(5 years, 1 month ago)
Commons ChamberI did suggest that the VAT increase was part of EU legislation, and that is something we can amend, if we wish to do so, after we have left the EU. Solar is a UK success story. I will not take any lessons from the Labour party about the success of solar: 99% of our solar-generating capacity and over 1 million installations have been deployed since 2010, since the Government took office. This is something that we are proud of, and it will obviously be part of our energy mix as we seek to hit the target of zero carbon emissions in 2050.
Even given the VAT situation, solar and wind, together with battery storage on commercial buildings, are pretty much viable without public subsidy. Is not now the right time for a widespread deployment on every public building, including every school, hospital and prison?
My hon. Friend makes an excellent observation. We are supporting innovation in this area. We have the Modern Energy Partners programme, which cuts energy costs and carbon emissions across the public sector.
(5 years, 1 month ago)
General CommitteesI absolutely agree. My hon. Friend is right to mention the lack of impact assessment or analysis of the proposed deal, which we are being asked to consider without being able to judge the line-by-line detail of what is in it. Somebody will have to remind me how many pages the new document is.
I will accept the hon. Gentleman’s comment from a sedentary position; does anybody want to go higher? The reality is that we do not have the information we need in order to make judgments, whether on the new deal or the consequences of no deal, and on these regulations. In the explanatory memorandum, the Government use the phrase, “It is anticipated”. What they are saying is that they do not know what the impact will be, and I am afraid that is a real problem. These regulations were drawn to the attention of the Secondary Legislation Scrutiny Committee.
The hon. Gentleman may be familiar with the document we were given access to, which was held in the Treasury since November 2018. That contained an impact assessment of all kinds of different scenarios, and said that in all of them, the economy is expected to continue to grow. Does that give the hon. Gentleman some confidence that there is life beyond the European Union?
That is a slightly different point to the one we are discussing. We need to look at the detail. I am not sure whether that intervention was part of the hon. Gentleman’s pitch to be Chair of the Treasury Committee—others must judge—but I will touch on his point. The Secondary Legislation Scrutiny Committee speaks of the removal of treaty rights, and the fact that this is a policy change. That goes to the heart of the concern about what is being proposed, because when the withdrawal Act was passed, the Government promised that they would not use the Henry VIII powers in section 8 of that Act as a vehicle for policy change. They also said that it “almost goes without saying” that no change should be made to rights through delegated legislation, yet that is exactly what is being proposed.
The disapplication of the rights of EU, EEA, Swiss and Turkish nationals is clearly at odds with what was promised regarding section 8 of the withdrawal Act. That Act was not intended to address how, whether, and how quickly we should meet our obligations under the WTO, which is the reason the Government are giving for putting these regulations through. The purpose of section 8 of the withdrawal Act was to fix deficiencies in retained EU law—an explanation that, to be fair to Ministers, they have used to justify previous regulations in Committees in which I have responded on behalf of the Opposition. Why is that not the case on this occasion? Why is this not being addressed through primary legislation? Why is it not being done through an immigration Bill, as my hon. Friend the Member for Cardiff South and Penarth asked, and why is that Bill stuck in Committee?
If free movement of people is to end via primary legislation, as the Home Secretary said on 5 September, why is the same principle not being applied to the freedom of establishment and free movement of services, and what are the consequences for those individuals who are self-employed, or who own or manage businesses in this country? A large cohort of the people delivering services or running businesses depend for their lawful residence qualification on being regarded as economically active. They have the right to that definition and to qualify. Their rights are derived under the 2016 immigration regulations, which the Minister mentioned, but that is because they are in accordance with article 49 of the treaty on the functioning of the European Union. These regulations disapply article 49, and therefore the 2016 immigration regulations.
