Andrew Griffith is the Conservative MP for Arundel and South Downs.
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We have seen no further detail of the Government’s proposed steel strategy, or any confirmation of longer-term plans to protect British steelmaking. Labour Members refused to back a coking coalmine to produce some of the raw materials that blast furnaces rely on. Instead, they wait for shipments to arrive from halfway around the world. Most importantly, the Government have not set out how they intend to reduce the enormous burden of sky-high energy costs. Instead, the Secretary of State for Energy Security and Net Zero seems dead set on delusional policies that drive energy prices in this country even higher. We cannot make steel sustainably when we have the highest energy prices in Europe. Prices for industrial energy in Birmingham in this country are four times higher than those in Birmingham Alabama. We cannot make steel if we do not have coal.
I thank the Chair of the Energy Security and Net Zero Committee for his important question. He makes the point that we need steel for green energy—wind turbines, carbon capture and so on—and our energy security. There is an important wider point, which is that since the election, £43.7 billion has been committed by the private sector to invest in clean energy in this country. Those on the Opposition Benches who are questioning net zero are putting at risk thousands of jobs that we will see delivered through clean energy. We have to be very careful what we wish for, because that investment is incredibly important for our country. The green energy sector is growing 10% faster than the rest of the economy. These are important things and important jobs.
My hon. Friend makes a really sensible point about grid connection. We have not just seen this at Scunthorpe; we have seen it with many different companies, where grid connections being 15 or even 20 years away makes investment completely unviable. My right hon. Friend the Secretary of State for Energy Security and Net Zero announced last week how we are reforming the grid queue, getting rid of zombie projects and ensuring that we prioritise what is important. We will ensure we are doing everything we can to improve that connection at Scunthorpe.
In her statement, the Minister celebrated the fact that this is not the end of British Steel, and we all welcome that, but Labour’s policies very well could be the end of domestic oil and gas, whether it is the extended windfall tax, removing investment allowances or no new oil and gas licences. We are walking towards the end of our domestic oil and gas sector, which has proven so beneficial to us across Scotland and the UK, all the while offshoring our emissions and relying on, at best, unreliable and, at worst, hostile states such as China to supply our renewable energy infrastructure. Taking the example of British Steel, is it not time to reverse Labour’s headlong rush towards ending oil and gas in the North sea and to rely on our domestic supply for as long as we can, to help our energy security into the future?
Some 70,000 jobs have been lost in North sea oil and gas since the Conservatives were in power, because it is a declining basin and it is getting harder to drill for oil and gas—we know that. The transition is happening; the issue is how we support that. This Government are putting in place a huge amount of support to try to ensure that those very skilled workers can transition into the green energy sector. I repeat this statistic: £43.7 billion of private sector investment in clean energy has been promised since this Government came to power. Is it really the Conservatives’ opinion that we should throw away all that investment and not protect all those jobs for the future?
The Government have done the right thing, because steel is strategically important and the jobs are locally important. The Minister has asked what is next. I suspect that the House will come back to this issue, maybe very shortly, because over the last decade, we have seen energy-intensive industries flee the United Kingdom. Aluminium is gone, we have hardly any oil refineries, and we have one steel plant left. The reason for that is the mad net zero policy, which the Minister has tried to defend today. Decarbonisation has increased our energy costs, so that they are three times higher than in the US and eight times higher than in China. We do not have any local supplies of raw materials; we bring them halfway round the world. Carbon taxes add to the cost for businesses. Does the Minister accept that the economic reality is that we pour public money in at one end, and see it going down the net zero drain at the other?
I just do not agree with the right hon. Gentleman’s position on this issue. He is right to say that we have seen the offshoring of manufacturing over a period of years. We have not entirely lost the aluminium sector—there is one smelter left, but that is all. Indeed, I meet representatives of the aluminium sector regularly, because it has had 25% tariffs put on it, just as the steel industry has. The trade body, UK Steel, was really clear that the UK’s reliance on natural gas power generation leaves us with higher prices. The steel sector does not pay the green levies because of reductions that it is given. It is not net zero causing this problem; the challenge is how we get the clean energy that we need to stop our reliance on the overseas oil and gas market. He is right to say that we have seen offshoring, and we are working to stop that.
