Oral Answers to Questions
Debate between Kelvin Hopkins and Ed Davey
Mr Davey
Talking of taste, Mr Speaker, I thought that the question from my right hon. Friend for Bexhill and Battle (Gregory Barker) was very tasteful, and that he made a very sensible point. I am grateful to him. I think it is clear that, although there are some differences between us on some aspects of energy policy such as onshore wind, the two parties have been able to work together in the country’s interest to achieve our objective of providing affordable, secure, green energy. I am grateful to the Minister of State for what he said earlier, although he did make me laugh when he claimed that the Chancellor was the force behind the tidal lagoon.
Kelvin Hopkins (Luton North) (Lab)
What discussions has the Secretary of State had with the Chancellor about the damage that could be caused to community energy co-operatives by the proposed exclusion of co-operatives from future tax allowance schemes?
Mr Davey
We have discussed the matter extensively with the Treasury, and we have introduced something called social investment tax relief. It is better than its predecessor, because it gives community energy companies tax relief not just on equity finance but on debt finance, thus expanding the instruments.
There is an issue concerning which types of organisation should be able to claim the tax relief. The whole purpose of supporting community energy is to support schemes that give real benefits to the community, and energy co-operatives do not necessarily do that, although they benefit their membership. However, we have been working with the community energy sector as well as the Treasury, and I think that if the hon. Gentleman reads today’s update, he will see that we have come up with a very effective solution.
Oral Answers to Questions
Debate between Kelvin Hopkins and Ed Davey(9 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Kelvin Hopkins (Luton North) (Lab)
T7. What is the Government’s current position on constructing a Severn barrage lagoon to generate a substantial proportion of the nation’s electricity? If the Government are serious about their green ambitions, should they not be forging ahead with this project now?
Mr Davey
The hon. Gentleman may be muddling up the barrage and the lagoon. We have said that we will look at any environmentally sensitive and affordable proposal for the Severn barrage, if the private sector wants to propose one. To date, that has not happened, although he may well have missed the fact that my right hon. Friend the Chancellor of the Exchequer made it clear in the autumn statement that we are looking seriously at tidal lagoons. I recently published a consultation on how we would go about agreeing a contract for difference for a tidal lagoon.
Oral Answers to Questions
Debate between Kelvin Hopkins and Ed Davey
Mr Davey
The right hon. Lady will remember that yesterday I made it clear that we have real concerns about the energy market. That is one reason why we support the competition inquiry. I made it very clear that we are worried about the fact that when wholesale prices go up, retail prices follow them quickly, which is the rocket effect, but that when wholesale prices come down, retail prices do not come down as quickly—the feather effect. We believe that that has to be addressed. The previous Government had the same problem and they did not address it. We are addressing it.
The problem with the proposed regulation, as I told the House yesterday, is that when we look at the detail we can see that it would fail and would lead to prices going up. It is a bungee-jumping approach to energy prices and it would increase volatility and fluctuations. If the House wants a little more analysis, let me point out that a few months ago wholesale prices were coming down, yet in the past few weeks they have gone up. Are the Opposition saying that they would force energy companies to move directly with daily and weekly moves in the wholesale costs? That is surely madness.
Kelvin Hopkins (Luton North) (Lab)
8. What recent representations he has received on the proposed changes to financial support for solar PV.
Oral Answers to Questions
Debate between Kelvin Hopkins and Ed Davey
Mr Davey
I agree with the right hon. Gentleman. It is very good news that jobs are being created. The story of onshore, offshore, the renewables industry and our energy policies generally is to bring forward new investment and jobs. We are proud of that, and will continue with that support.
Kelvin Hopkins (Luton North) (Lab)
6. What steps he is taking to help households improve their energy efficiency.
Oral Answers to Questions
Debate between Kelvin Hopkins and Ed Davey
Kelvin Hopkins (Luton North) (Lab)
We are soon to see a new generation of highly efficient solar panels, and we are also soon to see efficient domestic battery storage technologies. Combining that with a mass programme of insulation and a Severn barrage would remove the need for nuclear generation. Will the Government think again about the need for it?
Mr Davey
The uncertainty surrounding climate change, and surrounding all technologies, is such that it would be irresponsible not to pursue every possible low-carbon technology. The hon. Gentleman is right to suggest that renewables have a positive future, as does solar power. We propose to deliver an additional 620,000 installations at a cost of just £500 million by 2015—that is, to deliver nearly three times as many installations as were delivered under the old scheme, at a third of the price.
Oral Answers to Questions
Debate between Kelvin Hopkins and Ed Davey(13 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Davey
I am grateful to the hon. Gentleman for raising this matter. Pre-packs, which is the name of the process that he is talking about, are a way of dealing with companies that are already insolvent. In some circumstances they can work well. However, I recognise the concerns that he has raised about the process, especially when the sale is backed to connected parties, such as the phoenix-type companies that he talked about. I am currently considering the responses to a consultation that the previous Government held on improving transparency and confidence in the pre-pack approach to administration. I plan to make an announcement on that in the near future, and I would certainly be happy to meet him.
Kelvin Hopkins (Luton North) (Lab)
My hon. Friend the Member for Luton South (Gavin Shuker) and I have been in correspondence with the Secretary of State about the future of the General Motors van plant in Luton. I thank him for his reply, which we received this week. It seems from press reports that, as of yesterday, there are still uncertainties about the future of the van plant. Will he now intervene directly with the company to ensure that a new vehicle comes to Luton for the period after 2013?