(2 years ago)
Commons ChamberMy hon. Friend is an expert in such matters and she is absolutely right to highlight those concerns. That is what the Bill is about. It is not about Brexit—Brexit has happened; it is a fact. For most people, there is no appetite to revisit those arguments. Although many people have strong views on how it has been done and how the Government have not delivered on the promises that they made—I understand that—the task for us in the House is to get on and make it work. It is therefore important to recognise that the Bill is not about whether people think Brexit was a positive or negative thing. It is about whether we wish to give the Government the power to sweep away key areas of law that are of great importance to all our constituents with no scrutiny, no say and no certainty over their replacements. Put simply, do we wish to bring more Conservative confusion and chaos into the British economy?
We now know that Labour is a party of Brexit, no different from the other major party of Brexit, but how on earth do we make something that is unworkable work in the way that the hon. Member describes? Brexit is not a political strategy; it is an ideological venture and mission. He may have given up on getting back into the European Union, but we on the Scottish National party Benches certainly have not.
I was elected to this place on a prospectus for Scotland’s independence, which is a completely legitimate argument. When the right hon. Member for North East Somerset (Mr Rees-Mogg), who is no longer in his place, made his remarks about the value of democracy, they rang rather hollow in my ears. Although I respect England’s democratically expressed right to vote for Brexit and withdraw from the EU, I do not accept, as the Government and Opposition Benches do, that holding Scotland’s democracy hostage is somehow acceptable—it is absolutely not. The legislative process being considered this evening has been conducted without the consent of the Scottish people. It has not been consented to by our Parliament and it was not consented to in the referendum that was held. Although I do respect the right of withdrawal from the EU, it is disingenuous, at the very least, for the very people who embraced withdrawal from the EU to deny Scotland the right to withdraw from this Union.
Secondly, part of the agreement between the Kingdom of Scotland and England that led to the treaty of Union was that any law change should be to the “evident utility” of the people of Scotland. That is set in the articles of Union, and I see nothing in the Bill that is for the evident utility of the people in my Kirkcaldy and Cowdenbeath constituency. Scotland entered this Union through the coercive influence of the English Alien Act 1705 and the financial enticements of Scottish MPs who were bought and sold for English gold, to the outrage and consternation of the Scottish people. There was rioting in the streets and the Act of Union was burned in various towns.
Scotland’s 62% vote in the EU referendum in 2016 is often dismissed, as our history is often dismissed, as irrelevant to the modern era because we voted as one country. But the Act of Union 1707 created one state; it did not create one nation. Scotland is a country, and it has always maintained its identity as a country, even with the UN. From the declaration of Arbroath to the claim of right, it is the people of Scotland who are sovereign, not a Parliament and not a regent. That is a fundamental difference between Scots law and English law. Scots law is underpinned, in the common law, by the claim of right, whereas English law, and many other jurisdictions, is underpinned by Magna Carta. There are two Unions—there was the Union of the Crowns and, 100 years later, there was the political Union—but there was never a territorial union. Scotland is a separate and distinct people and country. The importance of the claim of right was best demonstrated most recently when King Charles acceded to the throne and had to swear to uphold the claim of right.
Despite some of my former colleagues being elected in 2016 on the basis of offering an independence referendum if Scotland were taken out of the EU against its wishes, subsequent elections have happened and no referendum has been brought forward. Despite pronouncements in this place and tough words in other Chambers, no referendum or preparations for a referendum have been forthcoming. Scotland has now been taken out of the EU against her wishes.
I do not know if the hon. Gentleman is not paying attention, but has he not noticed, and does he not recognise, that there is going to be a referendum in November next year? I know that Alba represents about 0.7% of all voters across Scotland, but at least they could start to pay attention.
I thank the hon. Gentleman for that intervention, and if he paid attention he would know that the last poll put us on considerably more than 0.7%, which I know he loves to trot out on Twitter along with his usual offensive messages.
This legislative programme gives nothing to Scotland, and it will undermine the preparations that the Scottish Government are supposedly making to rejoin the EU. We now know what the United Kingdom Internal Market Bill was for. It was to facilitate the destruction of the devolution settlement, and that cannot stand. Alba’s position is that Scotland should join the European Free Trade Association immediately after our Parliament acquires the competencies to sign international treaties and abide by them. That would give us access to the European economic area immediately, and give us free trade with the EU. It would also solve cross-border trade with the UK, because the UK already has an arrangement with EFTA. EFTA membership could be negotiated in weeks rather than the years that it will take for the EU process to complete, and which would leave Scotland in the wilderness. It is essential that EFTA is back on the table for the Scottish people to consider.
We would also bring forward a written constitution by which Scotland will govern itself, and work with the variety of groups that have already brought forward developmental pieces of work on that. We consider that a series of citizens’ assemblies would be much better placed than a Committee Room upstairs to consider the laws that apply to the Scottish people. When the people are free and independent, they must fashion the instruments with which they are to govern: the divisions of powers, the extent of those powers between the Parliament and the Executive, the franchise, the electoral system, the judiciary and its appointment, the relationship between Government, police and people, and the principles and values that describe us as the nation we want to be seen to be on the international stage.
The written constitution should start from the principle that the people are sovereign, in keeping with Scottish constitutional tradition. That would offer us greater economic and social stability than being shackled to a failing, visionless political Union and this tawdry Bill. It is incumbent on all independence-supporting MPs to act in concert through a constitutional convention, to define the means to take us out of this dreadful Union.
It is like the old days, is it not? I was going to say the good old days, but they were not all that good. Remember the endless blue-on-blue, Tory-on-Tory Brexit wrangling with nobody being able to make up their minds about the way forward. We have had a little of that, and I thought it was going to get quite serious when the right hon. Member for North East Somerset (Mr Rees-Mogg) seemed to be squaring up to the hon. Member for Gloucester (Richard Graham)—I almost saw top hats at dawn. Thank goodness that they were able to back down and come to some sort of a reasonable conclusion.
