§ 2. Mr. Jon Owen Jones (Cardiff, Central)What discussions he has had with industry in Wales about energy policy. [122177]
§ The Secretary of State for Wales (Mr. Paul Murphy)I regularly meet Welsh companies and industry representatives and have discussed Government energy policy. The recent announcement by my right hon. Friend the Secretary of State for Trade and Industry on the future lifting of the stricter consents policy on gas-fired power stations and the pursuit of interim support to United Kingdom coal producers has been well received by Welsh industry.
§ Mr. JonesMy right hon. Friend will agree that no form of power generation is completely benign, but that renewable energy is the least likely to affect human health or the environment and is the only form of power generation that can be described as sustainable. In spite 954 of that, only 3 per cent. of the energy produced in this country is renewable, while the Government have a target of 10 per cent. by 2010. How will we reach that target? What contribution is Wales expected to make? Will Wales make a contribution that is proportional to its population or land mass, or one that is greater or lesser than the proportion that the rest of the UK would bear?
§ Mr. MurphyMy hon. Friend knows that the Assembly has responsibility in this matter as well as the Government. We have made protecting the environment a central feature of our economic policies. Wales has excellent opportunities for large-scale offshore wind farms, which could generate more than 100 MW. Such projects could bring jobs, and job retention, to rural areas, but we must be sensitive to the wishes of local people. The Assembly and the DTI will consult widely on that point, and those to which my hon. Friend referred.
§ Mr. Nigel Evans (Ribble Valley)The Secretary of State will know that the percentage of people in Wales employed in manufacturing industry is higher than in the UK generally. They have been hit over the past three years, with more than 6,000 manufacturing jobs lost—and that is before the threat of the climate change levy coming in and hitting manufacturing jobs in Wales. Will he give an assurance to the House that he will make representations to the Chancellor to protect manufacturing jobs in Wales? The Secretary of State has said that the Welsh Assembly and this House have responsibility for energy policy. Can I therefore give him another opportunity to state clearly that primary legislative powers will remain here?
§ Mr. MurphyThe hon. Gentleman will be aware that the people of Wales decided what they wanted in a referendum some years ago. The points made in the referendum campaign, the White Paper and the Government's proposals led to people voting for the situation that now exists in Cardiff.
On the climate change levy, the National Assembly has consulted the 20 major energy users in Wales, and the companies were generally supportive of our aims. Business was pleased that energy efficiencies made over recent years would count in the negotiated agreements. That has meant that several sectors are now close to signing an agreement that will give them an 80 per cent. discount. There are continuing discussions between the Assembly and businesses in Wales because of the very important change that is to take place.