Air Quality Strategy

Debate between Jim Shannon and Andrea Leadsom

Monday 24th April 2017 Commons Chamber

[Andrea Leadsom]

My hon. Friend is exactly right to say that all councils that have air quality problems will need to tackle them and to deal with 100% of the problem. As the Prime Minister has said, a number of people were encouraged to buy diesel cars by the last Labour Government, and we want to take those people’s needs into account so that we do not end up penalising them for decisions that they took in good faith.

[Jim Shannon (Strangford) (DUP)]

The latest figures show that new cars are failing to filter out polluted air, and that the air inside them can be up to 10 times more toxic than the air on the footpath because the ventilation in the cars is not working correctly. The Secretary of State has given us a timescale for the consultation process and the comeback from it. Can she give us an idea of when the legislation will come to this House for endorsement?

[Andrea Leadsom]

The timetable we have set out to account for purdah is that we will publish our plans on 30 June, with a final plan by 15 September. Legislation will come into place as soon as possible afterwards, but we will be able to start straightaway on the work that needs to be done to come to comply with that plan.

Oral Answers to Questions

Debate between Jim Shannon and Andrea Leadsom

Thursday 20th April 2017 Commons Chamber

[Andrea Leadsom]

I can assure the hon. Lady that the Government are looking at all possible areas both to reduce emissions of noxious substances such as nitrogen oxide and to ensure that we have good mitigation across the board to try to support ordinary working families. All types of mitigation are on the table.

[Jim Shannon (Strangford) (DUP)]

Northern Ireland has very low air pollution with all areas in the low pollution band, but it is essential that the national framework is truly nationwide and encompasses Northern Ireland. What discussions has the Secretary of State had with her counterpart in the Northern Ireland Assembly to ensure that that happens?

[Andrea Leadsom]

I can absolutely assure the hon. Gentleman that we have had discussions right across the devolved Administrations on this subject. The UK Government and all the devolved Administrations take it very seriously. We are working together closely and we will make an announcement in due course.

Oral Answers to Questions

Debate between Jim Shannon and Andrea Leadsom

Thursday 13th October 2016 Commons Chamber

[Andrea Leadsom]

I am grateful to my hon. Friend for raising that point. He and I share an ambition for the strongest possible promotion of Great British food. He will be aware that the majority of dairy and processed meat products are compliant with the industry’s voluntary principles for origin labelling, but we can, of course, always do more, and we are working with the industry to look at what those options are.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for her comments so far. In my constituency, many farmers have already diversified—Glastry Farm ice cream, Mash Direct and Willowbrook Foods are examples—but they have found difficulties with labelling. What help has been given to provide clear guidance and support? What initiatives are in place to provide that to new business and to make sure that the labelling is correct?

[Andrea Leadsom]

As the hon. Gentleman will know, it is an absolute Government priority that food information must not mislead—it must be accurate, clear and easy to understand for the consumer. There are clear guidelines on which foods must carry mandatory information but, as I have already mentioned, a number of food producers already go further on a voluntary basis to try to ensure that they meet consumers’ desires for more information about the food that they eat. I am very proud that the UK has some of the highest standards for food and food traceability in the world.

Oral Answers to Questions

Debate between Jim Shannon and Andrea Leadsom

Thursday 14th July 2016 Commons Chamber

[Andrea Leadsom]

I am sure that the hon. Gentleman knows that we get about 16% of our electricity every day from nuclear. He will also know that our nuclear plants are all due to be retired by at least the end of the 2020s. Therefore, new nuclear forms a core part of how we replace our electricity supplies. Hinkley is a good deal for consumers. Of course, the mark-to-market costs change according to the wholesale prices, but the price of the electricity coming out of Hinkley by the mid-2020s is guaranteed, and that is very important so that we provide certainty. The Government do not take the view that we will just see what happens; we have to plan for the future. Why? Because electricity security is not negotiable.

