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Tag: Owen Thompson

  • Owen Thompson – 2016 Parliamentary Question to the Ministry of Defence

    Owen Thompson – 2016 Parliamentary Question to the Ministry of Defence

    The below Parliamentary question was asked by Owen Thompson on 2016-02-02.

    To ask the Secretary of State for Defence, on what date the decision to cease displaying radioactive material hazard signs on vehicles carrying special nuclear materials was made.

    Penny Mordaunt

    The Defence Equipment and Support organisation decided to cease displaying radioactive material hazard warning signs on vehicles carrying special nuclear materials in July 2011. Before implementing this decision we sought legal advice and notified the regulator. The change was implemented in 2012 in anticipation of the transition to a single type of vehicle for the transport of both nuclear weapons and special nuclear materials and was needed in order to maintain the policy to neither confirm nor deny the presence of nuclear weapons. No changes were required to operating arrangements as a result of this decision. The Ministry of Defence’s arrangements for the safe transport of defence nuclear materials include the provision of information to the emergency services in the event of an incident; this does not rely on displaying radioactive material hazard warning signs.

  • Owen Thompson – 2022 Speech on Scottish Independence and the Scottish Economy

    Owen Thompson – 2022 Speech on Scottish Independence and the Scottish Economy

    The speech made by Owen Thompson, the SNP MP for Midlothian, in the House of Commons on 2 November 2022.

    A few weeks ago, Christine Grahame MSP and I co-hosted a cost of living support event in Gorebridge in my constituency. We invited along energy providers, community groups, food banks and suicide prevention charities. As constituents arrived and were able to access the help they needed, I started to think that it was a great success and that it was brilliant to see so many people there. But then I had to stop myself, because I started to think, “How did we get here? How did we become a society where food banks are normal and where we simply accept that poverty is growing and that suicide prevention charities face record numbers of calls?” The fact that we needed to hold that event at all is an alarming sign that the UK state has failed. When a country cannot guarantee its citizens a decent standard of living, with a roof over their head, heat in their home and food on the table, that country has failed to uphold its end of the social contract.

    The most shocking thing about this crisis is that so much of it is inflicted by the Government. For instance, the energy crisis is far worse in the UK than it is elsewhere, because the Government have kept the energy companies private, ensuring that the money from bills goes towards profit, not investment that could help to ensure security of supply. The severity of the cost of living crisis has been exacerbated by the Government’s incompetence, with a kamikaze Budget sending mortgage rates skyrocketing and the pound crashing, which means that there is less money in people’s pockets and that the money that remains is worth less.

    The truth is that the UK has been the poor man of Europe for years because the economy is set up to funnel wealth to the super-wealthy—to people such as the current Prime Minister—rather than to distribute it fairly to support those who need it most. Now, we are reaping what has been sown.

    There is no doubt that this is a global crisis, but while other societies have been ready to catch the poorest in their safety nets, the net in the UK is a glaring hole. Somehow, British exceptionalism has kept its grip on policymaking, and although we are no longer a particularly well-off society but one where a tiny number of people have immense wealth, the idea that we are exceptional has meant that the Government have refused time and time again to look abroad and follow best practices.

    To take the windfall tax, other countries have got serious about taxing the record profits that oil and gas companies have been making, but we have ignored the issue for months. Now we are left reeling from a failed Thatcherite experiment and looking down the barrel of austerity 2.0, with an economy so deliberately trashed that there is little option but to put money directly into people’s pockets, although the Government cannot even get that right. I recently met an 89-year-old constituent who cannot afford to heat her home because she, like thousands across Midlothian, relies on heating oil. The price of heating oil has skyrocketed to the point where she has spent £2,000 on it this year and expects to fork out at least another £1,000 over the coming winter. Yet the Government’s proposed support package for people using heating oil is £100—not even enough to get through a tenth of the winter.

    Angela Crawley (Lanark and Hamilton East) (SNP)

    Constituents in my area of Lanark have written to me about the fact that oil prices have continued to go up and that Government support is frankly woeful. Does my hon. Friend agree that the Government must do more to support those who are off the grid, especially in rural communities, because they simply have no other choice?

    Owen Thompson

    I absolutely agree with my hon. Friend. The support that is in place is welcome—I do not deny that, and I do not think anyone else here would—but we need much more, because far too many people, and especially those who are off the grid, have been left behind.

    At the moment, we are on a sinking ship. The UK’s future is not bright, and there is little reason to doubt that our children’s economic prospects will only become worse than ours. Therefore, the question is whether we look around the sinking ship, shrug our shoulders and say, “It’s been fine up till now. There’s no point trying to change it. We’ll be just fine,” or we try something different. We do not have to go down with this sinking ship. Certainly for those of us in Scotland, there is a lifeboat; it might be smaller than the boat we are currently on, but we get to be its captain, and the folk we share it with have the same direction in mind as us. Once we are out on the open water, we will realise that there are plenty of other wee boats out there that are the same size as us and that they are working together so that they can weather the storms far better than the lonely old SS Britannia ever could.

    That is what independence promises; it is not an instant fix, but it is the only reasonable path to a better future. Now, in a context where being part of the UK has left us with record inflation and soaring poverty, the idea that Scotland cannot afford independence is simply laughable. Norway was one of Europe’s poorest countries when it became independent in the early 20th century, and Ireland’s era of independence began with war and destruction. For them, however, independence was not the problem; it was the solution. Independence allowed them to grab hold of all the economic powers at their disposal and to respond to crises however they wished. Now, we look to both countries as models of stunning economic success.

