Contribution
Once again, I thank my right hon. Friend; I will be coming on to exactly that point.
For more than a decade, the previous Government had a policy of maximising North sea oil and gas extraction and of removing and reducing taxes on oil and gas companies. With the issuing of hundreds of new licences in a maturing basin, what we have seen produced after 14 years is little more than a month’s worth of gas to date.
Energy security is national security. We know, and have admitted in the debate, that we have to reduce our dependency on gas and come to a transition. The Liberal Democrats recognise not only that we will need oil and gas for decades to come, but that the North sea’s most productive years are behind it. That is why we support a managed and just transition away from North sea oil and gas, with investment in renewables at its heart, and strong support for the workers and communities most affected.
Those working in the North sea are skilled workers. They have kept our lights on and have contributed enormously to our economy. They deserve our support through transition—not just words—and honesty about the future. That is why the Liberal Democrats are calling for the creation of a just transition commission and an acceleration of the clean energy jobs necessary. Under the Conservatives, jobs in the oil and gas industry fell by 70,000, and at that time we did not hear the cries that we hear now about what is happening or how those workers are being supported.
I grew up in Hull, a city that knew the devastation of unmanaged transitions—from coal and from the cod fisheries—and through my father’s work as a GP, I saw the human cost of industries collapsing without a plan. We cannot repeat those mistakes. No community should be left behind. In Hull today, when I go back, I see what success can look like: the manufacture of offshore wind turbines by Siemens; the Humber region pioneering the offshore wind industry; investment creating skilled, well-paid jobs now and for the future. Confederation of British Industry economic data has shown that beyond Hull, across the country, the new green economy underpins the jobs of 1.1 million workers throughout the UK, generating £105 billion in gross value added. That is the model we should be scaling up towards, with our skilled oil and gas workers and the supply chains front and centre of the transition.
Finally, in this sweltering heat, with this first ever red health alert for danger to life from extreme heat, we must recognise the costs of failing to tackle climate change. This week has shown us the future we face if we do not act—lives lost to extreme heat, schools closed, fields parched, transport networks gridlocked and economic costs spiralling. Climate breakdown is a national security threat, driving instability, displacement and economic shocks. It is incumbent on us to do all we can to avoid worsening climate shocks, so we must find a way forward through electrification that balances cheaper energy bills and security of energy supply, and meets our climate commitments.
The future of the North sea plays a vital role in that endeavour of transitioning from being a net exporter of oil and gas in the past to becoming a net exporter of home-grown green energy—as my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael) said—again trading in the EU internal electricity market and joining North sea countries in meeting joint offshore wind investment goals, while decarbonising the gas production we will still need for decades to come. I therefore ask the Minister to clarify whether he agrees with the Liberal Democrat proposal: a just transition commission, acceleration of clean energy jobs, and our essential energy guarantee, to ensure that all families have their basic energy needs met.
In addition, the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton) talked about the identity and culture of the communities that have to face this transition. That, too, is crucial. The sooner we embrace the transition and the sooner we can deliver a secure and affordable energy system, the sooner we can finally give families the lower, stable bills that they deserve.