HC Deb 03 May 2001 vol 367 cc967-8
4. Mr. Bob Blizzard (Waveney)

What support he will give to the development of offshore wind energy generation. [159061]

The Minister for Energy and Competitiveness in Europe (Mr. Peter Hain)

Offshore wind will be eligible for the new renewables obligation that we propose to introduce this October. Of the £260 million allocated for renewables support over the next three years, at least £49 million has been allocated specifically for offshore wind, and that sum may well increase.

Mr. Blizzard

I am sure that my hon. Friend will agree that East Anglia is in an ideal position to develop offshore wind power. SLP Engineering of Lowestoft, a company with a fine track record in fabricating offshore oil and gas platforms, is in the right place to develop, manufacture and erect offshore windmills, and is already building a prototype offshore wind turbine at Britain's most easterly point. Given the downturn in the offshore oil and gas fabrication industry, will he consider the company's eligibility for diversification grant to provide much-needed jobs in Lowestoft, which has been designated an assisted area by his Department?

Mr. Hain

By all means, I will consider that. My hon. Friend is absolutely right: SLP Engineering has a fine reputation in offshore gas and oil exploration, drilling and platform construction. We would like the company, and the industry around my hon. Friend's constituency, to diversify increasingly from oil and gas—although maintaining that where appropriate—and explore the enormous potential for offshore wind development.

We recently announced 18 new projects, right around the coast of England and Wales. The forthcoming renewables obligation will provide £3 billion of investments, and the Government are supporting that with more than £250,000 of research and development project aid grant. We can drive forward the renewables agenda, bringing to it our unique expertise on the UK continental shelf.

Mr. Nick Gibb (Bognor Regis and Littlehampton)

The Minister said in The Times yesterday that if Labour was re-elected, he wanted a second Labour term to be more radical and left wing. Would that increased left-wing verve mean even more regulation for energy companies and industry generally? Would it mean even more levies on consumers electricity bills and increased electricity costs for both consumers and industry, as he imposes higher and higher renewables targets? Does he accept that a gloves-off second Labour term would be a disaster for the energy sector and a disaster for British industry?

Mr. Hain

I note that the hon. Gentleman has already conceded the general election. The answer to all his questions is no. I remind the House and the public that the Conservatives' record on renewables in 18 years of government was pathetic. We are now driving forward the agenda. More and more green energy will be the future for Britain, and, yes, I do see myself and the Government championing that. The Prime Minister has put his considerable authority behind it, with the announcement of £100 million of new support for renewables.

Mrs. Betty Williams (Conwy)

My hon. Friend's answer is of great importance to constituencies in the north-west. Is he aware of the major significance for manufacturing in my constituency, where Cambrian Engineering, based on the Llandegai industrial estate in Bangor, is a leading company in wind farm equipment? Does he agree that offshore wind farms can also be tourist attractions and will be a benefit to the coastal strip in north Wales?

Mr. Hain

I very much agree. Indeed, I had the privilege of visiting Cambrian Engineering with my hon. Friend before the previous general election. I was very impressed with its desire to increase production so as to rival the Scandinavian producers of wind turbines, and towers in particular, in which the company has especial expertise. We want to harness the enormous potential of offshore and, indeed, onshore wind in Britain, and in my hon. Friend's constituency in particular.