    The truth is that we are in pretty dire straits as part of the UK. Even if we choose independence, we will inherit the mess that being part of the UK has left us with. That is not an argument against independence; it is a fundamental part of why we need it now. We can no longer afford to remain a part of this broken Union, and the people of Scotland need to be able to have that say, and have it soon.

  • Owen Thompson – 2022 Speech on an Early General Election

    Owen Thompson – 2022 Speech on an Early General Election

    The speech made by Owen Thompson, the SNP MP for Midlothian, in Westminster Hall, the House of Commons on 17 October 2022.

    It is a pleasure to serve under you in the Chair, Mr Mundell. It is a bit of a challenge to prepare for a debate like this, because we are living through the most unprecedented series of political earthquakes, with the ground constantly shifting beneath our feet. It is almost as though we are living in a time when the longevity of a Prime Minister or Chancellor of the Exchequer is measured in hours rather than months or years, so please forgive me if I keep an eye on my phone to ensure that Ministers and policies remain the same as they were when I rose to speak. It is good to see this Minister in his place. He is certainly not hiding under any desks, as it may have been suggested that others were.

    This short-lived Government have pivoted so many times already—there have been so many U-turns—that we have absolutely no idea what direction we are travelling in, but we are lurching speedily towards a cliff edge. In effect, all the promises and pledges so firmly given by the Prime Minister during the long and tedious leadership campaign and reinforced several times over the last couple of weeks have been abandoned. We have been left wondering whether the notorious mini-Budget was a mere mirage to our collective consciences. The tax cut for the wealthiest, the basic rate cut, the dividend tax cut and the corporation tax cut are all gone—along with the former Chancellor himself. The only positive bit, I guess, was the two-year energy cap, which provided some much-needed certainty to struggling households, but it is also gone; even it is not there now. So what next? Who knows? The Prime Minister might even have gone by the time I finish speaking and sit down, although who would take the poisoned chalice is another matter.

    Even for an Opposition Member, it is at times almost too painful to watch this embarrassing farce of a Government limping on. It feels like a particularly shambolic episode of “The Apprentice”, and at this stage I do not think I would be surprised if Lord Sugar suddenly appeared and fired the lot of them. It is certainly beyond any parody that could be imagined in “The Thick of It”. I am sure that a few of us could imagine, or begin to imagine, what might be coming out of the mouth of Malcolm Tucker if he were having to deal with such a situation.

    We know that it has gone too far when we can no longer tell the satire from the ridiculous reality, but the gross economic incompetence of it all has deadly serious consequences for millions of people across the UK. There are people who are working 40 hours or more a week and are still unable to make ends meet. Established businesses are at risk of going under because they cannot afford to pay soaring energy bills. Families are going hungry or are afraid of losing their homes.

    I held a cost of living event in Gorebridge in my constituency just on Friday past. I had invited the Prime Minister to attend so that she might be able to answer constituents’ concerns directly. However, despite watching out for her, I regret to inform the House that she did not attend—a bit like earlier today. I was hearing harrowing stories from many people struggling simply to make ends meet. They did not know where to turn. We have a fantastic sense of community in Midlothian and we had a great range of partners in attendance, so we were able to point people to some of the right places. But what can people do when the Government fail so spectacularly the people they are meant to serve?

    I therefore completely understand where the petition has come from and why it has gathered such a high number of signatures. It is now 633,000 and continuing to rise—I am watching the petition clock up signatures as I stand here. That number includes more than 1,000 people in my own constituency of Midlothian. People are absolutely scunnered by what they have witnessed. At a time of crisis, they want a competent Government of their own choosing, not a Prime Minister chosen by a few.

    In response to the petition, the Government argued that the UK’s is not a presidential system. I am glad that they finally acknowledge that, because the Prime Minister and her predecessor—whose paw prints are all over the mess that we are in—do not seem to have much truck with collective decision making. They blatantly disregard evidence and seem reluctant to inform Cabinet colleagues of their latest back-of-a-fag-packet policy. For some time, there has been an unhealthy trend in the UK towards more personality-based politics—something that perhaps needs to be reflected on in calmer times.

    Of course, having a Government we did not vote for is not something new for those of us in Scotland; it is the normal state over the last number of years. I am very grateful that we at least have a clear exit route in front of us to escape from this bourach: we have a modern, proportional parliamentary system working well at Holyrood already and a Scottish Government ready with an alternative plan for our future should the people choose it. Independence for Scotland is not a threat to the rest of the UK or the social bonds that we cherish. It is an opportunity for a more equal partnership, whereby Scotland could demonstrate to the rest of these isles the genuine alternative to the status quo.

    We could protect the fabric of our communities, look after vulnerable citizens and protect our landscapes and nature. We could build a new, greener industrial base, becoming the renewable powerhouse of Europe and rejoining our European partners in free trade and travel across the continent. We could value everyone, no matter where they come from, and create a fairer, wealthier and more equal society. That will create sustainable, shared prosperity far better than any trickle-down economics—relying on scraps from a rich man’s table—ever could.

