PARLIAMENTARY DEBATE
Energy Industry - 4 September 2024 (Commons/Commons Chamber)

Scotland is at the forefront of this Government’s mission to make Britain a clean energy superpower by 2030. We will headquarter Great British Energy, a new publicly owned clean energy company, capitalised with £8.3 billion, in Scotland. That will help create thousands of jobs, and deliver energy security and lower prices permanently for consumers. Just this week, the sixth allocation for the contracts for difference scheme was announced, with over 130 renewable projects awarded contracts and 20% of those projects based in Scotland.

I welcome the Secretary of State to his position. We watched him for many lonely years as he held the fort on his own. He was always outnumbered, but never outgunned. Will he now use the full firepower of the Scotland Office to convince Cabinet colleagues and industry players of the vital role and potential of the Arnish fabrication yard in Stornoway and its sister yard in Methil, both of which are coming up for sale as part of the going to market of Harland & Wolff? Will he assure workers at the Arnish yard and at Stornoway port that they will play a big role in the renewables future and in GB Energy?

I thank my hon. Friend for that question, and congratulate him on winning the Western Isles. He is Mr Western Isles, and he will be a champion for those islands.

The Government will continue to engage with Harland & Wolff, local MPs and the Scottish Government to monitor the situation and support a resolution that provides long-term certainty for the yards and workforces across the whole UK, with all four yards across the UK being treated as one. The Under-Secretary of State for Scotland, my hon. Friend the Member for Midlothian (Kirsty McNeill), recently visited the Arnish yard. I have visited the Methil yard twice—once before the election and once during the election—and I have regular meetings with the Deputy First Minister on this issue and hope to meet her again in the coming weeks. We will do all we can to protect these yards.

Having spent many years working for my right hon. Friend when he was on the Opposition Benches, may I welcome him to his position as Secretary of State for Scotland? The creation of GB Energy will support 50,000 new jobs across Scotland. It will deliver lower household bills and help us meet our net zero obligations. Given that Glasgow already has a fantastic renewables industry, may I ask what work he has done with his Cabinet colleagues to ensure that GB Energy supports jobs in Glasgow?

I congratulate my hon. Friend on winning his seat in Glasgow South. His question is much better than any that he ever wrote for me.

My right hon. Friend the Secretary of State for Energy Security and Net Zero is due to make an announcement on the location of GB Energy very soon. I regret that, in the interim, I can say no more than that, although I am sure that my hon. Friend’s words of encouragement in respect of Glasgow will not have escaped the attention of my Cabinet colleagues. I can announce exclusively to the House today, Mr Speaker, that GB Energy will be headquartered in Scotland.

My right hon. Friend will be aware that I have been working closely with Unite, GMB and local management at the Methil yard in my constituency during the restructuring process at Harland & Wolff. Does he agree that 200 skilled workers at Methil and those at Arnish have a vital contribution to make to our ambitions to grow our renewable sector, and also that all stakeholders have a vital role in securing the long-term future of these yards?

I congratulate my hon. Friend on winning Glenrothes and Mid Fife. I acknowledge his efforts, and those of many hon. Friends in the House and of people in the local area, advocating for the Methil fabrication yard. The yard, along with many others like it, will have a key role in fulfilling our ambition for Scotland and the UK to become a green energy powerhouse. In addition to GB Energy, there is the national wealth fund, which will help unlock further investment opportunities for ports and heavy industry, and manufacturing companies will have a crucial role to play in creating jobs in our transition to net zero. I have been to the Methil plant twice. It has a world-class workforce, and I can assure them that we will do everything we possibly can to make sure that they have a bright future.

I welcome the Secretary of State to his place and thank him for his generous words about the work of Sir Alister Jack, who was previously in that role. Does the right hon. Gentleman share my consternation this morning that two sanctioned Russian oligarchs now have a share in Harbour Energy, our largest producer of North sea oil and gas? That seems incredible at this time, not least because the company that they are using to have this stake—LetterOne—was forced to divest itself of a broadband company because it was a threat to national security. Can we look again at this decision?

May I welcome the hon. Gentleman to his place and congratulate him on winning his seat? The Foreign Secretary is sitting two seats along from me, and I am sure that he will have heard what the hon. Gentleman said. I am sure that the issue is a concern to everyone in the House, and we will make sure that a written response is given to the hon. Gentleman as soon as possible.

I call the shadow Secretary of State.

The Rosebank oilfield will provide more than £6 billion of investment in UK-based businesses. The Jackdaw oilfield will cater for the energy needs of 1.4 million UK households. This Labour Government are jeopardising all that investment, energy and jobs by dropping the UK Government’s opposition to the judicial review, which aims to block these vital energy projects. Can the Secretary of State seriously tell the 90,000 people whose jobs rely on oil and gas in Scotland that the future of this crucial industry is secure under Labour, when it is his Government’s policy to oppose all new developments?

I thank the shadow Secretary of State for his question, but he should stop scaremongering, given the 90,000-strong workforce in the North sea. Oil and gas will be with us for decades to come. The Finch decision, to which he refers, was something that this Government had to consider very carefully. The Secretary of State has started a consultation on consenting, which will affect Jackdaw and, indeed, Rosebank, and that should conclude within the next six months.