Biomass Power Generation

Debate between Guy Opperman and Nigel Adams

Wednesday 20th March 2013 Westminster Hall

[Guy Opperman (Hexham) (Con)]

Everyone here would agree that the fundamental concept of biomass is a good thing. There can be no objection by any Member of Parliament or any constituent to the fundamental principle and support for it. However, as always with Government policy, including in the three years that I have been in the House, the consequences are not always what we would wish to see. I am faced with a situation—this is the third Minister in three years whom I have addressed in relation to biomass subsidy—whereby, on the one hand, the standard person who is buying timber, whether it is a furniture maker, someone doing wood panelling, a caravan maker or any other person using timber in any way, shape or form in this country to run any kind of business whatever, buys at a price that is unsubsidised by the Government. On the other hand, energy companies that wish to purchase timber in this country for use in a biomass energy plant are subsidised to a large and significant degree by the Government.

The consequences are very clear. First, the timber price goes up. Secondly, the energy companies have a competitive price advantage, which allows them to purchase timber at a cheaper rate than all other purchasers in the country. Every single person, save for an energy company, gets a different price. That, from a Conservative coalition, I find illogical and hard to believe, given that we are meant to be a free-market-based organisation. The reality is that the subsidy is distorting the market, raising the price of timber and, I regret to say to my hon. Friend the Minister, posing a severe threat not just to the wood panel industries, but to any utiliser of wood in this country.

[Nigel Adams]

I have the utmost respect for my hon. Friend. I just wonder whether he can tell me of a significant power generator in the country that is buying its timber to be pelletised from sources within this country.

[Guy Opperman]

In accordance with the time-honoured traditions of the House, I shall be delighted to write to my hon. Friend and give him chapter and verse. The honest reality is this: I cannot give him chapter and verse right now. However, he will be fully aware that there are only two places where a biomass energy company can purchase its timber product. It can come from this country—we have 12 million tonnes of timber, and a large proportion is going to British-based energy companies—or it can be obtained from overseas. My hon. Friend is making faces from a sedentary position along the lines that he disagrees with me. I manifestly do not accept that. In fact, I will definitely make the case—I would be interested if the Minister could comment, because he is very informed—that if there is in reality no energy company in this country creating biomass that is utilising—

[Nigel Adams]

rose—

[Guy Opperman]

I will not give way any more. The situation surely is this. On any interpretation, if there is no energy company in this country that is utilising domestic wood—

--- Later in debate ---

[Nigel Adams]

Significant.

[Guy Opperman]

If there is none or no significant one, why is a subsidy needed? If there is no utilisation, that is all the more reason why the Minister should take the dramatic point of view that we should get rid of the subsidy. With no disrespect, the energy companies cannot have it both ways. They cannot say, “We need a subsidy to buy timber in this country; that subsidy is to help us,” and, alternatively, “We don’t use it, so we don’t need the subsidy.”