    In Scotland, we have a cast-iron mandate for a referendum on our future, yet this discredited Government and—disappointingly, I have to say—the official Opposition still seem to block all democratic paths to achieve it. Choice is the key issue here, and that is something that seems to have been forgotten in the corridors of power in this place. The right to self-determination is a fundamental and inalienable right of all people. It is enshrined in international law, the UN charter and the international covenant on civil and political rights. The UK Government support that principle for other countries, but not, it seems, for Scotland. For this chaotic and unpopular Government to continue to say no to a referendum is more like the actions of a dictatorship than those of a democracy, and I hope the next Prime Minister will reconsider that position, whoever they are and whenever they come along.

    While I agree with the growing call for a general election, it is not a long-term solution for our broken system. I urge all democrats, whether or not they support independence, to get behind Scotland’s right to choose. Democracy is not a one-time event—the Prime Minister has been able to change her mind on her policies in the space of a matter of days, so why should the people of Scotland not be able to change their mind after eight years of broken promises? The ground has shifted many times. All the big claims from Better Together have been spectacularly wrong: staying in the UK did not keep us in the European Union, it did not protect energy prices, and it most certainly did not keep the economy on a steady course. The future of Scots’ mortgages and pensions has never been more uncertain than it is today. When circumstances change, the people have a right to change their mind, as the current Prime Minister demonstrates again and again with U-turn after U-turn.

    Whatever the party of government chooses to do next, we have to remember that the crisis we face did not begin with the current Prime Minister—the one who was Prime Minister at the time of writing, at least—and it will not end when she goes, if indeed she is still in post. We have had 12 years of Conservative mismanagement. We have energy policies that are unfit for purpose, and austerity policies bringing public services to their knees. We have no solution to the continued chaos from Brexit, which has been a disaster for our businesses, public sector, education and research, holidaymakers, travel and cultural life. Sadly, Labour has no answer to that point. Another general election might put a plaster on some of those wounds, but it will not heal the UK’s chronic problems. Independence for Scotland is an idea whose time has come, and it cannot come soon enough.

  • Owen Thompson – 2022 Tribute to HM Queen Elizabeth II

    Owen Thompson – 2022 Tribute to HM Queen Elizabeth II

    The tribute made by Owen Thompson, the SNP MP for Midlothian, in the House of Commons on 9 September 2022.

    I am here to offer the condolences of the people of Midlothian on this very sad occasion. Among the ebb and flow of people, politics and power, Queen Elizabeth has always been there, a steadfast figure in our shared history. With quiet dignity, she made her mark on momentous global events but, perhaps more importantly, she touched people in a very personal way. Across these isles, the Queen is part of the backdrop of the stories of all our lives.

    The Queen brought grace, warmth, dignity and humour to her role, which in turn brought her respect from people across political divides. Her passing brings an unsettling time, a time of grief and reflection, and for many a reminder of loved ones lost. People across the nations may understandably feel like they have lost a loved one of their own, yet preparations are already under way and the duty occupies the new King Charles III, showing that, in the immortal words of Terry Pratchett, it is true that the only thing known to travel faster than ordinary light is monarchy.

    Regardless of our views on monarchy, the Queen is respected for her remarkable dignity, with which she held herself throughout trying times. We appreciate the twinkle in her eye, her humour, her love of animals and the humility with which she held a far-from-humble office.

    She was the first Queen Elizabeth in Scotland, of course, with a lineage stretching back to the Stuart dynasty and Mary, Queen of Scots. It is said that in Scotland, hosting barbecues in the hills of Balmoral, was where she was happiest. Older generations will fondly remember the royal tour of Midlothian back in 1961, where she was out and about across the county, viewing aspects of everyday life and visiting Rosslyn chapel, the rural housing schemes at Temple, the carpet factory in Bonnyrigg and the Loanhead memorial park. There was no standing room left in the streets of Dalkeith at that time, with crowds climbing on the roof of the bus station to seek a glimpse of the young queen.

    More recently, she was warmly welcomed back to Midlothian to the reopening of the Borders railway, unveiling a plaque at the station in Newtongrange, where she was welcomed with a wonderful performance by the Newtongrange Silver Band, who express their condolences at this time. People from all walks of life in Midlothian wish to convey their respect, to make it clear just how fondly the Queen is remembered. Condolences have been expressed online by community groups across Midlothian, in addition to Midlothian’s lord lieutenant and provost, who have already held local tributes and, in line with many other places, opened up books of condolence across council venues in Midlothian to allow people to pay their own tributes.

    As a previous member and current chair of the all-party parliamentary group for the Boys’ Brigade, I have always been keenly aware of Her Majesty’s role as the organisation’s patron. I know that all in the Boys’ Brigade world, the entire Boys’ Brigade family, wish to pass on their thoughts and prayers at this time.

    We are all now getting our heads around the changes that this will make to the basic things that we all took for granted. The ground has shifted beneath our feet. The lads at my local post office in Loanhead said, “Every day we send hundreds of letters and parcels bearing the Queen’s head.” This will now be no more. May she rest in peace.

  • Owen Thompson – 2022 Speech on Independent Brewers: Small Brewers Relief

    Owen Thompson – 2022 Speech on Independent Brewers: Small Brewers Relief

    The speech made by Owen Thompson, the SNP MP for Midlothian, in the House of Commons on 6 September 2022.

    It is good to see such an amazing turnout for tonight’s Adjournment debate and such an interest in small brewers relief!

