(11 years, 4 months ago)
Commons ChamberSurprisingly enough, there are no private conversations in the Chamber; Members are supposed to have them outside. That is not a point of order for me, in the sense that I saw no indication—and have heard no indication—of the Government’s attitude to the amendments, unless the Justice Secretary wants to correct me, although he is not obliged to.
Order. I remind the House that the debate must end at 7 o’clock. Quite a few Members wish to participate in the debate, so I ask each Member to make their contribution briefly so that we can facilitate as many contributions as possible.
I will certainly obey your request, Madam Deputy Speaker, and skate through what I have to say. I should declare an interest at the very beginning, because I run a campaign outside the House. It is a not-for-profit company and I do not take a salary or any expenses, but I declare an interest, in the spirit of the time and in the hope that others pushing amendments may do exactly the same later.
I was pleased to hear the Minister address many of the concerns that I have raised in my amendments. I did not bang on about the thing that most would have expected me to bang on about in my amendments. I believe that the Minister agreed with one of them, and just wanted to check; I am slightly concerned that that might be the case. Alas, it was not the amendment that I really wanted him to agree with—amendment 169, which concerns the costs to consumers of the outcomes of the Bill.
The motivation of my amendments was simple: to include a reference to the consumer interest and force the Secretary of State and the Government to have regard to that, and to require much greater transparency about the contracts created and the costs imposed by the Energy Bill. We all know that the Bill came out of the Government’s electricity market reform process, which began in 2010 and had three elements. The first is the carbon price floor, which has been introduced by the Finance Act 2013 and sets out a path for a minimum carbon price in the UK from the fiscal year 2013-14 from £16 per tonne to £30 by 2020.
There is a new renewable and nuclear subsidy mechanism. The Government will replace the existing regime with a contract for difference mechanism. This new mechanism will very largely transfer the price risk from the developer to the consumer by guaranteeing an achieved power sale price for each power station covered. Unlike the renewables obligation, the new contract for difference mechanism will also provide subsidy support to the developer of new nuclear, about which I know other Members have concerns.
Another strand is that the Government will create a capacity market that will seek to ensure the retention of sufficient existing generation capacity and the building of new capacity. The design of the capacity market is still ongoing, so the exact nature of the market in the future is unclear, and we do not know when it is planned to hold the first capacity auction. I believe that it will potentially be in 2014 for delivery in 2018. Then there are the bits about emission performance standards to talk about.
Realistically, though, there is an overall problem with the Bill, which was highlighted by the Opposition’s general agreement. It is a kind of renationalisation of the power sector—very, very nearly. To deliver their policy goals the Government require utility companies and third-party investors to build assets that are fundamentally not economic, often in technologies that are far from robust or mature. The Government have taken upon themselves the responsibility of deciding which generation technologies are bad, such as coal and unabated gas, and which are good, such as hydro or nuclear or wind perhaps. They have also decided the pace of change, that coal should largely be removed from the power matrix by 2024, and that unabated gas should operate only at peak from 2027. They have decided which future technologies should or should not be developed and are pushing forward with a leap of faith on as yet completely unproven technologies, as we have heard before, including carbon capture and storage.
The Bill will take Government intervention up yet another level. Under the powers granted by the Bill, the Department of Energy and Climate Change will allocate contracts for difference to developers in those technologies and at those locations that DECC favours. It will set the strike price and so determine the revenue of the asset, what the consumer pays and the returns on investment. It is very much a centralising measure. I am not convinced that it gives the opportunities for new sources that bubble up, as we might perhaps say in this case.
(12 years, 6 months ago)
Commons ChamberIt is a pleasure to follow the eminently wise speech by the hon. Member for East Kilbride, Strathaven and Lesmahagow (Mr McCann) on both the subjects he chose.
I listened to the Gracious Speech last week, and I noticed a seemingly small passage—[Interruption.] I thought it was a good idea to listen to the Queen’s Speech; it was one of the things I was keen to do, having been elected to this place. This seemingly small bit related to measures in the field of foreign affairs. One measure—the European Union Bill required for our ratification of the treaty changes to allow the European stability mechanism to have some legality—particularly took my eye. It highlights a problem that the European Union has with the eurozone, the consequences of which, if we do not act in certain ways, will be huge for us.
