Lord Barker of Battle
Main Page: Lord Barker of Battle (Conservative - Life peer)(10 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Zac Goldsmith (Richmond Park) (Con)
12. What assessment he has made of the first quarterly green deal and energy company obligation statistics.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
It is early days, but the green deal is building on solid foundations and a robust small and medium-sized enterprise supply chain. Nearly 40,000 green deal assessments have been carried out and more than 70,000 homes have already been given green measures through the energy company obligation. Innovative private finance is now starting to flow. While only four green deal finance providers had entered the market by June, that number has now doubled to eight and is expected to reach around 50 by the end of the year.
Zac Goldsmith
I strongly support the Government’s efforts to mainstream energy efficiency via the green deal, among other measures. However, it is widely felt that the scheme needs a serious boost if the Government’s ambitions are to be realised. To that end, will the Minister do all he can and use all his influence with the Treasury to ask it at least to consider bringing in some form of stamp duty rebate, or something similar, for homes participating in the green deal in order to maximise the chances of its success?
Gregory Barker
I am very glad to say that the Treasury is right behind the green deal and that the Chancellor has given £200 million to help drive demand for it. We are actively considering how we are going to spend more of it, as there is still a significant amount that has not been committed. We will make further announcements in the autumn.
I also congratulate my hon. Friend on his successful campaign to ensure that service families can benefit from the green deal and the ECO. I assure him that we are working closely with the Ministry of Defence to ensure that service family accommodation will for the first time mean warm and comfortable homes.
Ian Lavery (Wansbeck) (Lab)
In times of austerity, why on earth would people want to enter a green deal arrangement where the interest rate is three times higher than what they can get on the high street? Apparently, there are penalties for early repayment.
Gregory Barker
If ever there was an out-of-touch comment, that was it. How many of the hon. Gentleman’s constituents can get an interest rate on the high street of just 2% or 3%? That is just cloud cuckoo land nonsense. The vast majority of his constituents will be able to access green deal finance. I am glad to say that, with over 40,000 assessments, there is strong early demand. It is early days, but we are very encouraged by what we are seeing.
Andrew George (St Ives) (LD)
14. What steps he is taking to promote investor confidence in renewable energy.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The coalition is committed to cleaner energy and cheaper bills. That means unlocking billions in new investment across the energy sector. Transparency, longevity and certainty for investors are key. That is exactly what our electricity market reforms will deliver.
Andrew George
I am grateful to the Minister for that response, but investor confidence is essential and investors need to make decisions now, otherwise the UK will miss the boat in the forthcoming development of renewables. Therefore, what discussions has he had with investors and what advice have they offered the Government on what is required to establish investor confidence?
Gregory Barker
It is fair to say that the DECC ministerial team has an unprecedented level of engagement with investors, not just from the UK but globally. Last week, I was with the Prime Minister, the Secretary of State and Masdar from the United Arab Emirates at the inauguration of the London array, the world’s largest offshore wind farm. We have proactive engagement with global investors, who all say the same thing: “We back your electricity market reforms, crack on with them, let us get deploying and get past the 13 years of under-investment that we saw under Labour.”
Dr Sarah Wollaston (Totnes) (Con)
15. What assessment he has made of the effect of large-scale solar arrays on rural environment and agricultural land; and if he will take steps to help communities resist inappropriate developments.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
Solar PV has a big, bright future in the UK, but not at any price and not in any place. Our priority continues to be to work with the industry to drive down costs, but it is also to ensure that deployment is focused on buildings and brownfield sites, not prime agricultural land or areas of outstanding natural beauty.
Dr Wollaston
I am delighted that the Minister shares my concern and the concern of communities in Diptford, south Devon, and other areas about the inappropriate proliferation of very large-scale solar PV on greenfield sites. Could he go further and set out the practical steps that he is taking to ensure that these developments occur in the right places?
Gregory Barker
My hon. Friend is absolutely right. Well-sited solar can be great and often is, but inappropriate development risks alienating public support. That is why I am pleased to say that, in the next few weeks, as a result of close work with the Department for Communities and Local Government, we will issue revised planning guidance for renewables. That will mean that renewable energy does not automatically override environmental protections and the planning concerns of local communities. It will also make it clear that care should be taken to preserve heritage assets and beautiful countryside, and include the impact of planning proposals on views and landscape when it comes to things such as solar. That is in addition to our sustainability criteria, on which we are working closely with the industry.
Simon Wright (Norwich South) (LD)
20. What the Government’s preferred options are for structural reform of the EU emissions trading system.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The UK supports urgent reform of the EU ETS including through cancellation of an ambitious volume of surplus allowances. We are also examining other options to deliver our climate goals.
Simon Wright
I thank the Minister for that response and I strongly welcome the role the UK played in securing a positive vote in favour of backloading in the European Parliament last week. May I urge Ministers to ensure that the UK continues to show strong leadership in strengthening the ETS and tackling the enormous over-supply of allowances?
Gregory Barker
I can assure my hon. Friend that that is exactly what we are doing, and we will continue to press for a higher level of ambition in Europe on a 2020 target as well.
Andrew George (St Ives) (LD)
T1. If he will make a statement on his departmental responsibilities.
Rushanara Ali (Bethnal Green and Bow) (Lab)
T3. Last year the Chancellor boasted he was the first to fund a green investment bank, but that is not actually the case, because the Government are now borrowing £158 billion more than planned, and we will not have a proper green investment bank until 2016 at the earliest. How can the green investment bank be part of a growth strategy, and will the Minister provide an update on this?