    Madam Deputy Speaker (Dame Rosie Winterton)

    Order. Will right hon. and hon. Members please leave quietly, because if they do not, we will not be able to hear the Adjournment debate?

    Owen Thompson

    Thank you, Madam Deputy Speaker. Take two. Politicians like to talk about how everything, in one way or another, is political. We would say that, wouldn’t we? But I think it is genuinely true; decisions taken in places such as this set the scene for our broader social and cultural lives. How we answer questions such as what gets support, what is left to the whims of the free market and how much is something taxed can have a direct impact on how people live, what products they use, what they eat and what they drink. That is certainly the case when it comes to beer.

    When we look at Scotland and the UK’s independent brewing scene today, we see diversity and growth, but this is not how it has always been. Only 20 years ago, there were only about 400 brewers in the UK, whereas today the number stands at about 1,900, which is five times as many, with nearly one in every parliamentary constituency. Midlothian, my constituency, punches well above its weight when it comes to brewing, as it does in many other regards; to name just a few local companies, we have Stewart Brewing, Cross Borders, Top Out, Otherworld and Black Metal. The overall picture in recent years has been a booming sector coming out of nowhere and making a huge economic impact.

    According to the Society of Independent Brewers, which is represented here tonight with Barry Watts, Keith Bott, Eddie Gadd, Roy Allkin and Greg Hobbs in the Gallery—I am delighted to see them here and I thank them for their support in campaigning on this issue—small independent breweries contribute about £270 million to GDP each year and employ about 6,000 full-time staff. That is an average of 4.1 employees per brewery. A great deal of that success is precisely because in 2002 the Government of the day recognised that existing policy—beer duty—was artificially holding back a sector. In addressing that, politics has enabled craft beer to flourish, to the point where it is now embedded in our culture. Much of this is thanks to small brewers relief, which celebrates its 20th birthday this year. Conveniently, today of all days, the Five Points brewery in Hackney hosted a 20th anniversary celebration to mark the good that SBR has done. Sadly, parliamentary business meant that I could not make it along, but I am told that it was a roaring success, and I hope the Minister will join me in congratulating the organisers.

    SBR was introduced to help smaller craft brewers compete in a marketplace dominated by large and global brewers. It allows smaller breweries who make less beer to pay a more proportionate amount of tax, as with income tax. For those who produce up to 5,000 hectolitres a year, which, for clarity, is about 900,000 pints and enough to supply around 15 pubs—or one Downing Street Christmas party, perhaps—SBR means a 50% reduction in the beer duty they pay. Above 5,000 hectolitres, brewers pay duty on a sliding scale, up to the same 100% rate that the global producers pay. This enables brewers to invest in their businesses, create jobs and compete with the global companies.

    However, SBR has always had a major glitch. Once a brewer makes more than 5,000 hectolitres, the rate at which duty relief is withdrawn acts as a cliff edge. As a result, instead of empowering small brewers to grow, SBR puts up a barrier, and all because of a wee technicality. It is not the sort of thing that should take years and years to address, but sadly that is exactly what has happened.

    As far back as 2018 the Treasury announced a review of SBR to address the cliff edge. Since then, brewers have been barraged with a review in 2019, a technical consultation in 2021, a call for evidence on the alcohol duty system, and a consultation on yet another new system this year.

    Liz Saville Roberts (Dwyfor Meirionnydd) (PC)

    I think a number of us were discussing this matter back in November 2020. One of the drivers then was the sense that we needed to support small, independent brewers coming out of covid. Here we are almost two years down the road. We need to support them in relation to covid and in relation to energy. The need to incentivise support from this Government—we all agree how important the brewers are to our communities, as well as to the economy—is just as important now as it was then, if not more so. We would welcome a supportive response from the Government.

    Owen Thompson

    The hon. Lady makes an excellent point. I will speak later about some of the issues that businesses currently face with regard to energy costs.

    Jim Shannon (Strangford) (DUP)

    In my constituency, as in the hon. Lady’s, we have breweries. I am reminded of Bullhouse Brewery in Greengraves Road in Newtonards, a local family business. It produces an incredible product that sells well, but it is a small brewery. It really is in that category. Without the assistance of small brewers relief, there is no guarantee that our independent brewers would be able to survive. Does the hon. Gentleman agree that to ensure that our local brewers are able to remain comfortably on their feet, there must be greater relief on their beer duty to ensure that they are not penalised by crippling tax in years to come? The very fact of what local brewers do means that they are intensive users of electricity so the costs for them are multiplied to a place where they may not be able to survive.

    Owen Thompson

    I agree with the hon. Gentleman. Many small family brewers are so much a part of their local communities. It is not just about the business, it is what they do for their local communities.

    Each proposal that the Government have brought forward so far has been a step up from the last, but has missed the mark in crucial ways. So let us look at the most recent reform package that the Treasury has put on the table—what it gets right, which it does, and where we still have some way to go. I welcome last year’s announcement that the 50% rate would be reduced to 2,500 hectolitres. This came off the back of a great deal of lobbying from campaign groups and Members across the House, and demonstrates the cross-party willpower to get this right for our brewers. That is not to mention a public petition of more than 50,000 signatures. But issues remain.

