Small Modular Reactors and Energy Security

Virginia Crosbie Excerpts

Wednesday 19th January 2022 Westminster Hall

[Virginia Crosbie (Ynys Môn) (Con)]

I beg to move,

That this House has considered small modular reactors and energy security in the UK.

It is a pleasure to serve under your chairmanship, Mr Bone. I thank all Members who have attended this debate on what is a crucial topic for both the UK’s ongoing energy security and our ambitious goal to achieve net zero.

This is far from the first time that I have raised the issue of nuclear energy in a debate. I last raised the topic of the funding of nuclear power on 9 November last year in an Adjournment debate, and have also been active in raising the issue of nuclear through oral and written questions. I have recently established an all-party parliamentary group on small modular reactors.

[Sir William Cash (Stone) (Con)]

I congratulate my hon. Friend on the incredible work she does in this field, as well as not only her APPG work, but her work in relation to the Nuclear Industry Association. I pay tribute to Tim Stone, Lincoln Hill, and the other people who are doing amazing work, and I congratulate my hon. Friend very much on everything she has been doing.

[Virginia Crosbie]

That is incredibly kind of my hon. Friend, but I would like to highlight that it really is a team effort. I thank him for the support he has given me on my political journey: my nickname is “Atomic Kitten”, which is somewhat thanks to support from so many people.

Small modular reactors are an exciting new nuclear technology for three principal reasons. First, the modular construction helps to cure issues that have been experienced with past nuclear projects, such as financing, long construction timelines and cost. Secondly, they provide a much-needed route to energy security and low-carbon energy; and thirdly, SMRs could drive a new industrial revolution, levelling up across the UK with high-skilled jobs in the nuclear and engineering supply chain. That is something I am really hoping to hear from the Minister about.

--- Later in debate ---

[Alun Cairns]

It is a privilege to serve under your chairmanship, Mr Bone. In my intervention, I was supporting my hon. Friend’s contribution about the opportunities and benefits that small modular reactors will bring. Does she agree that the export potential is significant, and that an early intervention in the UK will yield significant benefits as that export opportunity becomes real?

[Virginia Crosbie]

I thank my right hon. Friend for his insightful intervention. He has been a vigorous champion of the nuclear sector, particularly in Wales, and he makes an important point. In the ’50s and ’60s we led the way with nuclear and nuclear export. This is an opportunity for us to get back to where we were, leading in a sector that is so vital for our energy security. That is very important for jobs, and it will create skilled jobs in my constituency and across Wales and the UK.

My third point is about co-locating and bringing together clean power with the industries that need it. That is an opportunity to bring high-skilled jobs from other industries. Such co-location is not new; the original Wylfa power station was established to provide power to Anglesey Aluminium.

Since we last debated nuclear financing, there have been major developments in the delivery of SMRs in the UK and in global energy security. The past months have seen an unprecedented rise in wholesale energy prices during winter, in part due to Russia’s aggressive behaviour towards its neighbour, Ukraine. That follows the issue in September with the Kent interconnector. I remind hon. Members that a fire at the Kent interconnector, which connects the UK with French power systems, led to soaring energy prices in the UK. We usually import 3 GW of power from France—enough to supply 3 million homes. That fire showed how fragile our energy security is when we rely on other countries for production.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

The hon. Member is making an excellent speech. Caithness is one of the most nuclear-sympathetic parts of the United Kingdom. Dounreay, Britain’s first nuclear reactor, was constructed there. Even today, some 1,500 jobs directly and 500 in the supply chain rest on the nuclear industry. When the wind is blowing hard and renewables are working, units of this nature can create hydrogen, which will help us to deal with the problem that the hon. Member describes.

--- Later in debate ---

[Virginia Crosbie]

I thank the hon. Member for his intervention. I am looking forward to an invitation to visit Caithness and see at first hand how important hydrogen is, how it can be linked with nuclear and how we can, I hope, come up with pink hydrogen. In my constituency of Anglesey, we are fortunate to be developing the Holyhead hydrogen hub, which the hon. Member might like to visit.

With much of the European gas supply transiting the continent through central and eastern Europe, the UK and other western European nations are at risk of Russian action to influence the price of wholesale gas and supply through Russian pipelines. Worse still, many of the other sources of gas for heating and industry also come from unstable parts of the globe. The UK is facing an existential crisis in energy supply that ultimately leaves the country exposed to soaring energy costs and potential electricity blackouts if we are unable to secure affordable, home-grown energy long term.

Addressing our energy needs is an urgent priority for the UK. We must build our way out of this overreliance on foreign energy by developing our indigenous supply in a way that is compatible with our COP26 and net zero commitments. To meet the requirements of the sixth carbon budget, we will need all new cars, vans and replacement boilers to be zero carbon in operation by the early 2030s. To move people towards the use of electricity while hitting net zero production by 2035, we must quickly move away from generating that electricity from fossil fuels. Britain currently has slim spare capacity in electrical power generation to feed those changes, leaving both our energy supply and our security under threat.

There is an obvious solution on the horizon. Nuclear power, which has been a neglected part of our energy mix, can bridge the gap. SMRs provide a once-in-a-generation opportunity for the UK to develop a new, global industry sector that will contribute to the country’s long-term energy security. A single SMR located on Anglesey in my constituency could produce enough energy for the whole of north Wales, which is primarily rural. A large plant in the same location could power the whole of Wales—with a little bit left over for England, if we are feeling generous.

Not only are SMRs easier to finance, but a factory build in controlled conditions means that they could be up and running as soon as 2028.

