Oral Answers to Questions

Debate between Michael Fallon and Julie Elliott

Monday 19th October 2015 Commons Chamber

[Michael Fallon]

The UK military is focusing its efforts on areas where we can bring particular expertise and I am pleased to announce today that the new courses of counter-IED training for Iraqi ground forces are starting this week following the Prime Minister’s pledge in the summer that we would increase the number of personnel assisting the Iraqi Government’s counter-ISIL efforts. These 54 personnel, drawn mainly from 33 Engineer Regiment (Explosive Ordnance Disposal) from Saffron Walden, are delivering life-saving counter-IED instruction to members of the Iraqi security forces at training centres in Bismayah and Taji.

[Julie Elliott]

What assessment has the Secretary of State made of interrupting the flow of oil across ISIS borders over which ISIS holds a monopoly?

[Michael Fallon]

We are part of the international coalition of more than 60 countries, as I said, and the hon. Lady is right that we need to continue to degrade ISIL’s ability to export its oil or to trade in oil across the border areas. There is specific coalition work under way on that. We have more work to do.

--- Later in debate ---

[Michael Fallon]

Absolutely. Although my Department’s budget is rising again, there will be no let-up in getting more value for money. We have a strong record of delivering efficiency savings, including some £5 billion in the last Parliament. For the first time, as a result of the July Budget, every pound we save can now be reinvested in the frontline rather than handed back to the Treasury, so we can spend more not simply on ships and planes, but on cyber, as we have discussed, and on unmanned aircraft and the latest technologies.

[Julie Elliott (Sunderland Central) (Lab)]

T2. What steps is the Department taking to ensure that the UK defence industry, as well as the multibillion pound domestic supply chain, benefits fully from the procurement decisions that will be taken and outlined as part of the forthcoming strategic defence and security review?

Energy Markets (Competition)

Debate between Michael Fallon and Julie Elliott

Wednesday 26th March 2014 Westminster Hall

[Julie Elliott (Sunderland Central) (Lab)]

As ever, Sir Roger, it is a pleasure to serve under your chairmanship. I congratulate my hon. Friend the Member for Edinburgh North and Leith (Mark Lazarowicz) on securing this important debate. No one could have predicted the news this morning, which has turned this debate on an important matter of concern on both sides of the House into one on the topical issue of the day. That is almost unprecedented.

I will start by responding to SSE’s announcement, which the Labour party welcomes. It shows that energy companies can and should freeze their prices to reset the energy market. We also welcome their decision to separate their generation and supply businesses. That is a vital reform necessary to improve transparency and competition in the energy market. SSE should go further and commit to freezing their prices until 2017, but they have said they will review the situation.

In a recent press article, the Minister said that the decision of my right hon. Friend the Member for Doncaster North (Edward Miliband) to freeze energy bills is extremely dangerous. Will he comment on that in the light of SSE’s announcement? He also said that most voters will see that as a gimmick, but companies of the size and complexity of SSE do not employ gimmicks in the energy market. Perhaps he will comment on that.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

The hon. Lady has tempted me. When she clarifies her party’s policy, perhaps she will confirm that the price freeze will apply to all companies, not just the big six? Does she intend to catch all the smaller companies, or just the big six?

Oral Answers to Questions

Debate between Michael Fallon and Julie Elliott

Thursday 27th February 2014 Commons Chamber

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

My hon. Friend is a consistent champion of Eggborough and its proposed conversion. He will know that I have already met him and representatives from the company to discuss the proposal for converting to biomass. We received a large number of investment projects under the intermediate regime. It was not possible, because of a limited budget, to support them all through the taxpayer, but he will know that Eggborough has a number of other options and routes to consider.

[Julie Elliott (Sunderland Central) (Lab)]

I am very pleased that the matter of Eggborough has been raised. The loss of 850 jobs at Eggborough, with thousands more in the supply chain, is very worrying. What steps is the Minister taking to ensure that his Government’s policies create jobs, not cost jobs, and safeguard, rather than threaten, our energy security?

[Michael Fallon]

The jobs have not yet been lost at Eggborough, which is still producing power. A large number of investment projects came forward under our intermediate regimes involving hundreds of other jobs. It was not possible, within a limited budget, to accommodate every single investment project. Eggborough has been given its provisional ranking and it has other alternatives, such as applying for a contract for difference under the enduring regime.

