Energy Prices
Debate between Lindsay Hoyle and Mike Weir(9 years, 6 months ago)
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Mr Mike Weir (Angus) (SNP)
For those of us who have taken part in a few of these debates, there seems to be a depressing familiarity to the arguments that are put forward. Today, the Secretary of State has told us that switching is the answer. To my mind, and based on my experience, switching supplier is subject to the law of diminishing returns. Someone might get a better deal the first time they switch, but they will not get a much better deal the second or third time. Switching is a limited answer to some of those problems.
The right hon. Gentleman mentioned new entrants to the market. Yes, there are new entrants, but many are internet based and depend on direct debit, and the very people whom we most need to help with lower fuel prices are those least able to take advantage of those deals. Many perhaps do not have a bank account or may already have a debt with an existing supplier that means new suppliers will not take them on. The idea is a fallacy. Switching to new entrants in the market will not address the problems that we face with energy prices. As the hon. Members for Glasgow North West (John Robertson) and for Wansbeck (Ian Lavery) mentioned, fuel poverty is at the root of this issue, and we must do something about it.
I talk about Scotland because that is what I know best. The Scottish Government have invested £300 million since 2009 on a raft of fuel poverty and energy efficiency programmes, and they will spend a further £94 million this year and next. Figures from Energy Action Scotland show that in 2013-14 an average of £36.48 central Government funding was invested in energy efficiency programmes for low-income households in Scotland, compared with £31.31 in Wales, £27.55 in Northern Ireland, and a paltry £3.52 in England.
The number of households in fuel poverty continues to be a disgrace. The 2013 Scottish house condition survey shows that 39.1% of Scottish households were in fuel poverty. Last year, despite the many schemes aimed at reducing fuel poverty, that number increased by 100,000 to reach 940,000. That increase is appalling, and it is almost entirely down to the rise in fuel prices. Indeed, it has been estimated that the fuel poverty rate for 2013 would have been 11% rather than 39%, if fuel prices had risen in line with inflation between 2002 and 2013. That demonstrates a fundamental failure of the UK regulated energy market.
The UK Government’s approach is to give lectures on switching, but that will not fix the problem. In Scotland there is a more determined attempt to approach the issue through home energy efficiency programmes, which also helps combat climate change—I do not accept anything said by the hon. Member for Monmouth (David T. C. Davies) on that issue. However, all that is being wiped out by the inexorable rise in fuel prices, and the changes made by the UK Government to the energy companies obligation have impacted Scotland adversely.
I understand Labour’s position on a freeze or cap, or whatever it now wishes to call it, but there may be difficulties with that approach. Having said that, I am prepared to ask my colleagues to support the motion since I am becoming fed up with the actions of energy companies. I have often said that energy companies offering deals for insulating homes and so on is perhaps not the best approach, because people no longer trust energy suppliers—hardly surprising, given what is happening with some of them. We must do all we can to assist vulnerable customers, but wholesale prices are falling and that has not been adequately reflected in the retail price of energy.
The motions wishes to put a statutory duty on the regulator, but as I said in an intervention, my experience of regulators does not fill me with confidence that that would happen quickly, even with a statutory duty. Indeed, I fear that it would end up being kicked into the long grass as the regulator takes its time, holds an endless investigation into the matter, considers the factors leading to increases, analyses price movements and so on—we all know what Ofgem and the Competition and Markets Authority are like. We might all have retired before we have a decision, and matters will have moved on to a new price cycle by then. If we are going to impose such a duty, we must ensure a strict and short time limit for considering the issue and coming to a decision, so that people get the benefit—
Food Banks
Debate between Lindsay Hoyle and Mike Weir(9 years, 7 months ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Interventions need to be short. We are trying to get everybody in, and it is not going to happen at this rate.
Mr Weir
Clearly the main issues are a direct result of the current Government’s policies. Many people turning to food banks have been “sanctioned”, to use the Government’s word, often for seemingly unfair reasons. Some 86% of food banks say that they have seen an increase in referrals for that reason. It is not just the Trussell Trust making that point; Barnardo’s also does, citing the rising cost of living, cuts in welfare support and benefit delays.
