Tag: Jacob Rees-Mogg

The speech made by Jacob Rees-Mogg, the Secretary of State for Business, Energy and Industrial Strategy, to the IAEA 66th General Conference in Vienna on 26 September 2022.

Mr President,

Congratulations on your appointment as President of this Conference.

It is an honour to be here today, and I would like to express His Majesty’s Government’s gratitude for the phenomenal work of the Director General and the Secretariat over the last year. Their commitment, resilience, and professionalism in responding to threats to the security and stability of our world has shown, once again, the value of the Agency to the global community.

Mr President, The United Kingdom firmly believes that the peaceful uses of nuclear technologies are essential to resolving some of the most pressing challenges of our time. First, this means boosting our energy security through safe and secure nuclear power to address climate change and food insecurity.

Yet we cannot ignore those who threaten this vision. The United Kingdom continues to condemn the Russian Federation’s unlawful invasion of Ukraine and its reckless actions against nuclear facilities, including at the Zaporizhzhia Nuclear Power plant. Russia’s wicked actions threaten the safety of millions and undermine the use of nuclear technology. The United Kingdom supports the IAEA’s work to ensure the safety and security of nuclear facilities in Ukraine, including at the Zaporizhzhia Nuclear Power plant. However, we are clear that the only way to resolve the nuclear safety issues in Ukraine is for the Russian Federation to end its unprovoked invasion, and unconditionally withdraw all its troops and personnel from Ukraine’s nuclear facilities and its internationally recognised borders.

While Russia acted alone to block consensus at the recent Nuclear Non-Proliferation Treaty Review Conference, the United Kingdom will play its part to advance our commitments under the NPT. This includes the Sustained Dialogue on Peaceful Uses, where we – alongside 30 other partners – aim to continue expanding access to nuclear technologies, to allow more countries to benefit from them, through medical, environmental and energy applications.

It is also deeply concerning, Mr President, that Iran has chosen not to seize the critical diplomatic opportunity to restore the JCPoA and instead continues to escalate its nuclear programme. The JCPoA cannot in any way be used to release Iran from its legally binding safeguards obligations that are essential to the non-proliferation regime and international security. The only way the issues can be resolved is through Iran providing technically credible explanations to the Agency’s outstanding questions.

Mr President, despite these threats to the global non-proliferation architecture, we must not lose sight of the opportunities of advanced nuclear technologies. That is why, earlier this year, the British Energy Security Strategy set out our intention to boost deployment of civil nuclear up to 24GW by 2050, including through the development of Small Modular Reactors. Meanwhile, we are improving our plans for decommissioning and developing a geological disposal facility to dispose of our most hazardous radioactive waste safely and securely.

We are also leading global efforts to make Fusion Energy a reality. By investing in the best research, we plan to build a prototype fusion power plant that will put energy on the grid by 2040 – demonstrating Fusion Energy’s commercial viability.

Furthermore, Mr President, it is more important than ever to have resilient international supply chains for uranium and nuclear fuel. The United Kingdom has many decades of experience of making fuel for our own reactors and for export to the rest of the world. We will continue to build on this, ensuring that our supply chains and capabilities are ready to help fuel this energy secure future.

We must also recognise, Mr President, that challenges from the COVID-19 pandemic to Russia’s illegal war in Ukraine have highlighted the importance of working together to strengthen our nuclear safety, security and safeguards frameworks.

The Agency can count on His Majesty’s Government’s full support in its efforts to strengthen these systems, including through our cooperation with the US and Australia on AUKUS naval nuclear propulsion. We are working closely with the IAEA to ensure that the precedent set by Australia’s acquisition of submarines strengthens the global non-proliferation regime. As our leaders said in last week’s statement, the AUKUS partners are fully committed to establishing an approach that meets the highest non-proliferation standards. We welcome Director General Grossi’s report to the September IAEA Board of Governors meeting on this issue, in which the Director General reported his satisfaction with our engagement.

We also remain committed to working with Contracting Parties to strengthen IAEA Conventions, particularly through the valuable Peer Review processes, and maintaining robust emergency response arrangements.

An effective and robust safeguards system remains an essential enabler for the peaceful uses of nuclear. We urge those countries that have not yet done so to ratify Comprehensive Safeguards Agreements and Additional Protocols. Only fully implemented and ratified agreements, matched with high security standards for nuclear material and sites will deserve the public’s confidence in nuclear technologies and provide the assurance that they are safe, secure and safeguarded.

