Energy Bill [HL]
Debate between Lord Marland and Lord Davies of Oldham
Lord Marland
I thank noble Lords for their contributions. The noble Lord, Lord Whitty, has made a valuable point in asking whether the Bill should state “must” or “shall”—shall we or shan’t we?—so there are many imponderables. I am also grateful for the contributions made by my noble friends Lord Deben and Lord Jenkin of Roding, both of whom speak with great authority on these subjects.
The most important thing is that, as we take this Bill through its meandering course, we have the flexibility and the opportunity, as Ministers, to consult industry and all bodies that have an idea on this, and eventually to tighten the code of practice. At this point, however, it would not be appropriate for us unilaterally to change these words, which currently give the Government flexibility. I am heartened by and grateful for the words of the noble Lord, Lord Deben, that for the authority of Ministers it is imperative to have that flexibility. In the spirit in which we have conducted this Bill, I am happy to consider Amendment 3 in principle, as it is very important that the Secretary of State establishes a scheme through regulation. In considering the matter, it is rather important that we remove any doubts about the issue. That is why we are prepared to consider this amendment, but as the noble Lord, Lord Whitty, would suggest, we need flexibility in the other areas as we continue to go forward.
As to the cost of assessors, further consultation has taken place with industry. We strongly believe, as I said in Committee, that many of the suppliers will pay for the assessment, because it is to their benefit. Typically, I would imagine, if one went to B&Q, as one does when buying a home, one might be provided with a list of approved assessors and an assessor would then go in and make the assessment, which would be paid for by the provider. Our research with industry and with the potential providers suggests that that will, we hope, answer the important question of my noble friend Lord Cathcart.
In the spirit of what I have just said, I hope that my comments on these amendments find favour, and that the amendment will be withdrawn.
Lord Davies of Oldham
My Lords, I am grateful for the tone which the Minister has taken, as he did throughout the Committee stage, indicating that he will further consider our proposals. He will forgive me if I indicate that “considering” is not quite a promise of change, and he has had one further look at it as a result of our deliberations in Committee. I want to pay due credit for that deliberation.
I think that the noble Lord has an amendment on the code of conduct in the next group that would greatly strengthen his case and his position, and if he had prayed that in aid in relation to why “may” should remain rather than be replaced with “must”, I would certainly have been floored. Possibly, however, he wants to make the case for the next group of amendments in his own good time, and I recognise that. What I am indicating is that it is an indication of the Government’s approach to these issues. Our approach is as one. The reason why we are concerned to have concepts like “must” in the Bill, at certain crucial structural points, is obvious. I accept entirely my noble friend Lord Whitty’s point about an additional feature that should be taken into consideration, to which he would not necessarily want to attribute the concept of obligation.
On the structural issue, the reason why we think an obligation should be present is simply that we have got to communicate a message to many of our citizens who, as the noble Lord, Lord Deben, indicated, comprise an enormous variety. The enormous numbers of people in the nation who have to respond to this legislation, hopefully in a constructive way, are such that the legislation needs to be as clear as possible, so that the message that is sent out is sufficiently clear to be readily understood.
As I indicated, because of the Minister’s response to these amendments and even more in his actions with regard to future intentions—I refer to the next group of amendments, which are government amendments that are constructively expressed—I am happy to withdraw my amendment at this stage.
Lord Davies of Oldham
My Lords, while it is for the Minister to respond to the eloquent identification of the issue by the noble Lord, Lord Jenkin, in his concluding remarks the noble Lord identified a dimension of that issue for which I do not think I have seen the answer in any of his earlier speeches on it—that is, as he says, that someone has to pay. I imagine that if this paragraph is taken out of the Bill, the question of who has to pay will have deleterious consequences for the success of the whole concept behind the Bill, but I imagine it is for the Minister to identify those issues.
Lord Marland
I am grateful to the noble Lord, Lord Davies, for helpfully answering this question for me because it is absolutely fundamental that if we withdraw the liability from one party, we have to establish where it is going to fall. No one knows more about the industry than my noble friend Lord Jenkin of Roding. He is very close to it indeed and, as he said, this is a complex accounting issue on companies’ balance sheets. These implications need to be looked at carefully and that needs to be done in consultation with businesses. I refer to what the noble Lord, Lord Davies, said earlier: if we withdraw from one, we have to work out who is going to pick up the bill at the end.
I make a strong commitment to my noble friend Lord Jenkin of Roding—he knows that when I make these commitments, I mean them—that we will be liaising with the energy suppliers and the finance providers over the next few months as we put together the important financing of the Green Deal which, as we all know, we have not as yet structured. It will, however, be an important structure and through that we will develop a policy and provide absolute clarity on this issue for, we hope, all parties. It is fundamental that all parties go into this Green Deal approach unified and clear of their position and, indeed, that the customer is clear of his recourse in that position. That is a commitment that the Government will make to this process and I hope that the noble Lord will be satisfied to withdraw his amendment.
Lord Marland
I am extremely grateful that this amendment has been put forward as it goes to the very heart of how we are going to develop as a nation over a rocky period—the noble Lord, Lord Davies of Oldham, and my noble friend Lord Teverson mentioned this—when growth, enterprise and opportunity will be fundamental to restoring the country’s financial viability. That is why the Government have committed to spending £250 million on apprenticeships over the spending review period. Some 75,000 apprentices will be created between now and 2014-15, leading to more than 200,000 people starting an apprenticeship each year. This is a fundamental commitment which I am sure the whole House applauds as very good news.
I was hoping to make an announcement on apprenticeships and the Green Deal. However, as noble Lords will understand, I am a very junior Minister and more senior Ministers will want the glory of making that great announcement, which, in fairness, would be more appropriately made next week in Green Growth Week. On a serious note, I hope that that announcement is satisfactory news for all concerned, particularly those on the opposition Benches who have tabled this amendment, as it will demonstrate our commitment to Green Growth apprentices and the Green Deal. As I said, I fully concur with the two noble Lords who have spoken on this subject. On that basis, I hope that the noble Lord will withdraw the amendment.
