Energy and Environment, Food and Rural Affairs

Edward Miliband Excerpts

Thursday 27th May 2010 Commons Chamber

[Edward Miliband (Doncaster North) (Lab)]

I congratulate the right hon. Gentleman on taking up his post as Secretary of State. He has had a distinguished career as an economist, as a Member of the European Parliament and as an eloquent Member of this House since his election in 2005. He was also one of the architects of the coalition agreement and he deserves his place in the Cabinet. We will be a constructive Opposition and I welcome him to his post.

As the right hon. Gentleman is a Liberal Democrat, I know that he practises what he preaches. I am told by friends that he is going to follow his new leader, the Prime Minister, in putting a wind turbine on his house, but that he is going to go even further and put a wind turbine on all seven of his houses. We look forward to the regeneration of the wind turbine industry that that will produce.

[Mark Tami (Alyn and Deeside) (Lab)]

My right hon. Friend mentioned that the Secretary of State would be putting wind turbines on his house. I wonder whether local Lib Dems will campaign against that, as they always seem to campaign against wind farms, whether onshore or offshore, whereas at a national level they say that they support them.

[Edward Miliband]

No doubt that will be the case.

Let me say right at the outset that now we are in opposition, I intend for us both to hold the Secretary of State to account and to be constructive. In that spirit, there are some measures that we welcome, which would have been in a Labour Gracious Speech. The help for the home energy efficiency pay-as-you-save proposal is very important and we look forward to scrutinising the measures that come forward on that. The measures on the smart grid are also important, as is reform of the energy market—the work that we started in government. Internationally, we will fully support his efforts to try to get the binding treaty either at Cancun or in Cape Town that we failed to get at Copenhagen, and I will happily share with him some of the scars of Copenhagen if I can be of any help in advance of the Cancun summit.

The issue at the heart of this Gracious Speech, in this area and in many others, is whether the Government can provide the long-term direction that the country needs. In the area of climate change and energy, above all others, the country needs a clear sense of direction. The Liberal Democrats and Conservatives had different positions on some key issues at the election. I suppose we cannot blame them for that, as they did not know they would end up in bed together, but the test will be whether they produce a coherent long-term plan on those areas of disagreement or simply try to paper over the cracks, and thus fail to provide the long-term direction the country needs. We should set three tests: whether the new Government have a coherent strategy to deliver on the transition to low-carbon energy, whether they have a plan to secure a green industrial future for Britain and whether they have a commitment to make the transition fair.

Let me address the biggest challenge of all, which is the pre-condition of all other challenges on climate change that we face—the need to take carbon out of our electricity supplies. Our answer, in the low carbon transition plan we published last summer, which I hope was a plan for a decade, was the trinity of low-carbon fuels—clean coal, renewables and nuclear. On clean coal, I am pleased that the coalition agreement supports our investment and the levy that went through the House, as well as the tough coal conditions that we introduced, which are the toughest in the world.

[Mr David Anderson (Blaydon) (Lab)]

My right hon. Friend raises the issue of clean coal. We must also raise with the Government the immoral cost of importing coal from countries such as China and Ukraine, where thousands of miners are killed every year so that we can get relatively cheap coal. When he was the Secretary of State, he agreed to take forward this issue in the international arena. Will he join me in asking the new Secretary of State to do the same?

[Edward Miliband]

My hon. Friend raised this important issue at the end of the last Parliament. We hope to work with the Government on that, as I am sure it is a cross-party concern. No doubt he will campaign on this issue as eloquently as he does on many others.

We will scrutinise the Secretary of State’s plans for an emissions performance standard. There is concern about whether that will lead to uncertainty in investment in coal and gas, but, again, we will judge the Government on the measures they introduce. There is some urgency on this issue, so I hope that plans will be produced speedily.