[Robin Millar (Aberconwy) (Con)]

My hon. Friend is making an excellent speech about how SMRs are of value not just to the UK, but beyond its shores. In Aberconwy I talk to farmers—they are the custodians of some three quarters of the constituency, and they produce some of the finest lamb and beef in the world—and I am hearing from them already that the impact of energy costs mean that bills are rising by up to £1,000 a month. Will she urge the Minister to meet with farmers and farmers’ representatives in Wales to make sure that is taken into consideration in looking at the energy supply?

[Virginia Crosbie]

My hon. Friend and neighbour from the beautiful constituency of Aberconwy makes a very important point. In his previous roles, the Minister has been keen to reach out to the farming community. He has already committed to coming to visit Anglesey and Wylfa Newydd, and I am sure he will reach out to the important rural and farming communities as part of that visit.

When it becomes law, the Nuclear Energy (Financing) Bill will give developers a guaranteed return on their investment and lower the cost of raising the capital required to build a power station; that accounts for much of the cost of nuclear projects. We have already seen the regulated asset base model used for infrastructure projects in London, such as the Thames Tideway tunnel, and using it in Wales to finance new nuclear will make a big difference in levelling up the UK.

There has been rapid progress in recent months. Rolls-Royce has received the green light to develop its SMR technology, with match funding from the UK Government. The Nuclear Energy (Financing) Bill will also make a big difference in allowing new sources of funding for nuclear projects. There are other exciting SMR technologies that can help the UK reduce its dependence on expensive foreign energy.

The generation IV molten salt reactors developed by Terrestrial Energy not only have the potential to provide clean energy to the grid, but could provide scalable clean hydrogen for industry. Boiling water reactors, such as that developed by GE Hitachi, deliver clean, flexible baseload energy, too. There is a real opportunity for the UK to take a lead in this field, supported by engineering firms such as Assystem and Bechtel, as well as the wider UK supply chain, which can support the development of all different types of SMR reactors.

This Government have made some impressive funding commitments so far, with the recent Budget allocating £1.7 billion of public funds to support new nuclear projects. The Government have committed to £385 million in the advanced nuclear fund, £215 million for small modular reactors, £170 million for research and development on advanced modular reactors and £120 million for the enabling fund announced in the net zero strategy. Finally, there is an additional £40 million for developing regulatory frameworks and supporting UK supply chains. That is very welcome, but given the scale of the potential energy crisis, there is scope for the Government to do more. The UK should be looking at contingency plans to get new SMRs into play as soon as possible to replace fossil fuel generation.

[Jill Mortimer (Hartlepool) (Con)]

I congratulate my hon. Friend on securing this debate. In Hartlepool, the nuclear reactor is on the brink of decommissioning, and my constituency is not the only one in that position. Does my hon. Friend agree that SMRs provide a unique opportunity for us to replace those decommissioned reactors as quickly as possible to preserve high-skilled jobs in places where people do not fear nuclear? They are used to it and they know the advantages it brings.

[Virginia Crosbie]

I thank my hon. Friend for her intervention. It is fantastic to have another atomic kitten here, and I welcome her warmly to this place. I will be talking about SMRs and how important it is that we have a plan in place so that we do not lose those high-skilled jobs, which are so valuable to our constituents across the UK.

To deploy SMRs as soon as possible and restore the UK’s leadership in nuclear technology, I call on the UK Government to take the following steps. I ask them to commit, in the upcoming nuclear road map from the Department for Business, Energy and Industrial Strategy, to deploying a fleet of at least 10 Rolls-Royce SMRs by 2035-36. That road map is critical if the UK Government are to get support from industry and investors, and it is the best way for UK taxpayers and consumers to benefit from the Government’s bold investment in the Rolls-Royce design. I ask the Government to allow the licensing and siting of the Rolls-Royce SMR technology to proceed in parallel, rather than one after another. As part of that, BEIS should instruct the Nuclear Decommissioning Authority and Magnox to begin detailed discussion on the sale of land on nuclear sites to Rolls-Royce as soon as possible.

I ask the Government to remain open to deploying other SMR technologies as they are proven around the world. Many of our trusted allies, including the US and Canada, are investing heavily in SMRs, and we should learn from their experience. The offer to conduct licensing and siting in parallel should be extended to all viable SMR developers with the financing to buy sites in the UK. As the Rolls-Royce design is proven, the Department for International Trade should back it with export financing to sell British technology across the world, as part of our global Britain initiative. In the ’50s and ’60s, the UK led the world in nuclear. I know that the Minister wrote one of his university projects on US-UK large-scale nuclear co-operation. How fantastic it would be to get us once more back to leading the way and exporting hundreds of SMRs. Think how that would galvanise the Welsh and UK steel sectors, and the high-skilled jobs it would create.

I ask the Government to bring forward a consultation within a month on classifying nuclear as a green investment in the UK taxonomy, and make nuclear investment eligible under the UK green financing framework. Especially as the Government are looking to invest directly in SMRs and in the next large-scale station, it makes sense to make those investments eligible for green bonds.

To be successful, manufacturers need certainty so that a strong UK supply chain can be established. I recently established the all-party parliamentary group on small modular reactors to look at some of those issues in more detail. We are already at the forefront of this technology, and we need to look at how we can position ourselves as a leading location for this SMR reactor technology.

In conclusion, I thank my fellow atomic kitten, the Under-Secretary of State for Transport, my hon. Friend the Member for Copeland (Trudy Harrison), because without her we would not have set up the nuclear delivery group; she has been a powerful force within the nuclear sector. In the UK we have a long and proud history of pioneering nuclear power. In 1956, we established the world’s first civil nuclear programme, opening our first nuclear power station, Calder Hall, at Windscale. At the peak, in 1997, 26% of the nation’s electricity was generated from nuclear power. Since then, several reactors have closed, and the share is now about 16%. Almost half of our current capacity is due to be retired by 2025, and other plants are rapidly reaching their use-by dates. SMRs could be the game-changing technology of the 21st century, not just in terms of providing British businesses and consumers with affordable, low-carbon energy, but as an export industry for technology and nuclear engineering skills across the globe.

