Lord Barker of Battle
Main Page: Lord Barker of Battle (Conservative - Life peer)(12 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text
Joan Walley (Stoke-on-Trent North) (Lab)
5. What representations he has received on feed-in tariffs from people in Stoke-on-Trent.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The Department has received a significant number of telephone inquiries, responses to consultation exercises and other pieces of correspondence relating to the consultation on feed-in tariffs. These are very likely to have included representations from the people of Stoke-on-Trent. However, at this early stage I am afraid that I cannot give the hon. Lady a detailed breakdown.
Joan Walley
The Minister did in fact receive a letter from the chief executive and leader of Stoke-on-Trent council telling him that what is at stake with the Government’s review of the feed-in tariff is 100 jobs and 4,000 council homes that will lose their opportunity to reduce heating bills. What is going on in Stoke-on-Trent is echoed all around the country. Given that everybody agrees that the feed-in tariff needs to be reviewed, but in a phased way, does the Minister agree that, at the very least, the existing tariff levels should be honoured for aggregated solar photovoltaic schemes where there are existing contracts?
Gregory Barker
There is nothing retrospective about the proposals that we are consulting on. The hon. Lady must accept that demand for the scheme is overwhelming compared with the budget that is available, and way beyond that which was anticipated by her own Government. We have to make very difficult decisions in balancing one factor against the other, but at the centre of our decision-making process will be a concern to ensure that this is a viable scheme that keeps the industry alive for the long term and does not support a short-term bubble.
Mr Jim Cunningham (Coventry South) (Lab)
7. What representations he has received on the length of time allocated to his consultation on feed-in tariffs for solar PV; and if he will make a statement.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The Department has received a number of representations in response to our proposals to reduce feed-in tariffs for solar PV, including the length of time allocated to our consultation. The consultation closes on Friday 23 December. Detailed information on the representations will be provided in the Government’s response to the consultation in January.
Mr Cunningham
Is the Minister aware that many people who have given up their jobs or borrowed money from banks to invest in this area stand to lose out? What does he intend to do about that?
Gregory Barker
We intend to put the industry back on a sustainable path to growth, far more in line with the projections that were made by the former Secretary of State for Energy and Climate Change who is now the Leader of the Opposition. We need a scheme that supports the industry but does not impose burdens unnecessarily on hard-pressed consumers.
Gordon Henderson (Sittingbourne and Sheppey) (Con)
Will my hon. Friend explain why the cut-off date of 12 December for new projects to be accepted at the current feed-in tariff is different from the consultation end date of 23 December? Why the two-week gap?
Gregory Barker
The reference date of 12 December is what we are consulting on, but the changes that we are proposing would not actually kick in until the beginning of April. We had to choose a date that we thought fair to allow people who had contracts in the pipeline to complete those contracts, but without allowing sufficient time for people to enter the market who were not already engaged in the process, and we chose April.
Caroline Flint (Don Valley) (Lab)
We all know that the Government’s consultation, which will last half the normal length of time and close after the cuts have already come into effect, is a sham. Because of the Government’s rushed changes to the feed-in tariff, which go too far, too fast, thousands of jobs are at risk. Last night, 4,500 staff at Carillion were warned that their jobs could go, but this morning the Secretary of State told the “Today” programme that he did not recognise that estimate, and that the cuts and job losses that he will cause were just a “sensible course correction”. Does the Minister believe that causing unemployment on that scale is a price worth paying?
Gregory Barker
It is so interesting how the right hon. Lady comes to the House with such inconsistent messages. One moment she wants to protect the consumer, the next she wants to push high costs on to consumer bills without a thought for the fuel-poor. The fact is that we are doing our best to contain a bubble caused by the ineffective scheme that her Government set up. We will put the industry back on a sustainable footing and do the right thing by the consumers whom she has conveniently forgotten.
Caroline Flint
Sorry excuses for a disastrous policy. I think it is 60p on an annual bill—in fact, in answer to a parliamentary question last week we were told that it was only 21p on the annual bill from 2010 to 2011. The fact is that the Minister’s cuts will hit families trying to protect themselves from soaring energy bills, put thousands of jobs and businesses in jeopardy and give the lie to the Government’s promise to be the greenest Government ever.
Last week, we read reports in the press about a meeting in the Minister’s Department between officials and the solar industry, in which officials said that the cuts to feed-in tariffs were part of a deliberate policy to kill off the solar industry. Will he come clean today and say that that is not his policy? If not, even at the eleventh hour and despite the damage that has been done, will he change course to enable solar to be put on a real sustainable footing for the future?