It makes no sense to decide immigration rights for those who are self-employed or are running a business separately from determining the immigration rights of other people, but that is what these regulations do, despite the assurances that were given when the withdrawal Act was passed. If there is nothing to worry about, where is the legal analysis? Where were the Minister’s comments about the legal opinion that the Government have obtained? Where is the analysis that these regulations will not adversely affect the immigration rights of EU or EEA nationals? Thousands of self-employed, business-owning or business-managing providers of services need the assurance that they will not be disadvantaged and that their right to stay will not be questioned or removed. Where is the legal protection? It is not referred to in the explanatory notes, and the Minister did not refer to it.
I note from previous regulations passed in these Committees that on other occasions it has suited the Government to apply a principle of reciprocity. For example, I was responding for the Opposition on the matter of intellectual property regulations when the Government chose to allow EU and EEA firms the right to continue to have full access to our intellectual property regulations, and there was no guarantee that our firms would have those rights in return. Reciprocity was not a barrier on that occasion, but it seems that it is here, when the Government want to remove the rights of self-employed or business-owning or managing EU or EEA nationals.
(5 years, 4 months ago)
Commons ChamberIn June, the Government announced steps to ensure that consumers will not be punished for their loyalty. We are giving increased powers to the Competition and Markets Authority to fine companies that breach the law and to enable consumers to take control of the data that businesses hold on them.
Mr Speaker, when you stay at the Woolacombe Bay Hotel, you may be paying 20% too much, because online agencies such as Booking.com use brandjacking clauses to colonise search results, and rate parity clauses, which mean that even if you go direct, you still pay 20% more than you need to. Other EU nations have banned this. Will we?
My hon. Friend is absolutely right to raise that point. The Competition and Markets Authority is taking enforcement action against the major hotel booking sites precisely because of those concerns. It has already secured binding commitments from those companies, which will protect consumers in exactly the way that he recommends.
(5 years, 4 months ago)
Commons ChamberIt is a pleasure and an honour to follow the right hon. Member for North Norfolk (Norman Lamb), who has done such incredible work in this area and on the all-party parliamentary group on fair business banking, on which most of my remarks will focus. Many points in his speech resonated with me, particularly when he mentioned a whistleblower who said, “If I knew then what I know now, I never would have spoken out.” Every single whistleblower I have been in contact with has said exactly that. If that is the case, we have got this drastically wrong.
There is so much good work going on. The all-party group is doing tremendous work, and many of those people are in the Public Gallery today. Whistleblowers are so valuable to us in so many ways, as the right hon. Gentleman described. The principle underpinning the work that is happening is that they should be encouraged, their contribution should be valued and, of course—more than anything—they should be protected. From my experience within the financial services sector, that is the opposite of what happens; I will allude to a number of cases during my speech.
May I take my hon. Friend back to the last comment made by the right hon. Member for North Norfolk (Norman Lamb)? He talked about the importance of an office for the whistleblower and addressed the critical problem of the lack of effective high-level co-ordinating leadership, and in my view a national office for the whistleblower would be the answer. Does my hon. Friend agree that the creation of a national office for the whistleblower—to protect, advise and support whistleblowers by overseeing, co-ordinating, setting standards and holding to account the regulators and employers—is the right way to proceed? The vital point is that it would not investigate cases of whistleblowing; it would ensure that cases are properly investigated by existing bodies, identify failings and successes, and propose systemic improvements that would help to get us out of this very difficult situation.
I support that principle and many other recommendations mentioned by the right hon. Member for North Norfolk. I will be interested to hear from my hon. Friend the Member for Stirling (Stephen Kerr), who chairs the all-party parliamentary group on whistleblowing, when he speaks about his group’s recommendations.
I just know that this is something that we have got to get right that we have got wrong at the moment, because the people who step forward to take these risks can lose everything—their careers, their jobs and their livelihoods. It is devastating when they tell their loved ones that this is what they are doing. In addition, their colleagues, friends at work and self-esteem are put at risk. From the cases I deal with, it seems that that is all put at risk for no benefit, as people do not even achieve what they set out to by highlighting the issue, and they suffer devastating consequences as a result.