On clean coal, I think the Government are broadly in agreement with our plans, but what about renewables, which are the second part of the trinity of low carbon that we need? The Conservatives said in their manifesto that they agreed with our target of 15% renewable energy by 2020. The Liberal Democrats said they wanted a figure of about 40% by 2020, which I think is completely unrealistic. How have they resolved that difference? The new Government do not seem to have a target. They have 15% as a baseline, but say that they want the figure to be higher, and they have referred the issue to the Committee on Climate Change. There is a deeper problem here, because the Government say they want a larger target, but they are not willing to support the measures needed even to deliver existing targets. The Secretary of State made much of our record on renewables. We are the world leader in offshore wind generation, but it is true that we lag behind on onshore wind. However there is one very good reason for that, and he knows it as well as I do—most wind farm applications are blocked by Conservative councils. One might put it this way:

“At local level, Conservative councils are simply not heeding Cameron’s green call.”

Those are not my words, but those of the Secretary of State, writing about Conservative opposition to wind farms, so he knows that is the root of the problem.

[Mr John Redwood (Wokingham) (Con)]

Will the right hon. Gentleman tell the House why his Government failed to take the decisions or create the climate to have new investment in electricity generation, and why they left this country with insufficient capacity and the danger of the lights going out?

[Edward Miliband]

I do not agree with that. The question for Britain is whether to meet our security of supply needs in a high-carbon way, by building gas-fired power stations, or in a low-carbon way, by building renewables and nuclear. That is why what I am saying is so important.

[The Secretary of State for Environment, Food and Rural Affairs (Mrs Caroline Spelman)]

rose—

[Edward Miliband]

Oh, some help from the right hon. Lady. How kind of her.

[Mrs Spelman]

Coming very recently from a Department for Communities and Local Government brief, I can help all Members of the House on this. It was the original Conservative plan, and is now the coalition’s plan, to allow local communities to keep the business rate from the tariff that comes with the wind Bill, so that communities who take wind turbines in their local communities will also gain from them. That is part of promoting that form of renewable energy.

[Edward Miliband]

I am sure that the Secretary of State for Energy and Climate Change will be very grateful for that help from his right hon. Friend, but I do not think that that is enough. Let me explain why. I gave that quote not to embarrass him, but to raise a very important issue.

[Chris Huhne]

Will the right hon. Gentleman give way?

[Edward Miliband]

In a moment.

We said in our manifesto that every council should have a local target to help meet the overall 15% target for the country as a whole—not that they should have a disproportionate target, but that they should make a contribution to the overall target. The Conservatives, including the right hon. Lady, were against that, but I thought that the Liberal Democrats were in favour of our strategy. I attended a Guardian debate on climate change with the hon. Member for Bermondsey and Old Southwark (Simon Hughes) during the election, and he said that he supported my policy. By the way, I regret that he is not in the Government, because I think they are poorer without him. Now, what do we see in the coalition document? The Tories have won the argument: there will be no local obligation to contribute to the national target, because of the abolition of regional strategies. So what is it? It is a charter for every council to be able to say, “Not in my back yard.” The Secretary of State said in his first interview in The Times that he is going to build 15,000 wind turbines—he is going to make a start by putting seven on his own houses—but that will not happen without a strategy, and so far, I see no strategy from him.

[Chris Huhne]

The right hon. Gentleman needs to distinguish between setting a Government target and delivering on the ground, which is much more important. One thing that the Government are going to do is to under-promise and over-deliver as opposed to what happened with the last Government, who over-promised and under-delivered. On the point that my right honourable colleague the Secretary of State for Environment, Food and Rural Affairs made, we should remember what the evidence shows, from good examples of installing wind farms such as the Gigha wind farm in the highlands, where sharing the benefits led to support for it and its rapid installation.

