Cost of Living: Energy and Housing

Kate Green Excerpts

Thursday 5th June 2014 Commons Chamber

[Mr Davey]

The hon. Gentleman is mixing up two things. The reforms to which he referred created the big six. There was a consolidation in the markets as a result of those reforms. What is helping competition is the ability to switch. What we have been doing is making that easier, simpler and faster, and that is the right thing to do. I am proud that we now have—or will shortly have when it is confirmed by Ofgem—a full-scale market investigation. The large energy companies will need to think very carefully about their pricing decisions. If they do not pass on falling wholesale costs, the competition authorities and, more importantly, their competitors will be very interested.

This autumn, I intend to ensure that British people know that if their energy supplier hikes up their prices, they will have a real choice to switch firms and cut their bills. The switching choices will be simpler, easier and quicker than ever before.

In this Session’s legislative programme, my Department will be putting forward a number of measures in the infrastructure Bill. First, I draw the House’s attention to our plans to introduce a community electricity right. Communities will be offered the chance to buy a stake in a new commercial renewable electricity scheme in their area. Community energy can play an increasingly important role in our energy mix, not least as we increase renewable energy in the UK.

When I published Britain’s first ever community energy strategy earlier this year, we showed how greater involvement by communities could significantly support our goals of decarbonising the power sector, increasing energy security, reducing bills and helping the fuel poor. One of the key aims of the strategy is to see greater community involvement and ownership of local renewable energy projects. We hope and believe that that will come about through voluntary agreement. A taskforce of industry and community energy specialists is already working out how a win-win can be achieved, with investors gaining greater public support and additional capital investment, and with communities receiving greater benefits and a greater stake.

Since we are pursuing a voluntary approach, the power in the Bill is a back-stop. The community energy sector was clear that the voluntary approach should be given a chance to succeed, and I agree. By legislating as proposed, we can send the strongest signal that Government and Parliament want to see both community energy and local shared ownership of renewable energy succeed. I hope that the measure will receive support from all parties.

Other key energy measures in the infrastructure Bill involve the implementation of the review that I commissioned into the future of Britain’s North sea assets, conducted so brilliantly by Sir Ian Wood. Given recent events in Crimea and Ukraine, we know more than ever that secure supplies of gas are vital to our economy, but cannot be taken for granted. As we cut our carbon emissions, with our dramatic shift out of coal over the next decade, we know that the replacement electricity must involve low-carbon electricity from renewables and nuclear and lower carbon electricity from gas. Our energy security and climate change objectives require gas, so we must conclude that our North sea oil and gas assets are at least as important now as they have always been.

In spite of rising and indeed record levels of investment in the North sea under the coalition, figures show declining production and exploration, which should worry us all. Gas imports have been rising for some time already and if we do not act to improve conditions in the North sea, our dependency on imported gas could reach worrying levels. As we implement the Wood recommendations, specifically to enable a new arm’s length regulator, I hope that we will get support from all parts of the House.

In order to ensure that the UK can benefit even more from its home-grown energy, we will introduce a final set of measures, subject to consultation, so that Britain can be more secure and reduce our reliance on imports and on coal. The measures are to support the development of the shale gas and geothermal industries. Although both industries are still in their infancy, they are both concerned that the existing legal situation could delay or even stop their ability to drill horizontally deep underground to recover gas or heat. Ironically, given the urgency of climate change and unlike the situation for dirty coal—a landowner or property owner high above a coal seam cannot object and delay work—for cleaner gas and clean heat, landowners and property owners can object.

To assist the shale gas and geothermal industries, we are consulting on how to address those access issues. We published our consultation paper on 23 May, and the consultation will run for the full 12 weeks. Members of the House may respond to that consultation, as may all interested parties. We want feedback and input, because that will help us to refine our proposals, to develop alternative ones or even to convince us that the existing system is fit for purpose. We will listen during the consultation and, subject to its outcome, we will introduce proposals when parliamentary time allows.

[Kate Green (Stretford and Urmston) (Lab)]

This is of great interest to my constituents, because we envisage drilling to explore the possibilities for shale gas in our area in the coming months. Will the Secretary of State repeat the assurance that the Prime Minister gave in response to the hon. Member for Brighton, Pavilion (Caroline Lucas) yesterday, that there will be no circumstances in which someone may legally drill under people’s property without their consent and agreement?

