Ian Lavery
Main Page: Ian Lavery (Labour - Blyth and Ashington)
Mr Steve Brine (Winchester) (Con)
Thank you very much, Madam Deputy. I shall be speedy.
It is a great pleasure to contribute to this debate and to be part of the Government who have brought this landmark—I do not use that word lightly—Bill before the House. I am sorry to return to this point, but I agree with the shadow Secretary of State on one thing: climate change is too important to be kicked around. That is why her kicking it around was so very disappointing. I support the Bill, and I hope the Opposition come through the Lobby with Government Members this evening. They are very welcome to do so.
I wanted to speak on Second Reading because the Bill has the potential to be truly transformative. Let me make it clear, however, that I am not writing a blank cheque. The Bill is seriously radical and very welcome, but it could be better, and I shall try to explain how.
I was adopted to fight the general election in Winchester back in November 2006—a long time ago. At that time, Al Gore’s Oscar-winning film, “An Inconvenient Truth”, was absolutely everywhere except Winchester. One of the first things I did was to get it shown at the excellent small, independent Screen cinema in Winchester. The response to the film was overwhelming, proving once again to anybody who does not know the great city of Winchester just how important the green agenda, the fight against climate change and the drive for a low-carbon economy are to my constituency and the people whom I now represent. I should declare an interest in that I have long since been signed up to that agenda, but I love the commitment of many of my constituents to handing a cleaner, greener and better environment on to the next generation, and I back it wholeheartedly.
It was therefore hugely to my satisfaction that in opposition my party developed plans for the green deal and many of the measures in the Bill. I remember welcoming to Winchester my right hon. Friend the Member for Arundel and South Downs (Nick Herbert), then the shadow Environment, Food and Rural Affairs Secretary, to help to explain the green deal to the good people of Hampshire—and a good job he did of it too. He described the policy as a game-changer, and he was not wrong. He is not alone in using that expression, as we have heard in the debate.
The Conservative manifesto was succinct on the subject, stating that:
“we will create a ‘Green Deal’, giving every home up to £6,500 worth of energy improvement measures…paid for out of savings made on fuel bills”,
and the coalition agreement reaffirmed the two parties’ shared commitment to the policy. I am pleased that that part of the coalition agreement will not be reopened.
The green deal was a positive policy to sell as a candidate in the general election. It was one of those rare beasts in politics, because everyone who heard about it saw the logic of it, and no doubt thought, “Why didn’t I think of it?” including the Labour party, which might explain its reaction to the Bill.
I outlined the policy at a special hustings meeting purely on the environment—we had only 12 hustings meetings. The meeting was organised by Winchester Action on Climate Change, to which I pay great tribute. As I said at the meeting, what I like about the green deal is that it replaces the stick with the carrot. All too often, changing behaviour to reduce our carbon footprint is about what we must stop doing, and about how awful we are for living our lives, having children and so on—finger-wagging at its worst—but the green deal is different. Yes, it is a game-changer, but I would prefer to describe it as a no-brainer. To my mind, it changes behaviour and reduces carbon footprints the easy way.
Ian Lavery (Wansbeck) (Lab)
Does the hon. Gentleman agree that the introduction of the green deal in its current form will hit the poorest hardest?
Mr Brine
I do not agree, and I will come on to why not.
On the economic case for the green deal, I am clear that the Bill is about growth as much as it is about saving energy and reducing carbon emissions. As we heard from the Secretary of State, the Bill, and the green deal it ushers in, will create in legislation a whole new market, which, as we know, does not happen every day. We heard from him about the tens of thousands of new jobs in the green economy that these measures will create. We should remember that these are new jobs in the private sector, many of which will, we hope, be in small and medium-sized enterprises. I hope therefore that Ministers will keep SMEs at the forefront of their minds at all times as the green deal is developed and rolled out. The industrial opportunities that the green deal presents for some of the big guys, such as John Lewis, B&Q and Asda—I have nothing against them—are great, but I am keen to ensure that the small guys are centre stage and can use the new marketplace as a springboard from which to grow their businesses and employ new people as the green deal comes on line.
In addition to the jobs that I hope will be created as the green deal develops, we will undoubtedly see a fast-growing industry for training. I am fortunate to have one such training company in my constituency—New Career Skills on the Chandler’s Ford industrial estate. The Prime Minister visited NCS while he was Leader of the Opposition and rightly praised its work in training and retraining college graduates and career changers alike in the green profession. The company offers insulation training as well as training in renewables, and is exactly what we need to make the green deal a reality on the ground. I am told that NCS receives thousands of new inquiries every week via its website, but can enrol only a limited number of new students. The Government need to help that business to grow and to up its operation significantly if the green deal is to have the skilled technicians needed to make it work and credible.
NCS told me, as it told the Prime Minister, that many students struggle to raise the funds necessary to take the course and gain the qualifications. As a provider of this key training, it provides finance, but as a small business it is obviously limited in the number of loans it can underwrite on behalf of those students. The Government have urgently to consider the support available, because this sector needs to grow, and if we are to train enough skilled people—legitimate concerns have been expressed in the Chamber about who they are and where they will come from—to ensure that the green deal reaches critical mass and matches Ministers’ obvious ambition, companies such as NCS will be important.