[Edward Miliband]

The right hon. Gentleman is going to have to do better than that—it is just a load of old hot air. He is trying to increase our target, but he is taking away one of the key levers needed to help us meet the target. You do not have to take my word for that, Mr Speaker—you can take the word of the hon. Member for Bermondsey and Old Southwark, who supported our position. If he would like to intervene to tell me, or his former right hon. Friend, who is now the Secretary of State, that he agrees that local councils need to contribute to the 15% target, I would be very happy to give way to him. [Interruption.] I think that says it all. The splits are already appearing.

[Mr Jamie Reed (Copeland) (Lab)]

Surely, it is worse than that. By starting again with the planning regulations, we are going to lose all the momentum we have developed over the past three or four years, and we are going to encourage investors to go to other parts not only of Europe but of the world.

[Edward Miliband]

My hon. Friend anticipates a later section of my speech. He makes a very important point.

[Robert Flello]

Have I missed something here? Up and down the country, whenever I have seen protest flags and signs saying, “No wind farm here”, they have never said, “No wind farm here unless of course you want to give us some money.” Poorer communities will have to put up with wind farms as the only way of getting money into their communities while better-off communities will say, “Not in our back yard, thank you very much.”

[Edward Miliband]

My hon. Friend eloquently makes his point. I am afraid that the truth is that the right hon. Gentleman, in his first few days in the job, has obviously sold down the river his former Liberal Democrat colleagues, and they will take note.

Let us move on to the next part of delivering the low-carbon agenda: nuclear power, which was a very small feature of the right hon. Gentleman’s speech. He spoke one line through gritted teeth about nuclear power. I wonder why. I think that I know the reason. Let us be clear that our position on nuclear power is that the challenge of climate change is so great that we need nuclear as well as renewables and clean coal, because the challenge of climate change is so big. That is the position of the vast majority of Conservative Members––they are nodding away, which is great because we agree with them.

Of course, the Liberal Democrat position was against new nuclear power. The Liberal Democrats say in their manifesto that they

“reject a new generation of new nuclear power stations”.

But I am in a generous mood, so let us not criticise them for that, because the judgment is one of whether they have managed to achieve a proper long-term agreement, with a clear position, or whether they have just papered over the cracks.

The Minister of State, Department of Energy and Climate Change, the hon. Member for Wealden (Charles Hendry), is instructive on the issue. He said about nuclear investment that

“Clarity is essential if new investment is to happen.”

I agree with him, so let us apply his test to the new Government. The coalition agreement says that the Government will introduce a national planning statement and that the Liberal Democrats can continue to maintain their opposition to nuclear power, but it does not end there. It says that

“a Liberal Democrat spokesperson will speak against the Planning Statement…but…Liberal Democrat MPs will abstain”.

Let us be clear that there is not one Government position on nuclear power, not two Government positions, but three positions: the Government are notionally in favour of it; a Liberal Democrat representative will speak against it—I do not know who that will be; it might be the hon. Member for Bermondsey and Old Southwark, or, presumably, the right hon. Gentleman—and the party itself will sit on the fence in any vote. We always knew that being a Liberal Democrat in opposition meant not having to choose, but old habits seem to die hard: they seem to think that being a Liberal Democrat in government means not having to choose either.

The right hon. Gentleman seems to have passed responsibility for new nuclear power to his deputy, the hon. Member for Wealden. The responsibilities of the Department of Energy and Climate Change have come out and the Secretary of State seems to have abdicated responsibility for this issue. Delivering on new nuclear power is a very big task that needs the personal role of the Secretary of State. I used to chair the Nuclear Development Forum, bringing together all the different partners in industry to drive things forward and ensure that we would deliver on time. I hope that the right hon. Gentleman will think again about abdicating responsibility to the Minister of State, much as I admire him.

[Caroline Lucas (Brighton, Pavilion) (Green)]

My right hon. Friend says that the challenge of climate change is so great that we need nuclear power as well as renewables and energy efficiency, but given that we have to reduce our emissions in the next eight to 10 years if we listen to the scientists, we need to consider what is the most cost-effective and the fastest way to do that. Is nuclear power not a massive distraction in that debate? Even if we doubled the amount of nuclear power, we would cut our emissions by only 8%. Putting money into renewables and efficiency is far more effective.