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The hon. Lady could not be more wrong. The UK Green Investment Bank, which was introduced and created by this coalition—the Labour Government had 13 years to introduce it, but did nothing—has been going for only a matter of months but in that time it has invested £635 million and mobilised, in total, £2.3 billion. It has £3 billion of capital, which was added to in the last spending round, so billions of pounds for green investment are coming directly from this Government, using our genius for financial services. This Government are pioneering it.
Mr Douglas Carswell (Clacton) (Con)
T4. Wind energy subsidies were supposed to deliver a reduction in costs by creating economies of scale and driving technological innovation. After the recent strike price announcements, it is clear that wind turbines work only because they are being given the same level of subsidy as before—subsidy begets subsidy, not sustainability. Does the Minister seriously see a future for wind turbines without subsidy and, if so, when?
Mr Mike Weir (Angus) (SNP)
T7. Ministers have rightly made it clear that replacement boilers under the green deal and the ECO should be technologically neutral, yet the reality on the ground is that most of the big six energy companies will not include liquefied petroleum gas or oil boilers within the scheme, citing cost. Yet again, it seems that off-grid customers are being left out. Can Ministers do anything to put pressure on these companies to include such boilers within the schemes?
Gregory Barker
I understand the hon. Gentleman’s point. Obviously, it is a commercial decision for each company that operates within the green deal which technologies they are going to stock and offer to their customers. If customers are not satisfied, they should shop around. The great thing about the green deal is that it involves a plethora of choice; there are more than 1,000—I believe there are 1,250 or more—green deal installers now, so customers should shop around. We want to drive choice.
Richard Graham (Gloucester) (Con)
T5. The Minister will know that all existing nuclear power stations report operationally to EDF Energy in Barnwood, Gloucester—the home of British nuclear engineering. After my right hon. Friend has agreed the strike price and other details for the next generation of nuclear power stations, will he accept an invitation from me to visit Barnwood and the impressive nuclear academy training ground for so many graduates and apprentices in this vital sector?
Mr David Hanson (Delyn) (Lab)
Can the Minister give some comfort to the green deal installers in my constituency by telling me how many installations he expects this year rather than how many assessments he expects?
Gregory Barker
The right hon. Gentleman knows that what is innovative and unique about the green deal is the fact that it is encouraging a huge plethora of new entrants into the market. It is not an old-style left-wing centralised monolithic programme run from London. It is unleashing competition, small and medium-sized enterprises, and diversity and plurality. We therefore want the most that we can possibly deliver.
Harriett Baldwin (West Worcestershire) (Con)
T8. Setting up the green investment bank was one of the Conservative party manifesto pledges and I was pleased to hear in the reply to the hon. Member for Bethnal Green and Bow (Rushanara Ali) of the progress that is happening. What specific projects has the green investment bank been backing?
Gregory Barker
My hon. Friend is absolutely right that it was the Conservatives who set up the Wigley commission, which came up with the original scoping ideas for the green investment bank. In practice, it has been terrific. It has invested £30 million in the Wakefield waste project, £46 million in the Walney offshore wind farm and £57 million in Rhyl Flats. It is supporting the new industrial energy efficiency programmes and, of course, has put a significant slice of debt into the Green Deal Finance Company that will allow green deal finance to flow.
Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)
The Minister has made much of the 40,000 assessments that have taken place, but it is my understanding that only four people have signed up for the green deal. How many installations will there be in the year ahead?
Gregory Barker
The hon. Lady must understand that this is a 20-year programme, not some knee-jerk reaction. I know that the Labour party is heavily invested in failure and is made up of a series of doom-mongers who are never happier than when they are talking down the green economy. I have much greater faith in SMEs to deliver a transformational green economy than they do.
Charles Hendry (Wealden) (Con)
Does the Secretary of State agree with me that some people’s concerns about shale gas are based on fact but many are not? Will he ensure that his Department produces and maintains an up-to-date online database so that people can see what claims are evidently false and, where they are based on fact, what the Government are doing to address them?
Ian Mearns (Gateshead) (Lab)
The Minister has talked around the question of how many green deal assessments have turned into measures being introduced in homes. How many is it, Minister? How many homes have signed up for green deal measures?
Gregory Barker
As we know from the official statistics published in June, only a handful have completed the process. That is because finance only became available in the couple of weeks before those statistics were published. As I said in my earlier answer, the number of finance providers has now doubled to eight and we expect about 50 by the year end. Opposition Members can continue to carp and we will remember that.
Mr Philip Hollobone (Kettering) (Con)
I thank the Minister of State for visiting the Burton Wold wind farm in Kettering on Monday. Did he gain a favourable impression of the level of community support for it?
Gregory Barker
I had a terrific visit to Kettering and I would like to praise my hon. Friend and his council colleagues for a project which is an exemplar of the way to involve communities in supporting onshore wind and a range of energy efficiency measures, which are seen as part of an holistic whole, bringing new housing, new services and proper infrastructure in a well-planned way that is supported by the community.
Julie Hilling (Bolton West) (Lab)
We know that many older people do not adequately heat their homes, which puts them at risk of illness and death. Will the Minister update the House on any progress made in discussions with suppliers about the installation of cold alarms, which would alert householders and carers when temperatures become dangerously low?
Gregory Barker
I cannot give the hon. Lady an up-to-date view on that, but it is a very important measure in which I know that she has taken a great personal interest, so if I may, I will write to her and give her a bang up-to-date report of where we are.