Oral Answers to Questions

Debate between Huw Irranca-Davies and Lord Barker of Battle

Thursday 16th January 2014 Commons Chamber

[Gregory Barker]

My right hon. Friend makes a very good point. The coalition has put new emphasis on tackling the deep problem of fuel poverty in rural areas. We are looking at this with renewed vigour and will come forward with further improvements to our fuel poverty schemes to ensure they reach those who need help in rural areas.

[Huw Irranca-Davies (Ogmore) (Lab)]

Precisely how many measures have been installed under the energy company obligation or the green deal among those special rural sub-populations and off-grid users?

[Gregory Barker]

I am afraid I cannot off the top of my head give the specific figure, but I will happily write to the hon. Gentleman with it and make it available to the rest of the House. I can tell hon. Members, however, that we are doing, and are determined to do, much better than the previous Labour Government.

Energy Price Freeze

Debate between Huw Irranca-Davies and Lord Barker of Battle

Wednesday 6th November 2013 Commons Chamber

[Gregory Barker]

Thank you, Madam Deputy Speaker. The fact is that Opposition Members make a lot of noise because they abhor the market, consumer choice and the fantastic SMEs that are rising to the challenge. Labour wants to go back to expensive state monopolies, close the door on innovation and close the door on SMEs, and hand it all to the big six on a plate.

Sadly, as has been demonstrated in spades in the Chamber today, Labour Members, while tapping into the genuine public concern about the cost of living—a concern we all share right across this House—have responded to that concern with political trickery, cheap soundbites, and policy that, sadly, is just a con: a price freeze con. It was very telling that despite repeated questioning neither the shadow Secretary of State nor the shadow Minister could name a single independent energy supplier that supported their price freeze con—not a single one. As Member after Member has pointed out, not only do Labour Members know they cannot guarantee to deliver such a freeze, but the long-term net impact of trying to rig the market with clumsy, 1970s-style state intervention would be to hurt—

[Huw Irranca-Davies (Ogmore) (Lab)]

rose—

[Gregory Barker]

The hon. Gentleman did not actually speak in the debate.

The net impact would be to hurt the fuel-poor, to hit hard-working people, and to clobber families and pensioners on tight budgets. We are not in this for 20 months; we are in it for the long term. For the first time in 13 years, we have a Government who are planning and taking decisions in the long-term interests of British consumers.

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[Gregory Barker]

They have hiked them before and they could hike them afterwards.

The long-term impact of the freeze would be to decimate investment and to drive away consumers. The very-long-term secure energy supply we are trying to build would vanish at a stroke, and the poorest and the most vulnerable would pick up the price tag. We know that Labour Members cannot freeze prices—it is a con to suggest that they can—but, as we heard again and again today, they would succeed in freezing out competition, choice and investment.

[Huw Irranca-Davies]

Will the Minister give way?

[Gregory Barker]

No, I will not.

For 13 years, Labour Members presided over the energy sector. For 13 years, they dithered and delayed over crucial investment. In the previous Parliament, fuel poverty rose every single year—something we did not hear from the Opposition Benches. For 13 years, they presided over unprecedented corporate consolidation, creating the real lasting Labour legacy—the big six. It is a cheek for Labour Members to say that we are the friends of the big six when in fact they picked their ministerial team from the big six. Is it not a fact that the leader of the Labour Front-Bench team in the House of Lords is the former head of government affairs at SSE—its top lobbyist? Labour Members are not just friends of the big six and they did not just create the big six—they recruited their team from the big six, so we will hear no more from them on that.

For 13 years, Labour Members let real competition wither while consumers were bombarded with a blizzard of tariffs that, under their watch, grew to over 400. For 13 years, they failed to simplify bills and increase transparency. For 13 years, they failed to build the foundations of a safe, clean energy future. For 13 years, they failed to build a single nuclear power station or get an agreement to do so. For 13 years, they saw Britain languish at the bottom of the European league table for deployed renewable energy. Labour Members stood by and watched British energy go bust. Now they want another go, but we have not finished undoing the damage they did last time.

Feed-in Tariffs

Debate between Huw Irranca-Davies and Lord Barker of Battle

Monday 31st October 2011 Commons Chamber

[Gregory Barker]

My hon. Friend is right, and in fact the cost of some systems has fallen by much more than 30%. Bloomberg estimates that the cost of some of them has fallen by more than 50%—indeed, by up to 70%. This is not a United Kingdom phenomenon; prices have tumbled spectacularly throughout Europe. However, because of the ineffective system that we inherited from the Labour party, there was no way in which tariffs could keep pace with that.

