15:40 Seema Malhotra (Labour)

First, there are huge gaps in the Bill and crucial aspects are yet to be defined. The Bill may establish a regulatory framework of subsidy control, but it fails to provide any clear indication as to how and where the Government plan to see those subsidies being spent and at what scale. Labour is in favour of a subsidy system that backs British businesses and our economy, but it must operate in the context of a strong UK-wide industrial strategy, which for all intents and purposes is not nearly where it needs to be. Furthermore, there is no clear plan for how the new subsidy control regime will be used to support national priorities such as net zero. Much more needs to be joined up and coherent in the new regime.

We want to see well-designed, proportionate subsidies as part of the wider industrial strategy that we need to grow the businesses and industries of the future and to invest in our transition to net zero. Labour has also said that we must buy, make and sell more in Britain, as called for by our shadow Chancellor, my hon. Friend the Member for Leeds West (Rachel Reeves). That is part of how we can ensure resilience in our economy—the need for which has been highlighted only too starkly by the gas-price challenge and the CO 2 challenge of the past week.

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16:20 Stephen Flynn (SNP)

That brings us to the next stage, as represented by this Bill. As I see it, the Bill’s objectives are to enable strategic interventions to support economic recovery, levelling up and net zero. That is not wholly different from the EU state aid rules, which were, of course, to support the environment and innovation. The one slight difference, however, is that the EU state aid rules had a specific remit for the EU regional aid system, whereby people advocated money to be directed to less developed regions.

The Bill’s key objectives also include net zero. Again, there is no detail on net zero or how the Government intend to subsidise its delivery. We are being told to just believe—to hope on a whim and a prayer—that the Government will do this, that they will deliver. Let us look at that from a Scottish perspective. Let us look at the Government’s record. As the Minister and, indeed, others in this Chamber know only too well, Scottish renewables projects, which are key and fundamental to reaching net zero, pay the highest grid charges in the entirety of Europe. In the UK—on these islands—renewables projects in the south-east of England get paid to access the national grid, whereas renewables projects in Scotland have to pay to do so.

That is a vital point that will come forward in the next couple of months, when the Scottish islands could be providing as much as is coming across from some of the European interconnectors at present. On subsidies, the right hon. Member for East Antrim (Sammy Wilson) made a good point on enforcement. In part 5, an “interested party” is defined in clause 70(7) as “the Secretary of State” while others are just people who “may be affected”. Should not Scottish Ministers, Welsh Ministers and Northern Ireland Ministers be specifically outlined? Or is this something seen as being granted by London and London only, leaving London to make arbitrary decisions on subsidies? My hon. Friend makes the point very powerfully that producing renewable energy in certain parts elicits a subsidy, while in other parts it is penalised.

To finalise the point in relation to net zero, the UK Government are telling us that we should trust them. Well, we don’t and we won’t.

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16:45 Kirsty Blackman (SNP)

We hope to have green ports in Scotland, and the failure of the UK Government to agree that we can pay the real living wage and focus on net zero within those green ports means that the freeport system, as it stands, is not nearly as advantageous as it could or should be. Even though the freeport system is set up to encourage such things, I have not seen evidence that it will actually do so, particularly given the rejection of the key principles we want to put in place.

(a) delivering a secure, affordable and sustainable energy system and a well-functioning and competitive energy market, or

“a secure, affordable and sustainable energy system and a well-functioning and competitive energy market”.

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17:36 Robin Millar (Aberconwy) (Con)

Finally, I support the Government’s hopes for the Bill that it will enable a thriving competitive economy and, in north Wales, lead to the kind of investment that we want to see in renewable energy, road, rail and broadband connectivity, and, I hope, even a freeport. It is because I believe the Bill delivers on the principles of devolution and makes possible a prosperous future in Aberconwy that I will be voting in support of its Second Reading.

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