Oral Answers to Questions

Neil Carmichael Excerpts

Thursday 16th September 2010 Commons Chamber

[Gregory Barker]

I am extremely sad to hear that the right hon. Lady will be taking early retirement, and I am sure that she will find herself pressed back into service, whoever the leader of her party is. Renewable heat is vital to our agenda and I can assure her that that commitment runs right through the Department and is just as strong as when she was there, if not stronger.

[Neil Carmichael (Stroud) (Con)]

6. What plans he has to introduce a floor price for carbon.

[The Secretary of State for Energy and Climate Change (Chris Huhne)]

In the Budget, Her Majesty’s Treasury and Her Majesty’s Revenue and Customs announced that the Government will publish proposals this autumn to reform the climate change levy to provide more certainty and support to the carbon price. Subject to consultation, the Government will bring forward relevant legislation in the Finance Bill 2011.

[Neil Carmichael]

I thank the Secretary of State for that encouraging answer because, of course, that will be a prelude to more growth and more jobs. How can we be sure that those measures will stimulate investment in green technology?

[Chris Huhne]

I am a great believer in the virtues of the market and of the price mechanism, and I am sure that my hon. Friend is, too. It is fairly well established that if the price of something goes up, the supply of it tends to follow. If we provide a carbon price floor, as we intend to do, we anticipate that that will send precisely the sort of price signals to suppliers that will bring forward the capacity that we need to provide us with energy security in a low-carbon way.