Oral Answers to Questions

Debate between Tom Blenkinsop and Ed Davey

Thursday 19th June 2014 Commons Chamber

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

18. What recent assessment he has made of the UK’s energy security.

[The Secretary of State for Energy and Climate Change (Mr Edward Davey)]

The UK enjoys a stable and secure energy supply, and we are working hard to ensure that it continues. As a Government, we are actively managing a number of risks to our current and future energy supplies, including the current challenges from Iraq, Russia and Ukraine. Our recent national gas risk assessment demonstrated that our gas infrastructure is robust. The measures recently announced by National Grid respond to the energy crunch that, owing to the legacy of under-investment and neglect, was predicted for this winter, but which will not now happen.

--- Later in debate ---

[Mr Davey]

The last thing we need for energy security is a new quango. The system involving National Grid, Ofgem and my Department is working incredibly well, which is why we dealt with the problem that we inherited. The demand load measures that the hon. Gentleman talked about have been welcomed by the CBI and industry; they are used an awful lot in north America and in other countries, but we have underused them. They are mainly used by companies volunteering to pay to use on-site generation, rather than national grid electricity, at the peak.

[Tom Blenkinsop]

Will the Secretary of State confirm that just one new gas-fired power station will have started construction and come online in this Parliament, under this Government, compared with the 10 GW of new gas capacity built under the previous Labour Government?

[Mr Davey]

I hope that the hon. Gentleman is not trying to suggest that the last Government were effective in investing in electricity production, because they were very weak. There has been £45 billion of electricity investment since 2010. The investment rate is going up, not just in gas but in renewables. The first nuclear deal was struck last October. We are going across the board, and the lights will stay on under us; if Labour’s policy had continued, they would have gone out.

Energy Markets Competition Assessment

Debate between Tom Blenkinsop and Ed Davey

Thursday 27th March 2014 Commons Chamber

[Mr Davey]

I am grateful for the hon. Lady’s question, but I have been accused by the Opposition of saying—in the same debate, I believe—that Ofgem is fit for purpose and that Ofgem is not fit for purpose. I believe she was quoting her Front-Bench colleague, the right hon. Member for Don Valley (Caroline Flint). I will let the hon. Lady try again next time.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

In November 2011 the Government ruled out a full energy market investigation. Is the Secretary of State willing now to admit that the Government got it wrong and made a mistake, and can he explain to the House the difference between tacit co-ordination and collusion?

[Mr Davey]

On that last point, one is illegal and one is not, but I think we can all agree that they both need to be investigated by the independent competition authorities. It is interesting that Labour is complaining—at least, some Labour Members are complaining—that we did not make this referral before, given that Labour’s leader, when Secretary of State, refused to make the market investigation reference. Let us remember that in the previous Parliament electricity bills and gas bills increased faster on average each year than they have done under this Government. He had all the reason to make that reference to try to improve competition, but he flunked it when he had the chance.

Oral Answers to Questions

Debate between Tom Blenkinsop and Ed Davey

Thursday 27th February 2014 Commons Chamber

[Mr Davey]

We have already set up an implementation group in the Department, because Sir Ian Wood published an interim report and we were able to study it and make preparations. I asked Sir Ian to chair an interim advisory panel to help us with our work, and he has agreed to do so. We are also keen to introduce legislation during the next Session of Parliament to implement his ideas about new powers for the proposed new regulator.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

As the Secretary of State will recall, I told the House back in November 2013 that the npower call centre in Thornaby was placing 500 jobs in jeopardy through its proposal to close the centre and relocate on its existing Sunderland site. We now know that more than 400 members of staff have opted for voluntary redundancy because npower’s promises of a relocation package and transport have not come to fruition. What conversations has the Secretary of State had with his colleagues in the Department for Business, Innovation and Skills with a view to mitigating the problems of the Thornaby workers?

[Mr Davey]

I know that BIS considers such issues very seriously, and we discuss them a great deal across Government. We want to ensure that support is provided in the event of large-scale redundancies, whether voluntary or compulsory. I cannot say any more about the specific case that the hon. Gentleman has raised, but I will ask my officials to look into it.

Energy Bills

Debate between Tom Blenkinsop and Ed Davey

Monday 2nd December 2013 Commons Chamber

[Mr Davey]

There were moments in that question when I thought my hon. Friend was doing a good job, but I am afraid I cannot agree with everything he says.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

Is it not the case that this Minister and the Prime Minister only dare ask the big six to freeze energy prices, while the Leader of the Opposition will make the big six freeze energy prices?

[Mr Davey]

I am more impressed by what people do when they are in office. The Leader of the Opposition did nothing on competition when he was in office. He helped create the big six and he kept them in business. Frankly, we would like an apology from him and his party for the way they sucked up to the big six.

