Infrastructure Bill [HL]

Lord Teverson Excerpts

Wednesday 18th June 2014 Lords Chamber

[Lord Teverson (LD)]

My Lords, I very much welcome the Bill, which starts to lay a foundation for the most important infrastructure skeleton of our country. It deals with certain areas but many other parts of the government programme have already dealt with parts of the infrastructure. For instance, superfast broadband is rolling out very effectively across the country.

I refute what has been said about the power network. Sure, there are challenges there, but the Energy Act is there to fix that problem and decarbonise the electricity generating network in future. In terms of the levy control framework and other financial indicators, it is already over demand. As for renewables, nuclear is moving ahead and that whole area is being tackled quite successfully. The problems of undercapacity in that sector, given the gestation period of investment in the power industry, certainly did not start in 2010; that is absolutely for sure. We have a new and effective infrastructure to ensure that the power industry can meet demand. I am also very pleased to say, although I do not want to move off to this subject too much, that we have a Government who recognise that there are two sides to that equation, which was never recognised before: there is demand as well as supply, and we are starting to move ahead in that area as well.

In rail, obviously there is HS2, but it is often forgotten that we have a rail investment programme that is worth some £38 billion over the next five years beyond that project, as well as Crossrail. In ports, through private sector investment, London Gateway, Felixstowe and Southampton are all going through major developments. Port of Tyne, which I visited not so long ago, is also developing very strongly.

One of the things that the commission has shown so far is that there is no crisis in runways. This is very much talked up by the lobbyists from the airport and runway industry and, although it needs to be sorted for the future, it is not as immediate as we sometimes think it is.

So I very much welcome the Bill within that broader context. I am not sure just how important it is that the Highways Agency is, interestingly, becoming highways companies—not just one but maybe many—but what is important in the Bill is that we start to get down to having programmes that can be planned and relied on over a number of years, which means that the cost of that infrastructure starts to come down. I am sure that my noble friend Lord Bradshaw will be talking much more about this area later in the debate.

I want to move on to some of the energy areas in particular. I think that the provisions that are being brought forward are excellent. The community energy right is a major step forward that should have happened long ago. The Government have taken the community aspects of energy very seriously. That was not the case before. Here we have the ability of local communities to invest in schemes above five megawatts. There is some criticism of that figure, but I think it is about right in terms of scale. They can invest in those schemes and take local benefit in various financial ways. We will discuss them in Committee. That is a major step forward in the community approach to energy projects in this country, where the resistance to renewable energy is not nearly as great as some people in this House would portray. Renewable energy will be much more important if communities are able to invest themselves.

That is true of what we hope will come through in the clauses on fracking, with direct community benefit, which will be important. We need to change the trespass legislation to bring it in line with many other areas. I am tantalised by the fact that there is such a positive reaction to geothermal energy, which is also affected by this change in legislation. In the Queen’s Speech debate, I started to ask what else the Government can do to help us kick-start the technology for geothermal energy and ensure there is that legal change. The Minister quite rightly pointed out that it has great potential for us as a country. I agree that fracking is important for our energy security in the medium term in terms of gas provision. However, in moving towards decarbonisation, gas can be only a transition energy source but it can be an important part of that formula, given the major decline in North Sea oil production.

Low-carbon homes are not in the Bill at present as we are going out to consultation, which seems a good thing to do. This House will have plenty of time to consider those clauses, probably in Committee after the Recess. I am very pleased that the Government are nailing their colours to the mast over zero-carbon homes. One of my great concerns has been that there will be a major erosion of that and that the proposals rightly put forward by the previous Government, and the commitment made by them, would be lost. We know that that will not be the case. There is some sense in the allowable solutions formula, which means that there is some leeway in finding off-site ways to come to a zero-carbon equation. Having said that, in Committee and on Report we will make sure that that is done through strong controls. I would not like to see a method by which developers can find a way around the regulations and the allowable changes get forgotten in the process. That is a risk we must avoid.

My other area of concern is that we are consulting on excluding smaller developments. I am sure this will come through in the consultation, and I hope the Government will reconsider. I do not see the logic of excluding small developments from the definition of zero-carbon homes. There might be some idea that small housebuilders do not or should not have the skills needed to met this level of insulation and energy-saving. That is wrong and creates barriers to those housebuilders. It is nothing to do with red tape, but is just building to the standards that people are supposed to build to. The greatest challenge may be to ensure that current building regulations are enforced, which we often find does not happen enough. That is perhaps the core issue: enforcing existing regulations and legislation.

Smaller developments often take place in rural communities, where energy is more expensive than in urban areas because they are often off the gas grid. By building homes that have lower energy efficiency, we are potentially giving those more rural and isolated communities a double whammy of problems and costs.

Does increasing energy-efficiency regulation add lots to the cost of the product? We have seen in the automotive industry that the opposite has happened. As time has passed, the real cost of vehicles has gone down despite energy efficiency going up quite markedly. I see no reason why that should not be the case for residential homes in the building industry, as has been shown in the rest of Europe. I very much hope that the Government will look at that consultation carefully, and we will look at it further in Committee.

On invasive and non-native species, biodefence and security—as I suppose one would call it—is clearly important for this country. We have seen this with everything from ash dieback disease to foot and mouth and the whole issue of Japanese knotweed, of which there is lots around where I live. This is a key area, and I very much welcome these extra steps to make sure that we keep our biodiversity secure. That is absolutely fundamental to our nation’s future security, and we will obviously be looking at it in detail in Committee.