HL Deb 04 March 1998 vol 586 cc1196-7

2.53 p.m.

Lord Roberts of Conwy

asked Her Majesty's Government:

Whether they will grant an exemption from the review of energy sources for power stations to the Shotton combined heat and power station.

Lord Haskel

My Lords, my right honourable friend the Secretary of State for Trade and Industry has said that she will be prepared to consider reasoned requests for exceptions to be made. These will be considered on their merits and she will bear in mind the environmental and other benefits of combined heat and power. A case has been made by Eastern Generation for the Shotton project to be an exception because of these factors. I can confirm that as a result the application is under active consideration.

Lord Roberts of Conwy

My Lords, I am grateful to the Minister for that encouraging reply. But is he not concerned, as I am, that an excellent scheme such as this is being held up by this review? I am sure he is aware that the scheme was specially designed for Shotton Paper, one of our major newsprint manufacturers and a heavy energy user, and will assist the company in its international competitiveness as well as bringing obvious environmental benefits. In view of all that and the case for the scheme, will the noble Lord do his utmost to expedite the exemption and let the scheme be carried out?

Lord Haskel

My Lords, certainly it is a good application, and that is why it is being actively considered. The current situation is that there is a local environmental issue raised by Ellesmere Port and Neston Borough Council; namely, whether the mound on which the proposed station is to be built can be reduced. A study has been carried out and the position as of this morning is that the relevant officials are urgently trying to set up a site visit with the DTI, the Environment Agency and other people involved to discuss the relevant problems. If the purpose of the noble Lord's Question is to place this application under the spotlight, I can assure him that the intention is that this visit will take place within days, not weeks or months.

Lord Ezra

My Lords, is not the Shotton scheme one that should be held up as an example? If the Government are really keen on expanding the use of combined heat and power, this scheme, which has more than 70 per cent. efficiency and which will replace the burning of heavy fuel oil, is the type of scheme to go for. Therefore, far from being held up in any way—which I hope will not be the case—it should be brought into operation and developed as a model for others to follow.

Lord Haskel

My Lords, it is certainly a good scheme. However, there is a statutory process for assessing what are called Section 36 applications, as the noble Lord well knows. This process is being completed as quickly as possible.

Lord Thomas of Gresford

My Lords, is the Minister aware that Neston and Ellesmere Port are in England, and that this application has the full support of the Welsh Development Agency and Flintshire County Council'? Shotton has suffered terribly from unemployment in the past. Special regard should be given to the feelings of people in that locality that no jobs should be lost as a result of delay.

Lord Haskel

My Lords, that is certainly taken into account. That is why my noble friend the Secretary of State for Trade and Industry is trying to speed up this application as much as possible.

Lord Elis-Thomas

My Lords, does the Minister agree that, for those of us who are concerned about sustainable development, this scheme from Shotton Paper and Eastern Generation appears to be a prime example of that very attitude towards environmental and energy management? Does he accept that Shotton Paper has invested substantially not only in production in North Wales, but also in the forestry industry, and that we have a fine example in mid and North Wales of sustainable forestry by that company? Will the Minister also take that into consideration and the fact that the whole cycle of energy production undertaken by the company is a positive one?

Lord Haskel

My Lords, it is certainly an admirable scheme. As I say, that is why the Government are taking it seriously.

Viscount Mersey

My Lords, I declare an interest as an immediate past president of the Combined Heat and Power Association. I have here a list of 13 combined heat and power stations which may be threatened by the moratorium. Rather than recite the list, I hope I may send it to the noble Lord. Will he comment on the future of each station in writing and possibly place a copy of his reply in the Library? Will he also confirm that the British Sugar combined heat and power station at Bury St. Edmunds has just been given the go-ahead?

Lord Haskel

My Lords, I can confirm that the British Sugar scheme at Bury St. Edmunds has been given the go-ahead and will be in operation in 1999 in time for the sugar beet harvest. As regards the noble Viscount sending me the details of other schemes, I shall certainly be happy to receive them but I cannot guarantee that I can give the noble Viscount more information than he probably already has.

Lord Roberts of Conwy

My Lords, in view of what the House has heard this afternoon, will the Minister give an assurance that he will consider all these applications for exemption and where there is an excellent case, such as the one we have dealt with this afternoon, he will give it his special attention?

Lord Haskel

My Lords, I can assure the noble Lord that the Department of Trade and Industry is looking carefully at these applications. Whatever encouragement is needed will he given.