(5 years, 2 months ago)
Commons ChamberCrisis and the all-party group on ending homelessness recently appealed to Ministers to prioritise for housing survivors of domestic abuse, but is not it the truth that it is difficult to prioritise anyone because of the social housing crisis—a crisis acknowledged just a few minutes ago by the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Rossendale and Darwen (Jake Berry)? Housing associations and local councils in particular have insufficient stock and limited capacity to build new ones to meet demand, and there are more than 1 million households on council waiting lists. Last year, just 6,500 social rented homes were built. That means that it will take 172 years for everyone on the current waiting lists to get a social rented home. Will the Minister please spell out exactly how she plans to sort out this crisis and offer our people some hope that they can also have a home of their own?
Again, I am absolutely delighted that the hon. Gentleman has asked that question, because we have actually put aside £9 billion for our affordable homes programme to deliver a quarter of a million affordable homes by 2022, including 12,500 for social rent. Let me repeat: we have given councils the ability to borrow against their housing revenue cap. We have taken the cap off. Please will councils get on with it? [Interruption.] As the hon. Gentleman is chuntering from the Front Bench, may I tell him that wonderful councils such as the ever present Conservative South Derbyshire District Council are doing exactly that?
(13 years, 4 months ago)
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I do not think that the process will end any uncertainty. We will simply be saying to people, “Look, just walk away, because it won’t be financially viable for you to develop the sorts of project that you have in mind.” The Government policy is wrong. We need to ensure that the incentives are in place to develop these projects.
In Herefordshire, work is under way on a 300 kW installation on farm buildings that will not be viable when the new tariffs come into effect. Similarly, the UK’s first ever community-owned solar power station is due to be launched in Lewes in April and is expected to save more than 40 tonnes of carbon dioxide annually. Without the feed-in tariff, that development, to be built on the roof of a warehouse, will not go ahead either, as it is 100 kW in size.
I thank the hon. Gentleman for securing the debate. Can he expand a little on the thought that there ought to be a difference between companies that are looking to take on this fantastic new way of producing energy for the country and would use it to run their factories, and venture capitalists who might want to jump in on it? Can he not understand that, ultimately, if there is no more money, there is no more money, but perhaps the Government might consider changing the arrangements for companies that are producing energy, so that they will be green companies for the future and will look after their local environment?
With respect to the hon. Lady, that is not what this is about. It is about the feed-in tariff. I am all for companies developing their own solar power stations on the roofs of their factories or wherever to run their own businesses. They may well have a little surplus that they can feed into the grid. However, many organisations can develop solar power projects without relying on the feed-in tariff at all.
I could go on, but sadly I do not have the time to list all the projects and examples that I have been sent information on during the last few days. The Renewable Energy Association estimated, before the fast-track review of the FIT was announced, that, nationally, 17,000 new solar jobs would be created by the end of 2011. Those jobs are now unlikely to materialise as medium and large-scale projects are axed. At a time when the number of people unemployed stands at 2.5 million, we should be doing everything that we can to encourage the creation of green jobs. The Government’s review could end up costing jobs, rather than creating them.
Just as important is the renewables target, which aims to see 15% of UK energy coming from renewable technologies by 2020 under the EU renewable energy directive. We are third from bottom of the list of European countries in meeting our renewable energy targets, and the Government’s decision will not help. Many people in the renewables industry are very angry about that decision, and confidence in the Government has been shattered thanks to the mismanagement of the fast-tracked review.
Jeremy Leggett, executive chairman at Solarcentury, has said:
“Since the CSR, I’ve had numerous conversations with Ministers during which I have been assured that any urgent review of feed-in tariffs would be carried out after publication of a proper trigger and would in any case exclude built-environment PV. The Government has not only betrayed those assurances but today proposed feed-in tariff rates that would ensure the UK PV industry stalls. No renewables company or investor can easily be able to trust this Government again after the u-turn by Ministers who were so quick in opposition to call for a more ambitious feed-in tariff and so ready with empty promises in the early months of Government.”
That is quite a condemnation.
I have also been in touch with Eco Age, a company that has been involved in project managing the installation of a number of large 1 MW to 5 MW solar PV systems, which I am told have now all been frozen and are unlikely ever to happen thanks to the FIT review. I am told that just one of the projects—a 1.5 MW solar PV system on the roof of a 550,000 square feet UK super-warehouse—is likely to go ahead. That will be one of the largest roof-based solar installations in the country. Surely it is the type of project that we should be encouraging, but sadly, thanks to the Government’s decision, similar projects have now been scrapped. Eco Age makes the important point that large companies that were engaging with the idea of solar PV schemes have, as a consequence, also embraced other more sustainable practices across their businesses in relation to waste, water transport and procurement. That is a welcome development.
Various representatives from the industry have told me that DECC’s concerns about large-scale solar farms taking up too much of the FIT are unfounded. Large-scale roof-mounted systems are difficult to develop because most commercial property is leased to the tenant, who is not in a position to grant a lease for the roof to a PV company. Ground-mounted schemes, such as those on farms, are far easier because farmers really understand that we need 25 to 40-year lease arrangements to make developments worth while. Although interest in such schemes has been significant, the industry does not expect many actually to go ahead, because it is anticipated that many will struggle to get planning permission.