Lord Judd
Main Page: Lord Judd (Labour - Life peer)“( ) The Authority must demonstrate that it has complied with its general environmental duties as stipulated in national and international legislation.”
Lord Judd
My Lords, I shall also take the opportunity to speak to Amendments 94, 95 and 96. I declare an interest as a vice-president of the Campaign for National Parks, a patron of the Friends of the Lake District, and a member and supporter of the Campaign to Protect Rural England and other environmental agencies. In the context of this amendment, I pay special tribute to the John Muir Trust, which has done outstanding work in this area and with which I have been incredibly fortunate to co-operate in the preparation of what I want to say.
We must never forget that we are custodians of this planet for future generations. Our responsibility to safeguard the environment, especially those parts of it that our generation has not so far severely damaged, must always be at the forefront of our minds and policy-making. We must never fall victim to misguided, damaging and unnecessary short-term measures, whatever our commitment to what is regarded as essential growth. I fear that some government policies that are intended to protect the environment are instead driving action that is damaging it. In particular I think of the deployment of energy infrastructure on our most precious and wild landscapes.
My amendments are certainly not intended to challenge the Government’s climate change goals and their efforts to move to a green energy system. As I made clear in Committee, I fully support these but I remain firmly of the view that, in certain respects, we are losing sight of the purpose behind them. We cannot safeguard the environment for future generations by targets alone. Here and now—right now—we must give equal regard to upholding and enhancing existing hard won protections for the UK’s natural environment—its landscape, ecosystems, habitats and biodiversity. Energy is not an end in itself; we need it to have a society worth living in, but sadly we seem to be in an era of public policy -making where protections for landscapes and the environment are seen as an obstacle to growth and to keeping the lights on. It should not—and indeed need not—be a case of having to make a choice. The present Government pledged to be the greenest ever but, in reality, safeguards for the environment are being systematically weakened.
The Bill, in its current form, is no exception. Energy infrastructure has huge impacts on the environment. These amendments seek to prevent the Bill eroding environmental safeguards and to ensure that they are meaningful and effective. The first amendment would ensure that the strategy and policy statement places a responsibility on Ofgem to demonstrate compliance—and I emphasise those words—with its general environmental duties. This includes duties to have regard to the purposes of national parks, areas of outstanding natural beauty and the Norfolk and Suffolk Broads.
When I put forward a similar amendment in Committee, the Minister sought to reassure me that the strategy and policy statement would not override Ofgem’s existing duties to contribute to sustainable development, and that those duties would still apply. In the Minister’s view, therefore, the amendment was unnecessary. I understand her point and I also appreciate that she may wish to avoid a detailed amendment listing all the various duties. However—noble Lords must forgive me if I did not make this clear at an earlier stage—that is really not the issue. The point is that, while there are indeed existing legislative duties that would not change, there is currently no explicit requirement in the Energy Bill for Ofgem—again I underline these words—to demonstrate compliance with them. The amendment would also require the authority to demonstrate compliance with its obligations under the conservation of wild birds and habitats directives, which is crucial given the perilous state of the UK’s biodiversity.
The second amendment, also to Clause 123, would insert on page 92 after line 39:
“The Secretary of State shall issue guidance on social and environmental policies to which the Authority shall have regard in carrying out its functions”.
The purpose of the amendment is to ensure that the Government issue social and environmental guidance to Ofgem. At the moment, Clause 129(1) repeals, and does not replace, sections in the Gas Act and the Electricity Act that provide that the Secretary of State shall issue guidance on social and environmental matters to which the authority, Ofgem, shall have regard when carrying out its functions. In the Explanatory Notes, the Government argued:
“The strategy and policy statement will replace existing guidance for the regulator on social and environmental matters”.
However, surely replacing existing guidance on social and environmental matters means precisely that: replacing it—that is, providing new guidance and not removing all reference to it, which is what has apparently happened.
Specifically, Clause 123(1) requires Ofgem to,
“have regard to the strategy priorities set out in the strategy and policy statement when carrying out regulatory functions”.
As I understand it, these include functions to which the principal objective duty is applied. This duty is to be found in the Gas Act 1986, with equivalent provisions in the Electricity Act 1989. These provisions make it clear that the principal objective is to protect the interests of existing and future customers of gas and electricity and, wherever appropriate, to promote competition.
Therefore, Ofgem’s commercial responsibilities are clearly defined. However, because there is no explicit requirement in the Bill for the Secretary of State to set out social and environmental guidance to Ofgem, such as exists at present, the priority given to social and environmental factors in public policy will be significantly weakened.