I see the SMR programme and new nuclear as intrinsically linked to our levelling-up agenda. When we are importing gas from Russia and electricity from France, where are the jobs that generate that power located? Who is getting the value added from what we pay for that power? According to Rolls-Royce, a UK SMR programme could create 40,000 highly skilled, well-paid jobs. While constituencies such as mine in Ynys Môn suffer some of the lowest rates of gross value added across the UK—reflecting under-investment and a lack of quality, well-paid jobs—we are now paying our continental neighbours to provide us with energy.

For all these reasons, the UK needs to look closely and urgently at its energy strategy. Energy security is vital for our future as a nation, and for the sake of jobs and our economy. In SMRs, we have at our fingertips a technology that can transform the UK from an energy importer into an energy technology supporter. Diolch yn fawr.

[Mr Peter Bone (in the Chair)]

It might help right hon. and hon. Members to know that this debate will finish at 4.45 pm at the latest. I have been notified that two Members want to speak, but time is getting on and we must allow some time for the Minister to respond.

Oral Answers to Questions

Virginia Crosbie Excerpts

Tuesday 11th January 2022 Commons Chamber

[Greg Hands]

I repeat my disappointment. Scotland has an amazing nuclear past and I would like it to have a very good nuclear future, but unfortunately the Scottish Government stand in the way. This country needs nuclear, and net zero needs nuclear. Hinkley is being built, and we are very confident of the numbers and of building new nuclear power stations in this country. That is what the Nuclear Energy (Financing) Bill—which secured its Third Reading yesterday with the support of the official Opposition but not of the SNP or the Lib Dems—is all about.

[Virginia Crosbie (Ynys Môn) (Con)]

My constituency is home to Wylfa Newydd, the best potential nuclear site in the UK. Will the Minister accept my invitation to visit Wylfa Newydd to see at first hand why the Prime Minister himself is a fervent supporter?

[Greg Hands]

I absolutely accept that invitation. There is no more passionate an advocate of new nuclear in this House than my hon. Friend. Nuclear is going to be a vital part of our future. The UN Economic Commission for Europe recently said that international climate objectives would not be met if nuclear power were excluded, so it is a key part of our net-zero ambitions.

Nuclear Energy (Financing) Bill

Virginia Crosbie Excerpts

Report stage & 3rd reading
Monday 10th January 2022 Commons Chamber

[Wera Hobhouse]

Thank you, Mr Deputy Speaker; I am coming to the end. I could not miss the opportunity to speak in this debate because I believe that the whole Bill is a complete failure. However, I will be supporting all the amendments that are proposed today because they will improve it, but I will vote against the Bill.

[Virginia Crosbie (Ynys Môn) (Con)]

It is a pleasure to speak in this debate. As the co-founder of the nuclear delivery group, along with my fellow atomic kitten, my hon. Friend the Member for Copeland (Trudy Harrison), I have been at the forefront of campaigning for nuclear energy to form a key part of our 2050 net zero strategy since becoming MP for Ynys Môn.

I can talk about the various amendments tabled by the Opposition, but the reality is that this Bill is critical if the UK is to tackle climate change, and it is critical for the UK’s energy security and stability. The demand for electricity will only rise as we phase out carbon-based energy. Although renewables such as solar, wind and tidal energy must form part of our zero-carbon mix, they simply do not currently offer the capacity or reliability that we will need to go forward. Nuclear power is the only viable alternative to fossil fuels that the UK can implement in the timeframes required.

[Alan Brown]

When the hon. Member speaks to the amendments, will she explain why she opposes any of them? I would have thought that tabling amendments about transparency and to highlight the costs of nuclear would be a good thing.

[Virginia Crosbie]

Several of the amendments that the hon. Member mentioned relate to information flow and financing. I will talk more about financing and how that is so important to my constituents on Ynys Môn.

In recent years, we have seen our nuclear generation capacity drop and UK progress on the decarbonisation of power stall. Over the past year, I have been working hard to raise the issue of financing for nuclear power with Ministers and officials, because it is a key blocker to bringing more nuclear power online. The majority of my constituents support Wylfa Newydd. It is recognised as the best site in the UK, possibly the world, to host a nuclear power plant.

I will end by saying that the Bill will make a huge difference to Ynys Môn. My constituency has one of the lowest levels of gross value added in the UK and we desperately need these jobs to come through. On behalf of the nuclear delivery group, I would like to thank all my constituents and, in particular, the community of Llanbadrig for remaining positive and united in the hope that Ynys Môn sees the fruits of this important piece of legislation.

[Several hon. Members rose—]

Copyright (Rights and Remuneration of Musicians, etc.) Bill

Virginia Crosbie Excerpts

Friday 3rd December 2021 Commons Chamber

[Virginia Crosbie (Ynys Môn) (Con)]

It is an absolute pleasure to speak on the Bill, and I warmly congratulate the hon. Member for Cardiff West (Kevin Brennan) on his desire to work cross-party on this important issue. I very much hope I will receive an invitation to hear his cross-party band, MP4.

Music is exceptionally important to this country. It is a huge success story. Like many in the Chamber today, I receive many Fix Streaming and Broken Record campaign emails from constituents angered at the position that musicians and composers have found themselves in as streaming has gradually taken over from physical record sales.

My constituency is a haven for artists of all kinds. Our beautiful island, with its fabulous scenery, rugged coastline and the distant mountains of Snowdonia, is the perfect environment for inspiration. It is no coincidence that Wales has long been known as the land of song.