Fuel Poverty

Debate between Michael Fallon and Julie Elliott

Tuesday 11th February 2014 Westminster Hall

[Michael Fallon]

That seems to me a reasonable point. I will see whether we can set the tables side by side. Of course, I have to tell the House that the figure was not dreamt up by the Government; it was the work of Professor Hills, who consulted widely on it. It has been supported by those who work in this area.

We had already moved, under the 2013 Act, to ensure that the energy market, with its confusingly large number and range of tariffs, which had not been serving the consumer as well as they might, could make it much simpler for consumers to understand prices and ensure that everybody is put on the cheapest tariff that meets their preference. I am glad, too, that that seemed to secure all-party support, as the energy legislation went through the House.

We were confronted in the autumn with some quite unacceptably large price increases, by some major suppliers, of 8%, 9% and 10%. We moved immediately, as would be expected of a listening Government, to consider what could be done to reduce the bit on the bill—the green levies—that the Government have control over. We have secured an average reduction of some £50 per household. That is important. People do not have to wait for an unworkable price freeze. This Government take action immediately to ensure that people see a reduction in their bills as quickly as possible.

[Julie Elliott]

Although we would welcome any reduction in bills, does the Minister acknowledge that the average consumer will still pay about £60 more this winter than last winter?

[Michael Fallon]

No, I do not think that is the right figure. In any case, the hon. Lady would be advised to go a little bit further back and see the scale of the increase under the final years of her Government. This debate, so far, has been reasonably good natured. I am not sure how useful it is to tempt her back on to previous ground, but I will come to some remarks that she made.

I want finally to say something about off-grid and then deal with hon. Members’ individual points. Four million households are off the gas grid and face higher than average energy bills. Of course, winter is a particularly expensive time for them. One of my first duties as Energy Minister was to chair the off-grid gas round table, not least at the instigation of the all-party group on off-gas grid, which has been working on this issue. I launched, at the all-party group’s request, the Buy Oil Early campaign in September and promulgated a better code of practice for oil suppliers, so that people pay the price advertised, and so on.

The group meets every six months, and we will reconvene in May to learn the lessons of this winter. We will have the regulators, the advisory bodies, the charitable bodies, people who have worked in oil-buying clubs and representatives from Northern Ireland, where there have been real difficulties. We will learn the lessons of this winter again to see what more can be done to improve the security and affordability of the off-grid fuel supply and to share best practice. One of the things on which we are working is how we can better pool data between Government agencies to ensure that we better understand which off-grid households need the most help.

Oral Answers to Questions

Debate between Michael Fallon and Julie Elliott

Thursday 16th January 2014 Commons Chamber

[Michael Fallon]

I will certainly commit to supporting renewable technologies and a mix of renewable technologies. My hon. Friend will have seen that we have confirmed the strike price for tidal and wave power in the final electricity market reform delivery plan that we published in December.

[Julie Elliott (Sunderland Central) (Lab)]

Investment in low-carbon energy has halved under this Government, costing jobs and threatening our energy security. Does the Minister agree that the two best things that the Government could do to improve their woeful investment record is to set a 2030 power sector decarbonisation target and stop the internal Government rows that are creating uncertainty and killing confidence?

[Michael Fallon]

I must tell the hon. Lady that this country has more offshore wind than any other country in the world. We have seen half a dozen large offshore wind farms commissioned and operating, and another four are under construction this year. We are leading the way in the deployment of renewable technologies, and those renewables contributed around 15% of our electricity in the third quarter of last year.

Oral Answers to Questions

Debate between Michael Fallon and Julie Elliott

Thursday 17th October 2013 Commons Chamber

[Michael Fallon]

We have not ruled that out for the second stage. A number of proposals have been put to us for new interconnectors, and we are looking at each of them.

[Julie Elliott (Sunderland Central) (Lab)]

As a result of weak competition and ineffective regulation, electricity prices in Britain—according to the Department’s own figures—are the sixth highest in the EU15, the third highest in the G7 and almost 20% above the EU15 and G7 average. The Minister will know that energy bills are the second biggest cost that businesses face, and that ever higher prices cost jobs and deter investment. Why will he not support Labour’s policy to stop unfair price rises by freezing energy bills until January 2017, saving the average business some £1,800, and reform the energy market to reintroduce competition and rebuild trust?

[Michael Fallon]

I welcome the hon. Lady to her new responsibilities. I think that the prices she quoted were pre-tax rather than post-tax, but the answer is simple—to bear down on prices, we need more competition. The Labour party left us with the big six. It started with 14 retailers; we ended up with the big six. The answer is more competition, easier switching and ensuring that the most vulnerable people are placed on the lowest possible tariff.