Ian Lavery is the Labour MP for Blyth and Ashington.
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One thing that needs to be focused on is compensation, as was mentioned by my hon. Friend the Member for Barnsley East (Stephanie Peacock). Mining was a tough, hard and severe job, and people have had severe personal problems and consequences as result. The Government imposed wholesale vindictive industrial austerity on the mining communities. I give a big thank you to the NUM and the advice centres up and down the country for the fantastic work they continue to do. We have to look at the miners’ pneumoconiosis scheme, which is awful. It is so difficult for members to attract compensation, even though it is one of the most dreadful diseases that we can ever imagine. Can we not get the Department for Work and Pensions, the Department for Energy Security and Net Zero, the coal industry liabilities team, Nabarro and the Industrial Injuries Advisory Council together in a room to see how we can get these payments made? People are now suffering greatly as a result of working underground, and we must make sure that they can gain compensation without the default position being to deny any claims. We have issues with CISWO, levelling up, the destruction of the mining community and much more.
Full debate: Miners and Mining Communities
This country is in crisis. Our public services are collapsing, a climate change crisis is upon us, and working-class people are suffering a horrendous cost of living crisis that is draining them of the resources that they and their families need just to lead basic, decent lives. In my constituency of Wansbeck, ordinary families are bearing the brunt of this Government’s utter failure. Child poverty is surging, mutual aid groups and food banks are stretched to the limit, and businesses are suffering because of the lack of available finances. A Government with even an iota of human decency would have presented to the House a legislative plan for the next year that could address those grave crises, but instead they have delivered an agenda that will do absolutely nothing to alleviate the strain that these problems are causing our people. In fact, they are happy to draft statutes to make the crises even worse.
Full debate: Building an NHS Fit for the Future
I will not get into the football analogies that have been drawn on today. I am pleased that my hon. Friend has visited my constituency and seen for himself the potential that Energy Central has in Northumberland. Whether it is the two interconnectors or the Catapult facility in Blyth for renewable energy, we have a lot going on in the Blyth estuary region and, of course, in Wansbeck.
Full debate: Automotive Industry
My hon. Friend is being very generous with his time. Does he agree that despite the clear failure of the Government’s UK industrial strategy, they should continue to try to attract investors to support a battery gigafactory in his constituency by establishing a localised supply chain across the north-east? That would in turn support automotive giants, such as Nissan, which he mentioned, that are already investing in electric vehicles. We know that that is vital for EU trade and the drive toward zero-emissions vehicles by 2030.
I do not want to interrupt my hon. Friend’s flow too much, as he is making some excellent points. On the number of gigafactories we need, he mentioned plans for three. I hope the one in his constituency will be saved, but it looks as though we may lose it. We actually need eight gigafactories if we are to meet the 2030 target for zero-emission vehicles. The last thing in the world we should be doing is not saving the plant in his constituency. The Minister shakes her head, but I do not know how we will ever reach that target if we do not save such plants.
On the issue of competitive energy sources, the UK’s industrial energy pricing is far from competitive and drives investment away, while our green energy infrastructure is nowhere near able to guarantee a supply of energy via the national grid. In December 2022, the UK cost per megawatt-hour was £580, while in Germany it was £225, in Italy £259, in France £238, and in Sweden £206. If we are ever going to reach our targets and support the automotive industry, that disparity must be addressed without any further delay.
Full debate: Britishvolt
On climate change, the costs are being passed on to working families, while those who continue to pollute are getting away scot free. As I say, I could go on and on. The phrase “levelling up” is not going away, but it means little in the mouths of Conservatives more interested in pointing at shiny infrastructure projects than in the prosperous futures of people in communities that have, for so long, been held back. The funding being considered is simply not enough; it is a sticking plaster over a severed limb. By almost all measures, those areas of our country that have been held back by the Government trail those from more prosperous parts of the country. This has been further exacerbated by the coronavirus crisis and its dismal handling by the Tory Government. We simply cannot afford for levelling up to be abused in the same manner, with cosy contracts for infrastructure investment handed to the same people while at the same time poverty, education, health outcomes and opportunities continue to suffer.
Full debate: Levelling-up Agenda in the North
Despite that, the exciting proposal of a new state-of-the-art electric battery manufacturing gigafactory in Cambois in my constituency presents an opportunity that our communities can be rebuilt around—a new industrial power in the north that centres on green energy, upon which we must and will become increasingly reliant. This will only be possible with the firm support of this Government, and the question from my constituents to the Government is simple: “Will you support us this time round or cast us aside once again? Will you deliver, or will you boot us into touch once again?”