Here we are once again debating Brexit: the issue that never goes away. You would expect nothing else, Mr Deputy Speaker, but I will put my cards on the table: I think that this is an awful Bill. It is a dreadful Bill. In fact, it is a Bill conceived, drafted and prosecuted in their ongoing ideological Brexit frenzy, ridding the UK of any vestiges of their hated EU. In fact, I would call it a vindictive Bill—more of a vendetta than a piece of legislation. And like all desperate ideologues, all traces of the ancient regime must be obliterated. Everything must be erased. Year zero must be established. We are getting three year zeros, but I think the one at the end of 2024 is the year zero for when all of Brexit is finally banished and we have the sovereignty that they claimed we were always going to have but never actually quite aspired to.
And so, this Brexit exercise in self-harm goes on and on and on. It is the ideological battle that never ends. I get the sense that nothing will ever satisfy them. Their insatiability for things Brexit and EU will never actually be met. They are almost like the Bolsheviks in the 1920s prosecuting their permanent revolution. I suspect that once we are concluded with this Bill and it is on the statute book, they will get around to digging into the earth’s core and start to geologically separate this island just that little bit further from mainland Europe.
The thing is that everybody is coming to the conclusion that their Brexit is a disaster. Anybody and everybody is beginning to tell them that. Even their friends are telling them that. I never knew anything about this guy, Guy Hands, but he is extolling them to
“admit the public was lied to”.
He is saying that they should renegotiate a new deal with the European Union. He says:
“The first thing to do would be to admit that the Brexit negotiations were a complete disaster”.
I do not know this Guy Hands, but I suspected he might have been some sort of tofu-munching Liberal Democrat, with all due respect to my Liberal Democrat friends, but apparently he is the Tories’ biggest donor and even he is saying that Brexit must be renegotiated.
As this disaster unfurls, is it not so disappointing to see the Labour party embracing it? The Labour party is becoming another party of Brexit. But it is okay, Mr Deputy Speaker, because it is going to make Brexit work! Are we not all relieved about that, then? The thing is, and I say this candidly to my colleagues on the Labour Front Bench, is that they cannot make Brexit work. In fact, it is designed not to work. Brexit was never a political strategy, so it cannot work. Brexit is an ideological venture driven by those guys over there on the Conservative Benches, founded by and predicated on British exceptionalism, the exclusion of others and an almost pathological hatred of everything European. But Labour is going to make it work! It is actually going to make it work without revisiting the single market or reinstating freedom of movement. It is going to make it work almost identically to the Brexit ideologists.
Labour may have given up on getting back into Europe, but those of us on the SNP Benches will never give up on our European ambitions. We will lead an independent Scotland back into the European Union. We are a European nation which values our EU membership, which voted to remain and aspires to return. With Scottish independence, we will put Scotland back into the heart of Europe in line with the wishes of the Scottish people.
This is the first day of the third Government in three weeks or four weeks—a few weeks, anyway. Was it not just a perfect opportunity for them to reconsider, pause, rethink and assess whether all of this is working? I went online the minute I got up very early in the morning to have a look to see if the Second Reading debate on the Bill was still on the Order Paper. To my great surprise it was, because I thought they would have taken this opportunity to reset and have a think about their European relationship. But not a bit of it. What we find is that the Sunak Government are the same as the Truss Government, the same as the Johnson Government and the same as the May Government. They are all Brexit—
Order. Not only is the hon. Gentleman going a bit wide of the Bill, but he is mentioning current serving Members by name which he must not do. He has been here long enough. He knows.
I heard, Mr Deputy Speaker, from a sedentary position, “Too long!” I am trying to resolve that—help me out. I want to be part of an independent nation. The hon. Gentleman and his friends could help in that ambition.
I am told that the Chiltern hundreds are beautiful at this time of year.
I hear the Scottish highlands are even more beautiful, but we might debate that one at some other point.
This Bill will drive a coach and horses through the devolution settlement. Combined with the United Kingdom Internal Market Act 2020, we are beginning to reach a crescendo in the assault on Scottish democracy and our parliamentary democracy. The joint pincer movement of the internal market Act and the Brexit regulations means that the Government are now almost entirely free to legislate at their leisure on Scottish devolved issues—issues that are the responsibility of Scottish Government Ministers and within the purview of the Scottish Parliament. The fact that the Government can legislate at leisure and at will is a threat to our Parliament.
I say gently to Government Members that what has happened has been a disaster for them. The idea of aggressive, muscular Unionism having any sort of resonance with the Scottish people has not worked. If there is an early general election—let us hope that there is—they will find that out to their cost with the loss of nearly all their Scottish Members.
I can see you exhorting me to finish, Mr Deputy Speaker, but let me say this about the Bill. I do not think that we have ever seen such a nasty, awful piece of legislation come before the House. Given that 2,500 pieces of legislation have to be looked at, doing away with all the EU regulations means that the House will be endlessly debating this stuff. Why not leave it alone? Take this opportunity to reset and rethink. Dump this dreadful Bill. Let Scotland become an independent nation—and then everybody will be happy.
(2 years, 11 months ago)
Commons ChamberI am grateful for the opportunity to resume my speech—this almost feels like a second episode, perhaps of “EastEnders” or “Doctor Who”, with a drum roll but without all the excitement and cliffhangers—and I have a couple of little points to make. I shall be brief, as I know that several hon. Members wish to contribute to the debate.
I did not want to give the impression that I had any difficulty with the traditional model for contractual arrangements with artists. I think that there is a lot in the rights-ownership model, which has sustained the music industry since its inception and has made a huge success of it. It only created difficulties in the early noughties with the advent of digitisation. Music was probably the first discipline that began to experience difficulties with digitisation, and we know the problems that consumed the industry. Its very survival was under threat from pirates and companies such as Napster and so on.
We put in the infrastructure that helped to deal with that, and music has been a massive success since then. Global revenues hit £16.2 billion last year—the highest since 2002. This is the sixth consecutive year of growth. Between 2015 and 2019, revenues enjoyed by labels have grown by more than £200 million. People are making obscene amounts of money again, but not the people making the music.
The hon. Gentleman spoke about his own illustrious music recording career earlier. Does he recognise that someone who sold 1 million copies of a single in the 1990s typically saw their single reach the top 25 singles of the year, whereas about 1,700 different artists had more than 1 million streams last year? He is right that there is a lot of streaming, but it is being shared so much more widely, so is it not inevitable that many people will receive less?
