National Policy Statements

Tom Greatrex Excerpts

Wednesday 1st December 2010 Commons Chamber

[Charles Hendry]

The hon. Gentleman has often raised this issue in the Select Committee in the past, and it should be at the heart of our thinking. At this time of year, when people are struggling to pay their bills, how they will pay them in the future is a matter of great concern to us.

The nature of the green deal is that it does not depend on the creditworthiness of the individual householder. A charge will be set against the future energy bills of their property, with the condition that the total cost of the energy efficiency measures should be such that it can be repaid through that extra charge over a period of 20 or 25 years. So the people living in those properties will get the immediate full benefit in terms of warmth and reduced energy consumption, but the charge will be brought back over time. We think that this policy has been devised in a way that has at its heart the interests of those who are fuel poor and have difficulty in paying their bills. The hon. Gentleman is absolutely right to say that, in all these issues, there are massive costs for consumers. Our job as a Government is to find ways of trying to drive down the number of units that consumers will be using. The green deal is part of that process, as is smart metering.

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

May I issue an appeal to the Minister and his colleagues that, as the green deal mechanism is being finalised and formulated, it should not be targeted at only cavity wall and loft insulation? There are many properties in my constituency and elsewhere for which that would be no use at all, and some of those properties are among the least fuel efficient.

[Charles Hendry]

The hon. Gentleman brings to the House a huge amount of expertise on these issues and I very much welcome his contribution. He has touched on an issue that is at the core of our thinking on how to take the green deal forward. He is absolutely right to say that, while a significant number of houses would be helped if it were to address issues of cavity wall and loft insulation, there are many that do not have cavity walls and many that need additional measures. We are looking at the role that boilers can play in regard to energy efficiency, because that area has not been given sufficient attention in the past. The key will be to find a range of measures that are relevant to each individual property, the savings from which will justify the investment over time. I can give the hon. Gentleman an absolute assurance that the type of houses that he is talking about in his constituency, in mine, and in many others across the country will be very much included as the green deal is developed.

--- Later in debate ---

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

I am grateful for the opportunity to speak in this debate. I served for a short time on the Energy and Climate Change Committee before being moved on to other things.

As the Minister and the shadow Minister, my hon. Friend the Member for Ogmore (Huw Irranca-Davies), made clear in their opening remarks, the policy statements are important, and it is crucial that we have the opportunity to debate them—I hope that we will have more opportunity to debate them than the short time that is available this evening. Bearing in mind that several Government Members want to speak, I will try to curtail my remarks to less than seven minutes, if possible.

As the Minister has said, policy statements are crucial to energy security, our capacity and our ageing plant, which needs to be replaced. As the hon. Member for Gloucester (Richard Graham) said, they are crucial to investment, which can create and sustain jobs in the industry and the supply chain—I know that many Members on both sides of the House have a definite interest in that.

I will not repeat the issues with Sheffield Forgemasters, other than to say that it is a crying shame that opportunities to develop, nurture and create jobs and skills will be enjoyed by other parts of the world, when we are focused on trying—in the words of the Prime Minister—to “rebalance the economy”.

I want to touch on a couple of issues, to which I hope the Minister will respond. Many Members are more than aware of the huge frustration at the time it takes to move an infrastructure project from planning to building and to being ready for use—the clock is, as we all know, ticking. The previous Government looked to address that frustration through the Infrastructure Planning Commission. There are concerns that by choosing a different route—by making the IPC part of the Planning Inspectorate—the Government might be subjecting the certainty that investors need to further delays. In moving to that model, I hope that some reassurance will be given that delays will not result in investment decisions not being taken or in investment being taken elsewhere. That is absolutely crucial.

The Minister knows from our discussions that I welcome the Government’s commitment to carbon capture and storage and to the pilot project at Longannet. That is the right project, given the speed with which existing coal technology can be retrofitted and be up and running.

As my hon. Friend the Member for Wansbeck (Ian Lavery) said in an intervention, it is also important that gas forms part of future carbon capture and storage projects. I have heard the Minister refer to that, but I would be grateful if he reaffirmed it and gave further information. Otherwise, we will miss out on technology that can be developed, tested and used in this country, which goes back to my earlier point about some of the jobs and skills that can be nurtured in this country but exported elsewhere. When the Prime Minister and others go off to China, India and other parts of the world evangelising for UK manufacturing industry, there is potential for jobs to be created in the whole of the UK, not only in one part. That can help to join up the parts of the policy agenda.

I want to touch on some of the issues of electricity market reform. I know that I am getting a reputation for being able to bore on about transmission charging for ever, but I have about two minutes, so I will bore on about it briefly. As the Minister will be aware, there is considerable concern in some parts of the industry that investment decisions are being limited by the current transmission charging regime. Although the Ofgem review is being conducted—I welcome Ofgem’s recent change in stance—we have to be absolutely clear that as the electricity markets are reformed the transmission charging regime changes too. It was designed primarily for the pre-renewables world and is not serving our interests in achieving our overall targets for reducing carbon. There is potential for that industry to develop, partly, but not entirely, in Scotland, where investors could be put off making a number of decisions on projects as a result of the current transmission charging regime.

There has been a lot of talk about the importance of the green investment bank. The idea originated under the previous Government and has been carried forward under this Government. It is crucial that we get the model right. It has to be about levering in green investment on a certain scale if it is to have any positive impact.

I use my last few seconds to reiterate my plea to the Secretary of State for Scotland—which he seemed to begin to agree with—that the green investment bank be based in Scotland, given the industry and the expertise that is there.