Barry Gardiner

I think this is the first time I have had the pleasure of speaking under your chairmanship, Sir Desmond; I am very pleased to have you in the Chair. I congratulate the hon. Member for Aberdeen North (Kirsty Blackman) on securing this important debate. It is said that if you remember the ’60s, you were not really there—but if you were there in the ’80s for the closure of the pits, you will never forget. You will never forget the violence; you will never forget the politicisation of the police; you will never forget the devastation of communities. That was an energy transition—I was not just picking up on the remarks of the hon. Member for Gordon and Buchan (Harriet Cross). This debate takes place at a key point in the transition away from oil and gas production in the North sea. With the Government’s consultation on building the North sea’s energy future under way, and with the clean energy mission driving forward at some pace, securing clean energy generation and the wealth creation and jobs that will go with it is non-negotiable if we are not to repeat the same unjust transition as before. It is a simple truth that the North sea basin is in terminal decline. That is not a political choice; it is a geological reality. For too long, the previous Government buried their head in the sand and watched as jobs supported by the UK’s oil and gas industry more than halved over the past decade. That is why this Government are right to finally draw a line under new licensing and the illusion of endless new oil and gas. The stone age did not come to an end for the lack of stone, and the oil age will not come to an end for the lack of oil. It will be because energy can be produced more cleanly and cheaply by renewable technologies. The demand for hydrocarbons is expected to peak globally in the next five years, but energy companies are still adopting business models focused on growing output volume rather than on maximising shareholder value. Creating the stranded assets of the future is bad management, and failing to build the skills base for tomorrow’s future is bad business planning. The myth that North sea licences are the answer to our energy security is a dangerous one. Hundreds of licences have been issued over the past decades and there has been just 16 days’ worth of gas to show for it. We are lucky to have an abundance of renewable resources in the UK. That is the only route forward to deliver for the workers and communities who are tied to a declining oil and gas industry. The current North sea transition deal is not fit for purpose. It places far too much responsibility on the companies themselves. Those companies are not delivering what is needed: a mere seven out of the 87 North sea oil and gas operators are even considering investment in renewable energy by 2030. We cannot outsource the future of our workers and our energy security to the very companies whose current business model is failing. We need a radical shift. The time for a coherent deal for the North sea is now. It is vital that the Government commit to bringing forward a bold and ambitious plan with the urgency that this time demands. Beyond extraction lies an immense opportunity to build a world-leading offshore wind manufacturing sector here in the UK. Our existing wind farms, many of which are in Scotland, provide a fifth of global capacity. They prove what is possible. But it is a scandal—a scandal that the previous Government allowed—that the average North sea turbine is overwhelmingly built with material from abroad. We are exporting jobs and prosperity. Great British Energy and the National Wealth Fund must be laser-focused on building up a thriving manufacturing sector. A properly resourced clean industry bonus is not just good policy; it has the potential to create 10,000 permanent, direct jobs and 13,000 indirect ones in areas that need it, such as the constituency of the hon. Member for Aberdeen North. Can the Minister confirm what conversations he has had with Cabinet colleagues about the clean industry bonus? Is there any scope to boost the funds behind the bonus to truly seize the moment? Our renewable ambition is crippled by outdated ports and dockside facilities. The £1.8 billion in the National Wealth Fund is a good start, but if we are to truly lead in home-grown energy, it is crucial that it be expanded. The funding must be safeguarded and expanded, and the Government should be taking equity stakes in ports as critical national infrastructure. The unjust transition at the refinery in the constituency of my hon. Friend the Member for Alloa and Grangemouth (Brian Leishman) and the situation in Port Talbot are warning signs that early Government intervention and investment are paramount if we are to secure the future of our workers. They deserve to experience a smooth transition. Over 90% of the UK’s oil and gas workforce have transferable skills, but they report a lack of support for transitioning into other industries. The energy skills passport is a start, but workers are footing the bill for their own retraining, which often duplicates their existing qualifications. The Government need to commit to streamlining the process. Crucially, the Minister should meet with the Treasury to deliver the £335 million-a-year training fund that unions and climate groups are rightly calling for—a fund that provides paid time off for workers to retrain. We live in a volatile world. The era of relying on global fossil fuel markets is over. True energy and worker security lies in our own abundant renewable resources. The opportunity to create thousands of high-quality jobs in a new green economy is here. It is within our grasp. I urge the Minister to seize it.