Energy Bill [HL]

Lord Wallace of Tankerness Excerpts

Tuesday 26th April 2016 Lords Chamber

Moved by

[Lord Wallace of Tankerness]

Leave out from “House” to end and insert “do insist on its Amendment 7T”.

[Lord Wallace of Tankerness (LD)]

My Lords, we have gone over this ground many times. I therefore do not intend to delay the House very much. I just want to pick up on one or two of the Minister’s remarks.

It does not really become the Government to pray in aid time. This Bill left your Lordships’ House well before Christmas last year and it was some weeks into the new year before it was brought to the House of Commons for Second Reading. Any delay in the Bill is entirely it the hands of the Government because of the exceptional delay between the Bill completing its passage through your Lordships’ House and being introduced into the House of Commons. These kinds of arguments at this late stage really do not cut any ice.

The Minister will also be aware that some doubt has been expressed as to how clear the manifesto commitment was. While for some the election result may have been a surprise, what really was a surprise was that no one in the industry interpreted the manifesto pledge as being one which would ensure that the ending of the subsidy for onshore renewables, already due in March 2017, would be accelerated by a year. People I have spoken to throughout the industry say that that came as a great surprise to them. But that is the position we are in. The Government are going to get their policy, but we are trying to ensure that there is some justice attached to the way in which they get it. That is the whole point of having grace periods, and these are the specific points that are raised in the amendments.

When the noble Lord’s ministerial colleague Andrea Leadsom appeared before the Select Committee on Energy and Climate Change in the other place, my right honourable friend the Member of Parliament for Orkney and Shetland asked her:

“So what is the purpose of the grace period then?”.

The Minister replied:

“As I say, to ensure fairness. To ensure that those who have spent money—significant investment—and achieved everything technically to meet the cut-off date but, through reasons beyond their control, haven’t actually made it, are not penalised for reasons beyond their control”.

That is a very fair submission and definition of what fairness should be in such circumstances. With these amendments, we are trying to ensure that the definition of fairness which the Minister expressed in the other place is given some reality and substance.

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[Viscount Ridley (Con)]

I apologise for interrupting and am grateful to the noble and learned Lord for allowing me to do so. Given that he is not moved by the arguments made by the Front Bench on our side, perhaps I could try an argument on him that might appeal particularly to a Scottish Liberal Democrat. News came in recently, in the last month or so, of a study that has found that the density of breeding golden plover goes down by 80% when a wind farm is built on a particular piece of moorland.

[Lord Wallace of Tankerness]

The noble Viscount is rehearsing Second Reading arguments. We are dealing with some very small—but very important to the developers—changes to try to ensure justice. As I indicated, the Government will get their policy and will be able to close down the onshore wind industry subsidies, as they wish to do. What we are trying to do is to ensure that this very small and limited number of cases where substantial amounts of money have already been laid out by developers in trying to take the development to planning consent—and where in some cases the council had indicated that it was minded to consent after much local discussion and engagement—should be allowed to proceed.

To us it is a question of simple justice. I read somewhere the other day that the Scottish author William McIlvanney had said that Scotland’s motto was not,

“Wha daur meddle wi’ me?”,

but was really, “It’s no’ fair”. In this case, it isnae fair. The Minister himself said, when dealing with the end of the renewables obligation for solar of 5 megawatts and below, that,

“we have aimed to strike the right balance between protecting bill payers and protecting developers who have made significant investments, while being conscious of the need to decarbonise our energy infrastructure. That is why the order makes provision for a number of grace periods, which mirror those offered last year as part of the large-scale closure. Stakeholders have welcomed this consistency”.

Well, they do not welcome the inconsistency in dealing with onshore wind. He went on to say:

“One of the grace periods was designed to protect developers who could show that a significant financial commitment had been made on or before the date on which the proposals were announced. This required evidence that a planning application had been made, among other things, as a proxy for the financial commitment”.—[Official Report, 16/3/16; col. 1915.]

It seems to me that that is entirely in line with what we are proposing in these amendments. It is a question of simple justice, and even at this late stage I ask the Minister to think hard and seriously about these matters and to respond favourably. I beg to move.

[The Lord Speaker (Baroness D'Souza)]

My Lords, I should inform the House that if this amendment is agreed, I cannot call Amendments A2 to A4 by reason of pre-emption.

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[Lord Bourne of Aberystwyth]

My Lords, I thank noble Lords for participating in this debate and making their points as fluently and forcefully as they have in the past. I shall deal with the points in the order they were made during the debate, and will therefore refer first to the noble and learned Lord, Lord Wallace, who spoke about the grace periods and the timeliness of what we are doing, saying that this is the Government’s fault. The point I was seeking to make was not so much about the delay as the constant ping-pong, given that the other place has given a very clear view. This measure was passed there by a substantial majority—far larger than the Government’s overall majority; it was not just Conservative Members who voted for it.