    Brewers cannot wait any longer for another half-right, half-wrong proposal. This time, the Treasury must listen to brewers’ calls, act decisively, and implement that decision. No more leaving brewers in the lurch. They have a right to know the final details of what the Government are planning and when it will be introduced so that they can be prepared for the changes. So, having spoken to SIBA and to local brewers in Midlothian, I am asking the Treasury to address the following problems in its most recent proposals with transparency and urgency. I and many small brewers have serious concerns about the ways in which these reforms could turn small brewers relief into big global brewers relief. Time and again, the current proposals open the door to benefiting the big players, and it is almost starting to look as if that is a feature, not a bug. For one, the Treasury needs to scrap its plan to set the start and end point of relief depending on the UK’s average alcohol by volume. This nationwide average is heavily skewed towards global brewers, and it needs to be the average of small brewers instead. Then we have the fact that the reduced rate of SBR will be widened from 2.8% to 3.4% ABV, at £8.42 instead of £19.08.

    SIBA has told me that it is concerned that this allows large brewers to undercut smaller ones—they could easily cash in on the benefits by altering their recipes to a lower ABV. Not only would that cost the Treasury an estimated £200 million a year in lost revenue, but it would fundamentally go against the spirit of SBR. On top of that, we have the Treasury’s decision to maintain the Farmgate exemption, which exempts 80% of cider makers from paying any duty. Small cider producers absolutely deserve parity of support, but there is no getting round the fact that the cider sector has a very different landscape. Global producers account for 87% of the cider sold in pubs, so it is global producers again that disproportionally benefit from the Farmgate exemption.

    According to SIBA, taxing cider at the same rate as beer could raise £360 million a year for the Treasury, so why is it not happening? Are the Government scared of upsetting big business yet again? Using SBR reform as a means of opening the door to advantaging global brewers just does not make sense, yet it seems to be the direction of the Treasury. At best, this is an honest oversight. At worst, it is as if the Treasury is trying to stick to these plans no matter what. I think that questions need to be asked about what communications and hospitality the Treasury might have received from some of these large global brewing companies. I urge the Minister to ensure that that is not the case and that small brewers relief is genuinely to support small brewers and not be that in name only.

    Aspects of the latest proposals for SBR reform also undo some of SBR’s spirit of innovation and growth. When calculating a producer’s average ABV, the proposed new small producer relief will include everything the producer makes—beer or otherwise. I am sure that it has not escaped the notice of the Minister or others in the Chamber that many small brewers are branching out and not simply making beer but also spirits such as gin or whisky, and this innovation should be welcomed. However, under the current plans, producing spirits will send a brewer’s average ABV skyrocketing. Small producer relief will act as a roadblock to innovation. Instead, the average ABV calculations should only include products of up to 8.5%—the same amount that actually qualifies for relief.

    The Treasury also needs to urgently clarify some issues around its simplification of ABV bands surrounding SBR. It is welcome that SBR will now apply to beer below 2.8%. That can only encourage a trend of lower alcohol beer to aid in healthier drinking habits. However, will this affect brewers that currently receive up to 50% relief on beer between 2.9% and 3.4%. There is zero clarity on this and brewers need an answer. I urge the Minister to address this in his response.

    Furthermore, under the current proposals, the Treasury is planning to introduce a reduced rate of about 5% for draught products below 8.5% ABV in large containers of at least 40 litres. This is a positive step forward, but why stop there? The Minister will be aware of SIBA’s “make it 20” campaign. Small brewers and community pubs often use 20 or 30 litre containers to keep the beer fresh. Even some of the larger pub chains are using that size of containers because of the freshness of the product. Will the Minister commit to expanding the reduced rate to include containers of that size? Go on, prove that the Treasury does actually care about the wee guys after all. Crucially, the Minister needs to guarantee that this is full SBR, by ensuring that relief fully applies in cash terms to the lower rate, main, higher and the draught products rate so that small brewers can continue to compete.

    On top of this, the way in which the small producer relief is calculated is a completely untested system. Rather than using a simple percentage, brewers will have to consider different cash reliefs at different alcohol bands, based on hectolitres of pure alcohol. It is unnecessarily complex and could act as a cash cap, once again discouraging brewers from innovating.

    Brewers do not just need solutions to those issues; they need them to happen now. Frustratingly, however, delay and confusion have been the name of the game so far. First, brewers were promised an announcement on the final details of SBR reform before the summer, but it would appear that the Government have been a bit too busy over the summer to have got around to it, so it never happened. I hope the Minister will take today as an opportunity to give a long-awaited update and maybe even a date of publication for it. Secondly, SBR reform has been rolled into the wider alcohol duty review. Small brewers simply cannot wait for that review’s findings, so I hope the Minister will listen to calls for the reform to be progressed on its original timetable for February 2023.

    This is not good enough. The urgency of supporting the brewing sector is possibly more serious now than ever before. Under this Government, the mass closure of pubs and breweries is more likely than it has ever been. The industry is facing a multi-faceted crisis of covid recovery, energy price hikes, Brexit and climate issues.

    The brewing industry was one of the pandemic’s worst-hit sectors, with pub closures locking it out of 80% of its sales. Production fell by 40% in 2020 and remained 16% below 2019 levels in 2021. On average, each small brewer came out of the pandemic with £30,000 of debt. The Scottish Government’s brewers support fund provided millions of pounds of direct support for the sector, but there was no equivalent from the Westminster Government, whose wider package of hospitality support failed to include hundreds of brewers. As a result, the UK lost 160 active brewers during the pandemic and has lost between 40 and 60 more this year.

