To ask the Prime Minister, whether he read the report, Shale Gas: Rural Economy Impacts, published by the Department for Environment, Food and Rural Affairs in March 2014.

To ask the Prime Minister, whether he read the report, Shale Gas: Rural Economy Impacts, published by the Department for Environment, Food and Rural Affairs in March 2014.

Those decisions must be made by local authorities in the proper way, under the planning regime we have. Personally, I hope that, over time, unconventional gas sites will go ahead, whether in Lancashire or elsewhere, because I want our country to exploit all the natural resources we have. I want us to keep energy bills down and I want us to be part of that revolution, which can create thousands of jobs. I also want to ensure that we can exploit our own gas reserves rather than ship gas from the other side of the world, which has a higher carbon footprint. We should do that, but if the Labour party wants to paint itself into a background of not wanting any unconventional gas at all, it should say so.

Those decisions must be made by local authorities in the proper way, under the planning regime we have. Personally, I hope that, over time, unconventional gas sites will go ahead, whether in Lancashire or elsewhere, because I want our country to exploit all the natural resources we have. I want us to keep energy bills down and I want us to be part of that revolution, which can create thousands of jobs. I also want to ensure that we can exploit our own gas reserves rather than ship gas from the other side of the world, which has a higher carbon footprint. We should do that, but if the Labour party wants to paint itself into a background of not wanting any unconventional gas at all, it should say so.

The hon. Gentleman is making a slightly odd comparison. We have taken away the unnecessary subsidy for onshore wind, given that it is now a mature technology, and we have a sensible planning system so that unconventional gas can go ahead under very strict environmental conditions. I will tell him what I want for Blackpool. I want Blackpool to be the centre of expertise and excellence for this industry. I want the jobs, the apprenticeships and the training rather than to see things stuck, which is what he wants.

The hon. Gentleman is making a slightly odd comparison. We have taken away the unnecessary subsidy for onshore wind, given that it is now a mature technology, and we have a sensible planning system so that unconventional gas can go ahead under very strict environmental conditions. I will tell him what I want for Blackpool. I want Blackpool to be the centre of expertise and excellence for this industry. I want the jobs, the apprenticeships and the training rather than to see things stuck, which is what he wants.

I did look into the issue, and I do not want to give the hon. Gentleman an inaccurate answer so I will go and check on the action taken after that meeting and see what I can tell him.

I did look into the issue, and I do not want to give the hon. Gentleman an inaccurate answer so I will go and check on the action taken after that meeting and see what I can tell him.

What I want to see is, obviously, a robust regulatory and environmental permissions regime, which I believe we have. I also want us to get on with recovering unconventional gas because I think the greatest

proof of how safe this technology is and how good it could be for jobs and energy costs in our country is to demonstrate where it is actually working in some wells. My fear is that many in the other place, and indeed in this place, want to cover this new industry with regulation so that it simply does not go ahead.

What I want to see is, obviously, a robust regulatory and environmental permissions regime, which I believe we have. I also want us to get on with recovering unconventional gas because I think the greatest

proof of how safe this technology is and how good it could be for jobs and energy costs in our country is to demonstrate where it is actually working in some wells. My fear is that many in the other place, and indeed in this place, want to cover this new industry with regulation so that it simply does not go ahead.

My right hon. Friend makes an important point. It is good news that, in the north-west, we have seen the claimant count in his constituency come down by 40% in the past year. If we want to sustain the increase in employment and sustain our economic growth, however, we should not hold ourselves back from new sources of energy, including unconventional gas. It is striking that the United States has something like 100,000 unconventional gas wells, whereas there are only about 100 in the whole of Europe. We have about three quarters as much unconventional gas across the

EU as there is in America, and I do not want us to miss out on this. It could help to deliver more competitive energy prices, it will help to keep our economy and our industry competitive, and I think it is vital for the future of our country.

My right hon. Friend makes an important point. It is good news that, in the north-west, we have seen the claimant count in his constituency come down by 40% in the past year. If we want to sustain the increase in employment and sustain our economic growth, however, we should not hold ourselves back from new sources of energy, including unconventional gas. It is striking that the United States has something like 100,000 unconventional gas wells, whereas there are only about 100 in the whole of Europe. We have about three quarters as much unconventional gas across the

EU as there is in America, and I do not want us to miss out on this. It could help to deliver more competitive energy prices, it will help to keep our economy and our industry competitive, and I think it is vital for the future of our country.

