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Car Manufacturing Industry
11. Mr. Michael Fabricant (Lichfield): If he will make a statement on car manufacturing in England. [124594]
The Secretary of State for Trade and Industry (Mr. Stephen Byers): In 1999, we saw the highest total number of cars produced in the United Kingdom since 1972. Although we recognise that in a dynamic economy there will be changes in the sector, we are confident that it will remain a major employer.
Mr. Fabricant: We all welcome the initiative to introduce cheaper cars, but does the Secretary of State realise that by announcing the initiative without saying when or how the aim will be achieved, he has caused a real problem for manufacturers and distributors, as John Towers of the Phoenix group said only yesterday?
Will the right hon. Gentleman admit, in a moment of honesty, that perhaps he made the announcement a little too soon? There is a hiatus in the sale of cars, which is causing problems both for distributors and suppliers. When will the Government learn the lesson that they should think first of the consequences before announcing new initiatives merely for the sake of political spin?
Mr. Byers: It was the hon. Member for Tiverton and Honiton (Mrs. Browning), who speaks for the Opposition, who urged me to respond quickly to the Competition Commission's report. She is now complaining that that was six months ago, and that I delayed too long. That is the reality; Opposition Members need to get some consistency in their arguments.
I responded to the commission's report. On Monday I put out an order for consultation, and the industry has 30 days to comment on it. We shall then reflect on the matter and make a decision accordingly. How long the process will be, and when implementation will take place, will be decided in the light of the consultation process. That is exactly how it should be done.
We are not prepared to tolerate a situation in which the consumer in the United Kingdom, as the report showed, is paying on average £1,100 too much for each car purchased. The Conservative party in government did nothing about that, but we will.
Electricity Trading Arrangements
12. Mr. Michael Clapham (Barnsley, West and Penistone): What progress has been made with the new electricity trading arrangements. [124596]
The Minister for Energy and Competitiveness in Europe (Mrs. Helen Liddell): The new electricity trading arrangements are on target for implementation in the autumn.
Mr. Clapham: I am grateful to my right hon. Friend for that answer. Does she agree that the pool system, as introduced when electricity was privatised by the Tories, worked artificially to increase the price of electricity because of the marginal pricing system that was part of the pool? That was bad for industry, bad for the consumer generally and bad for British competitiveness. Does she further agree that the new electricity trading arrangements should bring beneficial reductions in electricity prices that should help in exporting electricity to continental Europe, which should help the British deep coal mining industry?
Mrs. Liddell: My hon. Friend is absolutely right. There is no question but that the electricity pool has distorted the market, especially to the disadvantage of flexible plant such as coal. The move towards the introduction of new electricity trading arrangements has shown that from a 1998 baseline there is a 25 to 30 per cent. real-terms cost reduction in electricity forward agreements. That is to the advantage of the consumer. Privatisation was bungled by the Conservative Government, and the consumer has paid the price. This Government will set things right.
Mr. Simon Thomas (Ceredigion): Does the Minister agree that the introduction of net metering would give a tremendous boost to renewables, especially in the domestic sector? When will the Government think again about such metering within the electricity arrangements?
Mrs. Liddell: The hon. Gentleman is aware of the action that the Government are taking to support the renewables industry. We have put in place a 10 per cent. obligation for electricity suppliers to take their energy from renewable sources, so as to move renewables from the margin into the mainstream. That is how the future will be.
The Utilities Bill, which is now in another place, is neutral on net metering. It may be that in future there will be an opportunity for such metering, both domestically and otherwise. The Department has brought together the embedded generation working group, which is considering the various aspects of embedded generation and renewables, including the difficulties of storing energy for access to the grid. Those matters are live for the Government. We are anxious to support the renewables industry because there is an opportunity for considerable competitive advantage for the United Kingdom.
Mr. Chris Pond (Gravesham): The Minister will be aware that trading in electricity is not the primary purpose of the Kimberley Clarke proposal for a combined heat and power plant in Northfleet in my constituency, but that it will considerably increase the productivity and efficiency
of that plant. It will underline the considerable investment there, and perhaps help to secure its future. Will the Minister say when we shall hear the result of the company's request for approval of that investment?
Mrs. Liddell: My hon. Friend has been active in pursuing that application. He will be aware that, because
of the quasi-judicial position of my right hon. Friend the Secretary of State and myself, I cannot give him an answer, other than to say that the Government have done much to support combined heat and power, not only through the restricted gas consents policy, but through the climate change levy.Business of the House
12.30 pm
Sir George Young (North-West Hampshire): Will the Leader of the House give us the business for next week?
The President of the Council and Leader of the House of Commons (Mrs. Margaret Beckett): The business for next week will be as follows:
Monday 19 June--Debate on the royal commission report on the reform of the House of Lords on a motion for the Adjournment of the House.
Tuesday 20 June--Opposition day [14th Allotted Day]. Until about 7 o'clock there will be a debate on "US/UK Air Negotiations" followed by a debate entitled "The Government's Policy on Planning, House Building, Development of Greenfields and the Decline of the Cities". Both debates will arise on Opposition motions.
Second Reading of the Census (Amendment) Bill [Lords].
Wednesday 21 June--Second Reading of the Children (Leaving Care) Bill [Lords].
Thursday 22 June--Debate on the Security and Intelligence Agencies on a motion for the Adjournment of the House.
Friday 23 June--Debate on policing of London on a motion for the Adjournment of the House.
The provisional business for the following week will be:
Monday 26 June--Remaining stages of the Race Relations(Amendment) Bill [Lords].
Tuesday 27 June--Remaining stages of the Learning and Skills Bill [Lords].
Wednesday 28 June--Remaining stages of the Limited Liability Partnership Bill [Lords].
Remaining stages of the Fur Farming (Prohibition) Bill.
Thursday 29 June--Opposition Day [15th Allotted Day]. There will be a debate on an Opposition motion. Subject to be announced.
Friday 30 June--The House will not be sitting.
Sir George Young: The House is grateful for next week's business and an indication of the business for the following week.
When does the right hon. Lady expect the Prime Minister to make a statement to the House on the outcome of the European Council in Portugal?
I see that, on Tuesday, in Government time, the House is to debate a private Member's Bill--the Census (Amendment) Bill. If the Government are now finding time for private Members' Bills that are objected to on Fridays, when might we debate the Warm Homes and Energy Conservation Bill?
Will the Leader of the House find time to debate the Neill committee report "Reinforcing Standards", given the growing concern about the politicisation of the civil service, and the Government's failure to respond to the report's recommendations?
Following the appearance by the Secretary of State for Health on the "Today" programme, will time be found next week for a statement by the right hon. Gentleman on
the Government's welcome change of policy towards the independent sector of medicine? The need for such a statement is reinforced by a parliamentary answer that revealed that expenditure by the national health service on that sector has risen by almost 50 per cent. since the general election.There is mounting interest in the comprehensive spending review. When does the Chancellor hope to make a statement on the outcome? In addition, can we resolve soon the issue of the pattern of economic debates throughout the year?
Finally, last week I asked about the date of the summer recess, so that our staff and the staff of the House can plan their lives. I incurred the usual heckle from the hon. Member for Bolsover (Mr. Skinner), but did not receive the consolation of a reply from the right hon. Lady. Can she shed any light on the subject today?
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