Oral Answers to Questions
Debate between Lord Barker of Battle and Guy Opperman(10 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Gregory Barker
I will certainly meet the hon. Lady, and I shall be happy to look at the matter in more detail. It is primarily a matter for British Gas, which has an obligation to deliver, at scale, measures to help the fuel poor, but we are determined to ensure that those measures are enforced.
The ECO is now in good health, and we have extended it to 2017. Unlike the programmes introduced by the last Government, which were very stop-go and hand-to-mouth—for instance, the carbon emissions reduction target was initially scheduled to apply to one year but was then extended for another year and then another—the ECO will provide investor certainty until 2017, which is good news for the fuel poor.
Guy Opperman (Hexham) (Con)
Identifying those who live in fuel-poor households is of paramount importance, and Members of Parliament, the Church and credit unions have a role to play in that. We in Northumberland invented oil-buying clubs in this country, and we now have 13 of them, covering almost all the off-grid provision. We have produced a leaflet of which we are particularly proud, which explains how people can reduce energy bills, and we are sending it to individual households.
Gregory Barker
I commend my hon. Friend for his excellent work on an issue that is so important to his constituents. I should love to see a copy of that leaflet. We are keen to find out more about the ideas that my hon. Friend is pioneering with his community, and to learn from good practice and spread it throughout the country. Perhaps we shall have an opportunity to do that when we launch our community energy strategy.
Oral Answers to Questions
Debate between Lord Barker of Battle and Guy Opperman(11 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text
Gregory Barker
The hon. Gentleman does have a point. Ultimately, we will not defeat dangerous manmade climate change unless there is a global solution. Although we can play our part, the important thing is that we secure a global deal involving all the major economies, particularly China, America and the other fast-growing developing economies, and get everybody on a sustainable economic path. That is why we are putting more and more effort into securing a meaningful, robust global treaty in 2015.
Guy Opperman (Hexham) (Con)
14. What steps his Department is taking to ensure that residents of Northumberland who are off the grid have sufficient support during cold weather this winter.
Oral Answers to Questions
Debate between Lord Barker of Battle and Guy Opperman
Gregory Barker
I would be delighted to return to Milton Keynes, and to visit the constituency of my hon. Friend the Member for Wellingborough (Mr Bone), particularly if there is an opportunity to compare notes with Mrs Bone.
Guy Opperman (Hexham) (Con)
18. With reference to the findings of the all-party parliamentary group on off-gas grid, what plans he has to help residents living off the gas grid.
Fracking
Debate between Lord Barker of Battle and Guy OppermanWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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The Minister of State, Department of Energy and Climate Change (Gregory Barker)
I congratulate my hon. Friend the Member for Morecambe and Lunesdale (David Morris) on securing the debate and giving the issue such rigorous, thoughtful and well researched attention, as it deserves.
The role of unconventional gas and hydraulic fracturing, or fracking, is indeed topical. I have just come back from the United States, and no one there who takes the slightest interest in the energy or climate change agenda can fail to be moved by the huge impact that it is having on the economics and politics of energy—the huge potential benefits to the US economy, the challenges presented to other parts of the energy sector, and the questions raised about the long-term climate change implications of the new fossil fuel.
Guy Opperman
I am grateful to the Minister for giving way and I apologise for interrupting his speech just as he was gaining momentum. He talks eloquently about the way in which America is transforming its energy provision and dramatically reducing its energy bills. In his State of the Union address in January 2012, President Obama said that any company drilling on Government land would have to disclose the chemical used for fracking so that
“America will develop this resource without putting the health and safety of our citizens at risk.”
Is not that the right way for us to be going ahead as well?
Gregory Barker
But apart from that—[Laughter.] No, my hon. Friend makes a serious point and I understand his concerns. No one could suggest that Lancashire is not taking more than its fair share of the burden of the energy economy. However, there are many opportunities to be gained. Each of the points that he raises bears serious consideration. Let me assure him that my Department not only looks at these things individually, on their own merits and in their own right, but takes into account the wider picture that is created by these individual interventions.
Guy Opperman
I welcome the point about the wider picture. In Northumberland, which is no less deserving than Lancashire, there are applications for two open-cast mines. Given that those open-cast mines will exist for years and will produce barely eight to 10 days’ worth of coal for particular power stations, and that fracking has the potential to produce about 150 billion cubic metres of gas, one has to add up the relative benefits. The people of Northumberland, and of the wider country, want an energy strategy that takes into account these points. On that issue, I endorse entirely what was said by my hon. Friend the Member for Lancaster and Fleetwood (Eric Ollerenshaw).
Gregory Barker
My hon. Friend’s eloquent intervention is on the record, and I certainly take on board his points. I now want to crack on because I want to reply in some detail to the serious points that my hon. Friend the Member for Morecambe and Lunesdale raised in his opening speech.
Wood Panel Industry
Debate between Lord Barker of Battle and Guy Opperman(13 years, 8 months ago)
Westminster HallRead Full debate Read Hansard Text
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Gregory Barker
I will develop my theme in my speech, but I think that there is a genuine point of disagreement in our approaches. I agree with the right hon. Lady; there is absolutely no excuse for not publishing the account that we take of the impact on the wood panel industry in the impact assessment, and we will address that. I am sure that there are ways that we can improve measures to mitigate the impact on the wood panel industry, and we are keen to see more wood used in houses. However, the difference between us may lie in the fact that, fundamentally, we believe that the market will respond with more supply, both domestically and globally. This is an immature market—this is a theme that I wish to develop—and the biomass industry in the UK has fallen to a very low level. Historically, we powered the country on biomass. I represent a constituency in East Sussex, the most wooded county in England. I know, just from my own experience, that the vast majority of woodland in that county has fallen into a state of disrepair and is not actively managed. There is significant scope to bring in new supply, both globally and in the UK, and I will come to that in more detail if I may.
