Clean Energy Transition: Supporting People in Work

3. What steps he is taking to ensure the clean energy transition supports people in work.

Clean energy is a huge economic opportunity for every corner of the country. Our clean energy jobs plan highlighted 860,000 high-quality jobs across the whole of our nation by 2030—jobs that young people will not need to leave their home town for.

As we face the second fossil fuel shock in half a decade, it is right that the Government are scaling up clean, home-grown renewable energy through the energy independence Bill. However, clean energy jobs are not yet being created at the pace required to replace losses in oil and gas. How will the Government guarantee secure, well-paid jobs with strong trade union rights throughout the green transition?

My hon. Friend is right to point out the vulnerability to oil price shocks—Wales has been identified as a particularly vulnerable area. Like me, he has paid close attention to the report by the former Member for Darlington, Alan Milburn, on the need to provide opportunities for young people; in fact, I believe he has invited Alan Milburn to a meeting of his all-party parliamentary group later this week. The clean energy industry is one of the industries that will provide good-quality jobs, and in the Department we are using grants and procurement to ensure that we have strong trade union engagement.

The hon. Member for Montgomeryshire and Glyndŵr (Steve Witherden) is right: those jobs are not there yet, and we risk losing the incredible talent in our energy industry as my constituents move abroad to find jobs. My constituency has historically had some of the highest numbers of patents in the UK, so we have the innovators we need for the energy transition. How will the Minister and the Government ensure that this gap is filled and that people can find jobs to power that transition, rather than leaving us because there are no jobs just now?

The hon. Lady raises an important point about managing the transition, and that is certainly what this Government are doing. I just want to challenge the point about the number of jobs being created by the number being lost. I know that the Opposition are always keen to quote the research from Robert Gordon University, but it does point to more jobs being created than lost. Actually, the recent report from the Confederation of British Industry now says that 1.1 million jobs in our economy are now dependent on net zero. But clearly, we do need to support the transition—it will not happen on its own. That is why, through our North sea transition funding and the opportunities through our clean energy technical colleges, we are providing that opportunity for people.

Twenty-five per cent of the manufacturing output of the east midlands is in the food and drink sector, but that sector feels left behind in the clean energy transition without support from Government programmes, such as the British industrial competitiveness scheme. What support can the Minister give to the food and drink sector to ensure that it continues to prosper in the east midlands and to create jobs in constituencies such as mine?

The Government and I recognise the importance of the food and drink sector. My hon. Friend is right to point out that the sector is not included in the British industrial competitiveness scheme, but our boiler upgrade scheme does apply to these industries. One thing that I am doing is looking at the role of third-party intermediaries. The Department intends to provide a regulatory role for Ofgem, and subject to parliamentary time, we should be bringing forward measures that will benefit the food and drink industry.

This Government are not supporting workers in the oil and gas sector in north-east Scotland and Aberdeen; they are supporting workers in the oil and gas sectors of Norway, Qatar, America and even now Russia. The recent energy transition survey from the Aberdeen and Grampian chamber of commerce showed that 37% of respondents had seen staff or colleagues move abroad. What will it take for this Government to see the damage they are doing and end their ban on new licences, end the energy profits levy, permit Rosebank and Jackdaw, and get Britain drilling again?

I have to say that caring for the transition of our oil and gas workers is not something on which the Opposition have a monopoly, because only the Government have taken any action. The previous party when in government oversaw a decline in the North sea and did nothing to support a transition. This Government are supporting the transition in the North sea. Through our tiebacks policy, we are ensuring that we can make the best use of the available resources, but by continuing to invest in our cheapest form of energy and by ensuring that the supply chains are here and that the skills remain here, we will create those opportunities for people to work in those areas of the UK.

I call the shadow Minister.

The truth is there is no just transition. Everybody can see that except for the Government Front Bench. I spoke to a woman in Aberdeen just yesterday, born and raised in that city and raising her family there. She had worked in oil and gas and, actually, was proud to be playing her part in developing the energy technologies of the future. She was a lifelong Labour voter—no longer, because she has now been made redundant. Like so many others in that city, she is now looking overseas because of this Government. What does the Minister have to say to Aberdonians like her?

Clearly, on a personal level, I say to the hon. Member’s constituent that I fully understand the position she is in, having lived through such transitions myself. But the difference with this Government is that we are taking care to ensure that communities are supported—1.1 million jobs now in net zero, £105 billion of gross value added and £90 billion invested in clean energy industries since this Government came to power. We are building the British industry of the future and attracting investment to do that. We are creating the jobs of the future, while the Conservatives sat and oversaw a decline.

We have been over this before: BP, Hunting, Harbour, Chevron, Well-Safe, Petrofac, Ithaca Energy and, just this morning, Xodus Group are all laying people off. Xodus specifically blamed the slowdown in the roll-out of renewables due to the decline in oil and gas in the North sea. The former Health Secretary the right hon. Member for Ilford North (Wes Streeting), Tony Blair, academics, Scottish Renewables, the chair of GB Energy and apparently quite a number of the Cabinet agree with us on the Opposition side of the House and with the public that we must keep drilling in the North sea while we have a demand and while it is there. When will the Government listen to everyone else, end this ideological obsession, overturn this and get Britain drilling?

I think we have found something on which we can agree, which is that we need to invest in renewables further and faster. I look forward to those on the Opposition Front Bench supporting our clean power 2030 plan.