    Yet there is a growing consensus in the sector that the current crisis is far more worrying than even at the height of the pandemic. Skyrocketing energy bills are putting brewers’ futures at risk. One Midlothian brewer told me that their electricity bill was currently triple what it had been a year ago, at an unimaginable £90,000 a year. They estimated that by next year it would reach £180,000. Another local brewer is paying £21,600 more on energy this year than it did last year, almost enough to hire yet another a new employee.

    The energy crisis also has indirect effects on the supply chain, as the energy cost of producing certain materials skyrockets. For example, I have been told that the price of buying cans to put beer in has risen from 9p to 14p, leading to massive increases in costs.

    Then we have Brexit, which has created not only product movement issues, but a change of attitudes among buyers on the continent. At a time when the cost of living crisis could mean people spending less money in pubs, the last thing brewers need is a complicated export processing system, but that is exactly what Brexit has given them. A brewery in Kent that was chosen by the Department for International Trade as a Brexit export champion recently revealed that it only has one EU customer left. When EU buyers look at the paperwork needed to trade with UK brewers, it seems the conclusion they come to is, “Why bother?”.

    The climate crisis is also wreaking havoc on the industry. With the recent high temperatures and drought, hop harvests in Europe are expected to be down 20% to 40% on last year, which means higher prices yet again in the coming months. As if that picture was not worrying enough, there is yet another shortage of CO2, a key part of the brewing process, again partly due to energy prices.

    There are glimmers of hope that I have seen when speaking to local businesses throughout the summer. Many are responding to energy prices and CO2 shortages by installing green technology to help with renewable energy generation, storage, electrolysis and CO2 recovery. The Government might not be engaging with long-term planning to adapt to this crisis, but local businesses in Midlothian certainly are. They are turning up the dial on the green revolution in the place that matters most: their own back yards.

    However, that kind of long-term investment is exactly that—long term. The up-front costs can be prohibitive for many, while Government funds such as the industrial energy transformation fund are again aimed at larger businesses. Distilleries benefited from £11 million to help them to go green, so I would be grateful if the Minister would consider further steps to help small and medium-sized enterprises such as small brewers to cover the up-front costs of some of those innovations.

    I am here because of Midlothian, to fight the corner of its residents and businesses. That is why I have been talking to local businesses over the summer to understand the issues they are facing in the midst of this crisis, and it is why I am standing here today to communicate those messages to the Government. That is how the system is meant to work. It would be a huge failure of the system if the Treasury were to shrug its shoulders and plough on with these poorly thought-out plans regardless.

    Midlothian is blessed with many independent brewers, which are a huge asset to the local economy, the community and its culture, but the Treasury’s current proposals for SBR reform seem to put global producers first. They undermine the incentive to grow and do not go nearly far enough to support these valued businesses through the energy crisis, which is existential for many. The back and forth of four years of fiddling with SBR reform simply has to end. We need the Government to act today to give brewers clarity on what reform will look like, to address the concerns about SBR reform benefiting global companies and discouraging innovation, and to deliver urgent support for energy bills and switching to green energy production. That way, I hope that we can continue to raise a glass to our independent brewers for years to come, because they give so much to all our communities.

  • Owen Thompson – 2021 Speech on the UK Space Industry

    Owen Thompson – 2021 Speech on the UK Space Industry

    The speech made by Owen Thompson, the SNP MP for Midlothian, in the House of Commons on 4 February 2021.

    I beg to move,

    That this House has considered the future of the UK space industry.

    I am delighted to have secured this important debate today and I thank the Backbench Business Committee for allocating time for us to consider such an important topic. We all need good news stories in these difficult times, and I believe that the growing space industry, with timely and sensible support from the Government, could quite literally provide a rocket boost to the economy and be a force for good for the country and the planet.

    Space is one of the UK’s fastest growing sectors, trebling in size since 2010. It will inspire the next generation and provide fantastic opportunities in science, engineering and technology. It has huge potential for the levelling-up agenda, creating highly skilled jobs right across the UK from Shetland to the south-east of England. It can also play a crucial role in measuring and meeting climate change targets. I welcome the fact that space has been recognised as a critical national infrastructure, in that we now depend on space for navigation, communication, broadcasting, running public services and increasingly for national security. It impacts all our everyday lives and has the potential to really enhance them. So while I am delighted by the recognition of the scale of the potential for space, there needs to be a better co-ordinated and determined effort to support the industry to reach its goals, and I look forward to getting the details on that from the Minister later today.

    Space is already a growing success story. It supports 41,900 jobs in 13 of the regions and nations of the UK, bringing in some £14.8 billion in 2016-17. The Scottish space industry also punches well above its weight and is home to almost a fifth of the total jobs in the UK sector, valued at £880 million in 2017-18. Scotland now hosts more than 130 space organisations, including the headquarters of 83 UK space firms. We now need to build on that strong base to be globally competitive at every stage of the process from the design and manufacture of smaller satellites through to the launch and the interpretation and application of the satellite data produced. We have our unique selling points, and we are making great progress. Glasgow is now a European capital for manufacturing small satellites, building more than any other place outside California.

