Peter Kyle is the Labour MP for Hove and Portslade.
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It is clear that the ceramics industry faces significant challenges, but despite those, the industry has great potential to be forward-facing as we transition towards a decarbonised economy. To unlock the industry’s potential and help support ceramics firms, the Government have recently announced a £120 million ceramics industry support scheme. That is a substantial intervention, focused on the needs of the ceramics sector. The scheme will back capital investment, and energy efficiency and decarbonisation projects, as well as providing operational support for successful applicants to the fund who require additional help to manage any increased ongoing costs. Ceramics are crucial for our modern way of living, from house building to smartphone screens, from plates to planes, and from engines to mugs and space shuttles, as well as all the other products that my hon. Friend the Member for Stoke-on-Trent Central mentioned.
Full debate: British Industry Supercharger: Ceramics
The ceramics industry deserves support, and this Government have demonstrated that through the £120 million package. We have chosen to deliver support through the ceramics industry support scheme to enable the industry to modernise, decarbonise and optimise, protecting the long-term competitiveness of the sector in the most efficient way. I thank all my parliamentary colleagues who advocated for that support. The Department, other Ministers and I look forward to continuing to work with Members as we develop the scheme and get it ready for deployment.
Full debate: British Industry Supercharger: Ceramics
This Government are investing record amounts in the transition to renewable energy. We need to break the dependence on fossil fuels that our country has been forced into by the Conservative party. We will do so by creating wealth, jobs and businesses in the meantime.
Full debate: Topical Questions
The hon. Member mentioned the ZEV mandate. I am listening very closely to him on that. In general terms, when it comes to environmental regulations across the piece, it is really important that we deliver net zero targets and get to that destination. We need to be creative in how we get to that destination, and I speak in general terms. He spoke to the automotive sector earlier this week, as I did. I was very honest about these issues. He should have been honest, too: his party brought in the rules in the first place—he should have apologised for them if he does not like them.
Full debate: Advanced Manufacturing
The Government are today announcing the launch of the ceramics industry support scheme of £120 million to support the transition of the ceramics sector to a more cost effective and less carbon intensive means of production. Supporting this transition continues to deliver on our mission to decarbonise the economy, helping businesses to invest and grow across the country.
This Government are clear that industrial decarbonisation must not be achieved by deindustrialisation, and reducing operating costs for businesses will support a successful transition to more efficient and cost-effective forms of production. However, we recognise the challenges faced by ceramics producers, and that Government support will be necessary to help the sector.
That is why the ceramics industry support scheme is being introduced: £60 million of this funding will support capital investment from ceramics firms into more efficient and decarbonised means of production, including electrification of relevant processes. This will both attract business investment in efficient new technologies, and enhance our energy security by reducing our reliance on volatile fossil fuels. This fund will be delivered on a competitive basis, with successful companies demonstrating corresponding co-investment of their own. The expectation is that the package will support a small number of high capital projects, likely from larger companies, as well as smaller projects from established trading SMEs.
The Government will continue to work hand-in- hand with industry to ensure broader policy delivers decarbonisation and not deindustrialisation. We are committed to tackling unfair foreign trade practices, and Ministers will urgently convene the chemicals industry to explore potential trade defence action.
Full debate: Ceramics and Chemicals Industries
For too long, the steel sector in this country has been left to fend for itself, abandoned by Government, demoralised, starved of resources and the victim of international market distortions. Crude steel production has declined by more than 50% in the past decade. Capabilities have been reduced, and communities have been let down. Previous Governments have been too reactive and not proactive. This Government will not repeat the errors of the past. We are building the future for British Steel. While the industry faces challenges today, we will do everything we can to help it modernise and grow. This legislation allows us to apply that policy to this industry. We recognise that securing the long-term future of the UK steel sector relies on public and private investment for modernisation, so that the UK can become a global leader in clean green steel, electric arc furnaces and decarbonised steel production.
Full debate: Steel Industry (Nationalisation) Bill
My right hon. Friend the Secretary of State for Energy Security and Net Zero is overseeing that transition; however, British manufacturing continues to have some of the highest electricity costs in Europe. That undermines our manufacturing base, impacts our manufacturing jobs, and damages the lives and livelihoods of cherished communities across the country. The Government were elected to halt and reverse Britain’s industrial decline. That is why our modern industrial strategy addresses high electricity costs for British businesses.
