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The Minister for Energy (Malcolm Wicks): I thank my hon. and learned Friend the Member for Redcar (Vera Baird) for the opportunity to discuss the important issues of human rights and the current energy review. It seems that only recently she and I were discussing equally important questions about women and pensions.
The Government take human rights very seriously and I am proud of the work that we undertake. As a developed country, with a well-established representative democracy, we have a duty to promote good human rights in all interactions that the UK has with other countries.
Energy policy is a truly international issue, as events every week demonstrate. Even though the UK has a large natural resource in oil and gas reserves in the North sea, imports remain an important element of our energy mix. In the future, our imported energy will come from a wide range of sources—oil from Denmark and Venezuela, and gas from Norway, Qatar and Algeria, for example. Furthermore, some of the world's leading extraction companies, such as BP, BG Group and Shell, are based in the UK. As such, they share the responsibility for protecting human rights wherever they are operating.
As my hon. and learned Friend made clear, the way in which countries use their energy resource is an important issue for the whole international community. It was for this reason that in 2000 the UK and US Governments established a set of international voluntary principles on security and human rights. These are designed to help companies to meet the requirements of their international operations, while respecting the human rights and fundamental freedoms of those in the host country.
We have continued to work with British companies to promote and expand the work of the voluntary principles initiative. I am pleased to see that those principles have formed the cornerstone of those companies' approach to security and human rights in the countries in which they operate. The initiative is also backed by a number of non-governmental organisations, such as Amnesty International and Human Rights Watch.
We are also committed to the Organisation for Economic Co-operation and Development guidelines for multinational enterprises. These set out guidelines on responsible business conduct for all companies based
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in the UK. The guidelines cover areas such as combating bribery, environmental protection and public health and safety. Stable and successful producer countries are crucial for the international community's long-term energy security. The best way to ensure such long-term security is to ensure that the revenues raised from oil are transparently accounted for and used to benefit the people of those countries.
Through the extractive industries transparency initiative, we are working with Governments in resource-rich countries to improve such governance through the publication and verification of company payments and Government revenues from oil, gas and mining. Some 20 countries—for example, Azerbaijan and Nigeria, which are significant players in the global liquefied natural gas market—have either endorsed or are now actively implementing that initiative, and other countries that are global suppliers of uranium, such as Niger, have also endorsed the initiative. We are encouraging emerging markets—for example, China, India and Brazil—to support the initiative's implementation in resource-rich countries and by their companies, whether state owned or otherwise. Russia could play a leadership role with those economies.
Our indigenous supplies of energy have declined sooner than expected. We are already a net importer of gas and expect to be a net importer of oil by 2010. There is no doubt that whatever is decided by the energy review, to which my hon. and learned Friend has referred, the UK will be importing significantly more oil and gas in coming years from a range of countries around the world, but heightened concern about global energy issues are affecting perceptions of the security of supply from major exporter countries. Reliance on imports is not per se a threat to security of supplies. Indeed, all other G7 countries, with the single exception of Canada, have been in this position for many years.
Securing our energy supplies from a diversity of countries by a number of different routes is an important factor in our energy policy. We are not putting our eggs all in one basket, because diversity helps us to maintain reliable supplies and mitigates the risks of any interruptions. Oil and gas come to the UK from a variety of countries, but a significant proportion of our current oil and gas imports come from Norway—for example, 72 per cent. of oil imports and 80 per cent. of gas imports. Countries such as Germany, the Netherlands and Belgium are also suppliers.
The market for liquefied natural gas, which can be shipped like oil, is expanding significantly. The UK expects to receive the first supplies of LNG from Qatar by the end of 2007. As the LNG market becomes more global, it is possible that the UK will receive shipments from other producers such as Nigeria and Egypt. That diversity will help to continue our strong record for the continued physical supply of gas and electricity to end users. We have had fewer unplanned interruptions to
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electricity than any European country except the Netherlands. The expansion of renewables, to which we still remain committed, is further adding to our diverse generating mix.
We have also been working with the energy intensive users group, which includes the Chemical Industries Association, during the past winter. Our efforts have been focused on maximising gas and electricity supplies, encouraging demand-side response and pursuing fair access to markets across Europe. We are also working with Ofgem, national grid and industry over the summer to ensure that we are in the best possible position ahead of next winter. However, we need to ask ourselves whether we are doing enough to manage the risks of this new situation into the future. That is one of the reasons why the Prime Minister asked me to lead a review of UK energy policy.
We must ensure that the right framework is in place to help the market to deliver our medium and long-term energy policy goals. The review is therefore looking at the overall framework and within that ensuring reduced carbon emissions, attaining reliable energy supplies, examining the role of nuclear and assessing the potential of carbon abatement and low carbon technologies. In addition, the scope for improving energy efficiency is subject to the review, including achieving affordable and adequately heated homes for the most vulnerable.
There are no foregone conclusions in the review, but there is one thing that I am sure of—there is no single solution and no do-nothing option. We have just finished the formal consultation as part of the review, and the scale of the debate has been impressive. We have received many more than 2,000 responses to our consultation and I have met more than 500 different stakeholders through our extensive programme of seminars, round tables and other activities, from which three key messages have emerged. First, the objectives of the 2003 White Paper are the right ones, and a review for the long term is the right decision. Secondly, there is a need for greater long-term clarity about the direction of UK energy policy. Thirdly, there is a need for action on both energy demand and energy supply.
Everyone, whether in Government, in industry or as an individual, has an important role to play in taking action to meet our energy policy goals. We are analysing the evidence that we see from the consultation and further considering the policy options that the review might recommend. We must continue to provide a framework in which the UK market can supply UK energy requirements while at the same time, of course, having regard to human rights considerations, including through our support of the voluntary principles.
I thank my hon. and learned Friend for the opportunity to discuss these important global issues in the House tonight.
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