Finally, amendment 47 reminds us of the first part of the Bill and the wide consensus for change regarding North sea oil. It seeks to give the Oil and Gas Authority new powers and oversight to ensure that decommissioning is used to best advantage in the North sea. Decommissioning should not operate in the short-term interests of those involved in it but in the longer-term interests of the co-operative use of infrastructure, which hon. Members have touched on, and for the benefit of not only the production of future, more marginal fields over the next period, but the future possible use of the North sea as one of the world’s finest repositories when

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carbon capture and storage gets under way. The amendment would add an important tool to the Oil and Gas Authority’s arsenal and I hope that the Minister will accept it.

Edward Miliband (Doncaster North) (Lab): I rise to speak to new clause 11, which was tabled in my name, that of my hon. Friend the Member for Sheffield Central (Paul Blomfield) and those of Members from five other parties across the House. I thank the hon. Members for Westmorland and Lonsdale (Tim Farron), for Brighton, Pavilion (Caroline Lucas), for Beverley and Holderness (Graham Stuart), for Central Suffolk and North Ipswich (Dr Poulter), for Belfast South (Dr McDonnell) and for Arfon (Hywel Williams) for their support. I also thank my Front Bench team and Baroness Worthington in the other place for her support and advice.

The new clause would insert the commitment to zero emissions in the Paris climate change agreement into our domestic law, with the Committee on Climate Change advising on when it should be achieved. It is the right thing to do and the science is clear: the world needs to get to zero emissions early in the second half of this century, and it is worth reminding the House of the debate’s context.

We know from recent scientific analysis that 2015 was the hottest year on record. The record for global temperatures has been broken in each of the past five months, with February’s record broken in shocking fashion. Atmospheric concentrations of CO2 are now higher—this is hard to get your head around—than they have been for at least a million years. That is what the scientists tell us and it highlights the necessary urgency, which is shared by Members on both sides of the House.

My proposal makes economic, moral and political sense. It makes economic sense because we have to get to zero emissions eventually. It will be tough, so we need to start planning now. We are already aware of some of the tools we will need, but not all of them. We need clean energy supplies, a revolution in the household sector and reforestation. As the hon. Member for Aberdeen South (Callum McCaig), who speaks for the SNP, said, we need carbon capture and storage to trap emissions. We will also need other technologies that are in the early stages of development. Crucially, we need to start the work now so that we can get to zero emissions at least cost. The economic case is proven by the support from the business community, and I thank Aviva, GSK, Unilever, Kingspan, Kingfisher and the broader “We Mean Business” coalition for their backing. The proposal also makes moral sense. Achieving zero emissions is necessary, so it would be irresponsible to pretend otherwise. Future generations will look badly on a generation that stuck its head in the sand and refused to plan ahead.

6.45 pm

My proposal makes political sense. Those of us across the House who care about such issues were pleased with the Paris agreement, but the danger is that we could lose momentum or go backwards, and there are some early straws in the wind suggesting that might happen. We need to build on the momentum, not squander it. The hon. Member for Warrington South (David Mowat) is right that we need to close the gap between the Paris ambition to keep global warming to no more than 1.5° C and the reality of the current pledges, which are

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off track. We can make a difference. We may contribute only 1.5% of global emissions, but look at the experience of the Climate Change Act 2008—the hon. Gentleman and I have discussed this matter outside the House—which was passed with the support of all parties. It pushed others to follow us—perhaps not as much as we would have wanted, but others did follow.

The hon. Member for Aberdeen South is right about getting things right in the short term, but the long term affects the short term. The 80% target that we put into law in 2008 shapes the current discussions and holds Governments of all parties to account and the same would be true if we put zero emissions into law. Since we know that that will have to be the backstop, we might as well get on with it.

Rebecca Pow (Taunton Deane) (Con): I have enormous respect for the right hon. Gentleman. I applaud his positive steps and everything that happened in the 2008 Act, but we must be economically realistic. I wonder whether this is the right time and whether it might be better to ask the Committee on Climate Change to have a closer look at the proposal. After all, we are in the process of agreeing the first carbon budget, so perhaps all the energy should be put into that.

Edward Miliband: I agree with the end of the hon. Lady’s point. My proposal is deliberately pragmatic. It would put zero emissions into law, but the date would be decided by Government on the basis of advice from the Committee on Climate Change. That is right and it would be the lowest-cost way of proceeding. We need the experts’ advice. After all, they were appointed with cross-party support.

I am delighted to say that since I made this proposal three months ago I have had constructive discussions with the Government. I will not try to predict the reaction of the Minister of State, but I want to record my thanks to her, the Secretary of State, and the Minister for the Cabinet Office for their willingness to engage. I hope that we can move the idea forward in the months ahead and demonstrate once again the cross-party commitment to tackling climate change that is shared by the vast majority of hon. Members. I look forward to the Minister’s response.

Mr Alistair Carmichael: New clauses 5 and 6 stand in my name, but they are covered by other new clauses, so I do not intend to press either of them to a vote; the other new clauses lead in broadly the same direction.

First, let me deal with carbon capture and storage. When I intervened on the hon. Member for Southampton, Test (Dr Whitehead), the term I used in relation to the Government’s decision to pull the funding from the project was “irrational”. I hope I was not unkind to the Government in saying that, but if it was not irrational it must have been ideological. In any event, it certainly did not make any sense. A competition was running and the point at which they withdrew the funding was significant. Had they allowed the competition to run a little longer, it might have reached the conclusion that there would be no more money to be spent—who knows? We will never know now. The decision was irrational, because of the impact it will have on getting our own CCS sector up and running in this country. As he said, the work on this is being done elsewhere and

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inevitably we will end up playing catch up and importing expertise that could have been generated here. Who will ever suggest that a shareholder put money into CCS in this country? This is the ultimate failure of evidence-based policy. Notwithstanding the provisions on the amendment paper tonight, I now wonder whether it is worth calling for any more rethinks, because even if we got new Government commitment, who on earth is going to believe it, given events thus far?

The hon. Friend Member for Aberdeen South (Callum McCaig) made the point that there is a synergy between CCS and the issues relating to decommissioning in the North sea. For some years, the technology used in CCS has been routinely and effectively used in the North sea in enhanced oil recovery; gas has been used to extract more oil from other parts of the existing substantial infrastructure network. It gladdens my heart that the Oil and Gas Authority goes from strength to strength, as I have followed the project closely from its inception, from the work of the Wood commission and through the creation of the shadow authority. To get the maximum benefit, it will be necessary for the OGA to get on, use the powers that we have already given it and those we give it in this Bill, and come forward with the strategy that will make these things happen.

Of course, for there to be a strategy there will first have to be survival, and the very real danger at the moment is that the age of the assets in the North sea, especially those in the north North sea, will mean that the critical mass may tip over and there is then a rush to decommissioning. Not only could any such rush be bad for the economy of the north-east of Scotland, and the Northern Isles in particular, but it would be tragic if it meant that the infrastructure was removed and the opportunities to develop CCS at some future date were therefore then lost.

Callum McCaig: I made the point about a large part of the tax liability for decommissioning falling on the Treasury. If there is the rush to decommissioning that the right hon. Gentleman describes, the Chancellor will find it more difficult to meet his fiscal target, as he will have to hand out the cash. Does the right hon. Gentleman therefore agree that there needs to be proper support from Government to delay that?

Mr Carmichael: There absolutely has to be that support. We have seen the tax intake from the North sea fall off a cliff. I cannot recall the exact figures, but I seem to recall that about £20 billion is set aside to deal with this rush to decommissioning, if it occurs. That is a future liability at the moment, but if the liability were to appear on the left of the sheet, the Treasury would be dealing with a double-whammy; it would not only be losing the income, but it would suddenly be liable for expenditure at an earlier stage. The real significant event in that regard will take place not tonight but on Wednesday, when the Chancellor comes forward with his Budget. The Minister and the Secretary of State will doubtless have heard the measured and well-thought-out requests from Oil & Gas UK, and I trust that even at this stage they will be using all their influence in government to ensure that as many of these requests as possible are delivered when the Chancellor stands up.

The right hon. Member for Doncaster North (Edward Miliband) spoke to his new clause 11, and he has been absolutely right in how he has brought it forward. It is

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measured and it future-proofs the commitments. Given the substantial commitment the Secretary of State showed in relation to the Paris negotiations, it would be a suitable way for this House to give that commitment some legislative heft.

Caroline Lucas (Brighton, Pavilion) (Green): I wish to speak mainly to new clause 12, which stands in my name and deals with the need for a strategy for a just transition from fossil fuels and towards 100% renewable energy. I also wish to highlight a few of the other proposals in this group that I support.

First, I wish to speak in favour of new clause 11, tabled by the former Secretary of State, the right hon. Member for Doncaster North (Edward Miliband), and to thank him for the constructive work he has been doing on promoting zero emissions. The new clause would put one crucial part of the Paris climate agreement into UK law. The somewhat convoluted text of that historic agreement makes it clear that globally we must reach net zero emissions in the second half of this century. Many argued that this long-term goal should have been stronger, including by making explicit reference to phasing out fossil fuels. None the less, it seems immensely reasonable for the UK Government to set a date for zero emissions, on advice from the Committee on Climate Change. It seems like a win-win, both economically and environmentally, to have that date set, so that we can have a clear direction of travel and clarity for investors. I am reassured to hear that the right hon. Gentleman has had constructive conversations with the Government and I look forward to hearing their response.

I also support new clause 10, which deals with carbon accounting and the ETS, as it would mean the UK taking responsibility for making our own carbon emission cuts and is another immensely reasonable proposal. The need for such a change is underlined by the recent incredible claims that a new dash for gas would be compatible with our climate obligations. The UK’s renewable energy potential is vast. The costs of solar and wind power are falling, and the need to leave the vast majority of fossil fuel reserves in the ground gets more mainstream by the week. There is no longer a case for using the EU ETS as an excuse for not meeting our own carbon budgets by cutting our own emissions here in the UK. The global carbon budget is rapidly shrinking and there is simply no room for free riders. The UK should be leading the race to a zero-carbon economy, not weaselling out of making a fair contribution, which is why new clause 10 is so important.

My new clause 12 deals with a just transition, which is another aspect of the Paris climate agreement that should become a central tenet of the UK’s climate and energy policy. A just transition is about the essential steps a country needs to take to transform into a zero-carbon economy in a way that creates new jobs and supports and engages workers and communities currently reliant on high-carbon sectors.

Jonathan Edwards: Does the hon. Lady think the German strategy, energiewende, offers a way forward for the UK? It is about that transition from fossil fuels to renewables, with specific targets?

Caroline Lucas: I thank the hon. Gentleman for his intervention and I agree with what he says, as that strategy does point to a helpful direction of travel.

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As we would expect, trade unions are at the forefront of campaigning for a just transition, in the UK, the EU and globally. During the Paris climate talks, the unions made an incredibly powerful case for stronger ambition and faster action to cut emissions, and for making this transition away from fossil fuels. Central to that is the huge opportunity for job creation in new low-carbon industries. I spoke a moment ago about win-win situations, but I should have said win-win-win, as we have the jobs, the economy and the environment and energy advantages of having a clear direction of travel for this transition.

7 pm

The European Trade Union Confederation, which represents 90 trade unions from 39 countries, was very vocal on this issue. As it explained, a just transition means achieving ambitious climate action in a way that benefits the whole of society and does not simply pile the costs on the least privileged. It defines key elements of a just transition, some of which are incorporated in my amendment. For example, participation is included, as consistent and strong worker participation is essential so that change can be managed in a socially acceptable way. Secondly, on jobs, Sharan Burrow, the head of the International Trade Confederation, argues that there are no jobs on a dead planet. This is about not whether we embark on a transition, but a proactive approach to ensure that that transition happens in a way that protects, maintains and creates decent jobs and wages.

Thirdly, the ETUC looks at what this means in practice, which is essentially a Government-led active education, training and skills policy and a social safety net through active labour market policies, strong social protection and support measures. There is no lack of clarity on what a just transition might look like. At the minute, the political commitment and an inclusive plan of action are sadly lacking. During the Paris climate talks, Unison’s national officer for energy said:

“Thanks to the efforts of trade unions…the EU is committed to supporting the principle of Just Transition, but this commitment needs to be delivered in a meaningful way otherwise it is just words on paper.”

The same is urgently needed in the UK, although here we also need a first step, which is the commitment to the principle of just transition as well. I hope that, as what I have described here is fairly straightforward, the Government will at least support that part of my amendment.

New clause 12 also requires the Secretary of State to be clearer about the proportion of existing UK fossil fuel reserves that should remain unexploited. The Energy Minister answered a parliamentary question a few months ago in a very helpful way, repeating the fact that the International Energy Agency has suggested that around a third of global fossil fuel reserves are burnable under a 2° scenario. That means that two thirds are unburnable, and that is for a 2° scenario and not a 1.5° one. It is also a 2012 statistic. I would be really grateful if the Department gave us an up-to-date figure, both globally and for the UK, so that we have a bit more clarity on the matter.

Major new research from University College London found that, globally, 82% of fossil fuel reserves must be left underground. Mark Carney, the Governor of the Bank of England, warned recently that the vast majority of fossil fuels are essentially unburnable.

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The Government, as we know, have signed up to the Paris agreement, which goes even further, especially with the 1.5° goal. As delegates in Paris heard, that is essentially the balance between life and death for many citizens in poorer countries that are the most vulnerable to the impacts of climate change. Therefore, on unburnable fossil fuels, we need an up-to-date, clear number to aim for and concrete policies to get us there.

New clause 12 also requires the Government to redirect fossil fuel subsidies to low carbon alternatives. Ministers rather stubbornly stick to their own special definition of what a subsidy is—it seems to have a particular meaning only in energy circles, but that meaning allows them to claim that they do not have any subsidies. By any other definition—for example, that of the World Trade Organisation or the OECD—this is clearly nonsense. A study by the Overseas Development Institute revealed that the Government give the fossil fuels industry nearly £6 billion a year in subsidies, mainly through tax breaks. That is almost twice the financial support they provide to renewable energy providers, which urgently needs to change. The barriers to 100% renewable energy are not about technology or even about money, but about political will and vested interests. Those who argue against 100% renewable energy seem to think that perhaps they are the only people who are clever enough to know that the wind does not always blow or that the sun does not always shine, but they are not, and they need to get up to speed with 21st century innovation and technology. For example, why is the UK doing so little on things such as energy storage, energy efficiency and demand-side response? Those are practical, affordable and modern ways of meeting peak demand, rather than the backward thinking that simply says build more power stations.

During the Paris climate talks, a group consisting of 43 companies committing to get all power from renewable sources issued what it called “An entrepreneurs call to climate action”. That was a joint statement from 119 chief executive officers with international operations calling for 100% renewables by 2050, keeping 1.5° in reach, and an urgent end to fossil fuel subsidies. Those are the voices to which the Government need to listen. They should also be listening to leading academics. For example, last year, Stanford University laid out a road map for 139 countries to power their economies with solar, wind and hydro energy by 2050. It said that the world can reach 80% wind, water and sunlight by 2030 and 100% by 2050, with no negative impact on economic growth.

Here in the UK, a report last September from consultancy Demand Energy Equality detailed how the UK can get 80% of energy from renewables by 2030. Even if that were not the case, the sensible course of action is not to turn our backs on a goal of 100% renewables, but to invest in the research and development to ensure that we can get there. This is about fairness and justice as well as about jobs and creating a modern, resilient and successful British economy.