I would also like, Mr President, to applaud the IAEA’s significant contribution to science and research and the Director General’s unwavering commitment to nuclear for development. I am happy to pledge £3.4 million to the Technical Cooperation Fund.

The technologies under development today are needed to solve the most pressing global development challenges of our time, and it is our responsibility to deliver these to those who need it most.

Finally, let me emphasise Mr President, the UK will continue to give the Secretariat, and the Director General, our wholehearted support.

Thank you very much.

The statement made by Jacob Rees-Mogg, the Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 22 September 2022.

Following the Prime Minister’s announcement on 8 September, yesterday, the Government published further details of the support we are offering to people and businesses in the face of soaring energy prices. This package of unprecedented assistance for the whole UK provides the certainty families and business owners need to help them manage their energy bills.

Details of the energy price guarantee for domestic consumers and the energy bill relief scheme for business and non-domestic properties are available on gov.uk. The Chancellor of the Exchequer will set out more details of the costs of the Government’s support as part of his fiscal statement on 23 September.

We have designed the schemes to be simple for energy consumers. Families and eligible businesses do not have to take action or apply for support, energy suppliers will automatically apply the appropriate reduction via their energy bill. Households will receive an equivalent level of financial support wherever they are in the UK. The same is true for businesses across the UK too.

The energy price guarantee will ensure that a typical household in Great Britain pays an average £2,500 a year for their energy from 1 October 2022, for the next two years. Households in Northern Ireland will see equivalent benefits on the energy bills. On average usage, a household in Great Britain will save £1,000 a year. This is in addition to the already announced £400 energy bills support scheme for households across the UK. The most vulnerable UK households will also continue to receive £1,200 of support. For consumers in Great Britain who pay for their energy through a monthly, quarterly or other regular bill, the energy price guarantee will be applied when their bill is calculated. The guarantee limits the amount the bill payer can be charged per unit of gas or electricity, so the exact bill amount will continue to be influenced by how much energy is used.

The energy bill relief scheme will provide protections for all businesses, voluntary sector and public sector organisations in Great Britain which face excessively high energy bills over the winter period, whether they are on existing fixed price contracts agreed on or after 1 April 2022, signing new fixed price contracts, variable or deemed tariffs or flexible purchase contracts. To administer support, the Government have set a supported wholesale price—expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter—which is a discounted price per unit of gas and electricity. Suppliers will pass the reduction in the wholesale price through to their customers.

The energy bill relief scheme will run initially for six months covering energy use from 1 October 2022 until 31 March 2023. There will be a review of the operation of the scheme, to be published in three months’ time. This review will consider how best to offer further support to customers who are the most vulnerable to energy price increases. These are likely to be those who are least able to adjust, for example by reducing energy usage or increasing energy efficiency.

A similar scheme will be established in Northern Ireland, providing a comparable level of support. We intend to provide more information on the comparable support for non-domestic customers in Northern Ireland by the end of September.

The scheme for domestic consumers will be different, because of the different way the electricity and gas market operates in Northern Ireland. But it will provide households with an equivalent level of support as for those in Great Britain. Households do not need to take any action to receive this support, although it may take a little longer than for Great Britain for relief to take effect. However, the savings will be applied to energy used from October onwards so that households get the same overall benefit as those in Great Britain. The energy price guarantee limits the amount you can be charged per unit of gas or electricity, so households’ exact bill will continue to be influenced by how much energy is used.

Households in Northern Ireland will also receive the £400 discount on their bills through the Northern Ireland energy bills support scheme, which will offer the same level of support as for households in Great Britain. We aim to provide this £400 discount for Northern Ireland as soon as possible.

A comparable scheme to the energy bill relief scheme will be in place for businesses and other non-domestic customers in Northern Ireland. This will follow a similar structure to the GB scheme. We intend to provide more information on the comparable support for non-domestic customers in Northern Ireland by the end of September.