People will receive less because they are paid such pitiful, insignificant sums every time one of their pieces of music is played on one of the streaming services. On iTunes, it is 0.003p per play for the artist. Apple Music is a little more generous, with 0.006p. Those are the sorts of difficulties that current artists are having to experience in this whole streaming environment.
The Ivors Academy and the Musicians’ Union have told us how bad the situation is for musicians, so we know how bad it is. They have said that 82% of professional musicians have made £200 per year less from streaming. This is totally different from the 1990s, when someone who did sell massive amounts of singles got real rewards. We are coming into the Christmas season, and someone who is lucky enough to have had a Christmas hit in the 1970s or 1980s—there have not been so many recently—will hit the jackpot, because their song will get played again and again and go right to the top of the steaming charts. All these historic artists will once again earn a huge bonus this Christmas season, and all power to them, because these are fantastic songs that we all love, but that gives just an indication of how difficult it is for modern artists to try to make some money.
I declare an interest similar to the hon. Gentleman’s, but on a much more modest scale. Does he agree that, whatever one’s view of the Bill, there are issues that need to be addressed and that the best way of doing that is to put the Bill in Committee, where it can be scrutinised in detail and, if necessary, amended?
I was waiting patiently for my colleague, the third member of MP4, to get to his feet today. In response to a question about whether Ringo Starr was the best drummer in the world, John Lennon is reported to have replied, “He’s not even the best drummer in The Beatles, ” but let me say to the right hon. Gentleman that he is the best drummer in MP4. He is absolutely right that the Bill really needs to get to Committee so that we can ensure that it is properly debated, because the model is not working—the model is broken.
Let me say to my hon. Friend the Member for Cardiff West that the equitable remuneration model is the very least we should be doing. It is a start in terms of addressing some of the inequities and musicians getting a just share for the music they produce. What I do not understand is the resistance to what is a very modest proposal to address this issue. I cannot think of any other way that we could address it. The Select Committee spent hours and hours and months and months looking at this issue, trying to find another solution and another way forward, but none was forthcoming.
The music industry did not give us any suggestions or ideas when it was asked about this. It did not even give us the data required—I think that DCMS had to pay for the data from the BPI in order to get it. The industry has not engaged with us; it has not come up with solutions. The only solution on the table is the modest proposal from my hon. the Member for Cardiff West for an ER distribution regime that could apply to streaming.
What I do not understand is why the Government have not taken it on board enthusiastically so that we can get the Bill into Committee. Let us get all the partners together. It is not good enough for the BPI and the labels to stand aside and not look at this issue properly. I am confounded and bewildered by the objections from the Association of Independent Music. I thoroughly do not understand them, and I will have to speak to the association, because it has to try to make it clear to me how independent music providers, producers and record labels are being disadvantaged. I just do not see it, and I am bewildered as to their objection to this proposal.
On what basis, I am keen to ask, does the hon. Gentleman think the Government are resisting the proposal, seeing as I have not spoken yet?
I am perhaps getting ahead of myself. I am really grateful for that intervention from the Minister, because it is extremely helpful. I know he is a fair-minded and consensual Minister—one who tries to build consensus across the House. This is a great opportunity to do that, because I think he will hear from hon. Members today that there is a lot of enthusiasm for the proposal. It is a means to fix a problem that needs resolving. I am grateful to him, and I will listen very carefully to his remarks.
Let me finish by saying that this issue needs to be sorted. I have waited 20 years for a Bill like this. I have been in the music industry and seen exactly what it is like. It is a field of dreams: if someone makes it big, they can escape and evade their background and go on to huge success and riches. It is an amazing industry and great to be part of. As a musician, I woke up every day thrilled about what I was doing: walking on to a stage with people cheering—not like in the Chamber, with everybody baying and aggressively intervening. Those were different days indeed.
I am just about to finish—I want to allow other people to speak.
We have this opportunity to fix this issue, and I am encouraged by what the Minister said. We have an opportunity to resolve a really serious situation, and I really hope the Government take advantage of it.
(4 years, 6 months ago)
Commons ChamberI am grateful to the hon. Gentleman for raising this issue. There have been cordial conversations and negotiations between our negotiator David Frost and Michel Barnier, and I would not want to prejudice those by making any criticism of Michel Barnier, other than to say that he will negotiate hard on behalf of the Commission, but we will negotiate hard on behalf of the whole United Kingdom.
Is it not the case that what businesses want more than anything else is certainty that this Government will not do anything to compound the economic difficulties caused by this pandemic? The Government could not of course do anything to stop covid coming to our shores, but it is in their hands to stop further economic misery from a disastrous Brexit. Does the Minister agree that the last thing businesses need is more economic turbulence and that the certainty they seek is one that says there will be no no-deal Brexit and there will be an extension to let them recover from this pandemic?
I am grateful to the hon. Gentleman for the point he makes. There will not be a no-deal Brexit; we have a deal, and that deal was legislated for in the House of Commons. I think he is right: it is important that we give business certainty, and I think one of the best ways of giving business certainty is recognising that we respect referendums. That is why this House has voted to respect the referendum that saw the British people take us out of the European Union, and I would urge him and others to respect the referendum that made it clear that the people of Scotland want to stay in the United Kingdom, instead of having the damaging uncertainty of an indyref2 hanging over future investment decisions.
(5 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I beg to move,
That this House has considered the Sixth Report of the Scottish Affairs Committee, The future of the oil and gas industry, HC 996.
It is a pleasure to serve under such a distinguished member of the Panel of Chairs today, Mr Walker. I am grateful to see so many members of the Scottish Affairs Committee in their places and ready to go for this very important debate.
The Scottish Affairs Committee decided to hold an inquiry into oil and gas because of the unprecedented uncertainty caused to the sector by the dramatic fall in oil prices at the end of the last decade. We were interested in assessing how—or indeed whether—the sector had recovered and in better understanding the contemporary issues in the industry and how new innovations and interventions had played out.