During the Paris climate talks, the Climate Vulnerable Forum issued the strongest call to date for full decarbonisation of the world economy, 100% renewable energy by 2050 and zero emissions by mid-century to keep the world on track for under 1.5° of warming. That group, which represents some 200 million people and which has contributed less than 2° of global emissions would suffer around 50% of climate impacts. This Energy Bill should be heeding that call for 100% renewables and putting in place policies to lead the way in getting there.

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In conclusion, those are the reasons I have tabled new clause 12 on just transition. The Government urgently need to recognise the imperative of leaving the vast majority of fossil fuel reserves in the ground and to stop squandering taxpayers’ money in a suicidal search for new sources of oil and gas that we simply cannot afford to burn. In doing so, there is a huge opportunity to embrace the employment potential of renewables and energy efficiency, and to collaborate with workers, trade unions, industry and others to build a just transition to a secure sustainable economy for workers of today and the future.

Alex Cunningham (Stockton North) (Lab): I rise specifically in support of new clause 7 relating to carbon capture and storage both as chair of the APPGs on CCS and energy intensive industries and as a Teesside MP who sees it as a major generator of jobs and potential saviour of many of the country’s manufacturing plants.

The absence of CCS policy in the UK is a major concern, being a critical technology for reducing emissions from steel, cement and other industrial processes, as well as power stations. In the past 72 hours, another steel company at Stillington in my constituency had decided that it will close its doors in May with the loss of 40 jobs, so it is critical that we start making the right decisions now.

The Chancellor’s decision to axe the funding to develop the two power station projects on Humberside and at Peterhead was a major blow not just to those two projects but to the entire industry and also very specifically to Teesside, where the country’s first industrial CCS project is still being planned by the Teesside collective.

When the Energy Minister attended a packed meeting of the CCS all-party group just over a month ago, she claimed that the economics did not add up, despite the fact that the final business cases were yet to be submitted. She said that an updated policy would be developed by the autumn, but then went on to suggest that we learn from other countries as they develop their CCS industries. Well, that is not good enough. Britain has tremendous capability in this area, and could be leading where the Minister says that we should follow. I am also worried that the Chancellor does not even understand what CCS is—a worry made all the worst when I asked him a question at Treasury questions a few weeks ago. I asked him what funding would be available for CCS projects once the Department for Energy and Climate Change comes up with its new policy in the autumn. He answered:

“We have set out our capital budget and our energy policy, which will see a doubling of the investment in renewable energy over the next five years.”—[Official Report, 19 January 2016; Vol. 604, c. 1269.]

There was no capital for CCS projects there. The Chancellor talked not of CCS but of renewable energy. I would like to think that he was just dodging my question, but I am not too sure that he understood it or the need for him to send a signal to industry that he was personally committed to making CCS a reality in our country.

New clause 7 provides the Government with a new opportunity to demonstrate their commitment to CCS and to develop a real strategy with a real intention to make the UK a leader in the field.

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Tom Blenkinsop: CCS is vital, because it gives a means by which steel—and other existing energy intensive industries—manufactures the very foundation product that then goes into wind turbines and other mechanisms that we need for renewables. This is absolutely and fundamentally dependent on carbon-intensive technologies, such as virgin steel capacity and oxygen burning intensive processes. If we want a renewable strategy, whether 42% or higher, we need to have steelworks that burn in the traditional sense.

Alex Cunningham: My hon. Friend and near neighbour makes the point clear.

Being a leader is critical to our energy-intensive and other industries if we are to overcome the competition threat from across the world. It is no use hanging back when other nations look like stealing a march on us. I have mentioned the Teesside Collective project to develop an industrial CCS project on Teesside, home to some of the country’s most energy-intensive industries. I invite the Minister and the Chancellor to the next meeting of the all-party parliamentary group on 23 March to learn about those ambitious plans. I know the Chancellor will be busy until the night before, but I guarantee that the APPG will be much more focused on the needs of industrial Britain than will his Budget.

The Government have made clear their intention to build a new series of gas-fired power stations and nowhere is better placed than Teesside to build one. Not only does a site exist there, but so does the infrastructure to put the electricity out directly into the national grid. Developers Sembcorp believe it could house a conventional combined cycle gas turbine plant or an integrated gasification combined cycle plant, both of which could incorporate carbon capture. Although Sembcorp could develop its own power station, a potential partner is looking to install a 300 MW gas-fired power plant on the plot.

I know that some may have reservations about the use of fossil fuels, but what an opportunity for the Government to put some meaning into the much abused term, “northern powerhouse”—a large-scale power plant, an opportunity to develop it with CCS, but with the immeasurable bonus of doing it with the Teesside Collective and developing an exciting project that could mean boom time for Teesside, with the kind of inward investment that only people in the south believe can be a reality.

Anna Turley (Redcar) (Lab/Co-op): I appreciate my hon. Friend’s generosity. He is right. At a time when Teesside has seen so many job losses in the past few weeks, carbon capture and storage could provide a huge opportunity for people there. Does he agree that in order to enable a transition to a low-carbon economy, we need to ensure that such jobs go to local people, and that nationally agreed terms and conditions are not undercut by recruitment from overseas?

Alex Cunningham: Indeed. I know that local trade unions have been campaigning on this. There are examples on Teesside of companies undercutting what is, in effect, a living wage for the skilled people on Teesside.

I know that projects such as a power station are always fraught with planning complications, but I hope that when the time comes the doors of Ministers in both the Department of Energy and Climate Change and the

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Department for Communities and Local Government will be open to ensure a quick decision on the planning application.

It is difficult to see how some of our industries, many of them critical to our economy, can remain located in the UK without CCS if our long-term national carbon reduction commitments are to be met. The Government appear to have no strategy for CCS development, let alone a means of funding it.

New clause 7 could compel Government to fill this huge hole in their energy policy platform. It does everything that any self-respecting Government would want to do, but, more than that, it could send that much wanted signal to the sector that Ministers are serious about carbon capture and storage, understand it and are prepared to deliver, and our country could benefit from potentially hundreds of thousands of jobs if they got it right.

7.15 pm

Paul Blomfield (Sheffield Central) (Lab): I shall speak briefly in support of new clause 11, to which I am delighted to have added my name, and I pay tribute to my right hon. Friend the Member for Doncaster North (Edward Miliband) for the amendment, the consensual way in which he has built the discourse around it, and the work that he did as the country’s first Secretary of State for Energy and Climate Change.

Climate change is an issue on which all of us have been lobbied by many groups. Most strikingly for me, I was lobbied last year by a group of students from Notre Dame school, a secondary school on the edge of my constituency, who came to Westminster to make the point that their generation was conscious of the consequences they would face if our generation failed to act. It is an incredibly powerful point, but our responsibility goes beyond the immediate generation.

A report published only last month in the journal Nature Climate Change pointed out that much of the discourse has been focused on the consequences of failing to act by the end of this century. Looking beyond that, the problems are even more serious. According to one of authors,

“We are making choices that will affect our grandchildren’s grandchildren and beyond.”

He continued:

“We need to think carefully about the long timescales of what we are unleashing.”

That was Professor Daniel Schrag from Harvard University.

The need to act, and to act more ambitiously, has never been clearer. The agreement of the Paris summit is a step forward, but as last month’s report highlighted, even if global warming is capped at Governments’ target of 2 oC, which is already seen as difficult, 20% of the world’s population will eventually have to migrate away from coasts swamped by rising oceans. Cities including New York, London, Rio de Janeiro, Cairo, Calcutta, Jakarta and Shanghai would all be submerged. We have seen the struggle to grapple with the refugee crisis that has grown over the last couple of years, a crisis driven by war in one country and a number of other related conflicts. Imagine for a moment what we will face if 20% of the world’s population is forced to do what people have always done when their homes become uninhabitable—to move to somewhere better.

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So we need greater ambition and a greater sense of urgency. That is provided by new clause 11. In the words of Professor Thomas Stocker from the University of Bern, one of the other authors of the report:

“The actions of the next 30 years are absolutely crucial for putting us on a path that avoids”

the worst outcomes

“and ensuring, at least in the next 200 years, the impacts are limited and give us time to adapt.”

The reservations that the hon. Member for Aberdeen South (Callum McCaig) expressed in his comments on the new clause are taken into account in the careful and thoughtful way that the clause has been drafted and the role that it provides for the Committee on Climate Change. What we need is the ambition embodied in the clause. As my right hon. Friend said, we did it with the Climate Change Act 2008, passed with all-party support, which sent a signal to the world. We can do that again; we cannot afford not to. The future is bleak if we do not cut our emissions further than Paris suggested.

The role that the new clause proposes for the Committee on Climate Change is important for the robustness of that ambition and its workability. I am pleased to hear the constructive engagement that there has been between my right hon. Friend and the Secretary of State. I hope that in her comments later we will hear that together we can move forward on the issue.

Andrea Leadsom: Government amendments 48 and 49 add the relevant provisions of the Oil Taxation Act 1975 and the Corporation Tax Act 2010 to the legislation listed at clause 2(6), which contains the Secretary of State’s relevant oil and gas functions. This ensures that the functions provided for by these Acts fall within the definition of “relevant functions” and can be transferred from the Secretary of State to the Oil and Gas Authority by regulations made under clause 2(2).

Schedule 1 to the Oil Taxation Act 1975 and chapter 9 of part 8 of the Corporation Tax Act 2010 contain the important oil and gas functions of determining oil fields and cluster areas, respectively. These functions form the basis of oil taxation. Petroleum revenue tax is applied by determined field, and allowances are given by cluster area to reduce the amount of profits to which the supplementary charge is applied. Both of these are functions currently undertaken by the Oil and Gas Authority in its capacity as an Executive agency, and are fundamental to our tax regime and to incentivising investment. These amendments are technical in nature and simply seek to put beyond doubt that these key functions can be transferred to the OGA once it becomes a Government company, as we have always intended.

Let me briefly explain Government amendment 51, to the long title. The amendment is consequential on the removal from the Bill in Committee of the clause on carbon accounting under the Climate Change Act 2008, which was introduced in the other place. It ensures that the Bill is compliant with the parliamentary convention that Bills should move between the Houses in a proper state.

New clause 3 was tabled by the hon. Member for Aberdeen South (Callum McCaig), and new clause 7 was tabled by the hon. Member for Wigan (Lisa Nandy) and others. I should add that the hon. Member for

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Stockton North (Alex Cunningham) has been a long-standing advocate of CCS, which he and I have discussed on a number of occasions, so I hope he will acknowledge that I have studied the subject.

Alex Cunningham: I am pleased to acknowledge the work the Minister has done, but the important thing is that we convince the Chancellor to fund CCS at some time in the future. How optimistic is she that we will be able to do that?

Andrea Leadsom: The new clauses seek to place a duty on the Secretary of State to produce and implement a CCS strategy by June 2017 and to report to Parliament on progress every three years. They also set out that the strategy must help to deliver the emissions reductions needed to meet the fifth and subsequent carbon budgets.

As I emphasised in Committee, the Government’s view remains that CCS has a potentially important role to play in the long-term decarbonisation of the UK’s industrial and power sectors, the long-term competitiveness of energy-intensive industries and the longevity of North sea industries. However, CCS costs are currently high, which is why we remain committed to working with industry to bring forward innovative ideas for reducing the costs of this potentially important technology.

Philip Boswell: I thank the Minister for her commitment to carbon capture and storage. However, in terms of our commitment on climate change, we have seen the increased construction and usage of coal-fired power stations around the world, and it has also been well noted in the House that the removal of the CCS competition was a missed opportunity. In Scotland, we still have the Grangemouth CCS project, involving a facility fitted with CCS technology that would cut 90% of emissions. Does the Minister agree that the CCS advisory group should look at that, as an opportunity to get us back on track?

Andrea Leadsom: What I can say is that the Government have invested more than £220 million in CCS since 2011. This financial year alone, we have invested £6 million, including £1.7 million in October 2015, to support three innovative CCS technologies—from Carbon Clean Solutions, C-Capture Ltd and FET Engineering—and £2.5 million to investigate potential new CO2 stores. We have also invested £60 million of our international climate fund to support CCS capacity building and action internationally. The hon. Member for Stockton North will be aware that DECC provided £1 million in 2014 for a feasibility study into industrial CCS on Teesside, as part of the city deal.

As I said, CCS prices are currently high, so we are committed to working with industry on bringing forward innovative ideas to reduce costs. A key part of that is our continuing investment in CCS through innovation support, international partnerships and industrial research projects.

I recognise that industry and others are keen for the Government to set out our approach to CCS as soon as possible. As I emphasised in Committee, we will do that by the end of 2016. In doing so, we will continue to engage closely with industry, the all-party group on carbon capture and storage, the CCS strategy group and Lord Oxburgh’s CCS advisory group, which is planning to deliver its findings and recommendations to the Government by the summer.

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I hope I have reassured hon. Members that the new clauses are unnecessary. I therefore hope they will be content not to press them.

Alex Cunningham: Before the Minister moves on, will she hazard a comment on the proposed project on Teesside, which would see a 300 MW power station built on the Wilton site and wrapped up with CCS?

Andrea Leadsom: As I have said to the hon. Gentleman, I continue to engage with him and others, and Lord Oxburgh’s CCS advisory group will publish its findings. We will be looking at individual projects, but as the hon. Gentleman and other hon. Members will know, CCS costs are currently extremely high, so I absolutely cannot make any commitments on particular projects right now.

New clauses 6 and 10, tabled by the right hon. Member for Orkney and Shetland (Mr Carmichael), the hon. Member for Wigan and others, are intended to restrict the carbon accounting rules that are allowed under the Climate Change Act from 2028—from the fifth carbon budget period. Under the current rules, we count the UK’s actual emissions for some sectors; for other sectors, we reflect how the EU emissions trading system works.

The new clauses would prevent us from continuing with that approach beyond the fourth carbon budget. Instead, the intention is presumably that the UK’s actual emissions for all sectors would be counted, but without the ability to offset any of those through a system of carbon accounting. As I have said previously, we would still participate in the EU emissions trading system even with that change, and the effect of the new clauses would simply be that we would not reflect how the EU emissions trading system works in our carbon budgets.

Of course, there are arguments for and against different accounting methods, and the issue requires careful consideration of several different factors, including the impact on consumers, businesses and industry, and on our ability to meet our domestic, EU and international commitments in the cheapest way. My hon. Friend the Member for Warrington South (David Mowat) clearly set out some of the challenges for energy-intensive industries in that respect.

It is absolutely right that we keep under review our carbon accounting practices, but now is not the right time to make the proposed changes, because we are focused on setting the fifth carbon budget. We have to do that by 30 June, as required by the Climate Change Act, and that is less than four months away. Accepting new clause 6 or 10 at this point in the process would threaten serious delay in setting the fifth carbon budget. That cannot be right, and it cannot be what hon. Members intended. I just cannot accept putting us at risk of not complying with our legal commitment under the Climate Change Act. I therefore hope hon. Members will be prepared not to press the new clauses.

New clause 11, tabled by the right hon. Member for Doncaster North (Edward Miliband), would set a new climate change target for the UK. Specifically, it would require the Government to set a year by which net emissions will be zero or less, and to ensure that that target was met for that year and subsequent ones. The year would have to be set within 12 months of the Bill coming into force and following advice from the Committee on Climate Change.

