Tom Greatrex
Main Page: Tom Greatrex (Labour (Co-op) - Rutherglen and Hamilton West)Solar Power (Feed-in Tariff)
Tom Greatrex Excerpts
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
We have had an important debate and a number of significant points have been made by many hon. Members despite their speaking for a limited time. My hon. Friends the Members for Ynys Môn (Albert Owen), for Ayr, Carrick and Cumnock (Sandra Osborne), for Glasgow North West (John Robertson), for Sedgefield (Phil Wilson) and for Clwyd South (Susan Elan Jones), my right hon. Friend the Member for Coatbridge, Chryston and Bellshill (Mr Clarke) and my hon. Friend the Member for North Ayrshire and Arran (Katy Clark), among other Members, made important points about the Government’s changes to the feed-in tariff. We could no doubt have had a somewhat longer debate had time not been curtailed by the Secretary of State’s lengthy urgent statement earlier this afternoon and his lengthy speech at the start of the debate, but I want to keep my remarks as brief as possible to enable the Minister to respond. A number of important issues have been raised and I am sure that he wants to respond to them.
The Minister is a politician that many of us have come to appreciate, especially in his recent works, as a master of his art. The reduction in the feed-in tariff
“effectively slowly suffocates the growth that the policy has so far encouraged.”
Not my words but those of the Minister’s close colleague, Boris Johnson, the Mayor of London.
“Industry trust and confidence in the government has evaporated.”
Again, not my words but those of the CBI. The new rates mean
“that unless you have significant savings, you’re unlikely to be able to afford solar panels”.
Once more, not my words, but those of Friends of the Earth. The ability to build such a consensus against his own policy is a formidable feat on which I congratulate the Minister.
I would also like to pay tribute to the Minister’s transformational skills. In a few short weeks, he has managed to turn a policy that was admired, appreciated and effective into a shambles that is mired in confusion, contradiction and potential legal challenge. However, he is a man of great foresight and has the extraordinary ability to set a consultation with an effective date close to two weeks before the close of the consultation. It is a remarkable record from a remarkable Minister. I can only look on in awe and wonderment at his abilities and only aspire never quite to plumb those depths myself.
Pat Glass
Does my hon. Friend agree that the issue for the consumer is not the £1 each that the feed-in tariffs will cost, but the fact that the Government have clearly and demonstrably failed to tackle the big six energy companies that are taking massive and obscene profits from the British consumer?
Tom Greatrex
My hon. Friend is entirely right. When the Minister, as he is about to do, following the example of the Secretary of State, makes points about consumer bills and compares the £1 cost with the £1,345 for the average annual bill, which is 0.08%—less than a tenth of 1%—I think that the figures speak for themselves.
Tom Greatrex
I am afraid I am going to make some progress, because I want to give the Minister time to respond.
The Government have endangered an industry in its very infancy and, as my hon. Friend the Member for Ynys Môn made clear, sent to the rest of industry a signal that is doing the UK a lot of damage. It suggests that we cannot rely on what the Government say because they will change their position with scant consultation, no planning and in an arbitrary way. As E.ON said only yesterday,
“this sort of action creates uncertainty for business, and will have a negative impact”.
The Minister has argued that there is a pressing need to reduce costs, that installation costs have fallen and that the subsidy must follow, and, despite the Secretary of State’s best attempt to muddy the waters earlier, no one argues with that—not the solar industry, not consumer organisations and not the Opposition. Indeed, it might take him six months to answer his correspondence, but, as he well knows, trade bodies have argued for months that there should be a sensible, structured reduction in the subsidy—not a jump off the landing, but a walk down the stairs.
The Government’s consultation states that installation costs have reduced by 30%, but it is no good the Minister getting to his feet and citing the cost of panels in isolation from other costs as a way of justifying the 70% figure from Bloomberg, because, if installation costs have reduced by 30%, why is the tariff being cut by 52% in one go? Perhaps, as he has claimed before, it is part of his cunning plan to cut energy bills, but, as my hon. Friend the Member for North West Durham (Pat Glass) has made clear, that attempt will just not work.
Tom Greatrex
I will make a little more progress and then I may be able to give way. I am conscious of the time and of the Minister needing to respond.
The important point is that the Government’s policy will also cost: it will cost some of the 25,000 jobs; it will cost some of the 3,000 businesses; and it will cost people’s confidence in the UK as a place to invest. It is shameful to pull the plug on one of the few industries providing growth and jobs, which are nowhere else in the economy, for the sake of £1 a year on a bill. It is short-sighted to put at risk 25,000 jobs and, thereby, reduce tax revenues and increase benefit payments for £1 a year. Throughout the country it will cost community projects, which are being cancelled, co-operative models that are being developed, social housing schemes and people’s sense of involvement in electricity generation in this country.
It would be unfair of me to suggest that the Minister, as much as he has united people in opposition to the policy, is without friends. He has a very supportive Secretary of State, with a burgeoning reputation for collegiate behaviour in government and loyalty to his colleagues. He is also known to dabble in Twitter, so I am sure he has made the Minister aware that there is, indeed, a SaveGregBarker Twitter feed. It has 18 followers, but perhaps it will have some more after today’s debate.
There are more than 18 of the Secretary of State’s hon. Friends who have expressed concern at his Department’s action on feed-in tariffs. However, some 24 Liberal Democrats have signed early-day motion 673, which states that
“the feed-in tariff scheme will provide much needed stability for the expansions of renewables up to…2013.”
Andrew George
The Labour motion before us turns on its penultimate line, which refers to “more measured proposals”. Members from all parts of the House want a more sustainable solution than the current one, but what are these “more measured proposals” and how they are going to be paid for?
Tom Greatrex
The hon. Gentleman, as a signatory to early-day motion 673, has expressed his concern about those issues, and I will go on to make a couple of remarks about what we need to do next, following his support for the motion before us and that of his colleagues who signed the early-day motion.
Indeed, the hon. Member for Manchester, Withington (Mr Leech), who is no longer in his place, was quoted on the Friends of the Earth website last week, saying:
“Solar has been the real success story...We can’t afford to jeopardise thousands of jobs by slashing the feed in tariff and creating uncertainty, giving the industry no time to adjust.”
The hon. Member for Lewes (Norman Baker), a Minister no less, says on his website that he has concerns
“about the speed and level of the proposed changes for community size projects and I am therefore asking the Secretary of State to examine urgently the case for some flexibility”.
The Secretary of State’s own Parliamentary Private Secretary, the hon. Member for Chippenham (Duncan Hames), quoted in the Financial Times this morning, said that we should look at the German model of gradually reducing support rather than, as I described it earlier, jumping off the cliff.
If all those friends of the Secretary of State want to be friends to the Government—I understand their desire, however misguided, to support the Government—and if they want to get the Government to right their mistakes; if they want to repair some of the damage of the past few weeks; if they want a sustainable and sensible model for support going forward; if they want to walk down the stairs rather than jump off the landing; if, perhaps, they want to “SaveGregBarker”, they must vote for the motion this evening. They should look at the wording of the motion, which is about having a sustainable, sensible, gradual approach rather than making a sudden cut that is putting people, jobs and businesses in jeopardy and leaving consumers high and dry. Let us help rescue the Government from the mess that they have made for themselves, and support the motion this evening.