Gregory Barker
I think this ridiculous scaremongering is quite disgraceful. The right hon. Lady wants to talk up the problem and talk down the industry, and this pathetic attempt to smear my officials is frankly repugnant. It is her scheme that we are trying to fix—it was put in place by the last Labour Government. We will fix it and put the industry on a sustainable footing, but we should not take any lessons on budgetary control from the party that left us with a catastrophic deficit and drove this country to the brink of ruin. Shame on you!
Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)
8. What assessment he has made of the potential benefits of the renewable heat incentive for rural and remote households.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The renewable heat premium payment, the initial heat support scheme launched on 1 August, is targeted at off-gas-grid homes, particularly those in rural and remote areas. It is too early to make an accurate assessment of the benefits, but we intend to evaluate them fully next year to feed into developing future support for renewable heat.
Dr Poulter
The Minister will be aware that 8% of UK households rely on oil for their central heating, many of which are in rural and remote communities, and that many people who use oil central heating are the frail elderly and people on fixed incomes. When he consults on the feed-in tariffs, will he look into the advantages of biofuels as a means of both driving down carbon emissions and supporting lower energy bills in rural communities?
Gregory Barker
My hon. Friend makes some excellent points. Sustainably sourced biofuels for electricity, including bioliquids, are already supported under the renewables obligation, but they are not currently supported by the feed-in tariffs. We will launch phase 2 of the feed-in tariff comprehensive review, which will consider their potential expansion to new technologies such as bioliquids. I certainly take his points on board.
Dr Alan Whitehead (Southampton, Test) (Lab)
Does the Minister consider that the renewable heat incentive makes sufficient provision for the encouragement of domestic and small-scale combined heat and power boilers, which are particularly appropriate to off-grid households but may not be fully covered by the provisions of the RHI because they are not necessarily supplied by fully biogas-based sources? Is he willing to investigate that and consider whether the RHI could support such devices to a better extent?
Gregory Barker
I am very willing to do so indeed. The RHI has not been launched in full for domestic appliances—we are currently trialling it with the RHPP—but I am keen to support micro-CHP in the way that the hon. Gentleman suggests. He is an expert on this area and I would be happy to work with him to see what further support we need to drive forward this exciting technology.
Chris White (Warwick and Leamington) (Con)
T6. In my constituency, there are plenty of small businesses, co-operatives and charities that wish to play their part in building a greener economy. Many are concerned about some of the changes to feed-in tariffs but are hopeful that other measures such as the green deal will enable them to grow. Will the Minister give an assurance that the Government will make it as easy as possible for small businesses to get involved in the delivery of the green deal?
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
I can give my hon. Friend an absolute assurance. In fact, he may like to join me on 12 December when I host a round table specifically for small and medium-sized enterprises to work out how they can become key delivery partners in the green deal, which will provide a huge opportunity for local partnerships in exactly the way my hon. Friend suggests.
Gregory Barker
I should be happy to do so. It is true that older properties without damp courses, many of which were built before the first world war, are more difficult to treat, and much more research and development is needed to ensure that we do not unintentionally cause more problems than we solve.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
T9. I am glad to hear that the Secretary of State and the Minister are going to the climate change conference in Durban next week, but has the Secretary of State not left it too late? Is there not a danger that the conference will not produce the outcome that we want? What is the Secretary of State doing to ensure that we secure an international agreement, especially in the light of reports that have appeared over the past few days of a lack of progress in the negotiations?
Ian Mearns (Gateshead) (Lab)
Will the Secretary of State agree to meet me and my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah) to discuss the announcement of redundancies by Carillion Energy Services, which employs people in both our constituencies, and the fact that he is putting thousands of real people’s jobs at risk by slashing feed-in tariffs? The Minister accused my right hon. Friend the Member for Don Valley (Caroline Flint) of scaremongering earlier, but redundancy notices have been served to 4,500 employees.
Gregory Barker
The hon. Gentleman makes a legitimate point. Obviously, we are concerned about any job losses anywhere in the economy, and I will, of course, be very happy to meet him and his hon. Friend.
Julian Smith (Skipton and Ripon) (Con)
As Leeds, Yorkshire is the second largest financial centre in the UK and a leader in green energy investment, does the ministerial team agree that it is the ideal location for the Green investment bank?