Contracts for Difference

Toby Perkins Excerpts

Tuesday 3rd September 2024 Commons Chamber

[Ed Miliband]

I congratulate the hon. Gentleman on his elevation since the election. I look forward to our exchanges in this House. I say him to gently that the crucial first phase of Opposition, in my experience, is having a bit of humility to admit where they have got things wrong. I do not deny that some of the things that the previous Government did were right, but quite a lot of what they did was wrong—for example, the nine-year ban on the cheapest, cleanest form of power, the blocking of solar projects across the country and the crashing of the offshore wind market, which led to the worst energy bills crisis in generations. That is their legacy, and at some point some of the leadership candidates will have to face up to that.

Let me deal with the hon. Member’s specific points. If I may say so respectfully, I feel like he answered some of his own questions. He draws attention to the fact that energy bills are rising from 1 October. He is right about that, and that is deeply regrettable. Why is that happening? Because we are exposed to international gas markets. This is about power that we do not control. Every solar panel that we do not put up, every onshore wind turbine that we do not erect, and every piece of grid that we do not build leaves us more exposed. The Conservative party is in a dilemma on this, because it is facing both ways, but it has to face up to that fact. Of course we will have a proper and orderly transition in the North sea, keeping existing fields open for their lifetime and having a just transition for the workforce, but the idea that the Conservative party and some of its erstwhile friends are clinging to—that fossil fuels will get us out of this—is completely belied by all the facts and the crisis that we went through.

The shadow Minister says—and I agree with him—that we need to have jobs in this country. He says it as if he finds it hard to remember who has been in power for the past 14 years. It is terrible, he says, that everything is being produced elsewhere. He is right. Germany has almost twice as many renewable energy jobs per capita as the UK. Sweden has almost three times as many, but, most interestingly, Denmark, with its publicly owned energy company, Ørsted, has almost four times as many.

The hon. Gentleman asks about Great British Energy. We will debate that matter on Thursday, but one reason why we went to the electorate on this point and were endorsed on it is that, unless we have a publicly owned national champion, all the evidence is that the jobs will go elsewhere. That is part of having a basic industrial policy.

The hon. Member talks about solar energy, but, again, he has to make up his mind about where he is on this. He says that he agrees that we need clean energy in this country, and that we have to get off the international gas markets, but the problem is that the Conservatives duck every difficult decision. Then he asks about undergrounding. The Conservatives were in power for 14 years, so they had plenty of time to do the undergrounding of all the cabling. Why did they not do that? It is because they know that it is multiple times more expensive. Now they come along, less than two months after the general election, and say that it is time for some undergrounding of the grid. For goodness’ sake! I have experience of being Leader of the Opposition. Perhaps it is time for the Conservatives to have some private tutorials on how to be in opposition.

[Mr Toby Perkins (Chesterfield) (Lab)]

It is great to see my right hon. Friend in such ebullient spirits. I have to say that his enthusiasm can only be matched by that of the industry, which today has roundly welcomed the decision that he took back in July to increase the size of this auction. That demonstrates that, if we have a Government who are consistent, positive and ambitious, the industry will respond and will back their plans. Can my right hon. Friend assure the House that the great start that he has made will be continued with a consistent plan under this Government, so that businesses can invest for the long term, knowing that the Government will always back them?

[Ed Miliband]

My hon. Friend makes a typically eloquent point. This is about a partnership with private industry. The truth is that much of the investment that we need for the clean power mission will come from the private sector, and I suspect that there is cross-party agreement on that. We on the Government Benches have a difference with the Opposition, though, because we believe that a lot of that comes from breaking down the barriers to planning and grid infrastructure, which is a massive challenge for supply chains and skills. There is also a role for what we call catalytic public investment, levering in extra private investment.

The other point that my hon. Friend makes is absolutely right. There is huge enthusiasm in the private sector and industry more generally for this sense of mission for the country. We want this mission to involve every business that has an interest in this area, and I believe that we can achieve that.