Critically, we wanted to explore the readiness of the sector for transition and decarbonisation. We also wanted to look at its preparedness for diversification of the skills acquired over 40 years of production and development in the North sea.
We are, as always, grateful to the many people who gave evidence and contributed to our inquiry, and for the support we received from the sector. We held six evidence sessions and received more than 30 written submissions to the inquiry. We are particularly grateful to the Oil & Gas Technology Centre in the constituency of the hon. Member for Aberdeen South (Ross Thomson), which hosted one of our evidence sessions and kindly lent us their premises to launch the report a few short weeks ago.
I should say first that the sector is in a reasonably good place. The resilience shown by our oil and gas industry in the face of such turbulence is to be commended. The tenacity that has been shown by the workforce and others involved in the industry is something we all recognised, and which has supported the sustainable recovery that has been put in place in the past few years. There remains a strong and positive future for Scotland’s oil and gas sector, and the opportunities of a just transition to a decarbonised future are there to be grabbed.
Scotland remains at the forefront of the global oil and gas industry, which contributed £9.2 billion to the Scottish economy in 2017 and supports 135,000 jobs in Scotland. Only this week, the Oil and Gas Authority predicted that 11.9 billion barrels will be extracted by 2050—a hike of almost 50% from the forecast four years ago of 8 billion barrels. That shows an industry and a sector in a reasonably healthy condition.
More than that, Scotland’s oil and gas is central to the UK’s energy security. It is forecast that two thirds of the UK’s primary energy needs will be met by oil and gas until at least 2035.
The hon. Gentleman is speaking of the benefits to the United Kingdom of Great Britain and Northern Ireland. I have some constituents who depend on the Scottish oil and gas sector for their employment. The skills that they have learned are not specific to Scotland—they are for everyone. Does the report acknowledge that all regions of the United Kingdom benefit from the Scottish oil and gas sector and it is therefore good for everyone?
The hon. Gentleman is of course absolutely right—this is a UK-wide industry, which has a footprint in most nations of the United Kingdom. Practically every region of England has some link to the supply chain serving the oil and gas industry across the UK. He is absolutely right to remind us that this is a UK-wide industry and one that we should all be very proud of, whether we are in Northern Ireland or in rural Perthshire.
It will not surprise hon. Members, however, that the inquiry found that the sector is still facing unprecedented challenges. Fluctuation in the oil price has hit companies with extreme uncertainty, particularly those working in the supply chain, while the rate of new well exploration has nose-dived. At the same time, the industry needs to properly prepare for the decline in production that will inevitably happen, to ensure that the economic benefits and highly skilled jobs the sector has acquired in and brought to Scotland are not lost.
The industry also has to find new ways to reduce its carbon footprint and use its skills and engineering knowledge to help develop low-carbon and renewable technologies. That is no small task, and those challenges are at the heart of the Committee’s report. We address how the Government should support the industry while it gets ready for production to decline. How do we meet the UK’s energy needs, of which oil and gas will remain a major component, while meeting our climate change obligations?
We believe that the best way for the Government to support the industry through those challenges is to agree an ambitious sector deal. A sector deal backed by a combined investment of £176 million from industry and the Government could deliver £110 billion for the UK economy, with particular benefits for Scotland and the north-east of Scotland. The funding would support three centres of excellence, focused on transformational technology, underwater innovation and decommissioning.
When the Minister for Energy and Clean Growth, the right hon. Member for Devizes (Claire Perry), appeared before the Committee in December, she said that she was not able to go into the detail of the deal, which we totally accepted given that the Government were still to properly design it and come forward with what would happen. She said that progress would be announced in weeks, not months. It is not many months since December, but it is certainly weeks. I know the Energy Minister could not join us today because of other pressing business, but we are fortunate to have the Minister responsible for sector deals with us. Perhaps he can update us on the progress and shape of the sector deals.
I am certain that any delay will, of course, be down to the Government’s taking very seriously the recommendations in our report, and designing the deal around some of the very useful recommendations that we made—that the sector deal is forward-thinking and sets up the industry to meet the challenges of climate change, decommissioning and of the industry’s future beyond the UK continental shelf head on, rather than focusing on the usual support for maximisation of production in the short term. The days of short-termism in the North sea are over. Long-term planning and strategic thinking is required, and those are the priorities for the deal that the report outlines.
I will explain the detail a little further. First, a sector deal must capitalise on the opportunities arising from decommissioning. The North sea is not only going to be the first major basin to go through large-scale decommissioning; without doubt, it is also one of the most challenging environments anywhere in the world for decommissioning. As one of the witnesses said to us in an evidence session, if we can decommission a rig in the North sea, we can decommission a rig anywhere in the world. Scotland has an unmissable opportunity to export its decommissioning knowledge to the rest of the world and the Committee has therefore called for the sector deal to be accompanied by a Government decommissioning export strategy to anchor a global decommissioning industry in the north-east of Scotland.
The sector deal also needs to deliver on reducing the cost of decommissioning. We were surprised when we heard the range of estimates of the cost of decommissioning—the gulf between the lowest and highest point was quite extraordinary. We need to see that cost reduced for UK taxpayers, because half of the decommissioning cost will still be met through the Treasury and by taxpayers through tax relief.
The sector must find ways to transfer its unique expertise to other sectors of the economy so that the jobs are not lost when oil production stops. One of the most impressive features—I think all members of the Committee recognised this when we were taking evidence for the report—is the range of skills available to us from North sea exploration. The skills acquired over four decades of production are among the most impressive to be found in the oil and gas sector anywhere in the world. It is absolutely imperative that the skills, expertise, talent and energy that have been built up in the sector are not lost as we move towards decommissioning and the ending of production.
We heard that there is no end to the opportunities available if we get decommissioning right. Sectors including aerospace, data analytics, marine and offshore engineering, digital manufacturing, satellite technology and offshore wind are all open for skills and technology transfer. We were particularly taken by the opportunities in the renewable sector, and we call for the sector deal to contain specific and measurable proposals for how it will improve skill and technology transfer to the sector. Scotland gained by acquiring North sea oil. It is questionable whether we secured the benefits of discovering North sea oil; we must not lose any benefits of what happens next with renewable technology. The skills acquired in the North sea are perfectly fitted, and could be adapted, for use in renewable energy.