[Huw Irranca-Davies (Ogmore) (Lab)]

The last fast-track of the solar feed-in tariff was derided because nothing—I repeat, nothing—changed as a result of the consultation. This consultation will end after the date of the start of the new scheme. May I ask the Minister, in all seriousness, what impact assessment he has made in relation to the number of community schemes that are currently in progress but will not proceed as a direct result of his proposals and the 12 December deadline?

[Gregory Barker]

I am grateful to the hon. Gentleman for his question, because it was he who accused me of butchering the industry after the last review. Since then, deployment has trebled. He was wrong earlier in the year, and he will be spectacularly wrong again. He will know that because of the way in which the system was set up under the—[Interruption.] If hon. Members will calm down slightly, I will answer their question. Perhaps they will allow me to get the words out.

The fact is that the way in which the system was constructed—[Interruption.] I am trying to give the answer. Because of the way in which the system was constructed, there is no way of rewarding community schemes. There is no tariff for communities. There is no way of distinguishing between a City hedge fund manager and a village hall because of the way in which the system was constructed by the last Government. We will try to change that so that we can specifically recognise community schemes, and we will consult on that work.

Oral Answers to Questions

Debate between Huw Irranca-Davies and Lord Barker of Battle

Thursday 24th March 2011 Commons Chamber

[Gregory Barker]

Community-based projects that are larger than 50 kW—about the size of two tennis courts—and up to 150 kW, which is significantly larger, will still get a tariff comparable to that paid in Germany. We should be competitive with Europe, and the pressure should be on manufacturers to reduce the cost of their products rather than to provide bonuses. We hope that many community projects, particularly those around the 100 kW size, will still be able to go ahead, but the pressure must be on manufacturers to bring down their prices.

[Huw Irranca-Davies (Ogmore) (Lab)]

The Minister has single-handedly destroyed the confidence of the solar sector and the wider renewables sector at a stroke, and personally shredded the Government’s green credentials. The Renewable Energy Association says that the industry has been “strangled at birth”. Sharp’s in Wrexham states that this was

“terrible news—effectively destroying the solar sector”.

The Solar Trade Association calls the decision “a total disaster”, and the Micro-Power Council says:

“The 50 kW plus sector may well wither on the vine: many jobs will go and businesses will see demand dry up.”

Is it not just sheer blind arrogance for the Minister to suggest that all those bodies are wrong and that only he is right?

[Gregory Barker]

The fact is that we inherited a complete pig’s ear of a scheme from the previous Government. The hon. Gentleman and the hon. Member for Hackney South and Shoreditch (Meg Hillier) voted against the scheme in 2008, yet they are now the heroes of the feed-in tariff. We have put in proper financial controls and the investment that will guarantee the system for the long term. I would have thought that, having driven the country into the ground, Opposition Members would be more financially prudent, but behold, on the Opposition Front Bench—

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[Huw Irranca-Davies]

Thank you, Mr Speaker. I can understand why the Minister is getting so agitated. I have only one more thing to add. Does he at least agree with this eminent expert on the importance of projects of up to 5 GW, who says:

“The idea behind it is to allow the inclusion of non-commercial scale projects, such as those that will be installed by homeowners, small businesses, local authorities, community groups, farmers and others. That would help out hospitals and schools that want to facilitate greater use of renewables and ensure low emissions as part of our 2020 targets.”—[Official Report, 18 November 2008; Vol. 483, c. 144.]

Those are the words of the Minister of State, Department of Energy and Climate Change, the hon. Member for Wealden (Charles Hendry), then the shadow Minister. Why is he wrong on this as well, and why is the Minister of State the fount of all knowledge?

[Gregory Barker]

Not for the first time, the hon. Gentleman has his numbers wrong: it is not 5 GW, but 5 MW—and 5 MW is still the equivalent of heating 1,500 homes. The fact of the matter is that the scheme we inherited from the previous Government—[Interruption] If the hon. Gentleman calms down, he will have the answer. Given the scheme we inherited, we had some choices to make: we supported either people in their homes, small businesses and communities or very large-scale schemes. We decided to support home owners and consumers; the hon. Gentleman can support big single investors. As I say, it is a clear choice.

