Previous SectionIndexHome Page


9.50 pm

The Financial Secretary to the Treasury (Mrs. Barbara Roche): That was an extraordinary speech by the hon. Member for Grantham and Stamford (Mr. Davies). It was yet another example of the understated way in which he makes his case. He would have better spent his time being present for the entire debate, as I have been, rather than just making his ridiculous remarks at the end of it. In the short time remaining to me, I shall deal, as he should have done, with the remarks that have been made on both sides of the House. I think that that is what the House expects from a winding-up speech.

The right hon. Member for Wells (Mr. Heathcoat-Amory) said that heavy industry already had an incentive to be energy efficient. As Lord Marshall noted, the best evidence available of possible achievements comes from the energy technology support unit. Its work suggests that there is scope for further improvements in energy efficiency across industry.

The hon. Member for Hazel Grove (Mr. Stunell), who speaks for the Liberal Democrats on these issues, said that, according to the consultative document, the levy will not be shown on bills. That is clearly not so. We are consulting on several design issues, including whether to show the levy on bills. As my hon. Friend the Member for West Bromwich, East (Mr. Snape) rightly said, the Liberal Democrats must decide once and for all whether they are in favour of this measure. Once again, they talk big on the environment, but when it comes to supporting constructive Government proposals, they are found wanting.

The hon. Member for Hazel Grove asked why renewables could not be exempt. As he will know if he has considered the matter carefully, we have not ruled that out. We have proposed that some of the revenue raised will be used to provide additional support for renewable sources of energy. He said that the £50 million for energy efficiency was not enough, yet the present budget for the energy efficiency best practice programme is about £15 million a year. We are, therefore, proposing a considerable step up, and it would be nice if, for once, the hon. Gentleman gave us some credit for it.

Mr. Stunell: Will the Financial Secretary give way?

Mrs. Roche: No, I do not have time.

My hon. Friend the Member for West Bromwich, East asked me to take into account the situation in his constituency. We shall of course consider in great detail what he says to us. If he will send me the details of the

20 Jul 1999 : Column 1074

example that he gave, we will consider them carefully. He asked what revenue neutral means. We have said right from the beginning that the levy will entail no increase in the burden of tax on business as a whole.

The right hon. Member for Wells mentioned the 50 per cent. figure, but did not say that it is purely illustrative. He paid no heed to that whatever.

Mr. Heathcoat-Amory: There is one figure that is not illustrative, because it is in the Government arithmetic, which is that this tax will raise £1.75 billion a year. If the Minister starts making concessions, as she is now hinting, or if other companies exempt themselves from the tax by moving abroad, how will she obtain that extra revenue from other companies?

Mrs. Roche: The right hon. Gentleman has a cheek. We have set out--

Mr. Francis Maude (Horsham): She has no idea what the answer is.

Mrs. Roche: The right hon. Gentleman asked a question and, if the shadow Chancellor will give me the opportunity instead of heckling from a sedentary position, I will give him the reply. We set out the figure. We have made it absolutely clear right from the start that we would consult. As my hon. Friend the Member for Rotherham (Mr. MacShane) has said, it is unprecedented for a Government to allow that period of consultation, and we shall ensure that it takes place.

I tell my hon. Friend the Member for West Bromwich, East that we would be happy to receive any suggestions for the design of the levy that would increase its environmental effectiveness while protecting competitiveness. [Interruption.] The Members on the Opposition Front Bench continue to chatter throughout this. I would have thought that they would have been interested in hearing about the competitiveness of British industry, but they obviously are not.

The hon. Member for Banbury (Mr. Baldry), a member of the Select Committee on Trade and Industry, mentioned the cut in national insurance. I remind him that it was the Government of whom he was a member who introduced a cut in NICs, when introducing the landfill tax in 1996. Yet again, the Opposition are suffering from collective amnesia.

The hon. Member for Banbury also said that the levy was badly targeted and inefficient. The design very closely follows Lord Marshall's recommendations and, as my hon. Friend the Economic Secretary has said, many other countries believe that carbon or energy taxes have a role to play in helping to meet the climate change targets.

My hon. Friend the Member for Derby, North (Mr. Laxton) mentioned mineral oils. Mineral oils are subject to excise duty, and the Budget announced phased increases in gas oil and fuel oil duties.

