Scotland Bill

Jim Shannon Excerpts

Monday 6th July 2015 Commons Chamber

[Andrea Leadsom]

I am delighted to respond this evening. We have heard a wide range of views—albeit some ranging away from the proposed amendments—and I thank hon. Members for all their contributions.

The hon. Member for Caerphilly (Wayne David) spoke to clause 49, on which the Smith commission agreement was explicit that the power to allow public sector operators to bid for rail franchises funded and specified by Scottish Ministers would be devolved. Amendments 157 and 158 are unnecessary. Amendment 157 is not necessary as not-for-profit entities, public or private, are not precluded from being franchisees already. Amendment 158 would create unnecessary uncertainty by allowing discretion on whether a public sector bidder could join a live procurement process and therefore does not enhance the drafting in any way. New clause 65 would give the Scottish Parliament full competence over railways. That clearly goes beyond the Smith commission agreement, and would create the potential for unwanted disruption of networks and relationships between franchise authorities, passenger services and cross-border operations. I therefore urge right hon. and hon. Members to withdraw amendments 157 and 158 and new clause 65.

Turning to energy company obligations and fuel poverty, amendments 149 to 153 would depart from the Smith commission agreement. The agreement recognised that decisions that could impact on all Great Britain consumers have an impact on the Great Britain energy market as a whole and on UK international obligations that should be made at a Great Britain-wide level and remain reserved. Costs incurred by energy companies owing to supplier obligations affect all Great Britain’s consumers. Different costs incurred by a supplier in one area of Great Britain may cause competitive disadvantages and higher costs for customers in other areas. We think it would be in the interests of both UK and Scottish Ministers that costs on consumers in one part of Great Britain should not be disproportionate to their benefits. We believe that proportionate costs across regions removes the possibility of those competitive distortions and cross-subsidy by consumers across Great Britain. We will look at ways of making the cost of obligations clear and equitable between Scotland and the rest of Great Britain, and will work with the Scottish Government to identify the best way of achieving that.

The hon. Member for Caerphilly raised the question of who will decide what causes detriment to the UK. I can assure him that we will work with the Scottish Government to set up a process and methodology for evaluating the impact of schemes implemented in Scotland on their own, and in conjunction with schemes implemented in England and Wales, on the Great Britain energy market and on any relevant UK commitments and obligations. I can tell him that UK and Scottish Government officials have already begun working together to scope out how such a process could work.

[Jim Shannon (Strangford) (DUP)]

The Minister refers to how to address the price of energy in different regions of the United Kingdom. One of the things we would like in Northern Ireland, if at all possible, is a connector between Scotland and Northern Ireland, which would reduce our prices. Is that part of the Government’s strategy? She has not mentioned Northern Ireland and I am conscious that I would like it included.

[Andrea Leadsom]

I think the hon. Gentleman means an interconnector. I am absolutely a huge fan of interconnectors. That is not a part of the Bill, but I can assure him that I am happy to discuss that at any time and to facilitate conversations with the Scottish Parliament. I am, however, quite sure he will not need me to do that and is able to discuss that with them directly.

Our proposals on energy company obligations and fuel poverty are fair to all consumers and align with the Smith commission agreement. I urge hon. Members not to press amendments 149 to 153.

Let me turn to renewables incentives. Amendment 154 would remove subsections (2) and (3) of new section 90C of the Scotland Act 1998, in clause 53, such that changes of a minor, technical or administrative nature would no longer be excluded from the requirement to consult Scottish Ministers, nor those made by the Secretary of State that are not subject to parliamentary procedure. The hon. Member for Aberdeen South (Callum McCaig) has raised his concerns about this area of consultation. Removing subsection (3) would remove the exclusion to consult the Scottish Ministers on any levy in connection with a renewable electricity incentive scheme. Amendment 154 would require consultation not just on the design of renewable incentive schemes, but on their operation. This would not be in keeping with the Smith commission agreement and would lead to over-complex and time-consuming consultations that would affect the smooth operation of the schemes.