The hon. Gentleman is speaking very well about the work of the Committee in this regard. We worked very well to produce the report. On the redeployment of skills as the supply of oil continues to diminish, paragraph 82 of the report identifies fracking as an opportunity for these skills to be redeployed. Colette Cohen, the chief executive of the Oil & Gas Technology Centre, said that fracking would provide
“increased opportunities for the workforce”
and
“for the technologies and skills we already have.”
Does the hon. Gentleman agree that there is an opportunity to continue to use these skills in fracking and connected industries?
I had a sneaking suspicion that I would secure an intervention based on the hon. Gentleman’s desire for fracking to be included in all this. As he knows, there was a robust debate among Committee members on the value of fracking and what we should say about it in the report. He knows that I do not share his views, although I am aware of the evidence that was given sincerely by some members of the sector. The Committee agreed a consensus that this was something we were not really concerned with as we went forward, and we have left it as such in the report.
Yesterday in his statement the Chancellor talked about banning gas from new homes in 2025. Surely we have to look to the benefits of oil and gas in the future. Is that not a worry for us?
Absolutely. I was intrigued by the message from the Chancellor yesterday, when this was mentioned. Yes, there are huge opportunities for us. I think the hon. Gentleman will agree that it was mightily impressive to see the things that could come and how these skills could be applied and transferred. Perhaps the Minister can say what more work could be done to ensure that we get this. We would be grateful for any insight into the conversation he has been having with the sector on skills transfer.
The sector deal must bring forward proposals for how the sector will address its carbon footprint, both in the process of producing and extracting oil and gas, and by finding ways to reduce emissions from their use. The report received a mixed reaction from some environmental groups—I will put is as delicately as that. That surprised me, due to the range of recommendations we made and the care and diligence that we gave to shaping up some of the transition recommendations. We believe in a just transition and said as much in the report. We believe that if that is achieved, we will get to a new future—a green and transformative future for the sector.
I agree with the Chairman of the Committee, who is speaking very well about the report. We received criticisms from Friends of the Earth, for example, which said that there was no coverage of the impact of climate change. Does he agree that the organisation had clearly not got as far as chapter 6?
Absolutely. When the report came out, all of us on the Committee were quite surprised by the scale of the response. I do not think there was a true examination of what we had in the report. We say in it that a transition is required, but it has to come from a position of strength. We cannot do anything that would compromise our ability to have a viable and sustainable sector that is in a position to carry out the just transition that environmental groups are looking for.
The hon. Gentleman is being very generous with interventions. One of the things that I noticed in the report was the impact on fisheries. The Scottish Fishermen’s Federation referred to the retention in the seas of artificial rigs and so on, which might disadvantage the local fishing community. What consideration did the report give to that?
I was not going to mention this, but it was a fascinating feature of the report; I am really grateful that the hon. Gentleman has drawn my attention to it. We took a lot of time speaking to environmental groups, particularly some of the wildlife groups, about sustainable fisheries. There was a suggestion of switching from rigs to reef: to leave the infrastructure in place as a magnet and attraction for wildlife and fish species.
We received very mixed evidence on that. One group told us that in the gulf of Mexico, where this project had been initiated, people had to drag the reefs off the seabed, take it onshore to clean it, and then put it back again. One recommendation in our report is that the environmental groups have to decide among themselves about the best way forward. We encourage that debate among our friends in environmental sustainability groups, and I am grateful to the hon. Gentleman for raising the issue.
We were struck by the importance of carbon capture technology for the long-term future of the industry. The Committee on Climate Change told us that without this technology, decarbonisation of the sector will happen much more slowly and be more costly. This is one area where the Government are ahead of the industry, having announced £45 million of funding for carbon capture innovation, with more potentially available from industrial strategy funds. I know that particularly pleases the hon. Member for Banff and Buchan (David Duguid), because most of that investment will be in his constituency. It is right that it should be, because of the infrastructure that exists there.
We believe that the industry needs to step up its contribution in this area, and that the sector deal must contain a detailed proposal from the industry on how it will support the development of carbon capture technology and how that progress can be measured. The oil and gas sector has a bright future ahead of it.
I am very impressed by the report. Oil and gas obviously have an enormous footprint in my constituency. Does the hon. Gentleman welcome the fact that the UK continental shelf oil and gas industry operates in what is recognised as one of the best fiscal regimes in the world, and does he welcome Her Majesty’s Treasury’s fiscal policies on oil and gas?
Obviously. It goes without saying that some of the fiscal support that has been given to the oil and gas sector has been welcome, and it is of course necessary. I think we are going to the next stage, which is the sector deal initiative. That is now critical, according to the report and what we found in the course of the inquiry. That type of investment will be required to try to ensure that some of the things highlighted in the report take place.
We believe there is a bright future for the industry; it is now up to the Government to respond with how they will help the industry to secure it. I hope that the Government and industry rise to the challenge of the report and secure Scotland’s future as a global leader in energy technology for decades to come. We have 30 to 40 years, and we have the opportunity to maximise economic recovery. We now have the ability to ensure that we can transition to a new type of future for the North sea. I am sure that with the right type of approach and the right type of mentoring and support, we can get there. Our oil and gas industry still has a viable future.
I am grateful to you once again, Mr Walker. I thank everyone who has contributed to a very fine debate, which has touched on and explored most of the issues in the report. It is a report that all the Committee are proud of, and I am glad to see so many Committee members here, contributing and making their own particular points.
In particular, I am impressed with the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney), who reminded us of very real trade union-related issues that we touched on in the report. We took evidence from the trade unions, as he will remember from the visit to Aberdeen. We heard about his personal tragedy—something that was taken very seriously. Safety at work remains a live issue throughout the industry.
I am grateful to the Minister for the update on issues to do with the sector deal. I recognise that we are making solid progress on the global hub for decommissioning, but we need to hear a bit more about the other ambitions we mentioned—things that we believe should be included in the sector deal—particularly as regards transformational technology and underwater innovations.