I would like to speak about equitable remuneration, which was designed to protect musicians and other artists from exploitation. When it comes to recordings played in a public venue such as the Harbour Hotel in Cemaes or on radio stations such Môn FM—on which I can be heard speaking Welsh on Friday nights—equitable remuneration means that the artist and performer will receive an equal share of the moneys with the copyright holder, which is often the record label.

I would like to end my—long, long—speech by thanking the hon. Gentleman for bringing this Bill before us. It contains much that is good, and reform is needed. I look forward to hearing even further from the Minister, who is known to be fair-minded and collaborative.

Nuclear Power Funding

Virginia Crosbie Excerpts

Tuesday 9th November 2021 Westminster Hall

[Mr Virendra Sharma (in the Chair)]

Before we begin, I remind Members that they are expected to wear face coverings when they are not speaking in the debate. This is in line with current Government guidance and that of the House of Commons Commission. I remind Members that they are asked by the House to have a covid lateral flow test twice a week if they come on to the parliamentary estate. That can be done either at the testing centre in the House or at home. They should also give one another and members of staff space when seated and when entering and leaving the room. I call Virginia Crosbie to move the motion.

[Virginia Crosbie (Ynys Môn) (Con)]

I beg to move,

That this House has considered funding for nuclear power.

It is a pleasure to speak in this important debate on funding for nuclear power. The UK has a long and proud history of pioneering nuclear power. In the 1940s, British scientists were pre-eminent in the development of nuclear energy. In February 1955, the Government published a White Paper entitled “A Programme of Nuclear Power”, announcing the first purely commercial programme, building between 1,400 and 1,800 MW electrical Magnox capacity by 1965, and investigating the future use of fast breeder reactors. In 1956, we established the world’s first civil nuclear programme, opening our first nuclear power station, Calder Hall, at Windscale. At the peak of 1997, 26% of the nation’s electricity was generated from nuclear power. Since then, several reactors have closed, and the share is now about 16%. However, almost half of our current capacity is due to be retired by 2025, and other plants are rapidly reaching their use-by dates.

Our most recent plant, Sizewell B, began to generate electricity more than 25 years ago. Hinkley Point C, which has been under construction since 2014, is expected to begin generating energy by at least 2026, with a construction cost of about £23 billion. Therein lies the problem. Before we discuss it in more detail, I should like to put into context why nuclear power is important at the moment. First, I urge Members to consider our commitment to the planet. The Government have committed to achieving net zero by 2050, and as the Prime Minister has rightly said, our strategy sets the example for other countries to build back greener, as we lead the charge towards global net zero. He has stated that the world is at “one minute to midnight”, having run down the clock and waiting to combat climate change. It is time to move from “aspiration to action” if we are to slow global warming.

While our seven advanced gas-cooled nuclear reactors have been the most productive low-carbon assets in Britain’s history, all will be retired by 2030. Even before those retirements take effect, we have begun to see increased, not decreased, carbon emissions. This year, our emissions from energy generation are expected to be higher than they were last year—the first year-on-year increase since 2012. If we do not replace the current fleet, it is estimated that emissions will increase by 200 million tonnes by 2035.

Secondly, I urge Members to consider our commitment to the people of the UK. In the past few weeks, we have seen that both our energy security and our stability are at risk. In September, a fire at the Kent interconnector, which connects the UK and French power systems, led to soaring energy prices in the UK. Britain usually imports 3 GW of power from France—enough to supply 3 million homes—and the fire showed just how fragile our energy security is when we rely on other countries for production.

The fire coincided with cold weather, post-covid increased commercial demands for power, gas supply issues from Russia and Norway, and unusually cloudy but calm conditions, which created price increases and what the media dubbed “an energy crisis”. That combination of events illustrates how much our power systems are under pressure from the closing of conventional plants and our growing reliance on inconsistent renewable energy such as wind and solar.

Meeting the sixth carbon budget’s requirements will require all new cars, vans and replacement boilers to be zero carbon in operation by the early 2030s. Meeting the sixth carbon budget’s requirements will require all new cars, vans and replacement boilers to be zero carbon in operation by the early 2030s. However, to move people towards the use of electricity while hitting net zero production by 2035, we must quickly move away from generating that electricity from fossil fuels. Britain currently has slim spare capacity in electrical power generation to feed those changes, leaving both our energy supply and our security under threat.

We should also consider the wider role that nuclear energy can play in achieving net zero. As well as my passion for nuclear, I am a fan of hydrogen. I am delighted that the Government are supporting the Holyhead hydrogen hub in my constituency of Ynys Môn. Our nuclear industry stands ready to provide a significant kick-start to the UK’s hydrogen economy, which will enable us to pull ahead in the global hydrogen race. Others are moving fast to beat us. Emmanuel Macron wants France to be a world leader in green hydrogen by 2030, achieved by producing green hydrogen at scale from nuclear energy. We can outmanoeuvre France and other nations by taking steps such as expanding the renewable transport fuel obligation to cover nuclear, even if just for a time-limited period, to stimulate investment in hydrogen production and support a quicker roll-out of hydrogen, with buses, trains, lorries, ships and planes, all of which can be made in the UK.

Finally, I ask Members to consider jobs and our levelling-up agenda. When we are importing gas from Russia and electricity from France, where are the jobs generating that power located? Who is getting the value added from what we are paying for that power? British people are paying their electricity bills and they are not always funding jobs. At its peak, a large-scale nuclear plant employs around 10,000 people. At the moment, while constituencies such as mine of Ynys Môn suffer low gross value added, underinvestment and a lack of quality, well-paid local jobs, we are paying our continental neighbours to provide us with energy. For all those reasons, the UK needs to look closely and urgently at its energy strategy.

There is an answer. The road map to net zero published earlier this year by the all-party parliamentary group on nuclear power states:

“Nuclear is the most powerful and jobs-rich form of low-carbon energy.”

