Durban Climate Change Conference
Debate between Chris Huhne and Mark Lazarowicz
Chris Huhne
The power of example is quite powerful, as the Minister of State and I have discovered. We have substantial credit for what this Government are doing on development among African countries and other developing countries, and I think that that power of example is carrying over to other developed countries. I very much hope that others will join in helping to fill the green climate fund. A number of countries have already been prepared to make conditional pledges, including the Government of Korea, and I am sure that there will be others.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
At the most recent Energy and Climate Change questions I expressed my concern about progress in the negotiations. I would like to put on the record my tribute to the Secretary of State and his team for their work in helping to secure substantial progress. He mentioned the importance of monitoring and information in the period running up to 2015, but he will also be aware that there is a danger that things might go a little quiet after the negotiations in Durban and that in the run-up to 2015 there might yet again be last-minute political pressure and attempts to put decisions off to another day. What steps can be taken to ensure that there is an opportunity for a political focus from now until 2015 not only in the UK, but in other countries, to ensure that we have an agreement in 2015? For example, what review mechanisms are in place to allow politicians and Governments to have an impact on the negotiations to ensure that they result in the type of agreement we want in 2015?
Chris Huhne
The UNFCCC process provides numerous opportunities, including through the groups around it, such as the Major Economies Forum and the Clean Energy Ministerial meeting, which we will host next spring, in order to bring political leadership to the whole process. I was very encouraged by what happened at Durban and that the political leadership is increasingly there, and we need to build on that.
Oral Answers to Questions
Debate between Chris Huhne and Mark Lazarowicz
Chris Huhne
Supporting energy efficiency projects is indeed part of the Green investment bank’s remit, and clearly that includes the green deal. We can certainly envisage a key role in the launch of the private finance, because after all the green deal is private finance, but at the very beginning it will be important that the markets gradually get used to the idea of that new type of instrument, and the Green investment bank could have an important role in facilitating that.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
I am glad to hear that the Secretary of State is discussing the issue with colleagues. When will a decision on the location of the Green investment bank be made, and when will it be up and running for business?
Chris Huhne
The first investment should be made in the spring of next year. The location will be a matter first for the advisory board, whose advice I also anticipate will be available next year. The hon. Gentleman will bear it in mind that the Department for Business, Innovation and Skills is leading on this.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
T9. I am glad to hear that the Secretary of State and the Minister are going to the climate change conference in Durban next week, but has the Secretary of State not left it too late? Is there not a danger that the conference will not produce the outcome that we want? What is the Secretary of State doing to ensure that we secure an international agreement, especially in the light of reports that have appeared over the past few days of a lack of progress in the negotiations?
Chris Huhne
The hon. Gentleman has a long-standing interest and expertise in this matter, and I am delighted to answer his question.
I could not have gone to Durban any earlier than Sunday, because that is the beginning of the ministerial segment, but the hon. Gentleman can be assured that I have been involved in talks with a number of other ministerial participants ahead of the conference, including Chinese, Colombian and South African Ministers. I believe that we have a real chance of making progress. Some of the gloomiest reporting tends to appear just before the talks begin in earnest, and I have not given up yet.
Oral Answers to Questions
Debate between Chris Huhne and Mark Lazarowicz
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
Will the Secretary of State confirm that no decision has yet been taken on the location of the headquarters of the proposed green investment bank? That being so, does he agree that Edinburgh would be an ideal location, particularly given what he just said about ensuring that green investment is not focused just in the south-east of England?
Chris Huhne
The hon. Gentleman knows that Edinburgh is an ideal location for many things, including a number of my hon. Friends. Decisions on the siting of the headquarters are perhaps a little way off, as we are still consulting on the exact shape of the investment bank, but I am sure that we will bear in mind the considerable advantages of his constituency when we come to make that judgment.
Budget Resolutions and Economic Situation
Debate between Chris Huhne and Mark Lazarowicz(14 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Chris Huhne
I honestly think that the hon. Gentleman is misreading the situation dramatically. We had three announcements; I have mentioned two of them already and I am going to expand on the green deal. It was an emergency Budget, and I would not have expected a substantial programme of reform on green taxes in an emergency Budget that was designed to take us out of the firing line. We have a clear coalition commitment, going forward, to a rise in revenue from green taxes as a proportion of total revenue. That is in the coalition agreement and I have absolutely no doubt that that is what we will see when the full Budget is brought forward in the normal way after the processes of consultation throughout Government.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
Even if we accept what the right hon. Gentleman says about the emergency Budget, there was a very carefully costed proposal on air passenger duty in the Lib Dem manifesto—at least my Liberal opponents said that it was carefully costed—which seems to have gone missing. Why has that proposal been replaced by some future discussion in some future commission? Why has it become something that only might happen, if it could, apparently, have added £3 billion a year to the Budget now, at a time when that money is clearly needed by the Government?
