Coastal Infrastructure: Scotland

Motion made, and Question proposed, That this House do now adjourn.—(Taiwo Owatemi.)

19:04:00

Scotland’s history is intertwined with our coastal communities. From shipbuilding on the Clyde to fishing off Peterhead and Fraserburgh, these areas helped fuel the UK’s growth as a global power. Closer to my home, the Forth estuary has a proud industrial legacy. Longannet power station, near Kincardine, once powered UK industry and, to this day, the Babcock dockyard in Rosyth plays a pivotal role in naval shipbuilding. The Forth remains an active and busy waterway, with tankers and barges constantly on the move. None the less, in common with other areas, the decline in industry in the Forth is obvious. In some places, industry has been partially replaced by tourism, with 9 million visitors coming to Fife last year and contributing £570 million to the local economy.

I commend the hon. Member for bringing forward this issue. I congratulate him on securing his second Adjournment debate in two weeks, which is fantastic. As he will know, he and I—if we go back far enough—are Gaelic cousins: I am descended from the Stewarts of the lowlands of Scotland, who came across to Northern Ireland. It is very important for us in Northern Ireland and those across the Irish sea to have a relationship through tourism. Does the hon. Member agree that greater support and funding for the ferry service between our two great countries, and therefore for tourism, would only yield greater connectivity and prosperity for both our nations? I know that many people in my constituency go to Scotland every year for a holiday, and I am sure that the same applies in the other direction.

I could not agree more. I had the pleasure of being in Belfast just a couple of weeks ago for a family occasion. I was not able to take the ferry on that short trip—sadly, I had to fly—but I could not agree more with the hon. Gentleman’s point. For coastal communities in my constituency, such as Kincardine, Culross and Torryburn, tourism is indeed a welcome industry, with the Fife coastal path and the Pilgrim Way welcoming thousands of people a year to enjoy the beautiful Fife coastline. Across Scotland in 2022, marine and coastal tourism was worth £633 million, providing a total of 31,000 jobs. However, although tourism is welcomed by such communities, it can bring difficulties as well. Villages that were never designed to deal with hundreds or thousands of visitors sometimes feel swamped, with locals understandably resentful. The situation has not been aided over the years by SNP cuts to local council budgets, which have delayed upgrades to critical infrastructure, including roads, paths, play parks and other local facilities. However, our coastal communities are not just scenic backdrops but economic powerhouses, cultural treasures and key players in our green future. They need our continued support and investment. In August this year, the Prime Minister said that our coastal communities are the lifeblood of Britain’s maritime economy. From supporting international trade to driving innovation in renewable energy, these areas must be at the heart of our plans to build a stronger, greener, and more prosperous future for the UK.

I congratulate my hon. Friend on obtaining his second Adjournment debate. Does he agree that in the transition away from industrial ports and towards tourism, both the UK and Scottish Governments must invest to avoid the pressure of tourism hotspots? We must use the full force of both Governments, and of capital, to invest in and change our ports to make them fit for the green transition to renewables. Given the challenge of climate change, does he agree that we must defend our coastal communities and invest in causeways such as the Baleshare causeway in my constituency, and in ports and harbours all around the coast, to makes sure that they are defended from rising tides and the effects of climate change?

Once again, I could not agree more. My hon. Friend has the pleasure of representing one of the most beautiful parts of the world, and I have been able to spend a bit of time there. He is absolutely correct about the challenges that our coastal communities face, and programmes such as Great British Energy have huge potential for green jobs. We must always make sure that the transition is carried out with sensitivity and in partnership with communities wherever we can. The Prime Minister is someone with whom I would always choose to agree, and I could not agree more with his views on coastal communities and the maritime economy. The national wealth fund announced by the Chancellor of the Exchequer is a potentially transformative opportunity for our coastal communities, with at least £5.8 billion of the NWF’s capital focused on sectors such as ports, green hydrogen, carbon capture, gigafactories and green steel.