As the Prime Minister said on 8 September, the Government are bringing forward emergency legislation to underpin the delivery of our support package. We will introduce a Bill immediately after parliamentary recess. It will include measures for the GB energy price guarantee for domestic consumers and the energy bill relief scheme for businesses and non-domestic properties so all of GB receives equivalent support; and enable the delivery of comparable schemes in Northern Ireland. It will provide powers to enable low carbon generators to move on to fixed prices to end the situation where electricity prices are set by the marginal price of gas, ensuring consumers pay a fair price for their energy.

Contingent liabilities

I have laid before Parliament a departmental minute describing contingent liabilities arising from the energy price guarantee. It is normal practice when a Government Department proposes to undertake a contingent liability of £300,000 and above, for which there is no specific statutory authority, for the Department concerned to present Parliament with a minute giving particulars of the liability created and explaining the circumstances.

I regret that because of the urgency of establishing this scheme before 1 October, I have not been able to follow the usual timelines for issuing notice at least 14 parliamentary sitting days before the liability begins to be incurred.

The Treasury has approved the scheme in principle. I will continue to update Parliament on this scheme.

New oil and gas licensing

We are scaling up renewables, nuclear, and lower carbon energy sources, to boost Britain’s energy security in the long term, and reduce our exposure to high fossil fuel prices set by global markets outside our control. While we do this, there will continue to be ongoing demand for oil and gas over the coming years during this transition, with oil and gas needed to maintain the security of the UK’s energy supply. Making the most of our own domestic resources under the North sea will make us less dependent on foreign imports.

In the light of Putin’s illegal invasion of Ukraine and weaponisation of energy, strengthening our energy security is an absolute priority, and—as the Prime Minister said—we are going to ensure the UK is a net energy exporter by 2040. To get there we will need to explore all avenues available to us through solar, wind, oil and gas production, so it’s right that we’ve lifted the pause to realise any potential sources of domestic gas.

In 2021, it was decided that a climate compatibility checkpoint should be put in place, so that compatibility with the UK’s climate objectives is assessed as part of the decision on whether or not to endorse continued oil and gas licensing rounds.

In December 2021, a consultation on the design of this checkpoint was launched, running until the end of February 2022. A large number of detailed and thoughtful responses were received. The HM Government response, which is being published today, engages with many of the arguments put forward, and sets out the Government position on these. HM Government has also designed a checkpoint which takes the responses to the consultation into account; a document setting out this design and the tests to be included in the checkpoint is also being published today.

Having reviewed the results of these tests in the context of a 33rd licensing round, it has been decided that a 33rd licensing round is compatible with the UK’s climate objectives.

The Government understand that the North Sea Transition Authority will shortly be launching a new licensing round for oil and gas exploration. This round could result in the award of more than 100 licences to developers, strengthening the UK’s vital offshore oil and gas sector, putting more UK gas on the grid for longer, and bolstering the future energy security of the UK.

Shale gas extraction

The current pause (moratorium) on shale gas extraction was put in place on the basis that HM Government would only support shale gas exploration if it could be done in a safe and sustainable way, and that it would be led by the science on whether this was possible. The stated policy aim was to minimise disturbance to those living and working nearby, and to prevent the risk of damage.

Much has changed, however, since 2019.

In April this year, HM Government commissioned the British Geological Survey to advise on the latest scientific evidence around shale gas extraction, to assess progress in the scientific understanding which underpins Government policy, and to allow Ministers to consider next steps. Having considered their advice carefully, HM Government are publishing this report today.

The report makes clear that forecasting the occurrence of felt seismic events remains a scientific challenge for the geoscience community. It also makes clear that to improve our understanding we need more exploratory sites to gather the necessary data.

Geomechanical modelling has been an important tool in the United States for this purpose, but requires accurate mapping of sub-surface faults, for which more data is required in the UK. There have only been three test wells which have been explored for shale gas in the UK to date.

On the wider geopolitical stage, Putin’s invasion of Ukraine and the resulting restrictions on gas supply to Europe have impacted on global energy prices and the energy security of our neighbours and allies. This emphasises the need for “home grown” sources of energy to reduce our reliance on imports.

The Government remain committed to net zero by 2050, but we have to get there, and to get there we are going to need oil and gas. And domestic sources of gas clearly have a lower climate impact than shipping liquified natural gas by tankers halfway across the world.

Under these circumstances, HM Government consider it appropriate to pursue all means for increasing UK gas production, including shale gas extraction. The Government are therefore lifting the pause on shale gas extraction and will consider future applications for hydraulic fracturing consent with the domestic and global need for gas, and local support for developments, in mind.

