Cost of Living Debate

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Cost of Living

Caroline Lucas Excerpts
Tuesday 14th May 2013

(11 years, 7 months ago)

Commons Chamber
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Ed Davey Portrait Mr Davey
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It did not take long for someone to mention Europe. The hon. Gentleman will be shocked to hear that, as a Liberal Democrat, I strongly support Britain’s membership of the EU.

The Government are taking other measures. We are cutting fuel duty, we have capped rail fares, and we are helping the most vulnerable with their energy bills. We are extending free nursery provision and helping working parents with child care costs. The Opposition do not like to talk about the Government’s record on jobs. We have helped to create 1 million private sector jobs since we came to power. We have 1 million apprenticeships. That is a record we should be proud of, and one the Labour party was not capable of delivering.

Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
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The Secretary of State says he is helping the poorest with their energy bills, yet this is the first time for 30 years that there is no taxpayer-funded energy efficiency scheme. The energy company obligation does not have enough money in it. It is also funded by a levy on everybody’s fuel bills, which is regressive—it pushes more people into fuel poverty than it draws out. When will he put in place measures that will protect the poorest?

Ed Davey Portrait Mr Davey
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I could talk about the warm home discount or the green deal, which the hon. Lady forgot to mention. There is a range of measures, which I will describe in detail. The picture is not as she describes.

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Caroline Flint Portrait Caroline Flint
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No. I will make some progress; I have taken a number of interventions.

I have discussed energy and water, but what about those families who get up to do the right thing and head off to work each day? Among them are hard-working commuters forced to travel at peak time. Often, they have moved a long distance away from their workplace to stand a chance of buying their own home. Their reward for doing the right thing, day in and day out, is season ticket price hikes of up to 9.2%. What understanding have the Government shown them? How about squeezing them further by allowing new “super peak” fares? As my hon. Friend the Member for Garston and Halewood (Maria Eagle) has made clear, if we were in government and if this was our Queen’s Speech, we would put passengers first, not siding with the powerful private train operators. Our consumers Bill would cap fares at no more than 1% above inflation in each year of this Parliament and ban train companies from introducing even higher “super peak” fares.

Caroline Lucas Portrait Caroline Lucas
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Would the Queen’s Speech of the right hon. Lady’s party include a Bill to bring the railways back into public ownership? Reports suggest that doing so would save around £1 billion a year in administration costs.

Caroline Flint Portrait Caroline Flint
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What we are clear about is that the rail companies must prove themselves when it comes to their franchises being renewed. On my local line—the east coast line—the operator has done a remarkable job. Unlike some of the other operators, it has paid premium payments back into the Government’s coffers to spend on other things. However, we must ensure that each rail company is fit for purpose, and where a company is not doing the job and we need to take action, we can make a decision on a case-by-case basis at the time.

On housing, as my right hon. Friend the Member for Leeds Central will set out in his speech later today, the Government are not just failing to tackle the housing crisis; their policies are making it worse. House building is at its lowest level since the 1920s, annual housing starts are down and housing completions were lower in both years of this Government than in Labour’s last year in power. As a result, more and more people are locked out of home ownership, stuck on local authority waiting lists or forced to live in the private rented sector. Whereas this Government sit back and do nothing, Labour would act now to change the private rented sector so that it works for all—landlords and tenants.

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David T C Davies Portrait David T. C. Davies
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My hon. Friend makes a good point, because there is a lot that we can do to generate electricity without CO2 and one would think that the Greens would be the first to support it. We had a proposal recently for a Severn barrage that could generate 20% of Britain’s electricity. It was an interesting proposal and one for which I would want to see more costings, but it was totally opposed by the environmentalists. We know that we can generate large amounts of electricity on demand and relatively cheaply from nuclear power without emitting CO2, but where do the environmentalists stand on it? They are totally against it.

In the United States of America, by exploiting shale gas, I understand that they have halved electricity prices and created a wonderful environment for manufacturers—so much so that they are returning to the States. More importantly for the environmentalists, however, that has also reduced American CO2 emissions. One would think that the Greens would be jumping for joy, but instead they are doing everything they can to prevent the Government from encouraging those companies to get in there, drill and exploit the cheap shale gas that we know we have and which could do so much. I question what their beliefs really are.

