Barry Gardiner
Main Page: Barry Gardiner (Labour - Brent West)Department Debates - View all Barry Gardiner's debates with the Cabinet Office
Cost of Living: Energy and Housing
Barry Gardiner Excerpts(10 years, 6 months ago)
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Barry Gardiner
The Secretary of State talked about the benefits to the consumer from competition in the energy market. He says that the Labour Government did not act properly in this way, but does he recall that of the 14 suppliers that existed when Labour came to power, there was no possibility for any customer to transfer their account from one to the other? What Labour did in creating new electricity trading arrangements and then the British electricity trading and transmission arrangements was to reform the market twice so that competition benefited the consumer.
Mr Davey
The hon. Gentleman is mixing up two things. The reforms to which he referred created the big six. There was a consolidation in the markets as a result of those reforms. What is helping competition is the ability to switch. What we have been doing is making that easier, simpler and faster, and that is the right thing to do. I am proud that we now have—or will shortly have when it is confirmed by Ofgem—a full-scale market investigation. The large energy companies will need to think very carefully about their pricing decisions. If they do not pass on falling wholesale costs, the competition authorities and, more importantly, their competitors will be very interested.
This autumn, I intend to ensure that British people know that if their energy supplier hikes up their prices, they will have a real choice to switch firms and cut their bills. The switching choices will be simpler, easier and quicker than ever before.
In this Session’s legislative programme, my Department will be putting forward a number of measures in the infrastructure Bill. First, I draw the House’s attention to our plans to introduce a community electricity right. Communities will be offered the chance to buy a stake in a new commercial renewable electricity scheme in their area. Community energy can play an increasingly important role in our energy mix, not least as we increase renewable energy in the UK.
When I published Britain’s first ever community energy strategy earlier this year, we showed how greater involvement by communities could significantly support our goals of decarbonising the power sector, increasing energy security, reducing bills and helping the fuel poor. One of the key aims of the strategy is to see greater community involvement and ownership of local renewable energy projects. We hope and believe that that will come about through voluntary agreement. A taskforce of industry and community energy specialists is already working out how a win-win can be achieved, with investors gaining greater public support and additional capital investment, and with communities receiving greater benefits and a greater stake.
Since we are pursuing a voluntary approach, the power in the Bill is a back-stop. The community energy sector was clear that the voluntary approach should be given a chance to succeed, and I agree. By legislating as proposed, we can send the strongest signal that Government and Parliament want to see both community energy and local shared ownership of renewable energy succeed. I hope that the measure will receive support from all parties.
Other key energy measures in the infrastructure Bill involve the implementation of the review that I commissioned into the future of Britain’s North sea assets, conducted so brilliantly by Sir Ian Wood. Given recent events in Crimea and Ukraine, we know more than ever that secure supplies of gas are vital to our economy, but cannot be taken for granted. As we cut our carbon emissions, with our dramatic shift out of coal over the next decade, we know that the replacement electricity must involve low-carbon electricity from renewables and nuclear and lower carbon electricity from gas. Our energy security and climate change objectives require gas, so we must conclude that our North sea oil and gas assets are at least as important now as they have always been.
In spite of rising and indeed record levels of investment in the North sea under the coalition, figures show declining production and exploration, which should worry us all. Gas imports have been rising for some time already and if we do not act to improve conditions in the North sea, our dependency on imported gas could reach worrying levels. As we implement the Wood recommendations, specifically to enable a new arm’s length regulator, I hope that we will get support from all parts of the House.
In order to ensure that the UK can benefit even more from its home-grown energy, we will introduce a final set of measures, subject to consultation, so that Britain can be more secure and reduce our reliance on imports and on coal. The measures are to support the development of the shale gas and geothermal industries. Although both industries are still in their infancy, they are both concerned that the existing legal situation could delay or even stop their ability to drill horizontally deep underground to recover gas or heat. Ironically, given the urgency of climate change and unlike the situation for dirty coal—a landowner or property owner high above a coal seam cannot object and delay work—for cleaner gas and clean heat, landowners and property owners can object.
To assist the shale gas and geothermal industries, we are consulting on how to address those access issues. We published our consultation paper on 23 May, and the consultation will run for the full 12 weeks. Members of the House may respond to that consultation, as may all interested parties. We want feedback and input, because that will help us to refine our proposals, to develop alternative ones or even to convince us that the existing system is fit for purpose. We will listen during the consultation and, subject to its outcome, we will introduce proposals when parliamentary time allows.
Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)
I thank the hon. Member for North Dorset (Mr Walter)—or rather, I do not thank him because I am trying to wean myself off the subject of Europe but I cannot, given his speech. It is 39 years to the day since the United Kingdom, by a majority of two to one, decided to remain in what was then the European Economic Community. It is interesting to remind ourselves that in March of that year Harold Wilson declared:
“I believe that our renegotiation objectives have been substantially though not completely achieved”
and that the Government would recommend a vote in favour of continued membership. As I was reading that, I wondered whether there is not a Prime Minister somewhere who might be tempted to use a similar phrase not too far ahead in the future. As the hon. Gentleman was speaking, I checked the turnout in the European elections. For different reasons we may have started on the same side on the subject of Europe and are no longer on it, but does he not share my extraordinary distress at the turnout? This year it was 19.5% in the Czech Republic, 28.9% in Hungary, 13% in Slovakia, 25% in Croatia, 22% in Poland, 20% in Slovenia and 36% in the UK. The turnout in the referendum 39 years ago was 67%. That shows us a disengagement and democratic illegitimacy that national Parliaments will not address. That is not the subject of my speech, however. What I really want to talk about was not in the Queen’s Speech: cities.
I care deeply about cities and I want, in this context, to talk about the core cities, particularly Birmingham. My hon. Friend the Member for Sheffield South East (Mr Betts), the Chair of the Select Committee on Communities and Local Government, said in his final sentence that the real problem we have not addressed is devolution in England outside London. At the moment, we might be slightly more concerned about devolution in Scotland and the vote in September. I am concerned about that, but the truly unfinished business, which none of the party political manifestos, as I see them emerging, have so far addressed and neither did the Queen’s Speech, is the question of what we do outside London.
One of my great regrets is that towards 1999 and 2000, there was a huge tension in the Labour party over whether to go for regional government or city regions. In the end, we went for neither. That, combined with the abolition of regional development agencies, has meant that we now have a situation where the local enterprise partnerships that have replaced them might not have the capacity to deal with that issue. They may be too small in their configuration to be truly strategic.
With the exception of the Secretary of State for Communities and Local Government, who I would not dream of offending as he is in the Chamber, there are only a few people who understand the problem and are putting forward plans. I would like to mention Lord Heseltine and Lord Adonis. On the Government Benches, the Minister of State, Cabinet Office, the right hon. Member for Tunbridge Wells (Greg Clark), who has responsibility for cities, understands what needs to be done, but I am not sure whether he has been given the means to do what is required.
There are two things I need to say in this context. First, I am German by birth. Actually, I am Bavarian by birth. Bavaria has a population of 12.5 million. It is in itself a federal structure made up of seven units. Its capital, Munich, has been a socialist city since time immemorial and it is surrounded by a conservative state. It is so conservative that when the Christian Democrats win it is not a question of whether they win but by how much they win. The important point is that I understand subsidiarity, federal structures and the importance of cities in generating wealth. Cities are the engines of economic growth—they do not reflect the national economy.
Secondly, I am a Birmingham, Edgbaston MP and my predecessor was a man called Neville Chamberlain, who was the son of a man called Joe Chamberlain who died 100 years ago. Joe Chamberlain was a Unitarian who did not approve of statues, so Birmingham does not have a statue of him. However, every day I go up the stairs to my office and there in front of me in the Committee corridor is Joe Chamberlain with his orchid and a monocle. He turned what was then one of the country’s worst governed cities into one of the best in three years. He did that after being elected as ceremonial mayor and making himself executive mayor. He municipalised water, which, as a public good, was not allowed to make a profit. He municipalised gas, which was allowed to make profits that were used to subsidise the business rates. He had a huge housing programme and he went for free education across the city. He failed in his attempt to make education completely secular and non denominational; something which, more than 100 years later, Birmingham may regret.
The key thing was that he was a local leader who gave up the town hall, with regret, to go to Westminster. He was said to have made the weather. How many civic leaders do we have these days who we can say are making the weather? We can say it of Ken Livingstone or Boris Johnson, but the names of Richard Leese and Albert Ball ought to be rolling off our tongues in the way that the names of Cabinet Ministers do. But they do not.