While HM Government will always try to limit disturbance to those living and working near to sites, tolerating a higher degree of risk and disturbance appears to us to be in the national interest given the circumstances described above. With this in mind, it is important that the policy relating to shale gas extraction reflects this. HM Government will be reviewing this aspect of shale gas policy as part of a wider reflection on how to better support the industry throughout the whole life cycle of the investment, from initial exploration to large-scale production and I will provide an update on this in due course.

We will look to the North Sea Transition Authority and other licensing authorities to be proactive in extending existing consents and permissions where practicable, to support the development of energy resources in the national interest.

It is clear that we need more exploratory sites in order to gather better data and improve the evidence base and we are aware that some developers are keen to assist with this process. We look forward to seeing these proposals in detail.

Offshore energy strategic environmental assessment

HM Government have completed an offshore energy strategic environmental assessment (OESEA) of a draft plan/programme to enable further offshore licensing/leasing for offshore marine renewables, including wind, wave and tidal energy, oil and gas, gas storage including carbon dioxide storage, and offshore production and transport of hydrogen.

The renewable energy elements of the draft plan/programme cover the relevant parts of the UK exclusive economic zone and the territorial waters of England and Wales; for hydrocarbon gas storage it applies to UK waters, territorial sea and the relevant parts of the UK exclusive economic zone, and for carbon dioxide storage it applies to UK waters, the UK exclusive economic zone and relevant territorial sea, excluding the territorial sea in Scotland; for hydrocarbon exploration and production it applies to the UK territorial sea and the UK continental shelf; and for offshore production and transport of hydrogen it applies to UK waters.

A public consultation on the OESEA4 environmental report was undertaken between 17 March 2022 and 27 May 2022. All comments received on the draft plan/ programme and the environmental report have been considered by HM Government and a HM Government response for OESEA4 has been prepared and will be placed on the gov.uk website. This summarises stakeholder comments and HM Government’s clarifications and responses to them. The environmental report and the comments received have informed the HM Government’s decision on whether to proceed with the draft plan/programme.

HM Government have decided to adopt the draft plan/programme, with the area offered restricted spatially through the exclusion of certain areas together with a number of mitigation measures to prevent, reduce and offset significant adverse impacts on the environment and other users of the sea. On the basis of the evidence set out in the environmental report, which discussed the alternatives to the chosen approach, and the comments received during consultation, HM Government conclude that there are no overriding environmental considerations that would prevent the achievement of our draft plan/programme of offshore marine renewables leasing wind, wave and tidal technologies, offshore oil and gas licensing, offshore gas storage and carbon dioxide storage leasing/licensing, and offshore production and transport of hydrogen, provided appropriate mitigation measures are implemented along with future research. In all cases, the relevant competent authority should undertake any appropriate assessments prior to awarding licences or leases, where screening in accordance with the relevant conservation of habitats regulations shows this to be necessary.

The plan/programme based on OESEA4 will have a lifespan of approximately four years. HM Government, therefore, commit to refreshing the OESEA in two to three years’ time to account for the higher ambitions relating to offshore wind and hydrogen in the BESS that are expected to be delivered in the period 2026-2030 and any additional changes to the energy policy context, technology, and understanding of the environmental baseline and effects assessment. The associated documents have been placed in the Libraries of both Houses.

The statement made by Jacob Rees-Mogg, the Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 22 September 2022.

What a pleasure it is to be continuing on this theme—

Dame Angela Eagle (Wallasey) (Lab)

Get the right page!

Mr Rees-Mogg

Indeed, the hon. Lady is right to be saying that I need to find the right page because I am having some difficulty in finding the right page immediately, but do not worry. [Interruption.]

Mr Speaker

Order. Is there another copy we can give the Secretary of State? [Interruption.] He has got it.

Mr Rees-Mogg

I am very grateful to the right hon. Gentleman for asking his urgent question. I am glad to be able to announce that the moratorium on the extraction of shale gas is being lifted, and a statement about that has been laid before the House.

As I set out in the previous urgent question, it is important that we use all available sources of fuel within this country. It is more environmentally friendly to use our own sources of fuel than to extract them in other countries and transport them here at great cost, both financially and in terms of carbon. It is therefore something we need to revisit, and we need to revisit the seismic limits to ensure that shale gas extraction can be done in an effective and efficient way.