14 Mar 2016 : Column 725

I sincerely thank the right hon. Gentleman for raising this important issue and for his statements to the House on the matter over a long period. I know the House was delighted with the Paris agreement, which included a goal for global net zero emissions by the end of this century. My right hon. Friend the Secretary of State played a crucial role in securing support for that goal in Paris, and I thank the right hon. Gentleman for his support in securing such an ambitious deal. I am grateful for his past and continued commitment to the important subject of climate change.

The Government believe we will need to take the step of enshrining the Paris goal of net zero emissions in UK law—the question is not whether, but how we do it, and there is an important set of questions to be answered before we do. The Committee on Climate Change is looking at the implications of the commitments made in Paris and has said it will report in the autumn. We will want to consider carefully its recommendations, and I am happy to give the right hon. Gentleman the undertaking that we will also discuss with him and others across the House how best to approach this matter, once we have undertaken that consideration.

This is an example, once again, of the House demonstrating on a cross-party basis a determination to tackle climate change, as we showed in the Climate Change Act. The Government are determined to build on the momentum of Paris, and our positive response to the right hon. Gentleman today is a clear example of that. On that basis, I hope he will not press his new clause to a Division.

Next I will respond to new clause 12, tabled by the hon. Member for Brighton, Pavilion (Caroline Lucas). This would require the Secretary of State to develop and publish a national strategy for the energy sector towards 100% renewable energy by 2050, under the framework of a so-called just transition. I want to start by recognising the areas where I hope the hon. Lady and I can agree. She is a passionate advocate for action to tackle climate change, to which this Government are firmly committed. Our domestic Climate Change Act is world leading, and my right hon. Friend the Secretary of State played a critical role last year in securing a strong global deal in Paris. We can also agree on the important role for renewables in helping to reduce emissions. In particular, I welcome the progress we have seen so far in driving down the cost of renewables technologies such as offshore wind and solar.

7.30 pm

While I hope that we can indeed agree on those points, we do have different views on the best way to go about reducing emissions. There are three reasons why I cannot accept the hon. Lady’s new clause. First, it goes against the principle of technology neutrality, which ensures that we can cut emissions at the lowest cost to consumers. Secondly, we already engage very widely on our approach to decarbonisation. Thirdly, the new clause overlaps significantly with the existing legislative requirement for us to publish policies and proposals for tackling climate change. We are committed to ensuring that the UK continues to do its part to tackle climate change, but we want to cut emissions as cheaply as possible and to drive down costs for families and for businesses.

14 Mar 2016 : Column 726

Caroline Lucas: Will the hon. Lady elaborate a little more on her point about technology neutrality? All I am talking about is renewables, energy efficiency, storage and so forth. If she knows of some wonderful new technology that can get our emissions down more quickly and more cheaply, I would love to hear about it.

Andrea Leadsom: As the hon. Lady well knows, one transitional approach to decarbonisation is to move away from coal and towards gas as a bridge to a low-carbon future. She will also be very aware that new nuclear offers a low-carbon technology for the future, and this Government are committed to supporting that.

I appreciate the intent behind much of the hon. Lady’s new clause, but I hope that she can see why I cannot accept its specifics and that she will be content to withdraw it.

I turn now to new clause 8, tabled by the hon. Member for Wigan and others. This would require the Secretary of State to set a decarbonisation target range for the electricity generating sector. We debated very similar amendments in the previous Parliament, and during the passage of this Bill in the other place and in earlier Commons stages. The Government have made our position on this matter very clear. We are committed to ensuring that the UK continues to play its part to tackle climate change, in line with the Climate Change Act and our international and EU obligations. However, we want to do this as cost-effectively as possible in order to keep costs down for families and businesses while delivering on legally binding commitments. We cannot do that by locking ourselves into additional expensive and inflexible targets relating to the power sector. There are too many things we cannot predict about how the energy system will develop over the next 15 years and beyond. The costs of getting this wrong now would be picked up by families and businesses for decades to come.

I find it strange that Opposition parties often argue that we are not doing enough to tackle fuel poverty, and yet they are urging us to sign consumers up to a distorting and expensive power sector target. Investors want to know that we have clear, credible and affordable plans. The Government are now setting out the next stages in their long-term commitment to move to a low-carbon economy, providing a basis for electricity investment into the next decade. The huge investment we have seen so far is evidence that our approach is working. Between 2010 and 2014, our policies have secured an estimated £42 billion of investment in low-carbon electricity, including £40 billion in renewables, and we have more in the pipeline for the future. I therefore cannot accept this new clause, and I ask hon. Members to withdraw it.

I would now like to deal with new clause 9, tabled by the hon. Member for Wigan and others. This seeks to introduce additional capacity market eligibility criteria requiring any new-build capacity accessing 15-year capacity agreements to be made subject to the emissions performance standard, or EPS. As I have explained previously, the new clause does not achieve its intended aim, so I am surprised to see it reappear. The EPS sets an annual limit specifically on CO2 emissions from new fossil fuel plant with an output above 50 MW. Any new fossil fuel generators above 50 MW seeking to participate in the capacity market will already be subject to this limit, so

14 Mar 2016 : Column 727

nothing would be gained by introducing this as a further eligibility requirement in the capacity market. Existing generators, which form the majority of capacity market participants, cannot access 15-year agreements, so the new clause would also have no impact on those generators.

As I have set out before, the emissions impact from smaller generators that sit below the 50 MW threshold is often assumed to be larger than it is in reality. Small “peaking” generators have a relatively small impact on overall CO2 emissions due to the short hours that they run. These generators typically run for less than 100 hours a year, in the case of diesel engines, while larger fossil fuel plants will run for 2,000 hours or more. The new clause is therefore not effective, for the simple reason that the annual EPS CO2 emissions limit would be very unlikely to have any impact on small generators participating in the capacity market.

Dr Whitehead: Is not the proposal that the Minister herself is putting forward for the future inclusion of small diesel sets into air quality standards subject to exactly the same problem, in that smaller diesel set generators are brought into a scheme that was originally proposed for larger generators, thereby including them in the system? That is exactly what the new clause proposes through smaller diesel sets coming into an emissions performance standard that otherwise would apply to larger plants.

Andrea Leadsom: As I have explained to the hon. Gentleman, his new clause would not actually have that effect.

However, I am not complacent about concerns associated with local pollutants from small generators. I am very aware of the concern about diesel, in particular. Later this year, the Department will consult on options that will include legislation that would set binding emissions limit values on relevant air pollutants from smaller engines, with a view to having legislation in force no later than January 2019, and possibly sooner. These limits would apply to generators or groups of generators with a rated thermal input equal to or greater than 1 MW and less than 50 MW, irrespective of their number of hours of operation during any given year. This shows that the Government are taking appropriate action to avoid any disproportionate impact on air quality from smaller engines where those could contribute to harmful levels of air pollutants and the exceeding of existing air quality limit values. These limits, along with other proposals we have recently announced, send a clear message about the viability of developing and running diesel generators in future. I hope that hon. Members have found my explanation reassuring and will be content to withdraw their new clause.

I turn now to new clause 5, tabled by the right hon. Member for Orkney and Shetland (Mr Carmichael). This seeks to reinsert the clause added by the Opposition in the other place, once again rewriting the Oil and Gas Authority’s principal objective of maximising economic recovery of UK petroleum. This topic has been debated at length throughout the passage of the Bill. The Government successfully removed the previous iteration of this clause at Committee, with the support of Scottish National party Members. Importantly, I note that it was agreed across the room, including by Opposition Front Benchers, that diluting the focus of the OGA in

14 Mar 2016 : Column 728

such a way was undesirable. In light of this, I am surprised and rather disappointed that the right hon. Gentleman has tabled this new clause, not least because of the serious implications it has for jobs and growth in Scotland. As I have said many times, any amendment that detracts from the OGA’s focus on maximising economic recovery is damaging to the North sea. Such a move is unacceptable, particularly at a time of unprecedented challenge for the oil and gas industry.

Mr Carmichael: I am as disappointed with the Minister as she claims to be with me. To suggest that the OGA, which is an exceptionally effective public body, is incapable of doing more than one thing is rather insulting to the body that we worked so hard to set up.

Andrea Leadsom: The right hon. Gentleman misses the point. The OGA is going to have an enormous brief. The point about its principal objective being to maximise the economic recovery is that that would focus its efforts on the long-term sustainability of the North sea and not what the other House tried to put in place, which is related to short-termism and trying to maximise profitability and so on. That would be counter to the interests of jobs and growth in his constituency and others. Removing the OGA’s focus on that principal objective seriously risks weakening its ability to provide support to an industry that is urgently in need of it, and the potential knock-on effect would be significant. Doing so would risk the premature decommissioning of key North sea infrastructure and would seriously jeopardise vital skills and experience, including those that could help to promote the longevity of the industry through carbon storage projects. From that perspective, the amendment is self-defeating. Furthermore, the “Maximising the Economic Recovery” UK strategy has now been published and is currently before Parliament. The amendment would undo the significant amount of work that has been undertaken with industry and would require the OGA to revise its MER UK strategy to take into account the expansion in the principal objective.

As the hon. Member for Aberdeen South has mentioned on several occasions, it is mission critical that the OGA maintains a “laser-like focus” on maximising economic recovery above all else. Without such a focus, we risk conflicting the OGA—setting it up to fail in its crucial mission to protect our domestic energy mix and to support hundreds of thousands of jobs. That is not what is best for the UK continental shelf now or in future.

Callum McCaig: I thank the Minister for drawing attention to that. It is absolutely fundamental that the OGA has that laser-like focus. It is also fundamental for the industry that the Chancellor has that laser-like focus. I reiterate to the Minister the need for her to use her good offices to make sure the industry gets the support it needs on Wednesday.

Andrea Leadsom: I am grateful to the hon. Gentleman for that. He will be aware that the Chancellor and the Prime Minister have looked carefully at the matter, so I hope that he will be pleased. I assure him that his interests and the interests of the UK continental shelf are being carefully considered. I hope that the right hon. Member for Orkney and Shetland will be content not to press the amendment to a vote.

14 Mar 2016 : Column 729

Finally, hon. Members will be pleased to know, I turn to amendment 47, which was tabled by the hon. Member for Wigan and others. The amendment would oblige the OGA to consider the most advantageous use of North sea infrastructure for the overall benefit of oil and gas extraction prior to the decommissioning of such sites. I am delighted to note the support across the House for the measures to establish the OGA and give it the powers needed to maximise economic recovery. The impact of the fall in oil prices on industry makes that even more critical.

Although we are taking urgent steps to stimulate investment in exploration, it is equally important to the overall viability of the North sea that we make the best use of infrastructure in order to mitigate the risks of premature decommissioning. That requires a holistic approach in which operators, licence holders and infra- structure owners collaborate to ensure the maximum economic recovery of petroleum from the UK continental shelf. That is precisely provided by the OGA’s principal objective set out in section 9A of the Petroleum Act 1998.

The strategy to maximise economic recovery further addresses that issue. It includes duties to plan, commission and maintain infrastructure in a way that meets the optimum configuration for maximising the value of economically recoverable petroleum, taking into account the operational needs of others. The strategy and the measures in the Bill ensure that before commencing the decommissioning of any infrastructure in relevant UK waters, both the owners of the infrastructure and the OGA must ensure that all viable options for its continued use have been suitably explored. The OGA is already working to support a stable and sustainable decommissioning framework focused on improving late-life management. The OGA will publish its decommissioning sector strategy early in the summer. I hope that hon. Members have found my explanation reassuring and will be content not to press the amendment to a vote.

Mr Speaker: I call Callum McCaig, if he wishes to speak.

Callum McCaig indicated dissent.

Question put, That the clause be read a Second time.

The House divided:

Ayes 229, Noes 268.

Division No. 216]

[

7.44 pm

AYES

Abbott, Ms Diane

Abrahams, Debbie

Ahmed-Sheikh, Ms Tasmina

Ali, Rushanara

Allen, Mr Graham

Arkless, Richard

Austin, Ian

Bardell, Hannah

Barron, rh Kevin

Beckett, rh Margaret

Benn, rh Hilary

Betts, Mr Clive

Black, Mhairi

Blackford, Ian

Blackman-Woods, Dr Roberta

Blenkinsop, Tom

Blomfield, Paul

Bradshaw, rh Mr Ben

Brennan, Kevin

Brock, Deidre

Brown, Lyn

Bryant, Chris

Buck, Ms Karen

Burgon, Richard

Burnham, rh Andy

Butler, Dawn

Byrne, rh Liam

Cadbury, Ruth

Cameron, Dr Lisa

Campbell, rh Mr Alan

Campbell, Mr Ronnie

Carmichael, rh Mr Alistair

Champion, Sarah

Chapman, Douglas

Chapman, Jenny

Coaker, Vernon

Coffey, Ann

Cooper, Julie

Cooper, Rosie

Cooper, rh Yvette

Corbyn, rh Jeremy

Cowan, Ronnie

Cox, Jo

Coyle, Neil

Crausby, Mr David

Creasy, Stella

Cruddas, Jon

Cryer, John

Cummins, Judith

Cunningham, Alex

Cunningham, Mr Jim

Dakin, Nic

Danczuk, Simon

Davies, Geraint

Day, Martyn

De Piero, Gloria

Docherty-Hughes, Martin

Donaldson, rh Mr Jeffrey M.

Donaldson, Stuart Blair

Doughty, Stephen

Dowd, Peter

Dromey, Jack

Dugher, Michael

Durkan, Mark

Eagle, Ms Angela

Edwards, Jonathan

Efford, Clive

Ellman, Mrs Louise

Esterson, Bill

Evans, Chris

Farrelly, Paul

Fellows, Marion

Field, rh Frank

Fitzpatrick, Jim

Fletcher, Colleen

Flint, rh Caroline

Flynn, Paul

Fovargue, Yvonne

Foxcroft, Vicky

Gardiner, Barry

Gethins, Stephen

Gibson, Patricia

Glass, Pat

Glindon, Mary

Godsiff, Mr Roger

Goodman, Helen

Grady, Patrick

Grant, Peter

Gray, Neil

Greenwood, Lilian

Greenwood, Margaret

Griffith, Nia

Hanson, rh Mr David

Harris, Carolyn

Hayes, Helen

Hayman, Sue

Healey, rh John

Hendry, Drew

Hermon, Lady

Hillier, Meg

Hodgson, Mrs Sharon

Hoey, Kate

Hollern, Kate

Hopkins, Kelvin

Hosie, Stewart

Howarth, rh Mr George

Hunt, Tristram

Huq, Dr Rupa

Hussain, Imran

Jarvis, Dan

Johnson, rh Alan

Johnson, Diana

Jones, Graham

Jones, Helen

Jones, Mr Kevan

Jones, Susan Elan

Kane, Mike

Kaufman, rh Sir Gerald

Keeley, Barbara

Kendall, Liz

Kerevan, George

Kinnock, Stephen

Kyle, Peter

Lavery, Ian

Leslie, Chris

Lewell-Buck, Mrs Emma

Lewis, Clive

Long Bailey, Rebecca

Lucas, Caroline

Lucas, Ian C.

