Oral Answers to Questions

Debate between Guy Opperman and Graham P Jones

Monday 21st May 2018 Commons Chamber

[Guy Opperman]

It is true that Windsor is the centre of the universe, and we should all congratulate Prince Harry and Meghan on their marriage at the weekend. It is also true that Windsor, and all parts of the United Kingdom, will benefit from the pensions dashboard. The internet has transformed travel, insurance and other businesses when they have gone online, and we believe that when the pensions industry comes out of the Victorian age and goes online, there will be great progress for everyone.

[Graham P. Jones (Hyndburn) (Lab)]

12. What assessment she has made of the appropriateness of the eligibility criteria for attendance allowance.

Domestic Energy Efficiency

Debate between Guy Opperman and Graham P Jones

Tuesday 21st October 2014 Westminster Hall

[Graham Jones (Hyndburn) (Lab)]

I believe this is the first time I have served under your chairmanship, Mr Streeter, in what I hope will be a constructive debate. I want to focus on the effect of the Government’s changes to the energy companies obligation on domestic energy efficiency and the local schemes to improve efficiency in my area. I welcome the opportunity to discuss those things with the Minister.

When the ECO was devised, the architects of the scheme aimed to improve the energy efficiency of dwellings exactly like those in Haslingden and Hyndburn. However, since the last time I spoke in the House on the subject, the help provided for home energy efficiency has been significantly reduced. In terms of energy efficiency, Hyndburn has some of the poorest-quality housing stock in the country, with 45.1% of all dwellings built before 1919, which is well above the English average of 23.6%. Terraced properties of that age tend to have hard-to-treat cavities. It is estimated that 90% of such stock has a cavity of some sort that can be insulated, but doing so is costly and requires a subsidy. Because of the age of the stock in Hyndburn, 50.2% of category 1 hazard properties are so designated because of excess cold, and for category 2 hazard properties the figure is a staggering 78.5%. The housing health and safety rating system states:

“If the score produces a Category 1 hazard, for example if there is a high risk of serious health implications”—

such as damp—

“from exposure to cold then the Authority have a duty to take action. If there is a Category 2 hazard, for example there is risk that exposure to cold may have an adverse affect on health, the Authority may take action.”

Hyndburn borough council therefore has a duty to take action on properties where excess cold is a category 1 hazard, but such is the scale of the problem that that legal duty cannot simply be a matter for a small district council.

My constituents face having to live in homes that were designed a century ago, with no thought for thermal efficiency. Hyndburn borough council undertook a comprehensive housing condition survey in 2009, which noted that the rate of thermal comfort failures was 24.5%, compared with an English average of 18.3%. My constituents, therefore, are the very people to whom the ECO can offer most, but Hyndburn borough council’s warm homes energy company obligation scheme has come under threat before it has even begun in earnest. Moreover, the businesses in the green economy in my constituency that were innovating and creating jobs as a result of the ECO are now concerned about their futures. Indeed, 49 of the 149 schemes nationally have been cancelled.

As I have said, nine out of 10 stone terraced properties of the sort that are prevalent in Hyndburn have hard-to-treat cavities that would benefit from the ECO. For that reason, the ECO presented a particularly welcome opportunity to my constituents and to local councils across east Lancashire to tackle insulation, fuel poverty and the UK’s climate change obligations. The most recent Government statistics state that 5,088 households in my constituency are living in fuel poverty, which equates to some 13.1% of homes. On the alternative measure, which is based on the number of households forced to spend more than 10% of their household income on energy, there are 6,712 such households. The fact that 17.3% of households struggle to heat their homes is a tragedy, and it comes as no surprise that the poor live in the older terraced stock. There is a direct link between the age and condition of the housing stock and the high levels of fuel poverty in my constituency.

I raised that issue in the Energy Bill Committee in June 2011, and the then Minister, the right hon. Member for Bexhill and Battle (Gregory Barker), told me that the ECO would

“play a huge part with regard to harder-to-treat properties.”––[Official Report, Energy Public Bill Committee, 14 June 2011; c. 199.]

My question to the new Minister is simply this: what has happened to that aspiration? Is it still an aspiration, or was it only ever an aspiration? My constituents would be right to feel let down by the Government’s domestic energy efficiency policies.

As I have indicated, my constituency has an incredibly high number of hard-to-treat properties. Plenty are in the private rented sector, where there are excessive problems, and many are owner occupied. Thanks to the roll-back of the ECO, my constituents who are in most need will miss out. When that is coupled with the Government’s record on place-based housing regeneration, the outlook is depressing.