I have not put in to speak because the issue that concerns me is still pending, but does my hon. Friend accept that even being a senior consultant is no protection against what can happen to someone who blows the whistle? I have a case of a senior consultant in an eye unit who became concerned about financial irregularity and, even worse, substandard treatment that was causing eyesight to be lost. The effect of his complaining was that he was the one who was suspended and who faced a General Medical Council examination. The Royal College of Ophthalmologists was simply shown the results of an internal inquiry, not the source material. The Care Quality Commission did nothing, and the GMC is only now beginning to look into his claims—now that it has dismissed the false allegations that were made against him. Is that not a disgrace?
I could not agree more. My right hon. Friend highlights the importance of some of these cases. We have to ask why an organisation would not want to know about this. My role before coming to this place four years ago was as managing director of my own business. We were quite a large business at that point. I dealt with all the complaints in the organisation because I wanted to know what was going on there, and that is the best way to find out. These people are our eyes and ears. We were an ethical business and we ran it well, but if anything was going off track, we would want to know about it. However, it seems that when these people step forward, the people around them—their superiors, I guess—too often feel that the situation is too risky and look to close down the complaints.
From the fair business banking perspective, we know that one third of all serious economic crimes are brought to light because of the actions of whistleblowers. It is very rarely the regulator that is going in there and identifying the problem and then dealing with it—in fact, quite the opposite. It is therefore absolutely fundamental that these people will step forward. All the whistleblowers we deal with say, “I would never do that again.” Other people in the sector hear about that and are then deterred from stepping forward. That is an absolutely intolerable situation. What these people do should be welcomed.
The right hon. Member for North Norfolk talked about the case of Mark Wright. In my experience, this not just about the organisations themselves but also about the regulator. The regulator could take a much firmer stance. Whistleblowing is part of its processes. It has responsibilities under protected disclosure to deal with whistleblowers, but that is not what happens. It pays lip service to the issue of whistleblowing. It says, “Yes, okay, we’re dealing with that,” but the cases that I will highlight illustrate that that is not what has happened. The FCA has got a terrible reputation in this area.
Does the hon. Gentleman agree that the sense one gets from the FCA is that it regards these people as irritants—troublemakers? The people who investigate the allegations of whistleblowers are often people who have been through the revolving door, in and out of banks and the regulator, and so are too close to the people they are supposed to be regulating.
Yes. I ask myself all the time, “Why is it like this?” and that is one of the reasons—the revolving door. Those people are part of a wider group or club—the old boys’ tie kind of stuff. This cannot be allowed to be the case.
As I said, the right hon. Gentleman highlighted a case that was heavily reported where the FCA told RBS who the whistleblower was. That seems absolutely unthinkable, and it was criticised by the Complaints Commissioner. When the FCA dealt with the case of the chief exec of Barclays, Jes Staley, who had tried to find out the identity of a whistleblower, which is totally against protocol, he was fined a modest sum that was probably a few weeks’ wages for him. Where is the deterrent there for not treating whistleblowers in the wrong way?
In my own experience, Joanne Rossouw contacted me about fraud at Barclays relating to payment protection insurance claims under the Consumer Credit Act 1974. She felt that there was a total lack of protection and support from the FCA and that its communications were simply unacceptable. The case of Paul Carlier was heavily reported. He whistleblew on foreign exchange dealers at Lloyds and was then unfairly dismissed. The FCA had promised to support his case and to provide an opinion to the tribunal he went to when he was unfairly dismissed, but did not do so, despite Andrew Brodie at the FCA calling the Lloyds process for the treatment of whistleblowers a whitewash and a joke. That was not the only case—there were others that he dealt with. Yet these people are not sanctioned. Why is that?
Paul Moore, my constituent, was the first person to raise the issues at HBOS. In 2004, he described a toxic culture at HBOS, with pressured sales targets and people taking unacceptable risks in lending money. Of course, HBOS collapsed in 2008. He was unfairly dismissed. He was treated disgracefully by the Financial Services Authority, as it was then. As the right hon. Member for North Norfolk said, if we had taken a robust approach when whistleblowers came forward, it may have stopped the financial crash happening in the first place, which cost our taxpayers £1.8 trillion.