Like many other countries in Europe, this country has lived way beyond its means for way too long. We borrowed too much, as did many other eurozone countries. As every family and business in the country knows, when you borrow too much, you have to repay it; otherwise, you suffer consequences that you really do not want to suffer. You encounter this horrible thing, whereby other people tell you how you should spend your money and what you should spend it on. We have suffered this in the past from the International Monetary Fund and, unfortunately, this is what is happening to other eurozone countries now.
What is going on in our economy, and what is increasingly now happening elsewhere, is that people are realising that they have spent too much. But, as with the gambler who has won big in the past but has since blown it all, the realisation that the game is up is a particularly hard one to come to. It is almost natural to blame other people or to try to carry on as normal, but if you do not take action to change your spending habits, you might well end up losing your shirt.
In the past couple weeks, interesting and important elections have been held in the eurozone. France elected a new socialist President, who won 52% of the vote. I believe the BBC called that a “clear” and “decisive” victory, which contrasts with its description of a “narrow” victory when Boris Johnson won in London with 51%. Monsieur Hollande was hardly swept to power on a tide of euphoria in France. He narrowly defeated an unpopular, not particularly conservative and frankly unappealing President who had wasted the opportunity to reform his country. The French people ejected a social democrat and elected a socialist in his place. Much has been made of the fact that President Hollande will now attack the City of London, try to impose a financial transaction tax, attempt to scrap the UK’s EU rebate and demand an agenda of further job-destroying social legislation from the EU, but has that not been France’s position for years? Plus ça change, plus c’est la même chose.
President Hollande seems to believe that there is a stark choice between austerity and growth, but he is simply wrong. Most people are savvy enough to understand that you need to live within your means and do what you can to ensure your means grow to enable you to live that bit better. We, in this country and across Europe, need to get back to the simple understanding that you need to create wealth before you can redistribute it. What many Labour Members believe is that the money tree will continually sprout cash; the current student language of constantly attacking and wanting to penalise those who make money does only one thing: it ensures that less money is made, as people earn elsewhere, less tax is paid and so less can be redistributed.
Greece has also held elections, the results of which did not bring about a Government—we have just heard the news that there will be further elections in Greece. It was noticeable in Greece that people did not want to have the choice presented to them. They wanted a Government to reflect their true views; they do not want to be dictated to by foreign countries, and they hate the troika of the EU, IMF and the European Central Bank telling them what their Government should do. But Greece is bankrupt and it has been for months, if not years. It cannot pay its bills without help from the IMF and the EU. So it is no surprise that it is going to have fresh elections, but the most important decision about Greece’s future will be made not in Athens, but in Berlin.
Many in this Chamber, on both sides, have said that Greece should be allowed to fall out of the euro. I tend to agree, but, as ever, nothing is as simple as all that. Just for a moment, put yourself in the shoes of an ordinary German. You have heard all the horror stories from your own family history about what happened to your relatives and your country when hyper-inflation struck after the second world war finished, and your gut tells you that you should avoid inflation at almost any cost. You are therefore amazingly protective of your currency. Indeed, any threat to it is a threat to you, your family and your community’s livelihood, so you will do all you can to protect both it and its value. However, a political decision that you were not really a part of, taken ages ago, puts you now in the same currency as a batch of other people miles away who are threatening your economic stability. You have two choices and you are happy with neither: you can just throw money at your costly currency partners—
I am allowing the hon. Gentleman to make his speech, but he knows the form of address and that when using “you” constantly, he is actually referring to the Chair. I may look old, but I am not that old that I go back to the second world war.
As you know, Madam Deputy Speaker, the voices in the Tea Room believe you are very young—a peach among all the Deputy Speakers that this place has ever seen—and I apologise for my use of the word “you”. [Interruption.] It is worth a try.