The repeal of the Electricity Act and Gas Act clauses will result in another significant change that will weaken environmental protection. Currently, these clauses ensure that any guidance on social and environmental matters issued by the Secretary of State is on an equal footing with the principal objective duties: namely, the protection of customers and the promotion of competition. However, once they are repealed, any guidance that the Secretary of State deems it appropriate to issue in future will be subordinate to the principal objective duties in a way that is not the case at present.
I am afraid that the Minister’s responses in Committee failed to reassure me that there will be equivalent social and environmental protection if Clause 129 is passed into legislation. In fact, to be honest, they further convinced me that it is the Government’s intention to subordinate environmental considerations to the commercial imperative.
The Government may well feel that there is no need for this amendment as Ofgem’s existing duties to,
“have regard to the effect on the environment of activity connected with the conveyance of gas through pipes or with the generation, transmission, distribution or supply of electricity”,
remain intact because Section 3A(5) in the Electricity Act and Section 4AA(5) in the Gas Act are not being repealed. However, surely without guidance from the Secretary of State on the meaning of “have regard to” and the policies to be followed, compliance with the duties is left to the discretion of the regulator. Surely the interpretation of this duty is not a matter to be left to the regulator; it is for the Government to determine the social and environmental factors that should be considered by the regulator and the value that should be placed on them. The amendment would ensure that provision for the Secretary of State to issue social and environmental guidance to Ofgem remained in primary legislation in accordance with what, I submit, was the original intent as set out in the guidance to the Bill.
Lord Judd
Perhaps I may ask the Minister a question, because her answer would be immensely helpful for me in considering what to say in my reply. Will she reassure me that she will write to me a letter, which can be placed in the Library and elsewhere, setting out precisely how the Government will satisfy themselves that Ofgem will pay due regard to the effect on the environment of activity connected with the conveyance of gas through pipes or generation, transmission and the distribution or supply of electricity? What measures and benchmarks, and associated matters, will be taken into account and used in establishing those benchmarks?
Baroness Verma
My Lords, of course I am absolutely happy to ensure that I write to the noble Lord on the points that he has raised today. I also say to my noble friend that I hope I have reassured him that planning decisions are as they have been laid out and that we will take very much into account the views of the local communities, as has been laid out by the Secretary of State for the Department for Communities and Local Government. I hope that on that note I have conveyed enough reassurance for the noble Lord to withdraw his amendment.
Lord Judd
My Lords, first, I thank those who have spoken in support of my amendments. I particularly welcome the strong support from my Front Bench. The Minister certainly has reassured me that she takes these issues seriously. I think that she is a civilised person who sees the force of what I have been arguing. I just would like to make several observations. First, we all bemoan, and English literature is full of references, what happened in the Industrial Revolution. Without in any way undermining the drive and everything that was so important in the Industrial Revolution, with the benefit of hindsight we can see that things could have been done much better. We would not have seen the same degree of rape and misuse of valuable rural, scenic assets in the country.
My second observation draws on the OECD report that has just been published. One of the reasons why the UK apparently scores relatively highly as being a good place to live is because of the environmental considerations of living here. We should jealously preserve that quality in our life. I have no doubt whatever that, in the context of what I have come to regard a very ideological age with its total commitment to the market, the quantative issues in forward policy will be very well put forward and strenuously advocated. If we really take seriously the preservation of our heritage, the landscape and all that makes for a wonderful country in which to live, those arguments will not necessarily automatically by market mechanisms come forward in the same way, because these are public goods. Therefore, from this standpoint, a much stronger argument about just what it means to take into account these considerations and who should be involved in representing and presenting them should be in the Bill. At the moment, because she is a very reasonable person, I am sure that the Minister will understand that however much aspiration there is in the drafting of the Bill, it leaves an awful lot to the subjectivity of the regulator. To be told that the regulator is going to have to report annually on the fulfilment of the objectives is, again, a nice aspiration; it is full of good intention, I am sure. But against which precise benchmarks is he going to report? That is why the letter could be so important, and why I hope—I am sorry, I should have stipulated this—that it will be with us before Third Reading.
From all the standpoints, it is important to recognise that we are talking about what the right reverend Prelate the Bishop of Newcastle expressed so well, as put to us by the noble Viscount, Lord Ridley. We are talking about our duty to the future. I am sure no noble Lords want their children and grandchildren to grow up in an age in which we have enshrined in law and legislation the need to know the price of everything, but in which we have allowed the decline of knowing about the value of things. That is why the considerations before us are of such importance.
I do not question the Minister’s goodwill, but I suggest to her—because we are friends, I can put it to her bluntly—that in the light of experience it could quickly look like an awful lot of waffle. What matters is to have some muscle in the Bill, supporting the excellent aspirations of the Minister, and that we ensure that the right course is taken. At this stage, in thanking those who participated in this, I beg leave to withdraw the amendment.