Great British Energy Bill

Sarah Champion Excerpts

Report stage
Tuesday 29th October 2024 Commons Chamber

[David Chadwick]

I thank the hon. Member for that contribution. De-industrialisation has been happening for a very long time across the United Kingdom, and we are yet to see a real industrial strategy that would restore the wealth, prosperity and jobs that used to exist across our industrial areas in the entire United Kingdom.

Wales stands ready to play its part in powering the United Kingdom once again, but this time Wales would like to experience the tangible benefits from these projects. In my constituency, Llangattock Green Valleys has the ambition to develop plans for a large, community-owned renewable energy scheme to supply premises in the Crickhowell region. The scheme will have a mix of technologies, such as solar, hydro, wind and storage, to give a year-round supply of energy. It will be developed from the start in consultation with the community. It will be managed by the community and the profits will benefit the community itself.

We Liberal Democrats are firm believers that this is exactly the model of community ownership that will provide communities with security and prosperity well into the future. It is for this reason that I urge all Members to support amendment 5 and ensure that the Bill puts the principle of community ownership at the very front and centre of what the Government are trying to achieve.

[Sarah Champion (Rotherham) (Lab)]

I welcome the Bill, which brings us one step closer to establishing this much-needed, publicly owned energy company. To quote the Secretary of State for Energy Security and Net Zero, my right hon. Friend the Member for Doncaster North (Ed Miliband), at the UN General Assembly, this is a Government who are

“willing to tell the truth”

and “show international leadership” when it comes to climate change. In that spirit, I would like to bring to the attention of the House the importance of upholding human rights and the principles of a just transition in our renewable energy supply chains.

I am heartened by the determination of our Front Bench to see human rights protected across our energy transition. When questioned on forced labour in the solar industry, the Secretary of State for Business and Trade, my right hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), stated that he

“would expect and demand there to be no modern slavery in any part of the supply chain”—[Official Report, 5 September 2024; Vol. 753, c. 418.]

In a similar vein, the Minister for Development, my right hon. Friend the Member for Oxford East (Anneliese Dodds), recently spoke about

“galvanising just energy transition partnerships, to making sure that everyone feels the benefits of green innovation”.

While GB Energy must ensure that everyone benefits from green innovation, it must also guarantee that no one suffers from it. However, I have grave concerns that if we charge ahead with our net zero transition without safeguards in place, we will knowingly be doing that on the backs of those in slavery. Let me outline why.

Wind turbines, solar panels, electric vehicles and battery storage all require large quantities of critical minerals. There is conclusive evidence of human rights abuses associated with critical minerals. The abuse is most severe and systemic in the Xinjiang Uyghur autonomous region of China, where the Chinese Government are systematically persecuting millions of Uyghur, Turkic and Muslim majority peoples on the basis of their religion and ethnicity. It is well documented that the lower tiers of our solar supply chains are concentrated there, and have a sinister dependency on state-imposed Uyghur forced-labour programmes. Those programmes have bolstered China’s global market share, which exceeds 80% across the whole solar PV supply chain. I raise these concerns not to undermine our business relationship with China, but because through the purchasing power of GB Energy, we can protect human rights around the world.

[Graham Stringer (Blackley and Middleton South) (Lab)]

My hon. Friend says that she does not want to undermine our commercial relationship with China. I do. China is carrying out genocide of the Uyghurs. It is an appalling country—or, rather, it has an appalling leadership, to be precise. It is trying to monopolise crucial supply chains around the world in order to oppress people. Surely we should be reducing our relationship and making ourselves independent.

[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.

[Ms Billington]

We should bear in mind that the regulations established by those other countries apply to all companies. It seems to me that we should be going in that direction, rather than simply saying that we will focus on one company, GB Energy. Given our high ethical standards, this is the kind of sectoral approach that we should be able to create ourselves, as an international leader.

[Sarah Champion]

My hon. Friend pre-empts me. This will work only if we do it across the whole of Government and in all sectors, and I want my Government to be leading the way on that. We have a hugely important role to play internationally, as well as in our own industries.

