Alan Whitehead
Main Page: Alan Whitehead (Labour - Southampton, Test)(13 years, 11 months ago)
Commons ChamberI am a great believer in the virtues of the market and of the price mechanism, and I am sure that my hon. Friend is, too. It is fairly well established that if the price of something goes up, the supply of it tends to follow. If we provide a carbon price floor, as we intend to do, we anticipate that that will send precisely the sort of price signals to suppliers that will bring forward the capacity that we need to provide us with energy security in a low-carbon way.
When the right hon. Gentleman has discussed the matter of a carbon floor with the Treasury, has he raised the possible intervention contingency that might be necessary for a UK carbon floor? If he has, have they directed him to talk to the EU about common border-based carbon taxes?
The discussion with the Treasury will get under way later, after the comprehensive spending review. The hon. Gentleman will understand that the Treasury is otherwise engaged in a very serious mopping up of the legacy problems that we have already discussed. Later in the year, as part of the public consultation, we will go through all those issues, including the issues that impact on our EU partners.
In view of reports that the ambition of the green deal is shrinking to the extent of residual interventions in loft and wall insulation, does the Secretary of State agree that now would be a good time to review the idea that microgeneration should be outside the green deal? In view of the programmes that have already introduced stuff without cost to the taxpayer, will he now think again about putting those arrangements inside the green deal?
I am grateful to the hon. Gentleman for his question, especially given his impressive track record in this area. I can assure him that the premise of his question is incorrect. There is no scaling back of ambition on the green deal. Far from it, we are proceeding with what I believe will be a model of how to have comprehensive retrofitting of energy efficiency measures. On whether microgeneration should be incorporated in the green deal, I anticipate that providers of the green deal will want to provide microgeneration as well, precisely because of the substantial price incentives that we have introduced in order to make that happen. I do not think that it is necessary to incorporate microgeneration into the green deal, because it is an insulation package, but I have no doubt that householders—