Energy Network Charges

Debate between Martin Docherty-Hughes and Ian Blackford

Tuesday 5th July 2016 Westminster Hall

[Ian Blackford]

I thank the hon. Gentleman for his comments, and I accept what he says to a degree: there are differences in gas transmission charges in other parts of the UK that are not fair. What is at the heart of the matter is that there should be fairness and a universal market. Why should people in Scotland pay more for their electricity than people in London, and why should people in London pay higher prices for gas? It is not right. We live in a unitary state; the transmission charges should be the same throughout the country. Focusing specifically on gas, my constituents in the main do not have access to a gas network. We are discriminated against because we are not on the mains.

Let me return to the issue of fuel poverty and heating costs. A recent report by Highlands and Islands Enterprise said that because of heating costs and other factors:

“The budgets that households need to achieve a minimum acceptable living standard in remote rural Scotland are typically 10-40 per cent higher than elsewhere in the UK.”

The highlands and islands of Scotland experience the harshest climatic conditions in the UK and record levels of fuel poverty. There is far greater area-wide dependence on the use of electricity for heating as well as lighting, but the standard unit price charged is 2p per kWh more than many other parts of the UK and 6p more than various economy tariffs that are on offer. Two pence might not sound like much, but it is a price premium of 15%. That is what the UK Government have done to consumers in Scotland. Let us hear no more about the Scottish Government and their responsibilities, because the responsibility for this lies fairly, squarely and solely in the hands of the Minister. She could do something about it this afternoon, if she had the guts.

That is the price set by the UK Government to live in the highlands and islands. On top of that, there is far greater reliance in off-gas areas on domestic heating oil and solid fuel, which pushes up household heating costs further still. As a result, average domestic energy bills in off-gas areas are around £1,000 more per annum than the £1,369 UK average—that is £1,000 more in the highlands and islands.

Figures from Lochalsh and Skye energy advice service in my constituency suggest that average annual heating bills in Skye and Lochalsh are £2,218. It is little wonder that there are so many people in my constituency in fuel poverty. For those whose primary fuel for heating is heating oil, the annual bill is as high as £2,519. To cap it all, customers on prepayment electricity meters—often the least well-off—not only have to pay additional standing charges, but discover that their notional right to change to a cheaper electricity supplier has become impractical.

The Government must accept that having 14 regional markets in the UK, with consumers in the highlands paying that 2p premium, is detrimental to the interests of the people in the highlands and islands. We must have a universal UK market.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

Does my hon. Friend agree that the United Kingdom Government’s policy is strangely based on a horizontal line drawn through London? The Indian Queens power station in Cornwall has been subsidised to the tune of £5.80 per unit of electricity generating capacity, while until its closure this March Scotland’s Longannet power station charged £17.50 per unit of electricity generating capacity. That is a £23.95 difference per unit of electricity capacity—

[Martin Docherty-Hughes]

I was just about to bring my intervention to a very firm conclusion, Mrs Main. Does my hon. Friend agree that the price discrimination is about not just consumers, but Scotland’s utilities as well?

[Ian Blackford]

My hon. Friend makes a valuable point. We know that producers in Scotland have been discriminated against and the comparison between Longannet and Cornwall provides a clear explanation of that.

EU Membership: Economic Benefits

Debate between Martin Docherty-Hughes and Ian Blackford

Wednesday 15th June 2016 Commons Chamber

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

Sometimes in this Chamber we say that we have heard it all, but talk about turkeys voting for an early Christmas! The hon. Member for St Austell and Newquay (Steve Double) wants to give back £600 million that has been given to Cornwall by the EU. What twisted logic. Over the past two days, the world has woken up to the risks of Brexit. The hon. Member for Telford (Lucy Allan) said that the markets bounced by £17 billion today, but she ignored the fact that the FTSE index has fallen by £100 billion over the past week—a net £80 billion has been wiped off the FTSE as investors around the world begin to recognise the threat to our prosperity. Every renowned economist in the land has talked about the risk that we face from Brexit, not just in this country, but the risk of instability in Europe as well.

Not long ago we faced the financial crisis of 2007 to 2008, from which we have barely recovered. We have seen the markets react and sterling fall; the euro has fallen as investors flee towards the door. That is the risk that the Brexiteers are putting in front of the people of the United Kingdom. When we consider the fall in the value of the stock market, we are talking about people whose future pensions are being cut. That is what the Brexiteers are threatening for pensioners around the country, and we must all wake up and ensure that we vote for prosperity, security and sustainability by remaining in the EU.

[Martin Docherty-Hughes]

Does my hon. Friend agree that the argument made outside this House, and critically in English communities, is about policies such as housing? The problem of England’s housing shortage lies fairly and squarely at the feet of the British Government, and with successive Governments who have undermined social housing for the working class since the times of Margaret Thatcher.

