Oil Prices

Lord Newby Excerpts

Wednesday 8th June 2011 Lords Chamber

[Lord Sassoon]

My Lords, of course we would not wish to see inflation at the 4.5 per cent it is now. As has been explained, this is very largely driven by global factors with regard to commodity prices. We are not only keeping to our tight fiscal policy, which underpins the ability of the Bank of England to stick to its mandate, but giving help to the most vulnerable—whether that is the Budget announcement that gave a £630 increase in cash in personal allowances for the under-65s, whether it is in the arrangements that we made to cut fuel duty effectively by 6p per litre from what the plans of the previous Government had been, or whether it is increasing the state pension by 4.6 per cent. What the Government must do, and are doing, is to protect the most vulnerable in our society.

[Lord Newby]

My Lords, with the Chinese economy, the Indian economy and many other economies still growing strongly, is it not likely that the price of oil and other fossil fuels will remain high for the foreseeable future? In those circumstances, does the Minister agree that the Government’s carbon reduction strategy assumes an even greater importance? In that context, can he tell us when the Government plan to bring forward the Bill formally establishing the green investment bank?

[Lord Sassoon]

My Lords, we will bring forward the Bill in due course when it is in good shape. I take my noble friend's point about commodity prices. It reinforces the fact that we need to ensure that all energy users get advice to use energy efficiently in order to reduce their household bills. That is part of where we are targeting government help.