I hear the environmentalists saying to me, “The most important thing to do is reduce our CO2 emissions”, but whenever anyone puts solutions in front of them that would reduce CO2 emissions and deliver the cheap electricity that we all need, they do not want to know. They are the same people who march against globalisation and capitalism, who totally opposed any form of nuclear deterrent in the 1980s and who a few hundred years ago would have been the Luddites smashing up the spinning wheels. These people live in a fantasy world, believing that if we could just get rid of technology, we could go back to living in wonderful grass huts and things in some Tolkienesque world, like the hobbits before the evil one started attacking them. They are totally opposed to the high standards of living that globalisation and capitalism have delivered in the west and are delivering across the whole world.

It is high time that the Government realised that these people will never support anyone in government. Only recently, Friends of the Earth ran a big campaign against increased energy costs, but one reason energy costs have increased is that the Government have been trying to follow policies recommended by that same organisation—policies of supporting wind farms and solar panels that are bound to increase energy costs. It is ludicrous for the people who have been advocating policies that will increase energy costs to demand that we bring them down.

Caroline Lucas Portrait Caroline Lucas
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I really did not want to intervene, because I did not want to encourage the hon. Gentleman and give him an extra minute in which to continue coming out with this rubbish. I thought that the discussion on Europe was where we found the fruitcakes, but I am finding them this afternoon as well. Is he really suggesting that it is not rising gas prices that are increasing people’s fuel bills right now? It is not renewable energy, but the gas imports that are the problem.

David T C Davies Portrait David T. C. Davies
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It is not rising temperatures that the hon. Lady ought to be concerned about, but rising tempers among the vast majority of the public, who are fed up with paying higher fuel bills and bills for manufactured goods for a problem that simply does not seem to exist.

I say to the Government that we need a proper cost-benefit analysis of our climate change policies before we embark on measures that will drive manufacturing elsewhere in an effort to solve a problem that quite possibly does not exist, and I say to the hon. Member for Brighton, Pavilion (Caroline Lucas) and to the hon. Member for North Antrim (Ian Paisley), who is no longer in his place but who also referred to me as a fruitcake, that it was the fruitcakes who warned against the euro 10 years ago. We were accused of being fruitcakes then, but the fruitcakes were right. Fruitcake is a cheap and reliable source of energy. I am for the fruitcakes. I am proud to be a fruitcake. Long may fruitcakes continue.

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Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
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I should like to concentrate on the final two words of the Gracious Speech, which, unfortunately, give the impression of having been tagged on the end, almost as an afterthought. Those words are “climate change”; I am sure that I will not disappoint the hon. Member for North East Somerset (Jacob Rees-Mogg) in what I am about to say.

The forthcoming legislative programme shows that the Government are failing in their first duty—to protect citizens—precisely by failing to address the causes of the worsening climate crisis. They are ignoring warnings, even from conservative bodies such as the World Bank, that without far more urgent and radical cuts in emissions, global temperatures will rise by an average 4° or more by the end of the century, with devastating impacts as a result.

If the throwaway line at the end of the Gracious Speech really does mean that progress on climate change will genuinely be part of the UK’s G8 presidency, then of course I welcome it, not least following reports that the Government have been blocking the attempts of the French and German Governments to give the issue a high priority.

However, for the Prime Minister to suggest that the Government are successfully taking sufficient action to deal with climate change is simply dishonest. I do not use that word lightly, but if we are to have a chance of avoiding the worst of climate change, politicians of all parties and countries will have to get a lot more honest—honest about the scale of the threat that we face and the scope of the changes that we need to make.

Just last week, for the first time in human history, the concentration of carbon dioxide in the atmosphere passed the milestone level of 400 parts per million. The last time so much greenhouse gas was in the air was several million years ago, when the Arctic was ice-free, savannahs spread across the Sahara desert and the sea level was up to 40 metres higher.

