Oral Answers to Questions
Debate between Chris Huhne and Gordon Banks
Chris Huhne
The hon. Lady should be aware that the eco-subsidy is replacing two elements that we inherited from the previous Government: the Warm Front scheme, which was aimed at helping those in fuel poverty, and the carbon emissions reduction target and community energy saving programme schemes, which were aimed generally at householders. The proportions are broadly similar, so I do not accept that this is a departure in policy in terms of prioritisation. She will be aware that the warm home discount is aimed at those in fuel poverty—it will give two thirds more support to those in fuel poverty and will be targeted on the 600,000 most needy pensioners. That is a statutory scheme, which compares with the voluntary one under the previous Labour Government.
Gordon Banks
In answer to earlier questions, Ministers said that the green deal is with us and working here and now, but it is not. The Government are scrapping Warm Front and delays with the green deal mean that they will be the first Government since the 1970s who have not had a fuel efficiency programme. At the same time, they are downgrading the number of jobs that will be created by the green deal by 35,000. The question is simple: why?
Chris Huhne
The eco-consultation and that jobs estimate obviously came out before the Chancellor’s announcement in the autumn statement of £200 million of incentives for the uptake of the green deal. Those introductory incentives have been warmly welcomed across the industry and will ensure that we have substantial uptake of the green deal. On the point about funding, the whole model of providing energy efficiency changes with the green deal. That was supported across the House, including by the last Labour Government. It will, I believe, unlock substantially more money that was ever available from publicly funded, Exchequer-funded sources.
Annual Energy Statement
Debate between Chris Huhne and Gordon Banks
Chris Huhne
The key in any market is to ensure that it is properly competitive. I am absolutely in favour of shareholders, particularly since they are usually our pension funds and our insurance companies, making the best possible return in a competitive market. That is why we are stressing the key competitiveness requirements of the wholesale market and the retail market. When we get that right, we will have the assurance that the rates of return in the marketplace for the big six and, I hope, for the new entrants to the market will be fair, precisely because they have been earned fair and square in a competitive market.
Gordon Banks (Ochil and South Perthshire) (Lab)
The Secretary of State referred to the green deal in his statement. What is he doing to ensure that VAT on products used in the green deal is set at the same level as for the energy it is designed to save—that is, at 5% and not 20%?
Chris Huhne
The hon. Gentleman raises an important point. There are substantial anomalies—and not just that one—in the VAT regime. It is not always possible, because of the commitments in the EU legislation, for member states to make unilateral changes to that regime but he certainly makes a sensible point and I am sure that the powers that be at the Treasury will listen carefully to it.