With the greatest of respect to the DCLG teams on either side of the House, DCLG questions is hardly the big ticket seller. Anyone who seriously suffers from insomnia could not be better advised than to take a lesson on how central Government is funded. There is nothing designed to send someone to sleep faster than being given central Government funding formulae. Yet funding is where the money lies. Remember the line about Watergate? “Follow the money.” When we follow the money, we will also find where the power is. This is why the money that comes from central Government cannot be at the grace and favour of Westminster or Whitehall, which decides by pitting city against city or rural against urban. Our big cities need independent funding streams.
The council tax model is beyond repair. Previous speakers talked about how great it is that council tax is not increasing. In our big cities we have a history of council tax being artificially held low. Governments of both parties have talked about re-banding, but then lost their nerve. We are not re-banding, unless the Secretary of State tells us that we are. On top of that, we have a cap which says that beyond a certain level we are going to need—[Interruption.] Yes, it is a cap. It requires a referendum. I recognise that it is a cap in everything but name.
Ms Stuart
If the cap fits, I wear it.
The funding streams for our cities are not working, which is a problem. I want to spell out some stark facts. I can pick any set of statistics and paint whatever picture of Birmingham I choose. It could be the most enterprising, the fastest growing and the most amazing city that has everything: theatre, football, ballet, orchestras. You name it, we have it. On the other hand, we have just about everything that is dark. We have the fastest growing population under the age of 25; 40% are under 25 and 30% are under 15. On family patterns and in terms of family sizes, we are Bradford. In terms of skills gaps, we are Leicester. In 18 months’ time, on the current trajectory, the city could go bankrupt. This is not just scary talk; it is the truth. What does that mean? In order to give our cities proper power and to make them work properly, we have to look at different ways of dealing with them.
We are told that Deutsche Bank is coming to Birmingham and creating 1,000 new jobs, but I have talked to Network Rail in the context of Birmingham New Street and asked what has surprised those most involved in the five years of the New Street regeneration. I was told that it was the increase in regional commuting. We have a city with ten constituencies, of which two are consistently in the top three of youth unemployment and general unemployment: Hodge Hill and Ladywood. We then create 1,000 jobs for Deutsche Bank in or on the edge of Ladywood, and all that happens is that we bring in employment from Warwickshire, Solihull and Worcestershire. The problems building up in the city are not being addressed.
There are some things that Birmingham can do by itself. I am working on something called the Birmingham baccalaureate, which is trying to combine the English baccalaureate employability skills with what local employers want to make sure that when we create jobs, we also create the kind of jobs that they will respond to. For our cities to grow, we must make sure that the wealth that is generated in the cities stays in the cities.
That takes me to the one thing that grieves me the most in the last five years: the wretched imposition of police commissioners, whom I would abolish tomorrow without shedding a single tear. We made having directly elected mayors the subject of a referendum, which was a big mistake. If we want to devolve power in England outside London, we need strategic directly elected mayors. We need them to work on boundaries that are beyond the local authority boundaries. If we look at the Birmingham city boundaries and at the NHS commissioning boundaries, the latter go by patient flows around the hospitals, which are not respecters of local authority boundaries.
We may think cities are about buildings. They are not. They are about flows of people. It is our job to provide the structure for the flows of people, and to make cities thrive and be economically successful. What I really want—it was not in the Queen’s Speech—is strategic elected regional mayors. I want direct flows of finance to go to the city units. I do not care whether it is a property tax, a percentage of VAT or whatever; they need a consistent and reliable stream. That is a challenge for all of us as politicians.
My last point is that we need to realise that doing the same everywhere is not only not fair, it is inappropriate. Divergence and differentiation—horses for courses in different places—is something that is politically difficult to accept but, in terms of devolving power properly, is the right thing to do.
Barry Gardiner (Brent North) (Lab)
I was fascinated yesterday when the Leader of the Opposition, my right hon. Friend the Member for Doncaster North (Edward Miliband), began his remarks in response to the Gracious Speech. He sought to widen the debate from the usual Punch and Judy knockabout that goes on in this Chamber and the party political points. What was remarkable to me was the way in which, on the Government Benches, that was met initially with shock. That is the best way to describe it. There was silence and clear attention. After a few minutes my right hon. Friend’s speech achieved a response of baying, and things went downhill from there, but what he was trying to get across was fundamentally important.
Many of the speeches today have picked up on that theme and have handled sensitively the issues facing us as politicians in this Chamber about how people outside view politics, mistrust politicians and are concerned about how they feel that we in the Chamber have the capacity to influence events that are important in their lives.
