Wes Streeting has called on Labour to increase oil and gas drilling in the North Sea, arguing it would support economic growth and generate additional tax revenue for the Treasury.
The leadership candidate and former health secretary said the UK should continue its transition towards renewable energy but warned against policies that could damage domestic industries without delivering a meaningful global impact on emissions.
Labour introduced a temporary ban on new North Sea drilling licences last year and has pledged to make the policy permanent. However, reports suggest ministers are reconsidering their position amid rising oil and gas prices linked to conflict in the Middle East and concerns over European energy security.
Speaking to The Times, Mr Streeting said: “We do have to take climate change globally much more seriously and go aggressively towards more renewable energy. But there’s sometimes a danger of Britain wanting to lead the world. We cut off our own nose to spite our face without contributing to the greater whole.”
He added: “The granting of those licences will not necessarily translate into cheaper bills, but it will translate into higher tax receipts.”
Mr Streeting also suggested he expects Energy Secretary Ed Miliband to eventually support issuing new licences, despite Mr Miliband's previous insistence that expanding North Sea production would not reduce consumer energy bills.
Asked whether he backed new oil and gas licences, Mr Streeting replied: “Yes. I think that’s probably where Ed will get to. When he makes a decision, I’d be surprised if that wasn’t the case.”
He also urged ministers to listen to concerns from trade unions and workers across the sector, saying: “We’ve also got to listen to what GMB is saying. Listen to what Unite is saying. Listen to what the workforce is saying. And listen to what the public are saying.”