Oil and Gas Producers: Windfall Tax — House of Commons, 2022-02-01
Topic: Energy
Janet Jessica Daby (Labour, Centre-left): It is a real honour to speak in the debate. The hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) said that the Labour party is not the party of business, and I refute that and disagree with him, considering that many businesses up and down the country are very worried about the increase in energy prices and how that will continue to affect them. In my constituency and across the borough of Lewisham, we have among the highest numbers of self-employed people in London, and they are well supported by the local council I support the motion, which is all about the cost of living and how it will affect families. We have a seen a global rise in wholesale energy prices that has already led to 27 energy suppliers going bust last year. Energy prices are at their highest levels for the last three decades. Customers have seen increases in their bills that have largely been protected by the energy price cap. The chair of the Lewisham Pensioners’ Forum, Bridgit Sam-Bailey, recently spoke on BBC News about her personal experience of rising fuel prices. She explained the misery of suffering in her home due to increases in fuel prices that she can no longer afford from her pension. She said that she often stays in bed to keep warm and only heats one room. She no longer has the financial freedom that she used to have. We have heard other such stories today, and they are indeed heartbreaking. Her situation is not unusual. So many other people are experiencing a diminished quality of life. Surely the Government do not wish that for our older generation. Older people should be treated with respect and dignity. Do the Government really view such experiences as acceptable Energy bills are due to rise again, and that will affect mainly older people, vulnerable people and low wage earners. Recently, I met a lady in her home who was wearing a winter coat and a blanket to keep warm. From the outside of her semi-detached house, nobody could identify the misery and deprivation that she was experiencing from poverty and lack of heat As for children and young people, the Government need to consider how being cold can affect children’s development and their ability to learn, play and grow. It does affect them. It is harmful to them to be cold and it is a sign of poverty. The rise in fuel prices is driving people and families deeper into poverty. When a child is in poverty, they experience deprivation. If that continues, their family becomes a family in need and they will go on to need support from social services and other public services, perhaps leading to a cascade of situations in which they will need support According to Maslow’s hierarchy of needs, the most basic needs are food, water, warmth and rest. People’s most basic need for warmth is not currently being met. For some people suffering illnesses such as sickle cell disease, lack of sufficient warmth can bring on a sickle cell crisis and lead to hospitalisation, organ damage and, at worst, death. Other problems arise from damp and rot after prolonged loss of heat in the home, and those can also affect children. The Government must not bury their head in the sand. Deprivation of warmth is a serious issue Our country faces a cost of living crisis and a growing strain on businesses, with petrol, food and energy bills sky-rocketing. What will the Government do about that? What will they do to prevent further hikes in gas prices, as those can be prevented by the Government? According to the energy sector specialist Cornwall Insight, bills could rise by 46%, from £1,277 a year under the current price cap to £1,865 a year. When faced with a crisis, this Government shift the brunt of the burden on to the most vulnerable. To fix the social care crisis, they decided to increase national insurance contributions, which will disproportionately hit working families, young people and businesses trying to create more jobs. Despite pressure from those on his own Benches, the Prime Minister will not halt those plans Faced with an energy crisis, the Government now have an opportunity to break that trend and find sensible solutions rather than dipping into the pockets of those only trying to get by. As energy bills soar for consumers, natural gas operators in the North sea will rake in their biggest profits in over a decade. UK-based natural gas companies such as BP and Shell are expected to record profits of $20 billion. A one-off tax on those companies makes sense This is not unheard of; Thatcher introduced a windfall tax on North sea operators, as did Blair. Will the Secretary of State for BEIS do the same? Wales has stepped up to help those who are struggling, and France and Denmark are likely to follow suit, but we have seen dither and delay from this Government. I remind the Secretary of State that this all reveals how deeply unreliable fossil fuels such as natural gas are. Even natural gas in our backyard is tied to global prices. We need a safer long-term plan A green industrial revolution guarantees greater home-grown energy, decreasing our dependence on unreliable fossil fuels and better protecting us from external price shocks. Will the Secretary of State therefore also promise to increase capital investment in renewable technology in order to keep my constituents’ energy costs down, now and in the future?