Chris Huhne
I hope that the hon. Gentleman realises that there will be a consultation on that proposal in the autumn. I have no reason to believe that it will not be brought forward in the normal course of events with ordinary Government announcements. It is part of the coalition agreement and is widely welcomed. I believe that it was in both the Conservative and the Liberal Democrat manifestos, but not everything can be announced on day one. The overwhelming priority for this Budget has been to ensure that we can sustain growth and jobs by removing ourselves from the substantial and real risk of contagion from the financial crisis in southern Europe. That has been the overwhelming priority.
Chris Huhne
I thank my hon. Friend for that question. Obviously, he knows that we will go through the comprehensive spending review in the autumn, and the normal process is to make announcements when we have been through that, but I have no reason to doubt that the Government’s commitment to the support of infant wave, tidal stream and wind technologies will continue and I am confident that there will be announcements reflecting that priority, which is in the coalition agreement.
Chris Huhne
I shall give way a bit more, but let me make a little progress. I have been making the argument that the need to replace our ageing energy infrastructure will give enormous impetus to growth in coming years. The other part of the argument has to be about looking at the centrepiece of the Bill that my Department will bring forward later in the year and at what we are proposing on the green deal. That, too, is an enormously significant package that will have genuine macro-economic consequences for the transformation of the economy and the creation of a whole new industry.
Chris Huhne
Before I give way, let me make a couple of points about the economic significance of that approach. First, the potential increase in demand as a result of the creation of new industry will be absolutely enormous if we can get the Bill, the framework and the pay-as-you-save measures right. By way of indication, we would be talking, in practical terms, of 14 million homes that could be insulated with the support of the green deal. Purely arithmetically, if the average cost were £6,500, for example, we would be talking about a market worth literally tens of billions of pounds—£90 billion over a substantial period.
We are talking about creating a new industry that would be genuinely jobs-rich, as it would use skills already present in the construction sector and need unskilled labour as well.
Chris Huhne
The hon. Gentleman knows, as I do, that the two points that he makes are not as mutually contradictory as he suggests. There is a long history in this country of applying so-called “sin taxes” to alcohol and tobacco, and they have had the very desirable effect of helping to get people off smoking and of cutting their drinking. The success of those taxes is not perhaps as great as many hon. Members on both sides of the House would like, yet I am assured by the latest Red Book documents that the Treasury continues to raise a very substantial amount of money from both tobacco and drink excises.
The reality is that, while green taxes will change behaviour, the responsiveness of behaviour is such that revenue will continue to be raised for a very substantial period. I have to say that, in the present circumstances, that point is likely to commend itself to the Treasury, which always used to follow the motto of Colbert, the finance minister of Louis XIV, who said that the art of taxation lay in plucking the maximum number of feathers from the goose with the minimum amount of hissing. In that context, green taxes certainly are a very justifiable way to pluck the maximum number of feathers.
I shall give way once more, to the hon. Member for Edinburgh North and Leith (Mark Lazarowicz), and then I shall wind up and let the debate make progress.
Mark Lazarowicz
I am very grateful indeed to the right hon. Gentleman for giving way. I want to leave Louis XIV and return to future technologies, and I was interested in the response that he gave to the hon. Member for Chippenham (Duncan Hames) about support for wave technologies. The right hon. Gentleman will probably know that two of the UK’s leading marine renewable energy businesses have their headquarters in my constituency. Can he assure me that support for marine renewables will be at the centre of his policies for every constituency in the UK, and not just those in the south-west of England? More specifically, will he tell us how the Government’s support for marine renewables will be affected by the Budget that we are discussing?
Chris Huhne
Quite properly, the hon. Gentleman wants me to anticipate announcements that will be made by the Government in the normal course of events. I understand that game, as I have played it myself on many occasions. At this stage, however, I can merely tell him that I visited Aberdeen recently for the All Energy conference, where I had interesting and fruitful talks with the marine energy specialists currently testing equipment off Orkney. I am deeply committed, as I believe the Government are, to making sure that what is a genuinely interesting source of potential future prosperity and jobs continues to get the support that it needs to get off the ground.
Obviously, we are in very tough times and have had to cut our cloth to fit our straitened circumstances, but I believe that marine energy offers real opportunities. We have made a number of proposals in that regard, and we will continue to support the sector.