Jobs and Growth in a Low-carbon Economy

Lord Hanson of Flint Excerpts

Monday 5th March 2012 Commons Chamber

[Mr Davey]

Under the scheme that the previous Government devised, there was no such system. The new scheme that we are consulting on contains proposals for a community guarantee for tariffs on which we want to hear people’s views. I hope that the right hon. Lady will engage with that consultation, because I think that that is a very positive proposal.

Following on from what I said about collective switching, I would now like to say a little more about what the coalition is doing to help, protect and empower consumers. We want to help people to heat their homes at a lower cost by improving the energy efficiency of their homes. That is why we are pioneering the green deal. We are creating a brand new market framework, designed to be driven by consumers and businesses, which will secure billions of pounds of private sector investment in Britain’s building stock. We are working with the finance industry to ensure that there is a sufficient supply of low-cost finance from day one.

The right hon. Member for Don Valley criticises a lack of progress, but we are designing an entirely new means of financing the re-fitting of Britain’s housing stock. We are the first country ever to do so, and we want to get it absolutely right. We have held in-depth discussions with a wide range of banks and other financial institutions, and established a round-table forum of key investment banks and investors. My right hon. Friend the Business Secretary has stated that the green deal is a priority for the Green investment bank. We are also in discussions with the European Investment Bank to see how it can support the green deal. I believe that we have an ambitious agenda that will help consumers up and down the country as it is rolled out.

[Mr David Hanson (Delyn) (Lab)]

Why is it, then, that representatives of local businesses came to my constituency office last Friday to tell me that there was gross uncertainty over the future of the green deal? They told me that they could not make plans because an interest rate had not been set, and that they were worried about losing businesses and the impact on jobs. In fact, one firm, which employs 55 people, did not expect to still be in business on 31 December. Why is that the case, if everything is so wonderful, as the Secretary of State maintains?

[Mr Davey]

I would have thought that the right hon. Gentleman would know that the scheme is not going to be launched until the fourth quarter of this year, and that we will be making announcements in the run-up to the launch. I hope that he explained to his businesses that they will need to look for the Government’s announcements, and that they should feel positive about a scheme that is going to happen under this Government and that did not happen under the previous one.

[Mr Hanson]

Will the Secretary of State start, then, simply by saying on what date he will set the interest rate for the green deal, so that businesses can plan for the future? This involves long-term investment decisions for them, as well as for consumers.

[Mr Davey]

The problem with some of the Opposition’s criticism is that they do not seem to realise that this will be a market-based system, and that the Government will not set the interest rate. The right hon. Gentleman needs to understand that green finance companies such as those I have just been talking about will set the interest rate.