John Bercow
Main Page: John Bercow (Speaker - Buckingham)
Mr Speaker
Order. Approximately 45 Members are seeking to catch my eye on this extremely important matter. I am keen to accommodate as many of them as possible, but if I am to do so, brevity will be of the essence. That can now be exemplified by a man of great experience and long service in the House of Commons: the right hon. Member for Hitchin and Harpenden (Mr Lilley).
Mr Peter Lilley (Hitchin and Harpenden) (Con)
I am grateful, Mr Speaker.
Can my right hon. Friend confirm that the reason we are dependent on foreign companies to build these nuclear power plants is that the last Labour Government sold off Westinghouse to the Japanese and then sold British Energy to the French when the current Leader of the Opposition was Secretary of State for Energy and Climate Change?
Given that the one area in which we retain nuclear expertise is in building small nuclear generators, will my right hon. Friend look closely at the proposals put forward by the noble Lord Ridley for building small nuclear reactors in future, to provide electricity and possibly an export market as well?
Barry Gardiner (Brent North) (Lab)
How much of the £16 billion of construction costs will the developers of Hinkley Point C be able to offset in tax reliefs and capital allowances? Does the Secretary of State consider it ironic that EDF has insisted on an insurance clause against his own party’s future policy by stipulating that the strike price will rise to reflect any future tax on or shutdown of the industry? While he is at it, will he explain why the strike price for the Flamanville sister plant in France is only £64—some 30% of the £92.50 he has negotiated?
Mr Speaker
I think that the hon. Gentleman should seek an Adjournment debate on the matter; in fact, on reflection, I think he has already had it.
Mr Davey
I said in my statement that the UK taxpayer can expect to gain £4.5 billion in corporation tax as a result of this, paid for by the investors, but it is even better than that; I have some very good news for the hon. Gentleman. Because we wanted to make sure that these companies could not rearrange their tax affairs after the deal and somehow reduce the tax funds that we were expecting to come to Her Majesty’s Treasury, we undertook a very unusual clause in our deal to make sure that, should they do exotic tax deals to shelter their tax liabilities, the strike price will reflect that and be adjusted downwards. That is how far we have gone to make sure that the taxpayer and the consumer are protected.
Mr Speaker
Order. If we are to mitigate the pressure on time, there must now be a particular premium on brevity in the remaining questions and, of course, in the Secretary of State’s answers.
Graham Stringer (Blackley and Broughton) (Lab)
The Secretary of State uses his fight against climate change and the need to reduce emissions to justify charging twice the market rate for energy, but this country has one of the largest carbon footprints in the world and it is increasing because of emissions input. Why does he not talk about that failure of his policy? Will he tell us what he is going to do about it?