’s move away from fossil fuels—will demand the same thing. The point is that it is GB Energy, not “Scotland Energy”.

[Stephen Flynn]

Would the hon. Gentleman like to clarify to the Committee whether he has just equated the nation of Scotland to Cornwall?

[Perran Moon]

Under national minority status—well, the right hon. Gentleman can draw his own conclusion.

[Torcuil Crichton (Na h-Eileanan an Iar) (Lab)]

I question whether amendment 3 would be beneficial to Scotland or give Scotland a competitive advantage, as has been claimed. I think it is deeply contrary to Scotland’s interests.

As my hon. Friend the Member for Camborne and Redruth has pointed out, we are not in separate energy markets. We live in one energy market, and that would not change even if we were divided into separate states, as Cornwall might well one day become. The transmission of energy does not respect borders. It is pretty obvious that it would make no sense to invest only in the national grid north of Berwick, while someone else invested in the national grid south of Berwick.

In my constituency of Na h-Eileanan an Iar, we have the glaring anomaly that the energy companies of other states—Norway, Ireland, France—are investing in renewable generation, but there is no British state energy company. That is what I hope will come into being under the Bill. At one time we had the British National Oil Company, but that fell when Mrs Thatcher came to power—on the back of SNP votes, of course.

The fact that other state energy companies are investing in my constituency points to another glaring inconsistency in the amendment. If we followed its principle, Ireland would invest only in Ireland, France only in France and Norway only in Norway, but we know that that is not how things work. Norway’s sovereign wealth fund does not just invest in Norway; it makes global investments. It is not built just on narrow investment or narrow nationalism within its own borders; Statoil, now Equinor, invests globally. I hope that in due course GB Energy will invest globally so that the profits serve every corner of the United Kingdom, not just one.

I can understand why the right hon. Member for Aberdeen South wants to talk just about hypothetical money and future money. As the shadow Minister pointed out, the Scottish Government have already squandered the money that they raised from renewables. The Scotland licences for offshore wind farming were sold off cheaply by the right hon. Member’s colleagues in Edinburgh, although they still got 10 times more than they thought they could. Astonishingly, the SNP was ready to sell all 14 leases for just £75 million, but fortunately the Crown Estate auction in England and Wales went first and raised more than £1 billion, which gave the Scottish Government pause for thought. They called in the consultants, multiplied the figure by 10 and managed to raise £750 million, which was still too little in comparison with what could have been raised. That £750 million has been frittered away; it has not gone into any sovereign wealth fund or been used for the future benefit of public expenditure on energy infrastructure.

It is all well and good to talk about hypothetical, sealed-off, insular energy markets, but that is just not how it is or how it will be. Scotland, together with the rest of the UK, can have a huge input into GB Energy, which the Bill will set up, and we can all gain through a common effort in the benefits of its evolution.

--- Later in debate ---

[Michael Shanks]

I think that doubling down on the language is not helpful either, but I will come back to both those points.

I recognise the importance of the point about communities and a more strategic approach to infrastructure to ensure a balance. That is why we have commissioned the National Energy System Operator to look at the strategic spatial energy plan, which is important in how we look at energy in a strategic way. To say that communities are under siege is not the right language. This is nationally important infrastructure.

The Opposition do not support Great British Energy, but as my hon. Friend the Member for Na h-Eileanan an Iar said, Great British Energy is one mechanism whereby communities can benefit from infrastructure where they are not benefiting at the moment.

[Perran Moon]

Does the Minister agree that the people of Cornwall are ready, willing and able to take any renewable energy opportunities we possibly can?

[Michael Shanks]

My hon. Friend never misses an opportunity to mention Cornwall, but let us not relitigate our earlier argument.

There are huge opportunities. The hon. Member for Gordon and Buchan made the important point that there are certain parts of the country, particularly in the north of Scotland, where for obvious reasons there are a number of wind projects, and we need to look at the infrastructure that comes with that. We want to ensure we build the nationally important infrastructure to deal with the connections issue that the shadow Minister rightly raises, but we also need to recognise the need for cohesion in planning to make sure that there are not some of the issues that we have seen in other parts of the UK, where a number of projects have come on stream over time rather than being planned coherently.

Finally, on community involvement, the point about consent in dealings with communities is important. We want to take some of the previous Government’s work on consulting on community benefits—we will say more on this in the coming months—to make sure that there is genuine community benefit in hosting not just energy generation infrastructure, but network infrastructure, which will be critical. Nothing that we have said runs roughshod over the planning and consenting process, which will remain for communities.

Great British Energy Bill

Perran Moon Excerpts

Report stage
Tuesday 29th October 2024 Commons Chamber

[Sarah Champion]

I appreciate that my hon. Friend has put that on the record. I think that what we need to be doing is reducing our dependency—some might say “stranglehold”—on China for some of our most critical resources.

[Perran Moon (Camborne and Redruth) (Lab)]

I agree with my hon. Friend about China. Does she agree with me that we should be looking at domestic production of critical minerals such as tin, lithium, tungsten and manganese? In Cornwall we have plenty, and we are very hopeful that the Bill will support the opportunities that they offer.