The difference between 399 and 400 parts per million may be small in its impact on the world’s living system, but it is overwhelming in its symbolism of our collective failure to put the future of the natural world and its people above immediate self-interest and to tell the truth and admit that reliance on fossil fuels is not compatible with the urgent action needed on climate change. Given the role that fossil fuel lobbyists play in influencing policy, including being seconded into Departments to draft it in the first place, I am also deeply disappointed that the Bill to introduce a register of lobbyists has been dropped from the Government’s plans.

If coalition Ministers are comfortable in their state of denial about the climate crisis and their cosy relationships with the fossil fuel industry, whose core business models are incompatible with keeping global warming below 2°, let it be on the record that young people in particular certainly are not. We can see that in the reaction to the Education Secretary’s attempts to remove climate change from the curriculum for the under-14s and we saw it last week when the fossil fuel divestment movement came in the shape of huge opposition to a new partnership between Oxford university and Shell—a partnership that would have been about getting yet more fossil fuels out of the ground. We see it, too, in the concern that I am sure is manifest in many hon. Members’ inboxes from people still lobbying for there to be a clear decarbonisation target in the Energy Bill, not just promises that that might be looked at in 2016.

If I am disappointed that we heard only one mention of climate change in the Gracious Speech, I am even more disappointed by the lack of meaningful action on fossil fuels. Ministers must be honest with themselves and the public and admit that, if we are serious about avoiding the worst impacts of climate change, the vast majority of fossil fuel reserves must be left in the ground.

David T C Davies Portrait David T. C. Davies
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Is the hon. Lady going to address the issue of why environmental groups will not support methods of generating electricity that do not produce carbon dioxide emissions, such as nuclear power?

Caroline Lucas Portrait Caroline Lucas
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If the options were either nuclear or more and more fossil fuels, obviously nuclear would be the least worst option. But that is a false choice that we are not facing. There are plenty of technologies out there that need further support—solar, wind, geothermal and many others that are now coming to be equal in terms of price parity. We do not need to go down the nuclear route, which is hugely expensive as well as dangerous. We do not need to go there, so why would we? Why not use the technologies that we know will get our emissions down and keep the lights on much more cheaply, effectively and safely?

I turn to a report published last month by Carbon Tracker. It makes the point that we cannot go on using more and more fossil fuels. As Lord Stern explains in the foreword,

“most fossil fuel reserves are essentially unburnable because of the need to reduce emissions in line with the global agreement”

to keep temperatures below 2° warming. That 2° warming is the first critical number in the Carbon Tracker report. Governments around the world have agreed that we should not exceed that level of warming. There is already an increase of 0.8° in the atmosphere, so we are getting close to 2°, and 0.6° is locked into the atmosphere. If we are not careful, we will get to 2° very fast, and many people believe that 0.5° would be a safer threshold.

The second number is the 2,795 gigatonnes of carbon dioxide that industry figures indicate are locked up in the known, proven coal, oil and gas reserves around the world. Finally, the figure of 565 gigatonnes is the amount of CO2 that research by the Potsdam Institute for Climate Impact Research identifies as remaining in our carbon budget for the period 2011 to 2015. In other words, we can safely burn only one fifth of known fossil fuel reserves and still keep within the global carbon budget, as the International Energy Agency confirmed in its recent report.

Many people will suggest that carbon capture and storage is the way out of this problem. However, even if CCS were deployed in line with an idealised scenario by 2050, that would extend fossil fuel carbon budgets by only about 125 gigatonnes, which is equivalent to only 4% of the total global budget. CCS is not likely to come online in any serious way until at least 2030, by which point the carbon budget may well have been used up.

The implications of all this are clear. First, the decarbonisation target needs to be in place. We need to make sure that we do not have a second dash for gas. Most crucially, Ministers must require extractive companies to include the greenhouse gas emissions potential of fossil fuel reserves as part of an update on company reporting regulations. If they do not, there is a real risk that our financial markets will have a carbon bubble worth an estimated $16 trillion globally. Because we are so over-exposed in the UK given the global role played by London, our financial centre, in raising capital, there is great concern that companies are inflating their worth because of these reserves.