Edward Miliband

This is obviously a case of “the dog ate my homework”, and it is hardly surprising. Let us start by taking the Secretary of State’s excuse for lifting the fracking ban—that it will make a difference to the energy bills crisis. It will not, because gas is sold on the international market. The current Chancellor said so in February of this year:

“No amount of shale gas…would be enough to lower the European price”

of gas. In an article published yesterday, even the founder of Cuadrilla said that the Secretary of State is wrong. First, why does he not admit the truth that anyone who knows anything about this subject says his claim that fracking will cut bills is nonsense?

Next, let us come to safety. The 2019 manifesto, on which the Secretary of State and every Conservative Member stood, said:

“We will not support fracking unless the science shows categorically that it can be done safely.”

They are lifting the ban, but they cannot supply the evidence, and the British Geological Survey report published today certainly does not do it. So in the absence of the evidence, his approach is to change the safety limits. He says in his written statement laid before this House that

“tolerating a higher degree of risk and disturbance appears to us to be in the national interest”.

I look forward to him and his colleagues explaining his charter for earthquakes to the people of Lancashire, Yorkshire, the midlands, Sussex, Dorset and, indeed, Somerset who will be part of his dangerous experiment. Let me tell the Conservatives that we will hang this broken promise round their necks in every part of the country between now and the next general election.

The Conservative manifesto also said:

“Having listened to local communities, we have ruled out changes to the planning system.”

Does the Secretary of State stand by that promise, and how will he abide by the Prime Minister’s commitment to local consent? The truth is that he does not understand that we cannot escape a fossil fuels crisis by doubling down on fossil fuels. Renewables are today nine times cheaper than gas. The only way to cut energy bills and have energy security is with zero-carbon home-grown power, including onshore wind and solar, which his wing of the Conservative party hates and he continues to block. For communities in every part of our country, today shows that they can never trust a word this Government say again, and he has shown he is willing to break his promises to support dangerous fringe ideas that put the interests of fossil fuel companies above those of the British people.

Mr Rees-Mogg

There was plenty of energy in that, Mr Speaker, but it was, I am afraid, more sound and fury that signifies nothing. We know that shale gas is safe. It is safe in the United States, where it has been one of the biggest contributors to the decline in carbon emissions of any activity that has gone on in that country. We know, even if Labour Members wish to ignore it, that seismic activity of 2.5 and below on the Richter scale takes place millions of times a year across the world. Our standards for ground-level movements for construction work are double those that have ever been achieved by any shale gas exploration in this country. There is a huge margin over what we allow for building work against what has actually happened in terms of shale gas. The right hon. Gentleman seeks to deny the ordinary rules of supply and demand. He ought to be aware that when we increase supply and demand remains steady, that has an effect on pricing, and pricing is always set at the margin. The price of any commodity is set by the final user who demands that commodity. If supply exceeds demand prices fall, and any increase in supply helps to reduce costs.

But there is another point. We have—all of us— constituents with gas boilers, and we are going to have them for many years to come. Do we really want them to be dependent on strange dictatorships that wage war in this world, or do we want to have our own security, and our own supplies? Do we want to maximise what we receive from the North sea and from underneath our feet? This seems to me to be just good common sense. It is safe, it is shown to be safe, and the scare stories have been disproved time and again. The hysteria about seismic activity fails to understand that the Richter scale is a logarithmic scale. It seems to think it is a straight arithmetic scale, which of course it is not. Bringing on the supply will bring us cheaper energy, which we need, and that will help our constituents. It secures our supply, which will ensure that our businesses can continue to operate whatever the weather. This is of such importance, and it is sheer Ludditery that opposes it.

The statement made by Jacob Rees-Mogg, the Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 22 September 2022.

That is why I am saying that I am very grateful, Mr Speaker. I always think it is important that this House gets to know, and your generosity in setting a precedent where statements can be made on the days set aside for taking the Oath is, I think, a good one.

