Oral Answers to Questions

Virginia Crosbie Excerpts

Tuesday 6th February 2024 Commons Chamber

[Nigel Huddleston]

No, I do not agree. The hon. Member should be aware that the OECD suggests that in the coming years we will be growing faster than France, Italy and Germany. Of course, the Government have a strong track record against our OECD friends over the last 14 years, and Scotland benefits from this economic growth.

[Virginia Crosbie (Ynys Môn) (Con)]

As in Scotland, business rates are devolved in Wales. With business rates relief set to fall from 75% to 40%, businesses in Wales will pay almost twice as much as in England. Does my hon. Friend agree that the Welsh Labour Government should be supporting local businesses such as the Kinmel Arms in Moelfre and not increasing the number of Senedd Members by a staggering 60%?

[Nigel Huddleston]

My hon. Friend puts it well. Of course, we have seen the considerable protections and support given in retail, hospitality and leisure business rates relief in England. That has not been extended to the same extent in Wales, and Scotland failed to extend it as well. She makes an important point.

Oral Answers to Questions

Virginia Crosbie Excerpts

Tuesday 19th December 2023 Commons Chamber

[Virginia Crosbie (Ynys Môn) (Con)]

2. What recent assessment his Department has made of the potential impact of Anglesey freeport on the economy in North Wales.

[The Chancellor of the Exchequer (Jeremy Hunt)]

Merry Christmas, Mr Speaker. Today is the funeral of former Chancellor Lord Darling, and if I may, I will make some comments about that in my topicals statement. Anglesey freeport will be a national and international hub for trade, innovation and commerce, regenerating communities by attracting new business, and spreading jobs, investment and opportunity.

[Virginia Crosbie]

Nadolig llawen pawb. I was delighted that the Chancellor extended freeport tax reliefs in England in his autumn statement. Does he agree that if those extensions are realised in Wales, it will give companies the confidence to invest and help deliver the £1 billion investment, and thousands of jobs forecast for our Anglesey freeport? Will he join me in thanking all those at the Isle of Anglesey County Council and Stena Line who worked so hard recently to submit the outline business case?

[Jeremy Hunt]

I am happy to join my hon. Friend in thanking all those involved in promoting the Anglesey freeport, which we think may create 5,500 jobs. We are working closely with the Welsh Government to agree on how the 10-year window to claim reliefs can be extended across freeports in Wales. I pay tribute to my hon. Friend, who has done more than anyone to put Ynys Môn on the map.

Oral Answers to Questions

Virginia Crosbie Excerpts

Tuesday 21st March 2023 Commons Chamber

[James Cartlidge]

My hon. Friend speaks with passion, experience and expertise, and he is absolutely right. Of course we work closely with investors and business—one key example is the contracts for difference regime. Last July, we had the largest ever allocation of contracts through the contracts for difference process, contracting about 11 GW of clean power, which is enough clean energy for 12 million homes. That is a huge step forward, and it shows that we are delivering on net zero. As a party, we will balance that with energy security so that we learn the lessons of the last 12 months.

[Virginia Crosbie (Ynys Môn) (Con)]

Ynys Môn is known as energy island. It has wind, wave, tidal and solar, and will have, I hope, new nuclear at Wylfa. For more than three years, I have campaigned for Anglesey to be a freeport, which would turbocharge the island’s economy and help the Government to deliver net zero. We are due to hear from the Welsh Government and the UK Government by early spring on whether our island’s bid has been successful. It feels like early spring in my Holyhead garden. Does it feel like early spring in the Chancellor’s garden?

[James Cartlidge]

My hon. Friend’s constituency is an island, and she is its rock—there is no doubt about that; she champions these issues consistently. I am assured that the Chief Secretary to the Treasury is giving careful consideration to her proposition, and that just underlines that she has been a champion for her constituency. By delivering on our green plans, we can generate green jobs and green investment in every part of the United Kingdom, including Wales.

Oral Answers to Questions

Virginia Crosbie Excerpts

Tuesday 7th February 2023 Commons Chamber

[James Cartlidge]

I respect the hon. Lady’s consistency in asking these questions, but I beg to differ when she says we are lagging behind. We have reduced our emissions faster than any other G7 nation. Last year, 40% of our energy came from renewables and just 1.5% came from coal. We have seen huge investment in renewables. Our new Department is called the Department for Energy Security and Net Zero because it is about not just net zero but energy security. On the transition to net zero, we still need to invest in the North sea and our domestic energy sources.