Even more galling is that despite the Prime Minister’s claim that cutting levies would save consumers £50 on their energy bills, four of the big six energy companies refused to pass on the full £50 reduction to customers on fixed-price deals. Not only did those customers not receive insulation, but they did not receive that discount, lamentable though it is in comparison with the savings that would result from energy efficiency measures. In January this year, the former Minister, the right hon. Member for Bexhill and Battle, said that for the energy companies not to pass on the full savings to consumers “would not be acceptable”. However, no action has been taken to ensure that the 3.8 million people on fixed-price deals do not miss out on that saving.

In response to the consultation on the future of the ECO, the Government openly stated that energy companies were

“likely now to be in a position to make greater savings than they had originally projected in December”.

When the Government make no effort to recoup those savings for consumers, the result is more money for the energy companies. In attempting to kick the long-term problems of the cost of energy, market failure and domestic energy efficiency into the long grass, the Government have effectively cut the energy companies some slack, with no noticeable reduction in prices for millions of people and at the cost of thousands of much-needed domestic energy efficiency projects, such as those in my constituency.

[Guy Opperman (Hexham) (Con)]

I apologise for missing the first two minutes of the hon. Gentleman’s argument, and I congratulate him on securing this important debate during energy week. Although great progress is being made, I accept that there are gaps that the Government need to address. The hon. Gentleman is talking about cavity wall insulation, but surely his constituents would be entitled to and eligible for boiler replacement under the affordable warmth element of the ECO.

[Graham Jones]

Yes, they would, but the terraced properties in my constituency seep heat. We need to look at energy conservation; it is not enough simply to lag the loft. There is no point in having a new boiler without also implementing a range of measures to capture the heat that it generates. If we continue to allow heat to flow out of stone terraced properties with semi-solid walls, we do a disservice to those properties. They will remain energy-inefficient. I accept that there are some modest improvements that can be made, but the main beneficiaries of insulation and energy efficiency improvements will be householders who live in properties with hard-to-treat cavities.

Another point that has seemingly been absent from the debate on the changes is that the energy companies’ revenue streams are protected by inefficient, uninsulated houses. Rather than reducing the use of gas through greater energy efficiency, the energy companies have a perverse disincentive to support energy efficiency because they are making profits from selling so much gas to my constituents.

There is concern in the cavity wall insulation industry about the effects of the changes. Isothane, a company in my constituency that produces cavity wall insulation, stated to me recently that the cavity wall industry is effectively “at a standstill” due to the changes. That was after the company had prepared itself for increased demand under the ECO. The carpet was pulled from under the company after it had been encouraged to be part of the green revolution. Job losses across the industry, which has a strong base in the north-west, make for sad reading.

Twelve jobs have been lost at Isothane Ltd in Accrington in my constituency, which I have been told may have a further impact, with job losses in Dukinfield in Manchester. There have been job cuts at Viscount Insulation in Blackburn and Castleford. There have been 85 job losses at Home Insulation Services in Preston, and 600 jobs went this summer at Domestic & General Insulation as a direct result of the Government’s policy changes. Many smaller companies have also laid off workers whom they had previously hired after the Government talked up the demand that would be created by the ECO and green deal schemes. I am afraid those job losses will not be the last. The majority of people in the UK would rather know that the levies are supporting a growing green economy and creating long-term financial and environmental savings, rather than simply being handed back to the energy companies without cast-iron guarantees that they will be passed on fully and without exception.

[Guy Opperman]

Before the hon. Gentleman concludes his speech, I will give him a slightly contrary view. In my constituency in Northumberland, which has similar properties—old stone buildings—the expansion of the energy sector is something that I welcome and applaud. Organisations such as the Centre for Green Energy and the multitude of biomass and other green and diversification suppliers are showing that there is a future for that type of energy.

Cost of Living

Debate between Guy Opperman and Graham P Jones

Wednesday 27th November 2013 Commons Chamber

[Guy Opperman (Hexham) (Con)]

The cost of living is a legitimate subject for debate. I was interested to hear Ross Smith of the North East chamber of commerce comment on the solution:

“My answer to this is ‘it’s skills, stupid’—alas that doesn’t fit with easy election messages or election cycles.”

To be fair, that was a tweet, playing on Bill Clinton’s famous line in 1992 that, “It’s the economy, stupid”, so I asked Ross to expand on it yesterday as part of my consultation in preparation for this speech. He said that

“the most important factor in raising living standards in the long term is to increase skill levels so that people can play a more productive part in a stronger economy and be rewarded accordingly.”