Lynch, Holly

MacNeil, Mr Angus Brendan

Mactaggart, rh Fiona

Madders, Justin

Mahmood, Shabana

Malhotra, Seema

Marris, Rob

Marsden, Mr Gordon

Maskell, Rachael

Matheson, Christian

Mc Nally, John

McCabe, Steve

McCaig, Callum

McCarthy, Kerry

McDonagh, Siobhain

McDonald, Andy

McDonald, Stewart Malcolm

McDonald, Stuart C.

McDonnell, John

McFadden, rh Mr Pat

McGinn, Conor

McInnes, Liz

McKinnell, Catherine

McLaughlin, Anne

McMahon, Jim

Mearns, Ian

Miliband, rh Edward

Monaghan, Carol

Monaghan, Dr Paul

Morden, Jessica

Morris, Grahame M.

Mullin, Roger

Murray, Ian

Nandy, Lisa

Newlands, Gavin

Nicolson, John

O'Hara, Brendan

Onn, Melanie

Onwurah, Chi

Osamor, Kate

Oswald, Kirsten

Owen, Albert

Paterson, Steven

Pearce, Teresa

Pennycook, Matthew

Perkins, Toby

Powell, Lucy

Qureshi, Yasmin

Rayner, Angela

Reed, Mr Jamie

Reed, Mr Steve

Rees, Christina

Reynolds, Jonathan

Rimmer, Marie

Ritchie, Ms Margaret

Robertson, rh Angus

Robinson, Gavin

Robinson, Mr Geoffrey

Rotheram, Steve

Ryan, rh Joan

Saville Roberts, Liz

Shah, Naz

Sharma, Mr Virendra

Sheerman, Mr Barry

Sheppard, Tommy

Sherriff, Paula

Siddiq, Tulip

Skinner, Mr Dennis

Slaughter, Andy

Smith, rh Mr Andrew

Smith, Angela

Smith, Cat

Smith, Jeff

Smith, Nick

Smith, Owen

Smyth, Karin

Stephens, Chris

Stevens, Jo

Stuart, rh Ms Gisela

Tami, Mark

Thewliss, Alison

Thomas-Symonds, Nick

Thornberry, Emily

Timms, rh Stephen

Trickett, Jon

Turley, Anna

Twigg, Derek

Twigg, Stephen

Vaz, Valerie

Watson, Mr Tom

West, Catherine

Whiteford, Dr Eilidh

Whitehead, Dr Alan

Whitford, Dr Philippa

Wilson, Corri

Winterton, rh Dame Rosie

Woodcock, John

Wright, Mr Iain

Zeichner, Daniel

Tellers for the Ayes:

Philip Boswell

and

Owen Thompson

NOES

Afriyie, Adam

Aldous, Peter

Allan, Lucy

Allen, Heidi

Amess, Sir David

Andrew, Stuart

Ansell, Caroline

Argar, Edward

Atkins, Victoria

Bacon, Mr Richard

Baker, Mr Steve

Baldwin, Harriett

Barclay, Stephen

Barwell, Gavin

Bellingham, Sir Henry

Benyon, Richard

Beresford, Sir Paul

Berry, Jake

Berry, James

Bingham, Andrew

Blackman, Bob

Blunt, Crispin

Bone, Mr Peter

Borwick, Victoria

Bottomley, Sir Peter

Bradley, Karen

Brady, Mr Graham

Brazier, Mr Julian

Bridgen, Andrew

Brine, Steve

Brokenshire, rh James

Bruce, Fiona

Burns, Conor

Burns, rh Sir Simon

Cairns, Alun

Carmichael, Neil

Cartlidge, James

Cash, Sir William

Caulfield, Maria

Chalk, Alex

Chishti, Rehman

Clark, rh Greg

Clarke, rh Mr Kenneth

Cleverly, James

Clifton-Brown, Geoffrey

Coffey, Dr Thérèse

Collins, Damian

Costa, Alberto

Cox, Mr Geoffrey

Crabb, rh Stephen

Davies, Byron

Davies, Glyn

Davies, Mims

Davis, rh Mr David

Djanogly, Mr Jonathan

Donelan, Michelle

Double, Steve

Dowden, Oliver

Doyle-Price, Jackie

Drax, Richard

Drummond, Mrs Flick

Duddridge, James

Duncan, rh Sir Alan

Duncan Smith, rh Mr Iain

Dunne, Mr Philip

Ellis, Michael

Ellison, Jane

Ellwood, Mr Tobias

Elphicke, Charlie

Eustice, George

Evans, Graham

Fabricant, Michael

Fallon, rh Michael

Fernandes, Suella

Foster, Kevin

Fox, rh Dr Liam

Frazer, Lucy

Freeman, George

Freer, Mike

Fuller, Richard

Fysh, Marcus

Gale, Sir Roger

Garnier, rh Sir Edward

Garnier, Mark

Gauke, Mr David

Ghani, Nusrat

Gibb, Mr Nick

Gillan, rh Mrs Cheryl

Glen, John

Goodwill, Mr Robert

Graham, Richard

Grant, Mrs Helen

Grayling, rh Chris

Green, Chris

Green, rh Damian

Grieve, rh Mr Dominic

Griffiths, Andrew

Gummer, Ben

Gyimah, Mr Sam

Halfon, rh Robert

Hall, Luke

Hammond, Stephen

Hancock, rh Matthew

Hands, rh Greg

Harper, rh Mr Mark

Harrington, Richard

Harris, Rebecca

Hart, Simon

Hayes, rh Mr John

Heald, Sir Oliver

Heappey, James

Heaton-Harris, Chris

Heaton-Jones, Peter

Henderson, Gordon

Herbert, rh Nick

Hinds, Damian

Hoare, Simon

Hollinrake, Kevin

Hollobone, Mr Philip

Holloway, Mr Adam

Hopkins, Kris

Huddleston, Nigel

Hunt, rh Mr Jeremy

Jackson, Mr Stewart

Javid, rh Sajid

Jayawardena, Mr Ranil

Jenkyns, Andrea

Jenrick, Robert

Johnson, Boris

Johnson, Gareth

Johnson, Joseph

Jones, Andrew

Jones, rh Mr David

Jones, Mr Marcus

Kawczynski, Daniel

Kennedy, Seema

Kirby, Simon

Knight, rh Sir Greg

Knight, Julian

Kwarteng, Kwasi

Latham, Pauline

Leadsom, Andrea

Lee, Dr Phillip

Lefroy, Jeremy

Leigh, Sir Edward

Leslie, Charlotte

Letwin, rh Mr Oliver

Lewis, Brandon

Liddell-Grainger, Mr Ian

Lidington, rh Mr David

Lilley, rh Mr Peter

Lord, Jonathan

Loughton, Tim

Mackinlay, Craig

Main, Mrs Anne

Mak, Mr Alan

Malthouse, Kit

Mann, Scott

Mathias, Dr Tania

May, rh Mrs Theresa

Maynard, Paul

McCartney, Jason

McCartney, Karl

McPartland, Stephen

Menzies, Mark

Merriman, Huw

Metcalfe, Stephen

Miller, rh Mrs Maria

Milling, Amanda

Mills, Nigel

Milton, rh Anne

Mitchell, rh Mr Andrew

Mordaunt, Penny

Morgan, rh Nicky

Morris, Anne Marie

Morris, David

Morris, James

Morton, Wendy

Mowat, David

Murray, Mrs Sheryll

Murrison, Dr Andrew

Neill, Robert

Newton, Sarah

Nokes, Caroline

Norman, Jesse

Nuttall, Mr David

Offord, Dr Matthew

Opperman, Guy

Parish, Neil

Patel, rh Priti

Pawsey, Mark

Penning, rh Mike

Penrose, John

Percy, Andrew

Perry, Claire

Phillips, Stephen

Philp, Chris

Pincher, Christopher

Pow, Rebecca

Prentis, Victoria

Prisk, Mr Mark

Pritchard, Mark

Pursglove, Tom

Quin, Jeremy

Quince, Will

Raab, Mr Dominic

Redwood, rh John

Robinson, Mary

Rudd, rh Amber

Rutley, David

Sandbach, Antoinette

Scully, Paul

Selous, Andrew

Shapps, rh Grant

Sharma, Alok

Shelbrooke, Alec

Simpson, rh Mr Keith

Skidmore, Chris

Smith, Chloe

Smith, Henry

Smith, Julian

Smith, Royston

Soames, rh Sir Nicholas

Solloway, Amanda

Soubry, rh Anna

Spelman, rh Mrs Caroline

Spencer, Mark

Stephenson, Andrew

Stevenson, John

Stewart, Iain

Stewart, Rory

Streeter, Mr Gary

Stride, Mel

Stuart, Graham

Sturdy, Julian

Sunak, Rishi

Swayne, rh Mr Desmond

Swire, rh Mr Hugo

Syms, Mr Robert

Thomas, Derek

Throup, Maggie

Timpson, Edward

Tolhurst, Kelly

Tomlinson, Justin

Tomlinson, Michael

Tracey, Craig

Tredinnick, David

Trevelyan, Mrs Anne-Marie

Tugendhat, Tom

Tyrie, rh Mr Andrew

Vaizey, Mr Edward

Vara, Mr Shailesh

Vickers, Martin

Walker, Mr Charles

Walker, Mr Robin

Warman, Matt

Watkinson, Dame Angela

Wharton, James

Whately, Helen

White, Chris

Whittaker, Craig

Wiggin, Bill

Williamson, rh Gavin

Wilson, Mr Rob

Wollaston, Dr Sarah

Wood, Mike

Wragg, William

Zahawi, Nadhim

Tellers for the Noes:

George Hollingbery

and

Margot James

Question accordingly negatived.

14 Mar 2016 : Column 730

14 Mar 2016 : Column 731

14 Mar 2016 : Column 732

14 Mar 2016 : Column 733

New Clause 8

Decarbonisation target range

“(1) Section 1 of the Energy Act 2013 is amended as follows.

(2) Leave out subsection (2) and insert—

“(2) The Secretary of State must by order (“a decarbonisation order”) set a decarbonisation target range, which shall be reviewed annually thereafter.”

(3) Leave out subsection (5) and insert—

“(5) The decarbonisation order shall be made within six months of the adoption of the fifth carbon budget set by virtue of the duty of the Secretary of State under section 4 (2) (b) of the climate Change Act 2008.”” —(Dr Whitehead.)

Brought up, and read the First time.

Question put, That the clause be read a Second time.

The House divided:

Ayes 227, Noes 272.

Division No. 217]

[

7.56 pm

AYES

Abbott, Ms Diane

Abrahams, Debbie

Ahmed-Sheikh, Ms Tasmina

Ali, Rushanara

Allen, Mr Graham

Arkless, Richard

Austin, Ian

Bardell, Hannah

Barron, rh Kevin

Beckett, rh Margaret

Benn, rh Hilary

Betts, Mr Clive

Black, Mhairi

Blackford, Ian

Blackman-Woods, Dr Roberta

Blenkinsop, Tom

Blomfield, Paul

Boswell, Philip

Bradshaw, rh Mr Ben

Brennan, Kevin

Brock, Deidre

Brown, Lyn

Bryant, Chris

Buck, Ms Karen

Burgon, Richard

Burnham, rh Andy

Butler, Dawn

Byrne, rh Liam

Cadbury, Ruth

Cameron, Dr Lisa

Campbell, rh Mr Alan

Campbell, Mr Ronnie

Carmichael, rh Mr Alistair

Champion, Sarah

Chapman, Douglas

Chapman, Jenny

Coaker, Vernon

Coffey, Ann

Cooper, Julie

Cooper, Rosie

Cooper, rh Yvette

Cowan, Ronnie

Cox, Jo

Coyle, Neil

Crausby, Mr David

Creasy, Stella

Cruddas, Jon

Cryer, John

Cummins, Judith

Cunningham, Alex

Cunningham, Mr Jim

Dakin, Nic

Danczuk, Simon

Davies, Geraint

Day, Martyn

De Piero, Gloria

Docherty-Hughes, Martin

Donaldson, rh Mr Jeffrey M.

Donaldson, Stuart Blair

Doughty, Stephen

Dowd, Jim

Dowd, Peter

Dromey, Jack

Dugher, Michael

Durkan, Mark

Eagle, Ms Angela

Edwards, Jonathan

Efford, Clive

Ellman, Mrs Louise

Esterson, Bill

Evans, Chris

Farrelly, Paul

Fellows, Marion

Field, rh Frank

Fitzpatrick, Jim

Fletcher, Colleen

Flint, rh Caroline

Flynn, Paul

Fovargue, Yvonne

Foxcroft, Vicky

Gardiner, Barry

Gethins, Stephen

Gibson, Patricia

Glass, Pat

Glindon, Mary

Godsiff, Mr Roger

Goodman, Helen

Grady, Patrick

Grant, Peter

Gray, Neil

Greenwood, Lilian

Greenwood, Margaret

Griffith, Nia

Hanson, rh Mr David

Harris, Carolyn

Hayes, Helen

Hayman, Sue

Healey, rh John

Hendry, Drew

Hermon, Lady

Hillier, Meg

Hodgson, Mrs Sharon

Hoey, Kate

Hollern, Kate

Hopkins, Kelvin

Hosie, Stewart

Howarth, rh Mr George

Hunt, Tristram

Huq, Dr Rupa

Hussain, Imran

Jarvis, Dan

Johnson, rh Alan

Johnson, Diana

Jones, Graham

Jones, Helen

Jones, Mr Kevan

Jones, Susan Elan

Kane, Mike

Kaufman, rh Sir Gerald

Keeley, Barbara

Kendall, Liz

Kerevan, George

Kinnock, Stephen

Kyle, Peter

Lavery, Ian

Leslie, Chris

Lewell-Buck, Mrs Emma

Lewis, Clive

Long Bailey, Rebecca

Lucas, Caroline

Lucas, Ian C.

Lynch, Holly

MacNeil, Mr Angus Brendan

Mactaggart, rh Fiona

Madders, Justin

Mahmood, Shabana

Malhotra, Seema

Marris, Rob

Marsden, Mr Gordon

Maskell, Rachael

Matheson, Christian

Mc Nally, John

McCabe, Steve

McCaig, Callum

McCarthy, Kerry

McDonagh, Siobhain

McDonald, Andy

McDonald, Stewart Malcolm

McDonald, Stuart C.