A political decision taken ages ago puts your family—not your family, Madam Deputy Speaker, but this particular person’s family—into the same currency as a bunch of people who are threatening your economic stability. The two choices you have are to throw money at your very costly currency partners—money that you have had to earn and pay in tax—or, as a German citizen, to say, “Enough is enough”, get rid of your costly neighbours and concentrate on ensuring that this can never happen again.
(13 years, 4 months ago)
Commons ChamberTo help out the Opposition, the Minister may have noticed that they had a completely different policy on the MFF on days that began with a “T” from on those that began with any other letter. That happens to be true when it comes to the Lords.
I do not want the Minister to help out the Opposition, who can take care of themselves. I want him to help out the Government by speaking to the amendment. Perhaps he would return to it.
Order. That is not relevant to the amendments that the hon. Member for Daventry (Chris Heaton-Harris) is addressing. He should come back to them and to his reasons for disagreeing with them.
(13 years, 8 months ago)
Commons ChamberI have no knowledge of any notification of a statement. I understand that as the passport office is in her constituency, she is very concerned about the issue. May I suggest that she discusses with the Table Office how she might pursue the points that she wishes to have raised on the Floor of the House?
On a point of order, Madam Deputy Speaker. Can you help a number of Labour MPs who signed early-day motion 1146 last year, congratulating UK Uncut? I believe they might want to withdraw their names now and need a bit of advice on how to do that.
Nice try, Mr Heaton-Harris. I do not think we will take that any further forward. I am sure that all Members of the House will consider their position when signing early-day motions.
(13 years, 9 months ago)
Commons ChamberOrder. The hon. Gentleman must resume his seat.
Even if it is over three years, it still amounts to 7% or 8% of the total savings required. Does the right hon. Lady regard that as insubstantial?
I know that the hon. Gentleman heard me earlier; he clearly saw me. Interventions must be short.
(13 years, 10 months ago)
Commons ChamberI beg to move amendment 24, page 6, line 7, at end insert—
‘(e) a decision under Article 218(8) of TFEU for the accession of the European Union to the European Convention for the Protection of Human Rights and Fundamental Freedoms in accordance with Article 6(2) of TEU.’.
With this it will be convenient to discuss the following:
Amendment 45, page 6, line 25, at end insert—
‘(da) a decision implemented through the solidarity clause under Article 222 that obliges the United Kingdom to provide assistance to another Member State which is the object of a terrorist attack or the victim of a natural or man-made disaster.’.
Amendment 25, in clause 10, page 8, line 34, leave out subsection (2).
It is a pleasure to come back for a third day of excitement this week, talking about Europe. I thought that when I left the European Parliament, I might be able to ditch that part of my life and move on to something interesting. It seems to wear one down, like a terrible weight around one’s neck.
I want to see whether I can tidy up a few parts of the Bill which, I believe, could be helped. Currently the European Union is not party to the European convention for the protection of human rights and fundamental freedoms, the ECHR. The Lisbon treaty, however, introduced what is now article 6(2) of the treaty on the European Union, which provides that the EU will accede to the ECHR. This accession agreement—in effect a treaty between the EU and the states party to the ECHR—is being negotiated.
Article 218(8) of the treaty on the functioning of the European Union provides that once negotiated, the accession agreement must be concluded, for the EU’s part, by unanimity in the Council. The same article states that after adoption by the Council, the EU decision concluding the agreement must also be
“approved by the Member States in accordance with their respective constitutional requirements”
before it can come into force.
Under current UK law, this approval may require an Act of Parliament. Clause 10, however, where this matter currently resides, requires only a resolution of approval in each House. Indeed, the definition of parliamentary approval in clause 10(3) does not seem well suited to the approval of a decision adopted by the Council under article 218(8), because the resolution of approval specified concerns approval of a draft decision.
Until the article 218(8) TFEU conclusion has come into force, the EU cannot accede to the ECHR. This is a complicated treaty between the EU and the ECHR and warrants a great deal of scrutiny. It will have a number of indirect effects on the United Kingdom.