Energy: Fourth Carbon Report

Lord Lea of Crondall Excerpts

Tuesday 17th May 2011 Lords Chamber

[Lord Marland]

The right reverend Prelate hits on a very topical issue. I am very happy to say that tomorrow we will present the findings of Mike Weightman, who was commissioned by the Secretary of State, Chris Huhne, to report on Fukushima, and look at them in terms of the future of the nuclear industry in this country. It would be wrong of me to intercept that report in this House, as it will be announced tomorrow. However, I can say that I met Mike Weightman earlier this week when we went through the implications of his report. We must not be complacent about our own position, but I think that we will feel quite positive by the end of tomorrow. That will, I hope, bring new nuclear back on to the agenda. I think that it has the broad approval of the House and it of course goes to the heart of carbon reduction and energy security.

On carbon capture and storage, as the right reverend Prelate knows, I am leading negotiations on the first demonstrator. I had meetings last night with the chairmen of each of the consortium companies to try to get us to the timetable that I have mentioned to the House. Broadly speaking, we are on track with that timetable and we are now looking at a cost which should be achievable. I hope that we will have that fully on the agenda towards the autumn—as I hope, for my part, we will have with new nuclear.

[Lord Lea of Crondall]

My Lords, I am one of those who have been involved in the programme in one way or another since Rio in 1992. Some of the fiscal questions now being raised are timely. I should like to ask about the relationship between the Government’s Statement and the Committee on Climate Change, and which is which. Page 2 of the executive summary indicates that there is an assumption that the price of carbon will rise to £70 a tonne in real terms, on present values, by 2030. You can see that this is necessary to make the arithmetic work. I am rather reminded of doing the national plan in 1965, where we played around with investment numbers and price numbers till everything fitted. We are doing an exercise in looking at numbers that will fit fiscally, but without saying to people what carbon tax they will have to pay in real terms. We must of course be transparent and honest with people. However, a carbon tax—albeit a European one—which I advocated in my maiden speech 11 years ago and I am not against, is a regressive tax. Now is the time to be much more transparent in how all the fiscal arithmetic fits together. There is a growing demand for that, however it is managed. The document is very short on financial figures; it is all tonnages of carbon dioxide. On the financial side, there is scope for a bit more transparency.

[Lord Marland]

The noble Lord is absolutely right. We must be very committed to the fiscal aspect of this and we must be transparent. We will be transparent, and we will put the British taxpayer first in terms of the fiscal implications.