Nuclear has the ability to give the UK energy security and stability for decades to come, but we need to get to grips with nuclear sooner rather than later. For years, successive UK Governments have prevaricated, argued and changed position about what we are going to do with nuclear energy. I was delighted when the Government announced their Nuclear Energy (Financing Bill), which had its Second Reading last week. My hon. Friend the Member for Copeland (Trudy Harrison) and I have been pressing for that since setting up the nuclear delivery group last year.

The need for that Bill brings me back to the fundamental problem with nuclear. Yes, it has by far the lowest land footprint and thus the lowest knock-on environmental impact of any clean energy source. Yes, it would create an estimated 90,000 well-paid, quality UK jobs, along with huge supply chain opportunities. Yes, it would keep producing reliable energy regardless of whether it is sunny or windy. And yes, it would give the UK energy security and stability. But—and it is a big but—building a large nuclear plant takes time and money, and therein sits the big grey elephant in the room.

As I have already outlined, Hinkley Point C began construction in 2014 and it is not expected to begin energy production until at least 2026. It is not possible just to say, “I’m going to build a nuclear plant,” and then begin construction. It takes years to go through the planning and environmental concerns, submit a development consent order, and consult, debate and clarify before getting an agreement even to stick a spade in the ground. Fifteen years is a long time to expect an investor to wait to see any return on their capital, and that is why the financing of large nuclear plants has been such a big issue. It was cited as the main reason why Hitachi withdrew from Wylfa Newydd in my constituency of Ynys Môn, pulling the plug on nearly 20 years of hope for my constituents. Traditional sources of private and commercial funding for large-scale infrastructure developments include pension funds and investment vehicles, but they are generally less willing to come forward for projects that will take 10 to 15 years before there is any return on investment.

Financing for small modular reactors is potentially more straightforward, and I welcome the Government’s work on funding for SMRs. I also welcome the fantastic news today that Rolls-Royce has funding for its SMRs, thanks to a lot of hard work in both private and Government funding for this UK initiative. As modular builds, advanced modular reactors require less in up-front costs and time, but they are intended for local energy production and are still in the development stage. A single SMR on Anglesey could produce enough energy for north Wales, which is primarily a rural area, and a large plant in the same location would power the whole of Wales, with a little bit left over for England, if we were feeling generous.

That is why the Government are progressing the Nuclear Energy (Financing) Bill through Parliament, to de-risk new nuclear projects and attract private sector financing for large-scale and advanced nuclear power projects through the RAB—regulated asset-base—model. Under this model, an independent regulator sets a price which a developer is subsequently allowed to levy on consumer bills in return for the provision of certain power infrastructure, even before they begin generating power. This allows developers to have a guaranteed return on their investment and lower costs when raising the capital required for building a power station, which accounts for much of the costs of nuclear projects. RAB is already used in other UK infrastructures, such as the Thames Tideway tunnel.

After months of raising the issue, I am keen to see the Bill progress, and I hope that it will lead to large-scale new nuclear power development across the UK. I implore colleagues to support its passage through the House. Although the debate last week was poorly attended compared with other more thrilling rides, such as the Environment Bill, it could none the less be the most significant piece of legislation that we pass for the long- term benefit of our country.

We should seek to use the Bill to fund not just one but several large new nuclear builds. Building one plant takes time, as we see at Hinkley Point C, but if we act now, those specialist resources can be redeployed on our next plant, and the next and the next. With each plant, we develop more specialists, which means that build time is shorter, costs are relatively lower and efficiency is greater. Each time, we will develop local specialists, employ local apprentices and leave generations of local people with high-quality, specialist well-paid local employment.

The Bill is incredibly welcome, but we may need other financing tools initially in addition to the regulated asset base and contract for difference models. We must continue to explore other innovative ideas. We need to give our scientists and innovators the help and support that they need to overcome barriers beyond financing. The Advanced Research and Invention Agency Bill is a great example of how we can do that.

The recent Budget allocated £1.7 billion of public funds to support new nuclear projects, and we have seen the Government commit to £385 million in the advance nuclear fund; £215 million for small modular reactors; £170 million for research and development on advanced modular reactors; £120 million for the enabling fund announced in the net zero strategy; and an additional £40 million for developing regulatory frameworks and supporting UK supply chains.

By embracing nuclear we can secure not only our future energy security, but our future employment security, as the levelling-up agenda and the net zero agenda coincide. When Hitachi withdrew its development consent order for Wylfa Newydd at the beginning of the year, citing programme financing as the main factor, my constituency was devastated. Companies such as Bechtel, Westinghouse, Shearwater and Rolls-Royce are all keen to establish new nuclear on Anglesey and are looking at other sites in the UK.

The model proposed in the Nuclear Energy (Financing) Bill could be the starting point for regenerating areas of the country that desperately need levelling up. Alongside the Advanced Research and Invention Agency Bill and other initiatives and legislation, it offers hope for a new tomorrow. With that in mind, I appeal to colleagues across Westminster: now is the time for us to come together and embrace the opportunities before us. We cannot afford to stay in our partisan corners and we cannot afford to stay silent. We cannot afford to let this opportunity slip through our fingers. New nuclear has the potential to be a game changer locally, regionally and nationally.

To conclude, I welcome with open arms the finance and support structures that the Government have put in place for new nuclear. For the sake of our young people and future generations, I ask that we all put our political differences aside and work together to make them a reality. Diolch yn fawr.

[Several hon. Members rose—]

--- Later in debate ---

[Virginia Crosbie]

I thank the Minister for his detailed answer and his ongoing support, enthusiasm and commitment to new nuclear. I look forward to welcoming him to Anglesey, so he can see at first hand why the Prime Minister is such a fervent supporter of Wylfa Newydd. I would also like to thank the hon. Members for Paisley and Renfrewshire North (Gavin Newlands) and for Southampton, Test (Dr Whitehead) for their contributions to this timely debate.

