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National Policy Statements

We have had a good debate. It has been brief, but it is part of the process, not the end, and there will be further opportunities to discuss the issues at length when the House returns in the new year. We have had a very good mix, involving national interest and a great tour of the energy opportunities horizon in the constituencies of many Members on both sides of the House. One of the most encouraging outcomes of the debate is the recognition that, throughout the country, people are looking at how we can generate electricity in a new way. Where are the new opportunities? The hot rocks in Cornwall and the cold rocks in Yorkshire—the great opportunities that we find around us—are something that we should truly celebrate as we look at the issue. The hon. Member for Ogmore (Huw Irranca-Davies), who speaks for the Opposition on these matters, talked about who should take the credit, Labour Ministers or Conservative Ministers? I do not think it should be any of us, because it should be our incredibly hard-working officials, who have done almost all the work in getting us to our current position and an outstandingly good job on a very complex set of documents. The hon. Gentleman talked about the delay. We wish that there had not been one, but we recognised that in the previous draft statement there was a flaw in the appraisal of sustainability, and we felt it right to re-interpret that in order to make it stronger and clearer. Because that was so fundamental and in the overarching national policy statement, it seemed right that we should re-consult on all the statements, and it has been absolutely the right way to take the matter forward. On the question of how the process will move forward, we have assumed that there will be a debate about the national policy statements overall and, at the end of the day, votes on the individual statements, but we do not anticipate the scope for hundreds of amendments to them. We have changed the previous Government's decision that there would be no vote at all, because we believe it important that, as part of this democratic process, the House should have the chance to vote on them. The hon. Gentleman asked also about the role of localism. There is a difference between the nationally critical strategic infrastructure, which we deal with in the national policy statements, and the local agenda, where we believe that local authorities should have significantly more power when deciding on the issues that come to them below the 50 MW. Of course, the views of local people, directly and through their local authorities, will be an integral part of individual planning applications, and they will be heard. I shall pick up on some of the other points that have been raised during the debate. My hon. Friend the Member for Folkestone and Hythe (Damian Collins) talked about Dungeness, and from our conversations and his consistent representations, I understand where he is coming from. We recognise that the development of a new nuclear power station at Dungeness would be a continued source of employment and bring economic benefits to the surrounding area, but the Government are obliged by law to consider adverse affects on the integrity of European-protected sites which might be caused by development and to consider alternative sites if those impacts cannot be mitigated. Dungeness is not on the NPS, because we have not yet been persuaded that a new nuclear power station could be built there without having adverse impacts on the integrity of the Dungeness special area of conservation, or that adverse impacts could be avoided or mitigated. The Dungeness SAC is the most important shingle site in Europe, so after careful consideration of the representations made so far our view that Dungeness should be excluded has not changed. The consultation is continuing, and, if additional evidence that changes that conclusion emerges in the course of the meeting that I will have with my hon. Friend and his local authority's representatives, or in written submissions, we will take it into account. The hon. Member for Southampton, Test (Dr Whitehead), who speaks with such authority, raises several issues, but I shall focus on the role of gas. We see a need for gas, but part of the issue is that we have inherited a situation in which new nuclear cannot be built until the end of the decade, because its construction did not start earlier. Further, when it comes to the mass roll-out of renewables, we are third from bottom in the whole EU. We have great ambition but start from a long way behind. Carbon capture and storage on a major commercial scale cannot play a massive role until the end of the decade, although our ambitions for that are high. Gas will therefore have to be part of the process; that is the simple, practical reality. Gas-powered stations can be built quickly; gas requires lower capital expenditure than other technologies, so the write-off period is lower; and importantly it is flexible, so it can back up other, more inherently variable technologies. Of course, the issue of emissions will be critical. That is why we are taking forward the work on the carbon floor price and looking at emissions performance standards and the other measures that will be brought to bear, which investors will need to take into account as they make decisions on these critical investments. The time scale of that is now almost upon