Infrastructure Bill [Lords]

William Cash Excerpts

Monday 26th January 2015 Commons Chamber

[Amber Rudd]

We will certainly do our best. The UK is a leader in Europe in providing our own example and in trying to corral our European partners to ensure that we move to a low carbon economy.

[Sir William Cash (Stone) (Con)]

rose—

[Amber Rudd]

I will make a little more progress.

Professor David MacKay and Dr Timothy Stone have supported the findings of the Committee on Climate Change and in 2013, they published recommendations on how to reduce emissions from shale gas operations, which the Government have accepted. In addition, the Environment Agency has agreed to make green completions—techniques to minimise methane emissions —a requirement of environmental permits for shale gas production.

--- Later in debate ---

[Amber Rudd]

The hon. Gentleman makes an interesting point. I am confident that our amendment addresses exactly that. The Committee on Climate Change will take a view on what it sees, now that there is an obligation on the Secretary of State to consult with it. I am encouraged by the fact that that obligation is now in place.

[Sir William Cash]

On the point made by my hon. Friend the Member for Warrington South (David Mowat), is the Minister aware that, historically, the German nation has been providing massive subsidies—up to £4 billion a year—to its coal industry? She could do something in the Council of Europe about solving the problem that she has been describing. Will she do that?

[Amber Rudd]

I thank my hon. Friend for his expression of confidence in our ability to work with our European partners to improve output in the UK and in Europe more widely.

--- Later in debate ---

[Amber Rudd]

I shall not take any more interventions, as I must finish my comments.

Amendments 50, 68, 69 and 73 touch on the recovery of UK petroleum. Amendment 50 would delete clause 37, which puts into primary legislation a new duty to maximise the economic recovery of oil and gas. The Government feel that oil and gas recovery makes an important contribution to the national economy by supporting jobs and growth. In June 2013, we commissioned Sir Ian Wood to review UK offshore oil and gas recovery and its regulation, and we have been making good progress implementing the recommendations.

The amendments would also place a moratorium on hydraulic fracking for shale gas to reduce the chance of our carbon budgets being breached. As I indicated, UK shale development is compatible with our goal to cut greenhouse gas emissions and does not detract from our support for renewables. I hope hon. Members will find this explanation reassuring and will not press their amendments.

I thank my hon. Friend the Member for Wealden (Charles Hendry) for tabling new clauses 10 and 11. It is critical for any Government to secure reliable gas supplies, and we keep our gas security under constant review, but let me be clear: the risks to consumers are low. We still have significant levels of domestic gas production, pipelines from Norway, the Netherlands and Belgium, liquefied natural gas terminals and 10 gas storage facilities. Indeed, two new gas storage sites have opened for business in the last six months. This diversity of supply is how our gas needs are met.

Under the Gas Act 1986, the Government and the regulator have a duty to carry out their functions in a way that protects the interests of existing and future gas consumers, including the security of supply. Ofgem also has the ability to launch a significant code review, if it suspects a problem in the gas market. I respect my hon. Friend’s experience on these matters and take his concerns seriously, and on that basis, I will commit to including information about gas storage capacity in our annual statutory security of supply report to Parliament. I hope he will find that reassuring.

[Sir William Cash]

On that point, will my hon. Friend give way?

[Amber Rudd]

I will not, I am afraid, as I need to finish. I am sure other Members would like to speak.

On new clause 1, the Government welcome in principle the sentiment behind the proposed amendment to the Environmental Permitting (England and Wales) Regulations 2010 to make explicit reference to hydraulic fracturing, and I would like to reassure hon. Members that the Government will continue the work we have initiated and introduce any appropriate changes to the regulations in due course. I therefore ask hon. Members not to press the new clause.

It is my firm belief that there is no need for new clause 19(e) or amendment 59, because the necessary protections are already in place. Outside source protection zone 1 areas, extraction activities will be permitted only if they do not pose a significant risk to groundwater.

In covering all the amendments and new clauses, I hope I have reassured hon. Members of the care the Government are taking to develop the best shale gas environment we can, for the benefit of the UK generally.