National Shipbuilding Strategy

Debate between Michael Fallon and Lindsay Hoyle

Wednesday 6th September 2017 Commons Chamber

[Sir Michael Fallon]

I think that that is the nearest we are going to get to a welcome from Scotland today, so let us bank that and thank the hon. Gentleman for it. He is right about one thing: the Type 23s are beginning to age and we must ensure that the Type 31e and the Type 26 are ready to replace them to keep up the overall numbers of frigates and destroyers. That is why we aim to insert real pace into the programme through the new procurement process by accelerating the design phase, running the tender next year, placing the orders towards the end of next year and starting, as he says, the regular drumbeat of orders to replace the Type 23 frigates. He will know that they were not all built at the same time and that the older ones will soon need to be taken out of service. Our aim is to have the first Type 31e in service by 2023.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Last, but certainly not least, I call Alan Brown.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

They used to tell me that when I was the last pick at football as well.

In the 2015 strategic defence and security review, an extra £16 billion was found for the successor nuclear submarine project’s budget, which clearly led to a cut in orders for the Clyde and to the disappearance of the frigate factory. If the costs for the successor submarine programme continue to spiral, what effect will that have on the national shipbuilding strategy and on today’s promises?

Feed-in Tariffs (Lottery Funding)

Debate between Michael Fallon and Lindsay Hoyle

Monday 11th November 2013 Commons Chamber

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I think it would be unreasonable for the hon. Lady to expect to intervene, as she has only just arrived.

[Michael Fallon]

As I was saying, the costs of the feed-in tariff scheme are ultimately paid for through the electricity bills of consumers who, as my hon. Friend knows, are already facing rising fuel bills and general cost of living increases. The feed-in tariff scheme has been a success since its launch in April 2010, with over 480,000 systems totalling 2.4GW in capacity having been installed to date. An increasing number of these installations are indeed community energy schemes.

The Government recognise that some communities believed that it was possible to combine lottery Awards for All grants with feed-in tariffs when installing renewable energy systems on their premises, so we have been working with Ofgem and the lottery to try to find an acceptable solution for all sides. Recipients of lottery Awards for All grants who were also claiming feed-in tariffs were given the one-off option of repaying their grant to the lottery or converting it to a loan. The latter means that the income from feed-in tariffs could be used to pay back the loan over time. If the recipient did not take up one of the two options by 20 September, they faced being suspended from the feed-in tariff scheme and having their payments stopped. I understand that both Moccas and Clifford, along with a number of other community groups, have taken up the option to convert their lottery grant into a loan.

My hon. Friend asked a series of other questions. If I may, I will respond to him in detail in writing. Let me conclude by outlining some of the other measures that the Government are taking to support community renewable energy. My hon. Friend and those in his constituency who have already gone down this path are fully aware that our transformation to a low-carbon economy requires a huge national shift in the way we generate, distribute and buy our energy. By investing in local energy projects, communities can generate a healthy and stable return to cover the costs of installing small-scale renewable or low-carbon technologies. Such an opportunity can help drive local growth, redevelopment and even jobs at the larger scale.

Large low-carbon energy infrastructure, such as nuclear power stations and offshore wind, play a major role in our energy system. They are an important part of a diverse energy mix, but they are not a complete recipe. We also need a society-wide shift involving individuals, local communities and other organisations. I therefore know that, although my hon. Friend has been disappointed by the way in which the two applications have been handled, he will be delighted at the fact that the number of small-scale energy systems in homes, businesses and community facilities has leapt from a few thousand to nearly half a million since the feed-in tariff scheme was introduced in 2010.

We want to continue to help communities to spot and unlock such opportunities in their local area in order to save and generate energy for the benefit of the community. Communities will want to network with each other and with their local authorities and local businesses. My Department's forthcoming community energy strategy is looking at how information and advice can be used to supplement national resources, such as PlanLoCaL, the low-carbon hub and our recently published energy guide. I would also like to highlight the recent launch of the co-operative community shares fund website. That offers groups preparing community share offers free information and advice.

I would like to emphasise that local authorities have a pivotal role to play in community energy. They can share expertise, put people together, share facilities and, in some cases, partner community energy schemes. One of the benefits is the retention by local authorities of local business rates from renewables. There are also potential benefits for community groups in the green deal. Charities and community interest companies are able to receive financial support from the domestic customers' green deal cashback by registering on the cashback website.

I understand that pre-planning costs are a key barrier to developing viable renewables schemes of the sort that my hon. Friend has outlined and where those costs have already been incurred. In late 2011, we launched the local energy action fund, which offered pre-planning grants, and hundreds of applications have come in.

In December 2012, the Government put in place a one-year tariff guarantee for community energy and education providers pre-registering solar PV installations for the feed-in tariff scheme in future years. We also granted community groups and schools with solar PV projects an exemption from the energy efficiency requirement of obtaining an energy performance certificate of level D and above. We also think that larger community energy projects should be able to benefit from the simplicity and certainty offered by the feed-in tariff scheme. We are now considering increasing the maximum capacity that community projects can install from 5 MW to 10 MW, and we are seeking powers to do that in the Energy Bill, which is currently going through the other place.

As I mentioned, we are preparing a community energy strategy. It will tackle all aspects of community energy, including efficiency and renewables. I hope that that will inspire community groups, local authorities and commercial developers to put forward further projects. The call for evidence closed at the start of August and more than 300 responses have now been analysed.

I fully understand my hon. Friend’s disappointment that both Moccas and Clifford were not fully aware of the limitations of the feed-in tariff scheme and the classification of grants from the national lottery as public funding. The option that they are taking up to convert their lottery grant into a loan is a useful one, but I am very happy to look at the particular questions that my hon. Friend has raised during the course of this debate and to reply to him in more detail.

Question put and agreed to.

Growth and Infrastructure Bill

Debate between Michael Fallon and Lindsay Hoyle

Thursday 25th April 2013 Commons Chamber

[Mr Deputy Speaker]

It might be normal practice to give way, but it is still the Minister’s choice whether he wishes to or not. Obviously on this occasion he does not wish to give way.

[Michael Fallon]

Thank you, Mr Deputy Speaker. I am trying to wind up this debate in a few minutes. The House will recall that I have given way repeatedly in debates on this matter.

Nobody has claimed that this Bill on its own or any individual measure in it will by itself trigger the growth that our economy needs, but in this Bill six different Departments have come together with a package of measures that will speed up the planning process, make it easier for families who want to adjust their housing, speed up the roll-out of broadband, increase investment in our gas and electricity networks and, finally and importantly, provide a new form of shareholder-employee status for those companies that wish to bind their employees more closely into the success of their performance.

Question put,

Public Spending

Debate between Michael Fallon and Lindsay Hoyle

Thursday 17th June 2010 Commons Chamber

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Many hon. Members wish to get in. We have another statement to follow and there is business after that. I will certainly try to call as many hon. Members as possible, but if we can have quick questions and succinct answers, that will be of benefit to all.

[Michael Fallon (Sevenoaks) (Con)]

Is it not pretty clear that some of those projects were hastily scribbled cheques on a long overdrawn account? Would not today’s painful announcement have been completely unnecessary if Labour had carried out a proper comprehensive spending review last autumn, building into it a sustainable reserve?