Feed-in Tariffs

John Redwood Excerpts

Monday 31st October 2011 Commons Chamber

[Gregory Barker]

This is rather extraordinary, because there has only ever been one substantive vote on feed-in tariffs in the House of Commons. Everyone on this side of the House voted in favour of feed-in tariffs. The right hon. Lady and all her hon. Friends voted against them. Will she apologise because the last Labour Government had to be dragged, kicking and screaming, into setting up a feed-in tariff system? Not only that, but they so begrudged it that they set up the worst scheme that they could imagine. The amount of detail that was wrong and the scandalous way in which it was set up by the now Leader of the Opposition were disgraceful. The faults that we are rectifying were created by the previous Government.

The right hon. Lady says that we are out of touch. We may be out of touch with the solar lobby, but we are not out of touch with energy bill payers. She says that they are groaning under a £175 increase, but she wants to put that up. If we did not act now, consumers would face massive increases in energy bills. Today, she has come to the House with a different face on and she does not care about the cost that she proposes to add to energy bills. If energy bills go unchecked, it would add around £1 billion a year—that might be small beer to Opposition Members, but Government Members understand just how much strain energy consumers are under.

The right hon. Lady talks about the level of ambition. We know that had the previous Government had their way, there would be no ambition, because there would be no feed-in tariff scheme. The only reason we have a feed-in tariff scheme is that the Labour Government were defeated in the House of Lords by Liberal Democrats and Conservatives united.

The new tariff that we are proposing to pay is on a par with the tariff paid in Germany. Across Europe, the cost of solar subsidy has been falling. It is a real shame that the right hon. Lady is rushing to make partisan points rather than engaging in a sensible discussion on how we get the best value for money out of the feed-in tariff scheme. We have £867 million. We want it to be spread as widely as possible; she wants it to be enjoyed by the lucky few. Bumper double-digit returns of 10% or 15% for those lucky enough to install panels is disgraceful when people are lucky to get 1%, 2% or 3% at the building society. The Government are recalibrating the return on feed-in tariffs to the level—similar to 5%—that was originally intended. I am afraid that the right hon. Lady is the one who is out of touch.

Finally, the right hon. Lady asks why eligibility will start from 12 December. It is very simple. Were we not to do that, and were we to announce a change now and leave the current arrangements in place until next April, there would be a massive gold-rush, and the entire budget for feed-in tariffs—the entire £867 million—would be gone by then. The last people from whom we should take lessons on how to manage a budget are Labour Members.

[Mr John Redwood (Wokingham) (Con)]

As someone who thinks it is very important that we get lower energy bills, I welcome any move in the right direction. Will the Minister tell us how much his proposals might knock off the bill, and will there be other measures to get the price down further?

[Gregory Barker]

This is saving money rather than knocking money off the bill, but I can assure my right hon. Friend that we are absolutely determined to ensure that green policies deliver real value for money. Unlike the Opposition, we are engaged not in some sort of illusion of green never-never land, but in the realities of what will deliver savings to consumers now, and real green jobs and growth. It is that rather than wishful thinking that informs our policy making.