    Patrick Grady (Glasgow North) (SNP)

    I congratulate my hon. Friend on securing the debate. He is absolutely right about the importance of the space industry and the significance that it has for Glasgow’s economy. Research in the space sector is hugely important as well. Madam Deputy Speaker, I was sporting a University of Glasgow mask, just as my hon. Friend was sporting an Irn-Bru mask. The University of Glasgow has played a huge part in the identification of gravitational waves, for example, which is helping our understanding of the universe as well as driving forward technological developments.

    Owen Thompson

    My hon. Friend is absolutely right. Use of the data that we can gather from space is important in so many different ways that can contribute to so much that we can take forward.

    Innovations by companies such as AAC Clyde Space, Spire Global and Alba Orbital are already driving this world-class agenda. We are leading the way in rocket development in Europe through firms such as Skyrora in my Midlothian constituency and Orbex in Forres. We are making progress in the research and analysis side of the industry, and companies such as Ecometrica, Carbomap and Space Intelligence are helping to move Edinburgh towards becoming the space data capital of Europe. Edinburgh is the only place in the world to work with a NASA robot, the Valkyrie, outside of its headquarters.

    Key industry players such as Ukrainian-born Skyrora boss Volodymyr Levykin tell me that they moved here because of the connections, the skilled workforce and our suitability as a place to live. Scotland is developing a space industry ecosystem, and the more it develops, the more it triggers further exponential growth. The Scottish Government were therefore right to identify space as a key priority for future growth. Their support has helped to give the burgeoning young industry a shape and structure, with the ambition to be Europe’s leading space nation and capture a £4 billion share of the global space market by 2030.

    The Scottish Space Leadership Council has helped to bring together key figures from the public and private sectors, to ensure that their views are represented at all levels of government and to drive growth and collaboration, but we need co-ordination across all levels of government. A space strategy has often been promised, but we are still waiting to see it delivered. I am sure those watching today’s debate will be as keen as I am to hear what the Minister has to say on that front. To take things forward, we need to get low-cost access to space from UK soil. It is good news that seven UK spaceport sites are working together through the Spaceport Alliance to support launch activity. It is also good news that the space hub to be built in Sutherland’s A’ Mhòine peninsula received planning permission last year. With locational advantages for flight paths and access to orbits that 95% of small satellite launches require, it is now set to be a national centre for vertical launch and could support 400 jobs in the highlands and islands by 2025.

    Yet getting the regulations in place is at times more like moving through treacle than rocketing away into a new space future. We need to get the regulations to permit rocket launches, to give clarity about how the system will work and to get it right. The framework was set up in the Space Industry Act 2018, but it is still not in place, and we still await the outcome of the consultation process. When we hear the results, I certainly hope that the Government will have listened carefully to industry voices and taken their concerns on board. So far there has been a lot of dither and interdepartmental confusion, and unfortunately a lack of determined leadership from the Government on these regulatory issues. I might be tempted, Madam Deputy Speaker, to suggest that a rocket somewhere might be helpful, but I shall resist. However, it is not always clear who is in the driving seat, if anyone.

    We cannot jeopardise the achievements of an innovative home-grown industry by letting it drift and losing out on launch capability to neighbouring nations. The Minister will be aware of the real threat of international competition to UK launch businesses. One of our home-grown companies, Skyrora, has already tested a rocket with a 26 km altitude, but it had to do so from Iceland, where the regulations were taken forward, with all the essential safety aspects, but more quickly and far more favourably than has been managed here.

    The concern is that the licence application process for launch will take far too long to process, resulting in the industry being uncompetitive. I hope the Minister can assure the House in her response today that there is a development strategy in place that embraces all parts of the space industry and has a clear imperative around which the Government, regulators and industry can coalesce to ensure the full potential of space ambition.

    I was slightly concerned that, despite not having our home-grown regulation sorted, the Government were so happy and keen to sign the transatlantic technology safeguards agreement, to enable US launches from UK soil, potentially to the detriment of the industry here. The TSA was signed last June and announced by press release, but the text was not made public until October. Many industry players in the UK say they did not have a chance to read and comment on the plans until that point and had not been consulted on the details, nor was there an opportunity for questions and debate in this place, despite the promise given in response to written questions that I submitted. This might turn out to be a benign agreement, as the UK Government have claimed, but there has been no process to scrutinise it, and some aspects certainly raised the concern that UK start-ups could be ousted for big US-based corporate players.

    The Government must do more to allay industry fears that it could transpire to be an exclusivity agreement, and they must reassure the industry that they understand and are sensitive to the commercial context in which these companies operate. The industry remains in the dark about how the agreement will actually function in practice, and it will only see the impact once it starts to acquire export licences. That kind of scenario testing should have been conducted openly and transparently beforehand.

    Some might question why we are talking about space at all, in the midst of a public health emergency and when people cannot feed their families, but space shapes all our lives. The sector helps to keep us safe, and it is precisely the sort of high-skilled growth industry that we need to support to drive the economy to recover.

    There is also a responsibility—the green role that could be carved out by the space industry, which the Scottish Government are certainly very keen to pursue. Space is central to tackling environmental and social justice issues around the globe. Forget the outdated image of a space race, with astronauts boldly going where no one has gone before. The future will be very much focused on making things better where we are now. Data from satellites plays a crucial role in the fight against climate change and finding solutions for major issues that scar our planet. Some 35 of the 45 essential climate variables defined by the UN are measured from space. Similarly, of the 17 sustainable development goals set by the UN with an aim of ending poverty by 2030, satellite data plays a critical role in 13.

