Oral Answers to Questions
Debate between Joan Ruddock and Chris Huhne(12 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Chris Huhne
The matter of oil exploration around the Falkland Islands is a lead responsibility of the Foreign and Commonwealth Office. Exploration is under way. Some of the initial exploration undertaken in territorial waters was disappointing, but that may change in future.
Dame Joan Ruddock (Lewisham, Deptford) (Lab)
Having been a Minister myself in the Department of Energy and Climate Change, I cannot believe that officials did not warn the Secretary of State and Ministers of the folly of setting a cut-off date before the end of the consultation period. Will he not now apologise to those whose plans have been ruined and whose jobs have been lost, and acknowledge that a review was provided for in the Labour Government’s legislation?
Chris Huhne
The right hon. Lady sadly does not draw attention to the fact that there was no system of automatic degression under that scheme. However, she will be interested to hear that the general point that we should learn all the lessons required to be learned from this episode is not lost on the ministerial team, and I have ensured that we are doing precisely that. I do not think that it will come to conclusions that will be entirely to the right hon. Lady’s liking.
Oral Answers to Questions
Debate between Joan Ruddock and Chris Huhne
Chris Huhne
Clearly the hon. Gentleman understands that investment in these terms is often a lagging indicator, and the last Government were sadly remiss in coming forward with adequate incentives—for renewables investment, for example. I am delighted to say that we have brought forward the renewables review and provided the certainty that the industry required, and I am sure that our position will improve in future rankings.
Joan Ruddock (Lewisham, Deptford) (Lab)
But how does the Secretary of State square the changes to feed-in tariffs with promoting a green economy? In just one small scheme by the Peabody housing association in my constituency, the four jobs at the association are at risk, the eight apprenticeships are at risk and the 100 jobs at Breyer, which is installing the scheme, are also at risk. The Secretary of State is killing the solar industry and he must know it.
Chris Huhne
That is absolutely not the case. The right hon. Lady knows very well the importance of sustainability, because—if I may pay tribute to her—she has a long track record in this House of standing up for sustainability. However, sustainability does not apply merely to environmental matters; it applies also to budgets and the growth of industry, and we are putting the solar industry on a sustainable basis for growth.
Solar Power (Feed-in Tariff)
Debate between Joan Ruddock and Chris Huhne
Chris Huhne
I will give way to the right hon. Member for Lewisham, Deptford (Joan Ruddock), who is a former Minister in this area and whose expertise is well known.
Joan Ruddock (Lewisham, Deptford) (Lab)
May I reiterate what was said by my right hon. Friend the Member for Don Valley (Caroline Flint), who speaks from our Front Bench? It is not about the fact the tariffs are being reduced but the way in which it is being done. Peabody housing association, which works in my constituency, was going to have installed 6 MW of provision by March of next year and the programme has been decimated. The Minister of State has said that it can get ahead with a 5% return but it was planning—and had received—a 7.5% return and its borrowing costs are 5.3%. It cannot be done. The Secretary of State must change his mind.
Chris Huhne
I listen to what the right hon. Lady says, but the reality is that the scheme takes us back to the rate of return when the scheme was introduced by the previous Government in April 2010. It was appropriate then and all we are doing is taking account of what has happened in the real world, where there has been a very dramatic reduction in the cost. I have yet to meet a single manager of a single scheme who has persuaded me that they will lose money by proceeding with their scheme. They might make less money than they previously planned—that occasionally arises—but the business of my Department is not to provide extra rate support grants to local councils but to ensure that we have a successful renewable energy scheme and that we get solar panels out there. It is not a back-door way of funding extra support.
Oral Answers to Questions
Debate between Joan Ruddock and Chris Huhne
Chris Huhne
The green deal will, I think, be a real game changer. It will provide a framework that will enable billions of pounds of investment in retrofitting our homes and businesses across the country. Everywhere we have homes—that obviously means every part of the country—there will be new business opportunities. It is important to develop the supply chains in the energy saving industries, such as for solid wall insulation, and innovative products, as well as to reduce our dependence on imported energy. We are determined to ensure that small businesses can participate in the benefits that the green deal will bring.