I also congratulate the hon. Member on securing this debate. On offshore renewables, which I know he will be mentioning, Scottish communities will obviously have a huge amount to contribute. Does he agree that we need to look for inclusion in the European energy markets for those greatly expanded offshore renewables? Does he also agree that we need to look into the issue of transmission charging? I know he will be aware of that as well.

I thank the hon. Gentleman for that intervention. Given the additional co-operation we are seeing between the UK and Scottish Governments, with the UK Labour Government in power and resetting that relationship, there will absolutely be opportunities to work together for the benefit of all parts of the United Kingdom on energy. In 2022, passenger and freight water transport was worth £250 million to the Scottish economy and supported 1,600 jobs. The port of Rosyth in my constituency currently handles 600,000 tonnes of bulk cargo, ranging across a variety of incomes, including road salt, which has been much needed in the past week. It was definitely required in Fife, as I found out on my trip to the airport earlier this week. In addition, the port of Rosyth works with oil and gas companies for the import and export of vital industrial components, and when I was near the port recently, I could also see turbine blades and other components for renewable energy sitting on the dockside—a sign of the future, hopefully, for my constituency. The Rosyth waterfront, currently being cleaned up by the Scarborough Muir Group, was once home to a 250,000-tonne capacity concrete tank and 5,000-tonne steel tanks, all used to fuel the fleet during world war two. The development of the site offers a further exciting glimpse into the possible future of the Fife coast, given the required sustained investment. The green freeport offers exciting opportunities up and down the Forth estuary on both sides, with plans for Rosyth including additional freight and passenger transport and improved rail link options, all of which take freight off the roads while at the same time providing new jobs and helping us on the pathway to achieving net zero. Over the longer-term trend, the Scottish marine economy contracted by 14% between 2013 and 2022, a shocking decline for which both the SNP and Tory Governments must carry the can. We must do more to support our coastal economy, and there is one specific measure on which I would like to focus in the remainder of my time. Between 2002 and 2018, there was a direct ferry line from Rosyth to Zeebrugge operating as a passenger and freight service, and latterly as a freight-only service. I believe, as many of my constituents do, that now is the time to bring this project back. To that end, I have held several discussions with those co-ordinating these efforts, as well as with DFDS Ferries, which has said that it would like to bring the service back as soon as spring 2025, but between Rosyth and Dunkirk instead. Additional investment in the port of Dunkirk, including on facilities and additional upgrading of freight and rail, makes this an optimal moment to bring back this service from Scotland to Europe. The facilities at Dunkirk are ready and the national wealth fund would appear to be the ideal opportunity for this Government to take the lead on developing the facilities at Rosyth that are needed to make that happen. Never mind £5.8 billion, it could take as little as a £3 million investment in Rosyth to bring back a regular passenger and freight service between Scotland and mainland Europe, but time is of the essence if it is to be fully realised. With £3 million of funding, we could get a jump-start on all of this as soon as spring 2025. This Government have said that they want to move quickly with investments that deliver. To my mind, there is no better example of that than getting a passenger and freight ferry back up and running between Scotland and mainland Europe, with Rosyth perfectly positioned for the service. The infrastructure needed is not extensive. All that is needed is improvement of some of the access roads, space for new security checks and the installation of power and associated works. It is estimated that a direct ferry link would carry 51,000 passengers per year, rising to 79,000, and bring an additional £11.5 million spend to the Scottish economy each year. On freight, it is estimated that the route would begin by carrying 22,000 freight units per year, taking 8.2 million km of freight traffic off UK roads, with a corresponding reduction in carbon emissions. The kind of increased passenger and freight links that I want to see in Rosyth would revitalise the economy not only in my constituency but across Fife more broadly and would support the Government’s net zero ambitions while underpinning the Scotland Office’s plans for Brand Scotland, selling Scotland to the world. I have spoken to major employers in the constituency, including Amazon and Mowi, which have both said that they would welcome this ferry link as it would help their contribution to the local economy. Mowi plays a key part in the Scotland Office’s Brand Scotland efforts by promoting and selling Scottish salmon to the world. There are other hurdles that would need to be overcome in order to finalise bringing the service back to Rosyth, including addressing the failure of the SNP Scottish Government to amend the necessary legislation that would allow border control at Grangemouth to be used for Rosyth for certain freight. There is also the matter of the delay by the Scottish Government in confirming Transport Scotland funding for the waterborne freight grant. While the SNP continues to delay and make excuses at its end, this Labour Government have the opportunity to jump-start this process.