The UK’s failure to keep pace with our partners has resulted in the global supply chain splitting. Slave-made renewable products are being redirected to countries with weaker regulations, such as the UK. As the other place’s Modern Slavery Act 2015 Committee recently recognised, without forced labour import bans, the UK risks becoming a dumping ground for tainted products. Current legislation, such as the Modern Slavery Act 2015 and the Procurement Act 2023, cannot meet the scale of the problem, especially while human rights due diligence remains optional for companies.

I appreciate that the Department is looking into these issues through the solar taskforce’s upcoming solar road map, which I really welcome. However, the solar taskforce, made up mostly of industry voices, needs to have civil society and trade unions on the team for its work to be truly credible. That is especially the case given my concerns about Solar Energy UK’s solar stewardship initiative, or SSI, as I am doubtful that an industry-led solution can meet the scale of the challenges I have outlined today.

A just transition is not only about international workers’ rights; it is also about securing UK jobs and industry. Our energy strategy must prioritise green jobs and wealth creation here, and avoid fuelling growth in economies known for cutting corners. Following my discussions with the industry and unions, it is clear that the UK’s inadequate response to these issues is creating a competitive disadvantage for businesses here and an uneven playing field internationally. If GB Energy allows exposure to state-imposed forced labour, it creates a distinct risk for investors and businesses here in the UK.

The arguments I have laid out today have the support of unions, businesses and human rights advocates alike. They echo the sentiments of our Prime Minister, Foreign Secretary, Business Secretary and Energy Secretary. For too many years, tackling modern slavery has received a siloed, disjointed response from Government. We now have an opportunity to change that and to embrace cross-departmental, collaborative working. Renewable energy has a key role to play in our transformation to a low-carbon economy, but without placing human rights at its centre, our green transition will come at a grave cost.

This Bill is aptly named the Great British Energy Bill. It simply cannot live up to its name if it depends on modern slavery to achieve its aims.

[Mr Angus MacDonald (Inverness, Skye and West Ross-shire) (LD)]

I invite hon. Members to refer to my entry in the Register of Members’ Financial Interests. I thank my hon. Friend the Member for South Cambridgeshire (Pippa Heylings) for her commitment to our essential amendments, both in Committee and here today. I also thank the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton), who has been incredibly supportive of our ambition for communities to benefit from renewable energy. I have one little correction: Tom Johnston, who invented the hydro boards, and the Labour Government did not actually put in place a proper system whereby local communities could benefit. They supplied a lot of power to the south and the cities, but it was of very little benefit to those of us living in the highlands, even then.

The Government have argued that nothing in this Bill limits community ownership. That is almost certainly true, but as my colleagues and I have emphasised, amendment 5 would not restrict GB Energy; it would simply clarify that community-led energy is a priority.

The Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), recently experienced a powerful story of community-driven energy on his visit to the island of Eigg. Just 25 years ago, Eigg’s residents, frustrated by years of poor management and a lack of investment, took matters into their hands and purchased their island. The Eigg buy-out succeeded in 1997, sparking what is now a beacon of self-sustained energy. Since then, Eigg has moved away from fossil fuels, becoming the world’s first island to generate 24-hour electricity from a variety of different renewables. This small community of just 110 people demonstrates the innovation and resilience that flourish when communities are empowered.

Eigg’s journey is a true example of prioritising community ownership and how that drives forward sustainability and local resilience. To paraphrase the Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), community involvement is critical, not a mere “nice to have”. If we are to build the infrastructure of the future, we must ensure that communities benefit directly. Community-driven projects are key to making that a reality, so let us follow Eigg’s lead and put the Government’s own words into action.

The current Government have an opportunity here to show their commitment to cross-party collaboration by embracing community energy. We are all aligned on the goals, so let us not get bogged down by technicalities or party politics. The Minister knows of the huge cross-party support for community energy ownership. If this goes to a vote, do this Government really want to vote against community energy ownership? Let us show the people of Britain that this Bill truly supports the right to own and benefit from our natural resources through Great British Energy.

--- Later in debate ---

[The Secretary of State for Energy Security and Net Zero (Ed Miliband)]

I beg to move, That the Bill be now read the Third time.