I am the Member of Parliament for Ynys Môn, which is also known as energy island. We have wind, wave, tidal, solar and nuclear power. Nuclear is very important to me and many of my constituents. Ynys Môn used to be known as Môn, Mam Cymru—mother of Wales—because years ago it used to feed the whole of Wales. With the right financing in place from the Government, Ynys Môn can once again be Môn, Mam Cymru, but instead of food, it will provide Wales and beyond with energy.

Question put and agreed to.

Resolved,

That this House has considered funding for nuclear power.

Nuclear Energy (Financing) Bill

Virginia Crosbie Excerpts

2nd reading
Wednesday 3rd November 2021 Commons Chamber

[Virginia Crosbie (Ynys Môn) (Con)]

It is a pleasure to follow my hon. Friend the Member for Waveney (Peter Aldous), who is so erudite and passionate, and to speak on Second Reading.

My constituency of Ynys Môn is known as “energy island”: we have wind, wave, solar and tidal. We are soon to have hydrogen, and we have a long history in nuclear. Back in 1963, construction began on an £80 million nuclear power station at Wylfa head, near Cemaes on Anglesey. It was chosen for its strong rock foundation and its access to sea water. Its two nuclear reactors went live in 1971. At the time, Anglesey was considered to have

“leapt dramatically forward into the space age”.

The station was described as

“the nation’s biggest and most powerful…yet interfering as little as possible with the beauty of the Anglesey scenery”.

Some 3,000 people were involved in its construction and in 1964, 20 local 16-year-olds became the first apprentice intake. They trained to become

“the youngest engineers to take charge of an atomic power station in the world”.

At its height, Wylfa employed around 500 people. Just along the coast, an aluminium smelting works, employing a similar number of people, was built in Holyhead to be able to access cheap electricity direct from Wylfa.

In 2006, however, as the lifespan of Wylfa power station was drawing to an end, the Isle of Anglesey County Council voted to support the construction of a second plant. Wylfa B, now known as Wylfa Newydd, was intended to take over from Wylfa as it came to the end of its working life. Employment was a key factor. Losing so many jobs would be tough on any part of the UK, but on Anglesey there simply was not any comparable industry on the island for people to move to. It is estimated that at the height of construction, Wylfa Newydd, or new Wylfa, would employ around 9,000 and in steady state production would have a workforce of around 900.

The old Wylfa ceased generation in 2015. The aluminium works closed shortly afterwards and just under 1,000 jobs disappeared almost overnight, yet Wylfa Newydd is still on the cards. The people of Anglesey have been on a 16-year rollercoaster journey, with the prospect of quality new careers constantly just over the horizon. The majority of Anglesey residents actively support Wylfa Newydd, but they feel forgotten. They have had enough of being offered carrots only to receive disappointment. That is why the Bill is so important to my constituency of Ynys Môn.

When Hitachi withdrew the development consent order for Wylfa Newydd at the start of this year, it cited programme financing as the main factor. I am co-founder and chair of the nuclear delivery group, which I set up with my fellow atomic kitten, my hon. Friend the Member for Copeland (Trudy Harrison), who is a passionate advocate for nuclear. Over the past 18 months, we have regularly raised new-build financing as a significant concern. I am delighted to see BEIS respond to this issue and bring this Bill to the table. Companies such as Bechtel and Rolls-Royce are already keen to establish new nuclear at Wylfa Newydd, so this proposed regulated asset base model offers significant hope to Anglesey.

The Bill could be the starting point for regenerating an area that desperately needs levelling up. It could finally lead the people of Anglesey over the horizon into a whole field of carrots. With that in mind, I appeal to my constituents and the people of north Wales, who would also benefit: now is the time for us to come together as a community and embrace the opportunity that the Bill offers us. We cannot afford to stay in our partisan corners, we cannot afford to stay silent, and we cannot afford to let this opportunity slip through our fingers.

In 2015, the Welsh Government described Wylfa Newydd as a “once in a generation opportunity” and estimated that it could be worth £5.7 billion to the Welsh economy. Ten years on, this project will be a game changer locally, regionally and nationally. Nearly two decades of waiting for Wylfa Newydd may finally be coming to an end. Wylfa Newydd is rightly described as the best nuclear site in the UK. The Prime Minister has said that he is a “fervent supporter”.

I welcome the Bill and, for the sake of our young people and future generations, we must put aside our political differences and work together. Diolch yn fawr, Mr Deputy Speaker.

[Mr Deputy Speaker (Mr Nigel Evans)]

Diolch yn fawr.

Net Zero Strategy and Heat and Buildings Strategy

Virginia Crosbie Excerpts

Tuesday 19th October 2021 Commons Chamber

[Virginia Crosbie (Ynys Môn) (Con)]

I welcome the steps set out by my right hon. Friend to unleash the potential of our whole country. Can he reassure my Ynys Môn constituents that they will benefit from the 440,000 net zero jobs being created by 2030 and the £90 billion of private investment? Will he accept my invitation to visit Wylfa Newydd and see at first hand why the Prime Minister is such a fervent supporter?

[Greg Hands]

I thank my hon. Friend, who is a tireless advocate for Ynys Môn, particularly on the economy and jobs. Of course, Ynys Môn, the whole of Wales and north Wales will benefit from the new green jobs that this net zero strategy will help to foster. The new money announced today for the future nuclear enabling fund is for optionality for the future, so that we can make future decisions based on good information on nuclear. Obviously, that includes potential for sites such as Wylfa.

UK Gas Market

Virginia Crosbie Excerpts

Monday 20th September 2021 Commons Chamber

[Kwasi Kwarteng]

The hon. Lady knows that we have discussed the heat and building strategy, and I have discussed it personally, on a number of occasions. We have said that it will be published very soon, and I look forward to her response when it is.