Lord Davies of Oldham
My Lords, I am grateful to both noble Lords who have contributed to the debate. I extend my sympathy to the Minister for the fact that he is not able to make these great announcements. However, we welcome any advance that the Government make in this very important area.
I thought that I had achieved enough leverage to get this amendment included in the Bill. I realised that the Minister might take a little persuading but I had strong hopes that I could appeal to other sections of the coalition. Nevertheless, when the noble Lord, Lord Teverson, complimented me on my remarks but said that he did not support the amendment, my heart sank. However, I beg leave to withdraw the amendment.
Energy Bill [HL]
Debate between Lord Marland and Lord Davies of Oldham
Lord Davies of Oldham
I am confused as I was not sure whether the noble Lord, Lord Teverson, was moving or withdrawing his amendment. When I made my contribution last time on the general lines on which the noble Lord spoke today, I must say that I had every sympathy with the main principles on which his amendment is based, but the Bill is not the place in which to locate this issue, important though it is. We heard not just from the noble Lord, Lord Teverson and the noble Earl, Lord Cathcart, last time, but we had the benefit of the contribution from the noble Lord, Lord Oxburgh, who talked about energy prices from a historical perspective and explained how they had established themselves on a basis that is indefensible in terms of what we are seeking to achieve. I refer particularly to the fact that the old standing charge necessitated the heavy impost of the early units.
We are aware of the fact that we need a revision of the issue. The noble Lord, Lord Teverson, should be congratulated on articulating the case forcefully in Committee and for again today identifying why he still advocates the main principles. I do not think—and I think he was coming to the same conclusion—that it quite fits within the framework of the Bill. That is why last time I said that the amendment should be withdrawn and the Minister seemed to think that I had done his job for him. I had not done that then, and I have not done so this evening. I look forward to the Minister’s response.
Lord Marland
My Lords, I have a declaration to make. I am not an Essex person which seems to be the thing to declare before speaking in this debate.
The noble Lord, Lord Teverson, as the noble Lord, Lord Davies, suggested, was considering withdrawing his amendment. My department has been made available to him for discussing and working through this problem which we take seriously. We have made it available to my noble friend Lord Cathcart. The noble Lord, Lord Davies, is right that this is probably not the right Bill for this tariff but the department will be happy to work with the noble Lord and reach a conclusion. As he rightly says, it will take several months, but I invite my noble friend to either withdraw or do whatever he was going to do with his excellent amendment.
Lord Davies of Oldham
My Lords, I rise briefly to say that I appreciate the fact that the noble Lord, Lord Teverson, is presenting a very important argument, which we discussed intensively and fully in Committee. I have no doubt that we would have had a much more intensive debate this evening were it not for the lateness of the hour. That does not mean to say that those of us who have kept our speeches short, as I intend to do, do not have enormous respect for the arguments that the noble Lord, Lord Teverson, has put forward, but we did have a full debate in Committee and I am very grateful that he drew our attention to the matter again this evening.
Lord Marland
My Lords, I concur with the noble Lord, Lord Davies of Oldham. We had intensive debates in Committee and at Second Reading on this subject. My views are well known on the subject. That is why our department facilitated discussions with the Minister of State, Greg Barker, who is discussing this with the Environment Agency in the next few days. I think he had a meeting with him today, but I do not want to get diaries out of kilter to see how we can take the matter forward. He knows, as well as I do, that we are very interested in the subject and are committed to offering every possible opportunity for those who are interested in the subject, in taking the matter forward and in hoping to bring this provision into reality in what is a very difficult area. I think the noble Lord was thinking of withdrawing his amendment because of the meetings he has had. With that, I hope he will formally withdraw his amendment.
Perhaps I may take the opportunity of thanking noble Lords for staying up, particularly the noble Baroness, Lady Smith of Basildon, who is still recovering from her ghastly operation, who, with great cheerfulness, has maintained an excellent presence here tonight, and I thank all noble Lords for their contributions so far and for helping in what has been a very harmonious evening.
Energy Bill [HL]
Debate between Lord Marland and Lord Davies of Oldham(13 years, 10 months ago)
Grand CommitteeRead Full debate Read Hansard Text
Lord Davies of Oldham
My Lords, first, I am surprised that my noble friend is surprised that the Front Bench has signed the amendment. It would be somewhat remiss on our part if we did not see merits in it. He made an excellent case. What he kindly—for the Government—left out of his analysis of the situation is an actual feature of the national parks and the Broads Authority themselves: their powers in relation to the Public Bodies Bill that is before the House at present. Perhaps the Minister will offer some reassurance on that front. Suffice it to say that one can already see the national parks adjusting to a changed future in terms of the pressures upon them. We all know the particular circumstances of the Broads Authority, which was considered by this House only 18 months ago.
I emphasise the obvious fact that it is a good move to associate the national parks with the same capacity as local authorities. In fact, it seems somewhat surprising that this issue has not been pressed somewhat earlier than this Bill. I congratulate my noble friend on that point. I emphasise to him that we are in full support. I hope that on this constructive amendment the Minister is able to give a rather more positive response than has been the case on the most constructive amendments thus far. I look forward to his reply.
Lord Marland
I am not sure that I quite caught the end of that last sentence. Perhaps it is best that I did not. Suffice it to say that I welcome the amendment tabled by the noble Lord, Lord Judd. I am grateful that it should have the support of his Front Bench, which is excellent news. It is not the first time that his amendments have found favour with government. We are obviously extremely disposed to look at this amendment. Unfortunately, the timing was too tight for us to consult as widely as we wanted with the national park authorities before introducing this Bill, so we have to do that. Of course, like the noble Lord, I welcome their ambition to generate electricity on their own land and support that commendable ambition. With that in mind, and knowing that we will give this amendment consideration in coming days and months, I—
Energy Bill [HL]
Debate between Lord Marland and Lord Davies of Oldham(13 years, 11 months ago)
Grand CommitteeRead Full debate Read Hansard Text
Lord Davies of Oldham
My Lords, I do not underestimate the challenge presented by this legislation in terms of making it effective. We recognise that good people and true subscribe to the broad objectives, but that is somewhat different from action, which they may not always define as being entirely within their interests. As my noble friend Lord O’Neill has identified, there may be some necessity for a degree of regulation. We hope that the thoughts of the noble Baroness, Lady Noakes, are translated into action so that regulation can be kept to a minimum; we hope that we get a fair wind behind these concepts and that they work well. However, the Secretary of State should certainly have the power to make a regulation and not have to wait unduly for a review report that would cover many dimensions, not just the ones we are particularly concerned about here. Therefore, we are very much in favour of the first amendment but do not see the merits of the second.
