Energy Company Licence Revocation

Debate between Mike Kane and Caroline Flint

Wednesday 3rd September 2014 Commons Chamber

[Caroline Flint]

I thank my hon. Friend for his support on so many occasions when we have tried to put forward common-sense, constructive solutions to some of the problems that all in this House know exist in this energy market. Some will wrongly try to characterise our proposal as somehow anti-business—it is not. For one thing, businesses, especially small firms, have often been as much on the receiving end of the energy industry’s sharp practices as households. For another thing, if energy companies do not want to be at risk of losing their licences, all they have to do is treat their customers fairly and properly. More importantly, there is no such thing as a market without rules. It is difficult to think of a more vigorously free-market capitalist economy than the United States, but regulators there understand that a free market works only when there are proper rules to ensure competition and fair play. As Matthew D’Ancona said recently in his article in The Sunday Telegraph, capitalism must be

“tempered by the recognition that markets exist within a structure of laws and a social order.”

That is what I want for households and businesses in Britain.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

I compliment my right hon. Friend on an excellent speech. I disagree slightly with my hon. Friend the Member for Scunthorpe (Nic Dakin), in that this is about the past. When the landed aristocracy of the Conservatives in the 1860s were controlling the bushels of wheat, it took a Mancunian MP, Richard Cobden, to form the Anti-Corn Law League, which eventually brought in free trade and a free market so that working Mancunians and working people across this country could afford bread to eat. I also remind Government Members that that eventually led to Peel falling.

[Caroline Flint]

I thank my hon. Friend for his contribution, and I have two points to make. First, I have found it incredibly helpful, in undertaking this brief for the Leader of the Opposition, to take a little time away from the day-to-day things and have a look back at some of the decisions made over many decades, both before and since privatisation. That is why I believe our proposals in so many areas meet the test of what we need today, learning from both what worked and what did not work in the past. That is good politics as far as I am concerned.

The second point relates to what is so exciting about the future of the energy market. There was a time when many local authorities were more involved in the delivery of energy, and the exciting thing is that as well as having new entrants from other parts of the business community, there is the opportunity to open up much more the roles for local authorities and other community organisations to supply and generate energy in the future. To get that right, we have to sort out the corporate problems that we are facing today. That is the choice today’s motion puts before the House.

We have debated energy prices and the energy market many times in this Parliament. There have been times when we have agreed across these Dispatch Boxes and others when we have disagreed, but I hope the Secretary of State will put aside the areas where we do not agree and do us the courtesy of engaging constructively with this specific proposal. If he does so, I believe he will see that it is worthy of support and would be to the benefit of consumers in this country. I commend the motion to the House.