So these points are relevant, and I hope that the noble and learned Lord will accept that the Liberal Democrats have no monopoly in determining what justice is. We have sought to be just in setting grace periods and allowing for an investment freeze, so although we differ on where we think justice lies, I will take no lessons from the Liberal Democrats—that this is the definition of justice that has been handed down from on high.

The difference between us is this. We feel—

[Lord Wallace of Tankerness]

I was not seeking to give the Minister a Liberal Democrat definition of fairness and justice: I quoted his honourable friend Andrea Leadsom on what fairness was, and himself when he defended the Government’s ending the renewables obligation for photovoltaics. It was a Conservative Minister’s definition of fairness, which the Government are not rising to in this case.

[Lord Bourne of Aberystwyth]

We Conservatives have put forward our own definition of justice, rather than seeking to put a gloss on it in a way that is helpful to the noble and learned Lord’s argument.

The essential difference is one of deployment. Every proposal put forward by the noble and learned Lord would increase deployment. We feel that we are doing the right thing in balancing the interests of investors with the wider interest, what was in the manifesto and votes in the other place.

The noble and learned Lord raised the issue of steel, suggesting that this measure would make a massive difference and therefore we have to adopt it. As is widely recognised, the Government are committed to doing everything they can on steel, and indeed are delivering—on procurement, on relief on energy costs, on action against dumping. I hope that we will have his support in those matters.

I turn to the noble Lord, Lord Foulkes, who, with his customary passion and fervour, put forward arguments in relation to an area that he knows well. I respect where he is coming from—of course, I understand that—but I do not think that there is any ambiguity in relation to Sorbie. I have checked this and do not want to give a running commentary on planning issues—I should not seek to do that and it would be unwise to do so—but it seems to us that it is very clear that Sorbie falls the other side of the line. I do not think that there is any ambiguity there but, as I said, I cannot really give a running commentary on it.

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[Lord Bourne of Aberystwyth]

My Lords, I understand the point that the noble Baroness is making, and I thank her for her general support for what the Government are doing. Clearly, we need legal certainty. We feel that we have delivered on a grace period to take account of some of the difficulties that there are and the investment freeze position. We have made movement on grid delays and radar delays as well. I say to the noble Baroness that the line has to be drawn somewhere; as soon as you start to unpick it and make exceptions for one or two categories then one or two others come into play. I understand that there is great difficulty in drawing the line anywhere, but unless you draw that line, every case could be an exception. That is the point I am making.

I thank my noble friend the Duke of Wellington for some interesting insight on the situation. As for the noble Lord, Lord Foulkes, who said that my noble friend would not get his vote, I do not think any of us got his vote, so that was probably fair to all of us.

I turn to the points made by the noble Lord, Lord Grantchester. He talked rather uncharacteristically—I am not sure whether he really meant it—about vindictive and aggressive attitudes and the adoption of a UKIP stance. I hope he has evidence that that is what we have been doing because it does not cut the mustard with us. As the noble Lord well knows, we do not listen to UKIP on anything, thank goodness. There can be no suggestion that this is vindictive or aggressive. It was in the manifesto, which people voted for; it has been debated in the other place numerous times; and we were responding to views heard up and down the country. He might not like the policy but I do not think that he can characterise it as vindictive or aggressive.

We have the date of 18 June and I repeat to the noble Lord that that is not arbitrary: it is the date that the announcement was made. We believe that this is an unnecessary subsidy and that we have got justice by balancing issues such as the investment freeze and the grace period with the cut-off point. There is a very clear policy, which has been endorsed several times by the other place. I urge noble Lords to oppose any amendments and vote for the main Motion.

[Lord Wallace of Tankerness]

My Lords, the Minister has given us a fairly predictable but disappointing reply. He will be aware that when we first dealt with grace periods, back in October, there was a considerable number of possible areas in which justice could be done—and I am talking about justice as defined by his ministerial colleagues and himself. We have whittled those down. Indeed, I am prepared to indicate that the “insist” Motion, which is whittled down even further by the Motion in the name of the noble Lord, Lord Grantchester, is one that we would be prepared to support. However, we are getting absolutely no response.

Scottish colleagues present will understand the phrase, “It is like arguing with Ailsa Craig”. I am afraid that that is the position we are in. I do not think that this is good governance. What we are doing is freezing potential developers in other areas, not just in onshore wind, who no longer can have the certainty that the developments they make and investments they put in will not one day be swept aside at the whim of government. However, I beg leave to withdraw Motion A1.

Motion A1 withdrawn.