McDonnell, John

McGinn, Conor

McGovern, Alison

McInnes, Liz

McKinnell, Catherine

McLaughlin, Anne

McMahon, Jim

Mearns, Ian

Miliband, rh Edward

Monaghan, Carol

Monaghan, Dr Paul

Morden, Jessica

Mullin, Roger

Murray, Ian

Nandy, Lisa

Newlands, Gavin

Nicolson, John

O'Hara, Brendan

Onn, Melanie

Onwurah, Chi

Osamor, Kate

Oswald, Kirsten

Owen, Albert

Paterson, Steven

Pearce, Teresa

Pennycook, Matthew

Perkins, Toby

Powell, Lucy

Qureshi, Yasmin

Rayner, Angela

Reed, Mr Jamie

Reed, Mr Steve

Rees, Christina

Reynolds, Jonathan

Rimmer, Marie

Ritchie, Ms Margaret

Robertson, rh Angus

Robinson, Gavin

Robinson, Mr Geoffrey

Ryan, rh Joan

Saville Roberts, Liz

Shah, Naz

Sharma, Mr Virendra

Sheerman, Mr Barry

Sheppard, Tommy

Sherriff, Paula

Siddiq, Tulip

Skinner, Mr Dennis

Slaughter, Andy

Smith, rh Mr Andrew

Smith, Angela

Smith, Cat

Smith, Nick

Smith, Owen

Smyth, Karin

Stephens, Chris

Stevens, Jo

Stuart, rh Ms Gisela

Tami, Mark

Thewliss, Alison

Thomas-Symonds, Nick

Thompson, Owen

Thornberry, Emily

Timms, rh Stephen

Trickett, Jon

Turley, Anna

Twigg, Derek

Twigg, Stephen

Vaz, Valerie

West, Catherine

Whiteford, Dr Eilidh

Whitehead, Dr Alan

Whitford, Dr Philippa

Wilson, Corri

Winterton, rh Dame Rosie

Woodcock, John

Wright, Mr Iain

Zeichner, Daniel

Tellers for the Ayes:

Grahame M. Morris

and

Jeff Smith

NOES

Afriyie, Adam

Aldous, Peter

Allan, Lucy

Allen, Heidi

Amess, Sir David

Andrew, Stuart

Ansell, Caroline

Argar, Edward

Atkins, Victoria

Bacon, Mr Richard

Baker, Mr Steve

Baldwin, Harriett

Barclay, Stephen

Baron, Mr John

Barwell, Gavin

Bellingham, Sir Henry

Benyon, Richard

Beresford, Sir Paul

Berry, Jake

Berry, James

Bingham, Andrew

Blackman, Bob

Blunt, Crispin

Bone, Mr Peter

Borwick, Victoria

Bottomley, Sir Peter

Bradley, Karen

Brady, Mr Graham

Brazier, Mr Julian

Bridgen, Andrew

Brine, Steve

Brokenshire, rh James

Bruce, Fiona

Burns, Conor

Burns, rh Sir Simon

Cairns, Alun

Carmichael, Neil

Cartlidge, James

Cash, Sir William

Caulfield, Maria

Chalk, Alex

Chishti, Rehman

Clark, rh Greg

Clarke, rh Mr Kenneth

Cleverly, James

Clifton-Brown, Geoffrey

Coffey, Dr Thérèse

Collins, Damian

Costa, Alberto

Cox, Mr Geoffrey

Crabb, rh Stephen

Davies, Byron

Davies, Glyn

Davies, Mims

Davis, rh Mr David

Djanogly, Mr Jonathan

Donelan, Michelle

Double, Steve

Dowden, Oliver

Doyle-Price, Jackie

Drax, Richard

Drummond, Mrs Flick

Duddridge, James

Duncan, rh Sir Alan

Duncan Smith, rh Mr Iain

Dunne, Mr Philip

Ellis, Michael

Ellison, Jane

Ellwood, Mr Tobias

Elphicke, Charlie

Eustice, George

Evans, Graham

Fabricant, Michael

Fallon, rh Michael

Fernandes, Suella

Foster, Kevin

Fox, rh Dr Liam

Frazer, Lucy

Freeman, George

Freer, Mike

Fuller, Richard

Fysh, Marcus

Gale, Sir Roger

Garnier, rh Sir Edward

Garnier, Mark

Gauke, Mr David

Ghani, Nusrat

Gibb, Mr Nick

Gillan, rh Mrs Cheryl

Glen, John

Goodwill, Mr Robert

Graham, Richard

Grant, Mrs Helen

Grayling, rh Chris

Green, Chris

Green, rh Damian

Grieve, rh Mr Dominic

Griffiths, Andrew

Gummer, Ben

Gyimah, Mr Sam

Halfon, rh Robert

Hall, Luke

Hammond, Stephen

Hancock, rh Matthew

Hands, rh Greg

Harper, rh Mr Mark

Harrington, Richard

Harris, Rebecca

Hart, Simon

Haselhurst, rh Sir Alan

Hayes, rh Mr John

Heald, Sir Oliver

Heappey, James

Heaton-Harris, Chris

Heaton-Jones, Peter

Henderson, Gordon

Herbert, rh Nick

Hinds, Damian

Hoare, Simon

Hollinrake, Kevin

Hollobone, Mr Philip

Holloway, Mr Adam

Hopkins, Kris

Huddleston, Nigel

Hunt, rh Mr Jeremy

Jackson, Mr Stewart

Javid, rh Sajid

Jayawardena, Mr Ranil

Jenkyns, Andrea

Jenrick, Robert

Johnson, Boris

Johnson, Gareth

Johnson, Joseph

Jones, Andrew

Jones, rh Mr David

Jones, Mr Marcus

Kawczynski, Daniel

Kennedy, Seema

Kirby, Simon

Knight, rh Sir Greg

Knight, Julian

Kwarteng, Kwasi

Latham, Pauline

Leadsom, Andrea

Lee, Dr Phillip

Lefroy, Jeremy

Leigh, Sir Edward

Leslie, Charlotte

Letwin, rh Mr Oliver

Lewis, Brandon

Liddell-Grainger, Mr Ian

Lidington, rh Mr David

Lilley, rh Mr Peter

Lord, Jonathan

Loughton, Tim

Mackinlay, Craig

Main, Mrs Anne

Mak, Mr Alan

Malthouse, Kit

Mann, Scott

Mathias, Dr Tania

May, rh Mrs Theresa

Maynard, Paul

McCartney, Jason

McCartney, Karl

McPartland, Stephen

Menzies, Mark

Merriman, Huw

Metcalfe, Stephen

Miller, rh Mrs Maria

Milling, Amanda

Mills, Nigel

Milton, rh Anne

Mitchell, rh Mr Andrew

Mordaunt, Penny

Morgan, rh Nicky

Morris, Anne Marie

Morris, David

Morris, James

Morton, Wendy

Mowat, David

Murray, Mrs Sheryll

Murrison, Dr Andrew

Neill, Robert

Newton, Sarah

Nokes, Caroline

Norman, Jesse

Nuttall, Mr David

Offord, Dr Matthew

Opperman, Guy

Parish, Neil

Patel, rh Priti

Pawsey, Mark

Penning, rh Mike

Penrose, John

Percy, Andrew

Perry, Claire

Phillips, Stephen

Philp, Chris

Pincher, Christopher

Pow, Rebecca

Prentis, Victoria

Prisk, Mr Mark

Pritchard, Mark

Pursglove, Tom

Quin, Jeremy

Quince, Will

Raab, Mr Dominic

Redwood, rh John

Rees-Mogg, Mr Jacob

Robinson, Mary

Rudd, rh Amber

Rutley, David

Sandbach, Antoinette

Scully, Paul

Selous, Andrew

Shapps, rh Grant

Sharma, Alok

Shelbrooke, Alec

Simpson, rh Mr Keith

Skidmore, Chris

Smith, Chloe

Smith, Henry

Smith, Julian

Smith, Royston

Soames, rh Sir Nicholas

Solloway, Amanda

Soubry, rh Anna

Spelman, rh Mrs Caroline

Spencer, Mark

Stephenson, Andrew

Stevenson, John

Stewart, Iain

Stewart, Rory

Streeter, Mr Gary

Stride, Mel

Stuart, Graham

Sturdy, Julian

Sunak, Rishi

Swayne, rh Mr Desmond

Swire, rh Mr Hugo

Syms, Mr Robert

Thomas, Derek

Throup, Maggie

Timpson, Edward

Tolhurst, Kelly

Tomlinson, Justin

Tomlinson, Michael

Tracey, Craig

Tredinnick, David

Trevelyan, Mrs Anne-Marie

Tugendhat, Tom

Tyrie, rh Mr Andrew

Vaizey, Mr Edward

Vara, Mr Shailesh

Vickers, Martin

Walker, Mr Charles

Walker, Mr Robin

Warburton, David

Warman, Matt

Watkinson, Dame Angela

Wharton, James

Whately, Helen

White, Chris

Whittaker, Craig

Whittingdale, rh Mr John

Wiggin, Bill

Williamson, rh Gavin

Wilson, Mr Rob

Wollaston, Dr Sarah

Wood, Mike

Wragg, William

Tellers for the Noes:

George Hollingbery

and

Margot James

Question accordingly negatived.

14 Mar 2016 : Column 734

14 Mar 2016 : Column 735

14 Mar 2016 : Column 736

14 Mar 2016 : Column 737

New Clause 10

Emissions trading: United Kingdom carbon account

“In section 27 (net UK carbon account) of the Climate Change Act 2008, after subsection (3) insert—

‘(3A) In respect of any period commencing after 31 December 2027, the regulations must not make provision for carbon units to be credited to or debited from the net United Kingdom carbon account on the basis of the number of carbon units surrendered by operators of installations in the United Kingdom pursuant to the European Union Emissions Trading Scheme.’”—(Lisa Nandy.)

Brought up, and read the First time.

Question put, That the clause be read a Second time.

The House divided:

Ayes 229, Noes 275.

Division No. 218]

[

8.8 pm

AYES

Abbott, Ms Diane

Abrahams, Debbie

Ahmed-Sheikh, Ms Tasmina

Ali, Rushanara

Allen, Mr Graham

Arkless, Richard

Austin, Ian

Bardell, Hannah

Barron, rh Kevin

Beckett, rh Margaret

Benn, rh Hilary

Betts, Mr Clive

Black, Mhairi

Blackford, Ian

Blackman-Woods, Dr Roberta

Blenkinsop, Tom

Blomfield, Paul

Boswell, Philip

Bradshaw, rh Mr Ben

Brennan, Kevin

Brock, Deidre

Brown, Lyn

Bryant, Chris

Buck, Ms Karen

Burgon, Richard

Burnham, rh Andy

Butler, Dawn

Byrne, rh Liam

Cadbury, Ruth

Cameron, Dr Lisa

Campbell, rh Mr Alan

Campbell, Mr Ronnie

Carmichael, rh Mr Alistair

Champion, Sarah

Chapman, Douglas

Chapman, Jenny

Coaker, Vernon

Coffey, Ann

Cooper, Julie

Cooper, Rosie

Cooper, rh Yvette

Corbyn, rh Jeremy

Cowan, Ronnie

Cox, Jo

Coyle, Neil

Crausby, Mr David

Creasy, Stella

Cruddas, Jon

Cryer, John

Cummins, Judith

Cunningham, Alex

Cunningham, Mr Jim

Dakin, Nic

Danczuk, Simon

Davies, Geraint

Day, Martyn

De Piero, Gloria

Docherty-Hughes, Martin

Donaldson, rh Mr Jeffrey M.

Donaldson, Stuart Blair

Doughty, Stephen

Dowd, Jim

Dowd, Peter

Dromey, Jack

Dugher, Michael

Durkan, Mark

Eagle, Ms Angela

Edwards, Jonathan

Efford, Clive

Ellman, Mrs Louise

Esterson, Bill

Evans, Chris

Farrelly, Paul

Fellows, Marion

Field, rh Frank

Fitzpatrick, Jim

Fletcher, Colleen

Flint, rh Caroline

Flynn, Paul

Fovargue, Yvonne

Foxcroft, Vicky

Gardiner, Barry

Gethins, Stephen

Gibson, Patricia

Glass, Pat

Glindon, Mary

Godsiff, Mr Roger

Goodman, Helen

Grady, Patrick

Grant, Peter

Gray, Neil

Greenwood, Lilian

Greenwood, Margaret

Griffith, Nia

Hanson, rh Mr David

Harris, Carolyn

Hayes, Helen

Hayman, Sue

Healey, rh John

Hendry, Drew

Hermon, Lady

Hillier, Meg

Hodgson, Mrs Sharon

Hoey, Kate

Hollern, Kate

Hopkins, Kelvin

Hosie, Stewart

Howarth, rh Mr George

Hunt, Tristram

Huq, Dr Rupa

Hussain, Imran

Jarvis, Dan

Johnson, rh Alan

Johnson, Diana

Jones, Graham

Jones, Helen

Jones, Mr Kevan

Jones, Susan Elan

Kane, Mike

Kaufman, rh Sir Gerald

Keeley, Barbara

Kendall, Liz

Kerevan, George

Kinnock, Stephen

Kyle, Peter

Lavery, Ian

Leslie, Chris

Lewell-Buck, Mrs Emma

Lewis, Clive

Long Bailey, Rebecca

Lucas, Caroline

Lucas, Ian C.

Lynch, Holly

MacNeil, Mr Angus Brendan

Mactaggart, rh Fiona

Madders, Justin

Mahmood, Shabana

Malhotra, Seema

Marris, Rob

Marsden, Mr Gordon

Maskell, Rachael

Matheson, Christian

Mc Nally, John

McCabe, Steve

McCaig, Callum

McCarthy, Kerry

McDonagh, Siobhain

McDonald, Andy

McDonald, Stewart Malcolm

McDonald, Stuart C.

McDonnell, John

McGinn, Conor

McGovern, Alison

McInnes, Liz

McKinnell, Catherine

McLaughlin, Anne

McMahon, Jim

Mearns, Ian

Miliband, rh Edward

Monaghan, Carol

Monaghan, Dr Paul

Morden, Jessica

Mullin, Roger

Murray, Ian

Nandy, Lisa

Newlands, Gavin

Nicolson, John

O'Hara, Brendan

Onn, Melanie

Onwurah, Chi

Osamor, Kate

Oswald, Kirsten

Owen, Albert

Paterson, Steven

Pearce, Teresa

Pennycook, Matthew

Perkins, Toby

Powell, Lucy

Qureshi, Yasmin

Rayner, Angela

Reed, Mr Jamie

Reed, Mr Steve

Rees, Christina

Reynolds, Jonathan

Rimmer, Marie

Ritchie, Ms Margaret

Robertson, rh Angus

Robinson, Gavin

Robinson, Mr Geoffrey

Rotheram, Steve

Saville Roberts, Liz

Shah, Naz

Sharma, Mr Virendra

Sheerman, Mr Barry

Sheppard, Tommy

Sherriff, Paula

Siddiq, Tulip

Skinner, Mr Dennis

Slaughter, Andy

Smith, rh Mr Andrew

Smith, Angela

Smith, Cat

Smith, Nick

Smith, Owen

Smyth, Karin

Stephens, Chris

Stevens, Jo

Stuart, rh Ms Gisela

Tami, Mark

Thewliss, Alison

Thomas-Symonds, Nick

Thompson, Owen

Thornberry, Emily

Timms, rh Stephen

Trickett, Jon

Turley, Anna

Twigg, Derek

Vaz, Valerie

Watson, Mr Tom

West, Catherine

Whiteford, Dr Eilidh

Whitehead, Dr Alan

Whitford, Dr Philippa

Wilson, Corri

Winterton, rh Dame Rosie

Woodcock, John

Wright, Mr Iain

Zeichner, Daniel

Tellers for the Ayes:

Grahame M. Morris

and

Jeff Smith

NOES

Afriyie, Adam

Aldous, Peter

Allan, Lucy

Allen, Heidi

Amess, Sir David

Andrew, Stuart

Ansell, Caroline

Argar, Edward

Atkins, Victoria

Bacon, Mr Richard

Baker, Mr Steve

Baldwin, Harriett

Barclay, Stephen

Baron, Mr John

Barwell, Gavin

Bellingham, Sir Henry

Benyon, Richard

Beresford, Sir Paul

Berry, Jake

Berry, James

Bingham, Andrew

Blackman, Bob

Blunt, Crispin

Bone, Mr Peter

Borwick, Victoria

Bottomley, Sir Peter

Bradley, Karen

Brady, Mr Graham

Brazier, Mr Julian

Bridgen, Andrew

Brine, Steve

Brokenshire, rh James

Bruce, Fiona

Burns, Conor

Burns, rh Sir Simon

Cairns, Alun

Carmichael, Neil

Cartlidge, James

Cash, Sir William

Caulfield, Maria

Chalk, Alex

Chishti, Rehman

Clark, rh Greg

Clarke, rh Mr Kenneth

Cleverly, James

Clifton-Brown, Geoffrey

Coffey, Dr Thérèse

Collins, Damian

Costa, Alberto

Cox, Mr Geoffrey

Crabb, rh Stephen

Davies, Byron

Davies, Glyn

Davies, Mims

Davis, rh Mr David

Djanogly, Mr Jonathan

Donelan, Michelle

Double, Steve

Dowden, Oliver

Doyle-Price, Jackie

Drax, Richard

Drummond, Mrs Flick

Duddridge, James

Duncan, rh Sir Alan

Duncan Smith, rh Mr Iain

Dunne, Mr Philip

Ellis, Michael

Ellison, Jane

Ellwood, Mr Tobias

Elphicke, Charlie

Eustice, George

Evans, Graham

Fabricant, Michael

Fallon, rh Michael

Fernandes, Suella

Foster, Kevin

Fox, rh Dr Liam

Frazer, Lucy

Freeman, George

Freer, Mike

Fuller, Richard

Fysh, Marcus

Gale, Sir Roger

Garnier, rh Sir Edward

Garnier, Mark

Gauke, Mr David

Ghani, Nusrat

Gibb, Mr Nick

Gillan, rh Mrs Cheryl

Glen, John

Goodwill, Mr Robert

Graham, Richard

Grant, Mrs Helen

Grayling, rh Chris

Green, Chris

Green, rh Damian

Grieve, rh Mr Dominic

Griffiths, Andrew

Gummer, Ben

Gyimah, Mr Sam

Halfon, rh Robert

Hall, Luke

Hammond, Stephen

Hancock, rh Matthew

Hands, rh Greg

Harper, rh Mr Mark

Harrington, Richard

Harris, Rebecca

Hart, Simon

Haselhurst, rh Sir Alan

Hayes, rh Mr John

Heald, Sir Oliver

Heappey, James

Heaton-Harris, Chris

Heaton-Jones, Peter

Henderson, Gordon

Herbert, rh Nick

Hinds, Damian

Hoare, Simon

Hollinrake, Kevin

Hollobone, Mr Philip

Holloway, Mr Adam

Hopkins, Kris

Huddleston, Nigel

Hunt, rh Mr Jeremy

Jackson, Mr Stewart

Javid, rh Sajid

Jayawardena, Mr Ranil

Jenkin, Mr Bernard

Jenkyns, Andrea

Jenrick, Robert

Johnson, Boris

Johnson, Gareth

Johnson, Joseph

Jones, Andrew

Jones, rh Mr David

Jones, Mr Marcus

Kawczynski, Daniel

Kennedy, Seema

Kirby, Simon

Knight, rh Sir Greg

Knight, Julian

Kwarteng, Kwasi

Lancaster, Mark

Latham, Pauline

Leadsom, Andrea

Lee, Dr Phillip

Lefroy, Jeremy

Leigh, Sir Edward

Leslie, Charlotte

Letwin, rh Mr Oliver

Lewis, Brandon

Liddell-Grainger, Mr Ian

Lidington, rh Mr David

Lilley, rh Mr Peter

Lord, Jonathan

Loughton, Tim

Mackinlay, Craig

Main, Mrs Anne

Mak, Mr Alan

Malthouse, Kit

Mann, Scott

Mathias, Dr Tania

May, rh Mrs Theresa

Maynard, Paul

McCartney, Jason

McCartney, Karl

McPartland, Stephen

Menzies, Mark

Merriman, Huw

Metcalfe, Stephen

Miller, rh Mrs Maria

Milling, Amanda

Mills, Nigel

Milton, rh Anne

Mitchell, rh Mr Andrew

Mordaunt, Penny

Morgan, rh Nicky

Morris, Anne Marie

Morris, David

Morris, James

Morton, Wendy

Mowat, David

Murray, Mrs Sheryll

Murrison, Dr Andrew

Neill, Robert

Newton, Sarah

Nokes, Caroline

Norman, Jesse

Nuttall, Mr David

Offord, Dr Matthew

Opperman, Guy

Parish, Neil

Patel, rh Priti

Pawsey, Mark

Penning, rh Mike

Penrose, John

Percy, Andrew

Perry, Claire

Phillips, Stephen

Philp, Chris

Pincher, Christopher

Pow, Rebecca

Prentis, Victoria

Prisk, Mr Mark

Pritchard, Mark

Pursglove, Tom

Quin, Jeremy

Quince, Will

Raab, Mr Dominic

Redwood, rh John

Rees-Mogg, Mr Jacob

Robinson, Mary

Rudd, rh Amber

Rutley, David

Sandbach, Antoinette

Scully, Paul

Selous, Andrew

Shapps, rh Grant

Sharma, Alok

Shelbrooke, Alec

Simpson, rh Mr Keith

Skidmore, Chris

Smith, Chloe

Smith, Henry

Smith, Julian

Smith, Royston

Soames, rh Sir Nicholas

Solloway, Amanda

Soubry, rh Anna

Spelman, rh Mrs Caroline

Spencer, Mark

Stephenson, Andrew

Stevenson, John

Stewart, Iain

Stewart, Rory

Streeter, Mr Gary

Stride, Mel

Stuart, Graham

Sturdy, Julian

Sunak, Rishi

Swayne, rh Mr Desmond

Swire, rh Mr Hugo

Syms, Mr Robert

Thomas, Derek

Throup, Maggie

Timpson, Edward

Tolhurst, Kelly

Tomlinson, Justin

Tomlinson, Michael

Tracey, Craig

Tredinnick, David

Trevelyan, Mrs Anne-Marie

Tugendhat, Tom

Turner, Mr Andrew

Tyrie, rh Mr Andrew

Vaizey, Mr Edward

Vara, Mr Shailesh

Vickers, Martin

Walker, Mr Charles

Walker, Mr Robin

Warburton, David

Warman, Matt

Watkinson, Dame Angela

Wharton, James

Whately, Helen

White, Chris

Whittaker, Craig

Whittingdale, rh Mr John

Wiggin, Bill

Williamson, rh Gavin

Wilson, Mr Rob

Wollaston, Dr Sarah

Wood, Mike

Wragg, William

Tellers for the Noes:

George Hollingbery

and

Margot James

Question accordingly negatived.

14 Mar 2016 : Column 738

14 Mar 2016 : Column 739

14 Mar 2016 : Column 740

14 Mar 2016 : Column 741

Clause 2

Transfer of functions to the OGA

Amendments made: 48, page 2, line 39, at end insert—

“( ) Schedule 1 to the Oil Taxation Act 1975,”

This amendment adds functions under Schedule 1 to the Oil Taxation Act 1975 to the list of functions that can be transferred to the OGA under clause 2. It is likely to be used to transfer the function of determining oil fields under paragraph 1 of that Schedule.

Amendment 49, page 2, line 41, at end insert—

“( ) Chapter 9 of Part 8 of the Corporation Tax Act 2010,” —(Andrea Leadsom.)

This amendment adds functions under Chapter 9 of Part 8 of the Corporation Tax Act 2010 to the list of functions that can be transferred to the OGA under clause 2. It is likely to be used to transfer the function of determining cluster areas under section 356JD of that Act.

Title

Amendment made: 51, line 8 leave out from “power;” to “and” in line 10.—(Andrea Leadsom.)

This amendment is consequential on the removal of the provision about emission trading schemes from the Bill in Public Bill Committee.

Mr Speaker: Our consideration having been completed, I will now suspend the House for no more than five minutes in order to make a decision about certification. The Division bells will be rung two minutes before the House resumes. Following my certification, the Government will table the appropriate consent motion, copies of which will be made available in the Vote Office and distributed by the Doorkeepers.

8.21 pm

Sitting suspended.

8.25 pm

On resuming

Mr Speaker: I can now inform the House that I have completed certification of the Bill, as required by the Standing Order. I have confirmed the view expressed in my provisional certificate issued on 9 March. Copies of my final certificate will be made available in the Vote Office and on the parliamentary website.

14 Mar 2016 : Column 742

Under Standing Order No. 83M, a consent motion is therefore required for the Bill to proceed. Copies of the motion are available in the Vote Office and on the parliamentary website, and have been made available to Members in the Chamber. Does the Minister intend to move the consent motion?

Andrea Leadsom indicated assent.

Mr Speaker: Under Standing Order 83M(4), the House must forthwith resolve itself into the Legislative Grand Committee (England and Wales).

The House forthwith resolved itself into the Legislative Grand Committee (England and Wales) (Standing Order No. 83M).

[Mrs Eleanor Laing in the Chair]

8.27 pm

The First Deputy Chairman of Ways and Means (Mrs Eleanor Laing): There will now be a debate on the consent motion for England and Wales. I remind hon. Members that all Members may speak in the debate but, if there are Divisions, only Members representing constituencies in England and Wales may vote on the consent motion. I call the Minister to move the consent motion for England and Wales.

Andrea Leadsom: I beg to move,

That the Committee consents to the following certified clause of the Energy Bill [Lords].

Clause certified under Standing Order No. 83L(2) as relating exclusively to England and Wales and being within devolved legislative competence.

Clause 78 of the Bill as amended in Committee (Bill 128).

The consent motion stands in the name of my right hon. Friend the Secretary of State for Energy and Climate Change, as set out in the written ministerial statement tabled on 10 March. Nothing has changed since the Bill was introduced. I urge hon. and right hon. Members to support the consent motion.

Question put and agreed to.

The occupant of the Chair left the Chair to report the decisions of the Committee (Standing Order No.83M(6)).

The Deputy Speaker resumed the Chair, decisions reported.

Third Reading

Queen’s and Prince of Wales’s consent signified.

8.29 pm

The Secretary of State for Energy and Climate Change (Amber Rudd): I beg to move, That the Bill be now read the Third time.

This Government are focused on delivering measures that support our long-term plan for secure, clean and affordable energy supplies. This Bill puts in place key manifesto commitments to achieve those objectives—first, by meeting our commitment to support the development of oil and gas in the North sea. The Bill provides the Oil and Gas Authority with the direction and powers it needs to be an effective regulator and to maximise recovery of resources in the North sea to the benefit of Britain’s energy security. Secondly, the Bill meets our commitments to ending new public subsidies for onshore wind and giving local people the final say on wind farm

14 Mar 2016 : Column 743

applications. In doing so, the Bill will protect bill payers by helping to control the costs to the public of support for renewable energy.

Let me take those in turn, addressing the action we have taken since the Bill’s Second Reading in January, before touching on other measures in the Bill. As I set out on Second Reading, amendments made in the other place sought to expand considerably the objectives of the Oil and Gas Authority. Our view is that this would dilute the focus of the OGA at a crucial time for the oil and gas industry. This House has reinstated the OGA’s original principal objective for maximising economic recovery. Both the industry and the unions are agreed on that. The OGA must have clarity on its primary objective. The Bill as it now stands provides that.

I set out our intention on Second Reading to re-introduce clauses on onshore wind that were removed in the other place. This was a clear Government commitment, and I am pleased to see those provisions put back. Let me be explicit: this Bill enacts a manifesto commitment. Clause 79 helps to implement that commitment to end new public subsidies for onshore wind. Onshore wind has deployed successfully to date, but without control there is a risk of over-deployment beyond the range we have set for 2020—the range that we consider affordable. Over-deployment could add extra costs to consumer bills or reduce the amount of support available to less mature technologies such as offshore wind that need help to bring their costs down, just as public subsidies have brought down the costs of onshore wind. To protect investor confidence, we have inserted clause 80, which sets out in legislation the grace period for those projects meeting certain conditions as of 18 June last year. That allows such projects to continue to seek accreditation under the renewables obligation after the early closure date.

I have also introduced a clause relevant to Northern Ireland. It remains my position that consumers in Great Britain should not bear the cost of Northern Ireland providing additional support to onshore wind. We have been clear about that throughout the process. The intention of the backstop power is to ensure that, should Northern Ireland chose to provide additional support for onshore wind, consumers in Northern Ireland, not Great Britain, will bear the cost.

The Government are committed to the Climate Change Act 2008 and our target to reduce emissions by 80% by 2050. We will meet our obligations and responsibilities by setting the fifth carbon budget by the end of June this year, covering the period 2028 to 2032. As the Committee on Climate Change has said, while we are on course to meet the second and third carbon budgets, the fourth carbon budget will be tough to achieve. We will set out our proposals for meeting our targets in our new emissions reduction plan. Our working assumption is that this will be published at the end of the year. Work on the fifth carbon budget is well under way across Government and has been progressing for over a year.

I understand the intentions of those who have sought to amend the Bill to change the way we count carbon for the purposes of the fifth carbon budget, and of course it is right that we keep our accounting practices under review, but I am afraid that accepting such an amendment to the Bill this far into the fifth carbon budget process would have risked serious delay, at a time when the UK should be showing clear, decisive leadership in the aftermath of the Paris climate change conference.

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Before I conclude, I wish to express my thanks to those who have supported the proper scrutiny of the Bill. First, I give thanks to my team on the Front Bench: the Minister of State, who has expertly steered the Bill through the House, and Lord Bourne for his management of the Bill in the other place. I would like to thank my hon. Friends the Members for Skipton and Ripon (Julian Smith), for Blackpool North and Cleveleys (Paul Maynard) and for South East Cornwall (Mrs Murray) for their excellent contributions and support. We are very grateful.

Let me also express my gratitude to Opposition Members for their measured approach to the scrutiny of the Bill. It is fair to say that there have been moments of disagreement, but we have also agreed on many issues, including the need swiftly to complete the work started in the previous Parliament to implement fully the recommendations of the Wood review. I therefore thank the hon. Members for Wigan (Lisa Nandy), for Southampton, Test (Dr Whitehead), for Norwich South (Clive Lewis), for Aberdeen South (Callum McCaig), and for Coatbridge, Chryston and Bellshill (Philip Boswell) for their considered scrutiny. I am also extremely grateful to my hon. Friends for their participation in our proceedings and in discussions both in and outside the Chamber, which has been very helpful.

During the passage of the Bill, my colleagues and I have listened carefully, and, where appropriate, have made amendments or added details to provisions. However, when it comes to the fundamental purpose of the Bill, we have stood firm on our commitments, and we intend to continue to do so.

8.35 pm

Lisa Nandy (Wigan) (Lab): With the important exception of its provisions relating to the North sea industries, the Bill has absolutely nothing to say about the major energy challenges that we face. It constitutes a missed opportunity to mend our broken energy market, and to make good the promise that the Prime Minister delivered four years ago when he told the House that he would legislate to put every household in Britain on to the cheapest energy tariff. It is extraordinary that, during the Bill’s passage, we have learnt that that broken promise has cost Britain’s households an extra £1.7 billion every year, and that, once again, an Energy Bill led by this Government has let the energy companies off the hook.