Oral Answers to Questions

Debate between Tom Blenkinsop and Ed Davey

Thursday 28th November 2013 Commons Chamber

[Mr Davey]

The hon. Lady knows that we are considering the Atkins report and that we must make choices on which renewable electricity supplies we can back. I hope she will be pleased that, through the renewable heat incentive, we are supporting geothermal heat, which will be a big boost for the industry. That might not be as welcome to her constituents in the case she raises, but we want to back geothermal heat.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

Further to the question from my hon. Friend the Member for Stoke-on-Trent North (Joan Walley), 560 workers at the npower call centre in Thornaby, where many of my constituents work, will be affected by npower’s announcement to remove 1,400 jobs from the UK and send them to India—that is what it has informed the public. What communications have the Secretary of State and the Department had with npower since April? The Government will be aware that its review of call centres has been going on since then.

[Mr Davey]

We have not had specific discussions on the proposal announced today, so I am afraid I cannot give the hon. Gentleman any background detail. However, as I have told the hon. Member for Stoke-on-Trent North (Joan Walley), we will work across the Government, particularly with the Department for Business, Innovation and Skills, to do what we can to help the people affected by the announcement.

Annual Energy Statement

Debate between Tom Blenkinsop and Ed Davey

Thursday 31st October 2013 Commons Chamber

[Mr Davey]

I have been rather bemused by some of the statements from the big six, especially on the environmental costs. Sometimes their numbers just do not add up. That is why we are calling for more transparency and we are acting on more transparency.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

When can we expect the full roll-out of the mitigation policies in relation to the Chancellor’s imposition of the carbon floor price? I say that because this week Tata has announced 500 job losses and Sembcorp, near my constituency in Teesside, has also announced redundancies. When can we expect those mitigation policies to be rolled out in full?

[Mr Davey]

We are having a lot of applications in for the £113 million package that we announced. Money is now going out of the door to help those companies. Another part of our package for energy-intensive industries is still subject to state aid clearance in Brussels. We are trying to secure that as quickly as possible so that we can get the money to those companies.

Oral Answers to Questions

Debate between Tom Blenkinsop and Ed Davey

Thursday 6th June 2013 Commons Chamber

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Energy and Climate Change (Mr Edward Davey)]

Since my Department’s last question time, the remaining stages of the Energy Bill have been completed and approved by this House by 396 votes to 8. The Bill has been introduced into the other place as we make further progress to build the world’s first ever low-carbon electricity market.

For consumers, I published the Government’s response to the discussion document, “Ensuring a better deal for energy consumers”, which confirmed the Government’s backing for Ofgem’s market reforms that are designed to improve competition in retail markets and help consumers. Today, along with the Department for Communities and Local Government, we have published the Government’s decisions on onshore wind to give communities a greater say, setting out an industry-proposed fivefold increase in benefits for communities in England, and keeping financial support for onshore wind at the rate of 0.9 renewables obligation certificates.

[Tom Blenkinsop]

Middlesbrough South and East Cleveland has more than 7,000 households living in fuel poverty, and since this Government came to power the energy bill of the average family has leapt by more than £300 a year. Will the Minister please tell the House why the Government have halved support for people in fuel poverty while giving millionaires a tax break?

[Mr Davey]

We have not halved fuel support and will increase it over the lifetime of the spending review. We are changing and reforming it to ensure that it is more effective, which the hon. Gentleman ought to support.

Economic Development (North-East)

Debate between Tom Blenkinsop and Ed Davey

Tuesday 15th February 2011 Commons Chamber

[Mr Davey]

All Governments have to make choices, and my right hon. Friend was saying that the Labour Government failed to choose to upgrade the road that serves his constituency, so again I am afraid that they do not have as good a record as some Opposition Members would like us to believe.

[Tom Blenkinsop]

On choices, can the Minister say how many Liberal Democrat local authority group leaders agree with the Government’s current policies?

[Mr Davey]

I believe that they all do, and I will explain why. They know that this coalition Government are improving the public finances, which is vital for the stability of our economy and for investment in the north -east and other regions, and are prepared to take the tough decisions which, if one were to believe what Labour Members have said, their party would have ducked.

I share the desire of the right hon. Member for Newcastle upon Tyne East to ensure that the north-east can share in sustainable, long-term economic growth. He made that case with passion, and the Government agree that we need to make such growth our overriding priority. We want to forge a new model for growth—one that is based on rebalancing the economy, both geographically and in terms of sectors, and which promotes innovation and boosts exports, not merely relying on consumption that is, in many cases, fuelled by public debt. That is why we have set up the growth review, which is a root-and-branch analysis of the barriers that impede business growth, and the structural reforms that we believe are needed to boost economic growth across the country. The initial phase is focusing on immediate priorities for business by improving the competition regime—on which I am leading—increasing exports, reforming the planning system, and cutting red tape and regulation. That will underpin this year’s Budget. A huge amount of work is going on in that context.

When my right hon. Friend the Business Secretary recently made a statement to the House about the trade and investment White Paper, the hon. Member for Bishop Auckland (Helen Goodman) said that she was worried about where inward investment would come from. I refer her to that White Paper, which talks a great deal about the importance of inward investment for all regions of our country. Many excellent firms in the north-east contribute to this country’s manufacturing exports, and I believe that they will strongly welcome the policies and framework that the White Paper sets out.

