Enterprise and Regulatory Reform Bill

Lord Oxburgh Excerpts

Monday 3rd December 2012 Grand Committee

[Baroness Ford]

KfW is covered by the covered bond regime, which we do not have in the United Kingdom.

[Lord Oxburgh]

My Lords, I, too, support the amendment. I shall not detain the Committee by repeating the points that have been excellently made by previous speakers. It is simply worth pointing out that, because we are signatories to a variety of European constraints on emissions reduction and because we have our own Climate Change Act, inevitably there has to be massive investment in green infrastructure in this country over the coming decade. We managed to lose out almost completely, if you like, in the previous phase, when we saw significant investment in, for example, onshore wind in this country, where virtually all the high-end technology came from abroad. We really have to be ready to cope with this requirement for capital internally and in time.

I am sure that by the Minister’s bed he has a copy of the current, recently introduced Chinese five-year plan, in which he will remember that no less than a third of the objectives relate to energy management, energy efficiency, investment in renewables and low emissions technology. There will be a massive world market here, and we can drag our feet again or we can participate in it. I see this amendment, taking on board entirely the point made by the noble Baroness, Lady Ford, as simply facilitating and making sure that we are there in time. Brussels has many virtues, but speedy reaction is not one of them. Getting on with this now will not only begin to manage that problem but will indicate again to the capital markets that the Government are serious.

[Lord Skidelsky]

Perhaps I could reply to the noble Baroness, Lady Ford. Her point is absolutely right, but it is irrelevant. The purpose of the amendment is to allow the bank to borrow; it does not guarantee that the bank will be able to raise the money.