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911 National Policy Statements 1 DECEMBER 2010 National Policy Statements 912 [Huw Irranca-Davies] The Minister’s officials would certainly become involved, and relevant stakeholders would need to be consulted. There would be a minimum of 13 weeks’ consultation, as recommended by civil service guidelines, but possibly a heck of a lot more. It would be helpful to get some clarity on those issues before we debate NPSs. Charlie Elphicke: Speaking of clarity, can the shadow Minister explain why we are threatened with the lights going out in 2015? Should he and his party not apologise for that shocking situation? Huw Irranca-Davies: If the hon. Gentleman is seeking apologies, may I suggest that he starts by knocking on the door of No. 10? He should ask the Prime Minister why it took so long for him to move from a position of equivocation on nuclear new build to a position of indifference. Following Labour’s leadership, the Prime Minister finally rowed in behind on the need for nuclear new build. The five-year hiatus to which the Minister referred happened, as someone remarked earlier, because there was no appetite in the country or among the body politic to move forward on new nuclear. We showed leadership; certain individuals rowed in behind, but it took them a long time to do so. For the sake of taxpayers, who are always in the mind of the coalition Government, will the Minister tell us what he knows about the cost of abolishing the IPC? What are the costs of the transition to the new major infrastructure unit within the planning inspectorate? Will there be savings for the taxpayer, and if so, will he or the Government publish those figures after the debate? In the absence of the much anticipated localism Bill, where in the reformed process does localism rear its lovely head? Will the Minister explain how parliamentary scrutiny of NPSs, which represent the Minister’s opinion on the strategic needs of the UK, allows for localism? If the answer to that question is not in the Government’s response and if we will not be told in January, where is it? What is the expected lifespan of NPSs? I ask that for a very good reason. The Minister recently spoke with clarity and purpose at a meeting of the World Coal Association, which I was pleased to attend, and made a bold prediction. He said with certainty that next spring, he would draw a line in the sand on his forthcoming decisions on a range of market mechanisms and incentives, including electricity market reforms, carbon floor-pricing, emissions performance standards, capacity payments and so on. The NPSs are part of that line in the sand, giving investors certainty for years ahead, yet they do not stand alone. There are so many “What ifs?”, and the Minister has to take these into account—it is like multidimensional chess. I know that the Government do not particularly like the idea of school sport, as we discovered yesterday, but the Minister has been indulging in his favourite sport with his ministerial colleagues—an extreme sport known as Treasury-wrangling. After some delay, he came out with a partial win, announcing the first stage of commercial CCS—carbon capture and storage—which has delivered, after a slight delay of six months, the first part of Labour’s commitment to CCS. We look forward to him rapidly bringing forward not only that pilot, but the three others, including a pilot on gas CCS. However, may I urge—or should it be “nudge”, in the Government’s new lexicon?—the Minister to get on with that pronto? He has honestly and publicly acknowledged that there is no future for coal in the UK unless that technology is made to work. However, there is also a global imperative, as developing nations rush towards their own coal-powered futures. As such, this Government must avoid any further delay on the complete CCS programme of work. However, what if CCS on a commercial scale does not work? What if there are delays because of cost, lack of funds or complexity, or because the technology to bring it forward is not available on time, or even not at all? We all want CCS to succeed—we all say that it has to succeed—and we are full of hope that it will, both for UK energy security and abating the global exploitation of fossil fuels. However, a reasonable man—and a reasonable Minister—cannot just assume that that will happen, and must therefore make contingency plans. Martin Horwood: Given that carbon capture and storage technology has been in use on a commercial scale in the United States for some 40 years—albeit not on the same scale as that envisaged for the power stations in question—what does the hon. Gentleman imagine the technical barriers will be? Huw Irranca-Davies: I am glad to say that I am not an engineer, but that is exactly the point behind the large-scale commercial CCS pilots. That is exactly why we are running them, and we all hope that CCS will work. Indeed, I recognise the hon. Gentleman’s confidence that it definitely will work. However, there are some nagging “What ifs?”. What if CCS is not delivered on time, or cannot happen because of the technology, the scale or the investment? In my short time in this post, I have come to realise that the Minister’s Front-Bench colleague, the hon. Member for Bexhill and Battle (Gregory Barker), positively exudes enthusiasm. Indeed, he leaves a trail of enthusiasm wherever he goes, and for every conceivable energy source. His enthusiasm is demonstrated in photo-ops around the country and around the world, but what if the latest enthusiasm for decentralised energy, which the Minister mentioned, and combined heat and power is not realised, because the electricity grid is not smart enough to make it work locally or because the right incentives are not in place, or for other reasons? I have a final “What if?” for the Minister: the nuclear “What if?”. He has been categorical in recent days— heroically categorical—that new build nuclear is on schedule for 2017-18. Yet he knows that the Health and Safety Executive will not be issuing final certificates next year on the two designs that this House has taken through in the past few days through justification orders, but will instead issue interim certificates. There is more work to be done on the designs and, equally importantly, the build speed of new nuclear, as evidenced by delays internationally, in Europe, the US and Asia. The coalition Government have struggled to come to terms with their identity crisis on nuclear—do they love it or hate it, and will they unequivocally support it or sit on the fence—but the Minister deserves some credit for helping his Lib Dem comrades down off the fence. However, the industry still waits for the long-term certainty of market signals that will bring forward the investment at all, let alone on time. So, there are “What ifs?” on

