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Unallotted backbench debate. Agreed to on question.

Lead member
Lord Evans of Rainow
Answering member
Anna Soubry
Department
Department for Business, Innovation and Skills
Type
Backbench debates
Date
10 March 2016
Reference
607 cc222-242WH
House
House of Commons

I beg to move,

That this House has considered energy intensive industries.

It is a privilege to serve under your chairmanship, Mr Chope.

Energy-intensive industries are defined in the 2000 EU regulations on pollution prevention and control and further directives as companies whose energy intensity is more than 3%. This means that their...

Member
Lord Evans of Rainow (Conservative)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 cc223-4WH
House
House of Commons

I welcome the announcement in the autumn statement last year that energy-intensive industries will be exempt from the policy costs of the renewables obligation and feed-in tariffs, which will ensure that they have long-term certainty and remain competitive. Energy-intensives whose electricity costs exceed 20% or more of their gross value...

Member
Lord Evans of Rainow (Conservative)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 c224WH
House
House of Commons

Is my hon. Friend aware that the shale gas industry has revolutionised the fortunes of the chemicals industry in the US? According to PricewaterhouseCoopers 1 million jobs will be created in manufacturing by 2025 as a direct result of shale gas energy and associated chemical feedstocks.

Member
Kevin Hollinrake (Conservative)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 c224WH
House
House of Commons

I am grateful to my hon. Friend, who has certainly made his mark on this place since he was elected. He is right; the east coast of America is an example of how countries can reinvent themselves as manufacturing nations.

The chemical industry is manufacturing’s No. 1 export earner, adding almost...

Member
Lord Evans of Rainow (Conservative)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 cc224-5WH
House
House of Commons

It is a pleasure to serve under you, Mr Chope. I congratulate my hon. Friend and neighbour the Member for Weaver Vale (Graham Evans) on securing the debate, which is the second this week on energy-intensive industries. We did ceramics earlier in the week, so we are giving it a...

Member
David Mowat (Conservative)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 cc225-6WH
House
House of Commons

While the hon. Gentleman is on that point, can I tell him that my father worked for more than 20 years at Llanwern just a few miles down the road from Port Talbot? I was fortunate enough to be employed there for six months as a young man and came...

Member
Lord Brennan of Canton (Labour)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 c226WH
House
House of Commons

The shadow Minister has validated himself in the debate. They are a sight that will always be remembered—I will certainly always remember it. I did not spend six months there, but I did work there.

Many industries have Ministers in this place who are directly responsible for them. We have a...

Member
David Mowat (Conservative)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 cc226-9WH
House
House of Commons

The hon. Gentleman makes, as ever, an expert speech. That kind of thinking is wrong because whatever the economic theory of comparative advantage says—having taught it, I know what it says—it is ultimately in our country’s strategic interest to maintain a steel-making capacity. Does he agree?

Member
Lord Brennan of Canton (Labour)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 c227WH
House
House of Commons

I completely agree. That is precisely why that sort of thinking must not gain currency. However, let me be quite clear: it is out there.

I want this to be a debate and to talk about the facts, but that thinking is out there in parts of the Labour party as...

Member
David Mowat (Conservative)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 cc227-230WH
House
House of Commons

It is a pleasure to serve under your chairmanship, Mr Chope. I congratulate the hon. Member for Weaver Vale (Graham Evans) on securing this important debate.

Support for energy-intensive industries is a matter that I care a great deal about. My hon. Friend the Member for Motherwell and Wishaw (Marion Fellows)...

Member
Margaret Ferrier (Scottish National Party)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 c230WH
House
House of Commons

The hon. Lady and I both sit on a newly formed all-party parliamentary group on ceramics. Does she agree that not only the steel industry but industries such as the ceramics industry face huge challenges? There are a number of firms in those industries in my constituency.

Member
Wendy Morton (Conservative)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 c230WH
House
House of Commons

I thank the hon. Lady for that intervention, and I will come to ceramics later, if she will bear with me.

The Scottish Government’s steering group specifically helps them to deliver their emissions reductions under the EU emissions trading system and to meet legal obligations such as the UK climate change...

Member
Margaret Ferrier (Scottish National Party)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 cc230-1WH
House
House of Commons

I was interested to hear the hon. Lady mention the figure of 15% being made by that family business. Does she have the figure for how much is imported from outside the United Kingdom?

Member
Lord Evans of Rainow (Conservative)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 c231WH
House
House of Commons

The figure I have is that 85% of bricks are imported from outside Scotland, but I am not sure how many are within the UK or the EU. I can certainly get back to the hon. Gentleman about that.

If we are serious about long-term and sustainable economic growth, companies such...

Member
Margaret Ferrier (Scottish National Party)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 c231WH
House
House of Commons

It is interesting that the hon. Lady has chosen the example of Sweden, because along with France it has, as she says, the lowest electricity prices in Europe, but both are characterised by a very high proportion of nuclear power. That is the reason.

Member
David Mowat (Conservative)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 c231WH
House
House of Commons

I thank the hon. Gentleman for his intervention.

The hon. Member for Weaver Vale stated that energy-intensive industries are foundation industries. In the UK they account for 4% of gross value added and employ 200,000 people, who are highly skilled, high-wage and very important to the UK economy and especially to...

Member
Margaret Ferrier (Scottish National Party)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 c232WH
House
House of Commons

I completely accept that. The point I was trying to make was that whenever we discuss climate policy, those MPs press for us to go further unilaterally, which is a little odd in the context of the industries and communities they represent. I completely accept that they care passionately about...

Member
David Mowat (Conservative)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 c232WH
House
House of Commons

I thank the hon. Gentleman for his intervention.

Finally, the hon. Gentleman wanted to know which industries will benefit from China gaining market economy status. We have heard many times from the Minister why she feels it would be okay to give China market economy status, and I am sure she...

Member
Margaret Ferrier (Scottish National Party)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 cc232-3WH
House
House of Commons

I congratulate the hon. Member for Weaver Vale (Graham Evans) on securing this debate. It was not so long ago that we debated similar issues in this Chamber, led by the hon. Member for Thirsk and Malton (Kevin Hollinrake), and we had similar discussions about some of the issues relating...

Member
Lord Brennan of Canton (Labour)
Type
Proceeding contributions
Date
10 March 2016
Reference
607 cc233-4WH
House
House of Commons