Climate change is a real and dangerous threat, yet there was little mention of it in the Budget last week. But, believe me, there is no get-out-of-jail card with climate change; there is no vaccine for climate change. It is crucial that the Government do what they can to support the development of this gigafactory in my region. It is an opportunity for the people to get just employment—to get fair wages, and terms and conditions.
Full debate: Budget Resolutions and Economic Situation
If the Government are serious about meeting the targets on emission levels, instead of yesterday announcing the closure of the coal-fired power stations, would it not have been eminently sensible to come forward with a serious attempt at carbon capture and storage, which would enable us to burn the fossil fuels, coal and shale gas with near-zero emissions, providing secure, affordable energy for generations to come?
Full debate: Oral Answers to Questions
Will the Chief Secretary confirm that the Treasury has had discussions with the Department for Business, Innovation and Skills and the Department of Energy and Climate Change with regard to UK Coal’s application for state aid for the British coal industry? What stage are the discussions actually at?
Full debate: Oral Answers to Questions
I am from the ultra-modern school of the National Union of Mineworkers. I was a coal miner. I worked on the coal face and I really enjoyed that occupation—that is why I sit on the Energy and Climate Change Committee. I am not a scientist, but I am guided by scientists. That is probably the right way to be. When I was in my heyday cutting coal under the North sea, I was under the impression—it is what people had told me—that coal was the fuel of the future. I believed that then and I still do now—coal is extremely important. I was not bothered then about whether coal was burned with carbon capture and storage, or whether it was burned cleanly. It was my livelihood, and the livelihood of people in my community and in communities up and down the country.
My hon. Friend the Member for Southampton, Test (Dr Whitehead) has given me a cartoon showing a scientist behind a rostrum in 1990—I think it has “IPCC” written on the rostrum—saying, “So, this climate change thing could be a problem.” The cartoon then shows the same fellow in 1995, five years later, with the same specs and same beard, saying, “Climate change: definitely a problem.” It then shows the same fellow six years later saying, “Yep, we should really be getting on with sorting this out pretty soon.” It then shows him in 2007 saying, “Look, sorry to sound like a broken record here.” It shows him in 2013 saying, “We really have checked and we’re not making this up.” Then it show the same bloke a lot older than he was at the beginning; he was tapping the microphone and saying, “Is this thing on?” I thought that was very amusing. It highlights the fact that we have not taken carbon capture and storage seriously for generations. I have been involved in the matter and have been hoping and praying that it would save the industry I loved so much, was brought up with and miss so much.
It is interesting listening to scientists. The argument is, “Should we listen to scientists or should we not?” If the Environment, Food and Rural Affairs Committee is discussing mad cow disease, which affects farmers, experts in the field are listened to and I say that with good humour towards my hon. Friend the Member for Blackley and Broughton (Graham Stringer). Of course we are guided by people with knowledge in the field on which the inquiry was focused. We look at a number of things regarding carbon capture and storage, and the contribution that it can make to decarbonisation in the UK.
On the contribution it could make, the Energy and Climate Change Committee estimated that the UK’s decarbonisation power sector will require approximately 18-20 GW of CCS for coal and gas by 2030. The Government’s independent advice from the Committee provided an energy scenario to reach the UK’s 2030 energy decarbonisation target. The power sector currently accounts for around 25% of UK greenhouse gas emissions. The general mix to achieve a carbon intensity of 50-l00 grams/kWh by 2030 suggests that the energy mix that should be in place is in the region of 40% nuclear, 40% renewable, 15% CCS, and around 5% unabated gas-fired generation. With power generation capacity of about 125 GW by 2030, that equates to 18-20 GW of CCS for coal and gas. Is that realistic? My hon. Friend the Member for Southampton, Test mentioned emission level targets: the 100 grams/kWh and the 200 grams/kWh. I think it will be extremely difficult to reach such targets. Perhaps we should look at them and concentrate on them.
The Committee on Climate Change estimated that the power sector will capture a larger amount of CO 2 per year than industry until 2040, when power and industry are projected to capture similar quantities annually. The Committee said that,
“there is a growing role for CCS in industry through the 2020s, which by 2030 reduces emissions by around”
5 million tonnes of CO 2 . So a lot of information is being pressed and put forward by the Committee on Climate Change; but I do not agree with all of it, and neither does the Select Committee.
“If CCS opportunities develop as anticipated, benefits for UK-based firms have been estimated to be between”
The third issue is the international efforts to mitigate climate change and the role that UK CCS could play in that. CCS is acknowledged to be a crucial transitional technology for climate change mitigation. The UK has a crucial seedbed role to play. We are told that there is a clear danger that other countries will move ahead more rapidly, and that the UK could lose what might be perceived to be a technological advantage in market leadership. I think we have already lost that. We keep saying that we are leaders in this and leaders in that, but we are not particularly leaders in much in terms of energy.