Oral Answers to Questions

Debate between Huw Irranca-Davies and Lord Barker of Battle

Thursday 10th February 2011 Commons Chamber

[Gregory Barker]

I think I can reassure my right hon. Friend that his concerns are misplaced, and that the ministerial team is absolutely united in supporting an ambitious roll-out of renewables. The current feed-in tariff scheme for microgeneration would add something like £8 to the total energy bill of the average household by 2030, which means that it is not getting out of control in any way, shape or form. However, we have to be prudent.

[Huw Irranca-Davies (Ogmore) (Lab)]

Labour’s feed-in tariffs have created thousands of green jobs and real growth in the nascent microgeneration power sector, which now hang in the balance because of the Government’s panicked response to the narrow issue of solar parks. They are bringing forward an early review that throws the healthy baby out with the bathwater, jeopardising schemes for community housing, hospitals and schools. When the Secretary of State stood on the doorstep of Sharp in Wrexham a fortnight ago and announced the potential for 300 new jobs in British solar photovoltaics manufacturing, had he already made the decision to cut the legs away from under the emerging solar manufacturing and installation industry? Did he tell the managing director and the work force?

[Gregory Barker]

We know that the Labour party is a party of deficit deniers, who are in denial about their record. They are obviously also in denial about the potential costs of unchecked solar. We want to create a sustainable framework for long-term investment that is good for the industry. That is why we are fast-tracking the review and will improve the imperfect system that we inherited from Labour to make a much safer and securer platform for long-term green growth.

Oral Answers to Questions

Debate between Huw Irranca-Davies and Lord Barker of Battle

Thursday 16th December 2010 Commons Chamber

[Gregory Barker]

The greening campaign in my hon. Friend’s constituency is an excellent initiative. As he knows, community engagement in the energy sector will be vital to our vision of the development of energy in the UK in the coming decades. We are helping communities to access the planning system more effectively through the Localism Bill and giving them more information and advice with the new community energy online website. The finance mechanisms that we are putting in place with feed-in tariffs and the renewable heat incentive will be a great help.

[Huw Irranca-Davies (Ogmore) (Lab)]

In response to my question in the last DECC questions, the Minister suggested that all was light and joy in the photovoltaic sector and with the feed-in tariffs. Within days, however, he had called the sector in for an urgent meeting. Speculation is rife that he will rush forward a review, and the headlines shout, “Clouds gather over solar park gold rush”. If there is a genuine problem, why does not the Minister stop denying it, stop passing the buck and get on and fix it? After all, that is what he is paid for.

[Gregory Barker]

The hon. Gentleman is absolutely right—we inherited a real mess from the last Government with ineffective legislation. Just as with the national debt, it falls to this coalition to clear it up. I took action—I did not dither—and I have called in the industry. We will put a stop to the gold rush that might have developed as a result of Labour’s lousy legislation. We will not allow large speculators in field solar to soak up available funds that are intended for community and household projects.

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[Gregory Barker]

Absolutely. We had to take a tough decision on the CRC to end revenue recycling, as a direct result of the state of the public finances we inherited. We are talking closely with business and will be having further discussions in the new year to ensure that it remains an efficient measure of driving forward energy efficiency in businesses. We believe that there are billions to be saved in the private sector in that way.

[Huw Irranca-Davies (Ogmore) (Lab)]

This week, the Secretary of State was quoted as saying that he does not mind being seen as the Tesco of energy policy, with more for less—being greener for less. Tesco, however, is one of the organisations that will be stung by the changes to the CRC that have, in effect, made it a crude stealth tax for the Chancellor rather than an intelligent driver of energy efficiency. How did Ministers surrender their green credentials to the Treasury so easily and what does this stealth tax—described politely as a “bit of a bombshell” by a local government spokesman—mean for the public sector as well as for the private sector?

[Gregory Barker]

The hon. Gentleman is in denial about the appalling state of public finances that we inherited from the previous Government. Yes, the coalition is taking action to reduce the deficit—absolutely. That is why we are not the basket case that we would have been had the Labour party remained in Government. The CRC will help to drive energy efficiency. We know that about £1.6 billion is still paid by large companies in the UK as a result of energy inefficiency and we hope that this measure, which will become more effective, will help to drive greater efficiency in UK plc.

