(9 years, 4 months ago)
Lords Chamber
To ask Her Majesty’s Government what assessment they have made of the work of the Commonwealth War Graves Commission.
My Lords, this is a very well supported debate and the time limit for contributions is three minutes. As soon as “3” comes up on the clock the time is up. This is very important so that we can hear from the Minister. I very much hope that your Lordships will assist.
My Lords, it is a very great pleasure to be able to ask the Government what assessment they have made of the work of the Commonwealth War Graves Commission. I think that I am right in saying that today is the anniversary of news having reached London of the success of the Duke of Wellington at Waterloo. Of course, there are no graves or memorials to the many soldiers who lost their lives at Waterloo. Indeed, the First World War was the first occasion when individual graves were achieved for individual soldiers. That was thanks to the efforts of Sir Fabian Ware and the establishment of the Imperial War Graves Commission, as it was in 1917, under royal charter, which said that it should maintain “fit provision” for war dead in perpetuity.
The commission has done that with very great distinction. The scale of the operations is truly immense: graves and memorials for 1.7 million victims of World War I and World War II in 23,000 different locations in 153 countries. The Commonwealth War Graves Commission is responsible for maintaining, to a quality which I am sure many noble Lords will have seen for themselves, the equivalent of 994 football pitches in every corner of the globe. To do that it has some 1,300 staff, 1,080 of whom are gardeners, stonemasons and blacksmiths, with great expertise in horticulture, engraving and ironmongery. Indeed, in France, which I had the privilege of visiting privately earlier this year, there are even third-generation gardeners who come all the way from the First World War. In France the position now is peaceful but the commission also operates in some very dangerous locations, such as Gaza and the Sudan. I spoke to the director-general when I said that I was going to try to get this debate. I asked her, “What is your biggest problem today?”. She said, “My biggest problem today is that our gardeners’ hut in the Sudan is occupied by insurgents”.
The Commonwealth War Graves Commission has done a magnificent job in encouraging schools and visitors—1.6 million people every year visit the graves and memorials. Many of them are children. This organisation is not looking backwards; it is looking forwards with the use of new technology and apps to educate children and make sure that the next generation is involved in remembrance. It is a big challenge for it around the globe, but there is a particular challenge in the United Kingdom, of which I must say I was completely unaware, in that there are some 308,000 service men and women who are commemorated in the UK at 13,000 different locations with 170,000 graves. Of course, there are the great memorials at Chatham, Plymouth, Portsmouth, Tower Hill and Runnymede. That is the largest number in any country outside France.
I visited the battlefields of the Somme with my then-to-be son-in-law—now my son-in-law—earlier in the spring, just to make sure that he was okay and that we got on all right. I have to report that he is extremely okay and very interested in military history. We were able to look at the work that has been done on the battlefields of the Somme and for the Canadians at Vimy Ridge. It is magnificent. Even now, when bodies of soldiers are occasionally found, there is care and effort made through DNA to trace the families, to remove the names from those who are listed on memorials as unknown and put in place a grave and marker for those individuals. Each memorial has documents enabling relatives to find easily the place for their former loved ones.
Less well known are the operations in Palestine, Salonika, East Africa and north Italy—the forgotten corners of some foreign fields. There is the security challenge that the Commonwealth War Graves Commission has to meet in Libya, Syria, Gaza, Yemen, and in Iraq, where there are 54,000 Commonwealth war dead at 13 sites. Getting into Mosul today is pretty well impossible. In Baghdad North Gate the commission has been responsible for 511 new headstones, and in Basra 40,000 graves are in need of urgent attention. Nothing seems to faze this organisation and nothing seems to make it cut corners or reduce the very high standards that it sets.
I am conscious of the fact that many people wishing to speak in the debate have more knowledge and background than me. My purpose was simply, as an astonished bystander, to pay tribute to the work that the commission does. Many of our institutions are under attack in our country and many are subject to criticism. However, it is hard to do anything other than praise this organisation for a job well done—an organisation that does not seek publicity or to promote itself, but can take real pride. I ask my noble friend the Minister to acknowledge the work that it does, and to assure the House that there is no question but that it will continue to obtain the necessary government support and resources to continue that work and to meet its obligations under the charter to ensure that this continues in perpetuity.