[Virginia Crosbie (Ynys Môn) (Con)]

I welcome the Secretary of State’s hard work over the weekend to secure our gas supplies and protect consumers. Does he agree that the long-term solution to energy price spikes is to reduce our dependence on fossil fuels and accelerate the transition to a more cost-efficient and resilient energy system based on renewable energy and nuclear power, through projects such as Wylfa Newydd in my constituency?

[Kwasi Kwarteng]

I pay tribute to my hon. Friend’s indefatigability on this issue. There never seems to be a moment when Wylfa is not on her lips, and I fully appreciate her passion for it.

Nuclear is clearly a big part of the answer to this, which is why—as Members who have read it will know—it is the third point of the 10-point plan. It is clearly an essential part of our energy mix for the future.

Advanced Research and Invention Agency Bill

Virginia Crosbie Excerpts

Report stage & 3rd reading
Monday 7th June 2021 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

Nos. 36 to 40 on the speakers’ list have withdrawn, so we go to Virginia Crosbie.

[Virginia Crosbie (Ynys Môn) (Con)]

Thank you, Madam Deputy Speaker. It is a pleasure to speak in this important debate on ARIA and to follow the hon. Member for Strangford (Jim Shannon), who always speaks so eloquently and passionately. I particularly liked the fact that he mentioned his grandchildren.

I was proud to serve on the ARIA Bill Committee and I would like to thank the Minister and all those who have contributed to this landmark legislation. Setting up this agency will deliver on yet another manifesto commitment from 2019 and I wholeheartedly support the Bill. The last year has shown us the power of science to deliver solutions, and now is the time to further invest in the ideas of the future that will allow us to continue to make scientific progress.

ARIA needs to have as broad a remit as possible, not to be restricted in its scope, which would be the outcome if new clause 2 were accepted. Scientists need to have space and time to research new technologies without restrictions about the agency’s mission imposed upon them. In the words of Professor Bond in the evidence sessions of which I was part, this is about “radical innovation”.

In my constituency of Ynys Môn, there is already the infrastructure in place for research and innovation, hosted by the Menai Science Park, which is the innovation hub for Bangor University. Businesses such as Tech Tyfu, a vertical farming pilot project in Gwynedd and Ynys Môn delivered by Menter Môn, provide the opportunity for the UK to increase UK food production. We need to encourage more people with an innovative and entrepreneurial mindset, such as those at Tech Tyfu and the others located at M-Sparc, to engage with research in order to solve the problems that the world faces today and in the future. We need to recruit the right people and trust them, not micromanage them.

Amendments 1 and 12 look to focus ARIA’s core mission on achieving net zero and the impact of climate change. I am fully supportive of the goal of achieving net zero, as was laid out in the manifesto on which I proudly stood in 2019. Indeed, Ynys Môn— also known as energy island—will play a key part in delivering this target. However, restricting ARIA’s mission to this goal is not necessary, as we have already legislated for the net zero target by 2050, with ambitious interim targets and a cross-governmental framework in the Prime Minister’s 10-point plan.

ARIA also gives the opportunity to level up around the country, be truly inclusive and involve the brilliant minds from all over the United Kingdom, including those in Wales. It needs to be able to do that without being weighed down by bureaucracy. I spoke in Committee about why ARIA should be free from the freedom of information regime proposed in amendments 8 and 14. In Committee, we heard evidence about the potential burden of administration. UKRI told us that it had a team of staff purely to deal with the 300-plus FOI requests it receives annually. As Professor Dame Ottoline Leyser said, UKRI is “happy” to be able to respond to FOI requests, but

“there is a judgment call about the burden of administration”.––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 9, Q4.]

With its unique freedoms and independence to enable transformational research, ARIA will inevitably receive a disproportionate number of FOI requests relative to its size. Our vision for ARIA is that it should be lean and agile. Do we really want it encumbered by that level of administrative burden? Do we want ARIA’s brilliant programme managers to be stifled by bureaucratic paperwork?

We also heard about whether ARIA will be able to deliver the game-changing R&D that we want if it is subject to FOI. It was Tony Blair who gave us the Freedom of Information Act and who subsequently described it as

“utterly undermining of sensible government”

To use his words:

“If you are trying to take a difficult decision and you're weighing up the pros and cons, you have frank conversations...And if those conversations then are put out in a published form that afterwards are liable to be highlighted in particular ways, you are going to be very cautious.”

Professor Philip Bond put this view into an R&D context in his discussions with the Committee:

“if you are asking people to go out on a limb to really push the envelope, I would assert that there is an argument, which has some validity, that you make it psychologically much easier for them if they do not feel that they are under a microscope.” ––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 29, Q21.]

Mr Blair and Professor Bond perfectly highlight the fundamental reason why ARIA should be free from FOI: the last thing our scientists need when they are looking for the next internet is to be held back by caution.

The Bill already contains very strong statutory commitments to transparency: an annual report will be laid before Parliament; ARIA’s accounts and spending will be published; non-legislative mechanisms will be set out in a framework document; and there will be a thorough and transparent selection process to ensure it is led by respected individuals who will uphold public honour. Freedom of information requests can still be submitted to the Department for Business, Energy and Industrial Strategy and any organisation that ARIA works with. Any contracts awarded by ARIA will be publicly available.

ARIA will give the United Kingdom and the island of Ynys Môn the opportunity to grasp and shape our future on a global stage. It will help drive innovation and investment, and secure our status as a science superpower. I am proud—I am proud to support this Bill.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Nos. 42 to 49 on the speakers’ list have withdrawn, so we go to Angela Richardson.

