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Employment and Skills (Energy Sector)

Volume 530: debated on Thursday 7 July 2011

4. What discussions he has had with the Secretary of State for Business, Innovation and Skills on skills and employment in the energy sector. (64267)

13. What discussions he has had with the Secretary of State for Business, Innovation and Skills on developing skills in the low-carbon sector. (64277)

My Department works closely with the Department for Business, Innovation and Skills to promote skills and employment in the energy sector. The Budget announced £180 million of funding for 50,000 additional adult apprenticeships, and we announced in March that at least 100,000 green deal apprentices could receive Government funding towards their training. There are many opportunities, with the new build nuclear programme alone expected to create 30,000 high-skilled new jobs nationally.

What steps are the Government and the Minister’s Department taking to ensure that jobs in the energy industry supply chain are developed in this country and not abroad?

I was very pleased indeed to have the chance to meet the hon. Gentleman, his local authorities and other Members of Parliament from Humberside to talk about the immense potential in those areas for developing the supply chain for the offshore wind sector. That is why we have put in place a £60 million programme to attract manufacturing investment to those sites, and it is encouraging to see the number of manufacturers looking to the United Kingdom.

The Minister may be aware of my interest in apprenticeships. I welcome the increased number of apprenticeships, although I am concerned that it does not go far enough. What reassurances can he provide that there is a joined-up approach across Departments to ensure that apprenticeship places are created in low-carbon areas of our economy and regions such as the north-east which have real growth potential?

I hope the hon. Lady will be aware of the document “Skills for Sustainable Growth”, which was produced last year. It addresses these matters so as to ensure that we can address apprenticeships issues in a more flexible and responsive way, enabling us to react to demand as it evolves in the system. We very much want this to happen in areas such as the north-east, and the local enterprise partnerships and local authorities will have an important role to play in ensuring that we take a joined-up approach to this.

Will my hon. Friend join me in congratulating a company in my constituency, Trade Skills 4U, which has taken on hundreds of apprentices? In particular, it has retrained former members of the armed forces to give them skills relating to solar energy and heating. Does he also share my perplexity at Labour voting in Committee against the fourth carbon budget?

My hon. Friend makes an important point. I absolutely welcome the work that is going on to retrain people who have one skill set that might be relevant to the low-carbon economy. We see the potential in the green deal for 100,000 jobs in that area by 2015, and perhaps 250,000 jobs in the longer term. The situation on the fourth carbon budget was even more extraordinary than my hon. Friend suggests, in that Labour Members voted three ways: some voted yes, some voted no, and others abstained.

Given that some 70% of the UK’s nuclear work force are due to retire by 2025, at the same time as we are planning to build some 16 GW of new nuclear capacity, what action is my hon. Friend taking to plug the nuclear skills gap?

We are working closely with other Government Departments, specifically the Department for Business, Innovation and Skills, and the National Skills Academy for Nuclear has offered 1,200 apprenticeships in the nuclear sector in the past year, along with 22 foundation degrees and 2,500 short-term courses in the nuclear sector. This is an area in which industry is rising up to the challenge, and our universities and further education colleges are all working together very constructively.

Further to the question from my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell), we were absolutely delighted, during the Energy Bill’s Committee stage, when the Government did not reject Labour’s amendment to establish a green deal apprenticeship scheme as part of the green deal. That kind of scheme will aid employers in the energy and low-carbon sectors who have a shortage of skills in their work force, but most importantly, green deal apprenticeships will give young people a route into a long-term career. However, the Minister has since indicated that the Government might seek to change these proposals on Report. Will he now guarantee that he will keep Labour’s green deal apprenticeship scheme and not water it down or remove it from the Bill?

We always seek to bring absolute delight to the hon. Lady. We were delighted to find among the batch of amendments that she tabled one that we could endorse and support, although we are looking at the nature of that proposal to see whether it delivers exactly what we want and whether we could improve it still further.