913 National Policy Statements 1 DECEMBER 2010 National Policy Statements 914 nuclear, decentralised energy and CCS, as well as on other things, if only we had the time to discuss them in this short debate. Martin Horwood rose— Huw Irranca-Davies: I will not take another intervention because there are other people waiting to speak. Meanwhile, part 3 of the overarching energy policy statement details new electricity projections. It outlines the need for 59 GW of new capacity by 2025, of which as much as 33 GW will be from renewables, thus leaving a significant potential gap, on top of the energy gap that we already acknowledge, if the Minister’s best laid plans do not come to fruition. This raises the question of how the Minister can avoid re-carbonising instead of de-carbonising the energy sector if an unabated dash for expensive imported gas rushes in to fill the looming energy gap. The dash for gas and the energy gap could be made far worse if any of the “what ifs” were to happen. The Minister has honestly and openly accepted that gas will form part of our journey to a de-carbonised future, but how will he ensure that we do not stumble into a new generation of unabated gas use by default? As a former Minister, I recognise the problem of dealing with highly complex issues and scenario planning. I therefore ask the Minister to share with the House his scenario planning and risk analysis for the energy market, before we come to debate the national policy statements in detail on the Floor of the House in January. If there is to be real democratic accountability, the House needs to see the complete assumptions on which the Minister is making his case for the NPSs and for the energy market underpinning them. We assume that these have been done. If nuclear, CCS, decentralised energy or a whole host of other variables were delayed or undeliverable, what is plan B, plan C or plan D, and would any of them allow us still to reach our aims on energy security and low carbon energy? In that regard, what is the Minister’s response to the recommendation of the Committee on Climate Change, in response to the proposals for national policy statements on energy, that the Government act on the Committee’s proposal that the widely accepted concept of fully de-carbonising the electricity sector by 2030 should be made explicit in Government policy and NPSs? It has been widely accepted anyway, and it would drive the achievement of the 2050 targets on greenhouse gases. The Committee asserts that making explicit that commitment would drive forward decision making on new generating capacity and give certainty to investors regarding the Government’s overarching energy policy. Dan Byles: The shadow Minister has highlighted the concern that many of the Government’s plans are predicated on CCS working and on investment in nuclear coming through, and he has asked what plan B is. Can we look forward to hearing from those on his own Front Bench what their plan B would be if they were in government? Huw Irranca-Davies: I can give the hon. Gentleman a guarantee that we are committed to assisting the Government to deliver this, but to ignore the potential scenarios of not making good in any one of these areas would be to bury our head in the sand. There are real concerns that there could be delays in one of these areas, and if that were to happen, we, as a constructive Opposition would have to work jointly with the Government to fathom a way in which we could still deliver de-carbonised energy, hit our carbon reduction targets and deliver energy security and affordable energy. I have not even touched on the issues of the green deal and the green investment bank that were raised by other Members earlier. That is why we need to see the Government’s working assumptions, the detail behind the Minister’s development of these NPSs and, as soon as possible, the proposals for electricity market reform. I am pleased that the Minister is talking a lot about the intentions behind the NPSs, but we are really up against time. I know that he will once again stand up and say that that is all the fault of the previous Administration, but actually it was the previous Administration who put in the foundations for what the coalition Government are now rightly taking forward. We will look to the Government to make good, and we will be constructive in helping them, but the House and the Energy and Climate Change Committee need to be able to wrestle with the facts as well as with the broad thrust of the statements. I have spoken longer than I intended to, and I look forward to hearing the comments of other Members. 6.3 pm Damian Collins (Folkestone and Hythe) (Con): We have had a tour de force from the Minister and the shadow Minister on many of the issues in the national policy statements for energy. I shall restrict my comments to an issue that affects my constituency, which is the list of suggested nuclear new build sites and, in particular, the Dungeness site. At present, there is an A station and a B station at Dungeness, and the site was included on the previous Government’s original list of 11 sites to be consulted on. Before the general election, it was removed from the list after the initial stage of the consultation, and it has remained off the list of potential sites to be taken forward within the national policy statement in the draft consultation that has been presented to Parliament. I have already discussed the issue in debates in the House and in Westminster Hall and I do not want to go over all the ground again, but I do want to deal with some specific points raised by the draft national policy statement which may be of interest to other Members. Let me say first that I am grateful to the Minister for the interest that he has taken in the subject, for his time, and for agreeing to meet me later in the month, along with representatives of Shepway district council and Kent county council, to establish whether any progress can be made. I note from the draft statement that the Government consider the site of Dungeness nuclear power station to be a credible site for a new power station should the principal concerns about it be addressed during the rest of the consultation period. Those concerns lie chiefly with Natural England’s objection to the development in a special protected area, a Natura 2000 reserve with a European designation. Dungeness is the only site under consideration in the initial consultation in which development would take place within a protected area. There are problems with the other sites that the Government believe can be solved, but the problems affecting Dungeness remain.