[Jim Shannon (Strangford) (DUP)]

Northern Ireland households and businesses face the highest electricity bills in the whole United Kingdom. Businesses still face some of the highest energy costs in Europe. What discussions has the hon. Lady had with the Minister responsible for enterprise, trade and industry to ensure that everything is done to drive these costs down for Northern Ireland customers?

[Andrea Leadsom]

The hon. Gentleman is right to raise this issue. My Department and others frequently consult Northern Ireland Ministers to ensure that all the benefits that can be passed on to Northern Ireland consumers are being passed on. I welcome his contribution to the debate.

Oral Answers to Questions

Debate between Jim Shannon and Andrea Leadsom

Thursday 24th March 2016 Commons Chamber

[Andrea Leadsom]

The hon. Lady is of course completely wrong, because all shale applications are subject to the local planning system, so communities absolutely do have a say on every planning application for hydraulic fracturing.

[Jim Shannon (Strangford) (DUP)]

In my constituency, we have had many applications for wind turbines, both on land and in the sea. As an alternative, SeaGen has a marine project harnessing tidal wave power. When it comes to alternatives that protect the environment, does the Minister agree that such projects should be given prominence?

[Andrea Leadsom]

The hon. Gentleman is exactly right that there are huge prospects for marine and tidal technologies, but they remain very expensive. The Government have supported some demonstration projects and are looking closely at all the possibilities. As they become good value for bill payers, we will bring forward proposals for how we can support them further.

Domestic Oil Purchasing Syndicates

Debate between Jim Shannon and Andrea Leadsom

Monday 7th December 2015 Commons Chamber

[The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)]

I congratulate the hon. Member for Ceredigion (Mr Williams). This is an important debate and I am interested to hear about Club Cosy and the initiatives in his constituency. As I am also off-grid, I, too, participate in an oil buying group, which has been of great personal benefit to me.

The debate is a welcome opportunity to discuss the importance of domestic oil purchasing syndicates. My priority is keeping all energy bills low for hard-working families and businesses, as well as keeping the lights on and moving towards a green energy future. Heating oil is a small but significant part of the energy sector. About 1.5 million households are dependent on heating oil to heat their homes and typically they are among the 4 million not connected to the gas grid in the UK. The Office of Fair Trading noted in its off-gas grid market study in 2011 a large variation between the four nations of the UK, with 80% of homes in Northern Ireland off the gas grid compared with 12% in England, 21% in Scotland and 19% in Wales. Proportionally, more off-gas grid households are single occupancy and/or house a person over the age of 60, so the hon. Gentleman is right to point out the effect on elderly people who are also among the fuel-poor.

Last year, nearly 4 billion litres of heating oil, which is primarily used for heating, was delivered into the UK market. As the hon. Gentleman said, heating oil is brought to consumers by a local distributor company from the refiners and importers. Some distributors have their own storage where they can keep a few days’ supply, while those that do not have storage collect oil from a wholesale terminal and deliver it directly to their customers. The price they charge is dependent on how much they had to pay for the oil, the volume required, and the cost of delivery. DECC analysis suggests that on average, at national level crude oil price changes are fully passed through into heating oil prices within a month. At times, the wholesale price for heating oil may also be influenced by local supply and demand issues.

The average cost of heating oil is currently 34.51 pence per litre, which is down 18p from its peak in September 2014. I have been clear to the oil companies that we expect them to continue passing on any future oil price falls, bringing benefits to consumers and the wider economy.

[Jim Shannon]

It is always a pleasure to hear the Minister reply to a debate. How will her Department focus attention on those in fuel poverty? Many of those people are not elderly, because some people are on benefits and have a low income. How does the Minister hope to focus on those people?

[Andrea Leadsom]

The hon. Gentleman has raised that issue in a number of debates, and I agree that fuel poverty is a key issue for our energy support. Everything that we do to support fuel, energy efficiency and warm homes will be directed at fuel poverty.