(11 years, 3 months ago)
Grand CommitteeMy Lords, from the outset I acknowledge the long-standing interest that the noble Lord, Lord Judd, has in the countryside and the impact of energy infrastructure on the landscape. The noble Lord referred to this matter at Second Reading. I know that my noble friend Lord Greaves also has a lasting interest in wild places.
As a countryman who cares about all these things very strongly, I understand where noble Lords are coming from. This is an important issue, and one that the Government recognise, which is why we have already put in place various safeguards within the planning and regulatory system to ensure that visual amenity and other sustainability issues are taken into account before decisions on infrastructure are made. Ofgem has a clear duty to contribute to the achievement of sustainable development; it must have regard to the effect on the environment of activities connected with the conveyance of gas through pipes and the generation, transmission, distribution and supply of electricity. It is also required to carry out impact assessments for important decisions, which would include consideration of sustainability implications, including local environmental impacts.
Amendments 41 and 46 would require the Government to undertake sustainability assessments of the policy set out in the strategy and policy statement before it is either designated or amended. Of course, it is important that the impact of regulatory decisions is assessed, but the intention of the strategy and policy statement is to reflect existing policy; it will not be a vehicle for the introduction of new policy or duties, nor will it contain any regulatory or planning decisions. The more appropriate time for consideration of the potential environmental impact of energy policy proposals is when they are being considered by the planning authorities—and I entirely understand what my noble friend Lord Greaves says about balance. Existing legislation, including in relation to the energy national policy statements, already provides the framework to ensure that this is done.
Amendments 42 and 50 would require Ofgem to show how it has complied with its general environmental duties to some extent in its forward programme work. Of course, I understand the noble Lord’s concern that Ofgem should take full and proper account of all its duties in drawing up its work plans.
The strategy and policy statement does not override Ofgem’s existing duties to contribute to sustainable development and, because of the requirement for Ofgem to set out its strategy for implementing the strategy and policy statement in its forward work programme, we believe that it will increase the accountability of the regulator. That is also reflected in the requirement to report annually on its contribution to meeting the strategy and policy statement’s policy outcomes. Indeed, the noble Lord, Lord Judd, referred to the question of the requirement to demonstrate compliance with Ofgem’s environmental duties. Ofgem will be required to report on how it contributes to meeting the policy outcomes in the statement. Existing duties will still apply and we would expect Ofgem’s report to take account of those and how they impact on relevant regulatory actions. I would also expect both the work plan and the annual report to cover the relationship between the strategy and policy statement, as well as Ofgem’s remit.
Amendment 42A would require Ofgem to have regard to the effect on the environment of activities connected with the conveyance of gas through pipes and with the generation, transmission, distribution and supply of electricity. Under the existing regulatory framework, Ofgem already has duties that require it to have such regard. Again, I refer to the point that the noble Lord, Lord Judd, made. That duty is imposed by the Gas Act and the Electricity Act and will still apply even if the guidance were to be repealed. As I have pointed out, nothing in the strategy and policy statement overrides those duties, which would continue to apply. Indeed, it is a reasonable expectation that the SPS will pick up on important parts of the guidance. In my view, Amendment 42A would therefore not be necessary.
The noble Lord, Lord Greaves, asked whether the statement covers oil and gas exploration. No, it would not. It applies only to Ofgem’s existing regulatory duties. Ofgem does not regulate oil and gas exploration and no changes to that are proposed.
Amendments 43, 44, 45, 47 and 48 would introduce formal requirements for the Government to consult specified interest groups in relation to the SPS. As has been referred to, the Bill already makes provision for wide public consultation as we develop the contents of the SPS. I reassure the noble Lord that we intend to engage fully with all relevant stakeholders, including, where relevant, those who represent an environmental perspective. Furthermore, Ofgem will consult on its forward work plan, which will include its strategy for meeting the SPS policy outcomes. That will provide another opportunity for stakeholders to express their views. In the light of that, we do not consider it necessary to name particular interest groups in the legislation.