[Mr Davey]

I am not sure whether the Prime Minister said that in those terms. There will be local community engagement in issues about fracking, not least through the planning process. There will be local involvement, because a company has to get a series of permits and regulatory permissions before it may even start an exploratory drill, which should give the hon. Lady’s constituents and other people the reassurances that they need.

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[Kate Green (Stretford and Urmston) (Lab)]

I am grateful for the chance to participate in the debate, and it is nice to be doing so just after the length of time that it has taken for women to be able to contribute to the proceedings of the House has been highlighted. I know that you, Madam Deputy Speaker, the hon. Member for Brentford and Isleworth (Mary Macleod) and others are especially pleased to celebrate that today.

I believe that my constituents who watched the Queen’s Speech were looking for measures that would give them a sense of confidence and security about the future—a sense that there would be secure jobs, that they would have stable homes, and that they would be able to get on rather than having to scrape by wondering from week to week how things would pan out. There were a few welcome measures. I was pleased to hear the announcement about free school meals, and any investment in helping families with the cost of child care is welcome too. However, I want to say something very clearly and strongly to Ministers about an issue that is brushed aside each time it is raised.

Far too many people in this country who are in work are working in poverty, and that is simply not acceptable. The measures that Ministers talk about, such as the raising of the tax threshold, are not sufficient on their own, because the lowest-paid workers, particularly those on zero-hours contracts, are unlikely to benefit from them. Any fiscal measures must be accompanied by much firmer and more determined action on low pay. That is why we have spoken of the need to be much more proactive in addressing the phenomenon of zero-hours contracts, and to take much more energetic action to ensure that the national minimum wage increasingly becomes a wage on which people can live and raise their families.

I also think that we should take much firmer action in bearing down on some of the basic living costs that families face: the costs of food, energy and housing. I agree with other Members who have drawn attention to the need to increase affordable housing supply. In Trafford, in my part of Greater Manchester, housing costs are relatively high. They are not on the scale experienced by Members with seats in London and the south-east, but, in Greater Manchester terms, Trafford is an expensive place in which to live. That applies particularly to people in private rented accommodation, who constitute a substantial proportion of my constituents.

Those people will be very disappointed by the deficiencies in the Queen’s Speech in this regard, because they are already being priced out of their accommodation. If they complain about its quality, the landlord will tell them to move out, and the knowledge that the landlord holds all the cards makes them feel deeply insecure about their tenancies. It is very regrettable that the Government have not been more active in relation to that substantial housing sector. Many people in my constituency aspire to own their homes and we want to support them, but we must recognise that a large number of people are living in private rented accommodation, and will continue to do so because they cannot afford, or do not have stable enough incomes, to commit themselves to buying their own homes. I implore the Government to think about what more can be done for those households.

However, it was energy that I really wanted to discuss this afternoon. Let me first say a little about energy costs. We must all be relieved that last winter was so mild. I know that many of my constituents really fear their energy bills—especially disabled people, older people and those who are bringing up young children, because they are at home more often, and because the vulnerability of many family members requires the heating to be turned on and turned up. It is because of that real fear that I want to say to Government Members that their scepticism about Labour’s 20-month price freeze is totally misplaced. The proposal has been greatly welcomed by my constituents, because it will give them a chance to manage bills and to plan a bit—perhaps to set some money aside for a rainy day to cope with day-to-day living expenses. I think that Government Members should think carefully about the nature of that commitment, and about what more can be done to encourage other energy companies to follow the example of those that have already shown what can be done.

I particularly wanted to speak about energy supply, in the context of the importance of energy security and managing climate impact. The issue is of huge concern and interest in my constituency, and it is also an issue of considerable pride. Trafford college is at the cutting-edge in offering renewables installation training, for instance. It is also a very live issue in my constituency, because there is real concern about the environmental impact of the fracking measures announced in the Queen’s Speech, and that is what I want to talk about this afternoon.

