(3 weeks, 5 days ago)
Commons Chamber
Katie Lam (Weald of Kent) (Con)
Time and again over the past few months, and, indeed, in this debate, we have heard Ministers talk about the importance of energy independence, and they are right to do so. No country has ever succeeded without cheap and abundant energy. For energy to be cheap and abundant, its supply must be reliable. If we are dependent on energy imports from overseas, the supply of energy will necessarily be unreliable, as the disruption caused by recent events in the Persian gulf has made abundantly clear. But it is profoundly dishonest to talk of energy independence while making us more dependent on energy imports from abroad. That is exactly what the Government’s plans to ban new North sea oil and gas would do. They should, at the very least, be brave enough to admit that to the public.
Ministers say that there is no point in using our vast oil and gas reserves; they say that energy prices are set entirely on the international market, which means that increasing our domestic supply would have little to no impact on the overall prices. But that is not true. Gas is a highly localised market, specifically in the case of liquefied natural gas, which is gas that is turned into liquid, loaded on to ships and transported globally. The further those ships have to travel, the more expensive it becomes to deliver. If we rely on gas imports from the rest of the world, we will need to spend more money to bring that gas to Britain.
The vast majority of homes in the UK—87%—use gas for heating. We currently import half of the gas that we consume. If we produced more gas domestically, it would be cheaper to buy gas, meaning that heating bills would, in fact, come down.
Ms Billington
I know that the hon. Lady’s party is not very keen on experts, but I would refer her to Fatih Birol, the head of the International Energy Agency, who has pointed out that expansion of production of North sea oil and gas does not significantly improve the UK’s energy security, will not alter the UK’s status as a net importer and will take too long to affect global prices. He says that global demand for fossil fuels has changed permanently and we should, therefore, be prioritising renewables, nuclear power and electrification over further fossil fuel expansion.
Katie Lam
As I just said, 80% of houses use gas for heating. We cannot simply substitute that for renewables—it is impossible.
Returning to the issue of energy independence, producing more gas domestically would also make us more resistant to global shocks. We would be far better served if companies that provide energy in Britain were bidding on gas produced in this country, rather than gas produced halfway around the world. Not only would bills come down, but we would mitigate the risk of sudden cost increases as a result of supply restrictions elsewhere. Yet the Government are proposing a policy that would achieve exactly the opposite.
The demand for gas is not going away, much as the Government might wish that it were. Even if British homes move away from gas in the long term, it is absurd to impose higher bills on them in the short term in the name of ideology. Those on the Government Benches often talk of sustainability, but there is nothing sustainable about this situation. Families across the country are facing higher bills and extra taxes to fund this Government’s ideological commitment to intermittent energy sources. Many will be forced to do things such as postpone holidays or delay moving house to be able to afford the increasing costs imposed on them by this Government.
Meanwhile, businesses are being forced to cut back on staff or shut their doors altogether, because the cost of doing business is now simply too high. That means local pubs, family farms and nursing homes all being forced to shut up shop. For industrial businesses in particular, the situation is even worse. These are businesses in sectors such as AI and high-skilled manufacturing that can provide some of the best paid and most durable jobs, revitalising whole communities and enabling people to build successful lives for themselves. While China and India fuel their industrial expansion with new coal-fired power plants, British industry faces some of the highest energy prices in the developed world—they are the highest in Europe, and they are more than double the price paid by industrial businesses in the United States. We cannot hope to sustain an industrial base in this country, let alone grow it, while the price of energy is so vulnerable to global shocks. Why would anybody start a new industrial business in Britain under these conditions?
If this action is being taken in the name of climate change, it is proving to be a catastrophic failure. In the eight years between 2013 and 2020, China pumped out more carbon emissions than Britain has produced over the past 250 years. That is not just because China is a bigger country—per-person emissions from China are more than double those in Britain. We are sending our emissions abroad to countries such as China without making a dent in addressing global climate change, and British families and businesses are left to pick up the tab.
The Government’s plans on energy policy will leave us more dependent on overseas imports and will leave the British people worse off financially, without making any noticeable impact on global climate change. If the Government genuinely want to advance our energy independence, we welcome that, but they will not do so by wrecking domestic production and leaving us reliant on imports from abroad.