My hon. Friend is underlining the point that the regulators are stricken with lethargy when it comes to responding to whistleblowers. Does he agree that whistleblowers need the protection of an independent office to advocate for them with these bodies, which are sometimes very forbidding in the way they respond to the approach of whistleblowers?
My hon. Friend is absolutely right. We need to improve how we deal with whistleblowers and the legislation around them. We must also insist that regulators, which already have access to sanctions, deal with these issues robustly. There is a cultural problem in the FCA in dealing with this. That must be addressed, and it can only be dealt with by the leadership of the FCA.
The most egregious case I have dealt with over two years as co-chair of the all-party parliamentary group on fair business banking is that of Sally Masterton. She was a senior risk manager at Lloyds. In 2013 she wrote a report called “Project Lord Turnbull”, which highlighted the fraud that was concealed at HBOS before the takeover by Lloyds. She identified a billion-pound fraud—these are not small numbers or small issues, which is perhaps why they are swept under the carpet. She was asked to set out her findings. She produced the report and gave it to her superiors. This was happening at the same time as a police inquiry into the low-level fraud that was happening at HBOS. She was then suspended and prevented from working with the police, despite the fact that the police had said in an email that she was vital to the investigation. She was later constructively dismissed.
She was then discredited. Lloyds wrote to the FCA to discredit her, effectively saying, “This person is a rogue employee. They are not a cogent witness.” The FCA accepted that without any investigation. That was in 2013. Five years later, Lloyds apologised to Sally Masterton, saying that she had been disgracefully treated for five years and admitting that it had tried to discredit her all the way through that process—imagine what those five years of her life were like. The FCA told Lloyds to intervene because she felt she had been terribly mistreated. Andrew Bailey himself had met Sally Masterton and determined that she had been disgracefully mistreated. Lloyds apologised to her and came to a financial settlement with her, but the FCA did not sanction anybody in Lloyds for that mistreatment. That is incredible.
All the FCA keeps telling me is that there is another investigation going on—Linda Dobbs’s investigation of Lloyds’s reporting of information before and after the HBOS takeover—but that is unacceptable. The FCA has already established the mistreatment, yet it will not move forward to sanction the people responsible. Under the senior managers regime, these people, including the chief exec, could be sanctioned, fined or banned. That is exactly what should happen.
My hon. Friend is making a very relevant point, and it applies to my constituent who suffered reputational damage following his whistleblowing about the High Speed 2 project. I am sure my hon. Friend will come on to talk about what either the FCA or another body can do to provide protection for whistleblowers and restore their reputation.
My hon. Friend is right. The FCA has a huge opportunity. It should regulate without fear or favour, but that is not where we are. It constantly looks over its shoulder at the banks and seeks to defend their reputation by concealing the truth, rather than robustly investigating these issues.
I asked Andrew Bailey four times a simple question in connection with this issue: did he follow the processes set out on the FCA website for how it deals with whistleblowers? Sally Masterton’s case was supposed to be referred to his team within five days and then go through the proper process. Did he do that? He has not responded to that question four times. It is totally unacceptable.
Sally Masterton says in her protected disclosure to Andrew Bailey:
“This is the tenth time that whistleblowing issues have been raised with you and ignored”,
over a period of five years. That is despite the fact that the FCA itself, in communication within the FCA, has admitted her report was well drafted and presented, and one FCA person said to another:
“I see a couple of potential risks…We may get challenged as to what we”—
the FCA—
“did about this report when received or LBG’s treatment of Mrs Masterton”.
We should also mention the fact that there was whistleblowing to the Financial Reporting Council on the audits done at HBOS about the amounts of money set aside against expected liabilities. The head of the FRC, Stephen Haddrill, appeared before the Business, Energy and Industrial Strategy Committee, of which I am a member, and said some really interesting things about ongoing inquiries with other regulators in relation to whistleblowing, but nothing further has been said.