[Virginia Crosbie (Ynys Môn) (Con)]

I am proud of this Government’s track record on renewable energy, and I welcome today’s announcement that there will be a new Department for Energy Security and Net Zero. Does the Minister agree that nuclear baseload is key if we are to decarbonise the transport and manufacturing sectors and deliver this Government’s net zero 2050 target?

[James Cartlidge]

I say it again but, if anyone is a champion of the nuclear sector, it is my hon. Friend, who has consistently championed it. She is right that renewables are crucial but that we need baseload energy. Surely, on both sides of the House, if we have learned anything from the past 12 months and what has happened following Putin’s invasion of Ukraine, it is that we need policy not only on renewables but on overall energy security, to which nuclear is crucial.

Autumn Statement

Virginia Crosbie Excerpts

Thursday 17th November 2022 Commons Chamber

[Jeremy Hunt]

We absolutely want to think about care homes and small businesses in the hon. Lady’s constituency, and in mine, and we are spending roughly £18 billion on the support we are giving this winter. We are doing a lot as a Government, but we want people to have certainty and to know what the support will be next April. We need businesses to help themselves as much as we help them, which is why they need to play their part in important energy efficiency measures. Our intention is to announce that business support before Christmas.

[Virginia Crosbie (Ynys Môn) (Con)]

This Government’s commitment to Sizewell C and large-scale nuclear is welcome, and it was noted that Labour’s shadow Chancellor failed to mention nuclear. When will the launch of Great British Nuclear be announced, and will its scope include large-scale gigawatt nuclear at sites such as Wylfa in my constituency, as well as small modular reactors?

[Jeremy Hunt]

There is no more formidable advocate for big nuclear investment on Ynys Môn than my hon. Friend. Indeed, when I went on a family holiday to Ynys Môn this summer, she tried to persuade me to visit the potential site of a nuclear power station with my children. I apologise that I did not take her up on the offer, but it shows her commitment. My right hon. Friend the Business Secretary will be making an announcement soon on things such as the launch of Great British Nuclear—I hope before Christmas, but if not just afterwards—because we want to crack on with our nuclear programme.

Oral Answers to Questions

Virginia Crosbie Excerpts

Tuesday 15th November 2022 Commons Chamber

[James Cartlidge]

I repeat the point I made to the hon. Member for Aberavon (Stephen Kinnock) about content. I hope that addresses some of my right hon. Friend’s concerns, but I am more than happy to meet him first and then feed back to other Ministers and see what more we can do. He is absolutely right that this is an extraordinarily positive opportunity and, if we seize it, it will deliver for parts of our country such as his constituency.

[Virginia Crosbie (Ynys Môn) (Con)]

The BP Mona wind farm, 20 miles off the coast of Anglesey, will generate 1.5 GW of electricity and provide more than 1,500 construction jobs and £3.5 billion of investment in an area desperately in need of good-quality jobs. Will the Minister urge his colleagues in the Senedd to invest in the Holyhead breakwater so that BP Mona can move the project forward, and will he confirm that investment in Holyhead port is the responsibility of the Welsh Government, not the UK Government?

[James Cartlidge]

I cannot think of a colleague who champions energy investment in their constituency quite as much as my hon. Friend. I can confirm that the port of Holyhead is a very important part of the wider transport and economic infrastructure of the UK. I know that the Minister for Aviation, Maritime and Security has written to her and specified quite clearly whose responsibility that is, and she is absolutely correct.

The Growth Plan

Virginia Crosbie Excerpts

Friday 23rd September 2022 Commons Chamber

[Kwasi Kwarteng]

It is a very basic lesson. We currently tax bonuses at about 50%, which goes into public services. It is absolutely legitimate to get more people into the labour market. That seems to be a reasonable thing to want to do.

[Virginia Crosbie (Ynys Môn) (Con)]

As chair of the Anglesey freeport bidding consortium, I am delighted with the announcement of new investment zones by the UK Government. Can the Chancellor say what that means for Ynys Môn and its freeport bid, especially with a deadline to submit by 24 November?

[Kwasi Kwarteng]

Ynys Môn has a fantastic Member of Parliament in my hon. Friend, and we are focused not only on freeports, but on the future of nuclear. Ynys Môn represents a hugely exciting opportunity in that regard.

