Green Energy in the North-west

Debate between Steve McCabe and Justin Madders

Wednesday 23rd June 2021 Westminster Hall

[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to see you in the Chair, Mr McCabe. I thank my hon. Friend the Member for Birkenhead (Mick Whitley) for securing this debate and for the excellent points in his introductory comments. As he said, he has a long, proud association with Ellesmere Port through his time at Vauxhall Motors; that company, with many others, is synonymous with my town. It is vital for their future prosperity that we get this right. They all impact the local economy and they also use huge amounts of energy, contributing about 5% of total energy usage in the UK. Faced with that fact, companies are not oblivious to the need to change and have been working together on a whole series of projects that will contribute to reaching net zero and enhance our local economy at the same time. [Interruption.]

[Steve McCabe (in the Chair)]

Order. The Division bell is ringing again. I think we will do the same thing as before and stop until it finishes.

[Justin Madders]

Several Members have talked already about the HyNet North West project, which is vital for the future of industry, not just in my constituency but in the whole sub-region, if it is to meet the challenges of decarbonisation and increased energy costs.

In our area, we are fortunate enough to have an unbeatable combination of industry and geology, which means we can transition to a hydrogen-based economy faster than anyone else. Our current infrastructure can be easily converted to operate with hydrogen. HyNet believes that, as a result, it can capture up to 800,000 tonnes of carbon dioxide every year. As we have heard from various Members already, there is cross-party and indeed cross-border support for HyNet; I refer not just to the border between England and Scotland, but to the equally important border between Cheshire and Merseyside.

It is vital that we get this transition right. Let me give one example of what that can mean. In my constituency, CF Fertilisers employs hundreds of people and supplies about 40% of the UK fertiliser market. It is also the front end of key supply chains for the production of products such as building insulation, Perspex products for car manufacturing, and key bathroom products such as sinks and baths, as well as respiratory medications, so moving to hydrogen will play a huge role in greening large parts of other sectors, too. There is a brighter future down the road, but to get to that point gas prices and emission costs need to remain affordable for companies such as CF Fertilisers over the next five years. They need as much certainty as can be offered by Government. We do not want winners and losers in different parts of the country to be played off against one another. We need to recognise the particular challenges that ammonia producers have. If the Minister needs further details, I am happy to provide them after the debate.

To reiterate a point made by several Members, it is critical to our part of the world that we get the green light to go ahead in phase 1. CF Fertilisers is just one of many businesses where lots of jobs are at risk if we do not get a sustained and consistent approach from Government. There is no doubt that the ambition in my area is there. The question is: will it be matched by Government? Germany is investing 10 times the amount that we are in its quest to deliver the same amount of hydrogen by 2030 that we hope to produce, so we really cannot afford to effect this transition by half-measures. For people’s livelihoods, for the thousands of jobs that it would create and for the future of the planet, we need this transition to be full steam ahead, if colleagues will pardon the pun.

The concept of a just transition is not only realistic but essential if we are to achieve the aims that I think we all want to achieve. When I walk around my constituency in 10 years’ time, I want to see people going about their daily business in electric vehicles that have been manufactured in Ellesmere Port, powered by batteries that have been made locally, driving into secure, well-paid jobs that they can raise a family on in a manufacturing industry that is enjoying a renaissance thanks to the advances we have made in carbon capture and hydrogen. I want us to be living in a time when emissions have gone down but wealth has gone up. That is the future I want. I hope that the Government share our vision and will work with us to make it a reality.

Health Service Medical Supplies (Costs) Bill

Debate between Steve McCabe and Justin Madders

2nd reading: House of Commons & Programme motion: House of Commons
Monday 24th October 2016 Commons Chamber

[Justin Madders]

My hon. Friend tempts me a little way outside my brief. I note, though, that our health service is entering into partnerships with Google, so I hope that questions are being asked by Ministers about the taxation arrangements.

We know that the vast majority of the generics sector is well controlled by competition and delivers value for money to the taxpayer, and we welcome the extension of pricing controls where competition has failed. Is the Minister confident, however, that the steps taken in the Bill are adequate? We have seen, as my hon. Friend the Member for Wolverhampton South West mentioned, how adept international companies can be at moving figures around to avoid taxation, and we clearly want to ensure that the system that we develop is not vulnerable to the gaming that we have seen elsewhere. I do not think for a minute that given the vast sums of money at stake, the companies will just shrug their shoulders and take the hit if they can avoid it.

I was more than a little concerned when I read a section about this Bill in a Concordia investor presentation, which said that in the past the Department of Health

“would seek informal negotiations with manufacturers where it believed there were pricing issues. We believe this step will remain.”

The notion of informal talks with officials brings up uncomfortable memories of the sweetheart deals between multinationals and Her Majesty’s Revenue and Customs. Although I am happy for chains of communication to be open with such companies, can the Minister reassure us that in all cases prices will be regulated through a transparent, formal process and not through behind-the-scenes talks?

[Steve McCabe]

Where the advertising budgets of pharmaceutical companies dwarf their R&D budgets, is there not an argument for the Government to look again at the tax position of those companies, as well as at the price of their products?

[Justin Madders]

We will not get very far with this Government on corporation tax. They have been going in a direction that we would not have chosen. They have decided on the measures in the Bill as the best way to control prices and we will see how they get on. Will the Minister confirm that if it becomes clear in a few years that we have opened up another set of loopholes, we can expect the Department to take the lead and to be proactive in its investigations, rather than relying on a team of journalists to expose the problem?

We know that in Scotland the rebate that has been generated has been used to create a dedicated fund to give patients access to new medicines. Will the Minister consider investigating similar models and ensuring that the benefits of the scheme are used for the purpose of improving our frankly poor record in allowing patients to benefit from new medicines? We accept that there will always be challenges in matching funding to new drugs, but there is at least a degree of logic in allowing savings made in the drugs bill to be reinvested to enable new products to reach patients more quickly.

We welcome today’s report by the Accelerated Access Review, which sets out an ambitious plan that could see patients accessing new lifesaving treatments up to four years sooner. We hope the Minister will take this opportunity to give financial backing to the aims of the review by committing to using future rebates from the pharmaceutical sector to improve access to treatments. I ask the Government to seriously consider this, as there are growing concerns about access to new drugs and treatments in this country, and particularly about the widening gulf between the UK’s record on developing new drugs and the ability of the NHS to ensure that all patients benefit sufficiently.

The “International Comparisons of Health Technology Assessment” report published in August by Breast Cancer Now and Prostate Cancer UK shows that NHS cancer patients in the UK are missing out on innovative treatments that are being made available in some comparable countries of similar wealth. This is at the same time as a number of medicines have been delisted by the Cancer Drugs Fund after it overspent its budget, and the failure to extend this scheme to innovative treatments as well as medication. There was a report in The BMJ in July entitled “A pill too hard to swallow: how the NHS is limiting access to high priced drugs”. It came to similar conclusions when looking at new antiviral drugs that held out a real prospect of eliminating hepatitis C but which were very expensive.