Electricity Market Reform

Debate between Chris Huhne and Adrian Bailey

Tuesday 12th July 2011 Commons Chamber

[Chris Huhne]

There is a sound argument in economic literature for encouraging early-stage technologies. Many British Governments have done that for many years. Green taxes are much lower than the estimates that have been bandied about recently in the press. We are committed to bringing forward in the annual energy statements our estimate of the overall impact of all our policies—not only the low-carbon policies, but the energy-saving policies—on consumer bills. The last time we did that, it was estimated that in 2020 our policies would add just 1% to consumer bills, and that assumed a world in which gas prices are lower than they are today and in which oil prices are only $80 a barrel, instead of $118 a barrel. If we want to protect British consumers against the vagaries of these markets that are buffeted by events, such as those in Libya and the middle east, we have to move to low-carbon sources of electricity. That is good news for British consumers, not bad.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The Secretary of State has said little about the role of solar energy in future policy development. Representatives of the industry have told me that the Government’s feed-in tariff proposals have effectively decapitated the industry. What discussions has he had with industry representatives to overcome that and promote the industry?

[Chris Huhne]

My colleagues and I have had many discussions with the solar industry. The hon. Gentleman should know that nobody installing less than two tennis courts’ worth of solar panels has been in the least bit affected by the scheme announced by the Government whom he supported. For three years, the previous Government also made no allowance for those proposing to install more than two tennis courts’ worth of solar panels. I make no bones about the fact that we need to protect the consumer interest. If we had not acted, we would have taken so much money out of the budget that it would have affected not only small-scale solar, but other renewables. It is time to end boom and bust not just in the economy but in solar panels.

Electricity Market Reform

Debate between Chris Huhne and Adrian Bailey

Thursday 16th December 2010 Commons Chamber

[Chris Huhne]

We are consulting on two levels, as the hon. Lady will see in the documentation: 450 and 600 grams. There is inevitably a certain margin of error, but she will see that those are the two points in consultation.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Can I take up the theme of a previous questioner? The history of renewable projects has been bedevilled by planning delays and objections. There is enormous concern in the business community that the new Localism Bill will only reinforce those processes. What representations is the Minister making to his colleagues in the Department for Communities and Local Government to overcome this, in order that we have joined-up government and give necessary reassurance to the business community?

[Chris Huhne]

The hon. Gentleman is right. Some issues can be tackled at national level; one planning issue on onshore wind surrounds aviation impacts and radar, and we should obviously lead that at national level. But I refer him to the answer that I gave previously: local people should be able to determine local planning and, therefore, local impact. If they are on board, and if they are brought into the proposals, renewable projects go ahead. That is our experience throughout the UK, and that will be the right way forward in getting planning approval for renewable projects.

Annual Energy Statement

Debate between Chris Huhne and Adrian Bailey

Tuesday 27th July 2010 Commons Chamber

[Chris Huhne]

I am grateful to my hon. Friend for that question. One of the things that we are looking at in the context of making sure that there is no public subsidy for nuclear is the contingent liability regime and ensuring that there are no holes in it. In due course, we will be able to make a statement on that.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

I welcome the Secretary of State’s acknowledgement, albeit somewhat grudgingly, of the role of the new nuclear industry in providing for our future energy needs. I seek reassurance from him that his party’s previous objection to nuclear was not a factor in the withdrawal of the loan from Sheffield Forgemasters. If he can give that reassurance, will he at last give us a transparent and coherent explanation of why funding for extremely welcome projects at Nissan and Ford were allowable when funding for Sheffield Forgemasters was not?

[Chris Huhne]

I can absolutely and categorically give the hon. Gentleman an assurance that whatever he imagines to be the prejudices or otherwise of me or my party have absolutely nothing to do with the decision on Sheffield Forgemasters, which was a matter of affordability. I merely draw his attention to the written ministerial statement from my right hon. Friend the Secretary of State for Business, Innovation and Skills. That clearly sets out the reasons that underlay the decision.

Budget Resolutions and Economic Situation

Debate between Chris Huhne and Adrian Bailey

Thursday 24th June 2010 Commons Chamber

[Chris Huhne]

Before Opposition Members start chortling away, let me say that my hon. Friend makes a very good point. I would merely remind Opposition Members which Government raised council tax so steeply—the most regressive tax in the entire toolkit. Year after year under a Labour Government it was pushed up and up and up.

Let me now turn to the issue of growth and jobs. At this stage in every business cycle that I have followed, going all the way back to the recovery from the bust that followed the Barber boom in the early ’70s, the cry always goes up, “But where will the jobs come from?” That cry is particularly urgent whenever, as has too frequently happened, Governments are trying to deal with the legacy of past fiscal misdeeds. However, the forecast from the Office for Budget Responsibility is a reasonable central assessment and is similar to independent forecasts. It shows that the biggest impetus to growth this year comes, as is usual at this point in the cycle, from the inventory cycle. Recessions inevitably put businesses under enormous financial pressure. Businesses try to raise cash by cutting output and by meeting the demand for their goods from stocks, but that process has to exhaust itself as those stocks of finished goods run down. More of the demand for those goods then has to be met from output, and businesses once again gear up production. That is where we are today. The inventory cycle is a powerful stimulus. The OBR forecast has it contributing 1.2% of gross domestic product this year.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Let me take the right hon. Gentleman back to his defence of his party’s volte-face on VAT. He explained that VAT was not a regressive tax because of the range of exemptions from it. Will he tell us what exemptions there are now under the coalition Government that were not there before that make it less regressive than it was before?