The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Lord Marland)
My Lords, welcome back; it is very nice to see such a full contribution from noble Lords. I thank all noble Lords for their contributions as we move into day four. They have been incredibly valuable. I assure everybody that we are drawing up a list of comments and suggestions, which we take very seriously. We will look at them and if any noble Lords seek clarification, there will be some opportunity for that between Committee and Report. We will make sure that there is an opportunity for discussion. It would be quite nice if we could get through the Green Deal today; this will be our fourth day on it. It looks as though we are moving on quite nicely. It would also be very nice to get through the AV Bill today.
Lord Davies of Oldham
I have noticed that the AV part of the Bill has long since been discussed. It is the other parts that are more difficult.
Lord Marland
I am obviously delaying our finishing the Green Deal Bill by adding some levity to the occasion. I will get on with it.
There are just a couple of points that need clarification after Monday’s debate. I will run through them so that they are on the record. As I said earlier, if people want clarification, let us have it now because I do not want to reopen a debate that we have already had. The definition of “private rented sector” in the Bill covers accommodation provided under an assured agricultural tenancy occupation, which was one of the points raised, or a protected occupancy for the purposes of the Rent (Agriculture) Act 1976. If they are let under an assured or regulated tenancy, this will not cover all cases. I have already agreed to consider whether the definition of “private rented sector” should be extended in the light of these amendments. That is for the subject of agriculture, which was discussed some amendments ago.
On payment holidays—another subject that my noble friend Lady Northover had to tussle with womanfully—Clause 30 enables us to allow the bill payer, who might be the landlord or the tenant, to suspend payments. However, suspension is likely to be available only in very limited circumstances. An example might be tenancy void periods. However, we do not expect tenants to be able to suspend payments, other than in the usual cases. The bill payer may also be able to enter into an arrangement with their energy supplier to reschedule their Green Deal payments.
Finally, on the purpose of the review of the private rented sector, our intention is that a key aim would be to safeguard against unnecessary and burdensome regulation. I hope this deals with the point of the noble Baroness, Lady Noakes. The Government are not set on regulation but on encouraging enterprise and activity. If we have to resort to regulation, it is, as the noble Lord, Lord Deben, said, probably a failure of government.
I hope that that clarifies the matter. We have debated this subject and I am grateful to my noble friend Lady Maddock for saying that we have discussed it already. We have given it a very good airing and I am sure we will have an opportunity to air it yet again. We are always open to discussion.
Lord Davies of Oldham
My Lords, this has been a fascinating debate, not just about contemporary and immediate housing policy, and the necessities that face us with regard to the threat of climate change and improving the carbon content of our housing stock, but about housing policy in history. I very much enjoyed the speech of the noble Lord, Lord Deben, and he made an important contribution to our deliberations this afternoon. We are as one with him on the importance of the date and of bringing into line an industry which, in the past in the United Kingdom, has not always been the most innovative and has distinctly conservative—with a small “c”—elements to it. It is important to realise that this Government, like the previous Government and all of us as a whole community, are determined on the issue of carbon content because it is so important in the battle against climate change.
The noble Lord will forgive me if I do not go into housing history but he might recall that council housing was introduced by a Labour Government. He might also recall, having cast aspersions on the immediate post-war Government, that there was a fair bit of reconstruction to do, other than to housing, from 1945 to 1951. He might also think with regard to the present housing situation that people have either to buy or rent these houses, so cost is important.
In the basic need of housing, we are rendering many of our fellow citizens vulnerable to a market that is under terrible stress at present. The imminent possible significant interest rate rises cause enormous difficulties for people who have to meet housing costs, which in Britain are so reflective of movements in interest rates. In these circumstances, he might think that those parts of Conservative Party history that have put us in this position may not make us well placed to encourage our community to respond to the necessity of this dimension of housing construction and housing need. For the immediate and foreseeable future—in terms of housebuilding, 2016 is not very far away—people are bound to be constrained by cost and anxiety. The whole of the housing market is bound to be plagued by difficulties of people being unable to afford what they are committed to in terms of houses.
Having said that, I welcome the fact that all contributions to this debate responded to the noble Lord, Lord Jenkin; he has played a valuable part in identifying the proper anxieties that the Government should have, such as the fact that they have to weigh up the overall position of what can be afforded and achieved. Regulations require enforcement. Who is going to do that—local authorities, with their huge, abundant resources to train and develop the capacity to carry out this degree of scrutiny and control? In the immediate future, we are not looking at too rosy a picture on that front either. The noble Lord has identified our anxieties and the Committee—I hope that the Minister will take this message and respond to it—is very strong in its commitment to this amendment, which offers a great deal to the Bill. We are pleased to support it.
Lord Marland
My Lords, that was a magnificent debate. I am very interested to have had a history lesson. It is a slight shame that the noble Lord, Lord O’Neill, provoked political crossfire, because both sides are completely aligned on this. I am delighted to hear about events in 1951 but I am surprised that the noble Lord is of an age where he can remember them—he looks so young. I take his lesson on board. We are all lucky to be able to look in the rearview mirror and complain and criticise, but that is not what we are here to do today; we are moving forward.