Joan Ruddock (Lewisham, Deptford) (Lab)
The Secretary of State will know that his Labour predecessors, of which I was one, developed a similar ambitious programme for domestic energy efficiency, but because of the complexity of financing such deals, we believed that pilot projects were necessary and set them up, involving 500 homes. What has he learned from those pilots?
Nuclear Industry Safety
Debate between Joan Ruddock and Chris HuhneUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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Chris Huhne
I thank my hon. Friend for that question. The lessons from Japan are extraordinary. First of all, the earthquake, however terrible and powerful, did not damage the reactors. The damage came through the subsequent tsunami, which flooded the secondary cooling system and made it inoperable. It shifted away the diesel supplies for the back-up generating plant. That is precisely why it is so important to look at these secondary systems and ensure that they are proof against any extreme weather events in this country.
Joan Ruddock (Lewisham, Deptford) (Lab)
The Secretary of State referred to a raft of recommendations in the report, which he said the Government would accept. I have not read the report, but does he have any idea of the cost of those recommendations and who will pay for them?
Chris Huhne
It is too early to assess the likely cost. I merely point out that, as far as any new nuclear programme is concerned, we are still at the stage where negotiations are going on between the regulators and the companies interested in providing new reactors, making it possible to incorporate into the design stage any changes that flow from Dr Weightman’s recommendations. That means that it will be substantially cheaper than it would have been if we were attempting to retrofit.
Fourth Carbon Budget
Debate between Joan Ruddock and Chris Huhne
Chris Huhne
I very much agree with the hon. Gentleman, the Chairman of the Energy and Climate Change Committee, who has made a powerful case in the past for a low-carbon economy. This is no longer a set of cottage industries. We are talking about a sector of the British economy that employs 910,000 people, which is growing extremely rapidly in a major world market, and which offers us enormous opportunities. I have no doubt that to those who move first and furthest will come the great advantages of the low-carbon economy. On the point about purchasing credits, having in a misspent youth practised economic forecasting and knowing about the difficulties of getting forecasts right one or two years in advance, I think it makes pragmatic sense to preserve a little flexibility when looking ahead as far as 2023-27.
Joan Ruddock (Lewisham, Deptford) (Lab)
We are on track to meet our first three carbon budgets because of the policies put in place and pioneered by the Labour Government. The right hon. Gentleman is yet to deliver on any of his flagship policies. When he speaks of renewables, does he not have some concern about the Ernst and Young report showing that only 13% of UK-based corporates, financiers and clean-tech companies believe that the coalition will create an environmental success this year?
Chris Huhne
I am grateful to the right hon. Lady for her question. She has followed this area for many years and has enormous expertise in it. However, if she is going to claim the credit for meeting the current carbon budget on the back of the previous Government’s record, she should be aware that an important contributor to the 28% reduction in our carbon emissions since 1990 has been the depth of the recession. I am glad that she is at last owning up to the impact that those on the Opposition Benches had on our economy. On the Ernst and Young report, we are determined to set a framework that provides certainty and clarity for investors, and we will do so particularly with the electricity market reform that we shall be announcing later.
Energy Bill [Lords]
Debate between Joan Ruddock and Chris Huhne
Chris Huhne
I am grateful to the right hon. Gentleman for his question on that issue. Obviously, there is an absolutely central objective of the electricity market reforms, on which we are consulting, and it is that we bring forward proposals. We are determined that we should have an adequate supply margin through even the toughest of winters. My whole ministerial team is determined to ensure that, and I merely urge him to wait for our White Paper, which will I hope reassure him about the prospect.
Joan Ruddock (Lewisham, Deptford) (Lab)
In the light of what the Secretary of State has just said, what does he make of Centrica’s threat not to reopen its gas field because of the punitive taxation that his colleagues have imposed on it? If he really wants security of supply, surely that is central to its future.
Chris Huhne
Perhaps the right hon. Lady has more information on that than I do. I read the comments very carefully, but I did not read a comment about closing down the Morecambe gas field. That would be a very odd thing for an operator to do, but we will have to wait for the fullness of time to see whether she or I are right.
Chris Huhne
I will give way once more—to the right hon. Gentleman—before making a little more progress.