We have a real opportunity to be world beaters here, and we cannot lose it, because it is so important to the sector. The skills that have been acquired over the decades of production in Aberdeen and the north-east must be utilised to full effect, and we must ensure that the investment follows that; £178 million of investment between Government and industry could return something in the region of £110 billion for the whole UK, but primarily for Scotland and the north-east. We must ensure that we get that investment and that support from Government.
I am grateful to the hon. Member for Waveney (Peter Aldous) for reminding us again that this is a UK-wide industry, with a footprint in practically every nation of the UK and every region. That is something we recognise. I am also grateful to my hon. Friend the Member for Dunfermline and West Fife (Douglas Chapman) for reminding us about the history of all this; I know this has been a consensual report and we have all ensured that we can agree on it, but in Scotland we still have issues about not being able to secure the benefits, and we look across the North sea at what Norway has secured and acquired. We will leave that to one side just now, but it is worthwhile our being reminded of that as we go forward, and seeing what we can do to ensure that we continue to see the fruits and benefits of the North sea.
The key point, which I think everyone touched on, is ensuring a just transition from a hydrocarbon past to a low-carbon future, and that the investment, skills and expertise carry on into the next stage. I do not like talking of doing away with what we have, or a lack of production. A new adventure is in store for the North sea, and that will include all the things in this report—transformational technology, underwater innovation and decommissioning.
We have a great future, if we are able to ensure that all the wonderful skills that have been acquired can be properly utilised in the next stage of the story of the North sea. I look forward to seeing that chapter written with the support of both Governments, and of Members of Parliament right across this House.
Question put and agreed to.
Resolved,
That this House has considered the Sixth Report of the Scottish Affairs Committee, The future of the oil and gas industry, HC 996.
(7 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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I welcome your chairing, Mr Gapes. I also congratulate the hon. Member for Selby and Ainsty (Nigel Adams) on the fantastic work he does in stewarding and chairing the all-party parliamentary group on music. I refer Members to my entry in the Register of Members’ Financial Interests.
We do not do much wrong when it comes to intellectual property. We are an IP-rich and creative nation, with an IP framework that is pretty much the envy of most comparable nations around the world. Based on any global IP indexes, the UK is about the top country in all areas, such as protection of copyright, looking after patents and enforcement. We need that because we are an IP-rich nation with a thriving creative sector and an abundance of world-class creative industries. In any of the major disciplines in the creative environment—whether it is music, TV, design or fashion—the UK is among the top three. It is imperative that we create the optimum conditions for our inventors, creators, designers and wonderful artists to develop their businesses and grow, so that we can continue to do well as a nation.
Intellectual property affects every single one of us and impacts on nearly every aspect of our day-to-day lives. The content we consume, support for our small businesses and the research and development arms of our multinational companies are all predicated on a successful IP framework. We tinker and mess with it at our own risk. It is vital to economic prosperity in the UK and is the foundation from which people can derive value from their innovation and investments.
The statistics speak for themselves. As the hon. Member for Selby and Ainsty said, the creative industries alone are worth £87.4 billion a year in gross value added. They employ almost 1.5 million people in the UK, and about £1 out of every £10 of UK exports is predicated on IP-supported industries. It is perhaps the fastest growing sector in our economy. Is it not a wonderful way to reindustrialise our nation, by building and growing our economy on the imagination, creativity and talent of the people of this country? What a fantastic way to grow our economy.
It is particularly good to see the Minister in his place. He is the first Conservative Minister with responsibility for intellectual property we have had in this House; all the others have been in the House of Lords. That is a welcome development, because it allows hon. Members with an interest to debate these critical issues with the Minister and question him at departmental questions. I think he is the first IP Minister in this House since the right hon. Member for Tottenham (Mr Lammy) back in 2008. I look forward, as chair of the all-party parliamentary group on intellectual property, to working closely with the Minister. I would not say that it has been chaotic, but there has been an issue with how intellectual property has been stewarded by this Government. It has been shunted between various Departments, with no clear chain of command. At last, we have that, and I hope the Minister will take full advantage of the opportunities it presents.
As well as being valuable to our economy, our IP framework is constantly evolving, and we have to deal with current issues and new ones that await us around the corner. That is because IP and most of the things it is responsible for stewarding and looking after exist on the very cutting edge of technological innovation. We have to remain vigilant about where the dangers will next appear and how they will present themselves.
I am on my second Digital Economy Bill since joining the House. Looking around the Chamber, I note that the hon. Member for Cardiff West (Kevin Brennan) and the right hon. Member for Wantage (Mr Vaizey), who has just taken his place, bear the scars of the previous Digital Economy Act 2010. We just about managed to escape that one unhindered and in one piece. We now have a second Digital Economy Bill going through Parliament. There have also been two significant reviews of our IP framework over that period: the Gowers review and the Hargreaves review, which concluded a few years ago. Both of those have flavoured the Government’s response to the big issues in intellectual property.
The APPG on intellectual property has produced a series of reports and reviews, one of which was published today, about protecting intellectual property. I hope the Minister will give a considered response to the many things we discovered in the conversations we had with many stakeholders. I will turn to some of the conclusions we reached in the course of my contribution.
First, I want to look at the big external issues that impact significantly on our intellectual property framework. They do not come bigger than leaving the European Union. The most significant innovation in the European Union is the delivery of the digital single market. So much effort and energy has been put into that really important work over the past few years, and we are coming close to its conclusion.
While the digital single market has presented a number of difficulties and issues for our creative industries in the United Kingdom, it would be better to be in there, shaping that agenda, than to have to respond to what has been decided by others. Leaving the European Union will mean we have no access to shaping the agenda for the digital single market. The UK has been a strong pro-content industry voice in those EU deliberations, which sometimes balances the views of other member states that do not have the same sort of interests we do in ensuring that the content agenda and industry are properly protected. That will be lost when the UK leaves the European Union.
Does the hon. Gentleman agree that the single largest market for digital is actually not a country but the cloud? Where the legal protection resides for people who put their IP on to the cloud is really important, so making the UK the home of legal enforcement will therefore be essential.
