Oral Answers to Questions

Cathy Jamieson Excerpts

Wednesday 6th November 2013 Commons Chamber

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

6. What recent discussions he has had with Ministers of the Scottish Government on household and business energy bills.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

7. What recent discussions he has had with Ministers of the Scottish Government on household and business energy bills.

[The Secretary of State for Scotland (Mr Alistair Carmichael)]

Rising energy bills are obviously a serious concern for consumers and businesses. Over the past weeks, I have discussed the issue with representatives of the major energy companies. We continue to work closely with Scottish Government Ministers on all matters facing the economy in Scotland, including energy prices.

--- Later in debate ---

[Mr Carmichael]

The hon. Gentleman is absolutely right to say that the position announced by Nicola Sturgeon takes money off energy bills but is going to have to be made up for elsewhere. At a time when there is already a £3.4 billion black hole in the SNP figures, one has to think that that is not going to offer much hope for people struggling to pay their energy bills already. We all know the problems associated with his price freeze, and I have no doubt that they will be rehearsed in the House later today. My particular concern relates to the position of smaller energy companies, which are at risk of being forced out. If we reduce the number of companies in the market, we will see prices go up—that cannot be good.

[Cathy Jamieson]

The Scottish Government and UK Government Energy Ministers appear to have joined forces to suggest that Labour’s plans for an energy price freeze would put the lights out. I know the Secretary of State to be a sensible man, so has he talked to the Scottish Government about this and does he agree that the energy price freeze would deliver a £120 saving to my constituents?

[Mr Carmichael]

I am afraid that we have heard dodgy figures from the Labour party before, and I think we have just heard yet another one from the hon. Lady. The truth is that Labour’s price freeze does risk reducing the number of companies in the market. If competition is reduced, the price goes up. That is basic economics and the Labour party should learn it.