Energy Bill [HL]

Debate between Baroness Young of Old Scone and Lord Bishop of Chester

Wednesday 21st October 2015 Lords Chamber

[The Lord Bishop of Chester]

My Lords, I did not speak in Committee, although I attended it, partly because I found almost a sense of the ground moving under my feet as all the amendments were produced. This, of course, was a recommittal in Committee under these clauses. At the end of the debate, the clauses were removed. I think that it was the noble Lord, Lord Foulkes, who referred to “liquid legislation”. There is a phenomenon emerging in the Church of England called “liquid worship”. I can only say that when I am told that that is what I am to expect on a Sunday when I go to a parish, my heart does not leap with joy at what might be in prospect for me.

In Committee, I began by thinking that the Government had done a deal with the industry through withdrawing the clauses and bringing them back in the recommitted meeting of the Grand Committee. But then I listened to the noble and learned Lord, Lord Wallace. If Members of the House think that we have just heard a tour de force, they were not there in Committee, which saw an even greater tour de force, complemented in a different style by the noble Lord, Lord Foulkes.

The noble Lord refers to the need to “draw a line”. He mentioned that phrase five or six times in his contribution. The problem is that the line was drawn at March 2017. It is a redrawing of the line by the Government which has put us into this situation and raised the question of how one does it in a way that is reasonably fair all round given the complexities of the planning process, which have been so well described.

At this stage, I simply ask: what are the real benefits of this liquid legislation, which may prove to be even more liquid in the coming weeks and months? What savings will be made by trying to redraw the line from March 2017 to a date somewhat in advance of that? As I understand it, it is a somewhat moving and shifting date. What is the game worth? Given the vast subsidies that are to be paid out over coming years for wind turbines, what will the savings be in comparison with those subsidies that are being paid out?

I must emphasise that I speak as someone who has been critical of that subsidy regime from the beginning. As some noble Lords will know, I was a founding trustee with the noble Lord, Lord Lawson, of the Global Warming Policy Foundation, which seeks to scrutinise policy from that perspective. I sometimes say that my real title here is that I am chaplain to HMS “Lawson”, although I do not speak with the authority of the captain. I would be interested to know what the anticipated saving is and whether the game is really worth the candle, given the complexity that has emerged.

[Baroness Young of Old Scone (Lab)]

My Lords, I had not thought that what we were dealing with was liquid legislation. I thought we were dealing with piecemeal transitional arrangements dreamt up on the hoof as we go through the process. But I am quite prepared for the right reverend Prelate to give us this liquid legislation definition in perpetuity. It is a rather splendid phrase.

This has been a really unsatisfactory Bill and we must not allow ourselves to see this as an argument about onshore subsidy protectionism. It is not about that at all. I think that everybody in the House recognises that the period of subsidy for onshore wind may well come to an end at some point in the nearish future. It is much more about what it is that we want to try to do to send signals about our climate change intentions and to adhere to our own regulatory principles. I have been a regulator three times on behalf of the Government and on each occasion I have absolutely worked my socks off to make sure that we are as fair as possible to British industry. Fairness means giving clarity of policy and adequate times for industry to adjust, meaning that companies are not caught with their foot on the wrong side of a piece of change and penalised as a result of their previously sensible decisions in line with what previously had been government policy. Even with the very welcome changes to the grace periods that the Minister has laid before us, we are still not there.

The noble and learned Lord, Lord Wallace, talked about the statement made yesterday by the Energy Minister in another place. I was a bit distressed to hear the Minister here say that we have made lots of concessions and we now have enough renewable energy from onshore wind in the pipeline. I do not think that that is the point. The point is, have we dealt fairly with British industry and given anybody who could reasonably consider themselves not to have been fairly dealt with the benefit of the doubt in this circumstance, where, all of a sudden, policy has shifted? The Minister said that there had been extensive consultation with the companies and stakeholders, yet many noble Lords will have been lobbied and briefed by players in the energy business, who, even this morning, have been listing a series of situations where, through no fault of their own, they continue to be penalised by the graceperiod arrangements.

I simply ask the Minister to consider some of the circumstances that the noble and learned Lord, Lord Wallace, aptly summarised in such an eloquent fashion to ensure that the statement made by the Energy Minister yesterday about fairness is adhered to and that we do not continue to see liquid legislation that is simply piecemeal, illogical and very damaging, both to our climate change image in the world and the image in terms of British industry about whether reliable frameworks in which companies can realistically work will continue to come from this Government.