The north-west has been identified as having significant shale gas and coal-bed methane fields and drilling has already begun, for example just over the border from my constituency in the constituency of my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley). There are also live proposals for a coal-bed methane site in Trafford. There is deep local fear that fracking will start happening in our community, and there is a particular worry about fracking starting in Davyhulme where air quality standards are already being breached. It is a built-up area that is next to the M60 and close to an airport, and the site is right by the proposed biomass plant. There is, at the very least, real concern that the air quality will worsen substantially if there is fracking and exploratory drilling, not least because of the additional traffic flows, which the Secretary of State acknowledged was one of the unfortunate by-products of fracking exploration.

The core issue, however, is a lack of transparency and of genuinely honest and open dialogue with local communities about the implications for them. For example, it took the local press to reveal that radioactive waste water had been placed into the Manchester ship canal by United Utilities a couple of years ago. That waste water had been brought to our neighbourhood with the purpose of disposing of it. The public should have been informed about that, and if the view was that that was done entirely safely, that, too, should have been explained to local people. It does nothing for people’s confidence in new energy sources if we have such cover-ups.

Friends of the Earth reports that Trafford council failed properly to consider the climate change impacts and did not therefore require an environmental impact assessment for the IGas application for coal-bed methane testing and production at Davyhulme. Therefore, we have not had a full environmental impact assessment of the likely consequences of such activity. Moreover, the Environment Agency has allowed exploratory drilling at Barton Moss next door, in the constituency of my hon. Friend the Member for Worsley and Eccles South. It seems to be quite untroubled by the fact that the IGas application to undertake such activity made it clear that it would be storing hazardous waste extracts on site. That is not covered by the Environment Agency permit, yet nothing appears to have been done to prevent it from carrying on with the activity. There needs to be more transparency and the regulatory regime needs to be much more effective if people are to have any confidence in this form of exploration. My constituents are very sceptical about whether they are being given all the facts.

[Huw Irranca-Davies]

My hon. Friend is making a very good contribution on hydraulic fracturing. Last year I visited Pau in southern France where for a couple of decades work has been carried out on carbon capture and storage underground. There is extensive seismic monitoring and monitoring of gas and so forth. It would be helpful if Ministers explained to us what long-term monitoring there would be of any sites where hydraulic fracturing is used.

[Kate Green]

I agree. There must be both the monitoring and the publication of the outcome of that monitoring and absolute openness and transparency about the impact.

My constituents are also anxious about the Government’s proposals to allow fracking companies to drill under people’s homes or properties without permission. I am pleased there is to be a consultation. The Secretary of State said this morning that there would be a full 12-week consultation on this, but I am puzzled as to where the Government are coming from because yesterday, in response to a question from the hon. Member for Brighton, Pavilion (Caroline Lucas), the Prime Minister said it would not be legal to go on to someone’s property and frack against their will, but I am not sure I got such a firm assurance from the Secretary of State this morning.

As my right hon. Friend the Member for Don Valley (Caroline Flint) pointed out, the coal and water and sewerage industries already have a right of access to underground land. It is important to have clarity as to whether Ministers intend there to be a comparable right in relation to shale gas and if that is the case whether the costs of any damage and any clean-up and so forth will fall to the industry, not to the taxpayer or property owners. As my hon. Friend the Member for Ogmore (Huw Irranca-Davies) suggested, there is also significant concern about assessing baseline data in relation to, for example, seismic activity or methane in groundwater, and maintaining the monitoring of any impact on that baseline data as a result of any fracking activity.

Finally, there is significant worry about the long-term impact of investing substantially in further fossil fuel technology at the expense of renewables investment. We are very clear that any investment in fracking and other gas-based technologies must be accompanied by rigorous and tough adherence to decarbonisation targets. Ministers have not said much yet to explain why they are so enthusiastic about investing in a fuel source that can only increase our fossil fuel footprint, and which will not deliver much in the way of energy security for a good 10 to 15 years—time that could be used to develop alternative sources of energy. There is real concern about the climate impact being rather underplayed.

I think my constituents would prefer a greener energy strategy, and at the very least they deserve absolute openness about decisions to engage in the exploitation of coal-bed methane and shale gas. I echo calls made in this Chamber today for the Government to proceed with caution, and I very much hope they will be heeded.