I declare my own interest, having been involved in a building project that is going before the planners today—obviously I am not involved any more—for a small carbon-neutral eco-village. I have been working with the Prince of Wales and the Prince of Wales Trust on further housing development in this area, so I am in the vanguard of everyone in this Room and completely in support of them, with perhaps the very mild exception of my noble friend Lord Jenkin, who I know supports the spirit of this measure but is more worried about the timetable. I do not need to take messages back to the Government; I am completely in the vanguard and supportive of the attitude of the previous Government and the current Government to this subject.
In the end, though, we must remind ourselves why we are here: to talk about the Green Deal, not about new housing, which is what the amendment deals with. I am delighted to take this matter back to my honourable friend the Housing Minister, who is fully committed to enabling all new homes to be zero carbon from 2016, and non-domestic buildings from 2019. In July last year, my honourable friend made clear the Government’s ambitions for a low-carbon eco-friendly economy, with substantial and cost-effective reductions in carbon emissions forming an essential part of our effort. However, we are debating how we can improve the existing housing stock, not the new housing stock. On that basis, I invite my noble friend to withdraw his amendment.
Lord Marland
We started at 3.45 pm and we have been here for four hours. That is how long I was instructed that we were here for. We are running over by a minute. I do not think that that is unreasonable; no one is trying to frustrate the Committee. I did not intend to stop the noble Baroness, Lady Maddock, making her excellent speech. I naturally thought that we would finish the amendment.
Lord Davies of Oldham
Well, my Lords, the Minister may assume that we are going to finish the amendment, but we are all entitled to contribute. I would first like to emphasise that we have a great deal of sympathy indeed with the amendment, which has many parts to it that we can see are constructive and advantageous. We note the reference in the Committee to the Energy Saving Trust, a body that is being greatly reduced in its capacity to play any role because of the resources of which it is being starved.
Secondly, my understanding is that the Fuel Poverty Advisory Group is named in the Public Bodies Bill. If the amendment of the noble Baroness, Lady Maddock, were agreed to, presumably that would have implications for the support that she would in due course give to opposition amendments in the Chamber on the Public Bodies Bill that try to protect the very body to which she refers in her amendment. It scarcely makes a great deal of sense to table an amendment about a body that her Government are bent on abolishing under proposals in the Public Bodies Bill. We certainly would wish to give broad support to the amendment, but there are difficulties with it.
I say again that Committees work to strict rules. We have always obeyed them. I have never been on a Committee that has sat past 7.45 pm. This is the first time. If other noble Lords have experienced that, I am seriously in error. I thought I understood the rules regarding the timetable of the Committee stage and I still find it extraordinary that the government Front Bench did not move the adjournment when it should have done.
Energy Bill [HL]
Debate between Lord Marland and Lord Davies of Oldham(13 years, 11 months ago)
Grand CommitteeRead Full debate Read Hansard Text
Lord Davies of Oldham
My Lords, having had recent experience of the phenomenon to which the noble Lord, Lord Jenkin, has drawn attention, I can say that in Government we of course took the recommendations of the Committee very seriously. I am glad to see these amendments. I appreciate that the Minister has something of a choice, but in any case at Committee stage he is not going to accept these amendments exactly as they are written. However, the Opposition give their full support to the concept behind the amendments. Therefore, I hope that the Minister responds positively and that the appropriate amendment is tabled.
The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Lord Marland)
My Lords, I welcome back the noble Baroness, Lady Smith of Basildon, and hope that she is well. I hope that all noble Lords have had an agreeable weekend. We will now carry on with the Energy Bill.
The amendments in this group would affect a number of orders, including those that define qualifying energy improvements and eligible properties. We need to strike the right balance between normal administrative functions and parliamentary scrutiny of the criteria by which administrators exercise their functions. I am very grateful to my noble friends Lady Noakes and Lord Jenkin of Roding for tabling their amendments. However, we need to ensure that the amendments have the intended effect in law. Therefore, we will warmly and favourably consider the amendments and all the recommendations of the Delegated Powers Committee.
I hope that honourable Members have found my explanation reassuring and will not press their amendments.
Lord Davies of Oldham
My Lords, I was about to make the same speech. But as the Minister is likely to listen to a noble Lord who supports the coalition rather than to the Official Opposition, I will merely say that of course it can be seen from our amendment that we saw no reason why there should be a time constraint—a delaying element—built in. We very much agree with what the noble Lord, Lord Teverson, said about the impact of these amendments building an extra year of delay. But we are not quite clear on why there should be a restriction in Clause 37(8), which is why we have tabled an amendment for its deletion.
I agree with the noble Lord, Lord Teverson. Of course, we will not get a perfect profile of the challenge which lies ahead. Governments never have perfect information on which to act, any more than anyone operating in the so-called market mechanism ever has perfect information on which to act. But we will have clear indicators of where the issues lie. We do not see why we should build into statute—certainly, not through an amendment—an extension to what the Government think is realistic and what can be achieved. I hope that the Minister will answer the points made by the noble Lord, Lord Teverson.
Lord Marland
My Lords, I should like to correct the noble Lord, Lord Davies of Oldham, by saying that of course I listen to the Opposition. It is fundamental to this entente cordiale that we currently enjoy that I listen to the Opposition. The whole purpose of this debate is to listen to people and to take in their views. We now have two sides of the argument: one side says that we should start the review at a shorter time, and the other side says that we should push it out and asks whether the time is readily available.
The review will not be just one review; it will be constant. We have to keep this under constant review. Having listened to the arguments, I would be minded—and I will urge my colleagues to do the same—to start our first review in 2013. At least that would be a start and allow us to see, as my noble friend Lord Teverson asked, whether it is working. We should do that at the earliest possible time and set down a timetable in which to do it. The noble Baroness, Lady Noakes, perhaps feels that we should give a greater time. Of course, there will be a greater time, because we will review it to see whether this is working.
We are trying to achieve an acceleration of a reduction of carbon and of take-up on the Green Deal. It is incumbent on the Government to make sure that it is working and to urge everyone to get on with it. Therefore, I invite the noble Baroness to withdraw her amendment. Before I sit down, I should declare an interest as a landlord, which I perhaps should have done at the beginning. It is in the House of Lords register of interests.