Amendment 49 would require that, when the strategy and policy statement is laid before Parliament, it is accompanied by a statement explaining how it relates to other government statements on energy policy. The legislation already requires that the strategy and policy statement sets out the Government’s strategic priorities and other main considerations of its energy policy. It will therefore have to reflect existing policy and explain the context in which it is made.
To refer to a point that my noble friend Lord Greaves made about how the strategy and policy statement relates to national policy statements for energy, the SPS will set out the Government’s strategic priorities and policy statements in relation to issues where the Government consider that Ofgem regulation has a significant role, whereas the national policy statements deal with the development of nationally significant infrastructure in particular sectors—for example, energy and transport. They are the framework for decisions by the Secretary of State on applications for development consent orders for nationally significant infrastructure projects and may be a material consideration for local planning authorities when determining other infrastructure proposals. It is for these reasons that this amendment is unnecessary.
I hope that the reasons I have outlined have reassured noble Lords about why the Government do not think that this amendment, the intention of which is entirely laudable, is necessary. I hope that I have been sufficiently reassuring for the noble Lord to feel able to withdraw his amendment.
The noble Lord, Lord Judd, other noble Lords and I will read the Minister’s speech very carefully. There was some helpful stuff in it. I have two questions. First, given that we will have the whole summer before we return for Report, might it be possible to firm up the kind of thing that might be in the SPS referring specifically to social and environmental issues as the replacement, which it says that it is going to be, for the stuff repealed by Clause 126? Secondly, does the Minister accept that, despite the fact that the NPS and SPS have different roles and therefore different purposes, if they were in conflict in any way, even in quite detailed ways, that might cause problems because people would pick up one and quote it against the other? If the SPS is to reflect existing policy, in those areas where it covers the same areas as the NPS on energy—and it clearly will in some areas—does it mean that it will follow the NPS, that the NPS will be the superior document and that the SPS will simply reflect the NPS or is it more complex than that? If it is more complex than that, we might want to come back on this.
Before the noble Lord withdraws the amendment, will the Minister comment briefly on the two supplementary questions I asked him?
My Lords, if the guidance is repealed, an environmental duty in the electricity Acts and the SPS will cover the same ground as is currently the case. However, I will reflect on what the noble Lord has said and will write to him if there is anything more constructive on which I can report.
My Lords, as I say, I take very seriously indeed what the Minister has said and will consider it carefully before Report and think how to respond appropriately then. At this stage, in the way that we do these things in Committee—what alternative is there?—I beg leave to withdraw the amendment.
My Lords, this amendment speaks to the setting of the strategy and policy statement required by the Bill. Part 5 is an interesting aspect of the Bill because it moves away from purely electricity and considers all energy matters. It requires that a strategy and policy statement be maintained and formulated for Great Britain’s strategic priorities in relation to energy policy. I stress that because, as we all know, energy policy is far more than simply electricity or gas but encompasses all the primary energy used to supply energy to businesses and consumers for heat, electricity and transportation needs. This may seem academic but it is important to stress this because time and again Governments have been tempted to equate energy with electricity. They often extend that to include gas but it is rare for there to be a holistic view of all energy. The establishment of the Department of Energy and Climate Change created a structure in which I had hoped that a more holistic view of energy could be developed.
However, there are still departments of government with responsibility for energy that sit outside the DECC framework, most notably the Department for Transport, and it is not quite clear how the Department of Energy and Climate Change relates to other departments that have an impact on energy policy. That is true at a departmental level.
At the regulatory level—this part of the Bill also deals with the independent regulator Ofgem and its duties—there is clearly a gap. I am encouraged that the setting of a strategic policy statement will, I hope, create a much clearer framework of who is doing what and who has responsibility for what. We have a regulator for electricity and gas, but it is not an energy regulator. The powers do not extend to the many consumers who are off the gas grid network and rely on unregulated sources of energy. Periodically there are concerns, which often reach the media, about people who have been forced to purchase from other suppliers and be completely dependent on that fuel in the winter months. There is no price regulation there.
Colleagues in another place have raised concerns over how non-domestic consumers are represented by our regulator. We tend to equate the regulation as being on behalf of consumers but that is a broad definition and there is a subset of consumers, the small and medium-sized enterprises, which are facing considerable issues. I hope that Ofgem’s remit will cover them and that we hear more about how they can be protected.
