Thursday Volume 536 1 December 2011 No. 234 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 1 December 2011 £5·00 © Parliamentary Copyright House of Commons 2011 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through The National Archives website at www.nationalarchives.gov.uk/information-management/our-services/parliamentary-licence-information.htm Enquiries to The National Archives, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 1063 1 DECEMBER 2011 1064 Roger Williams (Brecon and Radnorshire) (LD): The House of Commons coalition agreement emphasised anaerobic digestion as a technology to take forward, yet many people who are Thursday 1 December 2011 keen on it find obstacles in their way, including funding. Will the Green investment bank be able to provide funds for those people so that they can take their The House met at half-past Ten o’clock projects forward? Chris Huhne: I thank my hon. Friend for his question. PRAYERS He is right that anaerobic digestion is one of the technologies that we want to encourage. Indeed, it falls broadly within the renewables remit of the Green investment [MR SPEAKER in the Chair] bank, but my understanding of the problems with anaerobic digestion is that they relate principally to planning and objections, rather than funding. Funding Oral Answers to Questions is not the key issue with AD. Caroline Flint (Don Valley) (Lab): As we heard on Tuesday, because of the Government’s cuts, which are going too far and too fast, the economy is flatlining, ENERGY AND CLIMATE CHANGE unemployment is rising and the Government will miss their borrowing targets. In his autumn statement the The Secretary of State was asked— Chancellor lauded the Green investment bank as proof of his green credentials, but on 9 September the Government Green Investment Bank confirmed in a written answer that the Green investment bank would only have full borrowing powers from April 1. Stephen Mosley (City of Chester) (Con): What 2015, subject to public sector net debt falling as a recent discussions he has had with the Secretary of percentage of GDP. Will the Secretary of State confirm State for Business, Innovation and Skills on the effect that the Government’s policy is that we will not have a of the Green investment bank on levels of investment proper Green investment bank with borrowing powers in renewable energy infrastructure. [83959] until 2016 at the earliest? The Secretary of State for Energy and Climate Change Chris Huhne: I thank the right hon. Lady for her (Chris Huhne): I regularly discuss the Green investment question. When the Green investment bank will be able bank with ministerial colleagues, including the Secretary to borrow has been set out clearly from the beginning. of State for Business, Innovation and Skills, and am She wants to make the point that the borrowing powers confident that it can play a major role in capitalising of the Green investment bank are delayed, but the private sector investment in renewable energy. reality is that we are the only leading industrial country never to have had an infrastructure bank, despite the Stephen Mosley: I thank my right hon. Friend for his common experience of the 1930s and despite 13 years answer and welcome the Chancellor’s announcement in of Labour government. I very much hope that we will his autumn statement earlier this week of £200 million meet the net debt-to-GDP target as soon as possible, in incentives to support the green deal. Will the Green and when we do the GIB will be able to borrow. investment bank be able to back up that important investment and provide low-cost loans to support the Energy Prices green deal? 2. Simon Wright (Norwich South) (LD): What recent Chris Huhne: Supporting energy efficiency projects is discussions he has had with major energy companies indeed part of the Green investment bank’s remit, and on their pricing policies. [83961] clearly that includes the green deal. We can certainly envisage a key role in the launch of the private finance, The Secretary of State for Energy and Climate Change because after all the green deal is private finance, but at (Chris Huhne): I am sorry, Mr Speaker, but I do not the very beginning it will be important that the markets have the answer to the question. gradually get used to the idea of that new type of instrument, and the Green investment bank could have Mr Speaker: It is on what discussions the Secretary of an important role in facilitating that. State has had with major energy companies on their pricing policies. Mark Lazarowicz (Edinburgh North and Leith) (Lab/ Co-op): I am glad to hear that the Secretary of State is Chris Huhne: Thank you, Mr Speaker. I was under discussing the issue with colleagues. When will a decision the impression that the question had been withdrawn, on the location of the Green investment bank be made but I am happy to answer my hon. Friend. and when will it be up and running for business? We have had a number of discussions with energy companies, most recently the energy summit, in which Chris Huhne: The first investment should be made in we discussed the whole issue of consumer pricing. the spring of next year. The location will be a matter first for the advisory board, whose advice I also anticipate Simon Wright: I thank the Secretary of State for his will be available next year. The hon. Gentleman will response. I am concerned about the extent of savings bear in mind that the Department for Business, Innovation that are offered to the internet savvy and subsidised by and Skills is leading on this. offline customers. Given the digital divide, with many of 1065 Oral Answers1 DECEMBER 2011 Oral Answers 1066 the poorest households and older customers not having that the impact on many other businesses right across internet access, what action is he taking to ensure that the country, through reduced consumer spending, would everyone pays a reasonable price for their energy? have been substantial. Chris Huhne: One of the key issues is that people who Domestic Energy Costs do not have online access should be able to get sources of advice that enable them to take advantage of cheaper 4. Ian Murray (Edinburgh South) (Lab): What steps tariffs. That may be people who are elderly or not he is taking to assist households with their energy costs. necessarily able to get online, and one of the things that [83963] we are attempting to do is to encourage charities in the sector and organisations such as Citizens Advice to 10. David Wright (Telford) (Lab): What steps he is provide help when it is not forthcoming from family taking to assist households with their energy costs. members. They are also a very important way in which [83971] the elderly can be helped to move on to cheaper tariffs, however, and I know that a lot of family members do The Minister of State, Department of Energy and take the time to ensure that elderly members of the Climate Change (Charles Hendry): We expect the warm family get cheap tariffs. home discount scheme to help about 2 million low-income and vulnerable households per year. This winter, energy Tristram Hunt (Stoke-on-Trent Central) (Lab): Energy suppliers will be required to provide automatic rebates pricing affects our industrial competitiveness, so although of £120 on energy bills to more than 600,000 pensioners I welcome the Government’s steps in the autumn statement on the pension credit guarantee. In future, the green on energy-intensive industries, I note the real concern in deal and the energy company obligation will provide the ceramics sector that such steps will do nothing to energy efficiency measures at no up-front cost. assist it. Will we see further announcements in the coming weeks for industries such as ceramics, particularly Ian Murray: The Minister will be aware that the on capital allowances? Secretary of State, at the Liberal Democrat conference just a few weeks ago, said: Chris Huhne: One key thing with the energy-intensive “None of us should have to save on warmth in a cold winter. industries is that it is crucial to help those that will be Some of the most vulnerable and elderly will shiver—and worse—if most affected because of electricity intensity and their we do not help.” competitive position in terms of trade. We will set out Why then does he believe that the Government should the full details of that in the consultation. cut winter fuel payments to 12.7 million pensioners? Mr John Baron (Basildon and Billericay) (Con): The Charles Hendry: The hon. Gentleman will be completely Minister will be aware that one recommendation of the aware that that policy was announced by the previous billing stakeholder group was that energy suppliers Government, who did not put the money into their should send a tailored communication to customers, budget for it to go forward. We have therefore continued detailing in pounds, shillings and pence how much they the policy that was put in place, but we have introduced could save by transferring to that company’s cheapest the most rigorous scheme of energy efficiency in our standard direct debit tariff in time for this winter. Two homes—rolling it out in a way not even dreamed of by suppliers, Scottish Power and npower, have complied,; the previous Administration—to bring lasting help and four have not. Will the Minister now look at bringing care to support such people.