Perhaps I may help my noble friend who was thrown into the lion’s den with some rigorous questioning and answer two or three of the questions that were put. The noble Lord, Lord O’Neill of Clackmannan, who is not in his place, asked what would happen to short-term tenancies if bills were put up as a result of these measures. My answer to that is that they would be very short-term tenancies because people would look elsewhere for a better and more commercial short-term tenancy. We are in a competitive market in that respect.
As regards payment holidays, the Bill enables the Government to specify circumstances in which Green Deal payments can be suspended. The policy of this is being consulted on, as one would expect, and we will develop that as we go through consultation. But we do not expect that tenants will be able to opt out other than in the usual circumstances.
I ask noble Lords to forgive me for dealing with these questions now, although they might want to come back to these issues. But let us do that as we follow the Bill through by way of information. The noble Lord, Lord Teverson, asked about the enforcement of building regulations. Obviously, that is a matter for CLG and we will pass his remarks on as noble Lords would normally expect. I hope that that clarifies a couple of the points and that it enables the noble Baroness to withdraw her amendment.
Lord Davies of Oldham
The noble Lord has clarified a number of interesting points but we are talking about dates here and I am not sure the Minister has responded on the issue of dates. What is the point of having a statutory limit with regard to these regulations in circumstances where the Government are hoping to make progress? As the noble Lord, Lord Teverson, indicated and I agree with him entirely, we do not know the nature of the information, how full it will be or the basis on which the Government will act. Why build in a set date when in fact the Government may be able to act against their good instincts with regard to this Bill earlier if it were not prescribed by the legislation? We do not need this prescription.
Lord Marland
The answer is quite simple. We have to put in a prescribed date or it is unfair on those who have to fulfil their obligations by that time. If you do not prescribe the time when we are going to review it, they have no idea of the timetable on which they have to act, so it is very clear. I have made quite a concession already that we are going to review the first date, which will be 2013, and that thereafter there will be dates to monitor how this Bill goes forward. I disagree with the noble Lord on this rare occasion. We have to send clear signals to the market as to how this is going to operate.
Lord Davies of Oldham
My Lords, I have not the slightest doubt that the Government will apply a cold and analytical eye to these issues, because that is their role. I hear what the noble Lord, Lord Jenkin, says, and we all know that certain powers are more honoured in the breach than in their exercise. But, of course, the powers underpin the position of the local authority. He is absolutely right to say that local authorities do not often exercise their powers: but if they did not exist at all, standards would conceivably be a good deal lower, because everyone would know that if minimal standards were not observed, the local authority would not be able to take action.
These amendments commend themselves because they introduce a floor to the position. They say, basically, that these are the powers that local authorities will enjoy. They may not have to exercise them often, but if they do not exist, the Minister will have to show how enforcement can effectively take place. It seems to me that these amendments are a constructive way of underpinning the Bill with an effective sanction. Given that, I think that the noble Lord, Lord Jenkin, is on somewhat dangerous ground if he says that the issue of enforcement depends on the level of resources at your disposal, and therefore underperformance may be looked at in those terms. If that were translated to the police under the present cuts, the Government would be in serious trouble. One has to look carefully at the issue of what level of resources is available, but what is important is that it is only through local authority enforcement that certain minimum standards with regard to this legislation can be achieved. We should seek to guarantee that such powers exist. The degree of enforcement will depend on resources, on will and on a general perception of the value of the legislation. We have said all along that the legislation depends not on compulsion but on the engagement of the community. That is the main driver. The issue covered by the amendments is the provision of an element of underpinning, which I subscribe to.
Lord Marland
I am grateful to my noble friend Lady Maddock for putting forward the amendment. Obviously it has considerable merit. The greater the fine, the greater the determination we show to achieve what we set out. On this occasion, contrary to the last, I agree with my noble friend Lord Jenkin of Roding—generally I agree totally with the noble Lord—that £5,000 is a reasonable limit. It is a considerable amount of money that is in line with existing limits for the amounts that local authorities can fine landlords for letting out substandard and hazardous accommodation. On that basis, and with due respect, I invite the noble Baroness to withdraw her amendment. As she rightly says, we have spoken to other amendments covering various parts of the Bill, and no doubt we will in future as well.
Energy Bill [HL]
Debate between Lord Marland and Lord Davies of Oldham(13 years, 11 months ago)
Grand CommitteeRead Full debate Read Hansard Text
Lord Davies of Oldham
My Lords, the Minister will be relieved to hear that I do not have a great deal to add, as he has quite a bit to answer from his noble friend Lord Cathcart, who has identified issues which concern us all. Whether the answers come down in relation to the landlord or in any other respect, there are anxieties also about the tenant. We need a clear position with regard to that. We have our uncertainties and I am grateful to the noble Earl for having identified those.
The noble Lord, Lord Whitty, will accept what the noble Lord, Lord Jenkin, had to say about the fixed rate of interest. I once had a friend who took out a fixed-rate mortgage with a London authority just two years before the oil price rise in the 1970s. We can all recall inflation running at staggering figures at that time and interest rates going well into double figures. If you had a fixed-rate mortgage of 2 per cent, you reaped considerable advantages from that. With regard to a scheme that has any length of time attached to it, the question of fairness over a period of time has to be addressed.
My noble friend Lord Whitty raised the obvious question of what those costs will be and the interest which will bear upon the initial person living in the property. Consumer rights need to be safeguarded. We want clarity on that point too. Our amendment requires clarity on the changeover, to which the noble Earl, Lord Cathcart, also referred, with regard to whether the relationship between the improver and the person paying the Bill could change to the disadvantage of one or the other. How will the scheme work to guarantee that there is fairness over the considerable period of time involved in this exercise? That was the burden of the questions addressed earlier today.
I do not really need to add my voice to this matter because, if my noble friend Lord Whitty and the noble Lord, Lord Jenkin, are worried about the word “fee”, I am too. I, too, had also identified that. So that is a question for the Minister to answer. Is he not lucky to be in the place that he is?
