Parliament's party history for this member: Labour ( – present).
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Chair of the Commission for Carbon Competitiveness (a small group of MPs, former MPs and industry experts researching and producing reports on industrial competitiveness). Hanover Communications is appointed by the Commission to provide Secretariat duties, but Commissioners are not part of a formal contractual arrangement and do not appoint Hanover.
<Question HRSContentId="{0FCDC6A3-E684-42C5-A24D-DB1A94B03770}">7. <QuestionText HRSContentId="{5E10506D-1952-43A9-9B9C-C27F8B9ACBBD}">What fiscal steps he is taking to increase the competitiveness of the refining sector.</QuestionText></Question>
I welcome the Government’s announcement in last week’s Budget of the intention to expand the scope of the CBAM to include refinery products. That is critical to preventing carbon leakage by ensuring that British refineries are on a level playing field when compared with imported refined products. It will protect thousands of jobs in Pembrokeshire and strengthen our energy national security. Will the Minister set out a clear timetable for implementation? What assurances will he provide on protecting the competitiveness of the export sector for refineries in this country?
I congratulate the Minister on backing British industry in the North sea, but as he knows, industrial communities such as mine in Pembrokeshire face existential threats from high energy costs and high carbon costs. What measures are the Government taking to support good, unionised, well-paid jobs and industry right across the country?
I welcome the Government’s support for British industry, including through the British industrial competitiveness scheme. However, the fact that the oil refinery sector is not included in that scheme threatens thousands of jobs and our national energy security. Will the Secretary of State consider expanding the scope of the scheme and reviewing its broader eligibility requirements?
Does my hon. Friend agree that the failure of the private sector in this instance, which also affects pensioners in my constituency, shows the benefits of the Government taking control and in-sourcing this pension scheme once and for all to deal with the issue?
It is a pleasure to serve under your chairship, Sir Jeremy.
The Cleddau river flows through my constituency of Mid and South Pembrokeshire. It tells a proud history of Pembrokeshire, but more recently it has told a sadder story of the failures of our water sector. At Picton pumping station in Haverfordwest, the local campaigning organisation The Cleddau Project found that the equivalent of 17 tankers of sewage were being dumped into the Cleddau every day between July 2022 and February 2024. Between January and October 2025, there were nearly 4,000 hours of untreated sewage pollution at seven different sites in and around the Cleddau.
Given the history of Welsh Water, I caution Members advocating for a not-for-profit model of water ownership. As a member of the Environment, Food and Rural Affairs Committee, I have spent many hours questioning water bosses, and it is clear to me that regulatory enforcement alone will not address the crisis that the sector is facing. The problems are symptoms of a structure and a culture within these companies. There is too much focus on financialisation, rather than prioritising environmental stewardship and customers, and executives have too often been insulated from the consequences of their poor performance.
As has been eloquently described by Members today, the water sector is fundamental to public health, environmental protection and, crucially, our national security. I congratulate my hon. Friend the Member for Colne Valley (Paul Davies) on introducing this debate and on giving such an eloquent and passionate speech. It is vital that we seriously consider different forms of ownership; indeed, it is somewhat sad to me that this conversation has been so stifled in recent years. Nationalisation must form part of the conversation, and it must flow as a consequence of the continued failure of water companies. Does the Minister agree <span id="489WH" class="column-number" data-column-number="489WH"></span>that if water companies cannot deliver for customers, the state must be prepared to step in and ensure that an essential service is run in the public interest?
Will the Secretary of State set out how the defence investment plan and the record investment of nearly £300 billion over the next four years will help to strengthen local supply chains in my constituency and create good, unionised, well-paid jobs as well as to stimulate economic growth?
On the point about the assessment made by Link under statute, does the hon. Gentleman agree that the three-mile radius that is being used by Link is totally inadequate when looking at rural areas such as mine in Pembrokeshire?
I welcome the introduction of the carbon border adjustment mechanism in the Bill. It shows a commitment from this Government to supporting British industry, which underpins the fabric of local economies and communities across the country, including Mid and South Pembrokeshire.
For British industries included in its scope, a CBAM means they can compete on a level playing field with industries in the global market. It works by applying a charge to the carbon emitted during the production of imported carbon-intensive goods. That ensures that our domestic producers do not face higher production costs compared with their foreign competitors operating in countries where the price of carbon is lower. That is critical, for without a CBAM, those industries will go elsewhere, moving production to low-regulation, high-emission countries. We would lose jobs, investment and our industrial base while simply offshoring our emissions. That is carbon leakage: decarbonisation at the cost of deindustrialisation. It would be devastating for industrial communities across the country, in my constituency of Mid and South Pembrokeshire. That is why I call on the Government to expand the scope of the CBAM to include the oil refining industry.
Refined petroleum products are highly exposed to carbon leakage, and without the protection of the CBAM, we risk losing this industry. There would be untold consequences for communities like mine in Pembrokeshire, which is the home of one of the UK’s four remaining oil refineries. Locally, the refining sector employs over 1,000 people. Nationally, it accounts for 15% of Welsh export GDP. Oil refinery continues to be foundational to the UK’s economy and energy security; oil products supply 47% of the UK’s final energy demand and support thousands of skilled jobs in industrial communities like Pembrokeshire.
The transition to net zero must be a just one. It cannot come at the cost of deindustrialisation and greater economic deprivation in communities like mine. As the party of working people, it is incumbent on this Labour Government to manage this energy transition by protecting the jobs and skills base of today while building the industries of tomorrow. Recent global events have shown once again how trade flows can change overnight, threatening our energy security and directly impacting the cost of living for our constituents. As a Government, we must be agile in responding, providing the support and certainty our communities and industries need to weather the storms.
A CBAM can provide targeted support to industry during turbulent times. However, the Bill in its current form requires the effectiveness of the CBAM to be reviewed only after five years. I hardly need to remind the House how dramatically the geopolitical landscape can change in that time. That is why I urge the Minister to consider making provision for yearly reviews of the CBAM during its first five years. This would allow the Treasury to respond to unforeseen events and ensure <span id="413" class="column-number" data-column-number="413"></span>that the CBAM continued to achieve its objective, minimising the risk of carbon leakage for carbon-intensive industries in the UK, so that our decarbonisation efforts could lead to a true reduction in global emissions rather than simply displacing carbon emissions overseas.
We are at a critical juncture for British industry. Decisions made by this Government will shape the UK’s ability to safeguard industrial jobs and maintain global competitiveness while meeting net zero objectives and creating jobs for the future without simply offshoring our emissions. This Bill continues the Government’s work to build a stronger, fairer country by growing our economy, raising living standards and, crucially, investing in our public services. The introduction of the CBAM is a vital part of this broader package of measures, but I urge the Minister to consider expanding its scope and reviewing it annually to ensure that it delivers on its important objectives in a rapidly changing world.