It is vital that businesses have the support that they need to pay their energy bills this winter. His Majesty’s Government are determined to grow the economy. We cannot do that if business becomes insolvent thanks to what is tantamount to blackmail by a malevolent state actor. His Majesty’s Government announced yesterday that they will provide a discount on wholesale gas and electricity prices for all non-domestic customers, whose current gas and electricity prices have been significantly inflated by global energy prices. That includes all UK businesses and covers the voluntary sector, such as charities, and the public sector, such as schools and hospitals. The scheme will apply to fixed contracts that have been agreed on or after 1 April 2022, as well as to deemed variable and flexible tariffs and contracts. It will be applied to energy usage for six months from 1 October until 31 March next year.

As with the energy price guarantee for domestic customers, in order to benefit from the scheme, customers do not need to take action. The discount will automatically be applied to their energy bills from 1 October. In terms of real-world savings, non-domestic users will start to see the benefits of the scheme in their October energy bills, which are typically received in November. The level of price reduction for each business will vary depending on its contract type, the tariff and the volume used.

We will publish a review of the operation of the scheme in three months to inform decisions on future support after March 2023. The review will focus in particular on identifying the most vulnerable non-domestic customers and on how the Government will continue assisting them with energy costs beyond the initial six-month period.

A parallel scheme—based on the same criteria and offering comparable support, but recognising the different market fundamentals—will be established in Northern Ireland. For those who are not connected to the gas or electricity grid, equivalent support will be provided for non-domestic consumers who use heating oil or alternative fuels instead of gas. Further detail on this will be announced shortly.

The speech made by Jacob Rees-Mogg, the Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 8 September 2022.

May I begin by adding my voice to those of other right hon. and hon. Members in wishing Her Majesty the Queen well from this House? It is a matter of the gravest concern to all of us when our sovereign is unwell.

I congratulate my right hon. Friend the Prime Minister not only on her appointment, but on the way she has chosen to meet this energy challenge: with immediate and decisive action. I thank her for introducing this debate, for ensuring that the contents of her speech were not leaked beforehand, which shows a proper respect for Parliament, and for seeing that her policy is robustly debated in this Chamber.

I thank the Chancellor, my predecessor at BEIS, for paving the way for this announcement. I look forward to working very closely with him to ensure that households and businesses are protected this winter and beyond. I also thank the right hon. Gentleman the shadow Business Secretary for his kind words about me in his opening comments. Indeed, we have had a friendly personal relationship over some years. I hope we can continue that while having, no doubt, some less friendly debates on these fundamental issues.

We need to understand why we are here. We are here because Vladimir Putin has weaponised energy supply as part of his barbarous attack in Ukraine. Last week, he turned off the main pipeline to Europe. It is a deliberate blackmail tactic against the west. Britain’s energy system must be strengthened and diversified to protect our homes and our businesses.

As we have heard over the course of this debate, our plan comes in two parts. First, we must get our constituents safely through this winter. We know how concerned people are about expensive energy bills. Some of the projected figures have been truly alarming and we are intervening to stave off an unprecedented crisis. It would be wrong to stand by as people struggle. I give the assurance to the hon. Member for St Albans (Daisy Cooper) that our plan for businesses will include care homes. That is fundamentally important. It would be madness to ignore other businesses too, as they see their bills spiral out of control.

The new energy price guarantee will ensure that bills are kept down, remaining at around £2,500 a year for the average consumer. This intervention reflects the severity of the situation we find ourselves in. The Government-funded support will take effect from 1 October, saving the average household around £1,000. That will be combined with the original support we announced.

I reassure the hon. Member for Kilmarnock and Loudoun (Alan Brown), who raised this question first, that we will act to help people on the lowest incomes. The Government have already announced a package of support that will see 8 million of the most vulnerable households receive £1,200 of one-off support to help with the cost of living, and all domestic electricity customers will receive £400.

We know that from biscuit makers to bars, businesses are worried about their bills. The Government’s price guarantee for businesses, which will be announced shortly, will bring down energy bills for the acute phase of the crisis. All businesses on variable contracts, whose fixed-price contract is coming to an end or that have agreed a fixed-price contract recently will be eligible to enter the new Government-guaranteed contract. That will apply to businesses of all sizes and include schools, nurseries and care homes, as well as manufacturers and retail. That is the short term.

