Oral Answers to Questions Debate

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Nic Dakin

Main Page: Nic Dakin (Labour - Scunthorpe)

Oral Answers to Questions

Nic Dakin Excerpts
Thursday 28th November 2013

(10 years, 5 months ago)

Commons Chamber
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Ed Davey Portrait Mr Davey
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The House will be pleased to know that the social and green levies protect everybody, whether they are in rural Somerset or anywhere else in the country. On a number of occasions, I have made clear in this House and elsewhere my commitment to maintain the support for the fuel poor.

Nic Dakin Portrait Nic Dakin (Scunthorpe) (Lab)
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Why is the Secretary of State persisting with the carbon price floor tax, which is unilaterally damaging core foundation industries such as steel and chemicals, when even his predecessor says it has no green benefit and is simply about lining the Chancellor’s pocket?

Ed Davey Portrait Mr Davey
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The Chancellor introduced the carbon price floor at the beginning of this Parliament and confirmed the rates in the Budget this year. The purpose is to send a clear incentive message to people investing in low carbon, which I believe the hon. Gentleman supports. I also hope that he supports the compensation package this Government have put together to help energy-intensive industries, to support them and to help them defray those costs.

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Ed Davey Portrait Mr Davey
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We understand people’s concerns not just about onshore wind but about other forms of energy production, such as shale and so on. We need to ensure that the planning system is responsive. The hon. Gentleman knows that what he has said could be applied to many other developments outside energy. It is often the case that the unpopular development of housing or a supermarket gets overturned by the Planning Inspectorate.

Nic Dakin Portrait Nic Dakin (Scunthorpe) (Lab)
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The Secretary of State admitted, in answer to my right hon. Friend the Member for Don Valley (Caroline Flint), that due to Government incompetence no money has been paid to energy-intensive industries in mitigation for the carbon floor tax. However, he did say that money is being spent on the European Union emissions trading scheme. In answer to a parliamentary question, the Minister of State, the right hon. Member for Sevenoaks (Michael Fallon) told me:

“£16 million has been paid to 17 companies.”—[Official Report, 5 November 2013; Vol. 570, c. 142W.]

When I asked him to name those companies, he wrote:

“We are still assessing applications.”—[Official Report, 18 November 2013; Vol. 570, c. 663W.]

How can money have been paid out when applications are still being assessed?

Michael Fallon Portrait Michael Fallon
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More than 60 applications have been received and we have paid out on more than 20 of them. We have done that in the past few weeks. We are processing the others as quickly as possible. The scheme that my right hon. Friend the Secretary of State referred to was the carbon price floor compensation scheme, for which we are still awaiting approval under state aid rules from Brussels.