    Data from earth observation satellites has been used to combat wildfire spread in the Amazon, to monitor glacier melt and air pollutants, to aid disaster relief operations, to measure ozone damage, to measure damage from natural disasters, such as the Fuego volcano, to track and predict malaria outbreaks and to tackle illegal deforestation and pirate fishing vessels.

    It is great to see Scotland leading the way. Satellites built and launched in Scotland can monitor the environment in ways not previously possible, including mapping global carbon levels. Glasgow University and Strathclyde University focus on that work with their innovation district, and I welcome plans for the new £5 million satellite centre involving the universities of Edinburgh and Leeds, which will use cutting-edge satellite technology to help combat climate change, including helping lower the risk of people being affected by flooding.

    Rocket launches do not exactly have a reputation for being green, but the new space industry must be an environmentally responsible one. Efforts must be made to reduce harmful emissions at launches, and I would like to see a role for environmental regulators such as the Scottish Environment Protection Agency in regulating spaceflight. The good news is that modern micro-launches being developed are a world away from the traditional massive gas guzzling old ones. Orbex, for example, built a micro-launcher fuelled by bio propane, which produces 90% fewer emissions than standard kerosene. Skyrora has successfully tested a fuel called Ecosene, which is created from plastic waste that would otherwise have gone to landfill.

    In conclusion, the UK space industry is a massively positive story, but to ensure a happy ending, the Government must: give clarity on their long-term strategic goals; sort out the regulations with urgency; improve the level of scrutiny and consultation in their agreements; show an understanding and sensitivity to market forces; and show ambition in harnessing the potential of space in boosting our post-covid recovery and in tackling climate change. We are at the edge of a vast universe of possibilities for the space sector, so it is vital now that the Government provide the necessary vision, energy and direction to propel us forward.

  • Owen Thompson – 2020 Speech on Covid-19

    Owen Thompson – 2020 Speech on Covid-19

    Below is the text of the speech made by Owen Thompson, the SNP MP for Midlothian, in the House of Commons on 12 May 2020.

    I begin with an observation: there had been a consistent approach across the four nations, but, at a time when clarity is critical, we find ourselves in a situation where three of the four nations of the UK are still trying to be clear, consistent and cautious in their approach to tackling and beating the coronavirus pandemic; it is a great pity that the Prime Minister muddied the waters so badly over the weekend. While it is absolutely the Prime Minister’s right to change from a very clear “Stay at home” message to the imprecise “Stay alert” message for England, it is irresponsible to spread the change in the media as if it applied collectively across the entire UK without even consulting the Scottish, Welsh or Northern Irish Governments. This is a public health matter that is rightly being considered by the devolved Administrations on the basis of scientific evidence. It seems that the UK Government’s idea of a four nations approach is less about working respectfully together and more about, “Do as we say.”

    The advice in Scotland remains clear. For the avoidance of any doubt, I will reiterate it here: stay at home, protect the NHS, save lives. While the pandemic has undoubtedly brought challenges, it has also brought ​out the best in our communities. From fundraising to helping neighbours to the willingness of our communities to help, it has been incredible, nowhere more so than in my own Midlothian constituency, with resilience groups in Bonnyrigg and Lasswade, Dalkeith and Woodburn, Danderhall, Eskbank and Newbattle, Gorebridge, Howgate, Loanhead, Newtongrange, Penicuik, Roslin and Bilston, Rosewell and the Tynewater area. I make particular mention of the Mayfield and Easthouses community resilience team, which has so far delivered more than 3,550 hot meals to elderly and vulnerable members of our community. There will undoubtedly be other amazing examples of help and support, and Midlothian Council’s #KindnessMidlothian campaign is certainly well-named to reflect that.

    I also for the most part welcome the Treasury’s response to this pandemic, although there are many areas that still need to be addressed. I welcome the business support that has been put in place by the Chancellor and his efforts so far to resolve problems that have emerged with the schemes, but a lot more urgently needs to be done to help those still left behind. I have many constituents who have yet to receive any support and who had a viable business but cannot get a loan to see them through. The business interruption loan scheme is too cumbersome, and too many banks are still failing to lend. While the bounce-back scheme tackles some of those issues for smaller businesses, the reports that I have heard suggest that it remains far from a streamlined process, and there are only five accredited lenders compared with 50 for the interruption loan scheme. There is also still the issue of support for the self-employed, particularly those who left a good job to run their own business.

    I welcome the extension of the furlough scheme announced by the Chancellor earlier today and the suggested flexibility. I am keen to see the detail of that much more clearly. As we move forward, we need to ensure that protection remains in place for those who need it. At the end of the day, I argue that the best and most flexible support that could be put in place would be for the Government to introduce a universal basic income and genuinely ensure that nobody is missed through these tough times.

    Protecting people’s lives while they are protecting their livelihoods is a complex matter. One size does not fit all and a degree of flexibility to suit differing circumstances is needed from Government—flexible support and flexibility over strategy in the different parts of these isles. I welcome the more cautious approach from the Scottish Government in easing lockdown. I advise the UK Government to take a similar approach. I appreciate that they would choose not to, but they must respect the devolved settlement and not undermine the clarity of message we have here in Scotland.