House of Commons Hansard Debates for 14 May 1992

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10.11 pm

The Minister for the Environment and Countryside (Mr. David Maclean) : This is one of those rare parliamentary occasions. The hon. Member for Burnley (Mr. Pike) said that he was surprised that a Minister from the Department of Trade and Industry would not be replying to the debate. I am from the Department of the Environment. I am glad that on this occasion a Minister of State is able to answer, because we are discussing an important subject. I am also happy to note that, a new hon. Member having made his maiden speech, the most senior Minister available in the House is able to congratulate him. I fulsomely congratulate the hon. Member for Pembroke (Mr. Ainger). As my hon. Friend the Member for Dover (Mr. Shaw) said, many of us were good friends of Nick Bennett, who was an outstanding Member and a very good ministerial colleague. So I was glad to hear the hon. Member for Pembroke pay a warm tribute to him. I was also pleased with his remarks about his constituency. It is customary to say that one looks forward to hearing much more from a maiden speaker. On this occasion, I began to realise as he was speaking that he really knows the subject, whereas I have come to it new and have had to swot it up in recent weeks. The hon. Gentleman therefore will not take it amiss when I say that I hope that I shall not have to reply to him in future debates, considering that he is such a master of the subject. Others who do not have to reply to him will be pleased to hear his contributions. I congratulate him.

Mr. Pike : I intervene at this stage simply because none of my hon. Friends will have an opportunity in this debate to congratulate my hon. Friend the Member for Pembroke (Mr. Ainger) on his maiden speech. We echo the Minister's comments. My hon. Friend made a fluent and well informed speech. At the same time, I commiserate with my hon. Friend the Member for Pendle (Mr. Prentice), who has been present throughout the debate but has not had an opportunity to speak. He was the only one of my hon. Friends present to whom I did not refer. I thought that he would have an opportunity to speak.

Mr. Maclean : I, too, regret that the hon. Gentleman did not have a chance to take part in the debate. It is clear from the number of hon. Members present for an Adjournment debate how much interest there is in the subject. My hon. Friend the Member for Ribble Valley (Mr. Evans) tackled me on the subject outside the Chamber, before the debate commenced. I appreciate that there is much concern about the issue.

I am grateful to the hon. Member for Burnley for raising the matter, although I suspect that many people outside, like me until a few days ago, would have said, if asked to give an opinion about orimulsion, that it was the latest home decorating product. For many others, particularly those living near power stations where the fuel is burnt, or where it is proposed to be burnt, it is a serious matter of deep current concern. So I am pleased to have this opportunity to reply to the debate.

We live in a world where the market for fuels is constantly changing. Since the oil crisis of the mid-1970s and the increases in oil prices and generally greater volatility of the oil markets that followed it, the choice of oil as a fuel for power generation has become increasingly unattractive, as hon. Members pointed out. That is especially significant because, unlike, say, road transport,

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there are several other competing sources of energy which power generators can use. We have therefore seen a progressive decline in the utilisation of oil-fired power stations, such as Pembroke and Padlham, although they still play a part in the generation of our electricity.

Against that background, it is easy to understand the appeal of a new fuel, competitively priced against other fuels, available in large quantities and capable of being burned in oil-fired power stations with relatively minor modifications. Such, we gather, is the situation with orimulsion, a bitumen in water emulsion produced in Venezuela, where huge reserves are said to exist. That fuel is now being marketed around the world--in Europe under a joint venture with British Petroleum--with, as hon. Members said, some success. However, if the world today is characterised by a lively, ever- changing energy market, it is also witnessing an upsurge of concern for the environment. Significantly, we are now less than a month away from one of the most important environmental events ever held, the Earth summit in Rio. We are seeing a welcome growth in environmental awareness and concern here and abroad, which is affecting more and more areas of our daily lives. It is quite right that that is the case.

Energy production is one such area. The days when we could produce power by burning whatever fuel was most easily and most cheaply available, with little regard to environmental effects, are mercifully long gone. But now, more than ever before, the environmental aspects of power generation are a central concern in the energy industry. It is therefore right that any proposal radically to change an aspect of the industry, especially one involving a new fuel source, should receive careful, thorough scrutiny from an environmental perspective. It is no accident that this debate is being answered tonight by an Environment Minister : it is a sign, I assure hon. Members, of the importance that the environment is playing in the consideration of this new fuel. May I digress for a moment? I also assure hon. Gentlemen that we are proceeding with drafting our Environmental Agency Bill. It has not been put on the back burner, and we shall seek the earliest legislative opportunity to push ahead with it.