Despite our best efforts, the Bill is also silent on the growing risk of power shortages. That is astonishing, given that official figures from National Grid show that next winter Britain could be forced to rely on back-up measures and imports from abroad just to keep the lights on. We sought to address that in Committee, especially in view of the doubt that has been cast over Hinkley Point C, the failure of which would blow a major hole in the Government’s energy policy. Where is the plan B? It is not in this Bill.

Against a background of failure—the failure to get new power stations built—it is a great shame that Ministers rejected our attempts to amend the Bill in order to correct that failure and provide incentives for the building of a number of new gas plants by changing the design of the failing and expensive capacity market scheme. Our proposals would also have had the benefit of ending the absurd practice of increasing household energy bills to provide generous handouts for dirty

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diesel generators. Now, however, there is nothing in the Bill that will help to address the power crunch and secure the investment in the new power stations that we so urgently need.

John Redwood: Will the hon. Lady remind us why, when Labour was in office for all those years, it made no decisions to put in new capacity?

Lisa Nandy: The right hon. Gentleman is wrong. As a matter of fact, he is wrong about a number of other things, but I will stick to the point that he has just raised. It was a Labour Government who initiated the new nuclear process for Hinkley Point C, but, six years after the right hon. Member for Witney (Mr Cameron) became Prime Minister we have seen no further progress. In fact, the only new gas station that has appeared under the present Government was initiated and commissioned by the last Labour Government.

Remarkably, the Bill will actually make our energy security position worse. It seeks to shut down, a year early, a major energy investment scheme that has been helping to ensure that wind farms are built. Wind farms already provide a substantial amount of electricity—enough power for more than 8 million homes every year—but, because of their ideological crusade against green energy, the Government do not want to increase their number even if that means that they are sending our power supply into the red. [Interruption.] Ministers can protest, but the reality is in front of us. It is there for us all to see—not just Labour Members, but Ministers’ constituents, who will pay the price for it. The Government will pursue their proposal even if it means retrospectively blocking projects whose development is well advanced and even if it means ruling out one of the cheapest energy options that are available to us, thus breaking their manifesto promise to cut emissions as cheaply as possible.

The aim of every one of our amendments has been to attract new investment in new energy projects, to create jobs and to improve our energy security, but the Government have rejected all of them. Energy UK, the trade body that represents businesses across the sector, recently called for more clarity from the Government about what was expected from companies on reducing carbon pollution. It stated:

“It is essential the industry gets a clear signal of the focus, direction and speed of travel to 2030 and beyond.”

It is hardly surprising that Energy UK wants more clarity, because while Ministers talk about their action on climate change, they are simultaneously dismantling the clean energy schemes that could help to address the problem. We proposed to amend the Bill, in response to calls from business leaders, by requiring the Secretary of State to offer clarity on the direction and speed of emissions reduction to 2030, but the Government rejected our proposals. Together with other parties from across the House, we tried to close a loophole that will enable Ministers to square this circle through carbon accounting tricks, but that move was also rejected. This all means more uncertainty for investors, rather than less.

I welcome the fact that the Government have accepted the principle, put forward by my right hon. Friend the Member for Doncaster North (Edward Miliband), that

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we must ultimately build a carbon-neutral economy. I welcome the spirit in which they accepted that principle and the basis on which they accepted it, which was that we need to develop a strategy that will give a clear signal to the top businesses that are supporting my right hon. Friend’s campaign as well as to the leading environmental campaigners who have shown that energy policy need not be contentious.

The truth is that few people in this country beyond those on the Conservative Back Benches doubt the need to act on emissions. Only today, NASA reported shocking levels of global warming, and one top scientist said this morning that we are in a “climate emergency now”. Despite the Energy Secretary’s words today, however, people will be left scratching their heads over what exactly the Government’s plan is to make good on their new commitment and on the promises that the Prime Minister made at the historic Paris summit in December.

Let us take carbon capture and storage as an example. The Government’s own advisers say that without this cutting-edge technology the cost of achieving emissions reduction in Britain could double. Some experts say that, without it, making good on the Paris agreement might even be impossible. As my hon. Friend the Member for Stockton North (Alex Cunningham) pointed out, however, the Chancellor has shamefully pulled the rug away from businesses that were on the cusp of pioneering CCS projects in Yorkshire and Scotland. Investment and jobs have gone, and the possibility of a new maritime industry in our North sea has been put on hold. We proposed that a comprehensive new CCS strategy should be adopted within a year to undo the damage caused by that decision but, despite strong cross-party support, our reasonable proposal was rejected.

When the Bill arrived here from the other House, it was in a much better state than we now find it in. That makes it difficult for us to support it this evening, but the low oil price means that our North sea industries need and deserve our support. We have all benefited from the revenues produced by North sea oil in better times, and we owe it to those industries to support them now that times are hard. The Bill contains important measures that act on the recommendations of the Wood review which can support workers in this crucial sector of our economy.

Yesterday, with my support, colleagues in Scottish Labour rightly called for the government to go further and to invest directly in strategically important offshore assets in the North sea. I hope that the Energy Secretary will support that call. The fact is that substantial reserves remain unexploited and it is essential that we work on a cross-party basis to support investment in those untapped opportunities. For that reason alone, we will not oppose the Bill tonight.

However, I say to the Energy Secretary that the poverty of ambition encapsulated in the Bill is increasingly clear, and that it is increasingly untenable to dismantle plan A without putting a plan B in its place, to duck the challenges of the coming century and to set Britain’s face against the opportunities that that century presents. I should like to thank my hon. Friends the Members for Southampton, Test (Dr Whitehead), for Norwich South (Clive Lewis) and for Brent North (Barry Gardiner). Together, we will look to Ministers to do much better than this in future.

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8.44 pm

John Redwood: I welcome the Bill because it attempts to deal with some of the damage that has accumulated in recent years as a result of the policies of the Labour Government, who neglected the need for more energy and security of supply, and some of the European Union’s interventions.

I welcome the cross-party attempts to breathe some life into the North sea industry, which has been crucial over many years. As many have pointed out, it is going through a troubled time and anything that can be done by the Oil and Gas Authority or directly by the Government is to be welcomed. For example, now is a good time to remove the petroleum revenue tax, which is a rather silly, unpleasant tax introduced by the Labour party for internal political reasons near the beginning of activities in the North sea. It yields no revenue at the moment, so it would be a good time to get rid of it to show that we want normal profit and revenue taxes, not super-taxes, on North sea activities when the good times return. I hope that the Chancellor will bear in mind the needs of the industry in his forthcoming Budget, because things could be done on tax to promote more investment against the background of a weak oil price, which is no great incentive for making new things happen.

I hope that the Bill will contribute towards taking security of supply seriously. The Government regularly tell us that they want our country to be secure—an aim that I hope is shared across the Chamber. An important way for a country to become more secure is through controlling its own energy resources. The United Kingdom is a relatively privileged country geographically, because it has substantial reserves of oil, gas and coal. We have recently discovered the likelihood of new gas reserves onshore, which should be available to exploit sensibly. We also have plenty of water around that allows us to have hydro-type renewables, which are genuinely renewable and continuously available, unlike the unreliable wind, about which we had a good debate earlier. As the Government go about implementing the Bill, I trust that they will have security of supply at the forefront of their mind.

George Kerevan (East Lothian) (SNP): Where does the security of supply lie in the Prime Minister flying to Paris to ask the French President to fund a nuclear power station that will supply 7% of our electricity, when France clearly will not do so?

John Redwood: That must be worked out between the contracting parties. I have not been urging them to do that, but I wish them well in whatever negotiations are under way. I accept that if they can find a way of producing relatively sensibly priced power on a continuous basis from a nuclear power station, that has all sorts of advantages for the security of supply. I assume that they will ensure that all the technology and the ability to control, repair and maintain the station will rest in the United Kingdom, because we can have true security only if we control the technology and have the industrial resources to be able to build and mend the facility being created. We must also bear that in mind for weapons procurement. If we want a secure country, we need an industry that can support it and is capable in adversity of seeing us through. We cannot rely on imports for everything, and we are already relying too much on

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imports in the crucial area of energy, so I hope the Bill will help us to stop thinking that we can automatically rely on French electricity and Russian gas indirectly through the European system.

George Kerevan: On that point, after France, the Chancellor of the Exchequer seems bent on handing over the entire British nuclear industry to China.

John Redwood: I trust not. I have not seen all the documents, but I am sure that we will see more of the detail in due course as and when more decisions are taken. If my right hon. Friend the Chancellor is negotiating such a deal, I urge him to ensure that we have control of and an understanding of the technology. I see from the nods from my Front-Bench team that that is exactly what they have in mind. A country does not have secure power if it is dependent on those abroad to maintain a power station and does not understand how to mend it, improve it or make it function at a crucial moment. Of course we need to probe to make sure that the Government are doing the right thing, but we get that security only if we control the technology.

Let me return to the point about security vis-à-vis imports and our own capability. We are becoming too dependent on imported power, and we have to remember that if our imports are to come from the European continent, that area is short of energy in general, and it has a policy to make energy scarce and very expensive. The west of the continent does not get on well with Mr Putin, yet indirectly it relies on his gas, and that is not a strong strategic position to be in. I want our country not to be in any way beholden indirectly to Putin’s gas or to the general network on the continent, which is clearly weakened by the necessity to have Russian supplies in the eastern part of the system. The UK, as an island nation, with access to such riches both onshore and offshore, and with the ability to generate more genuine renewables that are continuously available, should be able to have a secure supply and sufficient capacity in reserve when need arises.

We wish to be a greater industrial power than we are. We are the fifth largest economy in the world but we are very dependent on a very big service sector and our industrial sector has, under Governments of all persuasions in the past 30 years, shrunk as a proportion of it. We still have some great companies and some great technology but we need more of them and we need to broaden the industrial base. In order to have that capability in Britain, so that we can make our own power stations, generators and engines, we need to make sure that we have sufficient and cheap energy to fuel those factories, forges, facilities and blast furnaces.

We meet tonight against the backdrop of our steel industry gravely at risk. One of the main contributory factors to the risk to our steel industry is scarce and dear energy; there are also chronic problems with steel prices and Chinese competition now, but this began with an energy problem. We cannot hope to be one of the big world forces in energy-intensive industries if we do not have more plentiful energy at cheaper prices.

I wish the Bill and the Secretary of State well. The Government must have as their fundamental aim security of supply, because without secure energy a country is very limited in its foreign policy options and has to tailor its diplomacy accordingly. I see us becoming too

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dependent. We wish to correct our balance of payments, and getting into energy surplus would not only be a very good contribution to that aim, but would strengthen our diplomatic and political security. As we wish to reindustrialise, we need more and cheaper energy. We are not going to get that on a diet of wind farms and speculative renewable technologies that are not yet available, and are very expensive and difficult to scale up. We can get that affordable energy if we extract the oil, gas and coal, and process it in an environmentally friendly way to the extent that can be achieved, if we have more gas turbine power stations and more reliable baseload power stations. We are going to leave ourselves vulnerable and insecure if we depend on a combination of European imports and too many wind farms. I therefore say: may the OGA do well, may it find ways of bringing on stream the new reserves we are just discovering and may it find ways of extending the lives of the existing fields and of the pools of talent and expertise we have, particularly in Scotland, where we need them still.

8.53 pm

Callum McCaig: I have learned a lot from this process, and I thank my hon. Friend the Member for Coatbridge, Chryston and Bellshill (Philip Boswell) for helping me to work things out as we have gone along. This has been an interesting process, but I am happy that I will not have to go through it for the first time again.

Throughout the process, as is natural in a political environment, we have focused on that which divides us, and there have been significant and, in some cases, profound divisions on aspects of this Bill. I do not wish to go back over that at this stage, because the discussions we have had repeatedly about onshore wind are a matter of record. I am aware that the Bill will go back to the House of Lords, so I make a final plea to the Secretary of State to look once again at grace periods. We accept that the Government have a mandate to do this, but we disagree with how it is being done and we ask that it be done in the best way possible. If there are concessions to be made in the Lords, please make them and take the possible benefits into account.

We have had some good suggestions and individual contributions from Members from all parts of the House. The Government have said that they are prepared to listen to a number of those suggestions. In fact, generally speaking, there has been a spirit of open-mindedness. The view was expressed that now is not the time for some measures to be put into practice, but the time will come soon, so I hope that we will continue to see that open-mindedness to suggestions, particularly to those from my party about making the most of the opportunities arising from decommissioning. We need to create a stable and sensible platform to ensure that the United Kingdom can develop a carbon capture and storage industry.

I wish to focus on one part of the debate that has received little attention, but which, to my mind, is the most important, and that is the creation of the Oil and Gas Authority. Broadly speaking, there has been unanimous support for that across the House, which is impressive in and of itself, but what is perhaps more impressive is the fact that in Aberdeen and in the north-east of Scotland—and probably the oil and gas industry the

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length and breadth of the United Kingdom—the Oil and Gas Authority is seen as the correct body with the correct tools at its disposal. That will be even more so once this Bill has completed its passage, as the authority will be properly equipped.

There is also tremendous support for Andy Samuel and his team in the work that they are doing, and I wish to pay tribute to him and all his staff in their endeavours. The OGA was envisaged in very different times. The role that Andy Samuel and his team have taken on was not what they expected, and they have taken to it impressively with sheer determination. They have taken the industry with them on a journey that none of them was expecting. The work that they have done, which was not really in their remit, has fostered the collaborative spirit that the industry needs if it is to ride out this time, and that is to be commended. In large part, this industry will survive if those in it work constructively together and stop some of the needless competition that adds unnecessarily to cost merely for the sake of differentiating themselves from their competitors.

The industry was rife with daft practices, by which I mean unnecessary duplication. By bringing people together and facilitating the exchange of ideas in a constructive way, the OGA has a major part to play. It is interesting that it has such support in the House, but it also has the support of the trade unions and the large and small players in the industry, and that is something that needs to continue. I wish the OGA well in its efforts.

We must recognise that the OGA was formed as part of the Wood review, which has also had cross-party support, but both come from different times. The Wood review was commissioned and completed at a time when oil was trading at above $100 a barrel. We cannot expect the creation and the formalisation of the OGA’s powers to be enough to solve the difficulties of the oil and gas industry at this moment in time.

I welcome the comments from the right hon. Member for Wokingham (John Redwood) about the need for fiscal concessions. [Interruption.] I see that the hon. Member for Waveney (Peter Aldous), chair of the all-party group on offshore oil and gas, is seeking to intervene on that point, and I would expect nothing less from him than to be pushing for that too. This is critical. The Oil and Gas Authority will do what it can. Industry is doing what it can. A 40% reduction in costs has been achieved, which is impressive. More needs to be done, but the one thing that has not moved on since last May are the changes to taxation. The suggestion was welcome then, but we must recognise that that was a different time. Oil was selling at about $60 a barrel then as opposed to $40 a barrel now. These are changing times. The oil price has been lower and lower for longer and longer than anyone expected, and to expect the taxation regime from the time of super-profits to work for this basin at this time would be naive at best.

In the Budget on Wednesday the Chancellor will have the opportunity to provide the oil and gas industry with the shot in the arm that it requires. That opportunity cannot be missed.

9 pm

Peter Aldous (Waveney) (Con): As we have heard, this Bill is predominantly about setting up the Oil and Gas Authority. We need to complete this task as a matter of

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urgency. The North sea oil and gas industry is facing significant challenges. There have been 75,000 job losses in the past 15 months and there is a risk that whole communities along the North sea coast could be very badly affected.

