Oral Answers to Questions

Debate between Lisa Nandy and David Heath

Thursday 25th October 2012 Commons Chamber

[Lisa Nandy (Wigan) (Lab)]

10. What recent assessment he has made of the effectiveness of the Financial Reporting Council in respect of mandatory carbon reporting.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr David Heath)]

Officials are in discussion with the Financial Reporting Council ahead of the introduction of mandatory carbon reporting to ensure effective enforcement of this new requirement.

[Lisa Nandy]

In a recent written answer, the Minister estimated that the benefits of mandatory carbon reporting stood at £741 million over 10 years compared with just £28 million in compliance costs. Given the clear economic, social and environmental benefits of mandatory carbon reporting, with he give the FRC the teeth it needs to crack down on companies that continue to flout the law?

[Mr Heath]

My Department does not have responsibility for the Financial Reporting Council—the hon. Lady will understand that—but it has proved very effective at ensuring that legislation that applies to carbon reporting is upheld. We recently held a consultation on the draft regulation, which closed on 17 October, and we received about 100 responses. We will look very carefully at them.