Energy Bill [HL]

Lord Cormack Excerpts

Wednesday 21st October 2015 Lords Chamber

[Lord Howell of Guildford]

I did not want to make an intervention on an intervention, but may I say something now? I agree that we are talking about whether Clause 66 should stand, but the argument has constantly been widened, and the noble Baroness who just intervened raised again the question of what all this does to energy costs, and whether energy costs are important. The noble Baroness, Lady Worthington, made some comments about that as well. The facts are the facts. The director of the Energy Intensive Users Group has said that,

“a third of the cost of industrial electricity bills in Britain is being spent on green energy taxes, such as the two-year-old carbon price floor support mechanism … and this would rise to about half of all bills by 2020”.

The director of UK Steel has said that,

“rising energy costs were a critical reason for the crisis afflicting the industry, which also led to the collapse of the SSI steel plant in Redcar last month”.

And so it goes, on and on. We cannot just dismiss all this. It cannot be pushed away. I agree that it should not be the central issue in the debate on this clause, but some of the remarks that have been made cannot be allowed to stand unchallenged, because they are just not true.

[Lord Cormack (Con)]

My Lords, I strongly support the wise words of my noble friend Lord Ridley. I am one of those who believes that certain types of power are uneconomic, unreliable and unsightly. It is because of the latter point as much as anything else that the Prime Minister made a commitment during the general election campaign, which was given force in the manifesto, that we would not fly in the face of local opinion, as we often have in the past, and build wind farms where they were not wanted. The manifesto commitment is entirely clear, and it is indeed flouting the Salisbury convention to seek to delete it. I very much hope that your Lordships will not do that. We have a duty to examine and scrutinise legislation, and when we believe it is wrong, to ask the other place to think again—but here we are seeking to delete a fundamental part of the Bill.

I am a great admirer of the noble Baroness, Lady Worthington; I hope that does not embarrass her. She brings real distinction to our debates, and she speaks from true knowledge—but, by Jove, she was fishing around this afternoon. I was somewhat amused when she tried to call in aid Lady Thatcher; I am not sure that Lady Thatcher would have entirely endorsed her remarks. She then made a lovely remark about Mr Corbyn, saying that he probably did not agree with fracking or nuclear power—but that didn’t matter, because it was not going to be reflected in Labour Party policy. We are clearly in a period of political anarchy at the moment, and it will be interesting to see how long Mr Corbyn lasts, and how long his party lasts with him—but that is not what we are debating this afternoon.

--- Later in debate ---

[Lord O’Neill of Clackmannan]

The existing system may not be perfect and it is a source of frustration for many people, but it is tried and tested and it is seen to be fair. The implication of this legislation is that it is going to be set aside.

[Lord Cormack]

My Lords—

[Lord O’Neill of Clackmannan]

I am sorry. I realise that we are moving towards a vote and I do not wish to take much more of the House’s time. All I want to say is this. It is very dangerous for people, first, to reinterpret manifestos once they have been the substance of electoral victory; and, secondly, to use that as an excuse to undermine elected representatives and local government who have a sensible and fair means of determining the priorities of the planning requirements for all of the communities they represent.

[Lord Wallace of Tankerness]

My Lords, I do not wish to detain the House for long. When we engaged after the debate on recommital late last week, we hoped that the Government might have moved a lot further than they did. I acknowledge the amendments that have been made, but they do not go to the heart of many of the concerns of the industry. In fact, there is still a blatant unfairness for those who have observed good practice and have tried to work with local planning authorities.

On the point made by the noble Lord, Lord Cormack, that local democracy matters, developers have worked alongside communities and planning authorities, but because they did not take the route of having a deemed refusal, they are falling foul of this.

[Lord Cormack]

One of the things we have to bear in mind is that a number of wind farms were granted permission not by local authorities, but by being overruled from the top. Indeed, Lincolnshire County Council was against a number of wind farms that have been thrust upon the county.

[Lord Wallace of Tankerness]

I think that the noble Lord almost makes my point because, as far as I understand what is being proposed by the Government, local authorities which have refused an application before 18 June, but which was subsequently appealed successfully on a decision taken by Ministers, will actually qualify. But an agreement reached by locally elected people and a locally elected planning committee after debate, consideration and engagement with the local community, but where the subsequent consent as part of that route due to the cycle of meetings was not given until after 18 June will not qualify. Perhaps he has done so inadvertently, but the noble Lord, Lord Cormack, profoundly makes the point that we are making. There is an inconsistency and an unfairness in what the Government are proposing. There is inconsistency between Section 36 applications for smaller developments added on to existing developments and those which do not need Section 36 applications. I do not believe that the Government have made out the case for fairness of treatment, given the test which their own Minister articulated yesterday.

I am sure that we will debate the Salisbury convention at some stage, and I hope that we will take note of the report of the House of Lords and House of Commons Joint Committee on Conventions, which sat around 10 years ago. My noble friend Lord Wallace of Saltaire, who was then the deputy leader of my party in your Lordships’ House, emphasised the Liberal Democrats’ view that,

“‘the Salisbury-Addison Convention was an historical negotiation between the Labour Party in the Commons and the Conservative Party in the Lords’ and therefore not relevant to current circumstances”.

We articulated that position almost 10 years ago, and I think that the report itself accepted that things had moved on.

The noble Baroness, Lady Worthington, said that it was an opportunity for the Government to think again. We certainly want to engage with them in thinking again, because I do not believe that what we have at the moment is fair to developers who had a reasonable expectation that a system which was due to close in March 2017 has been brought forward by a year. In the end, as the Government’s own impact assessment states, the central estimate is around 30p on the electricity bill of the average household. Given the potential damage to the industry and the damage that this is doing to investor confidence in other areas of the renewable industry, it is important that the Government should think again. They have not been able to come up with satisfactory ways of addressing some of the many legitimate complaints that the industry has expressed.