I could not agree more.

To that end, we must look at apprenticeships, which surely can play a key part in any skills regeneration. The north-east is clearly leading the way. The number of apprenticeship starts in the north-east has increased by 11% since 2010-11, to 38,340. That was up from 18,510 in 2009-10 and 13,500 in 2005-06. In other words, it has trebled since the Blair Government. In my constituency, the number of apprenticeship programme starts has gone from 430 in 2009-10 to 690 in 2012-13.

Of course, it is not just about the number of apprenticeships; it is also about their quality. To that end, I am delighted that the Government have decided that one of the skills pilots will be in the north-east. In fact, it was the North East local enterprise partnership and the Adonis review that suggested the skills pilots that will go ahead. It is to be joined by the Stoke-on-Trent and Staffordshire LEP and the West of England LEP. It is a chance for businesses to engage with their skills and apprenticeship needs so that there is a focus on the particular parts of the economy where growth in jobs is needed in the long term.

There is ample evidence of the successes, whether the opening of the engineering academy in Hexham by Egger, with 40 jobs created, the work done by Nissan, the 38 new jobs in the IT sector, the new apprenticeship jobs in Accenture, whose managing director came to see me yesterday, or the work done by Siemens, particularly in relation to the university technical college in Durham. I strongly hope that the LEP will carry that forward in such a way that the Adonis report will have a true impact.

One cannot address the economy, certainly in my region, which has 2.4 million people, without looking at the Adonis report. No other region in the country has addressed its strengths and weaknesses as the north-east has with that report. It was business led, written by experts, apolitical, hard hitting and realistic. It assessed both the strengths of the local area and the weaknesses. It celebrated assets but acknowledged that there have been successive failures, by successive Governments, to improve job numbers, address skills deficits, increase university starts and generally grow the economy. I am profoundly grateful to all its authors.

At the report’s heart lay a desire for more and better jobs, as it identified the crucial lack of private sector employment. However, as it states:

“More jobs alone will not re-balance the economy. The North East needs higher skilled and higher paid jobs to produce an economy which matches others and provides the quality of opportunities that its residents and young people need to prosper.”

How do we proceed to do that? We must support the necessary investment in apprenticeships, build on the skills pilots and consider the recommendations in the Adonis report—I will not repeat its 24 pages, Madam Deputy Speaker, despite the Irn-Bru you saw me have at the Scotland Better Together event earlier. The seven local authorities must be allowed to go forward. They are coming together and driving forward with a regional voice to match the likes of Manchester which has led the way so well in these matters in the past.

I cannot finish without addressing the motion. On the proposed energy price freeze, I entirely endorse the comment from my hon. Friend the Member for Tamworth (Christopher Pincher) that one should always be wary of geeks bearing gifts. I accept that there is a need for long-term housing supply, but it is a shame that my two Labour authorities are keen to build on the green belt, rather than on the other available sites. I would certainly support action for young people, but it is this Government who have trebled the number of apprenticeships and set up the welcome north-east skills pilot. I find it very easy, therefore, to reject the motion.

[Graham Jones (Hyndburn) (Lab)]

The hon. Gentleman referred a moment ago to brownfield sites in urban areas, but does he accept that not every brownfield site is economically viable, and is he aware of his local authority’s assessment of brownfield sites and their economic viability? Perhaps he could give some figures on the viability of the sites in that area.

[Guy Opperman]

I could speak for an hour, and have done so on several previous occasions in the House, on Labour-run Northumberland county council’s failure to provide brownfield sites and its proposal to build on the green belt, whether around Ponteland, Hexham or other sites in Northumberland. Alternatively, there is Newcastle—again a Labour council—which is proposing massive building on green-belt land. We campaigned extensively against the building of more than 10,000 houses on that land.

[Graham Jones]

Does the hon. Gentleman also accept that building on greenfield sites is sometime cheaper and so provides for affordable accommodation, and that brownfield sites, particularly contaminated brownfield sites, can be comparatively very expensive?

[Guy Opperman]

I have no doubt that building on contaminated brownfield sites can be difficult, but in my constituency, for example, the police authority has sold the site of a former police station that could be built on perfectly properly. For 20 years, taxpayers—that includes the hon. Gentleman and me—paid more than £1 million to keep the former Stannington hospital site secure, yet nothing was built on it. We now have former government sites being built on and providing homes, but of course that is not green belt. He was keen to make his point about brownfield sites, but he also spoke about greenfield sites. We have huge difficulties in the north-east with investment in and building on greenbelt sites by local authorities.

I have gone on too long and been distracted—