It is a privilege to open the Third Reading debate—another milestone in setting up Great British Energy. In less than four months, this Government have incorporated GBE as a company, appointed Juergen Maier as its start-up chair, and launched its first partnership with the Crown Estate. Next will be the national wealth fund. Earlier this month, we announced GBE’s partnership with key public bodies in Scotland. We have also announced its headquarters in Aberdeen. We are acting on our mandate from the British people.

I want to thank everyone who has played a role in getting the Bill to this stage: the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), who has done an incredible job steering the Bill through Committee; Members across the House who have scrutinised the Bill in Committee; all the parliamentary staff who have worked on the Bill; and the fantastic officials in my Department who have moved at such speed over the last four months.

I also want to thank the witnesses who gave evidence to the Committee, all of whom were in support of establishing Great British Energy. I am sure that the House will be interested in the list. They include SSE, EDF, Energy UK, RenewableUK, Scottish Renewables, the Carbon Capture and Storage Association, Nesta, the Green Alliance, the Net Zero Technology Centre, the TUC, Prospect and the GMB. And they are not the only ones. I can inform the House that they join a growing list of supporters, including the CBI, the Aldersgate Group, Octopus Energy, E.ON, the Hydrogen Energy Association, the Scottish Chambers of Commerce, the Port of Aberdeen, the University of Aberdeen and, of course, the British people themselves, who overwhelmingly backed Great British Energy at the general election. Sadly, the only people you can find to oppose Great British Energy are the faction of a sect of a once-great party sitting on the Opposition Benches.

The reason for such support—this will be the argument behind politics for the next few years—is that this country recognises it is time to invest in Britain’s future and put an end to the decline of the last 14 years. That is the choice of this Bill and the choice of the coming years in British politics, and we should relish it: invest or decline.

[Sarah Champion]

I am fully supportive of GB Energy, but what assurances can my right hon. Friend give to the House that it will be a just transition, that it will be adopted across Government, and that the broadest sector will buy into it?

[Ed Miliband]

My hon. Friend has made really important interventions on this point. We have been clear that no company in the UK should have forced labour in its supply chain, and we will be working with colleagues across Government to tackle the issue of the Uyghur forced labour in supply chains that she has raised during the passage of the Bill. As part of that, we have relaunched the solar taskforce and we will work with industry, trade unions and others to take forward the actions needed to develop supply chains that are resilient, sustainable and free from forced labour.

Great British Energy is the national champion that our country needs, for three reasons. First, it is at the heart of our mission to make Britain a clean energy superpower. Every family and business has paid the price for our country’s exposure to volatile fossil fuel markets over the last two and a half years. A sprint to clean energy is the way to increase our energy independence and protect families and businesses. We need to invest in wind, solar, nuclear, tidal, hydrogen, carbon capture and more—geothermal too.

Secondly, Great British Energy will help to generate the jobs the UK needs, not just the power. Here’s the thing: our European neighbours recognise that a publicly owned national champion is a critical tool in industrial policy, and the good news is that after 14 years of industrial policy being a dirty, taboo phrase, it is back at the heart of policy making in this Government. Great British Energy is part of our plan to ensure that the future is made and built in Britain.

Thirdly, Great British Energy will ensure that the British people reap the benefits of our natural energy resources, generating profits that can be returned to bill payers, taxpayers and communities across the country. I know that many Members of the House are passionate about the issue of local power, so let me reassure them that the Government are committed to delivering the biggest expansion of support for community-owned energy in history.

Great British Energy is the right idea for our time and has in a short time won huge support. I am sorry that the Opposition have chosen to wallow in their minority status and stand out against it, but let me tell them: their vote tonight will have consequences. For every project that Great British Energy announces in constituencies around Britain, every job that it creates, every local solar project it initiates and every wind project it invests in, we will tell their constituents that they opposed it. They are the anti-jobs, pro-energy-insecurity party, and we will hang their opposition to GBE round their necks from here till the next general election. Invest or decline: that is the choice, and GBE is the right choice for energy security, bills and jobs. I commend the Bill to the House.