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Business Support

Mr. Jim Cunningham: To ask the Secretary of State for Trade and Industry how the (a) high technology venture capital fund and (b) incubator workspace loan fund will assist business. [10164]

Nigel Griffiths [holding answer 29 October 2001]: The information is as follows:

(a) The £126 million UK High Technology Fund, managed by Westport Private Equity, has been established to increase the amount of finance available for investment in technology based businesses. The fund was established on a 'Fund of Funds' basis, and invests in those venture capital funds that are specialist in investing in early-stage, technology-focused

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companies. Investments in sectors and businesses being supported by the fund include software, pharmaceuticals, communications, internet technologies and biosciences.

(b) Loans from the SBS Business Incubation Fund are available to meet shortfalls in finance for incubation projects. Increasing the availability of incubation and its supportive nurturing environment will help improve the chances of survival and growth of business start-ups and early stage SMEs.

Age Discrimination

Mr. Jim Cunningham: To ask the Secretary of State for Trade and Industry what plans she has to introduce legislation to combat age discrimination; if she will outlaw mandatory retirement ages; and what powers the authorities will be granted to enforce such legislation. [10112]

Alan Johnson: We shall introduce legislation to combat age discrimination in employment and training by the 2006 deadline set out in the EC's Employment Directive. That will give us the necessary time to resolve the complexities surrounding this issue, and to decide the right approach to retirement ages in the light of extensive consultation with employers, individuals, and expert groups on age good practice. We shall be issuing proposals for a first round of public consultation within the next three months. This will cover issues which are common to discrimination on grounds of age, sexual orientation, religion, disability and race, including enforcement.

Climate Change Levy

Mr. Hammond: To ask the Secretary of State for Trade and Industry if she will make a statement on the impact of the climate change levy on British industry. [10990]

Mr. Wilson: The climate change levy only became operational in April this year and the first payments are still being received by Customs and Excise. It is too early to assess its impact, but the levy is operating in the planned revenue neutral manner.

The impact on any specific sector will depend on a number of factors including;

The future energy consumption of firms in the sector and the use they make of levy funded energy efficiency support.

Employment levels in those sectors and the benefits received from the levy funded reduction of national insurance contributions.

The number of energy intensive firms in that sector that are eligible to receive a discount on the main rates of the levy by signing up to an energy efficiency agreement.

What use firms in that sector make of electricity generated from levy exempt 'new' renewable sources of energy and combined heat and power.

Mr. Key: To ask the Secretary of State for Trade and Industry what recent representations she has received from industry about the effects of the climate change levy. [10639]

Mr. Wilson: The Department has received many representations from businesses about the climate change levy, raising concerns about its impact on businesses' costs and competitiveness and arguing for amendments to its design. The levy has been introduced in line with the Government's Statement of Intent on environmental

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taxation to contribute towards the UK's commitments to reduce emissions of greenhouse gases, while protecting business competitiveness. HM Treasury has made it clear that the levy will be kept under review, as with any other new tax measure. The Government are keeping in touch with business on the levy to monitor initial experience with its operation.

Mr. Key: To ask the Secretary of State for Trade and Industry what recent representations she has received about the climate change levy from the engineering sector. [10641]

Mr. Wilson: The Department has received representations from the Engineering Employers Federation and others in the sector about the climate change levy, raising concerns about its impact on businesses' costs and competitiveness and arguing for amendments to its design. The levy has been introduced in line with the Government's Statement of Intent on environmental taxation to contribute towards the UK's commitments to reduce emissions of greenhouse gases, while protecting business competitiveness. HM Treasury has made it clear that the levy will be kept under review, as with any other new tax measure. The Government are keeping in touch with business on the levy to monitor initial experience with its operation.

Renewable Energy

Mr. Key: To ask the Secretary of State for Trade and Industry (1) what representations she has received from the Association of Electricity Producers concerning energy from waste in the renewables obligation; [10661]

(2) what representations she has received from the Renewable Power Association on waste in the renewables obligation. [10695]

Mr. Wilson: We published our Statutory Consultation on the renewables obligation in August this year. The consultation period has just ended and we are now analysing the responses received. Over 150 responses were received, including one from each of the Association of Electricity Producers and the Renewable Power Association.

Both responses can be viewed on our website at www.dti.gov.uk/renewable/consultationresponses.htm (see responses 150 and 57 respectively).

Mr. Key: To ask the Secretary of State for Trade and Industry when she expects gasification and pyrolysis plants to be ready to operate commercially using mixed waste as a fuel. [10660]

Mr. Wilson: There are a number of pilot plants using pyrolysis and gasification which may advance to commercial scale operations in due course. There are also commercial operators in other countries who are interested in developing pyrolysis and gasification projects in this country. This was one of the subjects discussed on my recent visit with relevant officials to Japan.

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We propose to include pyrolysis and gasification in the Renewables Obligation to provide an incentive for the development of these technologies to help us meet our target for 2010.

Paddy Tipping: To ask the Secretary of State for Trade and Industry when she expects gasification and pyrolysis plants, as specified in the draft Renewables Obligation Order, to be ready to operate commercially using mixed waste as fuel. [10900]

Mr. Wilson [holding answer 29 October 2001]: There are a number of pilot plants using pyrolysis and gasification which may advance to commercial scale operations in due course. There are also commercial operators in other countries who are interested in developing pyrolysis and gasification projects in this country. This was one of the subjects discussed on my recent visit with relevant officials to Japan.

We propose to include pyrolysis and gasification in the Renewables Obligation to provide an incentive for the development of these technologies to help us meet our target for 2010.

Gas Imports

Mr. Key: To ask the Secretary of State for Trade and Industry by what date she expects Norway will be unable to meet further UK demand for gas; and if she will make a statement. [9052]

Mr. Wilson: Demand for gas is dependent on a number of factors, including energy prices, GDP growth and the impact of other measures such as the Climate Change Programme. Future demand levels are therefore uncertain and, consequently, the extent to which the UK will need to import gas from Norway or elsewhere cannot be accurately predicted. Against that background, current best estimates are that the UK is likely to become a net importer from around 2005–06 with the possibility of 90 per cent. of the UK's gas being imported by 2020.

Figures from the Norwegian Petroleum Directorate show that Norway has about 2,100bcm of remaining discovered gas resources in the North Sea and expects to be able to produce at least 90bcm of gas a year until 2050. The extent to which those resources might be available to meet further UK demand will depend on a number of variable factors, including movements in gas and oil prices, which may affect the anticipated level of production; any growth in Norway's domestic demand for gas; competition for Norway's gas from other purchasers in Europe and elsewhere; and the availability of capacity in infrastructure linking Norwegian supplies to the UK. Although there will be a point at which Norwegian gas will be unable to meet further UK demand, it is difficult to give a meaningful estimate of when that might be.

I am, however, fully aware of the need to secure longer term security of supply from a range of sources and this is one of the issues under consideration as part of the Performance and Innovation Unit's current review of energy policy.

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