The hon. Member for East Worthing and Shoreham (Mr. Loughton) drew attention to what is happening with regard to the electricity pool. We shall take the review of the electricity pool trading arrangements into account in designing the levy, and the Government, unlike the previous Conservative Government, will clean up the situation that was left for us and deal with it.

20 Jul 1999 : Column 1075

The hon. Member for Beaconsfield (Mr. Grieve) seemed to be saying, "Yes, something needs to be done, but what can we do?" He seemed to suggest that we return to the discredited system of the Conservatives' imposition of VAT on fuel. We know what they did and what it did to fuel poverty--and the hon. Gentleman wants to return to that. The Conservatives generally are still wedded to that.

My hon. Friend the Member for East Carmarthen and Dinefwr (Mr. Williams) rightly mentioned energy incentives. We shall look at those.

In Conservative Members, we see a party that, when it was in government, spoke big on the environment, but did nothing about it, and which turns its views in opposition. The Leader of the Opposition said:


Now the Conservatives change their mind. Conservative Members all stood on a manifesto that said:


    "we will continue to use the tax system and other incentives to encourage the use of vehicles and fuel which do not pollute the environment. And, we will continue to explore policies based on the principle of polluter pays".

It is rich. They say one thing to the country when they are seeking votes and another in the House.

Mr. James Arbuthnot (North-East Hampshire) rose in his place and claimed to move, That the Question be now put.

Question, That the Question be now put, put and agreed to.

Question put accordingly, That the original words stand part of the Question:--

The House divided: Ayes 132, Noes 346.

Division No. 261
[9.59 pm


AYES


Ainsworth, Peter (E Surrey)
Amess, David
Ancram, Rt Hon Michael
Arbuthnot, Rt Hon James
Atkinson, David (Bour'mth E)
Atkinson, Peter (Hexham)
Baldry, Tony
Beggs, Roy
Bell, Martin (Tatton)
Bercow, John
Beresford, Sir Paul
Blunt, Crispin
Body, Sir Richard
Boswell, Tim
Bottomley, Peter (Worthing W)
Bottomley, Rt Hon Mrs Virginia
Brazier, Julian
Brooke, Rt Hon Peter
Browning, Mrs Angela
Bruce, Ian (S Dorset)
Burns, Simon
Chapman, Sir Sydney
(Chipping Barnet)
Chope, Christopher
Clappison, James
Clarke, Rt Hon Kenneth
(Rushcliffe)
Collins, Tim
Colvin, Michael
Cran, James
Curry, Rt Hon David
Davies, Quentin (Grantham)
Davis, Rt Hon David (Haltemprice)
Day, Stephen
Donaldson, Jeffrey
Dorrell, Rt Hon Stephen
Duncan, Alan
Duncan Smith, Iain
Evans, Nigel
Faber, David
Fabricant, Michael
Fallon, Michael
Flight, Howard
Forsythe, Clifford
Forth, Rt Hon Eric
Fowler, Rt Hon Sir Norman
Fox, Dr Liam
Fraser, Christopher
Gale, Roger
Garnier, Edward
Gibb, Nick
Gillan, Mrs Cheryl
Gorman, Mrs Teresa
Gray, James
Green, Damian
Greenway, John
Grieve, Dominic
Gummer, Rt Hon John
Hague, Rt Hon William
Hamilton, Rt Hon Sir Archie
Hammond, Philip
Hawkins, Nick
Heathcoat-Amory, Rt Hon David
Hogg, Rt Hon Douglas
Horam, John
Howard, Rt Hon Michael
Hunter, Andrew
Jackson, Robert (Wantage)
Jenkin, Bernard
Johnson Smith,
Rt Hon Sir Geoffrey
Key, Robert
King, Rt Hon Tom (Bridgwater)
Kirkbride, Miss Julie
Lansley, Andrew
Leigh, Edward
Lewis, Dr Julian (New Forest E)
Lidington, David
Lilley, Rt Hon Peter
Lloyd, Rt Hon Sir Peter (Fareham)
Loughton, Tim
Luff, Peter
Lyell, Rt Hon Sir Nicholas
MacGregor, Rt Hon John
McIntosh, Miss Anne
MacKay, Rt Hon Andrew
Maclean, Rt Hon David
McLoughlin, Patrick
Malins, Humfrey
Maples, John
Maude, Rt Hon Francis
May, Mrs Theresa
Nicholls, Patrick
Norman, Archie
Ottaway, Richard
Page, Richard
Paice, James
Pickles, Eric
Randall, John
Redwood, Rt Hon John
Robathan, Andrew
Roe, Mrs Marion (Broxbourne)
St Aubyn, Nick
Sayeed, Jonathan
Shepherd, Richard
Simpson, Keith (Mid-Norfolk)
Soames, Nicholas
Spelman, Mrs Caroline
Spring, Richard
Stanley, Rt Hon Sir John
Steen, Anthony
Streeter, Gary
Swayne, Desmond
Syms, Robert
Tapsell, Sir Peter
Taylor, Ian (Esher & Walton)
Taylor, John M (Solihull)
Taylor, Sir Teddy
Townend, John
Tredinnick, David
Trend, Michael
Tyrie, Andrew
Viggers, Peter
Walter, Robert
Wardle, Charles
Waterson, Nigel
Wells, Bowen
Whitney, Sir Raymond
Whittingdale, John
Widdecombe, Rt Hon Miss Ann
Willetts, David
Wilshire, David
Winterton, Mrs Ann (Congleton)
Yeo, Tim
Young, Rt Hon Sir George