Chris Huhne
We have taken extensive advice on the provisions of the Consumer Credit Act 1974, and the Bill is absolutely in line with the protections.
In the view of this ministerial team, it is essential that the consumer has the highest possible protection, both financially and in terms of the quality of the installation, for the simple reason that the success of the scheme will depend on word of mouth. If people go around saying that they have had a bad experience, either financially or in terms of the installation, the scheme will not be the success that we want it to be. That is why we have been careful not to rush the Bill through. A lot of pressure has been brought to bear on us, because of the state of the economy, to ensure that we get it through as quickly as possible, but we have been determined, particularly drawing on the experience of Australia, to avoid the mistakes of countries that have rushed this matter, and to ensure that we get it right. I assure the hon. Gentleman that we have done that. I will turn to some of the more detailed answers to his question later.
Chris Huhne
One problem that we have in making that assessment is that, as I have said, this is the first scheme of its kind in the world. If an economist is trying to make a projection of what is going to happen in future, they usually examine what has happened in the past, but there is no history for this scheme, so it will be a case of “suck it and see”. However, later in my speech I will give some estimates of what will happen if the scheme progresses as rapidly as I would like it to.
Joan Ruddock
I am exceedingly grateful.
I have to say that much of what the Secretary of State is telling the House is familiar to me, as the person who pioneered and piloted so much of the history of the green scheme that he denies exists. What conversations has he had with the banks? How investment is to be raised is the key element that has not been described to date.
Chris Huhne
I am grateful to the right hon. Lady, and I pay personal tribute to her for her work on the matter. I am not—repeat not—attempting to make any partisan points. This has been a genuinely important piece of work to which Members of all parties have contributed, and I think it will be a game changer.
On the banks, I shall read the right hon. Lady a quotation that I believe sums up better than anything that I could say what is likely to happen with the financing of the scheme. It comes from Conor Hennebry, the director of global capital markets at Deutsche Bank, who says:
“We believe the Green Deal has the potential to improve access to home energy efficiency for families across Britain, and we are delighted to be working with DECC on this exciting initiative.”
He added on another occasion that
“the City is practically champing at the bit to finance the government’s green deal.”
I believe that the finance for the scheme will come through very strongly. The securitisation market is opening up—Eaga, for example, has already gone to the bond market with a securitisation, and many of the utility companies have securitised gas bills. I think that finance will be readily available, which will be an important part of making the green deal work.
Cancun Climate Change Conference
Debate between Joan Ruddock and Chris Huhne
Chris Huhne
I hope that we can update the hon. Gentleman even before then because there was a commitment in Cancun to use fast-start finance to get this going. Sadly, I can answer only for the UK Government and not for the 192 or so other Governments who were represented at Cancun. However, I very much hope, and will keep my fingers crossed, that we will make even more progress on this.
Joan Ruddock (Lewisham, Deptford) (Lab)
I congratulate the Secretary of State on the role that he and his team played at Cancun and on continuing the Labour party’s policies in that respect. Does he agree that individual European countries could afford to take a second Kyoto commitment period and that the EU could raise its emissions reduction target to 30% at very little extra cost given that, in the light of the recession, emissions have dropped?
Chris Huhne
I entirely agree with the right hon. Lady and I have repeatedly made exactly that point to my European Union colleagues. That argument is making real progress—for example, Spain is the latest country to commit to the 30% target—so we are gradually getting there, but there are problems for some member states. Rome was not built in a day, and neither was the European Union.
Bill Presented
Localism Bill
Presentation and First Reading (Standing Order No. 57)
Mr Secretary Pickles presented a Bill to make provision about the functions and procedures of local and certain other authorities; to make provision about the functions of the Local Commission for Administration in England; to enable the recovery of financial sanctions imposed by the Court of Justice of the European Union on the United Kingdom from local and public authorities; to make provision about local government finance; to make provision about town and country planning, the Community Infrastructure Levy and the authorisation of nationally significant infrastructure projects; to make provision about social and other housing; to make provision about regeneration in London; and for connected purposes.
Bill read the First time; to be read a Second time tomorrow, and to be printed (Bill 126) with explanatory notes (Bill 126-EN)