The Boundary dam project has been completed; it was estimated to start some time in March this year, although I believe that it started slightly later than that. It is a 110 MW coal power plant with retrofit CCS technology, and the total cost of the project was estimated to be about $1.24 billion, with $240 million from the Federal Government. We were very pleased to see it, because the Committee discussed carbon capture and storage many times without actually seeing a plant with more than two or three bricks. We have been there and done it. We have looked and got advice, and the report, in my view, is exactly what we need.
The Chair of the Committee said that despite the claims that there are many plants globally, there are only 22 projects in the world, and that includes China. Interestingly, we were in China, which burns about 1.3 billion tonnes of coal a year, largely, if not entirely, unabated. The technologies that are being developed there are fantastic. We have seen massive progress in China on renewables and nuclear, and there is a real desire to move away from coal. I think it will be extremely difficult, in the next 50 years even, to get China to convert what they are now burning in coal to other types of alternative energies—to green energy and renewable energy. We were in Beijing, which was unbelievable. You could only see 50 yards ahead of you, Mr Walker—this was a really sunny day, or they said it was sunny; you couldn’t see the sun. Somebody said that the toxins in the air should be measured at about 20 to 50, according to the World Health Organisation, but on the day we were there, they were 500. It was unbelievable, and it was mainly because of the energy and power being generated in the area.
We have a huge role to play, and although we keep saying we are market leaders, we need to be market leaders. It is so important that we get on with it and develop what we said we would almost 30 years ago. There are a few barriers, and a few key players have suggested that they might be interested in moving into the market, apart from the two big projects that have been set up. However, the four key issues for potential investors in CCS projects are the operating costs, the contractual terms and the involvement of contracts for difference, the storage performance risk and the CCS development timelines, which I have already mentioned.
Full debate: Carbon Capture and Storage
The hon. Gentleman is talking about looking at every possible avenue of assistance, and I am sure that he will develop that theme. Does he agree that we need to think strategically and look logistically decades ahead, because of climate change? Forty years ago, previous Governments did not anticipate the situation that we face now. We need to ensure that we do not repeat the same mistakes.
That is essential. Whether people are climate change sceptics or not, there is a general belief and understanding that we are getting more rain that we have ever had before. It is essential that we have a strategic plan not just for next year or the next five years, but for 10, 20 or 30 years into the future. We need joined-together thinking with all the services that will be required to ensure that we address the problem adequately.
Full debate: Winter Flooding (Preparation)
Let me end by saying something rather controversial. I really believe that the system is broken. If prices are being increased twice or thrice every year on a uniform basis by a cartel, and if all these people are saying that they cannot make ends meet while directors are making fortunes and shareholders billions, we need to look at that as well. Is it not time for us to break up the cartel? Is it not time for us to consider different options? Is it not time for us to do what was suggested by a member of the Energy and Climate Change Committee the other day—it was not a Labour Member—and consider adopting co-operatives such as those that operate in New York, and indeed elsewhere in America and in Canada, enabling the public to own part of the system?
Full debate: Energy Price Freeze
The problem has been described as immense, but the pooling system—an important component of insurance—will be an integral part of any agreement and, I hope, positive resolution that is reached. The pooling system has been proposed under the “Flood Re” model and the Morpeth model. That system formalises the existing cross-subsidy. It redistributes the risk to keep affordability in place for high-risk properties. It represents the only fair way forward in a changing situation where climate change is giving rise to an increasing number of extreme weather events. The ABI model, the “Flood Re” system and the Morpeth system combine availability with affordability. The “Flood Mu”, or Noah model, does not guarantee that because it does not put a cap on flood premiums.
Full debate: Flood Insurance
My hon. Friend the Member for Blyth Valley (Mr Campbell) mentioned that the area’s economy was largely built on the coal mining industry, and I agree. It has been based on coal, built on coal and has flourished on coal, shipbuilding and other heavy industries, including manufacturing and engineering. There is massive potential in the renewable energy supply chain: marine energy technologies, offshore and onshore wind, and manufacturing the bases and blades. My hon. Friend says that we are bringing in parts by the hundreds and thousands, but it is manufactured across the world, which is unacceptable. We should have inward investment; we should have Government investment, not aid, to provide employment, skills and new technologies for people in our area. I am confident that that is the way forward.
Full debate: Economy (North-East)
Let us be honest. The statement made by the Prime Minister last week at Question Time was ridiculous. It probably was not a statement, but it could be described as a reactionary outburst. I enjoyed the urgent question, which was replied to by the Minister of State, Department of Energy and Climate Change, the hon. Member for South Holland and The Deepings (Mr Hayes), a man for whom I have tremendous respect. He valiantly and gallantly supported the Prime Minister, defending the indefensible. It was something that every Member of Parliament would have been pleased to experience. That was a very difficult task.
