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927 National Policy Statements 1 DECEMBER 2010 National Policy Statements 928<br />

[Charles Hendry]<br />

w<strong>here</strong> we believe that local authorities should have<br />

significantly more power when deciding on the issues<br />

that come to them below the 50 MW. Of course, the<br />

views of local people, directly and through their local<br />

authorities, will be an integral part of individual planning<br />

applications, and they will be heard.<br />

I shall pick up on some of the other points that have<br />

been raised during the debate. My hon. Friend the<br />

Member for Folkestone and Hythe (Damian Collins)<br />

talked about Dungeness, and from our conversations<br />

and his consistent representations, I understand w<strong>here</strong><br />

he is coming from. We recognise that the development<br />

of a new nuclear power station at Dungeness would be<br />

a continued source of employment and bring economic<br />

benefits to the surrounding area, but the Government<br />

are obliged by law to consider adverse affects on the<br />

integrity of European-protected sites which might be<br />

caused by development and to consider alternative sites<br />

if those impacts cannot be mitigated.<br />

Dungeness is not on the NPS, because we have not<br />

yet been persuaded that a new nuclear power station<br />

could be built t<strong>here</strong> without having adverse impacts on<br />

the integrity of the Dungeness special area of conservation,<br />

or that adverse impacts could be avoided or mitigated.<br />

The Dungeness SAC is the most important shingle site<br />

in Europe, so after careful consideration of the<br />

representations made so far our view that Dungeness<br />

should be excluded has not changed. The consultation<br />

is continuing, and, if additional evidence that changes<br />

that conclusion emerges in the course of the meeting<br />

that I will have with my hon. Friend and his local<br />

authority’s representatives, or in written submissions,<br />

we will take it into account.<br />

The hon. Member for Southampton, Test<br />

(Dr Whitehead), who speaks with such authority, raises<br />

several issues, but I shall focus on the role of gas. We see<br />

a need for gas, but part of the issue is that we have<br />

inherited a situation in which new nuclear cannot be<br />

built until the end of the decade, because its construction<br />

did not start earlier. Further, when it comes to the<br />

mass roll-out of renewables, we are third from bottom<br />

in the whole EU. We have great ambition but start from<br />

a long way behind. Carbon capture and storage on a<br />

major commercial scale cannot play a massive role until<br />

the end of the decade, although our ambitions for that<br />

are high.<br />

Gas will t<strong>here</strong>fore have to be part of the process; that<br />

is the simple, practical reality. Gas-powered stations can<br />

be built quickly; gas requires lower capital expenditure<br />

than other technologies, so the write-off period is lower;<br />

and importantly it is flexible, so it can back up other,<br />

more in<strong>here</strong>ntly variable technologies.<br />

Of course, the issue of emissions will be critical. That<br />

is why we are taking forward the work on the carbon<br />

floor price and looking at emissions performance standards<br />

and the other measures that will be brought to bear,<br />

which investors will need to take into account as they<br />

make decisions on these critical investments. The time<br />

scale of that is now almost upon us. In the next few<br />

weeks, before Christmas, we will set out how the electricity<br />

market reform process will work.<br />

My hon. Friends took me on a fascinating tour of the<br />

country. We heard about the nuclear opportunities in<br />

Gloucester and the great training opportunities at the<br />

Barnwood EDF facility. My hon. Friend the Member<br />

for Gloucester (Richard Graham) is absolutely right to<br />

talk about the skills agenda and the supply chain<br />

opportunities that we are determined to realise.<br />

My hon. Friend the Member for Truro and Falmouth<br />

(Sarah Newton) focused on energy security and the<br />

issues surrounding the wave hub and deep geothermal<br />

resources. I look forward to visiting those facilities with<br />

her in due course. My hon. Friend the Member for<br />

Brigg and Goole (Andrew Percy) talked about the supply<br />

chain and his concerns about power lines, which we<br />

completely understand.<br />

My hon. Friend the Member for Wells (Tessa Munt)<br />

spoke about the Holford rules. We will reflect on the<br />

concerns that she expressed, but we must also have<br />

clarity about what benefit local areas will achieve from<br />

these new investments. That is at the heart of the<br />

localism Bill. Thinking about how local communities<br />

should benefit in terms of business rates and other<br />

direct benefits coming into their communities will<br />

completely transform the relationship between these<br />

facilities and the communities who host them. That will<br />

be an important element as we move forward.<br />

The hon. Member for Rutherglen and Hamilton West<br />

(Tom Greatrex) speaks with great authority on these<br />

issues, and the House benefits from his expertise. He is<br />

absolutely right that time is not on our side. The whole<br />

purpose of what we are trying to do is to remove the<br />

barriers to new investment in these areas. We are absolutely<br />

clear that t<strong>here</strong> will be no public subsidy for new nuclear,<br />

but we must then remove the other potential barriers—the<br />

regulatory barriers—to ensure that that investment can<br />

go ahead. On carbon capture and storage, I can absolutely<br />

give him the assurance that we are looking to gas as part<br />

of the next projects. The market-sounding exercise showed<br />

a significant interest in gas, and we will t<strong>here</strong>fore open<br />

up this competition to gas plants as well.<br />

The hon. Gentleman talked about EMR and the cost<br />

of transmission. We have to look at this in a new way.<br />

People will not build power plants if they do not believe<br />

that they can get their power to market. Historically,<br />

power plants were built in the coal centres or outside<br />

the big industrial centres; now, we are looking at new<br />

places for them to be built. We have to look at this<br />

afresh, and I am delighted with the work that Ofgem is<br />

doing to look at the best structure for the process. I will<br />

leave others to deal with the issue of the location of the<br />

green investment bank.<br />

Finally, I want to deal with some of the points made<br />

by the hon. Member for Ogmore. He mentioned “what<br />

if?” scenarios. He was right to do that, but we are in that<br />

“what if?” environment because of the situation that we<br />

inherited. After 13 years, we have to get £200 billion of<br />

new investment coming into the infrastructure. If more<br />

decisions had been made to take forward the role of<br />

nuclear and not to have the five-year moratorium, we<br />

would be significantly further advanced, and the challenging<br />

energy situation in the middle of this decade would not<br />

have applied in the same way.<br />

My hon. Friend the Member for North Warwickshire<br />

(Dan Byles) talked extremely clearly and effectively<br />

about the energy security needs that we have to address.<br />

It is possible that CCS may not work, or that the price<br />

may be too high, but if we do not push the process<br />

forward and take advantage of the extraordinary<br />

opportunities that we have in this country, we will

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