911 National Policy Statements 1 DECEMBER 2010 National Policy Statements 912<br />

[Huw Irranca-Davies]<br />

The Minister’s officials would certainly become involved,<br />

and relevant stakeholders would need to be consulted.<br />

T<strong>here</strong> would be a minimum of 13 weeks’ consultation,<br />

as recommended by civil service guidelines, but possibly<br />

a heck of a lot more. It would be helpful to get some<br />

clarity on those issues before we debate NPSs.<br />

Charlie Elphicke: Speaking of clarity, can the shadow<br />

Minister explain why we are threatened with the lights<br />

going out in 2015? Should he and his party not apologise<br />

for that shocking situation?<br />

Huw Irranca-Davies: If the hon. Gentleman is seeking<br />

apologies, may I suggest that he starts by knocking on<br />

the door of No. 10? He should ask the Prime Minister<br />

why it took so long for him to move from a position of<br />

equivocation on nuclear new build to a position of<br />

indifference. Following Labour’s leadership, the Prime<br />

Minister finally rowed in behind on the need for nuclear<br />

new build. The five-year hiatus to which the Minister<br />

referred happened, as someone remarked earlier,<br />

because t<strong>here</strong> was no appetite in the country or among<br />

the body politic to move forward on new nuclear. We<br />

showed leadership; certain individuals rowed in behind,<br />

but it took them a long time to do so.<br />

For the sake of taxpayers, who are always in the mind<br />

of the coalition Government, will the Minister tell us<br />

what he knows about the cost of abolishing the IPC?<br />

What are the costs of the transition to the new major<br />

infrastructure unit within the planning inspectorate?<br />

Will t<strong>here</strong> be savings for the taxpayer, and if so, will he<br />