[Edward Miliband]

I welcome the hon. Lady to the House. I wish that the Labour party had won her seat, but she comes to the House with a distinguished campaigning record on green issues, and she will inform our debates and bring great expertise to them.

I disagree with the hon. Lady about nuclear power, because we have to plan for the long term. She is right that we have to meet an urgent challenge, but we also have 80% targets for 2050, and we must drive our targets for 2020 beyond 2020 to 2025 and 2030. The Opposition’s view is that nuclear power needs to play a role.

[Simon Hughes]

The right hon. Gentleman is part of the Labour party’s conversion to nuclear power, and he knows that my party has not done so. As well as the fact that nuclear power cannot deliver quickly, is it not true that the contribution that it could deliver is so far away that it will also make a minimal contribution, if one at all? Can he honestly tell the House that he believes that nuclear power can be delivered in this country without public subsidy, unlike in the United States, Finland or any other country in the world?

[Edward Miliband]

Yes, I can, because we have learned the lessons of Britain’s past on nuclear power, as well as international lessons. What have we said? For example, we said that companies will have to put aside money to cover legacy waste. I honestly believe that that is necessary. That is not to say that nuclear power has no challenges, but the challenge of climate change is far bigger, and we reject the alternatives at our peril.

The mystery is that the Secretary of State and the new Government seem to have three positions on nuclear power, but there is a revealing history, and we need to be clear and honest about the fact that Liberal Democrats said in the past that, if they ever got into government, they would do everything that they could to stop nuclear power happening. The hon. Member for Cheltenham (Martin Horwood), who is not in his place, said:

“I assure any investors who may be watching our debate...that their investment will be at risk if we play a part in any future Government, because if we had the chance we would seek to slow down, and if possible to stop, the development of nuclear power.”—[Official Report, 30 April 2008; Vol. 475, c. 322.]

I have to tell the Secretary of State, whom I greatly respect, that people will think that that is his and the new Government’s hidden agenda. He has said no to nuclear and described it as a “dead end”. It is quite simple: to show the clarity that the Minister of State says is necessary and to send a clear signal, I urge the Secretary of State to say that he was wrong to say, “Our message is clear: no to nuclear.” The grown-up thing to do is to admit that he got it wrong and that he wants nuclear power to be part of this country’s energy mix. Surely, if he believes in his own policy on public subsidy, all the Liberal Democrats should vote for it. He has set a policy—we do not disagree with it—and Liberal Democrat Members should vote for it. Sending those mixed signals is not good for the business community.

Let me end my comments on nuclear power by making the point that there is a very strange thing in the coalition agreement at the end of the section on nuclear power. I have been scratching my head about it. It says that they—presumably, the people who wrote the coalition agreement—want

“clarity that this will not be regarded as an issue of confidence”.

What an extraordinary thing for a Government to say about their own policy. Oppositions normally say that they do not have confidence in a Government’s policy. The Government are saying that their do not have confidence in their own policy. What confidence can the world outside have in the Government’s policy when they say that they do not have confidence in it?

The person whom I feel most sorry for is the Minister of State. He must be tearing out his hair. He spent many distinguished years in opposition. He persuaded the Prime Minister to abandon his position that nuclear was merely a last resort, and now he ends up with the right hon. Member for Eastleigh (Chris Huhne) in charge. Someone said rather unkindly last week that it really is like having a vegan in charge of McDonald’s. I think that that is very unfair, but Tory MPs, most of whom support nuclear power, must be shaking their heads. The coalition has given us the dogma of the Tories on wind farms, which will mean that they find it difficult to deliver, and the dogma of the Liberal Democrats about nuclear power. Neither side is willing to face up to the tough decisions that we need to make as a country to make the low-carbon transition.

