Michael Shanks MP: speeches 2025

Speeches

• 22 Jul 2025 · Prax Lindsey Oil Refinery · Hansard source

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  My hon. Friend is right, and it is deeply frustrating that we inherited many of these issues, which were unresolved for such a long time. These are not problems that arrived in the past 12 months. Bringing in the refinery sector for talks with Government about the challenges would have been a fairly obvious thing to do at least once in the past 13 years. Clearly, that did not occur to the previous Government, and we have inherited challenges. My hon. Friend is right to say that consultations will take time, unfortunately. It is right that we conduct a proper consultation to make sure that there are not any unintended consequences. The Minister for Industry, who is a Minister in both the Department for Energy Security and Net Zero and the Department for Business and Trade, is looking at how we can do that as quickly as possible. I am happy to follow that up with her. My hon. Friend is also right that nobody wants to be talking about redundancies in any part of our economy, and we are doing everything we can to bring down prices to prevent redundancies.

• 22 Jul 2025 · Prax Lindsey Oil Refinery · Hansard source

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  I thank my hon. Friend for both those points. My understanding from the sector and from the Department is that a meeting has not happened in the past 13 years. [ Interruption. ] If the right hon. Member for Louth and Horncastle (Victoria Atkins), on the Opposition Front Bench, wants to find me dates when her Government met the sector, I would be really happy to look at them, and at any minutes from those meetings. That would be helpful. There are particular issues for the sector, but also for individual refineries; some are more profitable than others, and some have transitioned to doing other pieces of work. It is important that they learn from one other, and that the Government do what they can. On my hon. Friend’s final point, I agree that there is a moral obligation here. Having met the workers on the site, I know that they have done nothing wrong. They have worked hard over many years to keep the refinery going, and to deliver a profit. Those who have taken money out of that business should now do the right thing and fund those workers, and I hope that they will respond to my letter in due course.

• 22 Jul 2025 · Prax Lindsey Oil Refinery · Hansard source

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  I think the hon. Lady slightly misses the point. The company went into insolvency. The workers are therefore entitled only to statutory redundancy. I do not think that that is acceptable, so I have called—not nicely, but directly—for the owners of that company to do the right thing, put their hands in their pockets and fund proper redundancy for those workers. That is separate from a wider piece of work we are doing around the transition. I think she also misses the point about the importance of delivering investment in oil and gas that is also investment in renewables and in carbon capture, utilisation and storage to deliver the jobs that come next, so that there is a transition for those workers. I have said that I do not support her proposal, and I am happy to say that again because it would do neither of those things. It is essential that we support the oil and gas industry in its current form, but recognise that it is in transition. We still have decades of oil and gas to come in this country, but we are already building up the industry that comes next. That needs investment, and it also needs us to build infrastructure, which many people in her party seem to oppose.

• 22 Jul 2025 · Prax Lindsey Oil Refinery · Hansard source

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  In my oral statement on 30 June, I informed Parliament of the deeply disappointing news that the Prax Lindsey oil refinery had entered insolvency and that the court had appointed an official receiver to manage the situation on the site and determine the next steps. Since then, we have worked urgently to ensure the safety of the refinery site and the security of fuel supplies, and to protect workers. That also allowed time for bidders to express an interest in the site. Following a thorough process, the official receiver has rigorously assessed all the bids received and concluded that sale of the business as a whole is not a credible option. I visited workers at the site on 17 July, and I will be meeting them again shortly today. I know that this will be hugely disappointing news to them, their families and the wider community. They are all in my thoughts at this time. A package has been offered to all directly employed at the refinery which guarantees their jobs and pay over the coming months. Alongside the usual support that is offered to workforces in insolvency situations, the Government will also immediately fund a comprehensive training guarantee for those refinery workers to ensure that they have the skills needed and the support to find jobs in, for example, the growing clean energy workforce. Furthermore, we understand that the official receiver continues to explore various proposals for assets on the site. I therefore remain hopeful that a solution will be found that creates future employment opportunities at the Immingham site. The refinery will continue to process crude for the rest of the month, and the official receiver will continue selling refined products for a number of weeks, giving buyers time to adjust their supply chains. The former owners left the refinery in an untenable position and gave the Government little time to act. That is why the Energy Secretary immediately demanded an investigation into their conduct and the circumstances surrounding the insolvency, and why I have repeatedly called on the owners to do the right thing and provide financial support to the workforce at this difficult time.