I think this is about KPMG’s audit of HBOS in 2008, which was signed off a few months before HBOS went bust, despite the fact that the risks to that business were clear. The FRC then gave KPMG a clean bill of health. There was the revolving door between the FRC and the auditors as well. It is a very big concern, which I know my hon. Friend has raised in his Select Committee work.
I am sure everybody would like to join me in paying tribute to Julie Bailey, who was one of the best whistleblowers in the NHS. She triggered the Mid Staffs inquiry and the Francis report, as well as raising many other issues. She is now living in Wales. The way that Julie Bailey was treated after she became a very well-known whistleblower is an absolute disgrace. It is an example of what happens to whistleblowers, and it does not matter how well known they are.
The right hon. Lady pays a very important tribute and makes a very important point about how we can persuade more people to come forward. It has to be about how they are protected and looked after. Looking at other regimes internationally and how they deal with this will be an important first step in reforming our whistleblowing procedures.
The big thing I would say about all the issues I deal with is that they go right to the top of these organisations. These are not at low level, they go right to the top. They must be dealt with—yes, by whistleblower reform, and, yes, by a regulator that is far more robust and regulates without fear or favour. I believe we need other measures, including a public inquiry into some of these situations and into the circumstances of the disgraceful treatment of many businesses, particularly by Lloyds and Royal Bank of Scotland.
I endorse many of the recommendations made by the right hon. Member for North Norfolk. I think we need a much more robust Financial Conduct Authority regulator. Culturally, the biggest issues in the regulator need fixing. We should look at whether we should provide financial incentives for whistleblowers of the right nature. We do need to make sure that our regulator goes in robustly when we see these mistreatments or improper practices, together with our law enforcement agencies. That is what happens in the States in these situations. It is a case of saying, “Either you deal with us and you deal with these issues, or we really will take further steps, including potential criminal sanctions.”
The situation is not where we want it to be, but I conclude by thanking the whistleblowers who do come forward. They are so important, and we would not be where we are today in understanding what has happened in the banking sector without the incredible contribution of many of the whistleblowers I deal with.
I thank the right hon. Member for North Norfolk (Norman Lamb) and my hon. Friend the Member for Stirling (Stephen Kerr) for securing today’s important debate. I should also like to congratulate the right hon. Sir Norman Lamb on his knighthood, in recognition of his commitment to public service. I thank all hon. Members for their contributions today, and for the passion that they have expressed in voicing the concerns and putting their arguments on UK whistleblowing policy.
The Government recognise how valuable it is that whistleblowers are prepared to shine a light on wrongdoing. That is important at an organisational level but also, more broadly, for society, so that issues such as abuse of power are brought to light. This afternoon, stories have been shared in the House of people who, having acted as whistleblowers, have been disadvantaged and experienced severe detriment.
Effective whistleblowing policies enable workers to speak up, to prevent wrongdoing and fraud. That helps to protect employers from financial loss and reputational damage, and builds their trust with customers. Those who blow the whistle should be able to do so without fear of recriminations. Employment protection enables workers who have blown the whistle to seek redress if they are dismissed or suffer detriment at the hands of the employer because they have made what is called a “protected disclosure” about wrongdoing that they have witnessed at work.
I can assure hon. Members that over recent years the Government have taken steps to support a cultural change in relation to whistleblowing in all sectors. A number of statutory and non-statutory improvements have been made. Those include the publication of guidance for whistleblowers on what they need to do to make disclosures while preserving their employment protections; and guidance for employers, including a non-statutory code of practice.
My hon. Friend the Member for Stirling and the hon. Member for Oxford East (Anneliese Dodds) mentioned guidance. The hon. Lady spoke about the extent to which MPs have clarity in dealing with people who come to them for advice. I would like to go away and see whether there is any kind of guidance that we might publish, particularly for MPs, to improve our ability to help our constituents.
The Minister heard some of my comments about the Financial Conduct Authority and its, at best, quite tepid approach to whistleblowers. What are we to do when, effectively, an agency that is commissioned by the Government does not follow through on its whistleblower obligations?