Lord Marland
I thank the noble Lords very much. Just before I respond to the amendments put forward by the noble Lord, Lord Whitty, among others, I want to clarify some comments on the previous amendments relating to Clause 4 about the Green Deal providers deciding how they would apply parts of the Green Deal, such as the assessment or the golden rule. I hope that I did not give the impression that firms could pick and choose. I hope I gave the impression that customers could pick and choose. Nevertheless, I want to be clear about that and that the prescribed methodologies for these steps, including expected savings, are very much part of the Bill.
I hope that I highlighted the beneficial flexibility, which experts and customer insight will have to present information in a useable format, as well as communicating accurately in line with the regulation. I want to emphasise another important protection. It covers all credit arrangements. Let me put on record that for consumers the Green Deal will need to meet the requirements of the Consumer Credit Act with only limited exceptions. For example, all communication on the terms of the plan would need to meet responsible lending rules.
I turn to the excellent amendments in the name of the noble Lord, Lord Whitty. Clause 5 sets out requirements for what terms must and must not be present in a Green Deal plan. In doing so, it builds on Clause 4 by further specifying the basis on which a Green Deal can be offered. Clause 5 ensures that, through the terms of the plan, key consumer protections are in place about the financing as well as the advice, the measures and the installation. Subsections (2) and (3) ensure that no charge over any person’s property may be taken away by way of security. Early repayment cannot be required of the bill payer, except in conditions to be set out in regulations, and a bill payer’s liability for maintaining Green Deal repayments cannot be extended beyond the period for which they are the bill payer for a property. This ensures that the Green Deal does not become a personal loan and remains a charge on the energy bill.
The noble Earl, Lord Cathcart, wishes us to expand on this point, particularly on when the property becomes vacant. As regards the person then liable for the bill at the end of a tenancy, that obligation would usually revert to the owner. Clause 2(10) also makes provision for where there is no energy bill because supply and connection charges have been suspended. We will provide in regulation that the person who would otherwise be the bill payer, usually the owner, is liable for the charge. I hope that that answers the question posed by the noble Earl.
I have just been passed a note saying, “Be fast if you can” and I am trying my best. I thought that I was being quite fast. Amendment 13A proposes a further element to the terms of the plan to provide for confirmation of the ownership and maintenance of the Green Deal improvements.
Lord Davies of Oldham
My Lords, the amendment seeks to clarify some important aspects of the clause and identifies just what the Opposition’s anxieties are. I hope that the Minister will be able to reassure us on this. It is quite clear that necessary consultation will take place between the improver and any potential bill payer. It is important that we appreciate the obvious fact that whoever is saddled with the additional costs that are reflected in energy bills knows exactly what is going on in relation to the property.
The issue does not arise with regard to the householder for obvious reasons, but we are also concerned with kinds of property entirely different from properties inhabited by the owner-occupier or a single tenant. We are concerned with the situation where there are improvements going on across a number of flats, for example, where the improver is the landlord but the individual tenants are going to be the bill payers. We want to make sure that, in any such exercise, everybody is fully informed and knows what is going on.
We also recognise, and I hope that we have included this satisfactorily in the amendment, the enormous danger of the awkward one person putting a veto on desirable improvements right across the range of the property. That would lead to a situation in which proposals were vitiated simply because one had no framework at all to deal with the minority—not that I am against minorities, nor do I think that at any time the individual’s rights should be overridden. However, we have to take the interests of the generality into account in circumstances where someone, for all sorts of reasons that we do not dare to presage, might be awkward.
Of course, there is the obvious fact that, with regard to bill payments, some may consider that they might be in for the shorter term because they might be a little older than other people in other properties and that any costs at this stage—anything at all that puts up a fuel bill—is disadvantageous to them, while at the same time they might not think that there is much in the way of long-term benefits for them because they may not think that their own term is very long. Such difficulties must be overcome.
This is a probing amendment. It merely asks the Minister to identify both the process of consultation and how he thinks the difficulties that may occur from time to time should be addressed. I beg to move.
Lord Marland
My Lords, this clause enables the framework regulations to require that the energy bill payer consents to the adding of the Green Deal charge to their bills. This is important in cases where the Green Deal plan is set up by someone such as a landlord who does not pay the bills for the property. This clause will enable the framework regulations to prevent, for example, landlords from imposing charges on to tenants’ bills without first obtaining their express written consent. The clause also enables the framework regulations to provide for redress in cases where it transpires that the necessary permissions or consents to the improvements have not been obtained—for example, that the improvements have been made without consulting the freeholder.
I am grateful to the noble Lord, Lord Davies of Oldham, and other noble Lords for Amendments 16A and 16B. As I have outlined, there is adequate provision within this clause for the framework regulations to set out more detail on the issue of consent where the improver and bill payer are different people. It is important that such detail is contained within the framework regulations, as the detailed arrangements may be subject to change as the Green Deal develops. These regulations will be subject to the affirmative procedure.
In addition, it is not our intention to force the Green Deal on to any party. It must be allowed to work on a voluntary basis, even where the improver and the bill payer are different people. We are proposing powers under the private rented sector chapter that would ensure that a landlord does not unreasonably withhold consent to a tenant’s request for a Green Deal. However, these powers would be used only if the sector as a whole does not take advantage of the Green Deal and improve properties voluntarily.
I turn now to Amendment 16B. The Bill contains powers to provide for redress in cases where an improver incorrectly confirms that he has obtained all necessary consents to the improvements. We do not consider that it is necessary, as this amendment seeks to do, to provide for redress in respect of matters agreed to by the improver, as the improver will himself confirm consent by signing up to the Green Deal. I hope that this gives the noble Lord reassurance, enabling him to withdraw his probing amendment.
