Great British Energy Bill (Fourth sitting)

Torcuil Crichton Excerpts

Committee stage
Thursday 10th October 2024 Public Bill Committees

[Andrew Bowie]

The amendments would create a specific strategic priority for Great British Energy to create 650,000 new jobs in the United Kingdom by 2030, and require the production of an annual report on the progress of meeting that strategic priority.

It is worth our while this afternoon to take some time to consider the achievements of the previous Conservative Government in driving towards a cleaner energy future. It was a Conservative Government, under Prime Minister Theresa May, who legislated for net zero in 2019. It was a Conservative Government who began and created the contract for difference process, which was looked at with awe by the world at that stage—

[Torcuil Crichton (Na h-Eileanan an Iar) (Lab)]

Will the hon. Gentleman give way?

[Andrew Bowie]

I am mid-flow, but yes.

[Torcuil Crichton]

Was it not also a Conservative Government who refused to take the decision to give Harland & Wolff the funding that would have kept it open and avoided administration and now sale, and who left that hard decision to the incoming Labour Government?

[Andrew Bowie]

As the hon. Gentleman knows, there are many hard decisions to be taken in government, and every decision that the Government have to take has to provide value for money for the British taxpayer. I know that this Government recognise that, given the decision they have taken to remove £300 from every pensioner in the country—something I think they will come to regret.

As I was saying before I was so rudely interrupted, the Conservative Government built the first to fifth largest offshore wind farms in the world, ended coal for power generation and halved emissions at the fastest rate of any G7 power. In that regard, I know that everybody in the room is proud of the record of the Conservative Government just gone and will champion it in our work as we move forward.

Nevertheless, the issue of skills, and the lack of the skilled workforce required to deliver the next phase of the transition, was always at the forefront of Ministers’ minds. Indeed, because of that we established the nuclear skills fund when I was the Minister responsible for nuclear.

--- Later in debate ---

[Andrew Bowie]

I am very proud of everything that we did in government to support our steelworkers and those communities around the country that depend on those jobs. It is desperately sad to see what has happened in Port Talbot recently. That is an example of what we must avoid moving forward, and something that we must avoid happening in the North sea, for example, where workers engaged in traditional industries are fearful about where their jobs sit in the forthcoming transition. Although I do not agree that we did not do everything we could to support steelmaking at Port Talbot, I do think that it is an example to learn from and one that we must avoid in the future.

[Torcuil Crichton]

What the shadow Minister is describing sounds like an industrial strategy—something that we have been missing for 14 years.

[Andrew Bowie]

Well, not quite. We did have an industrial strategy. We had a Department for Business, Energy and Industrial Strategy. It is not an industrial strategy. The amendment aims to establish within the strategic priorities of this company a commitment to deliver a UK-based supply chain, which is something that we sought to do while in Government, with the sustainable industry reward scheme that will launch next year with the auction round for the contracts for difference, and through other programmes and investment opportunities that we were seeking to see come to fruition. I am very glad that this Government seem to be taking the challenge in this regard just as seriously as we did.

The transition we are in just now spans our entire energy industry and incorporates the North sea and our homegrown petroleum outputs. As noted by the Climate Change Committee, we will need oil and gas for decades to come, not just as an energy baseload but as a key component in the transition and in the technologies for the transition.

In our electric vehicles and our batteries, we will need lithium. In 2023, Cornish Lithium opened Britain’s first lithium mine in Cornwall, with £53.6 million investment led by the UK Infrastructure Bank, which we established in 2021, to invest in our domestic supply chain, our clean technology supply chain and our energy future.

In our solar panels, we need silver, indium and copper. In our grid systems, we need kilometres and kilometres of copper. In fact, renewable energy will drive 45% of copper demand by 2030. Our reliance on China for low-cost, clean technology and minerals should worry us all. In 2022, we imported 64% of rare earth metals and 49% of lithium batteries from China.

--- Later in debate ---

[Stephen Flynn]

These amendments are hopefully self-explanatory to Members. I am extremely keen to hear the Minister’s thoughts on them. As I referred to in my initial remarks, much of the success of the UK’s energy sector will be derived from the success of renewables projects in Scotland, whether that is the continuation of onshore wind, further development of fixed-bottom offshore wind, floating offshore wind, pumped storage hydro, green hydrogen, blue hydrogen, tidal, wave, and so on. The sun sometimes shines as well, so we might get some solar panels in there too—perhaps just in Na h-Eileanan an Iar, though, as opposed to Aberdeen.

I know that the Minister has been engaging proactively with my colleagues in Scotland, that there have been a lot of positive discussions, and that Mr Maier was up with the First Minister in recent weeks to discuss the future outlook for GB Energy. If the respect agenda that the new Labour Government appear to have put in place is to mean something, it is important that they are willing and confident enough in their arguments to seek the fulsome consent of the Scottish Parliament—not just the Scottish National party, because I am conscious, as I said earlier, that it may not always be the Scottish National party that is there.

[Torcuil Crichton]

I rise not just to reassure the right hon. Gentleman that the sun does shine in the Western Isles, but to note that these amendments seem quite complex—blocking amendments, actually, that would prevent the business and progress of GB Energy. They read a bit like last year’s script because, as he mentioned, the Scottish Government and the UK Government work hand in hand now. My friend the Secretary of State for Scotland, and the Deputy First Minister of Scotland, who is a frenemy, speak on a regular—daily or at most weekly—basis. The Governments work together, rendering these clauses unnecessary.

[Stephen Flynn]

I thank the hon. Gentleman for his intervention, although I am a bit disappointed that he regards seeking the consent of Scotland’s nationally elected Parliament as a blocking amendment. That is quite a Westminster mentality that he has adopted already in the few short weeks that he has been here—perhaps that is an indication of where his party intends to go in the months and years to come. Notwithstanding that, because I do not believe it was a necessary or helpful intervention in that context, I would be very keen to hear from the Minister on why he does not believe he should seek the consent of Scotland’s Parliament.