I want to say a word about the third sector and local councils. There is an organisation in my constituency called GreenWin, which sits as part of Winchester city council’s climate change programme, and could be a lean and highly efficient vehicle to drive the green deal in the area I represent. I pay tribute to a constituent of mine, Rob Veck from Colden common, who lives in a house we could call “green deal-plus”—although even that would be an understatement—and who is doing so much to make GreenWin happen. Critical to GreenWin’s success is building a district-wide network of affiliated suppliers and installers. The idea is simple: to build a database with moderated customer feedback that acts as a quality check on the delivery of the green deal. It is 100% community based and is big society-plus with bells on. However, GreenWin has been extremely frustrated by funding issues. I urge Ministers to engage with such groups, which is why I appreciate, and will take up, the Minister’s offer to meet GreenWin through me.
The role of the new green deal assessors is important to the roll-out of the green deal. However, it is not clear to me, and many others, how these GDAs will make a living. Logic suggests that they should be independent—similar to independent financial advisers—but I would appreciate a lead from the Minister, perhaps in Committee, on how they will operate, and on how we can ensure that they will not be cut out of the green deal by the big boys.
I want to touch briefly on the eligibility criteria for green deal homes, and place on record my thanks to Ministers for clarifying, as they did in Department of Energy and Climate Change questions in March, that the green deal will apply to park home residents, if they have an appropriate energy meter and qualify under the normal rules. Park home residents in Winchester and Chandler’s Ford have expressed to me their grave disappointment about how the Warm Front scheme cut them out, and they are very pleased, as is their Member of Parliament, that the green deal will apply to them.
I promised to say where the Bill could be stronger, and I would welcome Ministers’ responses, either today or in Committee, to my suggestions. The Government will be aware that many, including the organisations that make up the Stop Climate Chaos Coalition, do not think that the Energy Bill is strong enough and are calling for an amendment—the so-called warm homes amendment we have heard about today—that would introduce provisions to ensure that the Government’s programme on energy efficiency, including the green deal, fits within an overarching energy-saving strategy sufficient to meet the ambition of the Climate Change Act 2008. To remind the House, that ambition is for an 80% emissions reduction by 2050 and a 42% reduction by 2020. Do the Government have any sympathy with this proposed amendment—on first reading, it seems reasonable—if only in the interests of open government and accountability? If not, why not?
People contacted me while the Bill was making its way through the other place, asking that we strengthen the role that local authorities must play. We have heard much about that today. I know that the Secretary of State and the ministerial team are aware of the local government offer on climate change, which has been signed by local authority leaders of all different political persuasions, and which supports the amendment to make climate change a core responsibility of every local authority through local carbon budgets. I appreciate that Ministers might think that at odds with the localism credentials the coalition Government rightly set out, but given that we must meet the ambitious targets set by the Climate Change Act, is this Bill not an opportunity to bring local councils to the table?
Zac Goldsmith
I agree with my hon. Friend 100%. One of the great aspects of the green deal is that it overcomes the obvious barriers that exist without it. The green deal is very much part of the delivery in meeting the targets, but so too is the next energy Bill. Clearly, this is not the end of the energy story for this Government.
Ian Lavery (Wansbeck) (Lab)
The hon. Gentleman mentioned how imperative the emissions reduction targets are, and I entirely agree with him. The Committee on Climate Change has suggested this week that we should be looking at more nuclear power, rather than at offshore wind power. Taken in context, that means that there will be a shortage of energy supply that can be bridged only by gas, which would increase emissions levels rather than reducing them.
Zac Goldsmith
I am on record as being sceptical about the possibilities of nuclear power, partly because it will take so long for us to generate the new capacity that it will not address our immediate concerns. Nor do I believe it possible that we will see new nuclear power plants being built under a regime that says “No subsidies for nuclear”. I might be wrong—a number of people in the sector have told me that I am—but my hunch is that we will see new nuclear power plants only if the definition of “subsidies” is stretched beyond all recognition. But we will see; we will set the right framework and allow the market to decide. That is a party policy that I am happy with, as long as we reach a clear definition of “subsidies”.
Returning to our attempts to meet the targets that I hope will be accepted by the Treasury, one aspect of the second energy Bill—I am not sure that it is legal for me even to talk about it—is important for providing a context for this Bill. That is the concept of “negawatts”, which effectively puts energy saved on a par with energy generated. This is absolutely crucial, and represents a hugely exciting change. My understanding—although I will probably be corrected by the Minister in the wind-up—is that under the proposed reforms to the electricity market, companies will be allowed to pitch for energy contracts and then to fulfil them by reducing energy use, rather that simply by providing more energy. That in itself will transform things in this country on a very exciting scale. It is useful to consider that future Bill alongside the one that we are considering today. Even so, we are going to need more.
If the Government are really serious about energy efficiency, they need to be willing to push for much higher standards in our everyday appliances. One example that I discovered this morning is that we spend £2 billion a year powering washing machines, tumble driers and dishwashers, and a further £2.2 billion a year powering fridges and freezers. If everyone in the UK upgraded their cold appliances to a recommended energy-saving product, energy waste would be cut by two thirds. If we apply that across the board to all the appliances that we use, it is clear that this is one area in which we need direct Government intervention. We need higher levels of regulation, and we need to see standards improving on a rolling basis.
The Bill represents a significant first step in the right direction, and I strongly support it. I congratulate the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Bexhill and Battle (Gregory Barker) on his involvement in it. It is clearly part of a big journey, however, and there are many more steps to come.