Scotland Bill

Debate between Graham Allen and Callum McCaig

Monday 6th July 2015 Commons Chamber

[Mr Allen]

If other hon. Members wish to speak—forgive me, but I did not see anyone else rising—it is a very good reason for me to shut up and sit down.

[Callum McCaig]

Amendment 154 addresses the consultation process on the renewable electricity incentive schemes. Paragraph 41 of the Smith commission report states:

“There will be a formal consultative role for the Scottish Government and the Scottish Parliament in designing renewables incentives”.

Clause 53 provides that that would not apply in relation to

“any levy in connection with a renewable electricity incentive scheme”—

or to anything that the Secretary of State deems to be a minor, technical or administrative change. In the light of recent matters that certain parties seem to think are minor, administrative or technical, but that my party views as a major attack on Scotland’s renewable energy industry, the inclusion of those words gives some cause for concern, as does the rowing back on what was promised in the Smith report.

The fundamentals of this are clear. The all-party devolution committee, about which we have heard much in the last few days of debate, said:

“Clauses 56 and 58 are identical to draft clauses 42 and 44 but Clause 53”—

the one I am talking about—

“has been changed, and does not require the Secretary of State to consult the Scottish Ministers about any levy in connection with a renewable electricity incentive scheme, it is understood that this relates to Contract for Difference—Supplier Operational Levies and Capacity Market—Settlement Cost Levies. These are levy payments made by Suppliers to cover the operational cost of administrating Contract for Difference and Capacity Market.”

Such levies are fundamental to designing renewable incentives. The spirit and letter of Smith demand formal consultation with the Scottish Government. Frankly, I do not understand what the consultation on renewable incentives will be about if it does not include the money required to enable them to happen.

I want to hear from the Minister on this issue, but I have one final point to make about the message that will be sent to the renewable industry in Scotland and beyond if amendment 154 is rejected. Investors are already on edge because of the disastrous handling of the early closure of the renewables obligation. If the promise of meaningful consultation is withdrawn, it prompts the question of what else the Government have in store to wreck Scotland’s renewables potential.