It is difficult to disagree with the hon. Gentleman on that. We have to look at where the force of traffic is going, particularly when it comes to things like copyright, which is critical for a number of our creative industries. The copyright directives we have signed up to were designed within the European Union, but we are leaving the EU at a critical moment in the development of the digital single market. That could have a massive impact on our own IP legislation.
Most people we spoke to in the course of the APPG’s inquiry said that they would prefer to see the existing legislative framework maintained. We also looked at identifying some of the gaps in legislation that will have to be fixed in order to ensure that UK creators and businesses are properly able to protect their IP in a global market. For example, the erosion and loss of access to EU design rights for our design industry post-Brexit would have a significant and negative impact on our designers.
I also chair the all-party parliamentary writers group. We have great concerns about retaining the harmonisation of copyright across Europe. Europe is the largest market for books and will continue to be an important market for book publishers and writers in the future. It is therefore imperative that the UK’s copyright legislation is consistent with remaining EU members, to reduce additional costs for business.
We have two years left at the top table when it comes to the negotiations, consultations and conversations about the shaping of the digital single market. I encourage the Minister to use those two years as productively as possible, to ensure that the UK’s content industry will be properly looked after and represented after we leave the European Union. I hope he will reassure me today that IP rights and IP-supported business will be at the heart of any new trade arrangements and agreements we have with other nations throughout the world in the next few months and years.
As well as concerns about the EU and external issues, the APPG on intellectual property heard from witnesses about a number of emerging threats being faced by IP owners. What concerned us more than anything was the sheer range of those threats and how quickly they are emerging and developing. While technology provides huge opportunities for businesses to expand their market and access new customers, it can also undermine a creator’s ability to commercialise their intellectual property.
Those who seek to profit from IP infringement are more than prepared to exploit new technological developments to challenge the law, and they do not come any bigger than digital TV piracy. It is absolutely right for hon. Members today to have focused their remarks on the real threat of digital TV piracy. The hon. Member for Cardiff West is right that the Digital Economy Bill presents an opportunity to put that right. He is also right to say how slow Government seem to be to respond to those emerging threats and challenges. He and I both remember the early days of the music industry, which faced the same range of challenges, being at the forefront of technical innovation. The first Digital Economy Act, of 2010, probably had the music industry in mind more than anything else when it tried to deal with the issues of piracy by the sending of notifications and by talking about certain measures that could ensure that rights holders and artists would be properly protected. The Government have an opportunity with the current Digital Economy Bill to deal with the threat that has emerged and is now completely apparent. Nineteen per cent. of households have access to IPTV boxes. It is now television—production companies and satellite broadcasters—that is at the forefront of the challenges, and the Government have an opportunity to deal with that and put it right.
Another threat to intellectual property that we have heard about in the all-party groups is stream ripping. That is an increasing problem for the music sector and threatens not only musicians, but the new, legitimate safe-harbour streaming services. Again, the hon. Member for Selby and Ainsty was right to raise it as a concern.
What concerns me more than most of the things that we have heard about is the parasitic or copycat packaging used by competitors to boost sales by confusing and misleading consumers. That is not a new or emerging threat; it has existed for a long time, and we constantly hear about and return to it in the all-party IP group. However, something has to be done about it now. When we go to a supermarket and look for our favourite products, we see all the poor copies sitting right next to them—the packaging is deliberately designed to confuse customers. The Government now have to challenge this. It is totally legal at the moment, but it short-changes consumers and lets down some of our famous brands, which would expect customers to be able to go straight to them.
We have heard about a few issues with 3D printing. That offers immense opportunities for creators, businesses and consumers, but also presents many risks, which we are understanding more and more. Responding to the challenges is not easy, but I think that we have a means of doing that with the Digital Economy Bill. It is some six years since the last digital economy legislation and, if possible, the Government should look to do what they can to address some of the new challenges in the current Bill. It certainly provides an opportunity to tackle digital TV piracy.
There are some positive developments, as we have heard. The new voluntary code of practice agreed by the Government and some of the web hosts is progress. It does not solve or deal with the problem conclusively, but it is right to characterise that arrangement and agreement as progress. The code, which has been signed by Google, Bing, BPI, the Motion Picture Association and the Alliance for Intellectual Property, seeks to demote links to websites that are dedicated to infringing content for consumers in the UK.
While I was listening carefully and intently to my colleagues today, I had a look at some of the sites again. We still find that illegal sites selling artists’ works appear at the top of any searches too regularly, so the code is welcome and is clear progress. It shows what can happen when we consistently and continually ask the Government to do something. It was a Conservative party manifesto commitment. It is right to encourage Government as much as possible to focus on how this is all going to work out and not to rule out the prospect of legislation if it does not work. I think it was the hon. Member for Cardiff West who said that if there is no stick to encourage some of the web hosts, a further sanction will be needed—the Government should consider legislation if the current measure does not look as though it will work.
I also want to support the hon. Member for Selby and Ainsty on what we refer to as the value gap. We must ensure that the artists who produce all the wonderful works that we admire and appreciate are properly rewarded for the work that they do. Too many services use copyright-protected content to build businesses. They do not actually create any of the works—they just host them—but they seem to be earning the huge profits on the back of the artists and creators. They create that gap whereby they are earning millions and millions of pounds, while we still see struggling artists in our communities. We need to see the likes of Facebook, YouTube, Dailymotion, Bandcamp, Vimeo and Metacafe properly dealt with and see whether we can reduce the value gap. UK Music’s “Measuring Music” report, which we have heard about, highlighted the fact that one service, YouTube, increased its payments to music rights holders in 2015 by 11%, despite consumption on the service growing by 132%. That clearly demonstrates a value gap.
The hon. Gentleman highlights a very important issue. Would he welcome, for example, YouTube developing a subscription service so that creators could benefit more widely from any income driven through there?
The hon. Gentleman makes a fantastic suggestion. We have to encourage YouTube, which is, as we can see from the figures, one of the key players in all this, to see what it can do to ensure that musicians and artists are properly rewarded.