Tellers for the Ayes:


Mrs. Jacqui Lait and
Mr. Geoffrey Clifton-Brown.


NOES


Abbott, Ms Diane
Adams, Mrs Irene (Paisley N)
Ainger, Nick
Ainsworth, Robert (Cov'try NE)
Alexander, Douglas
Allan, Richard
Allen, Graham
Anderson, Janet (Rossendale)
Armstrong, Rt Hon Ms Hilary
Ashton, Joe
Atkins, Charlotte
Baker, Norman
Ballard, Jackie
Banks, Tony
Barron, Kevin
Battle, John
Bayley, Hugh
Beard, Nigel
Beckett, Rt Hon Mrs Margaret
Begg, Miss Anne
Beith, Rt Hon A J
Bell, Stuart (Middlesbrough)
Benn, Rt Hon Tony (Chesterfield)
Bennett, Andrew F
Benton, Joe
Best, Harold
Betts, Clive
Blackman, Liz
Blunkett, Rt Hon David
Boateng, Paul
Bradley, Keith (Withington)
Bradley, Peter (The Wrekin)
Brake, Tom
Brand, Dr Peter
Brinton, Mrs Helen
Brown, Russell (Dumfries)
Browne, Desmond
Bruce, Malcolm (Gordon)
Buck, Ms Karen
Burden, Richard
Burgon, Colin
Butler, Mrs Christine
Caborn, Rt Hon Richard
Campbell, Alan (Tynemouth)
Campbell, Mrs Anne (C'bridge)
Campbell, Ronnie (Blyth V)
Campbell-Savours, Dale
Cann, Jamie
Caplin, Ivor
Casale, Roger
Caton, Martin
Chapman, Ben (Wirral S)
Chaytor, David
Chidgey, David
Chisholm, Malcolm
Clapham, Michael
Clark, Rt Hon Dr David (S Shields)
Clarke, Charles (Norwich S)
Clarke, Rt Hon Tom (Coatbridge)
Clarke, Tony (Northampton S)
Clelland, David
Clwyd, Ann
Coffey, Ms Ann
Cohen, Harry
Coleman, Iain
Colman, Tony
Connarty, Michael
Cook, Frank (Stockton N)
Corbett, Robin
Corbyn, Jeremy
Cousins, Jim
Cox, Tom
Cranston, Ross
Cryer, Mrs Ann (Keighley)
Cryer, John (Hornchurch)
Cummings, John
Cunliffe, Lawrence
Cunningham, Jim (Cov'try S)
Dalyell, Tam
Darling, Rt Hon Alistair
Darvill, Keith
Davey, Edward (Kingston)
Davey, Valerie (Bristol W)
Davidson, Ian
Davies, Rt Hon Denzil (Llanelli)
Davies, Geraint (Croydon C)
Davis, Terry (B'ham Hodge H)
Dean, Mrs Janet
Dismore, Andrew
Donohoe, Brian H
Doran, Frank
Dowd, Jim
Drew, David
Drown, Ms Julia
Dunwoody, Mrs Gwyneth
Eagle, Angela (Wallasey)
Eagle, Maria (L'pool Garston)
Edwards, Huw
Efford, Clive
Ellman, Mrs Louise
Ennis, Jeff
Etherington, Bill
Fearn, Ronnie
Field, Rt Hon Frank
Fisher, Mark
Fitzpatrick, Jim
Fitzsimons, Lorna
Flint, Caroline
Flynn, Paul
Follett, Barbara
Foster, Rt Hon Derek
Foster, Don (Bath)
Foster, Michael Jabez (Hastings)
Foster, Michael J (Worcester)
Foulkes, George
Fyfe, Maria
Galloway, George
Gapes, Mike
Gardiner, Barry
George, Andrew (St Ives)
