14:30 Mark Menzies (Fylde) (Con)

It is important for Parliament to hold regular debates on shale gas, because there is considerable potential for it to impact on the constituencies of many right hon. and hon. Members. The title of my debate in the Order Paper suggests that I would like to focus exclusively on the financial benefits that shale gas could bring to communities in Lancashire following the recent announcement of a community benefits package by the Treasury and the Department of Energy and Climate Change. As we are still in the early stages of shale gas development, however, I firmly believe that further work is still to be done on a range of other related issues, most notably on regulation, community engagement, the development of a UK supply chain and the suitability of potential sites.

It is inconceivable that the Office of Unconventional Gas and Oil has a single page on the Government energy and climate change website. I might be wrong, and I stand to be corrected, but this is an opportunity for the Minister and the Department to create an interactive online portal where my constituents and my hon. Friend’s constituents can go to seek information, a myth buster that is scientific, evidence-based and impartial.

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15:02 Dan Byles (North Warwickshire) (Con)

I congratulate my hon. Friend the Member for Fylde (Mark Menzies) on securing this debate on this important topic. I am not a Lancashire MP, but I stand here as a member of the Select Committee on Energy and Climate Change, which has looked at the issue in some detail, and as chair of the all-party group on unconventional oil and gas.

When the Energy and Climate Change Committee visited Hinkley to discuss the Hinkley Point C power station, we had a long discussion with local parish councils about their concerns. I was struck by the fact that not one mentioned the fact that a nuclear reactor was going to be parked at the side of their town as a concern. They were concerned about truck movements, dust, noise, vibration and, interestingly, which pubs the itinerant work force were most likely to drink in.

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15:11 John Pugh (Southport) (LD)

There are many views of fracking. Some, I do not agree with, although I respect them. The Tyndall view of fracking and shale gas is simply that getting them out will add to the greenhouse gases circulating around the globe, so they should be left where they are. I do not agree, for reasons that may or may not be correct, although I believe them. Principally, I do not think that our energy consumption will fall much over the next 20 years or that renewables will be sufficiently developed by that stage to plug the gap. Other alternatives also seem pretty unattractive. One is the extensive building of nuclear power stations. Buying ever cheaper coal—coal is becoming cheaper—is another. Importing gas is probably the favoured alternative, and we will probably face a choice between using Russian, Kazakhstani or Qatari gas or shale gas, which we have in appreciable abundance in Lancashire—the shale there is much deeper than in many parts of the United States, where shale gas is being exploited to some effect.

Clearly, good regulation is crucial to the successful development of shale gas. I say that because I have also seen some slightly alarmist anti-fracking propaganda. We have probably all had sight of “Gasland”, with the taps that catch fire and so on, and we have probably all heard the exaggerations about the chances of pipes fracturing, threats to the water supply and subsidence. People have also exaggerated the number of wellheads we need, and they have talked about traffic densities and movements that are unlikely to materialise—producers are unlikely to want to move gas around by lorry if they can find a better way to move it. To be fair, a lot of the people who object would object if all those concerns were set aside; in other words, they have the same fundamental objection as the Tyndall climate change group—they think shale gas is not something we should dally with and is not something for the future.

Through the Treasury, the Government are concentrating principally on incentivising shale gas development. I am in favour of that, and we certainly need to explore it, because this business could be hugely profitable. The issue then is, what will happen to all the profits? Will they simply leach out to the south-east or wherever the company headquarters are, or will we feel the benefit locally? If I can throw my two pennies-worth on the table, I would like to see a levy that is channelled towards investing in permanent renewable energy in the area. At some point, the shale gas, like all other such energy sources, will run out. Other Members have other attitudes and other proposals. The hon. Member for Fylde talked about the supply chain, and I agree with what he said about that. He also talked about energy rebates, and none of my constituents would be unhappy to receive them.

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15:18 Eric Ollerenshaw (Lancaster and Fleetwood) (Con)

We are all struggling to find the right vehicle and I am sorry that none of us has the perfect answer—the hon. Member for Southport and others hinted at one—to whether the money should go into something like a sovereign wealth fund for Lancashire, or, indeed, a trust fund. That might be managed by professionals, but open to applications from the districts, parishes and counties for funds—and major, structural funds. My other argument will be that 1% is not enough. Big profits will be made. I understand the strictures of the hon. Gentleman: we are at the beginning of an industry. However, perhaps there could be a rising scale as the profits mount up. There is a serious issue about 1%: it is not enough. If the predictions about the productive capacity of the Bowland shale are right—and it stretches across Lancashire and parts of Derbyshire, and even that other county called Yorkshire—5% would be a substantial amount of money, which would guarantee to the people of those areas that something would be left after the shale gas was gone, as it eventually will be. That something might be renewable energy; it might be all kinds of things, but that is the kind of vehicle that I suggest.

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15:26 Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)

We had a debate in Westminster Hall on the Energy and Climate Change Committee’s initial report into shale gas, which the hon. Member for Fylde was not able to take part in at that time, as he was a Parliamentary Private Secretary to the then energy Minister, the hon. Member for Wealden (Charles Hendry). However, I seem to recall that the hon. Member for Southport (John Pugh) and the hon. Member for Lancaster and Fleetwood (Eric Ollerenshaw), who have spoken today, were present and took part. Since then, a lot has happened and things have moved on, but in March last year, we set out a number of conditions, from the Opposition perspective, that we thought needed to be in place in relation to regulation. I am sure that we will delve into these matters much more on Thursday, but I want to highlight what we suggested those conditions should be, because they speak to the wider point about the way in which the whole issue continues to develop.

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15:40 The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)

In addition, the Department of Energy and Climate Change will check that the HSE and the Environment Agency, or its Scottish equivalent the Scottish Environment Protection Agency, have no objections before it consents to drilling operations. Furthermore, if hydraulic fracturing for shale gas is intended, we will require measures to address the risk of induced seismicity, namely prior analysis of geological risks and the submission of a detailed fracturing plan, including a traffic light control protocol.

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