[Sarah Champion]

I completely agree with my hon. Friend, and that, to my mind, is what GB Energy should be doing. It is using its purchasing power around the world to increase human rights and improve working conditions, for example, but it also needs to be supporting British-based businesses, because our businesses need that support more than ever before. What we need to be doing is applying pressure on all our trading partners around the world, not just China, to improve standards. There are allegations of child labour in cobalt mining for EV batteries in the Democratic Republic of Congo, and there is evidence of labour exploitation in nickel processing in Indonesia.

With those examples in mind, I ask the House a simple question: do we turn a blind eye to modern slavery in our energy supply chains, or do we lead the way with a just transition? As the Chancellor outlined in her conference speech, this Government are

“Calling time on the days when government stood back…and turned a blind eye to where things are made and who makes them.”

It is vital that we follow up her words with real, meaningful action, because, as things currently stand, we are a global outlier. In 2021 the United States enacted the Uyghur Forced Labor Prevention Act, banning the importation of products from the Uyghur region, including shipments of solar panels with connections to Xinjiang. That has been highly effective, with the market responding with new, ethical supply chains. Canada and Mexico have followed suit with similar regulations, and this year the European Union passed the corporate sustainability due diligence directive, which will ensure that companies prevent and address the adverse human rights impacts of their actions.

--- Later in debate ---

[Sammy Wilson]

As I have just said, it cannot be done. What I have said is that a Government should not make a promise if they believe that when the Bill in question is scrutinised, that promise will not be fulfilled—especially here, when it is known that the policy will cost jobs, and unions have already made that point.

I have some sympathy with the amendment tabled by the hon. Member for Brighton Pavilion (Siân Berry) in respect of the impacts on nature. I come from one of the most beautiful parts of the United Kingdom—the Antrim coast is famous for tourism—and I am already seeing the impact of net zero policies on the landscape and the flora and fauna of the Antrim plateau. When I look out of my window in the morning, there is the wind farm that has been erected on top of the plateau, which involved stripping off 3 metres of peat and destroying a bird habitat; every year these windmills chew up birds and bats. I have already mentioned the admission that 17 million trees had been cut down in Scottish forests, and the hon. Member for Brighton Pavilion was unfortunate to mention the Sperrins, another beautiful part of Northern Ireland of which I have some knowledge and which has been totally despoiled by hundreds of windmills.

Let us not pretend, then, that the policy of renewables is a green, clean policy, because it is not. Let us be honest: any energy production will require the extraction of fuels and materials from the earth, and that in itself will be destructive, so let us not describe it as nature-friendly or green. Let us just accept that what we need if we are to bring about economic growth and reduce the cost of living for our constituents is the cheapest, most available fuel that we can have. That will drive economic growth and decrease the cost of living, and that is the kind of energy policy that the Government ought to be following.

[Perran Moon]

The Conservatives are generally adamant that there very are few Labour Members with any business experience, so having spent more than 30 years in business—latterly in electric vehicle charging infrastructure—I was reassured to learn while listening to the hon. Member for Bexhill and Battle (Dr Mullan) that there is at least one Conservative who is not a renewable-energy Luddite, and I am glad to see him back in his place. I wish that the right hon. Member for East Antrim (Sammy Wilson) would spend a bit of time understanding a little more about geothermal energy, which does not require the wind to blow or the sun to shine.

I was honoured to be part of the Committee considering the Great British Energy Bill, a core plank of this Government’s policy programme whose benefits will be felt in every corner of the UK, including my own constituency of Camborne, Redruth and Hayle. I pay tribute to my right hon. Friend the Secretary of State and the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), for their diligent work on and defence of this transformational Bill. Let me also put on record my thanks not just to my right hon. and hon. Friends who sat on the Committee, but to other Members on both sides of the House who contributed to it.

I will refer to the amendments. In Committee we heard from experts and stakeholders, and we extensively debated the issues, from oversight to community benefit. Opposition Members who were on the Committee know that, because they were there. As I said when I made my maiden speech on Second Reading, my focus will be on using the opportunities of this Bill to unleash the Cornish Celtic tiger.

Renewable energy—onshore wind, offshore wind, geothermal, tidal and solar—and critical minerals such as tin, lithium, tungsten and manganese are fundamental for our transition away from fossil fuels. There is no silver bullet; we need a mix of renewable energy, which will form part of our policy going forward. That is what GB Energy will give us the opportunity to do.

There are few areas of the UK where there is a greater distillation of renewable energy and critical mineral opportunities than in Cornwall. I refer to the comments made by my hon. Friend the Member for Rotherham (Sarah Champion) about human rights and the opportunity to produce domestically an awful lot of the energy and the critical minerals that we currently import from places such as China, Indonesia, Australia and South America. As a result, there are extremely high expectations in Cornwall for local jobs in industries that support community initiatives and domestic supply chains in one of the most deprived areas of northern Europe.

Given the distillation of raw materials and natural resources in Cornwall, the fact that the new Centre for Critical Minerals, which will accelerate the move towards a green economy, opened very recently in Cornwall, and the fact that Exeter University, which has a campus in Penryn, has the largest number of top-100 climate scientists in the world, it will not come as a surprise to the Minister that I ask him to consider opening a satellite office for Great British Energy in Cornwall. They may not want it in Aberdeen, but we want it in Cornwall.

I support the Bill as it is. We discussed the amendments in Committee, and I look forward to the opportunities that this Bill will bring to the people of Camborne, Redruth and Hayle.