Lord Barker of Battle
Main Page: Lord Barker of Battle (Conservative - Life peer)(11 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Jeremy Lefroy (Stafford) (Con)
8. What recent progress he has made on the roll-out of the green deal.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The green deal went live, on time, on Monday 28 January. The Government’s “Green Deal With It” communications campaign was launched the same day. By the end of February, according to the official statistics, 1,803 assessments had been carried out.
Mr Walker
I am grateful to the Minister for that answer. Major employers in Worcester, such as Wolseley, npower and Worcester Bosch, are looking forward to participating in the green deal, but the latter warned that for the programme to reach its full potential more ordinary installers need to be given the chance to sell it. What steps are the Government taking to reach out to installers and ensure that they have a chance to play a part in rolling out the green deal?
Gregory Barker
A whole range of installers will be absolutely vital, and I was delighted to see that Wolseley has said that it is seeing strong demand not only for its products, but for adviser training, as it is a trainer. For small and medium-sized enterprises, we are waiving all fees and oversight costs for the first two years. We are hosting a range of networking events with the Federation of Small Businesses, the British Chambers of Commerce and the CBI, and we are co-hosting eco roadshows with Energy UK. We are also committing money to training assessors and installers, and there is more to come.
Jeremy Lefroy
Stafford borough council is working with green deal providers to raise awareness among my constituents of access to the scheme. Will the Minister and his green deal team meet me and the council to discuss how we can encourage the best possible take-up in Stafford and the surrounding areas?
Gregory Barker
I would be delighted to meet my hon. Friend and his council. We are seeing a very encouraging degree of not only commitment but real enthusiasm from local authorities across the country. Local authorities will be key to a really ambitious roll-out.
Mr David Hanson (Delyn) (Lab)
Will the Minister reflect a little further on the question that my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger) put to the Secretary of State—namely, are the interest rates for the green deal too high to encourage take-up and ultimately too high for consumers to get a good deal out of the green deal?
Gregory Barker
I understand what lies behind this point. However, if the right hon. Gentleman looks at this carefully, he will see that when people quote interest rates such as the one for Nationwide they are not comparing like with like. Crucially, the green deal interest rate is fixed for 20 years. I am aware of only one other such product in the market. Access to the green deal interest rate is incredibly fair and open, and not only for people who are lucky enough to own their own homes.
Andrew Gwynne (Denton and Reddish) (Lab)
The Minister’s answer just will not do, because the blunt truth is that the green deal interest rate is set at almost 7%. Is it not the case that many people who take up the green deal will find that interest repayments end up costing more than the original measures, and, worse still, that if they try to repay their loan early they will be clobbered with hefty fines? How is that fair?
Gregory Barker
I will tell the hon. Gentleman what is not fair: scaremongering about the green deal, particularly when that puts off vulnerable people who would otherwise have no access to affordable finance. [Interruption.] The hon. Gentleman can scoff at 7%, but he should compare that to any other form of unsecured lending that is available to people on low wages or the minimum wage. How many people on low incomes, or people who are not lucky enough to be a home owner, can access interest rates like that? He might be a smart home owner himself, but he should think about those who do not have the same opportunities. This actually represents a really good deal.
Mr Dominic Raab (Esher and Walton) (Con)
5. What steps he is taking to reduce energy bills.
Sir Nick Harvey (North Devon) (LD)
6. What recent assessment he has made of the long-term environmental effects of Government support for large-scale biomass conversion.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
We agree that effective sustainability controls must be in place for bioenergy. We already have biomass sustainability criteria for the renewables obligation, and we now propose to improve them by adding new sustainable forest management criteria for wood fuel and a requirement for an independent audit, and by setting a trajectory so that greenhouse gas life-cycle savings targets become tougher over time.
Sir Nick Harvey
I welcome the commitment to reforestry targets, but how do Ministers stand up the rather curious proposition that wood burning is carbon neutral? They support the conversion of coal-fired stations to wood burning, but that is only carbon neutral if emission at the point of burn is ignored, and it takes up to 98 years for tree growth to neutralise that. Will the Minister confirm that this dubious practice is simply an interim measure? I understand the need to protect the investment at Drax and elsewhere.
Gregory Barker
Biomass certainly needs to be sustainable as well as affordable, but it is not carbon neutral. However, I can tell the hon. Gentleman that greenhouse gas savings from biomass are at least 68% less than those for coal. Although it may not be carbon neutral, it is certainly much cleaner so far as carbon is concerned.