I have tabled my amendment to force the Government to consider the gaps in current regulation. That will become increasingly important, not least because, as we move forward with a low-carbon agenda, the three major energy markets—electricity, heat and transport—are starting to merge and cross over. The noble Lord, Lord Flight, last week tabled an amendment on the interplay between biofuels being used in the heat market and transport markets. These issues are becoming increasingly apparent. It is not just that fuels can be diverted into different markets but a process of electrification of transport and heat is underway. I do not know what all the issues will be as we go down this path but we should certainly have a regulator capable of looking across all the energy markets.
Another aspect to this that we hope the SPS will address is the creeping lack of clarity about the relative roles of the department and the regulator. I give just two examples. At the moment, there is a tendency for Ofgem to be involved in policy. Perhaps the most notable example of that is Project Discovery, Ofgem’s foray into the murky world of security of supply, which takes it well beyond the role of a price and market regulator into a policy arena in which the department should operate. On the other hand, the department is starting to act like a price regulator, with the Prime Minister starting to make policy on tariffs. We are shortly to hear a lot more about those proposals but it is clear that there is an increasing crossover and complete lack of clarity here. I hope that this SPS will help to address that.
My next point relates to how the commodity markets are regulated. This is an important issue because, as we have seen in the press in a number of cases, where there is potential for market abuse there needs to be a clear regulatory framework. In the commodity fuel markets, there is a lack of clarity on the distinction between where the FCA is involved in regulating markets and where Ofgem’s role starts. This will become a very important issue, not least because we are now considering a Bill in which we are placing quite a high degree of emphasis on reference prices against which we will be comparing strike prices. I have raised this in the very helpful briefings we have had in the run-up to the Bill. I was referred to the implementation of REMIT, a Europe-wide move to prevent abuses in the wholesale energy market, but I am not fully reassured by that. I have a number of questions in relation to it. Has it been implemented in the UK? When will it be implemented? The deadline for the introduction of penalties for abuse was 29 June. Have we implemented the penalties? Are we compliant with that European requirement?
REMIT goes only so far. When we are looking at a system that is highly dependent on market-based prices, I am concerned about who is going to ensure that the data that go into that process are comprehensive, holistic and not subject to abuse. In the oil market, we have heard of abuses by oil companies and about rating agencies colluding to provide only a small part of the information, not the full picture. If that is possible, do we not need to look at statutory underpinning for this information? How can we develop robust reference prices if the information provided to rating agencies is done on a voluntary basis and has no statutory underpinning? What are we doing to ensure that we have full and complete transparency in the data that are provided to develop these reference prices?
It will come as no surprise that our party is very critical of Ofgem. I have said that I do not think that the role of Ofgem is broad enough and have talked about the lack of clarity and the confusion about where the FCA’s role starts and where Ofgem’s role starts. The most worrying criticism of the regulator is that it is failing in its current remit. It is not acting to enforce fairness. Its process of reform started in 2008 and was evaluated in 2011. Of the 16 benchmarks set to compare progress against, 12 showed no improvement. That is simply not good enough. From 2008 to 2011 is a long period, and there was no improvement in 12 of those benchmarks. Ofgem is clearly failing in its stated purpose of enforcing fairness in the market.
Ofgem has failed to live up to expectations about transparency in the market. I know that this will come up in later parts of the Bill as we talk about access to markets and liquidity. In 2011, the accountants BDO issued a report, I think at the behest of the Government, looking at what could be done to improve transparency in the market. Eight recommendations were made. Of them, six were quietly dropped; only two were pursued, and they were varied from the original advice. This is a serious issue, and this is the part of the Bill where we talk about the authority and the role of regulation. We have very serious concerns about Ofgem’s remit and its ability to deliver on its current functions. Our policy would be to replace this regulator with a regulator fit for purpose to deliver proper regulation and to protect consumers now and in the future across the whole energy market.
My Lords, I am grateful to the noble Baroness for providing the opportunity for us to consider these matters further. My understanding is that Amendment 41A is intended to require the Government to publish a report on the case for introducing new regulatory arrangements for the wider energy sector as well as for gas and electricity within a year of the Bill coming into force.
