Tidal Lagoons and UK Energy Strategy

Debate between Stephen Crabb and Neil Carmichael

Tuesday 6th December 2016 Westminster Hall

[Stephen Crabb]

It would be fabulous to have a sense of the timeframe in which the Minister will be making his decision, but it might be unfair to ask him to provide one today, given that he probably has not yet seen the contents of the review. I do not even know the length of the report, and it might take a bit of time to digest. The key point raised by the hon. Member for Cardiff West (Kevin Brennan) is essential: we need a timely decision in the shortest possible timeframe.

The vision of harnessing tidal energy is exactly why Tidal Lagoon Power was started five years ago with the aim of providing home-grown, secure power from a fleet of tidal lagoons around the British coast that could provide low-cost, zero-carbon power for the next five generations, thereby building a new British industry of turbines, generators and turbine housing, with all the manufacturing and engineering jobs, skills and investment that comes with it. That is a compelling and exciting vision of energy and industrial policy coming together in the national interest.

[Neil Carmichael (Stroud) (Con)]

Does my right hon. Friend, and hopefully the Minister, agree that the key point about this and other projects is that they represent long-term investment? The strike price that this project will achieve underlines that this is a cost-effective way of producing energy.

[Stephen Crabb]

I agree with my hon. Friend, and I will address that point later. It is with a long-term view and an appropriate framework of support for the right projects that the prospect of a new UK tidal energy industry is within reach, and with it a source capable of providing 10% or more of the UK’s total electricity requirements.

--- Later in debate ---

[Neil Carmichael]

I thank my right hon. Friend for giving way a second time. The key point here is that one project will help to start the next project, and therefore another and another. That is the central reason why this project as a whole is important: it will create more opportunities still.

[Stephen Crabb]

Again, my hon. Friend demonstrates his knowledge of the potential industry that we are discussing. His point is well made.

It is envisaged that the machining and pre-assembly of the turbines will take place at a new purpose-built facility in the Swansea bay city region. Heavy fabrication of steel components will take place at a new purpose-built facility, also in the region. Final full assembly of the turbines will take place on site in the turbine housing itself. The turbines’ control systems and generators, which connect to the turbines and generate renewable electricity, will be manufactured in Rugby, also from a majority of British-made parts. Meanwhile, a Stafford facility will provide high-voltage switch gear and control and protection systems, all of which demonstrates the UK-wide potential for the supply chain to serve a new tidal lagoon industry.

Quite simply, the development of a fleet of tidal lagoons, starting with Swansea, would provide an enormous boost to UK civil and electrical engineering, our manufacturing sector and our domestic steel industry. According to Graham Honeyman, chief executive of Sheffield Forgemasters:

“Being part of the Tidal Lagoon project would be an important win for this business. The prospect of working on a new power generation concept is an exciting one and is inspiring to our team. The possibilities for this concept, which could play a huge part in addressing the global power deficit, are vast. For such a project to be delivered through British designs and implementation would also be a great boost to the UK economy.”

Oral Answers to Questions

Debate between Stephen Crabb and Neil Carmichael

Wednesday 18th November 2015 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

4. What assessment he has made of the economic value to Wales of the single market.

[The Secretary of State for Wales (Stephen Crabb)]

The single market offers enormous opportunities for Welsh business, accounting for 42% of Welsh exports. However, exports to non-EU countries account for 58% of our total exports and are worth more than £7 billion to the Welsh economy. That is why we are seeking EU reform to go further and faster on economic competitiveness, trade and deregulation, which will strengthen Welsh exports.

[Neil Carmichael]

Does the Secretary of State agree that the success of Airbus in Wales and in the south-west, which has connections to my constituency, demonstrates the value of the single market, and that reforming it further to include the digital economy and energy will give those important sectors even more capacity to expand and grow?

[Stephen Crabb]

My hon. Friend makes an important point, not least about the importance of investing in technology. If we are to drive up prosperity in Wales, we need more growth in higher technology. This afternoon, I am proud to be helping to launch a new compound semiconductor centre for IQE and Cardiff University. That is emblematic of the changes in the Welsh economy.

Oral Answers to Questions

Debate between Stephen Crabb and Neil Carmichael

Wednesday 17th June 2015 Commons Chamber

[Stephen Crabb]

My hon. Friend makes a good point. On doorsteps throughout Wales during the election campaign, people expressed anger and frustration about their inability to gain access to the life-enhancing cancer drugs that are available to patients in England. A petition calling on the Welsh Government to introduce a cancer drugs fund has been signed by 100,000 people in Wales, and I cannot for the life of me understand why the Welsh Government are being so stubborn.

[Neil Carmichael (Stroud) (Con)]

8. What steps he is taking to promote engineering as a career in Wales.

Oral Answers to Questions

Debate between Stephen Crabb and Neil Carmichael

Wednesday 3rd December 2014 Commons Chamber

[Stephen Crabb]

With respect to the hon. Gentleman, he has got this wrong. A Plaid Cymru former Transport Minister in the Assembly championed the upgrade of the M4, but could not achieve it, because the money was not available. We are providing the resources for that upgrade. That does not mean that no other project can happen throughout Wales, however, and I agree with the hon. Gentleman that we want more infrastructure investment in west Wales; we share that objective.

[Neil Carmichael]

Does the Secretary of State agree that the Government’s investment in redoubling the Stroud to Swindon railway line, plus the promised investment in the A417 roundabout, add up to much improved links between the midlands and north Wales, which will be excellent for trade, manufacturing and tourism?

[Stephen Crabb]

My hon. Friend makes his point extremely well. There is a broader point: infrastructure investment not necessarily inside Wales, but in border areas, benefits people and businesses across Wales. We should not be insular when considering infrastructure investment throughout the UK because it often delivers real benefits to all parts of Wales.