Barry Gardiner (Brent North) (Lab)
A number of recent papers—the Searchinger paper, the Hudiburg paper and the Schulze paper—have noted the problems of life-cycle biomass. The Minister is right to have taken steps to address that in forest regrowth and the sustainability standards, but he has not yet addressed the impoverishment of soils and how the resulting increase in the use of fertiliser will lead to an increase in emissions. Will he publish the basis on which he amended his Department’s projections on biomass?
Gregory Barker
The hon. Gentleman makes a sensible point. He is right to highlight the impacts not just on the burning of wood or biomass, but on indirect land-use change. The Government are taking this seriously and we are working on it with colleagues at the Department for Transport. In order to be effective, land-use change needs to be dealt with on a pan-European basis. We would welcome support from throughout the House for work with our partners in Europe to put in place robust sustainability criteria.
Nigel Adams (Selby and Ainsty) (Con)
Is the Minister fully committed—by which I mean not just words, but urgent action—to conversion of coal-fired power stations, such as Drax and Eggborough in my constituency, to biomass, which is sustainable?
Gregory Barker
The Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes) met representatives of Eggborough this week and I can confirm that we are committed. As I have said, biomass conversion needs to be sustainable and affordable, and it is an important part of a balanced mix of clean technologies.
Christopher Pincher (Tamworth) (Con)
7. What assessment he has made of the Nuclear Decommissioning Authority’s process and timetable for determining credible options for plutonium reuse at Sellafield; and if he will make a statement.
Rehman Chishti (Gillingham and Rainham) (Con)
14. What steps his Department is taking to tackle fuel poverty.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
We have in place the green deal and the energy company obligation, which we expect to provide support for at least 230,000 low-income and vulnerable households each year. In addition, our warm home discount scheme supports 2 million households in total, and this winter has already helped more than 1 million of the poorest pensioners. We also make cold weather payments and winter fuel payments.
Mr Sanders
The previous Government and this Government have a good record of working with energy companies to try to help vulnerable people. Could more be done, particularly for disabled pensioners who own their own home?
Gregory Barker
My hon. Friend is right and I am sure more could be done. That is why we designed the green deal and the ECO to be flexible and responsive to the needs of a range of energy consumers, particularly the fuel-poor. If my hon. Friend has any particular ideas on that, I would be happy to discuss them with him.
Rehman Chishti
Will the Minister provide an update on the Government’s plans to publish a refreshed strategy for tackling fuel poverty this year?
Gregory Barker
My hon. Friend is absolutely right; the Government are committed to bringing new ambition and vision to tackling fuel poverty. The last fuel poverty strategy was published 10 years ago, and we will be coming forward this year with an ambitious strategy, pulling together all strands of policy and building on the latest evidence and creative thinking in that area. I would welcome my hon. Friend’s input, given his knowledge and experience in the area.
Alison Seabeck (Plymouth, Moor View) (Lab)
I make my usual declaration of indirect interests. All MPs will be aware of the effect of fuel poverty on our constituents. A housing association in my constituency is trying desperately to upgrade its properties, which are in an appalling condition. It has fallen foul of the vested interest of a financial investment company which is the latest owner of the freehold for those properties. The company wants only to make a fast buck and is not prepared to renegotiate the contract, but in the meantime my constituents are suffering from bad health and an inability to pay their fuel bills. What can the Department do to help tackle those vested interests?
Gregory Barker
The hon. Lady is right and has a real point. The leasehold-freehold issue is one of the knottiest to tackle and has eluded successive Governments. I would be happy to sit down with her and look at that specific case to work out what more we can do to help the sorts of tenants to whom she refers.
Mr Peter Lilley (Hitchin and Harpenden) (Con)
Will the Minister confirm that, even by his own contentious estimates purporting that thanks to his measures the average effect of reduced energy use will offset the increase due to green levies, taxes and subsidies, two-thirds of households will be worse off? Since giving those figures, the Government’s estimates of savings from energy-saving measures have been reduced.
Gregory Barker
I am afraid I just do not agree with my right hon. Friend, despite his considerable experience and knowledge of the sector. None of us knows for sure whose forecasts are right, and we will not know until the time. A great deal of uncertainty is attached to all forecasts, but the latest Government forecasts to 2020 show that consumers will be better off due to our policies.
Michael Fabricant (Lichfield) (Con)
15. What steps he is taking to ensure that oil from the North sea continues to make a contribution to UK energy needs; and if he will make a statement.
