Can the Minister give some comfort to the green deal installers in my constituency by telling me how many installations he expects this year rather than how many assessments he expects?
The right hon. Gentleman knows that what is innovative and unique about the green deal is the fact that it is encouraging a huge plethora of new entrants into the market. It is not an old-style left-wing centralised monolithic programme run from London. It is unleashing competition, small and medium-sized enterprises, and diversity and plurality. We therefore want the most that we can possibly deliver.
(11 years, 9 months ago)
Commons ChamberI would be delighted to meet my hon. Friend and his council. We are seeing a very encouraging degree of not only commitment but real enthusiasm from local authorities across the country. Local authorities will be key to a really ambitious roll-out.
Will the Minister reflect a little further on the question that my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger) put to the Secretary of State—namely, are the interest rates for the green deal too high to encourage take-up and ultimately too high for consumers to get a good deal out of the green deal?
I understand what lies behind this point. However, if the right hon. Gentleman looks at this carefully, he will see that when people quote interest rates such as the one for Nationwide they are not comparing like with like. Crucially, the green deal interest rate is fixed for 20 years. I am aware of only one other such product in the market. Access to the green deal interest rate is incredibly fair and open, and not only for people who are lucky enough to own their own homes.
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Obviously there is a difficult balance to be struck, and I know that many firms will find it difficult to navigate the system, especially in the short term. I must make it clear, however, that it would have been wrong to do nothing, and to allow the whole budget to be burnt through in a matter of months. Had we done that, the industry would have been looking at oblivion, but now, thanks to timely intervention, it can look at a sustainable pathway to growth.
What would the Minister say to the work force and management of Kingspan, a firm in my constituency that manufactures solar panels and solar cells? A representative of that firm told me on the telephone this very morning that the effect of the Minister’s decision on pre-order contracts will cost it £12 million between January and April next year. Is that the way to improve manufacturing industry in Britain?
What I would say is that we intend to reduce tariffs to levels comparable with those in Germany, which has the highest level of renewables deployment in Europe. We are lowering tariffs to encourage market competitiveness. Kingspan is a great company that manufactures a range of products, not least insulation products, which will benefit from a boom as a result of the roll-out of the green deal between now and 2020.
(13 years, 9 months ago)
Commons ChamberThe decision on the feed-in tariff regime has caused great consternation in north Wales—so much so that the managing director of Kingspan, a company in my constituency, has written to me to say:
“DECC has potentially destroyed a renewables sector that is only some 11 months old and taken with it the jobs and growth opportunity that it would have provided for the UK economy in general and North Wales in particular.”
In the light of that comment from the managing director of a manufacturing company, will the Minister meet me, my hon. Friend the Member for Wrexham (Ian Lucas) and others to discuss this bad decision?
I profoundly disagree with the right hon. Gentleman. We have not cut the budget for the feed-in tariff scheme. We have put in place proper financial controls to ensure that there is money in the system through to 2014. I would be happy to meet him to discuss this matter further, but he must remember that the tariff changes apply only to systems larger than 50 kW, which is equivalent to the size of two tennis courts, and not to domestic housing.