The growing significance of the music streaming market must not go unremarked. In the last four years, the UK music industry has grown by 17%, and the same period has seen a massive shift from consumers owning music to streaming it. The value of subscription streaming services jumped from £168 million in 2014 to £251 million in 2015. Consumers can access content by a means that was unavailable to our generation—I think I am roughly the same generation as the hon. Member for North Antrim (Ian Paisley)—while we were growing up. There are several means and methods whereby people can access the finest, newest content in the most convenient way, but as we consider all these things, and great though they are, please let us never forget the artists who produce those fantastic, wonderful works. What is the point of having all these hosts and all these things available to us if we do not treat properly those who produce the content? When we consider things such as the value gap, it is very important that we put the musician at the heart of all this. IP rights exist to protect our artists, creators, inventors and scientists, but it is vital that we get the IP framework right and remain vigilant for new threats and challenges.
It is a pleasure to serve under your chairmanship in this debate, Mr Gapes. I am grateful to my hon. Friend the Member for Selby and Ainsty (Nigel Adams) for securing this important debate and welcome the contributions of many of the hon. Members who have spoken.
During this important debate we have already heard about some of the many ways in which intellectual property and the creators and creative minds behind it contribute to the British economy. The Government recognise the importance of IP, as we expressed in our manifesto, in which we committed to making the UK the best place to patent, innovate and grow a business and to protecting IP online by working with internet service providers. I will use this opportunity to outline some of the steps that we are taking to make that happen.
It is clear that IP influences many parts of our daily lives and has an undeniable role to play across the economy. As hon. Members have noted, we as a country are rightly proud of our creative and innovative heritage. Our TV and film industries continue to enjoy worldwide success and, as anybody who watched the Brit awards last week knows, the same is very much true of our music industry, which produces what seems like an endless supply of chart-topping talent. The likes of Stormzy and Skepta were mentioned by my hon. Friend the Member for Selby and Ainsty, but there are others, such as Rag’n’Bone Man and Ed Sheeran, all of whom delivered great performances last week.
Our cutting-edge research base stands at the forefront of global innovation. The hon. Member for Sefton Central (Bill Esterson) asked what commitment the Government were making to support that R and D base. I ask him to look at the recent autumn statement, in which we delivered the single largest increase in research and development expenditure in 40 years, and we are committing a further £2 billion a year by the end of this spending review period to R and D. That clearly underlines the Government’s commitment to this country’s remaining at the cutting edge of science and innovation for years to come.
This is not just about pride; the statistics speak for themselves. Every year since 2001, investment in intangible assets has outstripped investment in physical assets. In 2014, UK businesses invested over £130 billion in intangible assets—£11 billion more than in physical assets. Over half of that £130 billion was protected by IP rights. That not only highlights the sheer demand for UK IP rights, but demonstrates the fact that many businesses, innovators and creators already recognise the benefits of IP protection, of which there are many.
IP rights encourage investment in research and innovation, reward original design and branding, and support all types of creativity. Businesses that manage their IP well grow faster and are more resilient. The use of patents, trademarks and designs is linked with the better creation, transfer and use of knowledge and higher firm productivity. One reason behind that is that the UK’s robust IP regime plays an essential role in improving the balance between risk and reward for innovation and creativity.
Hon. Members have noted that IP enjoys a prominent place in our industrial strategy Green Paper, in which the Government touch on IP in several ways. For example, we have announced a new piece of independent research on approaches to commercialisation in universities, as the hon. Member for Sefton Central mentioned. That will look at approaches to commercialisation, including how universities approach licensing intellectual property. That is just one of a number of announcements that were made in the Green Paper, which sets out the Government’s plans for a long-term strategy that builds on our strengths and prepares us for the years ahead.
The Prime Minister has been clear that we need an economy that works for everyone. The Green Paper marks the beginning of a dialogue to develop a strategy to deliver that. The UK already boasts one of the best independently judged IP systems in the world—the hon. Gentleman mentioned the Taylor Wessing ranking, which puts us third—but the Green Paper clearly signals the steps that the Government are taking to ensure that our IP system is not just fit for purpose, but unlocks the potential for creativity and innovation up and down the country. That includes a commitment to review how to maximise the incentives created by the IP system to stimulate collaborative innovation and licensing opportunities. The emphasis is on developing a strategy that spreads the benefits of our economic success across the UK. That is why the Government have also announced that IP representatives will be placed in UK cities in the northern powerhouse and the midlands engine—Manchester and Birmingham—to build local capability to commercialise intellectual property.
Let me turn to the importance of IP enforcement, which was a theme in several hon. Members’ remarks. Wherever the market—at home or overseas—the success and economic value of the UK’s intellectual assets highlights the potential risks when IP rights are not respected. The Government take IP enforcement seriously and believe that effective enforcement plays a vital part in supporting our creative and innovative industries. Effective IP enforcement also plays a vital part in denying funds to the many organised criminal gangs involved in counterfeiting, and in mitigating the harm—mentioned, for example, by the hon. Member for North Antrim (Ian Paisley)—caused by unlicensed manufacturing, which often goes hand in hand with labour abuse and environmental abuse.
The UK boasts one of the most innovative IP enforcement networks in the world, but we can never afford to rest on our laurels.
In our inquiry into protecting intellectual property, we heard just how threadbare trading standards is now, with the smallest resources that have ever been applied when it comes to protecting some of these areas. Will the Minister promise to look at that and perhaps to address some of the failings in resourcing trading standards?
We certainly want trading standards to perform the function that we need it to perform, and we believe that the resources are in place to enable it to do so.
As I was saying, the UK boasts one of the most effective and innovative IP enforcement networks in the world, but we cannot afford to rest on our laurels. There are always new challenges to address. My hon. Friend the Member for Selby and Ainsty and the hon. Members for Cardiff West (Kevin Brennan), for North Antrim, and for Perth and North Perthshire (Pete Wishart) were right to recognise the serious challenge that illicit TV streaming and IPTV boxes pose to our creative industries. We will vigorously combat the normalisation, as the hon. Member for Cardiff West put it, of that harmful activity. It is theft. Last Thursday, the Government published a call for views, as Members have mentioned, to determine whether the existing legislation is working to tackle this important issue. It would not be appropriate to pre-empt the outcome of the call for views, but if the case is made that legislative change is required, the Government will take the necessary steps.