Lord Davies of Oldham
My Lords, I am partially satisfied. I am pleased to note that the noble Lord says that the regulations will be subject to the affirmative procedure, so we recognise that the Government appreciate the importance of this. However, surely the matter of the principle of consultation and the certainty that attends on it is of such importance that it ought really to be on the face of the Bill. I understand that the details ought to be in regulations and I accept entirely his point about changes over time. We all appreciate the obvious fact that you cannot have excessive detail in primary legislation. However, I am not pressing him on the detail at this point; I am pressing him on the principle underpinning the operation of the clause and I am not certain that the clause is clear enough. I hear what the Minister says. As I said, it is a reassurance that the regulations are going to be before Parliament, but we have some anxieties and so might return to this at a later stage. I beg leave to withdraw the amendment.
Lord Marland
I thank noble Lords for their suggested amendments to Clause 14 to limit the level of financial penalty on individuals and companies for failure to comply with the disclosure and acknowledgement provisions. This clause provides the powers of the Secretary of State to make regulations to ensure that sellers and licensors comply with their disclosure and acknowledgement obligations. The clause allows for the following specific provisions to be made: sanctions for non-compliance, including civil penalties; requiring the Green Deal provider to cancel the liability of a bill payer to pay Green Deal plan instalments; requiring the Green Deal provider to refund any payments already made; and requiring those at fault to pay compensation to the Green Deal providers.
I understand noble Lords’ desire to protect individuals and businesses from excessive penalties. However, the disclosure and acknowledgment requirements are vital to the effective operation of the Green Deal and indeed to protect the customer, so we need robust and transparent sanctions to ensure that they are all complied with. We will work with relevant industry stakeholders to develop options as to how these provisions will apply in practice to minimise instances of non-compliance. I wish to emphasise that we will consult before setting out these arrangements in regulations.
Our aim will be to use existing and well established systems of sanctions and redress where possible. Further consideration is necessary to determine what level of civil penalty would provide sufficient deterrence to ensure compliance, but I trust noble Lords understand that it would be premature to make a decision on an upper limit at this stage. In conclusion, I assure noble Lords that we will seek to ensure that penalties are proportionate. I hope that this assurance will enable the noble Lord to withdraw the amendment.
Lord Davies of Oldham
I do not wish to pre-empt the noble Lord, Lord Jenkin, but my amendment, too, was a probing one and I am satisfied with that reply. I beg to withdraw.
Lord Davies of Oldham
I am grateful for the clarification on the terms of this amendment. The purpose of the amendment is to draw attention to the additional ways in which the Government are intending to disconnect someone’s power. We need to be clear about this. We all know the controversies of the past in relation to disconnection, and we also know that the major energy companies are careful about disconnection issues, particularly with regard to winter disconnections and vulnerable households. However, of course that refers to the big providers; and it is merely a code of practice and therefore not in legislation. We are concerned that here is a cause for potential disconnection and we want to know the circumstances in which disconnection would take place.
We are not quite clear whether we are creating with this legislation something that detracts from the existing protection that so many consumers have, and that would render vulnerable those who are not at the present time, because of the nature of the scheme. We think that this issue is of such importance and that we ought to get this right in primary legislation. All noble Lords will of course fully appreciate the problems for a household if disconnection occurs at any stage. It is of sufficient import for the Minister to give us greater assurances than we have in the Bill on the issue of disconnection. I beg to move.
Lord Marland
My Lords, Clause 16 permits the Secretary of State to modify gas and electricity supply licences to make provisions as to the steps that can be taken by energy suppliers when the customer defaults in making Green Deal payments. We intend that the existing procedures employed by energy suppliers in the event of a non-payment by a customer will also be used to collect Green Deal charges. The clause also enables provision to be made in licences regarding disconnection of a customer who has defaulted on the Green Deal charge. However, we expect that disconnection will, as is currently the case, be very rarely used by energy suppliers and only in the last resort when all other means of collecting payments have been exhausted. Furthermore, licences prohibit energy suppliers from disconnecting households in the winter months where they know, or have reason to believe, the customer is, for example, a pensioner or lives with other pensioners or those under 18. In addition, the larger energy suppliers have developed their own safety net procedure, which is a commitment to never knowingly disconnect a vulnerable consumer at any time of the year.
Clause 16 also allows provision to be made in licences enabling suppliers to require a deposit as security for Green Deal payments in specific circumstances. We intend to exercise this power to ensure that, if a customer is required to provide a deposit in respect of energy supply charges, that deposit can also be used as security for Green Deal payments. We do not intend to allow suppliers to request a deposit solely because a customer has a Green Deal finance arrangement. As is currently the case in the domestic market, a security deposit should only be requested from a domestic customer in specific circumstances. For example, when a customer has a poor credit history and a secure method of payment, like fitting a prepayment meter, is not feasible.
All these provisions are necessary to ensure that the Green Deal charge part of the energy bill can be treated equally with the energy component by suppliers when the customer defaults on payment. This will in turn help to secure low interest rates on Green Deal finance, as debt recovery rates on the Green Deal charge should closely match the high historical recovery rates observed for an energy bill. I therefore invite the noble Lord to withdraw his amendment.
Lord Davies of Oldham
My Lords, I am largely satisfied with that reply. Can the Minister clarify one issue? When he talks about the special deposit, is that specific and unique to this legislation or is he building upon a power that exists elsewhere and applies to deposits where there have been problems with failure of sustaining payments? If this is novel, he has not relaxed my anxieties about this power. If he is saying that in order to protect the Green Deal we are merely buttressing the provision which exists in other circumstances, I have no quibble, but I would like reassurance on that.
Lord Marland
I am grateful to the noble Lord for pressing me on this. There is a practice in place in the non-domestic sector and we are building on that here in the Green Deal. I hope that satisfies the noble Lord; if he wants us to specify how that works, I would be happy to do so during the course of proceedings.
Lord Davies of Oldham
I am grateful to the noble Lord; I would like a note from him on this point, because we have real anxieties.
Lord Marland
Is the noble Lord looking for clarification on the domestic or the nondomestic sector?