Those matters are under the Government’s control. There do not need to be delays in sorting out benefits when circumstances change or for there to be sanctions for seemingly minor reasons. From my constituency experience, there appears to be a particular problem when someone wishes to change from a dual to a single claim. They cannot get a clear answer on what information is required to prove their status. Such cases can drag on for months, which is completely and utterly unacceptable. Sorting that out would not necessarily increase costs and would certainly reduce the misery that many of those who use food banks are suffering.
The use of food banks is not just about benefits. It is also about incomes, as many Members have said. The Scottish Government are promoting the living wage among their own employers, and the new ScotRail contract will include a living wage clause. SSE has just become a living wage employer. Food banks are not an easy route for anyone, and those who will be most pleased when food banks cease to be required are the volunteers who are putting so much into running them and helping those in need.
Energy Bill
Debate between Lindsay Hoyle and Mike Weir
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We still have four speakers wishing to speak in the debate, as well as Mr Yeo, who I am sure will want to speak briefly again at the end. I call Mike Weir to speak, ideally for four or five minutes.
Mr Weir
I strongly support the amendments in this group. It is imperative to decarbonise the energy sector, and I believe that including a decarbonisation target in the Bill would give a clear and unmistakeable message that we intend to do so. The first reason for adopting such a target is that we must reduce our carbon emissions. The energy sector is a major contributor to carbon emissions and the Committee on Climate Change has made it clear that decarbonising power is the cheapest way of meeting our overall carbon budgets.
There is, at best, a mixed message coming from the Government on how they intend to proceed with the decarbonisation of energy. In the Bill Committee, witnesses told us time and again of the need for a decarbonisation target to ensure that a clear message was sent to those involved in the industry. The mixed message coming from the Government could seriously harm our efforts to attract not only new renewables generation but, crucially, the supply chain that will ensure that we reap the economic benefits and the jobs that go with them. In opposing the decarbonisation target, Ministers have made the point that other nations do not have such a target. That is true, but many of those countries are already ahead of us in creating a supply chain that can supply investment in renewable energy in their territories. We are trying to attract that supply chain here and to ensure that it is established so that we do not simply continue to import the infrastructure that we need to create green energy for the future.
Much was said earlier about the situation in Germany. Although it is true that Germany does not have a decarbonisation target, it recently announced a very ambitious 2030 renewable target, which includes 25 GW of offshore wind and a budget of €23 billion. I understand that France, too, is considering moving towards such a target, so there is movement elsewhere within the EU on such targets, and we should not be left behind.
In the evidence session, Danielle Lane of DONG Energy made it clear that the 2020 target is presently at the cliff edge, and that the industry needs certainty about the direction of travel after 2020—a clear sign that after that date there will continue to be a clear commitment from all parties to continue along the route of decarbonisation.
The issue is very important to Scotland, where the development of green energy is a vital part of the revitalisation of our manufacturing industry. It is interesting to note that the Scottish economy has achieved some growth over the last two quarters, much of it through the energy sector. Scotland’s offshore potential is huge—25% of the entire European potential. If we are able to harness that, we could attract billions of pounds-worth of investment and create tens of thousands of highly skilled and sustainable jobs. Indeed, Scotland’s offshore wind route map outlined the potential for £30 billion-worth of investment with up to 28,000 direct and 20,000 indirect jobs by 2020.
We already have strong offshore experience in the oil and gas industry, particularly in the north-east, and many of these skills could be transferable to new offshore renewable energy developments. I would cite the example of offshore wind, which I believe has a strong vibrant future. There are plans to install up to 10 GW of capacity in Scottish waters over the next decade, including three projects off the coast of my Angus constituency. Many more sites, alongside commercial wave and tidal generation, are being looked at for deployment in the 2020s. We must ensure that we send a clear and unambiguous message that we want these developments, and that we will continue to push for the decarbonisation of the energy sector.
It is important to set the targets now because companies are looking at long-term investment. It will be many years before these investments come on stream, but the decisions affecting 2020 are being looked at in the boardrooms now, and if we delay in putting forward our plans for decarbonisation, we may well lose out on all the potential.