George, Bruce (Walsall S)
Gerrard, Neil
Gibson, Dr Ian
Gilroy, Mrs Linda
Godsiff, Roger
Golding, Mrs Llin
Gordon, Mrs Eileen
Gorrie, Donald
Griffiths, Jane (Reading E)
Griffiths, Nigel (Edinburgh S)
Griffiths, Win (Bridgend)
Grocott, Bruce
Grogan, John
Gunnell, John
Hain, Peter
Hall, Mike (Weaver Vale)
Hall, Patrick (Bedford)
Hamilton, Fabian (Leeds NE)
Hancock, Mike
Harman, Rt Hon Ms Harriet
Harris, Dr Evan
Harvey, Nick
Heal, Mrs Sylvia
Healey, John
Henderson, Doug (Newcastle N)
Heppell, John
Hesford, Stephen
Hill, Keith
Hinchliffe, David
Hodge, Ms Margaret
Hoey, Kate
Hood, Jimmy
Hopkins, Kelvin
Howarth, George (Knowsley N)
Howells, Dr Kim
Hoyle, Lindsay
Hughes, Kevin (Doncaster N)
Hughes, Simon (Southwark N)
Hutton, John
Iddon, Dr Brian
Illsley, Eric
Jackson, Ms Glenda (Hampstead)
Jackson, Helen (Hillsborough)
Jenkins, Brian
Johnson, Miss Melanie
(Welwyn Hatfield)
Jones, Rt Hon Barry (Alyn)
Jones, Mrs Fiona (Newark)
Jones, Helen (Warrington N)
Jones, Ms Jenny
(Wolverh'ton SW)
Jones, Jon Owen (Cardiff C)
Jones, Dr Lynne (Selly Oak)
Jones, Martyn (Clwyd S)
Jowell, Rt Hon Ms Tessa
Keeble, Ms Sally
Keen, Alan (Feltham & Heston)
Keen, Ann (Brentford & Isleworth)
Keetch, Paul
Kemp, Fraser
Khabra, Piara S
Kidney, David
Kilfoyle, Peter
King, Ms Oona (Bethnal Green)
Kirkwood, Archy
Ladyman, Dr Stephen
Lawrence, Ms Jackie
Laxton, Bob
Lepper, David
Leslie, Christopher
Levitt, Tom
Lewis, Terry (Worsley)
Linton, Martin
Lock, David
McAllion, John
McAvoy, Thomas
McCabe, Steve
McCafferty, Ms Chris
McDonagh, Siobhain
Macdonald, Calum
McDonnell, John
McGuire, Mrs Anne
McIsaac, Shona
McKenna, Mrs Rosemary
Mackinlay, Andrew
McNamara, Kevin
McNulty, Tony
MacShane, Denis
Mactaggart, Fiona
McWalter, Tony
McWilliam, John
Mahon, Mrs Alice
Mallaber, Judy
Mandelson, Rt Hon Peter
Marsden, Gordon (Blackpool S)
Marshall, David (Shettleston)
Marshall, Jim (Leicester S)
Marshall-Andrews, Robert
Martlew, Eric
Meale, Alan
Merron, Gillian
Michie, Bill (Shef'ld Heeley)
Michie, Mrs Ray (Argyll & Bute)
Milburn, Rt Hon Alan
Mitchell, Austin
Moffatt, Laura
Moore, Michael
Moran, Ms Margaret
Morgan, Ms Julie (Cardiff N)
Morley, Elliot
Morris, Ms Estelle (B'ham Yardley)
Mudie, George
Mullin, Chris
Murphy, Denis (Wansbeck)
Murphy, Jim (Eastwood)
Murphy, Rt Hon Paul (Torfaen)
Naysmith, Dr Doug
Norris, Dan
Oaten, Mark
O'Brien, Bill (Normanton)
O'Brien, Mike (N Warks)