• 22 Jul 2025 · Prax Lindsey Oil Refinery · Hansard source

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  I thank the hon. Gentleman for his questions, and for meeting me to discuss the matter yesterday. I appreciate the impact that the closure will have, not just on those refinery workers who are directly impacted, but on the wider economy. We absolutely appreciate that there are ripple effects from a closure like this. On the statutory redundancy point, we have looked at this, and have pushed to see if there is more action that the Government can take to change or give additional payments. It is not possible for Government to do that, not least because the Insolvency Service has to follow specific rules on creditors and how they operate in the event of an insolvency. However, the owners of the company have profited from this business, and they should do the right thing by the workforce that delivered that for them. I have agreed to hold a roundtable discussion, and I previously met the two council leaders to talk about this. I am happy to arrange that discussion, and to have it with whoever is useful and wants to participate, because the hon. Gentleman is right about the opportunities. I am happy to engage on the point about North Lincolnshire and business rates. Although the refinery will not continue to be a going concern, we are assessing bids from those who are interested in the site; we hope those bids will deliver jobs and economic benefit, and that business rates income will come from new industries on the site. That is not as good as retaining the refinery in its current form, but we hope we can make some progress.

• 15 Jul 2025 · Renewable Energy · Hansard source

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  The hon. Lady is right that we have an enormous amount of innovation in this space and real potential to meet our future needs, not just as a result of the pathway that we have outlined, but through innovative solutions like the one she mentioned, which provide specific support to targeted industries. I am happy to look further into her proposals, and at the funding available for innovation. If she wants to write to me with any details, I will happily follow up.

• 15 Jul 2025 · Renewable Energy · Hansard source

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  My hon. Friend makes a point that others have raised. We are looking in granular detail at how the system works to ensure that the regulatory landscape allows such opportunities to be taken. I am very happy to meet him to discuss this further. We are taking a detailed look at every single aspect of the system, so that communities, businesses and others can benefit from being able to export power to the grid. That will help the country with its energy needs and deliver a benefit for local communities.

• 15 Jul 2025 · Renewable Energy · Hansard source

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  Our clean power 2030 action plan sets out our pathway to delivering clean power. To support that plan, we recently launched the solar road map, which confirms plans to increase domestic solar installations through the future homes standard and warm homes plan.

• 15 Jul 2025 · Clean Energy: Supply · Hansard source

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  I completely agree. The right hon. and learned Gentleman is absolutely right: there are no technical barriers to doing it, but that does not mean that it is a straightforward process. To be honest, things that I thought would have been much more straightforward, like how we define “community”, are more difficult to get right, but we are absolutely determined to do it. He is right to make the point about delivering clean power that benefits local communities, so that they can buy it locally and really see the benefit of hosting it. That is exactly what we are determined to do and we will continue to work to make it happen.

• 15 Jul 2025 · Clean Energy: Supply · Hansard source

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  I completely agree. My hon. Friend makes the point that this is not just about action on the climate—as important as that is—and creating thousands of new jobs, but about bringing down bills and, crucially, delivering on that energy security point. The truth is that even though our clean power mission is about doing all four of those things at the same time, the Conservative party opposes all of that action, would leave us much more vulnerable to the volatility of the fossil fuel markets, and would turn its face against the economic opportunity of the 21st century.

• 15 Jul 2025 · Clean Energy: Supply · Hansard source

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  We will continue to support new renewables through the contracts for difference scheme in conjunction with initiatives such as the warm homes plan, the future homes standard and the boiler upgrade scheme. Great British Energy and Great British Energy Nuclear will together invest more than £8.3 billion over this Parliament in home-grown clean power.

• 15 Jul 2025 · New Nuclear · Hansard source

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  The clean power 2030 action plan makes it clear that nuclear will play an important role in our future energy system, providing low-carbon baseload power to the grid. We are delivering the biggest new nuclear building programme in a generation, having committed almost £17 billion at the recent spending review.

• 15 Jul 2025 · New Nuclear · Hansard source

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  Well, my right hon. Friend the Energy Secretary says that we love Hemel Hempstead; I think we agree on that. The nuclear sector is poised for significant growth. That will help deliver on our energy needs in the future, and it is how we will deliver thousands of skilled jobs across the country. The nuclear skills plan is a collaborative effort between Government, industry and academia, setting out the targeted work we need to address the skills gap and bring forward the thousands of apprentices we will need to deliver this work in the future. The regional skills hubs we have established will help to deliver training support locally to ensure that every community in the country benefits.

• 15 Jul 2025 · New Nuclear · Hansard source

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  I regularly engage with Ministers in the Northern Irish Executive, including in the Department for the Economy, which has responsibility for energy policy in Northern Ireland, and we discuss a range of issues. We are happy to support the Northern Irish Executive in any way we can, either with technology or through rolling out the regulatory framework. We are really excited about the opportunities posed by SMRs and are happy to discuss that in Northern Ireland as well.

