St David’s Day — House of Commons, 2019-02-28
Topic: Energy
Albert Owen (Labour, Centre-left): I will give Ministers the opportunity to speak for themselves, but I have had compliments from both of them on the way Wales played on Saturday; it absolutely united them I want to talk about energy, the north Wales economy and indeed Brexit, but I want to start by paying tribute to my late good friend Paul Flynn. As chairman of the Welsh parliamentary Labour party, I officially send our condolences to Sam and her family, and their friends from the Newport area, many of whom I know and who have told me great stories. Paul was a unique man; he was a great campaigner, as many people have said. I remember my other great late friend Rhodri Morgan—he was also of the class of ’87—saying to me, "If you haven’t had an argument with Paul, you’ve never really known Paul." That was his nature; he was very astute at putting his arguments and not afraid to hold to his opinions. Those are my memories of Paul, and I will miss him very dearly The Secretary of State and others on the Treasury Bench will know that I have taken an interest in energy for many years, and I have taken this subject up because I believe that Wales has the great potential to be a world leader in the low-carbon economy and to lead the way on many projects. When I talk about a mixed rich energy diversity I am talking about renewables, nuclear and also energy efficiency. The innovation can come from Wales; we have a skill base there, we have natural resources and we have the potential to be a world leader I have written a booklet—you may have a copy after this debate, Madam Deputy Speaker—on resetting the energy button, because over the last few years we have not focused attention as we should. Prior to 2009 there was a great consensus across the House on a way forward and how we would reduce carbon emissions. I accept that the great world recession had an impact on that, but there has been disjointed policy from the UK Government since then. We have had reform Bills—electricity reform, market reform, retail reform—but we have not had a coherent policy. Wales is suffering as a consequence of that, because many major projects were earmarked for Wales, with lots of time and effort from the private sector, the Welsh Government and the UK Government, yet the end product has not materialised as it should have I have argued for many years that we need a proper formula, particularly for first-of-a-kind energy projects, for example in marine technology, because the auction system—the contracts for difference—that the Government have put in place does not help new forms of technology break through. We have great tidal resources around the coast of the UK and Wales—the west coast has some of the best tidal resources—and we need to work together to make things happen The Secretary of State has been very good with me in recent weeks and we are working together to get a new formula, but now we want not only a formula but an action plan. We want to be able to deliver on these projects, because we need to get the carbon emissions down and to meet our targets. We will not do that by prevaricating or by blaming the private sector for its financing. We need proper Government investment, in financial as well as policy terms. We should not leave this to the auctions; we need coherent planning I also want to talk about the job losses that we have seen in north Wales in recent times. I mentioned this yesterday, and I am grateful for the response that I received from the Under-Secretary of State for Wales, the hon. Member for Selby and Ainsty (Nigel Adams). Rahau Plastics in my constituency town of Amlwch is going through a consultation programme and could lose 104 jobs. It is an international company. It is a family company that is based predominantly in Bavaria, but it has global reach. It has been in Amlwch for 40 years, but it is consolidating the work that is done at that plant in central Europe There is a pattern developing, whereby international companies that have their bases across continental Europe and the United Kingdom are consolidating their workforces and their businesses in the European Union, because they know that the single market delivers. They are very polite about it and say that this is not simply down to Brexit, but I say to the Secretary of State that we cannot have companies based in countries such as Japan, which have direct agreements with the European Union, pulling out of Britain like this. Our workforce, our commitment and our end product are all good, but there is a fault, and that fault is the uncertainty of Brexit, pure and simple I want to move on to the North Wales growth bid. I congratulate the Secretary of State on working with the Welsh Government and local government on this important issue, but I want to say to him directly that there should be greater input by north Wales MPs. Simply leaving it to the councils is not good enough, because their resources are being cut and they have different responsibilities. As north Wales MPs, we have a strong mandate here and we want to work with the Treasury, the Government, the Welsh Government and local government to make this deal happen. This is not about being top-down; it is about working in partnership to deliver for the people of north Wales Following the suspension of the Wylfa Newydd power station, many of the projects are now in jeopardy. The Secretary of State and the Secretary of State for Business, Energy and Industrial Strategy are joining us for a meeting next week to discuss this. It is hugely important that the gap created by the suspension of that £20 billion project should be filled. It could be filled with quality jobs in renewable energy, in improving our rail infrastructure and in many more projects. I want to work with the Secretary of State in focusing on that, but I want a commitment from him that he will fight our corner in Whitehall and that we will get more money as a consequence of that suspended project. The private investment that has been lost needs to be topped up, and that could be done through the mechanism of the North Wales growth bid. The Welsh Economy and Transport Minister, Ken Skates, has said that he would match any moneys that come from the United Kingdom Government. We want to see action from this Government, not just warm words I understand the time constraint on this debate, but I want to mention Brexit very briefly. I have been arguing in this House for more than two years about the Irish dimension to Brexit and its effect on the port at Holyhead. The former Secretary of State just said, "Don’t worry, it will be simple", but we are coming up to the eleventh hour and we are still arguing about the Irish backstop. If we treat one part of the United Kingdom—that is, Northern Ireland—differently and allow it to have alignment with the single market and the customs union, that will have an impact on Welsh ports as well as on ports in Scotland and England. Those countries will lose out as a consequence I want this message to go out from Wales to the Prime Minister: look at what is happening in Wales, listen to the Welsh Assembly and to Welsh MPs, do not be blinkered and do not pander to one side of your party. Start speaking up for Wales, because it is an integral part of the United Kingdom. We are pioneers and leaders, and I am proud to speak in this debate.