Solar Power (Feed-in Tariff)

Albert Owen Excerpts

Wednesday 23rd November 2011 Commons Chamber

[Albert Owen (Ynys Môn) (Lab)]

It is a great pleasure once again to follow the Secretary of State, but I am afraid I cannot resist referring to his last remark on policy Catherine-wheels. He is the man who said that the nuclear industry was flawed and should not continue, but today he is Mr Nuclear. He said that solar panel feed-in tariffs were not ambitious enough, but now he says that they are flawed and too ambitious. He is the undisputed champion of flip-flops. Today he has told us that he is looking after the interests of the consumer, but he is doing exactly the opposite.

Since entering the House, I have been a consistent supporter of nuclear energy, renewable energy and energy efficiency as a package. I see no contradiction in that whatsoever. It will help consumers in the short term and the environment in the long term, which is what proper policy is about.

We do not have much time today, but, because of the country’s anger at the policy changes, we are here today, arguing the case for consumers. I shall read out a few examples, because they show how out of touch the Secretary of State and Government are on this important issue.

It was not just the industry, but ordinary individuals who took this Government on trust, and they have broken it. The Liberal Democrats know that, because they argued that the scheme was not ambitious enough. Indeed, the right hon. Member for Bermondsey and Old Southwark (Simon Hughes), who is in the Chamber, said that the then Government were not going far enough.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

rose—

[Albert Owen]

I am happy to take an intervention from the right hon. Gentleman. I wanted to wake him up and stir him so that I could get an extra minute and listen to his remarks. Is he prepared to intervene?

[Chris Huhne]

Will the hon. Gentleman take an intervention from me?

[Albert Owen]

I shall take an intervention first from the right hon. Gentleman’s previous boss.

[Simon Hughes]

I did press for a scheme when we were in opposition, and a scheme was introduced, but it was not adequate. I support the fact that it has to be reviewed because of the take-up, and the answer lies in the Secretary of State’s answer, which I heard very clearly. It is to look at a new community tariff, to be announced as soon as possible, which I heard him say will be in January.

[Albert Owen]

But the right hon. Gentleman said in opposition that the rates were not ambitious enough. Those were very his words, and he has now done a flip-flop on that. Yes, we need a proper review; of course we do, because the industry is calling for it and everybody is calling for it, but it should be done on a sliding scale, not at the rate that the Secretary of State describes.

[Chris Huhne]

Will the hon. Gentleman please admit to the House that there has been a colossal fall in the cost of panels and, as a result, an enormous increase in the real rate of return? That is what has changed in the real world. Since my right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) made those points, the world has changed. Government Members have responded to that; Opposition Members do not appear to have done so.

[Albert Owen]

The Secretary of State has not read the Opposition’s motion or listened to what the shadow Secretary of State said about the need for a sliding scale.

I shall read out three examples, because they speak not just for my constituents, but for constituents throughout the country. A Mr Jones wrote to me this month, saying:

“I am writing to you as a retired NHS employee, who recently decided to invest my pension lump sum monies into clean energy and have just installed PV solar panel system on my house. My decision was based on the Government’s existing tariffs and estimated returns on the substantial investment and proceeded with the installation in the last week of October. I was unaware of the Government’s consultation document before proceeding. I only recently heard about the changes on a news bulletin”.

He believes that the process is deceitful, because it cuts off before the consultation period is done. He says that he understands the rationale for changes, as do all of us, but the proposed changes will be made without any meaningful public consultation. Indeed, the Secretary of State has suggested that individual write in, and that the consultation changes will be made on a case-by-case basis. What a sham—for the Government of the day to say, “We will look at individual cases and maybe give a bit of leeway.” People want a proper strategy and consistency.

Another constituent, a young person who has been self-employed for 10 years—the kind of person whom the Government say they want to help—came to see me. He has moved from various installation projects, including central heating systems, to the PV system, and he has employed extra people. He says:

“I am writing regarding the recent feed in tariff problems as I am sure you are aware of. I have had to lay off two installers last week for two weeks so far”,

and he cannot see himself bringing them back. His office assistant is, he says,

“down to two days a week from five days”,

and he cannot honestly see his company trading: it will cease trading because of the proposals. That is the kind of reaction we are getting from communities.

A third person who wrote to me put across her point straightforwardly, as Anglesey people do, saying:

“I was horrified to see the high handed fashion in which the Government has eliminated the…Micro Generation Industry. By…slashing the value of the electricity feed-in tariff, they are effectively ending the provision of free solar panels to the electorate and endangering the jobs of tens of thousands of people. Not since the Thatcher Government of the 1980’s have those in power set out to put an end to a sector of the economy overnight.”

That was not a Labour supporter who was known to me, but an ordinary constituent who took the trouble to write in. That is the situation that people are finding themselves in, and it is the scale of the downgrading of the tariffs that is concerning everybody.

I say to the Minister of State, the hon. Member for Bexhill and Battle (Gregory Barker), who is going to wind up the debate, that he should listen to the debate—I do not think he is listening at the moment. He should not just give the speech that has been written for him by civil servants, but he should listen to the debate and listen to what the people of this country are saying. They understand the need for deficit reduction, but they also have trust in Governments, and when they enter a scheme, they want to see it through. They want to help the country’s economy and create jobs, and jobs have indeed been created. They want to save the economy, but they also want to save the environment. That was why the scheme was set up. Yes, it needs to be reviewed, but the Government are destroying it, and I ask them to think again.