Offshore Petroleum Licensing Bill

Debate between Richard Drax and Mark Garnier

2nd reading
Monday 22nd January 2024 Commons Chamber

[Richard Drax (South Dorset) (Con)]

The irony is not lost on me in this debate that every single one of us in this place wants the same thing. Normally when the whole House agrees on something, I think that something is wrong, but in this case I have no doubt that the whole House is right: we need to reduce our reliance on fossil fuels. What we are debating today and arguing about in this place is how we can get there in the most pragmatic way. This Bill is another example of the Government trying their best to do what is right at this moment in time, but I fear that the punitive taxes—I will ask the Minister more about those in a minute—will not help the investment that the Government say is so needed.

To rely more on our own gas and oil from the North sea is a necessity and full of common sense. It is a fact that we will be relying on fossil fuels for decades to come—a point that no one in this place denies. The UK has made some impressive advances in wind and solar, and a new generation of nuclear is on its way, although I have to say that we and the Opposition have been talking about nuclear investment for years, yet so little has been done. Wind and solar are excellent ways of generating power. I have not yet heard anyone here today say that when the wind does not blow and the sun does not shine—[Interruption.] I will come to tidal in a minute, if I may. The hon. Member for Brighton, Pavilion (Caroline Lucas) has just joined the debate, I think, but I will answer her point; Portland in my constituency has a huge tidal race. But it is a fact that when the sun does not shine and the wind does not blow, we do not get the energy we need. Also, as we have heard many times, we have cut our emissions by half; we are a world leader and have a record to be very proud of. Just touching on what the hon. Lady said about tidal, yes of course we have huge tidal races in this country, including in Scotland and in Portland off the coast of South Dorset in my constituency. If we can explore this and harness it to make it work—there are major technical issues, not least with sand and with salt water, which is very destructive—then she is absolutely right, it is a way of generating energy that I am sure everyone would support.

I have heard from several speakers today about the instability of the world we live in. That is very true and I do not have to rehearse why I feel that in my lifetime we are facing the most dangerous times on our planet. If we do not have the power to drive our economy and our homes, it would be strategically—quite apart from anything else—insane. We are an island nation, and I do not have to remind anyone in this House how significant energy independence is going to be in the event of a catastrophe. Here we have a Bill that will allow companies to apply for licences to safeguard domestic energy supplies. The Bill says that this will safeguard more than 200,000 jobs, enhance our security, reduce dependence on higher-emission imports from overseas and significantly prevent families and businesses from being unduly burdened, which to a certain degree they already are through the green taxes that everyone faces. So what’s not to like, you may ask—

[Mark Garnier (Wyre Forest) (Con)]

I am very convinced by the arguments that my hon. Friend is putting forward, but he has missed one useful point. Does he not agree that the generation of oil and gas in the North sea will generate tax receipts that can then be used to subsidise green energy production in other parts of the British economy?

[Richard Drax]

That point has been raised several times, and I totally agree that the tax receipts from investment in oil and gas play a huge part in our economy.

I might have this wrong, but as I understand it these companies will face 50% corporation tax and a 35% windfall levy. I would be grateful if, in his summing up, the Minister could say whether that is true. I am not an expert in the industry, but I think that chief executives, board members and shareholders would wince if, having been told that they have to do all this, they have to pay all that punitive taxation. They might say, “Why on earth should we do this in the first place?”