We are determined to decarbonise our energy sector. We set target after target. We do not have a cohesive energy policy, we do not have a cohesive strategy, yet we set targets in line with commitments that we are not sure we can keep. The Department of Energy and Climate Change is at its lowest point in my time here. There is uncertainty out there among large and small businesses, leading to investment unrest. They are not sure whether the energy plans proposed by the Government will change from one day to the next. There is no evidence-based financial structure to the policies being pursued by the Government. That creates mayhem for businesses that wish to invest in all types of energy in this country, mainly renewables and nuclear. DECC is in meltdown. It has some grand ideas, but the problem is that those seem to be hugely curtailed by the Treasury.
Full debate: Energy Market Reform
The seventh special report of Session 2010-12 outlines the work of the Select Committee on Energy and Climate Change and the Government’s response. The whole issue of shale gas needs much more detail and clarification on a range of fronts: there are the cost implications; there is the impact of exploration and production on the environment, which is an essential issue; there are the advantages and disadvantages of shale gas production and exploration; there is the carbon footprint; and there are the possible hazards. Having sat in Committee while witness after witness gave very good statements, we heard wide and varied views before we took the view outlined in the report.
The Energy and Climate Change Committee report tackles all those issues, as has been outlined already this afternoon. However, the World Wide Fund for Nature has clearly stated that shale gas is a fossil fuel and that
There is also carbon capture and storage, which has been mentioned. If we are to succeed with shale gas production, because of the problems with the environment and the emission levels, CCS must be pushed forward. We have a massive problem after the cancellation of the Longannet plant just two weeks ago. It has taken about six or seven years for that project to be ready to be signed, but it was cancelled at the eleventh hour. It is important that CCS is put back on the table. We have had excellent discussions with the Minister about CCS, and those discussions are continuing. In addition, experts say that the way in which shale gas is extracted largely depends on the emission levels. We did not get into too much detail on what that actually means, but it was certainly something that the experts said to the Committee.
Full debate: Shale Gas
I want to focus on two issues. The first is the Chancellor’s announcement last week about the carbon tax—or the carbon floor price. It could have a devastating impact on Rio Tinto Alcan, which is the biggest private sector employer in my constituency; in fact, it is the largest in Northumberland, employing 600 people and probably serving more than 1,000 people indirectly in the community. Alcan has put £100 million into the local economy, which is something that we greatly need. However, last week’s introduction of the carbon floor price, in addition to the EU’s emissions trading scheme, means that nearly a third of Alcan’s running costs are due to legislation. It simply cannot sustain that. I am concerned that if we do not look at that, Alcan—a huge employer—might consider closing the plant. The Budget announcement certainly threatens the progress of what has been a tremendous employer. I would ask the Government to rethink their policy on the carbon floor price; and if possible, I would like to discuss that with the Ministers concerned.
Full debate: Amendment of the Law
The Committee on Climate Change has recommended that the carbon intensity of electricity should be reduced from today’s 500 grams of CO 2 per kWh to the highly challenging figure of 50 grams of CO 2 per kWh by 2030. The Energy and Climate Change Committee suggests that the target should be about 100 grams of CO 2 per kWh. Will the Minister or the Secretary of State explain how difficult it would be to achieve the recommendation of the Committee on Climate Change?
Full debate: Oral Answers to Questions
The attack on public services in my constituency will be unbelievably harsh. The creation of 200,000 jobs through the future jobs fund would have been immensely valuable. Moreover, 10,000 jobs would have been created in the north-east in the renewable energy, environmental and emerging low-carbon technology sectors, and 15,000 would have been created in social enterprises. That is much-needed employment. The Government’s action in abolishing the future jobs fund is an absolute disgrace: it was politically motivated and ideologically driven.
Full debate: Youth Unemployment
The Secretary of State for Energy and Climate Change (Chris Huhne): The Government are committed to removing any unnecessary obstacles and allowing the construction of new nuclear power stations to contribute to our energy security and climate change goals, provided that they receive no public subsidy. The Government will complete the drafting of the nuclear national policy statement, which will be put before Parliament for ratification as soon as possible. The Office for Nuclear Development continues. The Minister of State, Department for Communities and Local Government, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), has announced a new streamlined system to replace the Infrastructure Planning Commission. We will publish an updated timetable for the production of all national policy statements, including the energy national policy statements, later in the summer. On new public subsidies, the former and new Chief Secretaries to the Treasury have pointed out that there is no money left. ( 4934 )
Full debate: Oral Answers to Questions