O'Hara, Eddie
Olner, Bill
Öpik, Lembit
Osborne, Ms Sandra
Palmer, Dr Nick
Pearson, Ian
Pendry, Tom
Pickthall, Colin
Pike, Peter L
Plaskitt, James
Pollard, Kerry
Pond, Chris
Pope, Greg
Pound, Stephen
Powell, Sir Raymond
Prentice, Ms Bridget (Lewisham E)
Prentice, Gordon (Pendle)
Prescott, Rt Hon John
Primarolo, Dawn
Prosser, Gwyn
Purchase, Ken
Quin, Rt Hon Ms Joyce
Rapson, Syd
Raynsford, Nick
Reid, Rt Hon Dr John (Hamilton N)
Rendel, David
Robertson, Rt Hon George
(Hamilton S)
Robinson, Geoffrey (Cov'try NW)
Roche, Mrs Barbara
Rooker, Jeff
Rooney, Terry
Rowlands, Ted
Roy, Frank
Ruane, Chris
Ruddock, Joan
Russell, Bob (Colchester)
Salter, Martin
Sanders, Adrian
Sarwar, Mohammad
Savidge, Malcolm
Sawford, Phil
Sedgemore, Brian
Sheerman, Barry
Sheldon, Rt Hon Robert
Shipley, Ms Debra
Simpson, Alan (Nottingham S)
Singh, Marsha
Skinner, Dennis
Smith, Rt Hon Andrew (Oxford E)
Smith, Jacqui (Redditch)
Smith, John (Glamorgan)
Smith, Llew (Blaenau Gwent)
Smith, Sir Robert (W Ab'd'ns)
Snape, Peter
Soley, Clive
Spellar, John
Squire, Ms Rachel
Starkey, Dr Phyllis
Steinberg, Gerry
Stevenson, George
Stewart, David (Inverness E)
Stewart, Ian (Eccles)
Stinchcombe, Paul
Stoate, Dr Howard
Stott, Roger
Strang, Rt Hon Dr Gavin
Stringer, Graham
Stuart, Ms Gisela
Stunell, Andrew
Sutcliffe, Gerry
Taylor, Rt Hon Mrs Ann
(Dewsbury)
Taylor, Ms Dari (Stockton S)
Taylor, David (NW Leics)
Temple-Morris, Peter
Thomas, Gareth (Clwyd W)
Thomas, Gareth R (Harrow W)
Timms, Stephen
Tipping, Paddy
Tonge, Dr Jenny
Touhig, Don
Trickett, Jon
Turner, Dennis (Wolverh'ton SE)
Turner, Dr Desmond (Kemptown)
Turner, Dr George (NW Norfolk)
Twigg, Stephen (Enfield)
Tyler, Paul
Vaz, Keith
Vis, Dr Rudi
Walley, Ms Joan
Ward, Ms Claire
Wareing, Robert N
Webb, Steve
White, Brian
Whitehead, Dr Alan
Wicks, Malcolm
Williams, Rt Hon Alan
(Swansea W)
Williams, Alan W (E Carmarthen)
Willis, Phil
Wills, Michael
Wilson, Brian
Winnick, David
Wise, Audrey
Worthington, Tony
Wray, James
Wright, Anthony D (Gt Yarmouth)
Wright, Dr Tony (Cannock)
Wyatt, Derek

Tellers for the Noes:


Mr. David Hanson and
Jane Kennedy.

Question accordingly negatived.

20 Jul 1999 : Column 1078

Question, That the proposed words be there added, put forthwith, pursuant to Standing Order No. 31 (Questions on amendments):--

The House divided: Ayes 311, Noes 162.

20 Jul 1999 : Column 1079


Next Section

IndexHome Page