I want to try to continue that theme today. I begin by isolating three elements. It is no longer the case, thank goodness, that the Gracious Speech is delivered in Norman French, as it used to be, but it struck me that there are three principles that France can still bring to our debates to elevate them. Those are liberté, égalité, fraternité. On the first—here I want to sound a note of welcome—Members in all parts of the House are delighted to see the modern slavery Bill being brought forward. I am sure it will be well supported by Members across the Chamber. That speaks to liberty, which is fundamental in any democracy. It is absolutely right that the Government are seeking to introduce that Bill and I hope that Opposition Members will give it fair wind before the next election—I am sure we will.
The next principle is égalité —equality. Here there are things that concern me and my constituents in Brent, who experience the second highest rate of low pay in London. Newham is the borough with the highest rate of low pay at 34%. In Brent 30% of people in employment earn below the living wage. That is of real concern to me because it means that 30% of my constituents look at the rest of society from a position of disadvantage and see the widening of the gap between where they are and where they perceive other people can legitimately aspire to reach. That is not good for society. Of course, it is not good for my constituents either. It means that they are struggling to put food on the table and to do right by their children and their wider family.
People are facing additional pressures because the local government settlement and the settlement put in place for clinical commissioning groups appear to be differentially disadvantaging communities like my own that are already more disadvantaged. Let us look at the funding for CCGs across the country. In Brent in north-west London, we have the highest incidence of tuberculosis and of diabetes in the United Kingdom, and yet £54.98 million is being taken from our CCG, NHS Brent, in this settlement. I looked down the list of all the other local CCGs to try to find a comparable figure, and thought I had—it was for NHS Coastal West Sussex CCG. The figure was £56.51 million, but when I looked again I noticed that there was no minus sign. I do not know what the particular health problems of people in coastal West Sussex are, but I am absolutely clear that their receiving a £56 million increase at a time when my constituents, in some of the most deprived wards in the capital, who have the highest levels of key diseases not just in the capital but in the country, are suffering a £54.98 million reduction does not speak to the principle of equality. I charge the Queen’s Speech with failing my constituents on that count.
I mentioned the local government settlement. The budget in my local authority is about £330 million—or was, I should say, because £104 million is being taken out of it. That is a cut of about 30%. My constituents, who rank second highest in London for lowest pay, are not just suffering in their wage packets. They are suffering because the services they would usually hope could pick up their families when they disintegrate, provide additional care for their elderly parents, and provide additional support from social services will not be there because local government is no longer able to provide them.
In the London borough of Brent we have just had the local elections. I am delighted to say that of the 63 council seats in Brent, of which my party used to have 41, we now have 56—a fantastic result. How quickly that will become bitter when those 56 enthusiastic, dynamic, determined people find that they are having to implement a 30% cut in services to the people they have aspired to represent and protect. That is what has happened to equality in this country. It is not just about low pay, although that is absolutely cancerous, or zero-hours contracts; it is also about the wider support that one used to be able to look to and expect to receive from one’s community but is no longer there.
Let us turn to fraternity. Another key missing ingredient from the Queen’s Speech was the issue of immigration. As my hon. Friend the Chairman of the Communities and Local Government Committee has said, there are key issues related to immigration that are about not race and ethnicity, but fairness. Nowhere is that more clear than in housing.
A mother in my borough who has been on the housing waiting list for 19 years came to me and said, “Mr Gardiner, when I first went on the housing list, I was told that, as a single young woman without any children I was not considered to be vulnerable and therefore I was not a priority. My daughter is now 18 and last month I was told that because she is now 18, I have no children and am not a priority. What’s going on?”
The point is that many boroughs allocate housing simply in accordance with need. Of course, medical and other needs such as overcrowding are important, but we do not understand that there are forms of entitlement other than need. The fact that someone who has been waiting for 19 years in their community—paying their dues, working hard, paying tax and being a good citizen—still does not have an entitlement to the security of a home is deeply corrosive of the principle of fraternity. It undermines social solidarity. That is the unfairness. It is similar to the unfairness in wages that immigration can bring in, because people come in and undercut wages. The principle is not one of race or ethnicity at all, but one whereby people say, “You are being unfair,” because the Government have a responsibility to ensure that people are being paid the minimum wage.
This Government have started doing that, but they need to do more, because the three principles of liberty, equality and fraternity must underpin our democracy. In this Queen’s Speech, they do not.