us. In the next few weeks, before Christmas, we will set out how the electricity market reform process will work. My hon. Friends took me on a fascinating tour of the country. We heard about the nuclear opportunities in Gloucester and the great training opportunities at the Barnwood EDF facility. My hon. Friend the Member for Gloucester (Richard Graham) is absolutely right to talk about the skills agenda and the supply chain opportunities that we are determined to realise. My hon. Friend the Member for Truro and Falmouth (Sarah Newton) focused on energy security and the issues surrounding the wave hub and deep geothermal resources. I look forward to visiting those facilities with her in due course. My hon. Friend the Member for Brigg and Goole (Andrew Percy) talked about the supply chain and his concerns about power lines, which we completely understand. My hon. Friend the Member for Wells (Tessa Munt) spoke about the Holford rules. We will reflect on the concerns that she expressed, but we must also have clarity about what benefit local areas will achieve from these new investments. That is at the heart of the localism Bill. Thinking about how local communities should benefit in terms of business rates and other direct benefits coming into their communities will completely transform the relationship between these facilities and the communities who host them. That will be an important element as we move forward. The hon. Member for Rutherglen and Hamilton West (Tom Greatrex) speaks with great authority on these issues, and the House benefits from his expertise. He is absolutely right that time is not on our side. The whole purpose of what we are trying to do is to remove the barriers to new investment in these areas. We are absolutely clear that there will be no public subsidy for new nuclear, but we must then remove the other potential barriers—the regulatory barriers—to ensure that that investment can go ahead. On carbon capture and storage, I can absolutely give him the assurance that we are looking to gas as part of the next projects. The market-sounding exercise showed a significant interest in gas, and we will therefore open up this competition to gas plants as well. The hon. Gentleman talked about EMR and the cost of transmission. We have to look at this in a new way. People will not build power plants if they do not believe that they can get their power to market. Historically, power plants were built in the coal centres or outside the big industrial centres; now, we are looking at new places for them to be built. We have to look at this afresh, and I am delighted with the work that Ofgem is doing to look at the best structure for the process. I will leave others to deal with the issue of the location of the green investment bank. Finally, I want to deal with some of the points made by the hon. Member for Ogmore. He mentioned ““what if?”” scenarios. He was right to do that, but we are in that ““what if?”” environment because of the situation that we inherited. After 13 years, we have to get £200 billion of new investment coming into the infrastructure. If more decisions had been made to take forward the role of nuclear and not to have the five-year moratorium, we would be significantly further advanced, and the challenging energy situation in the middle of this decade would not have applied in the same way. My hon. Friend the Member for North Warwickshire (Dan Byles) talked extremely clearly and effectively about the energy security needs that we have to address. It is possible that CCS may not work, or that the price may be too high, but if we do not push the process forward and take advantage of the extraordinary opportunities that we have in this country, we will always be followers and never be leaders. That is why we have been so keen to take forward that technology. The hon. Member for Ogmore suggested that decentralised energy may be unable to deliver as much as we hope, and he may be right. However, we are right to try to look at what can be done locally, although we are doing it against the backdrop of how much more should have been done historically. In the end, this all comes back to the broad portfolio of policies that we are putting forward—the need to have clarity on national planning issues, which is exactly what these documents are about, and the need to have clarity on the market structure that will exist. The hon. Gentleman talked almost as if EMR—the market reform process—was his own idea. Seven months ago, Labour Members were saying that there did not need to be a price on carbon, that there should not be an emissions performance standard, and that we did not need capacity payments. We are having to reinvent a market in order to take us forward and give us the security that we need. This is part of a package. I hope that he is in no doubt about our determination to achieve that and to drive it forward. Let me assure my hon. Friends, and all hon. Members that we totally understand everything that needs to be done to drive forward investment in this area. We will take nothing for granted. Our goal is to make this the most attractive place in the world in which to invest in new energy infrastructure. We are determined to do that and we look for consensus and partnership to take it forward. This debate has been a constructive and important part of that process. I hope we can conclude that we have had a good debate on these issues— Motion lapsed (Standing Order No. 9(3)).