Energy Bill [HL]

Debate between Lord Grantchester and Lord Cormack

Tuesday 26th April 2016 Lords Chamber

[Lord Grantchester (Lab)]

My Lords, I shall speak to Motion A4, which contains my proposed Amendment 7TD.

Today, once again, your Lordships’ House returns to the Energy Bill. How deeply damaging the actions of the Government have been is evidenced again, at this late stage of the Bill between the two Houses, by the booklet produced with four amendments relating to the Government’s refusal to accept the considered amendment in your Lordships’ House a fortnight ago. All four amendments are targeted once again on the original two clauses relating to onshore wind that the Government inserted into the Bill following the success of the Conservative Party at the general election.

Let us not forget what was said a fortnight ago. Yes, the Conservative Party won the election. Yes, the party had an ambiguous passage in its manifesto regarding the end of subsidies to onshore wind. Whatever may be contended from the passage, the renewables obligation for onshore wind was drawing to a close in any case by 31 March 2017. By aggressively—some may say vindictively—bringing this forward to 18 June 2015, the Conservative Government were, at the stroke of an announcement, creating their own mess. Government must be an orderly process, not dogma followed by diktat.

[Lord Cormack (Con)]

My Lords, could the noble Lord not just reflect that the Conservative Government were doing no such thing? They were responding to demands and requests from all over the country.

[Lord Grantchester]

I well understand the words of the noble Lord, but my contention is that the Conservative Party was responding to the voice of UKIP.

Government must be an orderly process, not dogma followed by diktat. Under their own endeavours, following due process and local planning procedures, investors knew where they were and had to complete by 31 March 2017. By drawing the line somewhere with their grace periods, as we were ready to concede last week, the Government have arbitrarily cut a swathe across the many excellent schemes that were drawn up in good faith, with money invested and local backing, all to do their bit to decarbonise the UK’s energy sector.

Of course, any scheme falling on the wrong side of the line will be hurt. The amendments before your Lordships’ House contend that fairness and decency are still not in evidence within the Government’s concessions. The noble and learned Lord, Lord Wallace of Tankerness, may well be right in his assertions under Amendment 7TC to allow Section 36 projects. Certainly, they are very similar to cases won on appeal after 18 June 2015 but refused planning permission prior to 18 June 2015, a situation allowable under the Government’s concessions. I pay tribute to him for the dedication he has committed to getting this situation resolved and I thank him for his introductory remarks today.

My noble friend Lord Foulkes of Cumnock also makes a compelling case for specific projects in Scotland. When noble Lords have received industry briefings covering a wide range of seemingly genuine cases, it underlines the huge damage the Conservative Government have created and unleashed in the renewables sector, especially in Scotland, with many jobs and livelihoods of hard-working farmers and others at stake.

My noble friend Lord Foulkes mentions the case of Sorbie, which, although called in by the Scottish Government, who subsequently withdrew any objection, was granted on appeal in November 2015. Can the Minister say why this is not covered by the concession to allow projects to proceed that were won on appeal? Has the Minister consulted with the Scottish Government on this case? I press the Minister to agree when he comes to reply that this case taken up by my noble friend is allowable.

On Amendment A1, in the name of the noble and learned Lord, Lord Wallace, Amendment 7T is the one in my name which was accepted by your Lordships’ House a fortnight ago. I argued then that this was logically compatible with the concessions already accepted by the Government. The local planning authority had—I stress—indicated relevant planning consents, although written notice was delayed, due to a Section 75 or Section 106 agreement being needed, until after 18 June 2015. This cannot be said to be against Conservative Party policy. It is widely considered that the decision made by a democratically elected local planning committee embodies the principle of giving local people the final say. To deny these cases where written consent was made after 18 June 2015 is to deny and prevent local people having the final say on onshore wind applications due to a pedantic technicality, as the final say had effectively been made prior to that date. The projects have, arguably, a stronger case than those originally refused local consent before 18 June but subsequently won on appeal after that date. I am grateful that these arguments won the backing of your Lordships’ House a fortnight ago.

This amendment was judged to include all the cases—a total of seven—that could be argued to be a minimum of unfair treatments needing to be rectified. They amounted to 90 megawatts. The wider onshore industry has come to a consensus to support this single, narrow extension to the Government’s proposed grace period criteria. It is hugely frustrating to find your Lordships’ fair compromise rejected by the Government in the Commons.

Labour wants to stand up for Scotland. Six of these seven schemes affected by this extension are based in Scotland. The Government have gone against the general consensus to devolve to the Scottish people the power to resolve their own issues by claiming back to the Westminster Parliament the issuing of renewable obligation certificates, which are to be solely under the jurisdiction of the UK Parliament. I thank my noble friend Lady Worthington for her wider remarks regarding the same situation under CFDs.

Labour is standing up for jobs in Scotland. The Minister in the other place, Andrea Leadsom, accused Labour of adding costs to consumer bills through the £10 million extra these schemes, totalling 90 megawatts, would add to consumer bills. However, analysis by the Independent Renewable Energy Generators Group shows that, had the Government accepted this amendment, it would have actually saved consumers over £10 million a year, as renewable technologies other than onshore wind could cost £20 million a year—being more expensive than onshore wind—given the necessity to reform the UK’s electricity system and decarbonise the economy. Instead, these schemes will be mothballed in Scotland and could cost jobs there.