I thank my hon. Friend. I was preparing to come on to that, but he is absolutely right—the FCA falls under the control of Her Majesty’s Treasury. I shall go into greater detail later, but I want to meet HMT to raise with it some of the concerns that have been voiced today in the House about the FCA and whistleblowing policy.
(5 years, 5 months ago)
Commons ChamberIt is a pleasure to follow the right hon. Member for Doncaster North (Edward Miliband), who has been one of the world leaders in the debate on this issue.
I welcome the Government’s announcement today. Climate change is without doubt the biggest danger to our planet. The UK has a very good record in this regard, but the planet has a very poor one. All of us will have to up our game massively to meet the challenge. Moreover, the next stages of the decarbonisation of our economy will be much more difficult than the progress that we have already made.
As I have said, the UK has a good record. The climate change performance index, which is collated by the independent organisation Germanwatch, lists it as fifth in the world, behind only Sweden, Latvia, Lithuania and Morocco. We are ahead of every other country that Members may want to mention, so it is not a question of the Government’s marking their own homework. We are a world leader in this area. Ours is the best performance in the G20. We were the first country to announce that we would abolish coal energy production by 2025, and are now the first to announce a net zero target of 2050.
It has not been mentioned yet in the debate, but we should not forget that all this progress has come not necessarily at a cost to businesses, although they are having to change, but principally at a cost to consumers. All these levies are paid by the consumer. In 2010, we were spending just over £1 billion. Today, consumers are bearing a cost of more than £7 billion a year, and the figure will be more than £9 billion by 2020. When we make more progress—as we will—we must do so in a way that is sensitive to, particularly, those on low incomes, because otherwise the burden will be entirely disproportionate.
Yes, we have made progress. As has been pointed out, 33% of our energy comes from electricity. However, that is only 19% of the total energy that is being produced. The next challenges, particularly those involving heating and transport, will be much more difficult. We need a stable framework. It is great that the Government have made their announcement, because it means that businesses will respond and feel confident that their investments will be supported in the future.
There is plenty of innovation coming down the line that will have nothing to do with Government action. I am thinking of, for example, transport as a service. When we do not own cars any more, but simply dial a number on our iPhones so that they arrive outside our doors, energy requirements for transport will be transformed. Solar energy and batteries will transform them as well. This is more about a technology disruption than about a transition. As the right hon. Member for Doncaster North said, it is about economics. It will be cheaper to run a car that is electric and autonomous than to run one with a diesel engine.
It has been good to hear this issue debated on both sides of the Chamber today, but if we are to deliver these solutions, we need a fact-based debate. We cannot simply say that we need to decarbonise our energy and that therefore we need to stop using gas, and then stop producing gas. Fracking has been mentioned today. Given that 90% of my constituency is covered by petroleum exploration development licences, we will need gas. The Committee on Climate Change says that the widespread deployment of hydrogen is critical to the decarbonisation of our economy. That can only realistically be achieved by stripping the carbon molecule out of methane. We will need gas for many decades to come. Let us talk facts, and not just base what we say on emotions.
I welcome the Government’s actions, and I have been delighted to speak in the debate.
(5 years, 5 months ago)
Commons ChamberI am happy to meet the hon. Lady to discuss this, but I would like to reaffirm the Government’s commitment to upgrade workers’ rights, protecting the most vulnerable workers. Our legal framework already ensures that employers should always treat their employees fairly, and our good work plan will introduce the biggest upgrade in workers’ rights in a generation. In the retail sector specifically, the industry-led Retail Sector Council has identified that employment is a key priority for the workstream and we will be discussing that on 20 June.
At the last BEIS questions, my right hon. Friend the Business Secretary gave a positive response to my suggestion of a wide-scale roll-out of solar on every public sector building—every school, hospital and prison. Is he interested in taking that proposal forward?
I am indeed. I set out to my hon. Friend a means by which that can be financed. In our response to the Climate Change Committee’s report, we will be setting out further measures that we can take to accelerate our decarbonisation.
