Infrastructure Bill [HL]
Debate between Baroness Verma and Lord McKenzie of Luton
Baroness Whitaker (Lab)
My Lords, I must confess that I am rather puzzled by this amendment, as indeed I was by the Prime Minister’s announcement more than a year ago that he and Mr Hollande would both sign up to EITI. EITI was, of course, an initiative by the previous Government with the very commendable aim of ensuring, as the noble Baroness said, that oil industry companies are obliged to disclose their financial transactions and treasuries are obliged to disclose the revenue. It was very commendable because it was initiated for countries where the oil industry was extremely corrupt and made clandestine payments to the Government in exchange for concessions and where taxpayers—if indeed they paid much tax at all as they were too poor—had absolutely no sight of these financial transactions. Now, even the most extreme critic of British capitalism would not, I think, say that anything like that regime obtains here so I am curious as to why we need to sign up to this system, which was entirely meant for developing countries where their resources have proved inimical rather than helpful to their development. It is also my understanding that the revenue obtained from oil companies is easily available from the Treasury in any case, so why this amendment?
Lord McKenzie of Luton (Lab)
My Lords, I put one small question to the Minister. We discussed in the previous amendment a new levy that will be introduced as a consequence of the Bill. Is it envisaged that that levy would be includable in EITI reports and, if so, is it a tax for the purposes of the proposed new Section 8A of the Commissioners for Revenue and Customs Act 2005?
Baroness Verma
My Lords, I am very grateful to noble Lords for their intervention. I shall respond to the noble Baroness, Lady Whitaker, first. We are transparent, but we want to show clear leadership and be part of the growing group of countries signing up to the EITI, which sends a very clear message across the industry globally that we need to have transparency in the oil, gas and mineral sector. By being part of the growing group, we are indicating that UK companies based overseas are committed to the transparency that we expect on our shores here. I do not think that there is any other purpose than to be able to show clear leadership and that it is the right thing to do. We have always tried to be transparent but, as the noble Baroness said, there are countries that need nudges. Perhaps by showing leadership and being part of an ever-extending group of countries wishing to sign up to the EITI, we can show globally that this is a direction that countries that want to show transparency are taking.
I may need to write to the noble Lord, Lord McKenzie, with a more detailed response on his point.
Energy: Prices
Debate between Baroness Verma and Lord McKenzie of Luton
Lord McKenzie of Luton (Lab)
My Lords, on behalf of my noble friend Lord Kennedy of Southwark, and with his consent, I beg leave to ask the Question standing in his name on the Order Paper.
The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Baroness Verma) (Con)
My Lords, the Government are helping local authorities with their energy bills. The Salix Finance public sector energy efficiency loan scheme provides interest-free loans to public sector organisations, including local authorities in England, Scotland and Wales. Last week we announced an additional £90 million of funding to help improve the energy efficiency of public sector buildings. The Government Procurement Service purchases energy on behalf of many public sector organisations, including local authorities, resulting in lower energy costs for the public sector.
Lord McKenzie of Luton
My Lords, I thank the Minister for that reply. However, we know that local authority budgets are being cut to the bone and many local authorities are already struggling to meet their statutory obligations to vulnerable people. Notwithstanding what the Minister has said, does she agree that, by ruling out price freezes, households are faced with a double challenge of rising energy prices at home and further cuts to vital local authority services on which so many depend?
Baroness Verma
My Lords, although the Government cannot, of course, control wholesale prices, in our announcement last week we put forward a package of measures which should help local authorities and consumers. The noble Lord will be aware that only today the OECD said that if it were to follow the noble Lord’s party’s plans on an energy price freeze, there would be underinvestment as investment would be frightened off coming to the UK. I am sure that is not what the noble Lord or his party want, but, sadly, that is what would happen. The noble Lord will also be aware of the complete drop in share prices across energy companies following the statement made by the leader of his party in September.