We are keen for people to join an oil-buying group because they can benefit from reduced prices and the ability to negotiate for large volumes, meaning cheaper oil for all those in the group. Action with Communities in Rural England, Citizens Advice, and the Federation of Petroleum Suppliers have produced guidance on best practice for forming and operating oil buying clubs. ACRE is made up of 38 rural community councils across England. Those are charitable local development agencies—generally based at county level—which have a strong history of leading, supporting, and enabling community initiatives to help communities to help themselves. That includes running oil buying clubs.

Citizens Advice has produced guidance for consumers who experience difficulties with their heating oil suppliers, and set out what to do if people are struggling with their bills. It also has a website search function to find oil clubs, although that is not necessarily a comprehensive list. The sector trade association, the Federation of Petroleum Suppliers, has produced separate guidance on oil-buying groups and published a mandatory code of practice for its members, as well as a customer charter to engage with consumers on a fair and consistent basis and implement best practice to raise standards. The hon. Member for Ceredigion mentioned work by the previous coalition Government, and the Cheaper Energy Together scheme through which the Government funded three oil buying clubs. A decent amount of lessons were learned, and informed guidance allowed new clubs to form and meet to the benefit of consumers.

Some suppliers offer a means of spreading the cost, such as the option of paying by monthly direct debit with a fixed-rate payment scheme. That allows customers to know how much they will be paying for oil over the coming year, and to budget accordingly. Some suppliers offer a top-up scheme where, either through telemetry or distributor knowledge, customers’ tanks are filled as required. Through the telemetry system, suppliers are automatically informed when a tank requires filling. As well as reducing the risk of customers running out of oil, that has the advantage of providing alerts for rapid drops in level, such as those that, sadly, are occasionally caused by theft or leakage. Most companies will inform customers of the price prior to filling their tank.

Although in their infancy, pay-as-you-go schemes linked with credit unions seem to have real potential for supporting vulnerable consumers. Such schemes provide flexibility of purchase, and ensure that when customers need fuel they are able to purchase it. As the Federation of Petroleum Suppliers advises, it is always wise for people to check their fuel price against other retailers on a regular basis, and to ask their suppliers to confirm the price prior to delivery.

The Government are fully committed to reducing energy bills, and energy efficiency is a key part of that. The spending review announced our intentions for a long-term, better focused successor to the energy company obligation from 2017-18 which will run until 2021-22, with a maximum envelope of £640 million per annum, rising with inflation. That will support the insulation of 1 million homes over the course of this Parliament. Officials have engaged with stakeholders to design a successor to ECO, and we will consult on our proposals next year.

We are also committed to helping people move away from dependence on fossil fuels. The renewable heat incentive is the world’s first long-term financial support programme for renewable heat. It provides financial incentives to instal renewable heating in place of fossil fuels. The scheme is designed to bridge the gap between the cost of fossil fuel heat sources and of renewable heat alternatives, with financial support for owners of participating installations. As of 31 October 2015, over 43,000 installations have been accredited on the scheme and over 481 GWh of heat has been generated and paid for.

I want to assure the hon. Member for Strangford (Jim Shannon), who made a point about fuel poverty, and the hon. Member for Ceredigion that my priority is keeping bills low for families and businesses while meeting our climate and fuel poverty goals and continuing to keep the lights on. I should like to draw attention to the work of my hon. Friend the Member for Suffolk Coastal (Dr Coffey), who used to chair the all-party group on off-gas grid, and continues to raise the issue in government. I urge Members who are interested in the subject to join that all-party group. I am always keen to hear new ideas on how we can better support those who are off-gas grid.

One way in which individuals can keep their energy bills low is by joining domestic oil syndicates and, as I have said, I have personal experience of how successful such initiatives can be. I urge consumers who belong to those initiatives to buy early, particularly as winter is approaching.