Full debate: British Industrial Competitiveness Scheme
The Government have reformed the clean industry bonus to create new incentives for manufacturers to invest in UK steel in domestic wind turbines and wind farms. In parallel, electric arc furnace capacity will be expanded, recognising that stabilisation of the sector will mean a transition to more highly productive, decarbonised steel-making. As we see at Sheffield Forgemasters, electric arc furnaces have the technical capability we need to produce steel at the highest of standards, including for safety-critical sectors such as nuclear, aerospace and defence.
Full debate: UK Steel Strategy
Our approach reflects months of engagement between my Department, the Steel Council, businesses and trade unions. I thank the trade unions that have helped us, officials in my Department who have poured their heart and soul into this strategy, and my ministerial team for their contributions and leadership. We continue to engage constructively with the EU to protect vital UK-EU steel trade given our highly interconnected supply chains. Beyond the trade measure, we are backing electric arc furnaces to shift to greener, decarbonised steel production. As we see at Sheffield Forgemasters, electric arc furnaces have the technical capability that we need to produce steel to the very highest of standards for nuclear, for aerospace and for defence. This is important, as traditional blast furnaces will eventually reach the end of their operational lives. [Interruption.]
Full debate: UK Steel Strategy
My hon. Friend will know full well that when it comes to energy, we have announced the supercharger programme. Compensation is now being increased from 60% to 90%, offering relief and injecting competitiveness into the sector at the same time as offering protection. If we had done one without the other, we would, of course, just be pouring money down the drain. I can assure him that we are working with the National Grid and colleagues in the Department for Energy Security and Net Zero to make sure that we get the energy supply needed for the conversion to electric arc furnaces as quickly as possible.
Full debate: UK Steel Strategy
The Government remain committed to backing British exporters, including through support from UKEF, as we have set out in our industrial and trade strategies. We also remain committed to our national partnership with Mozambique and building long-term respectful relationships with African countries to boost sustainable growth, tackle the climate crisis and address insecurity.
Full debate: Mozambique LNG: UK Export Finance Withdrawal
That was a very thoughtful contribution, and I am very grateful for it. The Motability Foundation is an independent charity and is regulated by the Charity Commission, but it does engage fully with the Government in the most respectful way. As my hon. Friend would imagine, I have instructed my officials to work with those in the Department for Work and Pensions to see how we can make recommendations and certainly to support the take-up of British cars as much as possible. This Government are of course committed to the growth of the automotive sector. We are providing support through programmes such as DRIVE35, the electric car grant, which will invest up to £2.5 billion of support into zero emission manufacturing across the UK.
Full debate: Motability Operations
Creating a new AI Energy Council, bringing together industry leaders from the energy and AI sectors, co-chaired by me and the Secretary of State for Energy Security and Net Zero. The Energy Council will provide expert insight on the energy needs of AI, alongside opportunities to accelerate investment in the develop of renewable and innovative energy solutions to meet those needs.
Full debate: Artificial Intelligence Opportunities Action Plan
I agree, of course. Technological innovation will be key to the move to net zero, and the UK will be at the forefront of that. SMRs are particularly exciting. I have met Rolls-Royce, which has a great advocate in my hon. Friend. I look forward to hearing more from him and seeing how we can support this exciting technology into the future.
Full debate: Topical Questions
One of the last things the Executive agreed was an ambitious energy strategy, which would see Northern Ireland make huge strides towards net zero. In the Labour party, we have a vision for a future where Northern Ireland is a key part of our green prosperity plan. For example, 50% of electricity in Northern Ireland already comes from renewables. There is the potential for much more after offshore wind farms are introduced, and much more sustainable energy production. The gains from the green transition will be felt across our country, and Northern Ireland is uniquely situated to be a place of pioneers. I talked to American businesses recently, and their eyes lit up when I mentioned the hydrogen buses that run in Belfast and are exported to other cities across Europe and beyond. All those green opportunities in Northern Ireland can be seized only if there is a stable devolved Government in place.