Oral Answers to Questions

Virginia Crosbie Excerpts

Tuesday 15th March 2022 Commons Chamber

[Lucy Frazer]

The hon. Gentleman knows from the statistics announced this morning that wages are up in real terms compared with pre-pandemic levels. In fact, unemployment is now almost back to pre-pandemic levels, and is lower than in Canada, France, Italy, Spain and Australia. On his specific question, the North sea oil industry already contributes additional taxes through a 40% rate, which is double the amount that other corporations pay.

[Virginia Crosbie (Ynys Môn) (Con)]

My constituency has one of the lowest rates of gross value added in the UK and is desperately in need of jobs and investment. The island is known as “energy island” because we have wind, waves, solar, tidal and—hopefully—nuclear. I was delighted to hear the Chancellor mention nuclear and the fact that he has committed to the £120 million future nuclear enabling fund, but will he also commit to publishing the criteria and bidding process, so we can move at pace in this vital sector?

[Lucy Frazer]

It is great to see the good work going on in my hon. Friend’s constituency. Of course, her question is for our right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy, who I am sure is considering it carefully.

Oral Answers to Questions

Virginia Crosbie Excerpts

Tuesday 7th December 2021 Commons Chamber

[Rishi Sunak]

My right hon. Friend obviously speaks with authority on the topic; I am grateful for his support and engagement on these matters over the past year and a half. He is absolutely right: thanks to the actions of this Government’s plan for jobs, unemployment has now been falling for nine months in a row, record numbers of people are in work and wages are rising. As my right hon. Friend says, that is the best way to help people. That is what this Government are doing.

[Virginia Crosbie (Ynys Môn) (Con)]

My Ynys Môn island constituency has one of the lowest gross value added levels in the UK and is in desperate need of investment to reverse that inequality. Can the Chancellor confirm that the match funding announced in the nuclear sector deal is in place for the proposed thermal hydraulic testing facility on Anglesey?

[Rishi Sunak]

I hope that my hon. Friend will forgive me for not treading on the toes of the Business Secretary, but what she will know is that we allocated £120 million for future nuclear development in the Budget and spending review. I know that the subject is of keen interest to her and that she has long campaigned on it in her area. I am happy to support her in her conversations with the Business Secretary as he decides how to allocate that funding.

Nuclear Energy (Financing) Bill (First sitting)

Virginia Crosbie Excerpts

Committee stage
Tuesday 16th November 2021 Public Bill Committees

[Alan Brown]

Thanks.

[Virginia Crosbie (Ynys Môn) (Con)]

Q Welcome. My first question is to Michael. Is the consumer more exposed to overruns and construction delays under CfD or the RAB financing model?

Michael Waite: In the Bill, there is not currently a clear apportionment of risk between the constructor, the developer, the investors and the consumers. It is clear that if we are developing and constructing a project, there are two approaches to ensuring there are no overruns and minimising the chances of cost and schedule difficulties. You can either take a carrot or a stick approach. If the stick is applied to the developer and the constructor, there is necessarily a larger contingency applied from day one. If I remember correctly, in the Hinkley point original negotiations there was a £2 billion contingency for potential problems and cost overruns for a first-of-a-kind project in the UK. That sort of contingency allocation can be minimised by taking more of a carrot approach, where fees and profits can be at risk but a developer and constructor is not risking losing money on the job. There are many mechanisms in place that can incentivise on-time and on-budget operation without apportioning too much risk to the construction community.

[Virginia Crosbie]

Q Thank you. David, what is the impact on the consumer of a RAB model versus a CfD financing model?

David Powell: Clearly, based on the information that the Government have put out on the RAB model, it is designed to help lower the overall cost of nuclear by lowering the cost of capital and the cost of financing. From the information I have read and discussions before, there is potentially a significant saving on large-scale projects such as Sizewell. We would hope that from building a fleet of SMRs you would be able to gain the same benefits for consumers. As I said, we have focused on trying to reduce the capital cost of the plant through simplifying the design. Add that to the benefits of the RAB model, which can help to reduce the cost of that capital through the reduction in financing, as well as increasing the incentive to deliver on schedule, there is an ideal way to try to reduce the overall costs of nuclear for consumers. We need more nuclear in the UK in order to meet the decarbonisation targets by 2035.