The United Kingdom continental shelf is now a mature basin, but the remaining reserves are significant and they are vital to the UK in many different respects. These resources are best managed through a new tripartite approach, with the Oil and Gas Authority, industry and the Treasury working together—the Oil and Gas Authority promoting the maximisation of economic recovery, industry working to deliver efficiencies, building on the good work that it has carried out since 2014, securing a 40% fall in operating costs, and the Treasury. This is a last minute plea to provide the low tax regime that will attract footloose global investment.

The UKCS has so much to offer in terms of promoting energy security in an uncertain world, facilitating the transition to a low-carbon economy and continuing to be the cornerstone of British industry. Perhaps we could have done this better over the past 50 years. To do so now it is essential that the OGA continuously promotes collaboration. That must be ingrained in its DNA. What is needed is not just collaboration between the OGA, industry and the Treasury; it is collaboration between operators, as evidenced by the partnership of Faroe, Petrofac and Eni working together, collaboration between operators and their service providers, building long-term partnerships and learning lessons from other sectors, such as aviation and the car industry, and collaboration with other sectors, in particular offshore wind. I urge the Chancellor to consider introducing measures on Wednesday that encourage such collaboration.

The North sea oil and gas industry has been the leading actor in the country’s post-war economy. In the past we have perhaps taken it for granted and perhaps at times not managed it prudently. If we had our time again, perhaps we would do it differently. It now needs us to act and work for it to ensure that it can move forward. We must not let it wither on the vine. We must grasp the opportunity tonight and the Chancellor must do so on Wednesday to give the industry every opportunity to survive and then thrive. We owe it to those working in the industry and the communities in which they live.

The final chapter of oil and gas exploration on the UKCS must not be a harsh, bleak winter. It must be an Indian summer. Let us pass this Bill tonight and get on with the task of securing that Indian summer.

Question put and agreed to.

Bill accordingly read the Third time and passed, with amendments.

Business without Debate

Delegated Legislation

Motion made, and Question put forthwith (Standing Order No. 118(6)),

Tax Credits

That the draft Tax Credits (Income Thresholds and Determination of Rates) (Amendment) Regulations 2016, which were laid before this House on 14 January, be approved.—(Julian Smith.)

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The House divided:

Ayes 272, Noes 228.

Division No. 219]

[

9.4 pm

AYES

Afriyie, Adam

Aldous, Peter

Allan, Lucy

Amess, Sir David

Andrew, Stuart

Ansell, Caroline

Argar, Edward

Atkins, Victoria

Bacon, Mr Richard

Baker, Mr Steve

Baldwin, Harriett

Barclay, Stephen

Baron, Mr John

Barwell, Gavin

Bellingham, Sir Henry

Benyon, Richard

Beresford, Sir Paul

Berry, Jake

Berry, James

Bingham, Andrew

Blackman, Bob

Blunt, Crispin

Bone, Mr Peter

Borwick, Victoria

Bottomley, Sir Peter

Bradley, Karen

Brady, Mr Graham

Brazier, Mr Julian

Bridgen, Andrew

Brine, Steve

Brokenshire, rh James

Bruce, Fiona

Burns, Conor

Burns, rh Sir Simon

Cairns, Alun

Carmichael, Neil

Cartlidge, James

Cash, Sir William

Caulfield, Maria

Chalk, Alex

Chishti, Rehman

Clark, rh Greg

Clarke, rh Mr Kenneth

Cleverly, James

Clifton-Brown, Geoffrey

Coffey, Dr Thérèse

Collins, Damian

Costa, Alberto

Cox, Mr Geoffrey

Crabb, rh Stephen

Davies, Byron

Davies, Glyn

Davies, Mims

Davis, rh Mr David

Djanogly, Mr Jonathan

Donelan, Michelle

Double, Steve

Dowden, Oliver

Doyle-Price, Jackie

Drax, Richard

Drummond, Mrs Flick

Duddridge, James

Duncan, rh Sir Alan

Duncan Smith, rh Mr Iain

Dunne, Mr Philip

Ellis, Michael

Ellison, Jane

Ellwood, Mr Tobias

Elphicke, Charlie

Eustice, George

Evans, Graham

Fabricant, Michael

Fallon, rh Michael

Fernandes, Suella

Field, rh Mark

Foster, Kevin

Fox, rh Dr Liam

Frazer, Lucy

Freeman, George

Freer, Mike

Fuller, Richard

Fysh, Marcus

Gale, Sir Roger

Garnier, rh Sir Edward

Garnier, Mark

Gauke, Mr David

Ghani, Nusrat

Gibb, Mr Nick

Gillan, rh Mrs Cheryl

Glen, John

Goodwill, Mr Robert

Graham, Richard

Grant, Mrs Helen

Grayling, rh Chris

Green, Chris

Green, rh Damian

Grieve, rh Mr Dominic

Griffiths, Andrew

Gummer, Ben

Gyimah, Mr Sam

Halfon, rh Robert

Hall, Luke

Hammond, Stephen

Hands, rh Greg

Harper, rh Mr Mark

Harrington, Richard

Harris, Rebecca

Hart, Simon

Haselhurst, rh Sir Alan

Hayes, rh Mr John

Heald, Sir Oliver

Heappey, James

Heaton-Harris, Chris

Heaton-Jones, Peter

Henderson, Gordon

Herbert, rh Nick

Hinds, Damian

Hoare, Simon

Hollinrake, Kevin

Hollobone, Mr Philip

Holloway, Mr Adam

Hopkins, Kris

Huddleston, Nigel

Hunt, rh Mr Jeremy

Jackson, Mr Stewart

Javid, rh Sajid

Jayawardena, Mr Ranil

Jenkin, Mr Bernard

Jenkyns, Andrea

Jenrick, Robert

Johnson, Boris

Johnson, Gareth

Johnson, Joseph

Jones, Andrew

Jones, rh Mr David

Jones, Mr Marcus

Kawczynski, Daniel

Kennedy, Seema

Kirby, Simon

Knight, rh Sir Greg

Knight, Julian

Kwarteng, Kwasi

Lancaster, Mark

Latham, Pauline

Leadsom, Andrea

Lee, Dr Phillip

Lefroy, Jeremy

Leigh, Sir Edward

Leslie, Charlotte

Letwin, rh Mr Oliver

Lewis, Brandon

Liddell-Grainger, Mr Ian

Lidington, rh Mr David

Lilley, rh Mr Peter

Lord, Jonathan

Loughton, Tim

Mackinlay, Craig

Main, Mrs Anne

Mak, Mr Alan

Malthouse, Kit

Mann, Scott

Mathias, Dr Tania

May, rh Mrs Theresa

Maynard, Paul

McCartney, Karl

Menzies, Mark

Merriman, Huw

Metcalfe, Stephen

Miller, rh Mrs Maria

Milling, Amanda

Mills, Nigel

Milton, rh Anne

Mitchell, rh Mr Andrew

Mordaunt, Penny

Morgan, rh Nicky

Morris, Anne Marie

Morris, David

Morris, James

Morton, Wendy

Mowat, David

Murray, Mrs Sheryll

Murrison, Dr Andrew

Neill, Robert

Newton, Sarah

Nokes, Caroline

Norman, Jesse

Nuttall, Mr David

Offord, Dr Matthew

Opperman, Guy

Parish, Neil

Patel, rh Priti

Pawsey, Mark

Penning, rh Mike

Penrose, John

Percy, Andrew

Perry, Claire

Phillips, Stephen

Philp, Chris

Pincher, Christopher

Pow, Rebecca

Prentis, Victoria

Prisk, Mr Mark

Pritchard, Mark

Pursglove, Tom

Quin, Jeremy

Quince, Will

Raab, Mr Dominic

Redwood, rh John

Rees-Mogg, Mr Jacob

Robinson, Mary

Rudd, rh Amber

Rutley, David

Sandbach, Antoinette

Scully, Paul

Selous, Andrew

Shapps, rh Grant

Sharma, Alok

Shelbrooke, Alec

Simpson, rh Mr Keith

Skidmore, Chris

Smith, Chloe

Smith, Henry

Smith, Julian

Smith, Royston

Soames, rh Sir Nicholas

Solloway, Amanda

Soubry, rh Anna

Spelman, rh Mrs Caroline

Spencer, Mark

Stephenson, Andrew

Stevenson, John

Stewart, Iain

Stewart, Rory

Streeter, Mr Gary

Stride, Mel

Stuart, Graham

Sturdy, Julian

Sunak, Rishi

Swayne, rh Mr Desmond

Swire, rh Mr Hugo

Syms, Mr Robert

Thomas, Derek

Throup, Maggie

Timpson, Edward

Tolhurst, Kelly

Tomlinson, Justin

Tomlinson, Michael

Tracey, Craig

Tredinnick, David

Trevelyan, Mrs Anne-Marie

Tugendhat, Tom

Turner, Mr Andrew

Tyrie, rh Mr Andrew

Vaizey, Mr Edward

Vara, Mr Shailesh

Vickers, Martin

Walker, Mr Charles

Walker, Mr Robin

Warburton, David

Warman, Matt

Watkinson, Dame Angela

Wharton, James

Whately, Helen

White, Chris

Whittaker, Craig

Whittingdale, rh Mr John

Wiggin, Bill

Williamson, rh Gavin

Wilson, Mr Rob

Wollaston, Dr Sarah

Wood, Mike

Wragg, William

Tellers for the Ayes:

George Hollingbery

and

Margot James

NOES

Abbott, Ms Diane

Abrahams, Debbie

Ahmed-Sheikh, Ms Tasmina

Ali, Rushanara

Arkless, Richard

Austin, Ian

Bailey, Mr Adrian

Bardell, Hannah

Barron, rh Kevin

Beckett, rh Margaret

Benn, rh Hilary

Betts, Mr Clive

Black, Mhairi

Blackford, Ian

Blackman-Woods, Dr Roberta

Blenkinsop, Tom

Blomfield, Paul

Boswell, Philip

Brennan, Kevin

Brock, Deidre

Brown, Lyn

Bryant, Chris

Buck, Ms Karen

Burgon, Richard

Burnham, rh Andy

Butler, Dawn

Byrne, rh Liam

Cadbury, Ruth

Cameron, Dr Lisa

Campbell, rh Mr Alan

Champion, Sarah

Chapman, Douglas

Chapman, Jenny

Coaker, Vernon

Coffey, Ann

Cooper, Julie

Cooper, Rosie

Cooper, rh Yvette

Corbyn, rh Jeremy

Cowan, Ronnie

Cox, Jo

Coyle, Neil

Crausby, Mr David

Creasy, Stella

Cruddas, Jon

Cryer, John

Cummins, Judith

Cunningham, Alex

Cunningham, Mr Jim

Dakin, Nic

Danczuk, Simon

Davies, Geraint

Day, Martyn

De Piero, Gloria

Docherty-Hughes, Martin

Donaldson, rh Mr Jeffrey M.

Donaldson, Stuart Blair

Doughty, Stephen

Dowd, Jim

Dowd, Peter

Dromey, Jack

Dugher, Michael

Durkan, Mark

Eagle, Ms Angela

Edwards, Jonathan

Efford, Clive

Ellman, Mrs Louise

Esterson, Bill

Evans, Chris

Farrelly, Paul

Fellows, Marion

Field, rh Frank

Fitzpatrick, Jim

Fletcher, Colleen

Flint, rh Caroline

Fovargue, Yvonne

Foxcroft, Vicky

Gardiner, Barry

Gethins, Stephen

Gibson, Patricia

Glass, Pat

Glindon, Mary

Godsiff, Mr Roger

Goodman, Helen

Grady, Patrick

Grant, Peter

Gray, Neil

Greenwood, Lilian

Greenwood, Margaret

Griffith, Nia

Hanson, rh Mr David

Harris, Carolyn

Hayes, Helen

Hayman, Sue

Healey, rh John

Hendry, Drew

Hermon, Lady

Hillier, Meg

Hodgson, Mrs Sharon

Hoey, Kate

Hollern, Kate

Hopkins, Kelvin

Hosie, Stewart

Howarth, rh Mr George

Hunt, Tristram

Huq, Dr Rupa

Hussain, Imran

Jarvis, Dan

Johnson, rh Alan

Johnson, Diana

Jones, Graham

Jones, Helen

Jones, Mr Kevan

Jones, Susan Elan

Kane, Mike

Kaufman, rh Sir Gerald

Keeley, Barbara

Kendall, Liz

Kerevan, George

Kerr, Calum

Kinnock, Stephen

Kyle, Peter

Lamb, rh Norman

Lavery, Ian

Leslie, Chris

Lewell-Buck, Mrs Emma

Lewis, Clive

Long Bailey, Rebecca

Lucas, Caroline

Lucas, Ian C.

MacNeil, Mr Angus Brendan

Mactaggart, rh Fiona

Madders, Justin

Mahmood, Shabana

Malhotra, Seema

Marris, Rob

Marsden, Mr Gordon

Maskell, Rachael

Matheson, Christian

Mc Nally, John

McCabe, Steve

McCaig, Callum

McCarthy, Kerry

McDonagh, Siobhain

McDonald, Andy

McDonald, Stewart Malcolm

McDonald, Stuart C.

McDonnell, Dr Alasdair

McDonnell, John

McGinn, Conor

McGovern, Alison

McInnes, Liz

McKinnell, Catherine

McLaughlin, Anne

McMahon, Jim

Mearns, Ian

Miliband, rh Edward

Monaghan, Carol

Monaghan, Dr Paul

Morden, Jessica

Morris, Grahame M.

Mullin, Roger

Murray, Ian

Nandy, Lisa

Newlands, Gavin

Nicolson, John

O'Hara, Brendan

Onn, Melanie

Onwurah, Chi

Osamor, Kate

Oswald, Kirsten

Owen, Albert

Paterson, Steven

Pearce, Teresa

Pennycook, Matthew

Perkins, Toby

Powell, Lucy

Qureshi, Yasmin

Rayner, Angela

Reed, Mr Jamie

Reed, Mr Steve

Rees, Christina

Reynolds, Jonathan

Rimmer, Marie

Ritchie, Ms Margaret

Robertson, rh Angus

Robinson, Gavin

Robinson, Mr Geoffrey

Rotheram, Steve

Ryan, rh Joan

Saville Roberts, Liz

Shah, Naz

Shannon, Jim

Sharma, Mr Virendra

Sheppard, Tommy

Sherriff, Paula

Siddiq, Tulip

Skinner, Mr Dennis

Slaughter, Andy

Smith, rh Mr Andrew

Smith, Angela

Smith, Cat

Smith, Nick

Smith, Owen

Smyth, Karin

Stevens, Jo

Stuart, rh Ms Gisela

Tami, Mark

Thewliss, Alison

Thomas-Symonds, Nick

Thompson, Owen

Thornberry, Emily

Timms, rh Stephen

Trickett, Jon

Turley, Anna

Twigg, Derek

Twigg, Stephen

Vaz, Valerie

Watson, Mr Tom

West, Catherine

Whiteford, Dr Eilidh

Whitehead, Dr Alan

Whitford, Dr Philippa

Wilson, Corri

Winterton, rh Dame Rosie

Woodcock, John

Wright, Mr Iain

Zeichner, Daniel

Tellers for the Noes:

Jeff Smith

and

Holly Lynch

Question accordingly agreed to.