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Seòmar agus comataidhean

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 15 October 2025
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Displaying 1245 contributions

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Net Zero, Energy and Transport Committee

Committee Priorities

Meeting date: 21 September 2021

Liam Kerr

I will explore a slightly different issue although, again, this might be a case of clearing up my understanding. I think that I am right to say that the bank is not currently authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. How is it still a bank, given that it is not regulated in that way? Do you have plans to formally become a bank or to become so regulated?

Net Zero, Energy and Transport Committee

Committee Priorities

Meeting date: 21 September 2021

Liam Kerr

I understand. I see that the British Business Bank publishes a rate of return to demonstrate the taxpayers’ return on investment, with a targeted return on average capital employed of more than 2 per cent. Does your bank plan to do likewise?

Net Zero, Energy and Transport Committee

Committee Priorities

Meeting date: 21 September 2021

Liam Kerr

I will ask a few straight questions on the finances, because it is not my area of expertise at all.

The Scottish Parliament information centre briefing estimates that the set-up and operating costs between 2018 and 2023 will be £49.9 million. However, that was before Covid. What are the current estimated costs to fully establish the bank? What do you project to be the annual operating costs going forward? When is the bank expected to meet the operating costs from its revenue income?

Net Zero, Energy and Transport Committee

United Nations Climate Change Conference of the Parties (COP26)

Meeting date: 16 September 2021

Liam Kerr

Thank you for that full—and, to be honest, fascinating—answer.

Finally, on a slightly different topic and picking up on something that the director general mentioned earlier, the UK is the first G7 country to agree the North Sea transition deal, which I think is worth between £16 billion and £18 billion of leveraged private investment to support the oil and gas industry’s transition to clean and green energy as well as supporting jobs. As part of the deal, the sector has committed to cutting emissions by about 50 per cent by 2030 and the Government, the sector and the unions are going to work together on delivering the skills, innovation and infrastructure that will be needed to decarbonise North Sea production. The question, therefore, is: will COP26 have any impact on the transition deal or does it remain as is?

Net Zero, Energy and Transport Committee

United Nations Climate Change Conference of the Parties (COP26)

Meeting date: 16 September 2021

Liam Kerr

Sticking with financing, my second question is about the UK Government’s financing to reach climate change targets. The Climate Change Committee has estimated that an extra £50 billion a year of capital expenditure will be needed from 2030. Does the UK Government take any view on whether that estimate is reasonable? In any event, will you help us understand how that will be financed?

Net Zero, Energy and Transport Committee

United Nations Climate Change Conference of the Parties (COP26)

Meeting date: 16 September 2021

Liam Kerr

Good morning, Mr Sharma. You mentioned the nationally determined contributions and the need to mobilise international financial support to assist developing countries to make those NDCs following COP26. Regardless of whether the amount ultimately agreed is $100 billion or otherwise, how will that financial support be administered, allocated and shared with the countries that are most in need of support to achieve their targets?

Net Zero, Energy and Transport Committee

United Nations Climate Change Conference of the Parties (COP26)

Meeting date: 16 September 2021

Liam Kerr

Yes. It is a reference to the report from the Climate Change Committee.

Net Zero, Energy and Transport Committee

Committee Priorities

Meeting date: 14 September 2021

Liam Kerr

I appreciate that this might be a question for Mr Dey, whom we might bring in, but what is the Government going to do to ensure that that does not happen again? Do you know off the top of your head what has already been put in place?

Net Zero, Energy and Transport Committee

Committee Priorities

Meeting date: 14 September 2021

Liam Kerr

I am grateful. I think that what I am hearing is that, in some ways, the focus has changed from supply to demand, and it is about what needs to change when it comes to demand.

Just sticking with the policy on a publicly owned energy company, I saw that your party’s conference voted at the weekend for a different policy from yours, in that it would prefer that an energy company was created. Will that impact on your thinking? If so, what steps will be taken?

Net Zero, Energy and Transport Committee

Committee Priorities

Meeting date: 14 September 2021

Liam Kerr

I understand your point. What I am hearing in relation to my concern is that next year, with the publication of plans, is critical. You mentioned hydrogen, which I might come back to, although I will not make a substantive point on that at this stage.

On a slightly different topic, the Scottish Government announced four years ago that a publicly owned energy company would be created to generate and supply energy but, £500,000 later, it seems to have been dropped—we heard last week that it will not go ahead. Will you help the committee to understand why the policy changed? When was the decision to drop the policy made and by whom? Do you have oversight of what the £500,000 was spent on?