It is true that matters such as the supply of heating oil or liquid petroleum gas do not fall within the energy regulator’s remit, but there are good reasons for this. A chief component of Ofgem’s remit is to regulate the monopoly companies that run the electricity and gas networks. No equivalent natural or structural monopolies for distribution or supply exist in other energy sectors, so the Government do not consider that there is currently a case for them to be regulated by Ofgem or a new energy regulator. We need to bear in mind that increased regulation would be likely to increase the costs for businesses operating in these sectors, which would probably be passed on to their customers. This of course would be a concern to domestic and non-domestic customers. I entirely agree with the noble Baroness; we must think of non-domestic customers and small and medium-sized businesses, which are so much part of the economic recovery.
Can the Minister just say whether or not we have met the deadline of 29 June?
My instructions are that I will need to write to the noble Baroness. I am sorry about that but I have my riding instructions, as the noble Baroness can imagine. The noble Baroness also asked about the regulation of business consumers. Ofgem is taking action on issues affecting business consumers as part of the retail market review—for example, rollover contracts.
For the reasons that I hope I have articulated, I do not believe that it would be in the public interest for us to be undertaking the sort of work that the noble Baroness has suggested. I am well aware of her party’s views on Ofgem and the desire for a different arrangement but that is not the policy of the current Government. For the moment, while I am most grateful for the opportunity provided by the noble Baroness to debate these matters further, I hope that she might feel able to withdraw her amendment at this time.
My Lords, I thank the Minister for his answers and for his offer to write on the specific details in relation to REMIT and the setting of the reference prices, which I believe are central to the Bill and may come up in subsequent debates.
It is rather amusing and ironic for the Minister to be praying in aid uncertainty as a reason for not moving forward on this; we have already had debates about the degree of certainty in the Bill, and this side of the Committee clearly believes that the Bill does not provide anything like enough certainty, which is exactly why we have the current hiatus in investment. I do not believe that sorting out proper regulation would cast a shadow over the markets; most people in the market accept that things need to be changed and fixed. If we have a regulator that has gone native, that is in no one’s interests—certainly not the consumer’s. I do not accept that argument.
On the question of extra cost, obviously all regulation has a trade-off between proper regulation and uncovering cost savings for consumers, against the additional burden of the reporting requirements on industry.
I urge the Government to look closely at the policy on transport fuels. One can dismiss it and say that there is no monopoly, but everyone who knows how that industry works knows that it is an oligopoly and that there is very little variance in pricing. There is also a severe problem of vertical integration in all these large energy companies, going up the chain to exploration and down to retail and the pump.
That is not to say that there is nothing to be looked at here. The opposite is the case. The issue has been overlooked for many decades and the time has come for the energy sector to be under the same degree of scrutiny in order to provide value for money for consumers. I do not buy the argument that this would lead to a net cost. You just have to look at the profits in some of these sectors to see that there is plenty of scope for prices to be brought down, with proper competition. That is what regulation should be about. I urge the Government not to be complacent and sweep this issue aside but to do some further work on it. I am happy to beg leave to withdraw the amendment.
(14 years, 3 months ago)
Lords ChamberI thank my noble friend Lord Greaves for initiating this debate on rural communities. It is appropriate that I should declare an interest as deputy chief executive of the Countryside Alliance and as a member of the National Farmers’ Union. My maiden speech was last Thursday and I look forward to a continuing affection for the Thursday country. A positive future for rural communities goes to the very heart of what we all seek to promote. I welcome this opportunity to draw particular attention to the role agriculture and game management in the uplands play in ensuring a dynamic countryside and helping to address the challenges of climate change.
I would, however, like to make a few general comments on rural communities and the threats they face to their long-term sustainability. Rural communities are often at the sharp end: there is a lack of affordable housing; they suffer poor public transport provision; they have an ageing population; and they are often the last to achieve broadband connection, which can limit the creation of new enterprises and jobs. This is something that we should all worry about and we should help to promote a positive resolution.