or the Government publish those figures after the debate?<br />

In the absence of the much anticipated localism Bill,<br />

w<strong>here</strong> in the reformed process does localism rear its<br />

lovely head? Will the Minister explain how parliamentary<br />

scrutiny of NPSs, which represent the Minister’s<br />

opinion on the strategic needs of the UK, allows for<br />

localism? If the answer to that question is not in the<br />

Government’s response and if we will not be told in<br />

January, w<strong>here</strong> is it?<br />

What is the expected lifespan of NPSs? I ask that for<br />

a very good reason. The Minister recently spoke with<br />

clarity and purpose at a meeting of the World Coal<br />

Association, which I was pleased to attend, and made a<br />

bold prediction. He said with certainty that next spring,<br />

he would draw a line in the sand on his forthcoming<br />

decisions on a range of market mechanisms and incentives,<br />

including electricity market reforms, carbon floor-pricing,<br />

emissions performance standards, capacity payments<br />

and so on. The NPSs are part of that line in the sand,<br />

giving investors certainty for years ahead, yet they do<br />

not stand alone. T<strong>here</strong> are so many “What ifs?”, and the<br />

Minister has to take these into account—it is like multidimensional<br />

chess.<br />

I know that the Government do not particularly like<br />

the idea of school sport, as we discovered yesterday, but<br />

the Minister has been indulging in his favourite sport<br />

with his ministerial colleagues—an extreme sport known<br />

as Treasury-wrangling. After some delay, he came out<br />

with a partial win, announcing the first stage of commercial<br />

CCS—carbon capture and storage—which has delivered,<br />

after a slight delay of six months, the first part of<br />

Labour’s commitment to CCS. We look forward to him<br />

rapidly bringing forward not only that pilot, but the<br />

three others, including a pilot on gas CCS. However,<br />

may I urge—or should it be “nudge”, in the Government’s<br />

new lexicon?—the Minister to get on with that pronto?<br />

He has honestly and publicly acknowledged that t<strong>here</strong><br />

is no future for coal in the UK unless that technology is<br />

made to work. However, t<strong>here</strong> is also a global imperative,<br />

as developing nations rush towards their own coal-powered<br />

futures. As such, this Government must avoid any further<br />

delay on the complete CCS programme of work.<br />

However, what if CCS on a commercial scale does<br />

not work? What if t<strong>here</strong> are delays because of cost, lack<br />

of funds or complexity, or because the technology to<br />

bring it forward is not available on time, or even not at<br />

all? We all want CCS to succeed—we all say that it has<br />

to succeed—and we are full of hope that it will, both for<br />

UK energy security and abating the global exploitation<br />

of fossil fuels. However, a reasonable man—and a<br />

reasonable Minister—cannot just assume that that will<br />

happen, and must t<strong>here</strong>fore make contingency plans.<br />

Martin Horwood: Given that carbon capture and<br />

storage technology has been in use on a commercial<br />

scale in the <strong>United</strong> States for some 40 years—albeit not<br />

on the same scale as that envisaged for the power<br />

stations in question—what does the hon. Gentleman<br />

imagine the technical barriers will be?<br />

Huw Irranca-Davies: I am glad to say that I am not<br />

an engineer, but that is exactly the point behind the<br />

large-scale commercial CCS pilots. That is exactly why<br />

we are running them, and we all hope that CCS will<br />

work. Indeed, I recognise the hon. Gentleman’s confidence<br />

that it definitely will work. However, t<strong>here</strong> are some<br />

nagging “What ifs?”. What if CCS is not delivered on<br />

time, or cannot happen because of the technology, the<br />

scale or the investment?<br />

In my short time in this post, I have come to realise<br />

that the Minister’s Front-Bench colleague, the hon.<br />

Member for Bexhill and Battle (Gregory Barker), positively<br />

exudes enthusiasm. Indeed, he leaves a trail of enthusiasm<br />

w<strong>here</strong>ver he goes, and for every conceivable energy<br />

source. His enthusiasm is demonstrated in photo-ops<br />

around the country and around the world, but what if<br />

the latest enthusiasm for decentralised energy, which<br />

the Minister mentioned, and combined heat and power<br />

is not realised, because the electricity grid is not smart<br />

enough to make it work locally or because the right<br />

incentives are not in place, or for other reasons?<br />

I have a final “What if?” for the Minister: the nuclear<br />

“What if?”. He has been categorical in recent days—<br />

heroically categorical—that new build nuclear is on<br />

schedule for 2017-18. Yet he knows that the Health and<br />

Safety Executive will not be issuing final certificates<br />

next year on the two designs that this House has taken<br />

through in the past few days through justification orders,<br />

but will instead issue interim certificates. T<strong>here</strong> is more<br />

work to be done on the designs and, equally importantly,<br />

the build speed of new nuclear, as evidenced by delays<br />

internationally, in Europe, the US and Asia.<br />

The coalition Government have struggled to come to<br />

terms with their identity crisis on nuclear—do they love<br />

it or hate it, and will they unequivocally support it or sit<br />

on the fence—but the Minister deserves some credit for<br />

helping his Lib Dem comrades down off the fence.<br />

However, the industry still waits for the long-term certainty<br />

of market signals that will bring forward the investment<br />

at all, let alone on time. So, t<strong>here</strong> are “What ifs?” on

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