Energy Policy

M4 – in the House of Commons at 11:30 am on 3 July 2013.

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Photo of Craig Whittaker Craig Whittaker Conservative, Calder Valley 11:30, 3 July 2013

What discussions he has had on the effect of the Government's energy policies on the Welsh economy.

Photo of Stephen Crabb Stephen Crabb The Parliamentary Under-Secretary of State for Wales, The Lord Commissioner of HM Treasury

This Government’s energy reforms are designed to attract substantial investment in energy infrastructure throughout the UK, including in Wales. I believe that Wales has a key and significant role to play in meeting the challenge of creating a low-carbon energy network, fit for the 21st century.

Photo of Craig Whittaker Craig Whittaker Conservative, Calder Valley

Does the Minister agree that last week’s announcement on contracts for difference provides future certainty for all investors?

Photo of Stephen Crabb Stephen Crabb The Parliamentary Under-Secretary of State for Wales, The Lord Commissioner of HM Treasury

I certainly do agree. That announcement and other spending review announcements show that we are a serious Government—serious about attracting the investment that Wales and the UK need to keep the lights on and upgrade our energy networks.

Photo of David Hanson David Hanson Shadow Minister (Home Affairs)

How many green deal starts have there been in Wales? Will the Minister reflect on the fact that there are likely to be very few, and that businesses told him so?

Photo of Stephen Crabb Stephen Crabb The Parliamentary Under-Secretary of State for Wales, The Lord Commissioner of HM Treasury

I am surprised that the right hon. Gentleman tries to criticise the green deal programme. We are in the early weeks of a 20-year programme that will lead to real improvements in energy efficiency and help to tackle fuel poverty in Wales. Perhaps he would like to come with me on a visit to the British Gas green deal academy in Tredegar, where he will see the value of the green deal for Wales.

Photo of Hywel Williams Hywel Williams Shadow PC Spokesperson (Education), Shadow PC Spokesperson (Work and Pensions), Shadow PC Spokesperson (Health), Shadow PC Spokesperson (International Development)

It is intended that 10% of UK energy consumption will be carried across Ynys Môn and the Menai straits on pylons. At the same time, electricity from Scotland to England will not go through the Lake district, but be carried undersea to the Wirral and across the Wirral underground. Why the difference?

Photo of Stephen Crabb Stephen Crabb The Parliamentary Under-Secretary of State for Wales, The Lord Commissioner of HM Treasury

As I understand the project across the Menai straits, four options are being looked at and subsea is one of them. I shall certainly discuss the matter with National Grid, as I recognise the significant concern, and I will follow up with the hon. Gentleman in due course.

Photo of Nia Griffith Nia Griffith Shadow Minister (Wales)

The Welsh steel industry could have to wait yet another year for the Government to get state aid clearance for the energy-intensive industries package—a package that would not have been necessary had the Government not gone it alone and introduced such a high carbon floor price. What can the Minister do to secure interim support to prevent energy-intensive industries in Wales from being forced to run down production and lay off workers?

Photo of Stephen Crabb Stephen Crabb The Parliamentary Under-Secretary of State for Wales, The Lord Commissioner of HM Treasury

I and the Minister of State, Department of Energy and Climate Change, my right hon. Friend Michael Fallon, recently met representatives of different industries in south and north Wales for a round table to discuss precisely that question. Those present included Tata Steel and Celsa Steel, large industrialists from south Wales, and Toyota from north Wales. We are looking at specific solutions that will keep the Welsh economy powering ahead.