To ask the Prime Minister if he will take steps to establish a Cabinet Committee chaired by the Chancellor of the Exchequer to direct and co-ordinate policy on the development of shale gas.

To ask the Prime Minister if he will take steps to establish a Cabinet Committee chaired by the Chancellor of the Exchequer to direct and co-ordinate policy on the development of shale gas.

My hon. Friend is absolutely right to raise that issue and make the remarks that he does. I think that shale has huge potential for our country. If we recovered just 7% of the Bowland shale reserves, that would provide us with gas in this country for 30 years. We must clearly do a far better job, however, of explaining the benefits to communities, of working with them on that and of talking frankly about the process. A huge number of myths are being put around to frighten people about shale gas extraction whereas, as we can see in the United States, it can be extracted safely and cleanly, providing effective low-cost and green energy for our homes and businesses and making our country more competitive at the same time.

My hon. Friend is absolutely right to raise that issue and make the remarks that he does. I think that shale has huge potential for our country. If we recovered just 7% of the Bowland shale reserves, that would provide us with gas in this country for 30 years. We must clearly do a far better job, however, of explaining the benefits to communities, of working with them on that and of talking frankly about the process. A huge number of myths are being put around to frighten people about shale gas extraction whereas, as we can see in the United States, it can be extracted safely and cleanly, providing effective low-cost and green energy for our homes and businesses and making our country more competitive at the same time.

My hon. Friend makes an important point. What we have set out is the overall level of financial support: £100,000 when a well is dug; up to £10 million, theoretically, because of the 1% of revenue that will be paid; and then this absolutely vital point about 100% retention of business rates, which could have a very significant effect for local government finance. The point that she makes is how that is divided up between parishes, districts and counties, and whether one looks at individual payments to individual households who might be inconvenienced. I think that we should look at very local options, making sure that parishes and individuals will benefit. That is something that colleagues will want to discuss and think about, so that we can get this right and help this industry to take off.

My hon. Friend makes an important point. What we have set out is the overall level of financial support: £100,000 when a well is dug; up to £10 million, theoretically, because of the 1% of revenue that will be paid; and then this absolutely vital point about 100% retention of business rates, which could have a very significant effect for local government finance. The point that she makes is how that is divided up between parishes, districts and counties, and whether one looks at individual payments to individual households who might be inconvenienced. I think that we should look at very local options, making sure that parishes and individuals will benefit. That is something that colleagues will want to discuss and think about, so that we can get this right and help this industry to take off.

I thought that the proposal from some Members was that it should be 10% of profits. My point is that 1% of revenues, which obviously start running the moment shale gas starts coming out of the ground, could well be a better offer. I am very happy to sit down with anybody to discuss the issue, because I think that shale is so important for the future of our country. The point I would make, having been on Monday to see the oil platforms that are already on the Nottinghamshire-Lincolnshire border, is that those went ahead without any of the sorts of community benefits that we are promising with shale: £100,000 when a well is dug, before any gas has reached the surface; 1% of revenues, which could be between £7 million and £10 million for a typical fracking well; and 100% retention of business rates, which for a set of wells could be £1.7 million, or even £2 million, for a local authority. Hon. Members should think about how much council tax a small district or metropolitan authority raises and consider the difference that £1.7 million or £2 million in revenue could make. By all means let us talk about the facts and figures and what we can do, but we also need to persuade people that this can go ahead without the environmental damage or the problems that people are worried about. Those are the concerns more than anything.

I thought that the proposal from some Members was that it should be 10% of profits. My point is that 1% of revenues, which obviously start running the moment shale gas starts coming out of the ground, could well be a better offer. I am very happy to sit down with anybody to discuss the issue, because I think that shale is so important for the future of our country. The point I would make, having been on Monday to see the oil platforms that are already on the Nottinghamshire-Lincolnshire border, is that those went ahead without any of the sorts of community benefits that we are promising with shale: £100,000 when a well is dug, before any gas has reached the surface; 1% of revenues, which could be between £7 million and £10 million for a typical fracking well; and 100% retention of business rates, which for a set of wells could be £1.7 million, or even £2 million, for a local authority. Hon. Members should think about how much council tax a small district or metropolitan authority raises and consider the difference that £1.7 million or £2 million in revenue could make. By all means let us talk about the facts and figures and what we can do, but we also need to persuade people that this can go ahead without the environmental damage or the problems that people are worried about. Those are the concerns more than anything.