Full debate: Belfast/Good Friday Agreement: 25th Anniversary
The only long-term solution to this crisis is a more sustainable energy policy, which the Government have failed to deliver for 12 years. In 2017, Nicola Sturgeon announced a national energy company for Scotland. Five years on, we are in an energy crisis and that plan has been ditched, so does the Minister agree that the right way forward is through Labour’s plan for Great British Energy, a home-grown, publicly owned company run for and by the people of this country and for the interests of people in this country?
Full debate: Cost of Living
Discussion of EVs usually starts with a focus on infrastructure or climate change, but as we are discussing what is ultimately a consumer product in a nation of car lovers, I will start by talking about the driving experience itself. I will start with what, in this day and age, is a confession: I love cars and I love driving. I am a proud member of the Association of Advanced Drivers and Riders, and I love watching Formula 1. Some time ago, however, a conflict began between my head and heart. My heart loved being a car owner and the freedoms that came with that, but my head knew the damage it was doing, and that by living in the centre of a city with a fantastic and award-winning bus service, I could afford to live without driving if I tried.
Full debate: Sale of New Petrol and Diesel Cars and Vans
Increasingly, electrified transport will become a normalised part of British life. People will experience it for themselves regularly from now on. As they do so, suspicion of its practicality will fall away. For example, in just 18 months’ time there will be 9,000 fully electric black cabs on the streets of London. As part of our inquiry, we visited the London EV Company and saw for ourselves the cutting-edge skills and technology being deployed by this great Coventry-based firm. Its product sets new standards, raising the bar on passenger comfort. Cab drivers love it, too. Next month, Brighton and Hove takes delivery of its first fully electric bus, and London already has several on the roads. When I was walking through Westminster a little while ago, I heard an extraordinary squeaking noise. I turned around and there was a double-decker bus. The only thing I could hear was the squeaking of the tyres as the bus made its way down the road. These are extraordinary innovations, which will transform not only our ability to tackle climate change, and the passenger and driver experience, but our lives in cities, because of the lack of the noise pollution that goes along with the combustion engine.
Our Government have a target of “almost every car and van” being zero emission by 2050, and for new cars and vans to be “effectively” zero emission by 2040. Our Committee found several faults with those targets. First, the phraseology used by the Government leaves plenty of room for interpretation. It is too vague to have bite. Secondly, the target dates themselves are miles behind other nations. China, India and Norway will all phase out petrol and diesel vehicles over the next decade, so why cannot we? Perversely, we are not even managing to beat countries within our own United Kingdom—Scotland has a target of 2032. Moreover, the motor manufacturers themselves are not hanging around for our targets. Honda will be producing electric-only vehicles within seven years, Porsche by 2030.
All those factors lead me to believe that when it comes to electric vehicles, the ambition of consumers, operators and manufacturers is outstripping that of our Government. If the UK is serious about being an EV world leader, as our Government claim to be, we must bring forward a clear, unambiguous target to achieve zero emissions from cars and vans by 2032. To achieve that target, Government will need far more ambition not just in its rhetoric, but in its action on the ground.
Full debate: Sale of New Petrol and Diesel Cars and Vans
I cannot disagree with my hon. Friend, particularly in an era when councils like Brighton and Hove City Council have experienced cuts of over 45% to their budget. We are investing massively in new infra- structure, but maintaining it will be a crucial challenge. We need to share the costs with the people who make money from the charging infrastructure, such as the electric companies, and the people who use the service. We also need to ensure that, for the sake of our climate change objectives, these things are subsidised as well. The cash must be there in the system.
Also, of course, the transition is inextricably linked to our ability to tackle climate change and the climate emergency, to meet levels of CO 2 emissions reduction that our country and planet need from all of us. That is why this debate is so welcomed and so important. It is also why it is the start, not the end, of what I hope is ongoing parliamentary involvement from this point forward.
Full debate: Sale of New Petrol and Diesel Cars and Vans
Microsoft alone is investing £5 billion in capital expenses worldwide to build data centre infrastructure, which gives us an idea of the scale of the transformation that is yet to come. Advances in nanotechnology, 3D printing and renewable energy are opening up a multiplicity of opportunities for medical, academic and industrial research. Our universities are rising to the challenge. Next year, for example, the University of Sussex will open a new £10 million centre for computing, robotic electronics and mechatronics. I would welcome an intervention from the hon. Member for Havant to tell me what “mechatronics” means; perhaps we can visit the University of Sussex and discover that together.
Full debate: Fourth Industrial Revolution