Lord Davies of Oldham
This is a power that stretches across the board, so I want reassurance in both instances. The noble Lord has been entirely reasonable, as he always is, but we are anxious that this is originating in primary legislation a concept which is merely practice elsewhere thus far. If it is built on precedent in other Acts to which energy companies or other providers respond, of course I am entirely reassured by his response. I just want a note to clarify that point. As the noble Lord has indicated that he will reassure the Committee on that point, I beg leave to withdraw the amendment.
Energy Bill [HL]
Debate between Lord Marland and Lord Davies of Oldham(13 years, 11 months ago)
Grand CommitteeRead Full debate Read Hansard Text
Lord Davies of Oldham
If we won the argument substantially with the Government on the main proposals of the Bill, I have not the slightest doubt that the wisdom of Wales would be such that Welsh Ministers and the Welsh nation would recognise the values in the Bill which would be translated into meaningful structures for them. However, we have not yet consulted Welsh Ministers on the amendment.
Lord Marland
We greatly welcome the attendance of the noble Lord, Lord Davies of Oldham, who always brings great oratory to our debates, which we enjoy.
On Amendment 1B, the comments that I made on the previous group stand. The position in respect of Wales is particularly complicated, given, as the noble Lord, Lord Davies, said, the way in which the devolution settlement operates in this area. I would certainly want to consider further and consult as necessary before agreeing anything in this area. Therefore, I ask the noble Lord to withdraw the amendment.
Lord Davies of Oldham
The Minister’s response has not surprised me, and I beg leave to withdraw the amendment.
Lord Davies of Oldham
My Lords, on behalf of the Opposition I wish to state how much we support the broad thrust of these amendments. I accept entirely the point that the noble Lord, Lord Jenkin, emphasises: that a balance has got to be struck and that it has to be practicable in terms of encouraging people to provide these services. The noble Baroness, Lady Parminter, is absolutely right, however, that should there be a failure in the scheme and a level of malpractice and unfortunate efforts reflected in television programmes or other parts of the media which are able to dramatise failure, the confidence of the public will be lost, and that is bound to affect the speed with which we reach targets and the effectiveness of the work done across the country.
It is not necessary for me to reiterate the points that my noble friend Lord Whitty has made. We are glad to see him present in the Committee and bringing his important expertise to this area with regard to the consuming public. He is right to emphasise that there is no area more significant to any member of the public than when work is done in the home, particularly when, as he says, work is being done not by the people who actually provide the materials and the insulation but by sub-contractors. We all know the difficulties we face with regard to this—we have seen instances from time to time in other aspects—and it is important that we safeguard this position as far as possible.
I know the Minister will indicate that he also recognises the importance of the protection of the consumer, but he will also wish to restrict the amount of direction from the Committee and from the House with regard to the code of practice. I have no doubt that he is going to indicate that at the present time. He will accept that this is a critical area and therefore it behoves us to emphasise the significant points that we are making with regard to the code of practice. The balance which the noble Lord, Lord Jenkin, has emphasised must guarantee the adequate protection of the consumer.
Lord Marland
My Lords, I am very grateful to the noble Baroness, Lady Parminter, for raising this issue. I welcome the noble Lord, Lord Whitty, to this debate. I am glad that he was able to enjoy some winter sun while the rest of us were at the coalface here. As always, his contributions are welcome.
I have said many times that there is no doubt that consumer confidence is at the heart of the Green Deal. We have to get the regulation framework right so that, as the noble Lord, Lord Davies of Oldham, says, people feel confident about receiving people into their homes and that standards are maintained. I am grateful to the noble Lord, Lord Jenkin, for his practical approach to this matter, having welcomed people into his own home to help him with the Green Deal insulation.
I will speak to amendments 3, 4, 5, 6, 7 and 8 as they address customer protection for Green Deal customers. Amendments 4, 6 and 7 seek to ensure consumers are protected by adequate warranties and insurance. We envisage that anyone operating as a Green Deal assessor or installer will need to have appropriate professional indemnity cover but the Bill already provides sufficient powers. As to regulation, a subject raised by my noble friend Baroness Parminter, there are plenty of regulations in place for people selling insurance. I speak with some experience in that field. Clause 3(4)(c) makes provision for this to be a requirement within the code of practice, with which all Green Deal participants will have to comply. Clause 3(8) provides for appropriate sanctions and redress should the assessor or installer not meet the Green Deal standards.
Clause 5(5)(b) also provides for conditions to be set in secondary legislation requiring a guarantee covering improvements to be included in a Green Deal plan. Details regarding the provision of guarantees will become clearer following further consultation with relevant parties as secondary legislation is developed. This will address matters such as the specific nature of the guarantee, the necessary duration of cover and how the cost of providing the guarantee is met. It is therefore not appropriate to put more detailed requirements regarding guarantees and warranties in the Bill. I hope that noble Lords will be reassured that we intend to include the principle of these amendments in regulations and not move their amendments.
Amendments 3 and 5 deal with the detail on how standards will be enforced, specifically through what my official called “mystery shopping”, which is a new one on me—I hope my wife is not taught about mystery shopping—and through access to an Ombudsman. The regulatory framework needs to be developed in more detail but in essence, yes, it is highly likely to include commonplace means of ensuring standards, such as mystery shopping. However, it would not be appropriate to place this level of detail in the Bill. We will bring forward more details of our regulatory framework during the progress of the Bill.
We are committed to providing customers with a simple, seamless Green Deal service and are considering what is the best institutional framework to ensure that it is as simple as possible for a customer to get problems fixed or to seek redress. For example, it is not our intention that customers should have to contact different regulators for each circumstance. We will bring forward more details of our proposed framework during the progress of the Bill. With these reassurances, I hope noble Lords feel able to withdraw their amendments.
Finally, Amendment 8 seeks to broaden protections designed for Green Deal products to cover any non-Green Deal services or goods provided by Green Deal participants at the same time. The amendment raises an important issue: the need to safeguard against home owners being sold measures by Green Deal providers that, unknown to them, do not benefit from the same regulation as the Green Deal itself. We have, however, already discussed this point and I have commented that it should not follow that the whole of the Green Deal framework can be applied appropriately to any other product or service.