Each aspect of rural life is interdependent and the challenges facing communities must be tackled together. If there are no houses and jobs, communities lose young families, which in turn means that there is no longer the critical mass to support local schools and shops. People in rural areas travel around 10,000 miles per year to access essential services, which is 43 per cent more than in urban areas. The greater distances make families more reliant on having a car and therefore disproportionately affected by increases in fuel prices. The problem is exacerbated by the loss of local garages. Some people now have to travel up to 30 miles to their nearest forecourt.
I turn more specifically to the uplands. Farming remains central to the character of these tightly knit and resilient communities, but requires a new generation of young people who want to take over the farms and businesses. Somehow we need to address the exodus of young people from upland communities by ensuring that there are positive prospects for those who want to make their lives there. Yet still many upland farmers are now living below the minimum wage. We need to ensure that planning authorities, particularly in the national parks, have the flexibility to enable sustainability to be implemented in the broadest sense, to allow sensitive development of affordable housing and businesses to thrive while respecting the landscape and environment.
British farmers not only produce food to some of the highest standards in the world, but also play a vital role, as they have done for many centuries, in shaping and maintaining the very landscape for which Britain is so famous. Hill farming is an essential element of managing moorland habitats and contributing to the cultural identity of many upland communities, which in turn makes them attractive places to visit. Some 45 million visits are made per year to national parks in England alone, with tourist spending of more than £2.2 billion. The economic value of tourism in the uplands is underpinned by the essential land management currently being carried out by farmers and gamekeepers. Land abandonment surely must not be an option, and policies must be developed to continue to reward farmers adequately for the stewardship they undertake for the benefit of the nation.
The uplands are home to habitats of international conservation value and some of the most spectacular scenery in the UK. They are places that offer solitude from the stresses of modern life, a quality which attracts many visitors to enjoy a range of activities and brings in vital income. Those who visit the uplands are rightly attracted to these areas because of their natural beauty, and that beauty has been much enhanced by long-standing management practices. The fact is that heather moorland, an iconic upland habitat, is rarer than rainforest. Some 75 per cent of this moorland is to be found in Britain. Through sensitive grazing, managed heather burning and revegetating bare peat, hill farmers, gamekeepers and land managers continue to provide benefits to both the environment and the public.
Much of the uplands have been given special protection under EU conservation designations because of their biodiversity attributes. Moorland managed for grouse has been shown through scientific research to support greater diversities of breeding waders, in particular at Otterburn, which looked at the breeding successes of curlew, lapwing and golden plover. It was found that 60 per cent of these bird species fledged on keepered land compared with only 16 per cent on non-keepered land. Some 47,000 people a year participate or are involved in grouse shooting, which puts £190 million into local economies. This economic engine drives notable conservation benefits.
Perhaps I may focus on the role the uplands also play in providing wider environmental benefits. Approximately 70 per cent of UK drinking water flows from upland catchments. In this context, I draw your Lordships’ attention to the land management practices used by gamekeepers that help to ensure clean water supplies. By revegetating bare and damaged peat and blocking drainage channels, gamekeepers stabilise the peat and reduce erosion. These practices reduce sediment loads, discolouration and contamination of water. It is in the uplands where the greatest opportunities for mitigating climate change lie. Peatlands are the single largest carbon reserve in the UK and researchers have estimated that if all the peatlands in England and Wales were maintained in pristine condition, they could absorb approximately 400,000 tonnes of carbon a year. Land managers therefore have an essential role to play in ensuring that the uplands act as carbon sinks.
The Secretary of State for Environment, Food and Rural Affairs in the other place has requested a review of farming regulations. This has been widely welcomed by rural communities. Over the years they have seen a complete onslaught of regulations. The benefit of the lighter touch should not be underestimated; we should trust people more. The Minister has a considerable knowledge of rural communities and the uplands in particular. There is a strong team of Ministers at Defra with a track record of rural roots. The countryside looks forward to hearing more of their vision of the future.
Our country faces testing times; we can, and must, rise to the challenges. The rural communities across the uplands of all parts of the United Kingdom may be small in numbers, working in tough conditions, yet they are in the front line for us all, helping to address the ever present challenges of climate change, energy supply and food security. They deserve our respect and support.