Advanced Research and Invention Agency Bill (Sixth sitting)

Virginia Crosbie Excerpts

Thursday 22nd April 2021 Public Bill Committees

[Chi Onwurah]

My respect for the hon. Member only increases because he does not wish to repeat what somebody else has said. That is not always the case in this House, as we know. I welcome the intervention from the hon. Member for Newcastle-under-Lyme, and I would welcome a long discussion on probability, mathematics and statistics, but I can see that my Whip might not be entirely happy with that, so let me confine myself to this. I was not claiming that the estimate was rigorous. The hon. Member for Newcastle-under-Lyme suggested that because there will be more interest in ARIA, it will receive more Freedom of Information Act requests. That might be true for the first two or three years, but I do not think that level of interest would be maintained, even if it received more requests proportionately.

I mentioned funding because that is what enables activity, and freedom of information requests relate to that activity. Therefore, even if we doubled the greatest estimate to, say, 12, what price does the Committee think should not be paid for accountability and freedom of information? What would be too much? I was not here in Parliament for the expenses scandal, but we saw the impact that had on public confidence as we now see the cronyism scandals and their impact on public confidence and trusted institutions. Freedom of information and transparency is an essential part of that.

The Campaign for Freedom of Information reports that the Defense Advanced Research Projects Agency, with its significantly higher budget, was subject to just 48 requests in 2019. During the evidence sessions, we heard that UKRI was happy to deal with FOI requests, because it viewed them as an important aspect of spending public money. We also heard—this was telling—that the Royal Society of Edinburgh, although it is not subject to FOI, behaves as if it is and responds to requests because it views them as an important aspect of transparency. Regardless of whether the Minister accepts the amendment—I very much hope that she will—ARIA should echo the Royal Society of Edinburgh’s approach.

We heard in evidence from DARPA that it believed that rather than hindering the agency, the transparency offered by FOI requests was useful in building public trust in its work. In fact, DARPA’s deputy director stated that the level of oversight that it is subject to is “important to its success”. Other high-risk, high-reward agencies such as the Federal Agency for Disruptive Innovation in Germany, Vinnova in Sweden and the French National Centre for Scientific Research are all subject to the freedom of information requirements of their respective countries. What makes ARIA so different?

The protection of sensitive information cannot be used as justification for a blanket exemption, as the Freedom of Information Act 2000 already provides exemptions where disclosure would prejudice research or commercial interests, or cause a breach of confidentiality. In their initial response to the Secretary of State’s announcement of ARIA’s FOI exemption, NESTA said:

“Radical openness and honesty is needed or distrust will undermine it. The public will expect to know what’s happening with public money”—

I think we can very much see that now—

“and greater risk requires transparency and evaluation in order to determine what works.”

The Campaign for Freedom of Information said that ARIA

“will spend hundreds of millions of taxpayers’ money on high risk projects but the government apparently wants it to be less accountable to the public than parish councils, which are subject to FOI.”

In the evidence session, Tabitha Goldstaub said that

“at Google’s moonshot factory, X…they started in secret and everything felt so appealing, to protect people from any feeling of failure, but what they learned is that there are so many other much better ways than secrecy to incentivise people and to give them the freedom to fail. Actually, allowing for more transparency builds much more trust and encourages more collaboration and, therefore, better breakthroughs.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 57, Q55.]

On what we are trying to achieve with this agency, the Minister has mentioned her concerns about bureaucracy a few times, but I think we as legislators have to decide whether we believe that rules and regulations are simply mere bureaucracy to be thrown out whenever possible, or whether we believe that they can contribute both to the effectiveness of an agency and to the contract that we in Parliament have with the public to take their hard-earned taxpayers’ money and spend it as best we can to encourage and enable growth, prosperity, and a national health service—all things from which the public benefit. We cannot do that in secret; we have to do it publicly.

I really urge the Minister to accept the amendment. She knows that the exemption has come in for much criticism and that the controversy around it will continue to mar the progress of the agency. I urge her to listen to the siren voices of concern and to accept the amendment to remove ARIA’s exemption from the Freedom of Information Act.

[Virginia Crosbie (Ynys Môn) (Con)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I would like to speak briefly to amendment 22. In the past week, we have discussed the concerns about exempting ARIA from FOI requests, and we have heard evidence about the potential burden of administration. UKRI told us that it has a team of staff purely to deal with the 300-plus FOI requests that it receives annually. In addition, Professor Dame Ottoline Leyser said that although UKRI is happy to be able to respond to FOI requests,

“there is a judgment call about the burden of administration”.––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 9, Q4.]

As my hon. Friend the Member for Newcastle-under-Lyme so eloquently put it—echoed by my hon. Friend the Member for South Basildon and East Thurrock—with unique freedoms and independence to enable transformational research, ARIA will inevitably receive a number of FOI requests that is disproportionate to its size.

Our vision for ARIA is that it should be lean and agile. Do we really want it encumbered by that level of administrative burden? Do we want ARIA’s brilliant programme managers to be stifled by bureaucratic paperwork?

We have also heard about whether ARIA will deliver the game-changing R&D that we want if it is subject to FOI. It was Tony Blair who gave us the Freedom of Information Act and it was he who subsequently described it as

“utterly undermining of sensible Government.”

To use his words:

“If you are trying to take a difficult decision and you're weighing up the pros and cons, you have frank conversations...and if those conversations then are put out in a published form that afterwards are liable to be highlighted in particular ways, you are going to be very cautious.”

Professor Philip Bond put this view into an R&D context in his discussions with us last week. He said that

“if you are asking people to go out on a limb to really push the envelope, I would assert that there is an argument, which has some validity, that you make it psychologically much easier for them if they do not feel that they are under a microscope.” ––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 29.]

Mr Blair and Professor Bond perfectly highlight the fundamental reason why ARIA should be free from FOI. The last thing that our scientists need when they are looking for the next internet is to be held back by caution.