Guy Opperman
Does the Minister not see that there is a real risk of the law of unintended consequences? If he does not address the problem of subsidised biomass and its effect, then the impact on the wood panel business will be significant and severe, and until he says something on that issue, we will struggle.
Gregory Barker
Let me make a little progress with my speech. I am getting slightly ahead of myself, and I will address those issues in the course of my remarks.
On Thursday, as hon. Members have said, we launched the world’s first incentive for renewable heat. That was an important step forward for an Administration who claim they want to be the greenest Government ever, and a genuine, tangible sign of walking the walk as well as talking the talk, of putting investment—money—where our mouth is.
The scheme will provide long-term support for renewable heat technologies, from ground-source heat pumps to wood-chip boilers. It will help drive a sevenfold increase in renewable heat over the coming decade, which will help shift what currently is a fringe option firmly into the mainstream. We expect the RHI to deliver an additional 57 TWh of renewable heat, bringing the total to 68 TWh by 2020 and saving 44 million tonnes of carbon by that year. It is part of a bigger picture, in that we expect 500,000 jobs to be created by the end of the decade in the renewables industry across heat, electricity and transport. The RHI alone could potentially stimulate billions of pounds of new capital investment.
We are reviewing the incentives for renewable electricity under the renewables obligation. The RO banding review will ensure that the level of support for biomass electricity reflects industry costs. It will also reflect the UK Government’s ambition for large-scale bio-electricity, which is being considered through an evidence-based review of biomass resources and their use, to be published in 2011. Analysis of the best use of biomass will form an integral part of that work. I would certainly welcome further contributions to it from hon. Members and the interests that they represent, because it needs to be evidence-based, and we are genuinely open-minded about it.
As I have just mentioned the RHI, I would like to take the opportunity to address the question of why we have decided that only renewable heat installations installed after 15 July 2009 will be rewarded. The RHI is a mechanism designed deliberately to bring forward sufficient new renewable heat to meet our renewables targets. The design was begun by the previous Government—I have to give them credit—and is not something that we dreamed up. It is not intended to be a retrospective reward mechanism for early adopters or existing users of renewable technologies. The justification for it was to pull in renewable heat technologies and renewable heat users that otherwise would not have moved in this direction.
Moreover, in the context of the current economic climate and the huge deficit that we inherited from the previous Government, it is vital that we maximise the value for money delivered by public expenditure. Existing renewable heat generators have already invested in the new technology without needing or expecting the support of a financial incentive, so while I can see why they could make a case for it, I am afraid that we would not consider extending the RHI to include installations prior to July 2009, as that would not be a prudent use of taxpayers’ money.
Gregory Barker
Let us be absolutely clear: the coalition values the jobs in the wood panelling industry, as we value all jobs. It is certainly not our aim—unintended or otherwise—to see those jobs disappear. That neatly brings me on to my next point, which is about the impact of other wood-using industries on wood prices and trends, and competition for a limited resource.
We recognise that the increased use of wood for energy risks negative impacts on other potential users of wood. We understand that the wood panel industry is facing more competition for their raw materials. We also want more wood to be used in the construction of homes. Our analysis shows that the deliveries to wood fuel markets are increasing from a very low base. In 2005, just 100,000 green tonnes of softwood were delivered to fuel markets, accounting for just 1.2% of total softwood deliveries. In 2009, that had increased to only 600,000 green tonnes, less than 7.5% of total softwood deliveries.
In real terms—perhaps this is the most telling point—the price of softwood saw-logs increased by 14% over the five-year period ending in September 2010. I have not done the arithmetic, but I would have thought that the rise was below inflation over that period. I apologise that I do not have more recent statistics. Obviously, this is a dynamic model, and we will continue to inform Members. I do not think anyone could argue that that represents significant inflation in costs. If there were a problem of the magnitude hon. Members have described, it would be reflected in the price, but, clearly, we have not seen that to date. However, I accept that that is clearly something that we will have to watch.
Guy Opperman
Surely it is unarguable that prices have risen, and it is surely without doubt that the opportunities to proceed on the basis that the Minister is talking about, although entirely laudable, as we all accept, are limited by the amount of wood in this country that can be produced and sold on.
I have one final point, but I will be brief—
Guy Opperman
The Minister has plenty of time. What is his expectation of how much wood will be sold?
Gregory Barker
I do not agree with my hon. Friend. Yes, there has been a rise in wood prices, but my maths tells me—I am happy to be corrected if I am wrong—that it is below the inflation rate. Wood is a commodity like everything else, but a 14% rise over five years is not alone a cause for concern. Over 20 years, the real-terms price of softwood saw-logs has fallen by almost 46%. The lowest value was reached in March 2009, so the pricing indicators do not support his argument.
Price have recovered slightly since March 2009, but the bottom line is that even if prices increase—I anticipate that they will—we are starting from a very low base. In real terms, they are substantially lower now than 20 years ago.
Oral Answers to Questions
Debate between Lord Barker of Battle and Guy Opperman
Guy Opperman (Hexham) (Con)
The timber industry is a significant employer in Hexham. All of us support wood biomass, but there is currently a cross-party team, with Members from both the Labour Benches and our own, seeking to change the distorted energy subsidy for wood biomass. Would the ministerial team meet the cross-party team?
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
We are very clear that wood biomass has a key role to play, particularly in local energy economies, which we want to see developed to encourage a greater link between local communities and the energy that they consume—coppicing, for example, has great biodiversity as well as low-carbon advantages—so I would happily meet my hon. Friend and his team.