[Virginia Crosbie]

Q Thank you. Julia, is there a yes/no answer to this question?

Julia Pyke: Yes. I think it a brilliant question, and the answer is that in the contract for difference the construction cost overrun risk is priced in up front, so consumers pay regardless of whether you incur a construction cost overrun. That makes the capital expensive and, because it does not pay until the station turns on, you run up interest for the long construction period of nuclear. In the RAB model, the construction cost overrun risk is not priced in up front, which reduces the cost of capital. The consumer, in paying £92.50 for Hinkley, is prepaying for the risk of construction cost overrun; in the RAB model there is a possibility, which we will do everything we can to minimise, of a construction cost overrun.

An example of how the RAB model will give people more certainty to get on with repeat build is that they have put in 46% more steel at unit 2 than at unit 1 in the same timeframe. It is a combination of not pricing in the construction cost overrun risk up front, and introducing more predictability into nuclear new builds, so we stop having huge gaps between construction in which the workforce has to relearn every time you start again.

[Virginia Crosbie]

Q You mentioned the fleet effect. All but one of our nuclear reactors are coming offline over the next decade, and we are going headlong towards 2050. The Government have a net zero carbon ambition. Can we achieve that fleet effect without the RAB model?

Julia Pyke: No, I do not believe that we can. We have to make nuclear financeable, like offshore wind, and look for that fleet-build, cost-minimisation approach. The offshore wind industry has done a great job through being able to predict the opportunities to build more wind farms. We want that same fleet approach, and we want predictability so that people can have careers, and the workforce can learn and keep getting down the costs.

[Virginia Crosbie]

Q Michael?

Michael Waite: With AP1000, we can benefit from a global fleet effect. We have four operational reactors, which are breaking national and industry records. Two are approaching completion of construction, commissioning and fuel load in the US, and will bring a tremendous number of lessons learned and fleet benefits to the UK. Certainly, a potential AP1000 construction project at Wylfa and other sites can be enabled only by RAB being part of the financing solution.

[Virginia Crosbie]

Q Thank you for mentioning Wylfa. David?

David Powell: It is pretty much the same, but we are clearly developing our BWRX-300 to be a global SMR technology. We are already working with several countries, looking at the first deployment of that. We also see the UK very high in that priority list—again, bringing that fleet-build mentality and 60 years of designing these types of reactors. We are able to bring a lot of experience and know-how to that. Part of that is to try to reduce the costs of nuclear overall. We are very encouraged by seeing the RAB model, and hope that it can be applied to fleets of SMRs in the UK.

[Virginia Crosbie]

Q We had some great news regarding SMRs last week, in terms of Government support and attracting private capital. What do you think the RAB model will do in terms of reducing our reliance on overseas investment?

David Powell: I think it provides more opportunity for UK investors to come forward. We have spent a lot of time and money developing our reactor design, so we are quite well ahead now in developing projects, which is really the next stage. I think the Government funding that was announced will help the development of UK SMRs, and one of the big things that RAB does is help the development of projects. You need investors for those projects.

[Virginia Crosbie]

Q Thank you. Julia, on the impact of RAB on our dependence on overseas investment, you know the Chinese very well through China General Nuclear.

Julia Pyke: I think that having a stable CPI-linked project will make it possible for UK financial investors. That is a great thing; you can create a virtuous circle with the money of British pension funds investing in apprenticeships, skills and jobs for younger people in Britain, as well as in the production of electricity of course. I am confident that the RAB model will bring forward a lot more British investment and, exactly as you say, reduce our reliance on overseas investors.

[Virginia Crosbie]

I have a last question if I may.

[The Chair]

Quickly. I am keen to move on swiftly because we have quite a lot to cover.

[Virginia Crosbie]

Q Michael, what have you learned from your experiences of other countries’ financing, and how can you relate that to the RAB model?

Michael Waite: We are currently very active in the Czech Republic, Poland, Ukraine and so on. Those nations predominantly have either majority Government-owned utilities developing nuclear projects or Government financing for up to 100% of the project. They are reducing the cost of capital by fully leveraging Government financing, which is the cheapest financing. Those are absolutely all regulated approaches. No projects that we are doing currently rely just on market forces to develop nuclear; it is too much of a long-term project, with massive long-term benefits, to leave it up to the market.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

I have a series of questions relating to—