UK Nuclear Energy Programme
Debate between Martin Horwood and Ed Davey(11 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
The detail of transmission infrastructure is sorted out by National Grid under legislation passed some time ago. In many areas, particularly in areas of rural beauty, people want more undergrounding of cables. The hon. Gentleman will know that that can be expensive. There are a number of inquiries at the moment, not least in Wales, and it would be inappropriate for me to comment on them.
Martin Horwood (Cheltenham) (LD)
Will my right hon. Friend share with the House complete details of the compensation agreement he mentioned, which, on the face of it, might be interpreted as an attempt to bind this Parliament’s successors, financially if not politically, and prevent a future democratic decision to abandon nuclear?
Mr Davey
We will of course be publishing a lot of these details, but I have to say to my hon. Friend that, given the experience in Japan and Germany, it is not unreasonable for a company wanting to invest in nuclear to have some protection against a future Government changing the policy completely. I think that if he was a shareholder of a company wanting to invest in UK nuclear, he would be looking for that sort of protection too. In many ways, I regret that we have had to give that protection, but it was a reasonable request and I think it would have been a show-stopper if we had not been able to meet it.
Oral Answers to Questions
Debate between Martin Horwood and Ed Davey(11 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Martin Horwood (Cheltenham) (LD)
T3. The Government are rightly encouraging investment in energy infrastructure by institutional investors through initiatives such as the Treasury’s pensions infrastructure platform. Will the Minister’s Department tell the Treasury how important it is that that investment in infrastructure is low-carbon and compatible with our overall climate change goals, and will he welcome ShareAction’s campaign to encourage institutional investors to invest in truly green energy futures?
Mr Davey
My hon. Friend knows that we are a champion of low-carbon energy investment. I strongly welcome ShareAction’s campaign to promote responsible investment by pension funds and fund managers. People who operate these pension funds should think long term, and there is no longer-term problem and challenge for the people they are investing for than climate change.
Hinkley Point
Debate between Martin Horwood and Ed Davey
Mr Davey
I am grateful for the hon. Gentleman’s comments. He has been a real champion for the nuclear industry, both for his constituents and more widely. I cannot say much more today on the strike price. I hope he understands that. He is right to say that we remain focused on finding a solution on the waste issue. I look forward to continuing to work with him and others on it.
Martin Horwood (Cheltenham) (LD)
Will the Secretary of State—my right hon. Friend—confirm that this planning decision does not represent a decision to go ahead with Hinkley C, in which respect it pales into insignificance beside the strike price negotiation? If he will accept my figures, which are hypothetical, and if the maths adds up, £97 per MWh for 35 years would guarantee an uncompetitive French nationalised energy company nearly £90 billion over time from British bill payers.
Mr Davey
My hon. Friend is right to say that today’s decision is purely about planning. We have read, studied and listened to the detailed report from the independent Planning Inspectorate and the examining authority that looked into this matter over some time, and we have had a small team of planning officials looking at it in the Department, separate from the policy officials. The decision is completely separate from the issue around the strike price.
Again, I do not recognise the figures that my hon. Friend uses. I hope he realises that I shall not comment on the negotiations on the strike price.
Energy Policy
Debate between Martin Horwood and Ed Davey
Martin Horwood (Cheltenham) (LD)
Does the Secretary of State agree that, in time, feed-in tariffs with contracts for difference will provide a means of supporting a diverse emerging and fast-changing renewables industry that is good for the environment and fairer to households than the outgoing renewables obligation system? Will he reconsider extending that subsidy to a mature and inflexible nuclear industry dominated by a single French nationalised company that is trying to seal the deal in secret before we have even passed the legislation?
Mr Davey
First, on my hon. Friend’s last point, I have made it clear that we will be very transparent about negotiations with EDF or any other company. Of course, he would not expect me to comment on negotiations daily but he would expect me to bring to the House the results of them so that I can be held to account in the proper way.