Quite rightly, Opposition Members, particularly the Leader of the Opposition, asked who is going to pay for this. The energy bills guarantee is not a direct loan to customers or to energy suppliers. However, as the price stabilises in due course, the Government will need to consider when and how to recoup at least some of the cost of the scheme. The Opposition are all for taxation, Madam Deputy Speaker. That should not surprise you, as you know the inner workings of the Labour party better than most. None the less, all we get from the other side is tax, tax and tax again. It may be that we are at the highest rate of taxation in 70 years, but the answer is always more tax. It is their only answer to any question. Even the right hon. Member for Ross, Skye and Lochaber (Ian Blackford), the leader of the SNP, who used to be a very successful businessman, and therefore may know a thing or two about this, was advocating higher taxes. Now that he is a humble crofter, perhaps he thinks that is easier.

Ian Blackford

I am grateful to the right hon. Member—we go back a long way. He is, of course, right that I have a background in the City. No doubt he has read Shell’s quarterly figures, as I have done. Off the top of my head, the return on capital employed has gone up from 3% to 13%. By anyone’s definition, that is excess profit. It is right at times such as this that we take our share of that.

Mr Rees-Mogg

That is structurally wrong. Taxes need to be certain. If we are to encourage investment—and we need investment in this country—the tax policy has to be set for the long term. We cannot retrospectively pick people’s pocket; we need to tell them what the charge will be beforehand and keep it clear.

John Redwood

Would the Business Secretary like to remind the House that the Republic of Ireland deliberately chose much lower corporation tax rates than the rest of the advanced world and collects a far bigger proportion of its economy in taxes on business than we do?

Mr Rees-Mogg

My right hon. Friend will be glad to note that the Chancellor of the Exchequer, from a sedentary position, is agreeing with him. My right hon. Friend is a higher authority on this than I am, but we know that the cut in corporation tax led to an increase in receipts. Higher taxation is not the answer.

Looking at the long term, we must fix our broken energy system. We must have energy independence and become a net exporter of energy by 2040. We cannot be held captive by volatile global markets or malevolent states. We must tackle the root causes of the problems in our energy market by boosting domestic supply. We will invest in renewable energy with vim and vigour, accelerating the deployment of wind, solar and—particularly exciting, I think—hydrogen technologies. To reassure my right hon. Friend the Member for Pendle (Andrew Stephenson), we will invest in nuclear technologies, which also provide us with cheap and clean electricity.

I note that my hon. Friend the Member for Ynys Môn (Virginia Crosbie) said that her constituency is known as energy island. That is exactly what we need in this country. My hon. Friend the Member for Gloucester (Richard Graham) noted that not just Ynys Môn but the whole of the United Kingdom is energy island. We must use all the resources available to us, including tidal energy, as my right hon. Friend the Member for Maidenhead (Mrs May) said. This is a great opportunity.

James Sunderland (Bracknell) (Con)

Will my right hon. Friend give way?

Mr Rees-Mogg

I would love to give way, but time is very short.

We are fully committed to green growth and the green industrial revolution, and to net zero by 2050, but we have to get there, and to get there we are going to need oil and gas. We are therefore going to have a new oil and gas licensing round, which we hope to launch in October. I reassure the right hon. Member for East Antrim (Sammy Wilson) that we will work with communities and individuals to use shale gas as well, with the support of those who may be affected. The pause on extraction is being lifted through a written ministerial statement and will come into effect immediately. This will allow us to gather further data on seismic safety. It is fundamentally important, as any economist knows, that pricing is set at the margin. If you have more, it helps bring prices down. That is fundamental. It is not in any way contradictory to what we have said before. We will also have legislation to support people in Northern Ireland, which is fundamentally important. We must be one United Kingdom in how we do this.

I am very grateful for the many contributions that were made in the course of the debate, including by my hon. Friend the Member for Worcester (Mr Walker), my right hon. Friends the Members for Central Devon (Mel Stride), for Forest of Dean (Mr Harper) and for South Northamptonshire (Dame Andrea Leadsom), my hon. Friend the Member for Bolton West (Chris Green), my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb), my hon. Friends the Members for East Surrey (Claire Coutinho), for Watford (Dean Russell) and for Gloucester, my right hon. Friend the Member for Basingstoke (Dame Maria Miller), and my hon. Friends the Members for Ynys Môn, for Dudley South (Mike Wood) and for Sevenoaks (Laura Trott). I commend the motion on the Order Paper to the House.