In the meantime, we are introducing a range of policies intended to support enterprise so that companies can grow and create new jobs. Let me highlight just a few of those. We are cutting the main rate of corporation tax from 28p to 24p by 2014. We are reducing the small companies rate from 21p to 20p—not increasing it as the previous Administration had intended. We are cutting the unnecessary red tape and bureaucracy that hinders, rather than helps, UK firms. We are boosting adult apprenticeships funding by up to £250 million by the end of the spending review period to create up to 75,000 more places a year. We heard nothing about the apprenticeship scheme from Labour Members. It is a huge success. I do not know whether any of them took part in national apprenticeship week, as I did in my constituency. At many of those events, we noticed the enthusiasm of employers and their potential apprentices, with large numbers of people getting really excited about this new opportunity that the Government have provided.

[Mr Davey]

I apologise to the hon. Lady if I did not listen when she was talking about apprenticeships, but I did notice her reliance on strategies for skills. What I found rather odd in several policy areas under the previous Government is that they spent a huge amount of money on forming strategies, and then, a year or two later, they were looking at another strategy. In my view, if we have a strategy, we should stick to it and implement it rather than keep changing it, as happened so often under the previous Government.

We are also striving hard to bring about a renaissance in the UK’s industrial base, which has had some serious problems in recent years. Sectors such as advanced manufacturing are critical in creating a more diverse, resilient economy in future. That sector, among several others, is very much part of the growth review that my right hon. Friend the Chancellor will talk about in the Budget.

[Tom Blenkinsop]

The current GDP figures in Britain are incredibly worrying, although admittedly there has been an increase in manufacturing. However, that increase is down to inventory and raw material spending. At many manufacturing sites, short-time working agreements have been taken away, bringing the work force back to their previous contractual hours, which had been reduced.

Consumer Credit and Debt Management

Debate between Tom Blenkinsop and Ed Davey

Thursday 3rd February 2011 Commons Chamber

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

I, too, praise my hon. Friends the Members for Walthamstow (Stella Creasy) and for Darlington (Mrs Chapman) for their hard work on this issue and for securing this debate through the Backbench Business Committee.

In the poorest communities in my constituency and throughout Teesside, the most vulnerable people are being preyed on by loan sharks and payday lenders. That is especially true in these difficult economic circumstances. The two councils in my constituency offer financial advice services that provide free support to people who need it, with support from Citizens Advice and the credit unions. Those services are well used by local people and sometimes they are the only accessible source of advice and support. Such services could be developed if post offices worked alongside credit unions as a post bank. I believe that the Government have a role in regulating to prevent vulnerable people from being targeted and taken advantage of.

It is no surprise that among the only businesses to have consistently benefited from the credit crunch are pawnbrokers and cash-for-gold shops, which offer quick-fix financial solutions for those in need of money. As the Office of Fair Trading and the Competition Commission have said, the fact that customers seeking short-term loans cannot afford to shop around has meant that there is little competition in the sector, which has inflated rates artificially.

In my constituency, the north-east illegal money lending team has worked tirelessly in communities such as Easterside to drive out illegal loan sharks who have been taking advantage of vulnerable people. It helped to set up sustainable lending and saving by community-based credit unions. The Minister has decided to withdraw funding for such teams and expects a national body based in Birmingham to replace them. I can only guess that that is part of the new consistent localism agenda that the Government have displayed.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

The hon. Gentleman will know, I would have thought, that an independent study was done on how best to use the funding for illegal money lending teams. We have taken on the broad recommendations of that study. It suggested that a central team would be more effective and use the money better. The people in the north-east will still have the services of the illegal money lending teams.

[Tom Blenkinsop]

I do not accept that evidence, because the new team will not do the follow-up work that helped to set up the credit unions in those communities. A team in Birmingham cannot have the relationships with local people that can defeat the local illegal moneylenders who people know on their estates. I have campaigned hard against this decision, which I believe will leave communities in my constituency vulnerable to illegal loan sharks, after all the hard work that has been done to rid us of such criminal moneylenders.

I back the motion because, contrary to the opinion of the hon. Member for Solihull (Lorely Burt), it is not true that regulating the lending market will push people to use illegal loan sharks. In the real world, evidence shows that high-cost lending may be a precursor to illegal lending because people get into such a financial mess, and have such poor credit ratings as a result, that they turn to illegal lenders. And not only that: they are often dragged into criminal activity themselves as repayment by favour or in kind, such as hiding fenced goods, drugs or weapons. When they get caught, they lose their job and spiral downwards.

With rising unemployment, the increase in VAT and the high cost of fuel, I genuinely fear that more and more of my constituents may feel that their only option is to turn to high-cost lenders such as payday, doorstep and hire-purchase lenders. The Government have already committed to regulating excessive interest rates on credit and store cards, and it is now time for them to focus on higher-cost unsecured lenders. That is why I support the motion. Now more than ever, it is absolutely necessary to protect vulnerable and often desperate people who turn to companies for credit that could destroy any hope of their having financial security in future.