The hon. Gentleman makes a good point about the important Rosyth connection, and I pay tribute to him and his predecessor for their good work. He is always good natured about these things, but he will notice that neighbouring Ireland has opened up more than a dozen such routes. Why does he think that is? Does he think that membership of the single market would be enormously helpful in opening up some of these routes and further benefiting our coastal communities?

The hon. Gentleman is right that I should pay tribute to my predecessor, Douglas Chapman, who did much to champion this cause. My point is that we can do this in the current situation, and that is what we should be doing as quickly as possible. This debate is about how to get investment back into our coastal communities, and what better opportunity than a passenger and freight link between Rosyth and central Europe? As I discussed with my hon. Friend on the Front Bench prior to this evening’s debate, I wrote to the Chancellor of the Exchequer at the start of October, but I received a reply only very recently, and I suspect only because this debate was on the Order Paper. This is disappointing, particularly given the small amount of money and the deadline to make this project a reality in 2025. Of course, I do not expect my hon. Friend to be able to make any commitments this evening, and I certainly do not expect him to speak on behalf of the Treasury. However, it is critical that the Government deliver for Scotland in a visible and meaningful way as quickly as possible, by progressing projects that further Brand Scotland, which is a fantastic policy programme that sells Scotland to the world, benefiting people across my constituency and across Scotland. What actions are the Scotland Office taking to bring the correct partners around the table to make the Rosyth to Dunkirk ferry a possibility as quickly as possible, so that the option of bringing it back in 2025 can at least be seriously explored? Whether it is restoring the Rosyth ferry, addressing infrastructure challenges or unlocking the potential of initiatives such as the green freeports, now is the time to act. By working together, we can ensure that our coastal communities thrive for generations to come.