As a general rule, the electricity generators should be left to decide which fuels to burn and in what quantities. The hon. Gentleman may disagree with that philosophy, but subject to compliance with the non-fossil fuel orders, it is an operational matter for the companies. We now have a competitive electricity market with a number of new players. We also have a powerful regulator which oversees the operation of the market and safeguards the interests of consumers. However, like all other large-scale industrial processes, power generation is a source of pollution. For example, power stations account for about 70 per cent. of the United Kingdom's major sources of sulphur dioxide, one of the main causes of acid rain. Another reason why I am pleased to answer this debate is that I represent Penrith and The Border in the Lake district, where we, too, know a bit about acid rain. It is vital to exert proper control over the industry, given its implications for the wider environment. Thanks to the actions of my predecessors, that is exactly what we now have. The electricity generators, like other polluting industries, are subject to the rigorous system of integrated pollution control introduced under the Environmental

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Protection Act 1990 which is a unique first in Europe. It is no exaggeration to describe this as one of the toughest pollution control regimes in the world. It puts the United Kingdom at the forefront of environmental protection.

For example, we are playing a crucial part in the European Community's efforts to extend the principle of integrated pollution control throughout the EC. Pollution control knows no national boundaries. It cannot be artificially compartmentalised, especially when a single process may release pollutants into more than one medium. It therefore needs a broad, integrated approach, and that is exactly what we now have.

The hon. Gentleman and my hon. Friend spoke of the possible harmful effects of the burning of orimulsion. Even if I were able to, I am sure that the House would not thank me for going into a complex, technical explanation of the results of orimulsion combustion. I think that I could match the hon. Member for Pembroke on that. Thankfully, we have experts far better equipped to do so. However, I can confirm that, while on some counts orimulsion compares favourably with other fuels, it does give cause for concern on environmental grounds. In particular, the emission levels of some heavy metals, especially vanadium and nickel, are significantly higher than other fuels, and orimulsion does release more sulphur dioxide than other fuels per unit of energy produced.

It is therefore vital to ensure that any proposal to burn that fuel is carefully considered from the environmental perspective. I am happy to confirm that that is exactly what is happening. The combustion of fuels in power stations is one of the processes controlled by Her Majesty's inspectorate of pollution, under integrated pollution control, and no orimulsion--or, indeed, any other fuel--can be burned in any power station without its authority. I am pleased to note that, despite the concerns voiced tonight, no one has questioned the integrity or the rigour of HMIP. I heard what my hon. Friend the Member for Dover said about a meeting, and I will consider that possibility. However, I want jealously to guard the independence of HMIP. If that means that I have to refuse meetings with Members of Parliament, I hope that the House will understand the valid reason for doing so.

The inspectorate has received applications from National Power to burn orimulsion at its Padiham and Pembroke power stations, and from PowerGen to continue to burn orimulsion at its Ince and Richborough power stations. I am grateful to the hon. Member for Pembroke for mentioning electrostatic precipitators. At Richborough, the requirement to use electrostatic precipitators means that particulate emissions are exactly half what they would be if the station were burning coal. Furthermore, HMIP has required total sulphur dioxide emissions from both Ince and Richborough to be no higher than they would have been if the power stations had been burning fuel oil at full load.

All those applications are currently under consideration. I cannot predict the outcome of the inspectorate's deliberations ; indeed, it would be wrong of me to try. I have heard what has been said in the House tonight. I heard the comments about flue gas desulphurisation, but that is a matter for HMIP to determine. I am sure that the House will appreciate that, as any appeal would fall to be considered by my right hon. Friend the Secretary of State, it would be wrong of me to comment on the merits of the applications.

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Mr. David Shaw : My hon. Friend has made a valid point about the independence of HMIP. However, I am still concerned to clarify with him the extent to which Members of Parliament can actually question and become involved, as some hon. Members have, in the technical details. I sense that on both sides of the House there is a desire by Members of Parliament, who may not be technically trained but who have some limited technical understanding, to get down to the details. Do we have access to HMIP or do we have to go through a Minister ? How can we actually get at the details ?