Mr John Baron (Basildon and Billericay) (Con)
17. What steps he is taking to increase competition in the energy market.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
Like my hon. Friend, we want more competition. One of the biggest barriers to entry and to greater competition is low liquidity in the wholesale power market. Ofgem is currently taking forward reforms to address that issue, and we are supportive of its progress, but the Government are also seeking backstop powers in the Energy Bill to allow us to act, should Ofgem and industry actions prove insufficient.
Mr Baron
I thank the Minister for that response. The billing stakeholder group produced a number of recommendations to increase competition, including putting more tailored information on the face of quarterly bills. Those recommendations were taken up by Ofgem and they chime with what the Prime Minister has said, but we know that the energy companies oppose them. Will the Minister give us an assurance that the energy companies will not be allowed to row back on those recommendations?
Gregory Barker
Yes, I can. I pay tribute to my hon. Friend for ensuring that these proposals, which will make a transformational difference to consumer bills, end up being enacted, and for the work of his stakeholder group. I can tell him that the proposals will be part of the licence conditions, and that if energy companies fail to deliver on them, they could be fined up to 10% of turnover. We are of course taking powers in the Energy Bill as well.
Andrew George (St Ives) (LD)
18. What recent assessment he has made of progress in the marine renewable sector.
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
The most recent assessment of the marine energy sector was undertaken last year in the UK renewable energy road map. Our assessment showed that marine energy had real potential to contribute to our emission reduction targets beyond 2020. Up to the end of last year, 11 MW of wave and tidal technologies were deployed around the UK, but the coalition Government have big ambitions for the sector, which could expand to as much as 27 GW in the coming decades.
Andrew George
I am grateful to the Minister for that response. The £20 million investment that was announced two weeks ago is very welcome for marine renewables, but it will go into the tidal sector, which is already reasonably well developed. There are also major opportunities in wave power, however. Will the Minister meet me and industry representatives to try to move the wave hub forward and to bring it up to a commercial scale?
Gregory Barker
Most certainly; I know that my hon. Friend is a powerful champion of wave power. I am delighted with the progress of the marine energy park in the south-west. I was there last week for the RenewableUK conference to witness the signing of a memorandum between the south-west marine energy park and the Pentland Firth and Orkney waters marine energy park. I would be delighted to work with my hon. Friend to see what more we can do to drive the exciting progress in this sector.
Andrew Jones (Harrogate and Knaresborough) (Con)
T1. If he will make a statement on his departmental responsibilities.
Chris White (Warwick and Leamington) (Con)
T4. In my constituency, a number of groups are looking at ways to set up new renewable energy projects. However, I have met some who have faced barriers from organisations such as the Environmental Protection Agency and other Government bodies. Will the Minister outline what help is being given to local community groups to get their organisations off the ground and will he look at ways of ensuring that the regulatory regime is proportionate both in cost and time to the scale of the projects involved?
The Minister of State, Department of Energy and Climate Change (Gregory Barker)
This coalition is absolutely committed to driving a transformation in the take-up of community energy, so we are really keen to help community groups such as the ones my hon. Friend mentions. That is why we established LEAF—the local energy assessment fund—with £10 million and the low carbon communities challenge with up to £20 million. I would be delighted to talk to my hon. Friend about how we can help his communities to access that cash.
Barry Gardiner (Brent North) (Lab)
T7. What could be more topical than a challenge to the recently announced infallibility of the Minister of State, the hon. Member for South Holland and The Deepings (Mr Hayes). Indeed, there has been such a challenge—from Mitsubishi, Vestas, Alstom, Areva, Doosan and Gamesa. The Minister maintains that there should be no decarbonisation target until 2016; they have said that postponing the 2030 target decision until 2016 creates entirely avoidable political risks and slow growth in the low-carbon sector, handicaps the UK supply chain, reduces UK research and development and produces fewer jobs.
Duncan Hames (Chippenham) (LD)
In how many of the homes in need of improved insulation does the Minister expect measures to be taken over the remainder of this Parliament?
Gregory Barker
We do not have an exact figure, but we do think the green deal framework, supported by the ECO, is the best way of driving forward the very ambitious take-up of insulation measures that we will need not just in this Parliament, but throughout the decade.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I am sure the Secretary of State knows about the Innovate UK conference held in Islington in London this week. Will he take a greater interest in clean, energy-efficient, sustainable production? There is a great market for Britain in this field; we lead the world, but we need leadership to make sure we conquer China, India and other markets.