19:16:00

I congratulate my hon. Friend the Member for Dunfermline and Dollar (Graeme Downie) on securing this debate. As others have said, this is his second Adjournment debate in a matter of weeks, so the hon. Member for Strangford (Jim Shannon) might have some competition. I represent a coastal constituency, so I am pleased to respond on behalf of the Government. I am sure the whole House will agree when I say that the UK is blessed with a wonderful coastline, and nowhere more so than in Scotland. As much as it might pain me as the MP for Inverclyde and Renfrewshire West to admit that there are some beautiful stretches of coastline that are not in reach of Wemyss bay, Inverkip, Greenock, Gourock or Port Glasgow, I will grudgingly admit to my hon. Friend that the Fife coastline is indeed beautiful and, as he has highlighted this evening, has the potential to contribute to the growth of our economy, particularly through our world-class ports. We have heard about his proposal for Rosyth, to which I will return later. Ports will play a crucial role in the development and deployment of the offshore energy projects that are essential to meeting our clean energy mission, as well as facilitating the international trade that is vital to meeting our mission of turbocharging economic growth. It is therefore right that we support these communities with the infrastructure they need to thrive. That is why the UK Government have announced the creation of the national wealth fund, backed with £7.3 billion, including £5.8 billion of capital funding for five priority sectors, including port infrastructure. This will drive investment in ports across the country, delivering the change we need to achieve our mission of growing the economy. The national wealth fund will build on the work of the UK Infrastructure Bank, which has a strong track record of investing in port infrastructure across the UK. Indeed, the national wealth fund is providing £50 million, which has been matched by the Scottish National Investment Bank, towards a £100 million joint credit facility for the Ardersier port. This project demonstrates the potential of our national wealth fund investments. The site is currently the largest brownfield port in the UK but, when complete, it will become a nationally significant infrastructure facility, spanning 450 acres. This game-changing investment will redevelop the port, developing its capacity to deploy offshore wind infrastructure at an industrial scale, driving forward our net zero ambitions. I make it clear to my hon. Friend and other Members that this project is just a start, and further details on securing national wealth fund funding will be set out in due course. My hon. Friend set out his vision for the port of Rosyth. I would be delighted to assist him, alongside officials in the Scotland Office, in his engagement with the national wealth fund for projects in his constituency. My right hon. Friend the Chancellor has been crystal clear that if growth is the challenge, investment is the solution. That is why this Government will invest in the jobs, industries and infrastructure of the future through the national wealth fund and GB Energy. Alongside that, our new industrial strategy, currently being developed by the UK Government in consultation with the Scottish Government, sets a credible 10-year plan to deliver the certainty and stability businesses need to invest in the high growth sectors that will drive our growth mission. The strategy will take advantage of the UK’s unique strengths and untapped potential, enabling our already world-leading sectors to adapt and grow, and seizing opportunities to lead in new and emerging areas. Many of the priority sectors identified in the emerging strategy, such as clean energy and defence, will directly benefit and build on the strengths of our coastal communities. The strategy will take a place-based approach, driving growth in towns, cities and regions around Britain. We will work tirelessly to deliver growth through this strategy for communities across the UK. We will also look internationally for opportunities. As my hon. Friend set out, increasing export markets for Scottish businesses are crucial for our success. That is why we are committed to promoting Brand Scotland around the world. Indeed, my right hon. Friend the Secretary of State for Scotland is currently in south-east Asia meeting businesses and Government Ministers to encourage investment here at home. However, we cannot go it alone. As others have said, we must work closely with the Scottish Government, combining our respective powers to deliver on these ambitions, which is why we are resetting the relationship with the Scottish Government. Across a range of areas, we are working together with them to deliver for communities and strengthen our economy. We are backing the Scottish Government to deliver, with a record block grant of £47.7 billion for 2025-26, with a further £3.4 billion via the Barnett formula. That is the largest settlement in real terms since devolution began. As a result of the decisions that this Government have taken, we have been able to confirm the UK Government’s commitment to investing nearly £1.4 billion in important local projects across Scotland over the next 10 years. I am delighted to say that that includes £26 million for the Forth freeport, subject to full business case approval. The Forth green freeport is expected to support thousands of jobs and bring in millions of pounds of investment across its sites in Edinburgh, Fife and Falkirk. Local partners estimate that it could create up to 34,500 jobs and generate £7.9 billion of private and public investment over the next decade. My hon. Friend mentioned that he has written to the Treasury regarding possible upgrades to the port of Rosyth. I am aware that the Chancellor has recently responded to his correspondence and, as I said earlier, I would be delighted to assist him in engaging with the national wealth fund. If he would like a further discussion with the Treasury on that subject, I would be happy to facilitate a meeting with my noble friend the Financial Secretary to the Treasury for him to discuss the issue further. As my hon. Friend said, decisions also need to be made by the Scottish Government. Engagement and support from the Scottish Government and Transport Scotland will be necessary to deliver the project he mentions. I encourage Scottish Government Ministers and officials to engage closely with my hon. Friend to discuss the proposals in more detail. I will do all I can to support him in fighting for opportunities for growth in his constituency, and I know that both the Secretary of State for Scotland and the Minister for Scotland share this desire. May I once again pay tribute to my hon. Friend, and to Members who have intervened in the debate? I am sure they will join me in agreeing that this is a vital issue that we must get right to ensure Scottish coastal communities play their rightful role at the heart of this Government’s ambitious agenda. Question put and agreed to.

19:23:00