• 15 Jul 2025 · New Nuclear · Hansard source

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  My hon. Friend is absolutely right; the Government are committed to delivering a new golden age of nuclear, securing an abundance of clean power after 14 years of dither and delay from the Conservatives, and with that will come investment across the country. On 10 June, following a robust two-year process, Great British Energy Nuclear selected Rolls-Royce SMR as its preferred bidder to deliver the UK’s first small modular reactor, subject to final Government approvals and contract signature. The Government are making available £2.5 billion across the spending review to enable this to be one of Europe’s first SMR programmes.

• 15 Jul 2025 · Topical Questions · Hansard source

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  Of course the Government follow the regulations that we have put in place quickly, and applications must be considered on a case-by-case basis—that is the way anyone would expect them to be dealt with. I will not say on the Floor of the House any more about those applications, as they are live decisions that will be made in due course by the Department.

• 15 Jul 2025 · Topical Questions · Hansard source

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  I do not know the specifics of the case that the hon. Lady raises—if she wants to send any details to me, I will certainly look at them. We clearly want to see and expect in every single case a partnership between developers delivering projects that we think are important, the planning system responsible for putting the processes in place and the communities who should have their local area protected and be able to access it. I am happy to follow up with her if she wants to raise specifics with me.

• 15 Jul 2025 · Topical Questions · Hansard source

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  That is not the position of the Government, because report after report and the evidence points to the fact that undergrounding cables is significantly more expensive than putting them above ground. Individual applications will clearly look at the individual circumstances and make a decision on that. We have said as a Government that communities that host network infrastructure should benefit through community benefits and direct money off bills, and that is what we will deliver.

• 15 Jul 2025 · Topical Questions · Hansard source

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  I will repeat what I have said before: we are obviously hugely disappointed by the way that the owners have dealt with the company. I repeat the ask that I have made in the House a number of times, and in writing to the chief executive, that he should put his hands in his pockets and do the right thing by the workforce. We are doing everything we can as part of the insolvency process safely to manage the refinery, and to look at whether there are buyers interested in taking it on.

• 15 Jul 2025 · Topical Questions · Hansard source

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  My hon. Friend always raises the huge potential of Cornwall in this House and in the energy space. He is right to talk about the potential for geothermal; we are hugely excited about the opportunities that it presents. I am very happy to meet him and others to discuss further how we can take it forward.

• 15 Jul 2025 · Topical Questions · Hansard source

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  We are looking in the round at how we can deliver jobs and opportunities on the Grangemouth site. The National Wealth Fund made an unprecedented commitment of £200 million, and I have been meeting companies that are potentially interested in developing projects, to make sure we get them over the line. We have delivered on the training guarantee and delivered support beyond that provided by the Falkirk and Grangemouth growth deal. We are doing everything we can to support the workforce there, and we will continue to do so.

• 15 Jul 2025 · Topical Questions · Hansard source

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  The hon. Gentleman is assiduous in raising these sorts of questions with me. I am very happy to look at the possibilities. He is right to outline the potential of sites such as that, and we will look at it.

• 15 Jul 2025 · Renewable Energy Sector: Workers’ Rights · Hansard source

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  My hon. Friend is right to raise that point. Supporting workers in energy-intensive industries is essential as we transition our economy. The Government will provide over £1.2 billion per year in skills funding by 2028-29, supporting training in renewables, low-carbon construction and advanced engineering. We are also investing over £100 million over three years to develop engineering skills in England and launching new technical excellence colleges to make sure that training stays aligned with employers’ needs. We will also push forward on the clean energy workforce strategy this year.

• 15 Jul 2025 · Renewable Energy Sector: Workers’ Rights · Hansard source

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  The Government are committed to strengthening collective bargaining and trade union recognition. The Employment Rights Bill and the plan to make work pay will modernise rights and improve conditions. The Office for Clean Energy Jobs engages unions to ensure that renewable energy jobs support economic growth, the net zero transition and workers moving from carbon-intensive sectors.

• 15 Jul 2025 · Electricity Grid Capacity · Hansard source

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  That sounds like a fantastic opportunity. Our ambition is to see solar panels on as many rooftops across the country as possible. It is a win-win opportunity, as the hon. Gentleman rightly puts it. He and I have spoken about a number of these issues previously, and I am happy to discuss this one with him. If he could write to me with the specifics, we will certainly look at the matter. In the meantime, we are looking at reforming all those processes to make sure that we can get as much power as possible.