[Malcolm Wicks]

Does my right hon. Friend agree that, although the new Secretary of State seems to wish to adopt a laissez-faire approach—“It’s nothing to do with me; it’s up to the industry on nuclear”—the reality is that, whether on the generic assessment of the technology, siting arrangements or deep geological disposal, one needs a Secretary of State to drive things forward? The Secretary of State talks about clarity. People wish for nuclear fusion one day. Is not the reality that we now have nuclear confusion?

[Edward Miliband]

My right hon. Friend, who has a distinguished record on these matters, is right.

We face a third problem with low-carbon transition: planning, which my hon. Friends have mentioned. I am afraid that both sides of the coalition subscribe to the idea that they should abolish the Infrastructure Planning Commission. Its abolition is absolutely the last thing that we need. For years, the thing that has held up large-scale energy projects is planning. We have worked with business to establish a system to provide certainty in which directions are set by accountable politicians and specific decisions are resolved independently. Business welcomed it and the CBI said that it was

“vital for the strategic infrastructure”,

but now the Government want to scrap it. And who gets to make the decision on new nuclear plants under the new system? None other than the Secretary of State, because politicians have retaken control, but he has a policy in which even the coalition agreement does not have confidence. On the essential test of the long-term direction on climate change—on how we decarbonise our energy supply—I fear that the Government are already failing.

[Mr Betts]

I should like to raise the issue that my right hon. Friend the Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) mentioned: the proposed £80 million loan for Sheffield Forgemasters to which the previous Government agreed. Is it not vital, if we are to develop a new nuclear industry in this country, that British industry is given the best chance to compete for work in building new nuclear reactors? Is it not worrying not only that the Secretary of State for Energy and Climate Change will take the decision on nuclear, but that his right hon. Friend the Secretary of State for Business, Innovation and Skills will take the decision about the review of the grant to Sheffield Forgemasters?

[Edward Miliband]

Let me welcome you to the Chair, Mr. Deputy Speaker, and welcome you back to the House.

I agree with my hon. Friend the Member for Sheffield South East (Mr Betts), and he prefigures the next part of my speech, because the second test is whether we can show that low carbon is about not just climate change, but the future of our economy. To his credit, the Secretary of State talked about the importance of an industrial strategy.

In the last 18 months, the previous Government pursued an active industrial strategy. Four of the world’s five biggest offshore wind manufacturers all said that they were coming to Britain: Siemens, GE, Clipper, and Mitsubishi. Nissan said that it would make electric cars in Sunderland. We also created the chance to be at the centre of the nuclear supply chain through Sheffield Forgemasters. Those things happened not by accident, but because we had a plan that recognised that even in a market economy, Government must nurture new industries that the private sector will not invest in on its own.

In their manifesto, the Liberal Democrats promised £400 million of Government investment in shipyards in the north of England and Scotland, to convert them to wind energy. We no longer hear anything about that; we do not hear of it in the coalition agreement or in the Gracious Speech. It is worse than that, as was indicated in the interventions on the Secretary of State’s speech. Now the Government say that every spending decision since January will be reviewed. That includes decisions on grants to companies such as Mitsubishi to make wind turbines; port investment for offshore wind manufacturers, which is very important; money for Nissan to build electric vehicles; and the £80 million loan to Sheffield Forgemasters regarding the nuclear supply chain.

Remember, the Liberal Democrats said at the election that they agreed with Labour that spending should not be cut this year, so I have to say to the Secretary of State that this uncertainty is a total betrayal of their position at the election. They went round the country telling people that there should not be spending cuts this year; they agreed with us. People will have voted Liberal Democrat, apparently confident in the knowledge that the Liberal Democrats were with us on the question of industrial investment.

[Chris Huhne]

The right hon. Gentleman will remember that during the election campaign, quite an important event happened on the international markets: the international markets beat up a country in southern Europe called Greece, which happens to have a smaller budget deficit than that bequeathed to this Government by the Labour Government.

