Northern Ireland (Regional Rates and Energy) (No. 2) Bill

Paul Girvan Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 6th March 2019 Commons Chamber

[Karen Bradley]

I thank my hon. Friend for his questions, and I will come on specifically to those points in a moment.

I want to come back to the question of whether there is an option to delay. I agree with the principle and intention behind the amendment, but it is not the solution to the wider problem. As I have said, the tariffs set out in the legislation are the only tariffs available that will bring the returns on the scheme into line with the 12% approved by state aid. The tariffs strike a fair balance between the interests of scheme participants and the wider public interest, in ensuring that the Northern Ireland budget and public services are protected and that taxpayers’ money is spent to achieve value for money. The only lawful alternative would be the closure of the scheme.

[Paul Girvan]

In relation to the figures that are being presented, I have done a very simple back-of-the-envelope calculation—perhaps not a very wise thing to do—of the payments that would have been received in the early stages at the maximum permissible amount. If we calculate that in, then take the reduction over the next couple of years that has been calculated in, then multiply by the factor that has been put forward, it comes out at 3.1 times less than what the rest of GB is getting on the average tariff.

[Karen Bradley]

I hope that the scrutiny that the Chair of the Northern Ireland Affairs Committee has offered will help to address a number of those issues. I know that there is concern about the differences between the scheme in GB and the scheme in Northern Ireland. I am not using a visual aid here, but I can assure Members that we have a copy of the document that is on the Department for the Economy website. It is available for download, and we would be happy to send a link to all Members here today, to ensure that they have an opportunity to see the very detailed information, tables and calculations, which I am sure they will absorb and enjoy.

To resume, delay of the legislative measures, such as the amendment would achieve, would serve only to put at risk payments to all the participants in the scheme. For there to be a lawful basis for the RHI scheme come 1 April, the legislative process and Royal Assent need to be completed by 31 March. The current tariffs are designed to pay the maximum 12% rate of return to a typical participant, so there is no lawful way to introduce higher tariffs to the scheme. A delay would not change that fundamental issue.