On my hon. Friend’s first point, he is absolutely right. One of the huge advantages of feed-in tariffs with contracts for difference compared with the renewable obligations certificate system is that the deal is much better for consumers. The policies we are putting in place and electricity market reform will mean that consumer and business bills will be far lower than they otherwise would have been. That is one of the main reasons we are doing this.
Gas Market Fraud
Debate between Martin Horwood and Ed Davey(12 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
The investigations will determine whether anyone has been involved in a racket. I will not prejudge those investigations, although the right hon. Gentleman seems to wish to do so. He is concerned about the role of people involved in hedging, but that can be quite important for a market, in that it can make it more liquid, which can reduce prices. I would counsel him against suggesting that we completely pull apart the liquidity of the gas market.
Martin Horwood (Cheltenham) (LD)
These allegations could expose real abuse of hard-pressed families, but will the Secretary of State be wary of the Opposition’s call to break up Ofgem? As the NHS and the BBC might testify, reorganisation can sometimes make things worse, rather than better. The important thing is that the regulators take their time, reform the system if they have to, and put in place real lessons learned for the future protection of consumers.
Mr Davey
My hon. Friend is absolutely right. It is completely wrong to jump to conclusions until the regulators—in this case, the FSA and Ofgem—have had a chance to do their work. I really cannot see that a massive reorganisation would help at the moment. We need to ensure that the regulators have the powers that they need to do their job, and we will ensure that that happens.
Pub Companies
Debate between Martin Horwood and Ed Davey(12 years, 11 months ago)
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Mr Davey
I will in a bit, but I want to make progress.
What we have delivered instead of regulation is a self-regulatory regime much stronger than we have had before. As a result of commitments made by the pubcos, they will be obliged to comply with the code and it will be delivered at least two or three years sooner than under an Act of Parliament. That is in line with the Government’s commitment to focus on delivering reform for small businesses right now, not in a few years’ time.
I have listened to campaigners on the issue of the tie, including the IPC, CAMRA and hon. Members. After careful reflection, I disagree with them. I say careful reflection because, like other Members, I have always been worried by the tie, primarily because I had assumed that it must be interfering with competition and was therefore against the interests of consumers. That is why, like others, I was keen for our independent competition authorities to consider the matter. The OFT’s investigation concluded that consumers are well served by British pubs, that there is choice and that a wide variety of beers is available. To override an independent competition authority would be a serious decision for a Minister to take and would require significant evidence that the authority had failed to deliver. As CAMRA decided not to challenge the OFT further, presumably it did not have further evidence; we certainly did not.
Mr Davey
Throughout my speech I have shown that the hon. Gentleman was wrong in almost everything that he said to the House, and he is wrong again.
I recognise that some Members would want us to have gone further, yet our reforms, including the strengthening of the code, its establishment on a legally binding footing and the soon to be completed establishment of PICAS, will mean real change for licensees and tenants across the country.
Martin Horwood
I believe that Members can welcome the positive steps that the Minister has announced but still believe that they do not really tackle the key issues, which are not about compliance and competition but, as the debate has shown, more about the relationship between struggling small businesses and big pubcos. If we are to have one last drink in the last chance saloon, what time scale will he now unambiguously put on the self-regulatory regime before statutory action is taken?
Mr Davey
I am grateful to my hon. Friend. We do need to give the self-regulatory regime time to work, and I pay tribute to him, and even to my hon. Friend the Member for Leeds North West—[Hon. Members: “Even?”] I say “even” because we do not always see eye to eye on every measure. However, both my hon. Friends have campaigned very hard, and I can tell the House that in my meeting with the BBPA, my hon. Friends' campaigns and the Select Committee reports were critical to my being able to make it absolutely clear that, this time, the pubcos really had to come up with the toughest self-regulatory regime imaginable, or else Parliament would wish to take action. We have come up with the toughest self-regulatory regime imaginable, but it needs time to work. I commend our response to the Select Committee to the House.