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[Mr Deputy Speaker (Hugh Bayley)]

Before the shadow Secretary of State replies, I remind new Members that the procedure is that you do not intervene on an intervention, even if it is a rather long one.

[Edward Miliband]

So there we have it—the Greek defence. A person may vote Liberal Democrat, but along sails the Greek defence, which means that one does not need to keep one’s promises. Promises do not mean anything from the Liberal Democrats if something happens in Greece. The Secretary of State will have to do a lot better than that.

[Rachel Reeves]

Will my right hon. Friend confirm that Greece’s debt is 110% of its gross domestic product? That is twice as high a ratio of debt to GDP as that in the UK. That, and not the budget deficit, is the important point with regard to sustainability. The budget deficits of Greece and the UK are comparable, but in terms of sustainability, the issue is the level of debt. As the UK’s debt is half the level of Greece’s, those comparisons are scaremongering excuses for policies that the Conservatives always wanted to pursue.

[Edward Miliband]

My hon. Friend gives the House and the Secretary of State an economics lecture.

[Chris Huhne]

rose—

[Edward Miliband]

The Secretary of State is obviously feeling wounded.

[Chris Huhne]

On a matter of fact, may I point out that while Governments sometimes have to refinance parts of their debt, they have to finance their budget deficit? It is the budget deficit that is scaring the markets, not the levels of overall debt.

[Edward Miliband]

The truth is, though, that since the Budget of my right hon. Friend the shadow Chancellor in March, tax revenues have been stronger and the budget deficit is lower than it was at the time of the election. The Greek defence will not do, I am afraid. The uncertainty that the Secretary of State is causing with his willingness to look again at the decisions that I mentioned is a total betrayal of the Liberal Democrats’ position at the election.

I think that we can hear the sound of old scores being settled, because the orange book, as represented by the Chief Secretary to the Treasury, is winning, and the Secretary of State, who, to be fair to him, is at the more progressive end of the Liberal Democrat party—or so I thought—has lost. I say to the Secretary of State in all seriousness that it would be the worst sort of short-termism—something that the Government are supposed to be against—to cut those investments, which are essential for the long-term health of the British economy. If he is serious about the green industrial agenda, as he said he was in his speech, it is his responsibility to defend those investments, and we will judge him on that, because those investments are essential to make Britain part of the green industrial revolution. I hope that in the coming weeks he will defend tooth and nail those investments in the green industries of the future.

[Albert Owen]

rose—

[Mr Anderson]

rose—

[Edward Miliband]

What a great choice! I give way to my hon. Friend the Member for Blaydon (Mr Anderson).

[Mr Anderson]

Does my right hon. Friend agree that part of the industrial revolution in the north-east is driven and supported by the regional development agency, another thing that will disappear under the coalition Government?

[Edward Miliband]

I agree with my hon. Friend, and that speaks to the attitude, which I hope the Secretary of State does not share, that the only thing that is needed to make our economy work is for Government to get out of the way. I do not think that that will create the economy of the future.

[Albert Owen]

I thank my right hon. Friend for the support that he gave my community and my constituency on new nuclear build, with Wylfa being one of the first in line. On planning, do we not have the worst of both worlds, with the scrapping of the Infrastructure Planning Commission on the one hand, and no planning commission or planning statement in place on the other? That uncertainty is costing business—

[Albert Owen]

It is. Business speaks to me. The Secretary of State might be talking to one company, but he has not talked to the companies that want to invest billions in my constituency.

[Edward Miliband]

My hon. Friend makes his point eloquently. The uncertainty and the scrapping of the IPC are dogma.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Does my right hon. Friend agree that industry requires not only certainty of future energy supply but—given the long-term planning and investment needed for new nuclear and related technologies—certainty and conviction on the part of the Government promoting those technologies, rather than the dithering and delay symptomatic of the new Government?