Scotland Bill

Debate between Jim Shannon and Andrea Leadsom

Monday 6th July 2015 Commons Chamber

[Andrea Leadsom]

I am delighted to respond this evening. We have heard a wide range of views—albeit some ranging away from the proposed amendments—and I thank hon. Members for all their contributions.

The hon. Member for Caerphilly (Wayne David) spoke to clause 49, on which the Smith commission agreement was explicit that the power to allow public sector operators to bid for rail franchises funded and specified by Scottish Ministers would be devolved. Amendments 157 and 158 are unnecessary. Amendment 157 is not necessary as not-for-profit entities, public or private, are not precluded from being franchisees already. Amendment 158 would create unnecessary uncertainty by allowing discretion on whether a public sector bidder could join a live procurement process and therefore does not enhance the drafting in any way. New clause 65 would give the Scottish Parliament full competence over railways. That clearly goes beyond the Smith commission agreement, and would create the potential for unwanted disruption of networks and relationships between franchise authorities, passenger services and cross-border operations. I therefore urge right hon. and hon. Members to withdraw amendments 157 and 158 and new clause 65.

Turning to energy company obligations and fuel poverty, amendments 149 to 153 would depart from the Smith commission agreement. The agreement recognised that decisions that could impact on all Great Britain consumers have an impact on the Great Britain energy market as a whole and on UK international obligations that should be made at a Great Britain-wide level and remain reserved. Costs incurred by energy companies owing to supplier obligations affect all Great Britain’s consumers. Different costs incurred by a supplier in one area of Great Britain may cause competitive disadvantages and higher costs for customers in other areas. We think it would be in the interests of both UK and Scottish Ministers that costs on consumers in one part of Great Britain should not be disproportionate to their benefits. We believe that proportionate costs across regions removes the possibility of those competitive distortions and cross-subsidy by consumers across Great Britain. We will look at ways of making the cost of obligations clear and equitable between Scotland and the rest of Great Britain, and will work with the Scottish Government to identify the best way of achieving that.

The hon. Member for Caerphilly raised the question of who will decide what causes detriment to the UK. I can assure him that we will work with the Scottish Government to set up a process and methodology for evaluating the impact of schemes implemented in Scotland on their own, and in conjunction with schemes implemented in England and Wales, on the Great Britain energy market and on any relevant UK commitments and obligations. I can tell him that UK and Scottish Government officials have already begun working together to scope out how such a process could work.

[Jim Shannon (Strangford) (DUP)]

The Minister refers to how to address the price of energy in different regions of the United Kingdom. One of the things we would like in Northern Ireland, if at all possible, is a connector between Scotland and Northern Ireland, which would reduce our prices. Is that part of the Government’s strategy? She has not mentioned Northern Ireland and I am conscious that I would like it included.

[Andrea Leadsom]

I think the hon. Gentleman means an interconnector. I am absolutely a huge fan of interconnectors. That is not a part of the Bill, but I can assure him that I am happy to discuss that at any time and to facilitate conversations with the Scottish Parliament. I am, however, quite sure he will not need me to do that and is able to discuss that with them directly.

Our proposals on energy company obligations and fuel poverty are fair to all consumers and align with the Smith commission agreement. I urge hon. Members not to press amendments 149 to 153.

Let me turn to renewables incentives. Amendment 154 would remove subsections (2) and (3) of new section 90C of the Scotland Act 1998, in clause 53, such that changes of a minor, technical or administrative nature would no longer be excluded from the requirement to consult Scottish Ministers, nor those made by the Secretary of State that are not subject to parliamentary procedure. The hon. Member for Aberdeen South (Callum McCaig) has raised his concerns about this area of consultation. Removing subsection (3) would remove the exclusion to consult the Scottish Ministers on any levy in connection with a renewable electricity incentive scheme. Amendment 154 would require consultation not just on the design of renewable incentive schemes, but on their operation. This would not be in keeping with the Smith commission agreement and would lead to over-complex and time-consuming consultations that would affect the smooth operation of the schemes.