The Minister talks about working at pace. If she wants to see what pace looks like, she might consider the Business and Trade Committee’s report on steel, which was turned around in rapid time—much faster than the snail’s pace review of steel, which has yet to emerge. Will it do so in the spring, or the summer? No one is quite sure. When that review finally emerges, will it address the elephant in the room, which is the ridiculous energy costs in this country? They have been driven up in part by gas, but also by carbon taxes, and by the renewable subsidies laid on by this Government.
Full debate: British Steel
Let me conclude with some questions for the Secretary of State on behalf of all our constituents. Will he publish an urgent assessment of the impact of today’s tariffs on the UK economy so that the markets can see whether the Chancellor’s emergency Budget sums still add up, or whether she will be back for more taxes? When will he give the car makers the clarity they need on the ZEV—zero emission vehicle—mandate? Will he undertake to keep Parliament informed and to publish the UK’s broader objectives—not its negotiating strategy, but the broader objectives—in these trade negotiations with the UK, precisely as the previous Government did in March 2020? Will he assure us that any deal will back British farmers and food producers and uphold our high environmental protection and animal welfare standards, which we have enhanced and upheld in the agreements that we have reached since leaving the EU?
I am pleased to hear the Secretary of State’s commitment to steel. Stocksbridge Speciality Steels in my constituency is a strategically significant site with world-class, unique capability for creating specialist parts that will be essential in increasing our defence capacity and net zero infrastructure. Last week, I held a community listening event on the Government’s excellent steel strategy. The message was clear: let us ensure that British-made steel is best. Does the Secretary of State agree that today’s news further demonstrates why it is so important that this Government are committed to a £2.5 billion plan for steel?
I thank the hon. Member for his words on the automotive sector. On the ZEV mandate that he references, it was a policy of the previous Government to be clear. We inherited that policy. The consultation we have opened with our colleagues in Department for Energy Security and Net Zero and the Department for Transport will look at that in the context of a fall across all European markets in automotive production and demand, and this incredible entry on to the world economy of increased Chinese production, which is a challenge for all of us. He will also know that the automotive sector is very much an export-led sector—we export 80% of what we make—and all our key markets have the transition policies in place towards electric vehicles, so if we did not make that transition, we would not have a product to sell in those key markets. We have to work with industry to do it, but we also have to recognise that what we inherited from the Conservative party was not working. That is why we opened the consultation, and we will publish the response very soon.
The hon. Gentleman asks a specific question about the regulatory environment we inherited. I cannot pre-empt the publication of the consultation, which has just finished, but he will be aware of comments I have made publicly about changing that to reflect different circumstances. He will not have to wait long for the outcome to be published, and I can tell him that the Secretary of State for Transport, the Secretary of State for Energy Security and Net Zero and I are aligned on ensuring that we get the regulatory environment correct for the future.
I welcome the pragmatic words given around the zero emission vehicle mandate. Ultimately, without compromising our aims, we can work together with businesses and trade unions to get a better outcome, but I wonder if the same approach can be taken elsewhere. The AI regulations that we have been discussing, which I think were mentioned earlier, come to mind. [ Interruption. ] I will be very quick, Madam Deputy Speaker. There is also HFSS advertising and the sustainable aviation fuel mandate. We do not need to compromise on all those things, but we can work closely with industry to get the right outcome.
Full debate: UK-US Trade and Tariffs
Does my hon. Friend agree that this is yet another hammer blow to British businesses? We have had the Labour Government introducing £25 billion of tax with the employers’ national insurance contribution, £5 billion of costs with workers’ rights and a never-ending increase in energy bills as they drive forward on their net zero fantasy. Now they will be able to change regulation more or less on a whim, whenever they feel like it, destroying certainty and confidence for British businesses.
Full debate: Product Regulation and Metrology Bill [Lords]