Oral Answers to Questions

Debate between Huw Irranca-Davies and Lord Barker of Battle

Thursday 11th November 2010 Commons Chamber

[Gregory Barker]

Feed-in tariffs are available to everybody, regardless of income, and there are some innovative market solutions and offers that allow people to access those technologies without needing any up-front capital. However, it is up to the market to bring forward such solutions, and for Government to create the environment in which the market can do so.

[Huw Irranca-Davies (Ogmore) (Lab)]

The influence of the Secretary of State’s visit to China has already been evidenced this week, as the Department for Energy and Climate Change announced its five-year plan to coincide with the fourth five-year plan of the People’s Republic of China. We are all state planners now.

In respect of small-scale renewables and feed-in tariffs, I note that solar power did not receive a single mention—not a single word—in DECC’s five-year plan, so will the Minister now admit that, on his watch, feed-in tariffs will be withdrawn from photovoltaics? What does he say to the pioneers and early adopters of that technology now that the sun is going down on photovoltaics?

[Gregory Barker]

I am very sorry that the hon. Gentleman should commence his career on the Opposition Front Bench shadowing this Department with a completely false scare story. It is completely untrue. We are absolutely committed to solar PV and to the widest range of domestic and community-scale renewables, but the fact is that we inherited a system that simply failed to anticipate industrial-scale, stand-alone, greenfield solar, and, although we will not act retrospectively, large field-based developments should not be allowed to distort the available funding for roof-based PV, other PV and other types of renewables.

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[Gregory Barker]

Not when I last checked.

I am afraid there is a fundamental difference of approach between the coalition and my right hon. colleague. [Hon. Members: “Colleague?”] My right hon. Friend. I beg his pardon. The feed-in tariffs have to be seen as a key element of our policies to drive a decentralised energy revolution. If we decentralise energy production, it will have a large number of knock-on effects. It will engage communities and householders, who will become more responsible in the energy economy and take up opportunities that are currently not available to them in an old, 20th-century style of energy provision.

[Huw Irranca-Davies (Ogmore) (Lab)]

To realise the carbon budgets, I make an appeal to the hon. Gentleman. He is a reasonable and intelligent man, I will give him that, and, despite the mixed messages, he understands the importance of new nuclear energy to the UK’s carbon reduction strategy. Will he go back to his Treasury colleagues and argue the case again for Sheffield Forgemasters, if only for the carbon reductions, for making the UK a world leader in nuclear build and the export of green jobs and technology, and for the sake of the right hon. Member for Sheffield, Hallam (Mr Clegg)? Just do it.

[Gregory Barker]

Really, is he still banging on with the first half-year’s crib sheet? I thought the hon. Gentleman had come with some fresh material.

We are absolutely committed to a thriving nuclear industry, not just for the domestic sector but for export opportunities. Participants in the industry to whom I talk are very confident about the outlook for the British nuclear industry.

Oral Answers to Questions

Debate between Huw Irranca-Davies and Lord Barker of Battle

Thursday 16th September 2010 Commons Chamber

[Huw Irranca-Davies (Ogmore) (Lab)]

5. What recent discussions he has had on the Government’s strategy for promoting low-carbon technologies.

[The Minister of State, Department of Energy and Climate Change (Gregory Barker)]

On 27 July, my right hon. Friend the Secretary of State delivered the first annual energy statement to Parliament, which set out the Government’s strategic energy policy. Catalysing private sector investment in new low-carbon technologies is a crucial part of our strategy. My most recent discussions in the sector, specifically in the area of new technology, took place last Wednesday and were with the chief executive of the Energy Technologies Institute.

[Huw Irranca-Davies]

I thank the Minister for that response. We all want to catalyse the private sector, and he will know of the potential for tens of thousands of jobs in the wind turbine manufacturing sector. However, he will also know that European ports are wooing British and other manufacturers to settle in them, particularly as a result of the uncertainty over the offshore wind infrastructure competition. Can he guarantee us that that competition will be opened, in order to provide manufacturers with the certainty that there is a future for locating their base here in Britain, not in European ports?

[Gregory Barker]

I can assure the hon. Gentleman that the new coalition is absolutely committed to making sure that we capture far more of the manufacturing supply chain associated with the expansion of offshore wind power than was the miserable case under the previous Government, when 90% or more of this was manufactured overseas. I cannot comment on any specific spending programmes ahead of the comprehensive spending review, but I can assure him that offshore wind power and capturing the opportunity right the way down the supply chain is at the heart of our policies.