[Ian Blackford]

My hon. Friend makes an important point. We hear scare stories about constraints on housing, health and education, but it is the Government’s responsibility to plan for the increase from immigration. We must also consider the opportunity for all our people to live and work throughout Europe, from which we have benefited. In Scotland, 42% of exports go to the European Union and have a value of £11 billion, with 300,000 jobs directly connected to them. We must not play with fire and risk prosperity and jobs in Scotland and the rest of the UK.

There is a complete fallacy about immigration. Mark my words: we will end up back in the single market, and as a consequence we will have to accept free movement of people. The idea that we will fix the so-called problem of immigration with an exit from the EU is simply flawed and a lie. In Scotland, as my right hon. Friend the Member for Gordon (Alex Salmond) has often said, we are not full up. We need migration, and for young people to come with families and deliver prosperity for Scotland. We need families such as the Brains, who live in Dingwall in my constituency and who this Government want to throw out.

Let me turn to Europe’s potential, and how trade and investment have benefited us. Let me mention opportunities for jobs, and workers’ rights that have been protected through Europe. The Minister for Employment is not in her place, but she said that she wants to deal with some of the rights for workers that come from the European Union. We must say to those on the left and those who voted for Labour, the SNP, the Green party and Plaid Cymru: “For goodness’ sake, don’t risk your employment rights with a vote for Brexit next week.”

There is a real danger to this country that if the UK votes for Brexit, the keys to Downing Street will be taken by the likes of the ex-Mayor of London and his cronies on the right of the Tory party. We face the risk of a right-wing Tory Government that will affect people throughout the country. Scotland’s future is in Europe, and if we end up next week with the UK voting out but Scotland voting in, the SNP will stand up for the rights of Scottish people and ensure that this House does not pull us out of Europe against our will.

Pensions Uprating (UK Pensioners Living Overseas)

Debate between Martin Docherty-Hughes and Ian Blackford

Wednesday 11th May 2016 Commons Chamber

[Ian Blackford]

My hon. Friend is absolutely correct. This is not just about someone who comes back to the UK to live. Oddly enough, if such individuals came back to the UK for a holiday, they would collect their full UK state pension when they were here. The whole thing is just daft; we need to normalise it and accept our full responsibilities.

Let me give the example of Rita Young. She is 78 and lives in Peterborough, in the UK. She retired in 2002, aged 67, having enjoyed a long career in market research and as a community volunteer. Rita’s son moved to work in Australia some time ago and now has a family there. Since being widowed, Rita has wanted to join her son and grandchildren, but she has felt unable to do so because of the prospect of a frozen pension.

As Rita gets older, she finds daily life increasingly difficult, especially as she does not have a family around her to rely on. She is deeply saddened that she is not able to be with her family during the later stages of her life. She said:

“I have worked and contributed to my state pension all my life. It doesn’t seem fair that the government can just stop uprating it because I want to be with my family.”

That is the human cost of frozen pensions.

Lastly, there is former college lecturer Anne Puckridge, now 91. She lived and worked in the UK all her working life, paying mandatory national insurance contributions throughout. In 2002, aged 77, she finally retired and decided to move to Canada to be with her daughter and grandchildren, who had moved to Calgary. Fourteen years on, Anne, who served as an intelligence officer in the Women’s Royal Naval Service in the second world war, is struggling to live on a frozen pension of £75.50 a week.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

Does my hon. Friend agree that the fact that the majority of Commonwealth nations are part of this process where pensions are frozen is a slap in the face for those who served not only this country but the Commonwealth in the second world war and in conflicts after that? In this year, when we have so many commemorations, unfreezing pensions would be a worthwhile exercise and would show that we value the worth of these people.

[Ian Blackford]

Absolutely. We owe a debt of gratitude to these people, and we should recognise that. My hon. Friend talks about the Commonwealth, and the arrangements are not reciprocal, because a Canadian pensioner who moved here would get their full pension. We need to make sure that our pensioners living in Canada are treated in the same way.

Anne feels that she will be forced to move back to the United Kingdom because her pension will no longer cover her day-to-day expenses, and she is increasingly reliant on her daughter to get by. She said:

“It’s the small things, and the injustice, that is really getting to me. I value my independence, but I can’t go on living on the breadline and I don’t want to inflict this on my family. As well as ever-increasing poverty, I feel a sense of stress and shame, which is affecting my health.”

For Abhik, Rita, Anne and all those who are not getting what is rightfully theirs, let this House today send a clear and unequivocal message to the Government that we want all our pensioners, regardless of domicile, to receive what is rightfully theirs: a full state pension. Today we can take the first steps towards fixing this injustice and delivering fairness for all our pensioners.