Energy Price Caps

Debate between Lord Prior of Brampton and Lord Stoneham of Droxford

Monday 3rd July 2017 Lords Chamber

[Lord Prior of Brampton]

My Lords, in my right honourable friend the Secretary of State for BEIS’s letter to Dermot Nolan, the chief executive of Ofgem, he says:

“You will have seen that the Conservative manifesto proposed to ‘extend the price protection currently in place for some vulnerable customers to more customers on the poorest value tariffs’”.


That is what my right honourable friend has asked Ofgem to do. It will now go through a period of consultation and decide how best to do that.

[Lord Stoneham of Droxford (LD)]

My Lords, on this side of the House we appreciate and welcome the measures that are obviously designed to help poorer customers. I will ask the Minister two questions. How much of this £1.4 billion does he assume is going to be redistributed back to customers as a result of these measures, and what is the shortfall on that? Secondly, his party, despite its election manifesto, has never seen a way of resolving these problems by price cuts. What is he going to do to improve competition? That is the way to control prices in this sector, and clearly they are not going to be controlled when you have a six-body cartel that is operating against customers’ interests.

[Lord Prior of Brampton]

My Lords, the Secretary of State has made it clear that, in judging whether Ofgem’s proposals go far enough, he will be looking at that figure of £1.4 billion—which, as the noble Lord knows, was identified in the CMA report of 2014. Clearly that is the figure that the Secretary of State has in mind. The noble Lord is absolutely right, though, that for the long term getting real competition into the market will drive prices down. Some 20% of the market is now supplied by companies other than the big six. I think that they now number 50, so there are signs of growing competition. The CMA is quite categoric in its diagnosis that customers are not yet feeling sufficiently well informed or enabled to make the switch. I went on to uSwitch today to have a look and I can understand that—one’s brain sort of hazes over a bit when you go into this sort of field. So I think it will take some time before competition really works in this market—which is why the Secretary of State decided to ask Ofgem to review the situation today.

Brexit: Single Market and Workers’ Rights

Debate between Lord Prior of Brampton and Lord Stoneham of Droxford

Monday 16th January 2017 Lords Chamber

[Lord Prior of Brampton]

My Lords, I think the Prime Minister, in a speech tomorrow, will be setting out the strategic objectives of our negotiations and what we are trying to get out of the negotiations that will take place over the next two years. It would be foolish of me to speculate in any more detail today about what those objectives are.

[Lord Stoneham of Droxford (LD)]

Given the reality of the global economy, surely the only effective way of protecting employees’ rights is through international agreements? To avoid international agreements is merely to undermine the sovereignty of this country.

[Lord Prior of Brampton]

My Lords, there are many other aspects apart from international agreements. When one looks at the performance of the UK economy, what absolutely stands out above all else is that in many industries our productivity levels are too low. Increasing productivity in this country, partly through better training and skills but also through more investment in the research base of this country, is the best way to increase our trade overseas.

Green Investment Bank

Debate between Lord Prior of Brampton and Lord Stoneham of Droxford

Thursday 12th January 2017 Lords Chamber

[Lord Prior of Brampton]

My Lords, no business would say that it will be intact for ever. Interestingly, the Green Investment Bank manages an investment fund of £800 million. It is the biggest investment fund in the renewable sector in the UK. It has a whole series of investments in that fund, and of course some will be sold in future.

[Lord Stoneham of Droxford (LD)]

My Lords, the suggestion in the Sunday papers was that the integrity of the bank was under threat. It is not sufficient just to support the objectives of the bank; this is about its integrity. Can we have an assurance from the Government that they are seeking to protect that integrity as well as the objectives?

[Lord Prior of Brampton]

I can give an absolute assurance that, in assessing which company or organisation might acquire the Green Investment Bank, the integrity and commitment of that company to the green purposes of the bank is crucial.

Opticians Act 1989

Debate between Lord Prior of Brampton and Lord Stoneham of Droxford

Monday 8th February 2016 Lords Chamber

[Lord Stoneham of Droxford]

I reiterate to the Minister why it is so important to read the report about reading glasses. Exactly the same arguments were used then—that they would undermine eye tests—yet exactly the opposite happened.

[Lord Prior of Brampton]

I have made a promise, and that will be among my other reading material. I do not know how long the review is; we shall see.

However, reading glasses are for a very specific, limited purpose, so might not lead people to think that a sight test is no longer necessary. Self-adjustable glasses, on the other hand, are for wider use, and could potentially lead people to think that their vision needs have been met. They may make do with those glasses for longer, and not consider the need for a sight test. In that way, the case might be slightly different from that of reading glasses.

I accept that there is reasonable concern about the potential impact on the take-up of sight tests if these glasses were to be made available over the counter. It is important to be clear that a sight test is not only about checking whether or not you need glasses. As I said earlier, it goes much further than that. A sight test can identify at an early stage diseases such as macular degeneration, glaucoma, diabetic retinopathy and cataracts. Good vision is also particularly important for safety on our roads, both for drivers and pedestrians. So I appreciate the concern raised by the GOC in respect of the safety of drivers using these self-adjustable glasses.

I draw a distinction between the current proposal—which, as I understand it, is for a range of magnification beyond that of ready readers—and magnification restricted to that of ready readers. I am not sure whether or not that makes sense. It makes sense if you read it slowly.

Even if the concerns I have outlined were overcome, it would be very difficult to justify a greater range for the adjustable, and arguably more risky, product than is allowed for ready readers. There is no appetite that I am aware of to extend the exemption applied to ready readers to stronger prescriptions, and similar objections would apply in that they would cease to be simply aids for the limited activity of reading.

However, I note that while the GOC standards committee did not endorse the idea of sale of adjustable glasses restricted to the ready readers range, it commented, as the noble Lord mentioned, that this might be acceptable. I do not know whether those proposing change have had further discussions with the GOC on this point but, if not, it would be sensible to do so before further consideration by the Government. I am not sure whether the noble Lord has had further discussions with the GOC. He might like to say so at the end. This does not mean that the GOC is convinced that this would be a sensible change or that the Government are minded to consult in the near future. I merely highlight that the GOC’s response was nuanced.

Changes to primary legislation are for government, although noble Lords will obviously appreciate that changes will only be made in the light of professional advice, and one of the sources of that advice will be the GOC. The GOC’s report was nuanced and is probably worth following up. I have an instinctive gut feeling of sympathy for the arguments made by the noble Lord but there are genuine objections from the GOC.