Jobs and Growth in a Low-carbon Economy Debate

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Jobs and Growth in a Low-carbon Economy

Tom Greatrex Excerpts
Monday 5th March 2012

(12 years, 9 months ago)

Commons Chamber
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Tom Greatrex Portrait Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
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Having rejoined the debate and expertly managed to avoid the no doubt helpful contribution by the right hon. Member for Bermondsey and Old Southwark (Simon Hughes), I congratulate the Secretary of State on his much-anticipated and well-briefed promotion to his new portfolio and on his first engagement in Parliament in that role. When he was confirmed in his position, he made much of his determination to continue with the policies of his predecessor, so we have a new man in charge but the same policy in place. At least he has not continued with one feature of his predecessor’s appearances in this House—the speeches of inordinate length. We should be grateful for small mercies. It is a shame, though, that much of the content turned out to be very similar, with the same mixture of obstinacy, complacency and diversionary abuse.

The change of Secretary of State has given the Government an opportunity to reassess their policy prescription in the light of the evidence of falling investment in the green economy, taking the UK from third to 13th place, and to make good much of the rhetoric of the past two years on the opportunities for growth and investment to help to rebalance the economy and to build vital skills that could create and keep jobs in every part of the country. Those opportunities should not be missed. However, there is genuine concern that a combination of the effects of Government policies elsewhere, the Chancellor’s comments on a range of related issues at party conferences, and the hapless approach of the Minister of State, the hon. Member for Bexhill and Battle (Gregory Barker), on feed-in tariffs are combining to reduce the attractiveness of those opportunities, not least in renewable energy.

The Secretary of State spent some time in Scotland this weekend, and he will have appreciated that Inverness is a little less crowded and a little windier than Surbiton, and that is not just because he was at the Scottish Liberal Democrats’ conference. I welcome his recognition of the benefits to Scotland and the rest of the country of the single energy market and the mechanisms within it to improve infrastructure and promote new developments that work in the interests of the whole of the UK. As well as appreciating the potential for renewable energy in Scotland he will also, according to press reports, have witnessed some of those who are less convinced at the staged wake at the conference. For the avoidance of doubt, it was an unofficial wake outside rather than something on the agenda inside.

As well as the opportunities, significant costs are associated with the investment needed to update our energy infrastructure. The right hon. Member for Hitchin and Harpenden (Mr Lilley) and my hon. Friend the Member for Sedgefield (Phil Wilson) expressed concern about that. However, we should be realistic. There are no no-cost options, but there are opportunities to be realised. An over-reliance on fossil fuels will cost more in the long term and lead to bigger increases in consumers’ bills, and our generation plant is largely coming to the end of its useful life. The need to reduce carbon emissions, which is accepted by the Government but not necessarily by all Government Members, means that there is a pressing need to renew that infrastructure, and to do so in the right way.

We should also be maximising the opportunities for jobs in our economy to build growth and provide employment in the parts of the UK that are suffering the most economically, not least because of the impact of other aspects of Government policy. That was pointed out in an intervention by my hon. Friend the Member for Kingston upon Hull North (Diana Johnson) and in the speeches by my hon. Friends the Members for Sedgefield and for Scunthorpe (Nic Dakin). Many places around the UK are well placed to be the hubs for renewable energy because they combine the port infrastructure, the manufacturing expertise and the chance to develop new export opportunities. We have heard about the need for joined-up thinking within Government to attract that investment. Much of that depends on confidence, as the Secretary of State observed, and the Government must be aware that the shambolic handling of the feed-in tariff debacle has dented confidence more widely across the energy industry. I hope that Ministers learn some lessons from that sorry exercise, because it not only has direct consequences for jobs and businesses, as my hon. Friend the Member for Kingston upon Hull North said, but sends a wider message to the industry.

The hon. Member for Skipton and Ripon (Julian Smith) highlighted the importance of CCS, quoting Professor Jeff Chapman, and reflected on the decision on Longannet, which many Members are sorry has been unable to be demonstrated on a commercial basis. We should not forget, however, that the work at Longannet, including the FEED—front-end engineering design—study, will bring some benefits to potential future CCS projects, and it is important that we learn from that. I hope that as the Government outline their new competition, they do not use criteria that restrict the ability of many potential CCS projects to go ahead.

My hon. Friend the Member for Vale of Clwyd (Chris Ruane) highlighted the importance of innovation and development to provide high-quality, high-skilled and exportable jobs, and the important link between academic institutions and industry in developing those jobs around the UK.

The right hon. Member for Bermondsey and Old Southwark, with his own unique style of collegiate behaviour, helpfully highlighted the differences among the Liberal Democrats on nuclear. We must all be clear that we need baseload generation as well as renewable generation, and that nuclear, despite many other aspects about which people express concern, is, like renewables, a low-carbon energy.

My hon. Friend the Member for Edinburgh North and Leith (Mark Lazarowicz), the hon. Member for Romsey and Southampton North (Caroline Nokes) and my hon. Friend the Member for Swansea West (Geraint Davies) put in, or repeated, their bids for the location of the green investment bank. I think that everyone did that apart from the right hon. Member for Hitchin and Harpenden, who said that he did not want it in his constituency, so that might bring the number of bids down from 32 to 31. However, the most important issue in relation to the green investment bank is not its location but whether it is up and running. The Secretary of State suggested that its operation as a bank has probably been delayed until 2017. My hon. Friend the Member for Southampton, Test (Dr Whitehead) reminded him that that is a direct result of Government policies elsewhere.

In the extensive press coverage on the Secretary of State’s appointment, various anonymous Members among his coalition partners said that they were very pleased that he had got the job because he is a much more collegiate figure than his predecessor—although that would not be difficult. Labour Members must hope that he learns to stand up to the Treasury as well, because Treasury dominance has too often overridden important aspects of the green economy from which we need to benefit in the period ahead.

The hon. Members for Great Yarmouth (Brandon Lewis), for Waveney (Peter Aldous) and, briefly, for Suffolk Coastal (Dr Coffey) highlighted the potential of offshore industrial opportunities in their constituencies and the need to ensure procurement benefits, as far as possible, for indigenous companies—a point also made by my hon. Friend the Member for Scunthorpe.

The hon. Member for Sittingbourne and Sheppey (Gordon Henderson), in an interesting and courageous speech, made clear the problems that the mixed messages coming from the Government and from Government Members are creating as regards some of the investment decisions that may or may not be made. He made the important point that while there may be costs associated with renewable energy, there are also costs associated with an over-reliance on declining and volatile resources. We need to bear that in mind.

My hon. Friend the Member for Scunthorpe made some important points on behalf of energy-intensive industries. He represents a steelmaking constituency, as do I. It is important that those industries get clarity from the Government about the package that was put in place in the autumn statement and do not miss out on opportunities in the green economy.

My hon. Friend the Member for Islwyn (Chris Evans) highlighted the importance of energy efficiency in stimulating the construction industry, although I suspect that the right hon. Member for Hitchin and Harpenden would disagree with him.

The motion highlights the need for the transition to a low-carbon economy. It outlines the opportunities and presses the Government to get the right strategy in place. If the Secretary of State wants to make his mark and to deliver change, rather than just to use the rhetoric of change, he should ensure that the Government bring forward an active industrial strategy, because that is what is needed to transform the opportunities into reality. I commend the motion to the House.