Pension Funds: Financial and Ethical Investments

Debate between Wera Hobhouse and Ed Davey

Wednesday 22nd May 2019 Westminster Hall

[Sir Edward Davey]

I believe that is not the case. We need to ensure that the parliamentary pension fund becomes zero-carbon. We as Parliament need to say, “Divest Parliament.” That would show leadership both to public schemes, particularly in local authorities, and to the wider sector. Let us remember that we have already discovered four to five times the fossil fuels the world would need to exceed a climate change budget. We already have too many fossil fuels. We should not invest in more. We should disinvest now.

[Wera Hobhouse (Bath) (LD)]

The previous Government target to cut carbon emissions by 80% by 2050 is no longer relevant because we have to cut our emissions to net zero, so fracking, which is a source of carbon fuel, is no longer an option for this country. Should not the Government reflect that new reality and issue new planning guidance for local authorities or give them new powers? Such leadership would have an immediate consequence: investment in fracking as a source of fossil fuel would no longer be an option or attractive to investors.

[Sir Edward Davey]

I totally agree with my hon. Friend. In government, we placed tough regulations on that sector, which were based strongly on environmental considerations. It has not been able to grow to meet them. It has nowhere to go.

Permitted Development and Shale Gas Exploration

Debate between Wera Hobhouse and Ed Davey

Thursday 28th March 2019 Commons Chamber

[Sir Edward Davey (Kingston and Surbiton) (LD)]

I refer the House to my entry in the Register of Members’ Financial Interests, especially in respect of solar power and community energy renewables.

When I was Secretary of State and had to deal with these issues, some people in the coalition thought that shale gas was the answer to everything and would reduce energy prices. They were extremely keen to push it forward. I was not one of those people. I was helped in my far more cautious approach by colleagues such as the hon. Member for Fylde (Mark Menzies) and others on the Conservative Benches, who realised that we had to be extremely cautious about the environmental issues and the local planning issues. One reason I am proud of my hon. Friend the Member for Bath (Wera Hobhouse) for calling this debate is my concern that the controls agreed by the coalition—being very strong on local democracy and risks such as seismicity—are in danger of being removed. I was concerned that this relatively new industry had to be safely regulated, for the environment and to take account of local issues.

When we looked at seismicity in particular, we took advice from the experts. We had advice from the Royal Society and the Royal Academy of Engineering about what would be the right approach to regulation on seismicity. We consulted widely. I published the report that was given to me, and I asked for people’s opinions on it. We took a precautionary approach even to the evidence.

I came to the view, and accepted the recommendation, that the traffic light system was the way to go and that we needed a precautionary approach, not least because the geologists and experts were telling us that even a small seismic event underground could damage the casing of the wells and the bore holes of the fracks. I therefore accepted that we needed to be cautious, and it was important to give that reassurance to the public. We decided that we would go ahead, but only on that explicitly cautious basis.

In the ministerial statement I gave in December 2012, setting out that cautious regulatory regime, I said that it could perhaps be looked at again in due course. However, for the benefit of the House, let me be really clear about what we were saying at that time. We wanted a significant amount of evidence—this had to be evidence based. So far we have had very few fracking experiences in this country, so we do not have anywhere near the number of data points or the amount of evidence that we would need to possibly allow anything to go forward.

[Wera Hobhouse]

On that point, does my right hon. Friend agree that it is interesting to compare the Government’s planning approach to fracking with their planning approach to renewable energy?

[Sir Edward Davey]

My hon. Friend makes a good point. If the Government proceed to allow permitted development, that will be in sharp contrast to their planning approach to onshore wind. I had almost weekly battles with the then Secretary of State for Communities and Local Government, who was trying to stop onshore wind. We won most of them, but after the 2015 election the Government made it almost impossible to build onshore wind in England and Wales. That very negative approach to renewables stands in stark contrast to what the Government appear to want to do on fracking.

I bring that to the House’s attention because those are completely the wrong priorities, not least because of the climate change crisis. If anything, I have got more sceptical about fracking over the years, because the evidence—particularly after Paris—is that we need to be even more rigorous in reducing our fossil fuel usage. Now that we have gone from a 2° target to a 1.5° target, we have to push the renewable agenda further forward.

I would say to the Minister that when we were thinking about shale gas, we were thinking about making sure it was linked to technologies such as carbon capture and storage, which are now in abeyance. Without CCS, there is much less of an argument for fracked gas. Moreover, renewables technology has increased and improved dramatically. Prices have come down much further. We have seen storage technology come on. We are not going to need the gas that people thought we would need just a few years ago.

The relaxation of regulations, whether on seismicity or planning, is completely unjustified, and I hope the House will send a clear message to Ministers. However, I would go even further. Given that we have had such progress on renewables and storage, the case for fracking gas is much weaker than it was just a few years ago. I urge the Government to rethink their priorities. Let us bank and capitalise on the amazing success of new green technologies; let us not look backwards.

EU Referendum: Electoral Law

Debate between Wera Hobhouse and Ed Davey

Tuesday 27th March 2018 Commons Chamber

[Sir Edward Davey]

A number of bodies could ultimately look at the different accusations. We have a live investigation by the Electoral Commission, and we await the result of that. My right hon. Friend the Member for Carshalton and Wallington spoke very much about the Electoral Commission in his speech. We also have the investigations by the Information Commissioner’s Office into the related allegations with respect to Cambridge Analytica and Aggregate IQ. Many of us feel that the evidence so far suggests that the police should be investigating these organisations, because there could be a criminal act. Let me absolutely clear: I certainly am not suggesting that Ministers are responsible for any investigation. That would not meet my requirements for an inquiry.

[Wera Hobhouse]

Does my right hon. Friend agree that while an independent body should investigate, we perhaps need to update the law and do something here in Parliament in order to adequately respond to these things in the future?

[Sir Edward Davey]

Indeed. I have written to the Chair of the Home Affairs Committee, the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper), to ask whether her Committee could hold a parliamentary inquiry into the different aspects that are not covered by the inquiry of the Digital, Culture, Media and Sport Committee. I seriously think that the House needs to augment and support the investigations by those independent bodies. We have powers in the House to bring people to the bar to discuss and to give evidence, and that is the right and proper thing to do.