[Edward Miliband]

I agree with my hon. Friend.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does my right hon. Friend agree that if we all accept that we would like a transition towards electric cars instead of petrol cars, it will naturally breed a massive increase in the demand for electricity, which will require many more nuclear power stations? The Government do not seem to see further than their nose on this.

--- Later in debate ---

[Edward Miliband]

My hon. Friend makes a very important point: the demand for electricity is likely to increase, not decrease—even with measures on energy efficiency.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

The right hon. Gentleman delivers an eloquent speech, but would it not have much more credibility if he were to admit that the Labour party had 13 years to give us energy security and did nothing about it?

[Edward Miliband]

That is not true, because when we look at what we have achieved, in terms of the reduction in carbon emissions in this country and the transition that we have started on new nuclear, which was initially opposed by both parties on the Government Benches, we see that we are making the transition that needed to be made.

[Robert Flello]

Will my right hon. Friend give way?

[Edward Miliband]

Let me move on to the third test, because I want to allow time for people to come in.

On the third test and the key challenge to ensure that the low carbon transition is fair, we welcome the measures on pay-as-you-save energy. However, there are two matters on which I cannot find anything in the coalition agreement or the Gracious Speech, and I hope that the Secretary of State will indicate at an early opportunity that he wants to move forward on them. The first is the regulation of private and social landlords for energy efficiency. The pay-as-you-save measures are important steps for home owners, but in the past few years we have not seen among private landlords the take-up of basic measures on loft and cavity wall insulation. It should not really be a matter of partisan debate, so I hope that the Secretary of State will move on regulation, because we are talking about some of the poorest people in our society, and they are living in substandard accommodation in terms of energy efficiency.

The second issue, which again I hope is not a matter of big disagreement, is about implementing the measure on compulsory social tariffs which we passed in the Energy Act 2010. In our manifesto we said that we would provide for money off the bills of older, poorer pensioners, and the Secretary of State will want to consider the options that are available to him, but again I hope that at an early opportunity he will make good on those measures.

[Robert Flello]

Will my right hon. Friend give way?

[Edward Miliband]

Let me make one other point on fairness, and then I shall give way to my hon. Friend.

I also urge the Secretary of State, in his discussions on energy market reform, to look both at investment, which is very important, and at trying to open up the market beyond the big six energy companies, because the truth is that they control 99% of the market and it would be better for competition if we could find ways of opening it up. Ofgem has put forward some ideas, and if we had been back in government we would have wanted to push them forward.

[Robert Flello]

On my right hon. Friend’s last point, I must say that it is not only the big six energy companies that are playing the market for profit, rather than for the consideration of the final user, but the banks and traders. I listened very carefully to the Secretary of State’s speech but heard no mention of the Warm Front scheme. I have had my concerns about its operational levels, but does my right hon. Friend share my concern that, because of yet another uncertainty, my constituents and those of other hon. Members do not know whether to press ahead and see if they can obtain some funding through Warm Front?

[Edward Miliband]

My hon. Friend makes an important point. Warm Front has done a lot, and I hope that the Secretary of State, in the discussions that he will no doubt have with his colleague the Chief Secretary to the Treasury, will defend that scheme.

We do wish the new Government well in this crucial policy area, both at home and abroad, but I say in all candour to the Secretary of State, as I have said in my speech, that if they carry on as they have started, fudging key differences and papering over the cracks, they will produce a recipe for muddle and confusion, and not the long-term direction that we need. Their renewables policy does not yet add up, because they have Lib-Dem targets with Tory planning policy; their nuclear policy does not add up, because they have three positions; and on industrial policy the risk is that short-term cuts will deny us the long-term economic strength that we need.

In the months ahead, we will hold the Government to account on delivery, because it is in the interests of everyone in this country that we deliver on fairness, on jobs, on energy security and on climate change.

[Several hon. Members]

rose—