Solar Power (Feed-in Tariff)

Debate between Ben Gummer and Tom Greatrex

Wednesday 23rd November 2011 Commons Chamber

[Ben Gummer (Ipswich) (Con)]

rose—

[Tom Greatrex]

I am afraid I am going to make some progress, because I want to give the Minister time to respond.

The Government have endangered an industry in its very infancy and, as my hon. Friend the Member for Ynys Môn made clear, sent to the rest of industry a signal that is doing the UK a lot of damage. It suggests that we cannot rely on what the Government say because they will change their position with scant consultation, no planning and in an arbitrary way. As E.ON said only yesterday,

“this sort of action creates uncertainty for business, and will have a negative impact”.

The Minister has argued that there is a pressing need to reduce costs, that installation costs have fallen and that the subsidy must follow, and, despite the Secretary of State’s best attempt to muddy the waters earlier, no one argues with that—not the solar industry, not consumer organisations and not the Opposition. Indeed, it might take him six months to answer his correspondence, but, as he well knows, trade bodies have argued for months that there should be a sensible, structured reduction in the subsidy—not a jump off the landing, but a walk down the stairs.

The Government’s consultation states that installation costs have reduced by 30%, but it is no good the Minister getting to his feet and citing the cost of panels in isolation from other costs as a way of justifying the 70% figure from Bloomberg, because, if installation costs have reduced by 30%, why is the tariff being cut by 52% in one go? Perhaps, as he has claimed before, it is part of his cunning plan to cut energy bills, but, as my hon. Friend the Member for North West Durham (Pat Glass) has made clear, that attempt will just not work.