Over the last few years, both private and public investment has been made to help stimulate sustainable, long-term growth in offshore renewables, including developing the technology. The deep waters off Scotland’s shores have specific problems, but many of them have already been tackled by oil and gas development, which might point the way to dealing with offshore wind arrays and onshore development at our ports such as Dundee and, in my own constituency, Montrose. That development, however, is based on the assumption of having a long-term stable market for manufacturers.
Firms such as Gamesa, Areva, Mitsubishi and Samsung have indicated an intention to establish manufacturing plant in Scotland in order to meet the expected opportunities for offshore wind development. The difficulty we face with this Bill, however, is that we can be sure of funding only up to 2020—and then, as DONG Energy says, we face the “cliff edge” of uncertainty. Many of those who are considering investments do not feel that there is sufficient reassurance of a long-term market for their products beyond that date, which could lead them to reconsider or delay any decisions on investment. Such delays could lead to a significant loss to the economy and check ambitions to create a new greener manufacturing base, especially when, if companies decide to go ahead within the compressed time that is certain, there would be a considerable shortfall in the ability of UK-based manufacturers to meet the demand for turbines, which will inevitably lead to the importation of much of the infrastructure, creating jobs elsewhere but not in Scotland.
I finish on the point that decarbonisation is important not just for climate change benefits, but for the real economic benefit of creating sustainable jobs for the future.
Military Covenant
Debate between Lindsay Hoyle and Mike Weir(11 years, 8 months ago)
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Mr Mike Weir (Angus) (SNP)
I am glad to be able to make a brief contribution to this important debate. I fully support the motion. I would have preferred it of it had it referred to “nations and regions”, but we will not fall out over that.
Scotland has a long military tradition, of course, and Scottish soldiers, sailors and airmen and women have served and continue to serve with distinction and courage. They are justly proud of their reputation as among the best in the world. They, their families and veterans are an integral part of Scottish society and their local communities. I represent 45 Commando, based in RM Condor by Arbroath. Many personnel have married locally and settled in the area after leaving the service. Recently, the unit raised a lot of funding, much of it locally, to provide the Woodlands memorial garden to commemorate those who have fallen in conflict, from Northern Ireland and the Falklands to Iraq and Afghanistan. It not only remembers them but provides an opportunity for all those who have served to have a quiet place for reflection, as well as providing a place for children to play. It reminds us that not only those who serve but the families are important. Those families are often left behind, worrying about those who are in the services, whether they are in Afghanistan or elsewhere..
Many of the services required by the military covenant are devolved in Scotland, including health, education and housing, and are the responsibility of the Scottish Government. The Scottish Government are committed to the armed forces covenant and to ensuring that no member of the armed services, service family member or veteran in Scotland faces disadvantage when accessing services or support. We have a veterans Minister, Keith Brown, who is a former Royal Marine from 45 Commando who served in the Falklands war. We have published a paper, “Our Commitments”, which sets out the Scottish Government’s support for the armed forces community in Scotland and has been widely welcomed, including by the head of veterans services at the MOD’s service personnel and veterans agency.
I want to address one specific point. I was very disappointed that the hon. Member for West Dunbartonshire (Gemma Doyle) made a ridiculous political attack on housing, because that is an important issue for veterans and servicemen. The Scottish Government have introduced legislation to ensure that service people’s local connections are taken into account when they leave, which is something that Labour never did in its eight years in power although it was Labour that introduced the original legislation. We do not have a stock of housing we can just pull out of a hat and give to anyone who comes along—there is a serious difficulty, irrespective of what the covenant says, with the supply of social housing.
Too often in the past, service people have been told that they have no local connection because they have moved around a lot, and their local connection is in an area where perhaps they have not been for many years, as a result of their service. The Scottish Government have ensured that they are treated as having a local connection; they will be considered for social housing. However, there is not enough social housing, because successive Governments—Labour in particular—failed to build social housing when they had the chance. The Scottish Government are now building new social housing to deal with the lack that there has been for so long. I think it is appalling—