Mr. Maclean : Perhaps the best thing would be if I produced a note showing the status of HMIP. That might satisfy all hon. Members. All the data sent to the HMIP go into the public domain and its decisions go on to the public registers. Anyone is entitled to send information to it for consideration and deliberation before it comes to a decision. It might also be helpful if I describe in that note the relationship that Members of Parliament could have with HMIP.

Mr. Pike : Will the Minister give us an assurance that, if HMIP says that orimulsion cannot be burnt unless certain conditions are met and National Power, or PowerGen, says that it cannot afford to meet those conditions, it will not be overridden?

Mr. Maclean : There is an appeal system, which I cannot prejudice by giving any guarantee about whether something will or will not be burnt. I am certain that HMIP will not hesitate to stipulate the provisions of whatever pollution abatement equipment it considers necessary as one of the conditions of any authorisation it grants. In reaching this decision, HMIP has a duty to ensure that, for example, any statutory air quality standards are not exceeded.

Concern has particularly been expressed at the possible damage burning orimulsion might do to the environment, regardless of any abatement measures which HMIP may require. Indeed, the hon. Member for Burnley has argued that its importation and use by the power industry should simply not be allowed. As I have said, I cannot accept the imposition of blanket restrictions of this kind. Provided the protection of the environment is properly taken into account, the Government consider that the generators should be granted the freedom to operate in the marketplace, without such unnecessary interference. We take the dangers of polluting emissions very seriously indeed, and those who doubt this should examine our record on acid rain. For various geographical and historical reasons, acid deposition and its harmful effects were not always recognised as a major problem in the United Kingdom. If we go back far enough in time, of course, the scientific understanding that we now have of such matters simply did not exist. We should take that point on board. Our island status and the measures, such as tall chimneys,

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taken to protect our main population centres meant that we did not always view this problem in quite the same way as some of our neighbours.

I am happy to report that those days are long gone. The United Kingdom is now playing a full part in international efforts to reduce the emissions which contribute to acid deposition. We have already made great progress. For example, our emissions of sulphur dioxide, one of the two main acid rain-causing gases, are down by almost 40 per cent. from 1970 levels. But we are not resting there--we agree that we need to do more.

We are therefore implementing fully the European Community's large combustion plants directive, under which we are committed to reducing our 1980 levels of emissions of sulphur dioxide by 60 per cent. by 2003 and of nitrogen oxides by 30 per cent. by 1998. The United Kingdom's national plan for implementation of the directive sets out specific annual emission limits for both National Power and PowerGen. I must stress that there is no question of the use of a new fuel such as orimulsion at a particular plant being allowed to cause the limits to be broken. Greenpeace's concerns are wrong.

Mr. Dobson : Will the Minister give way?

Mr. Maclean : No, I must get on.

We have spoken about the public concern about proposals to burn orimulsion. I hope that what I have said this evening will offer some reassurance to those concerned about this issue. These applications will not go through on the nod. Under our new legislation, the applicants will have to conform to requirements that are tougher and more detailed than any that we have seen before. I can also confirm that public participation is another crucial element in our pollution control apparatus. National Power's applications for Pembroke and Padiham have been advertised to the public and put on public display.

A substantial number of representations have been received and the inspectorate will take these carefully into account in reaching decisions on the applications before it. If an authorisation is issued, it will be placed in the public registers--held by HMIP and the relevant local authority--as will key documents relating to the operation of the plant such as any monitoring data on releases to the environment which are required to be supplied to HMIP as a condition of authorisation.

I recognise that the proposal to burn orimulsion at Padiham--and elsewhere- -is a cause of genuine concern in many quarters. I hope that what I have said will reassure some people. The electricity generators must be free to make operational decisions, but at the same time they must also meet rigorous environmental standards. Our pollution watchdog is scrutinising these applications and will insist--

The motion having been made at Ten o'clock and the debate having continued for half an hour, Madam Speaker-- adjourned the House without Question put, pursuant to the Standing Order.

Adjourned at half-past Ten o'clock.

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