(5 years, 6 months ago)
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British Steel has been clear that Members of this House should vote for the deal, which I have voted for three times. All Members should reflect on the real-world impacts of the decisions that we make in this place, or the lack thereof, on businesses and the people we represent.
The Minister is right to consider jobs at risk, particularly when they relate to what are hopefully relatively short-term Brexit uncertainties, but to be fair Greybull did buy the business after the referendum and therefore might have expected some volatility ahead. Will the Minister confirm to the House that if he decides to support the business, it will be an isolated case, rather than an ongoing policy of supporting failing businesses?
All support that is provided for businesses has to be compliant with UK domestic law and EU law. It has to pass various commerciality tests to be legal and compliant with state aid rules. We always stand ready to work with UK businesses to protect UK interests and jobs, but any support that we provide has to be legal.
(5 years, 6 months ago)
Commons ChamberThe hon. Gentleman should celebrate the fact that, when it comes to renewable energy, we are the leading nation in the world for the deployment of offshore wind. We are creating jobs right throughout the country, and many constituencies have people in good jobs because of the leadership in renewable energy that we have displayed. We will go further in the years ahead.
Solar plus battery storage will soon be commercially viable without any subsidy. Is now the right time to plan for a huge deployment of solar on every public building, school, hospital and prison?
My hon. Friend makes an excellent point. If there is the possibility of more renewable energy than was previously contemplated and we can store it, we will solve our energy needs for the future, thereby helping business and consumers. I shall take up my hon. Friend’s suggestion.
(5 years, 8 months ago)
Commons ChamberThe hon. Gentleman knows that I have been in discussion with the industry. The sector has participated in the development of the path to the decarbonisation of vehicles, and it is important that we are consistent with that. However, part of that process is about recognising that buying a diesel car is a perfectly reasonable choice for many people, but some people have got the wrong impression from the announcement.
My hon. Friend is a passionate campaigner in this area and for his constituents, and he knows that I would particularly like to tackle this matter. Insolvency practitioners must adhere to the insolvency code of ethics and must not allow conflicts of interest to override the fundamental principles of objectivity. Breaching the code may result in regulatory action, such as a fine, reprimand or, in the most serious of circumstances, the removal of a licence. The code is currently being updated by the recognised professional bodies that license insolvency practitioners, but I will continue the dialogue with my hon. Friend on this matter.
(5 years, 8 months ago)
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The Minister will have heard the hon. Lady’s comments, and I hope that she takes account of them, because a minimum floor price would put the sector on the same footing as the offshore wind industry, which benefits from the certainty that contracts for difference provide, and fossil fuel investors, who benefit from the capacity market.
I congratulate my hon. Friend on securing this important debate. I note that the Renewable Energy Association has lobbied for a market-based solution, which this clearly is. However, I share some of her concerns that, without certainty on pricing, some people will be deterred from investing here in the first place, unless we can get the matter right.
I agree with that assessment, which is why I argue that a minimum floor is needed. I am afraid that failure to extend that kind of certainty to small-scale prosumers will give the impression that the Government are more comfortable with big business than with small producer-consumers.
A fair minimum export price will ensure that consumers are not ripped off while the industry and the new regulation sort themselves out. It will also encourage suppliers to get their systems in place in readiness for market-wide, half-hourly settlement, which will help accelerate the smart energy transition. If a minimum floor price was to be informed by the system imbalance price, it would ensure that all other generators and prosumers could be treated equally, as required by article 21 of the renewable energy directive, without inhibiting innovative smart offerings.
Additionally, the commitment to a zero floor price, while welcome, is insufficient. No country in Europe asks prosumers to pay to put electricity into the grid. Likewise, in 2018 just 0.4% of daylight hours were a negative pricing period. Therefore, given the rarity of such an occasion, this is not what prosumers need. What is needed is the minimum floor price, which would have a transformative impact on the prospects for the sector, not simply a zero floor price.