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22 Oct 2002 : Column 236—continued
Mr. Lansley: I want to avoid confusion. Liberal Democrats assert that British Energy is producing electricity at 20 per cent. above the market price. If past liabilities are not taken into account, is not the marginal
cost of production for British Energy's nuclear fleet about 1.8p per kilowatt hour—only slightly above the prevailing market price?
Mr. Wilson: The hon. Gentleman makes his own point, which is a perfectly reasonable one.
What is undoubtedly true is that even given the slight swing that has occurred because of the market difficulties with electricity, the wholesale price has risen to a point at which British Energy is presumably operating profitably. I agree with much of what has been said on both sides: decisions that are fundamental to security of supply, and the economic interests of the country cannot be left entirely to the vagaries of a marketplace that can produce such a swing. [Hon. Members: XYour marketplace."] That sounds like an allegation, but my hon. Friend the Member for Coventry, North-West (Mr. Robinson) has been entirely open. He gave a frank and analytical explanation of why the changes were made. They were made for good reasons, and they have produced many benefits. What we must recognise, however, is that they have not been an unqualified good; they have had other effects, which we must now examine in the spirit of wanting not only a competitive market but of wanting to be sure that the objective of that market—driving down the price of electricity—is not achieved at the cost of security of supply or our environmental obligations. That strikes me as a straightforward proposition, but a complex one to deliver in practice, especially in a liberalised market.
Malcolm Bruce: This is a serious point, which is at the heart of the debate. If the market is not the whole answer and there is a strategy, should not the Government make clear which kind of energy they wish to encourage, how they will react to changes in the market, and what their long-term policy is? Without that clarity, we do not know what they are doing. Are they just manipulating the market according to their whim? That is what they have been accused of doing. The Minister really must make their position clear.
Mr. Wilson: We are manipulating the market in one sense, through the support we are giving to renewables. Are the Liberal Democrats criticising us for manipulating the market in favour of renewables?
I believe that the #650 million loan to British Energy—I emphasise that it is a loan, and that it is capped—makes sense for the energy industry. Let me say in passing that it also makes sense for the people who work for British Energy. I believe it makes sense for security of supply, but I believe too that it makes sense for the taxpayer. The daftest option, from the taxpayer's point of view, would be to switch off electricity generation by British Energy, surrender the revenue, and at the same time pick up all the costs that would be associated with such action. That, it appears to me, is the sequence of actions that the Liberal Democrats and their associates are recommending, and it is bonkers.
Mr. Paul Marsden (Shrewsbury and Atcham): Is it not shameful that a Labour Minister should defend the nuclear energy industry when he knows as well as I do
that it should not be propped up by the Government? We should be giving far more support to the renewable energy industry. The Minister should be ashamed.
Mr. Wilson: The hon. Gentleman's comments reflect the fact that he arrived in the Chamber two minutes ago. Tell them that in Shrewsbury.
Let me say something about NETA—
Sir Robert Smith (West Aberdeenshire and Kincardine) 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 54, Noes 313.
AYES
Allan, Richard
Baker, Norman
Baron, John (Billericay)
Breed, Colin
Bruce, Malcolm
Burnett, John
Burstow, Paul
Cable, Dr. Vincent
Calton, Mrs Patsy
Campbell, rh Menzies (NE Fife)
Carmichael, Alistair
Chidgey, David
Cotter, Brian
Davey, Edward (Kingston)
Doughty, Sue
Ewing, Annabelle
Foster, Don (Bath)
George, Andrew (St. Ives)
Gidley, Sandra
Green, Matthew (Ludlow)
Hancock, Mike
Harris, Dr. Evan (Oxford W & Abingdon)
Heath, David
Holmes, Paul
Hughes, Simon (Southwark N)
Keetch, Paul
Kennedy, rh Charles (Ross Skye & Inverness)
Kirkwood, Archy
Lamb, Norman
Laws, David (Yeovil)
Llwyd, Elfyn
Marsden, Paul (Shrewsbury & Atcham)
Moore, Michael
Öpik, Lembit
Price, Adam (E Carmarthen & Dinefwr)
Pugh, Dr. John
Reid, Alan (Argyll & Bute)
Rendel, David
Robertson, Angus (Moray)
Russell, Bob (Colchester)
Salmond, Alex
Sanders, Adrian
Taylor, Matthew (Truro & St. Austell)
Taylor, Dr. Richard (Wyre F)
Thomas, Simon (Ceredigion)
Thurso, John
Tonge, Dr. Jenny
Tyler, Paul
Webb, Steve
Weir, Michael
Williams, Hywel (Caernarfon)
Williams, Roger (Brecon & Radnor)
Wishart, Pete
Younger-Ross, Richard
Tellers for the Ayes:
Sir Robert Smith and
Mr. Andrew Stunell
NOES
Ainger, Nick
Allen, Graham
Anderson, rh Donald (Swansea E)
Anderson, Janet (Rossendale & Darwen)
Armstrong, rh Ms Hilary
Atherton, Ms Candy
Atkins, Charlotte
Austin, John
Banks, Tony
Barnes, Harry
Battle, John
Bayley, Hugh
Beard, Nigel
Beckett, rh Margaret
Begg, Miss Anne
Beggs, Roy (E Antrim)
Benn, Hilary
Bennett, Andrew
Benton, Joe (Bootle)
Berry, Roger
Best, Harold
Betts, Clive
Blears, Ms Hazel
Borrow, David
Bradley, rh Keith (Withington)
Bradley, Peter (The Wrekin)
Bradshaw, Ben
Brennan, Kevin
Brown, rh Nicholas (Newcastle E Wallsend)
Brown, Russell (Dumfries)
Browne, Desmond
Bryant, Chris
Buck, Ms Karen
Burgon, Colin
Burnham, Andy
Burnside, David
Cairns, David
Campbell, Alan (Tynemouth)
Campbell, Mrs Anne (C'bridge)
Caplin, Ivor
Caton, Martin
Cawsey, Ian (Brigg)
Challen, Colin
Chapman, Ben (Wirral S)
Clark, Mrs Helen (Peterborough)
Clark, hon. Dr. Lynda (Edinburgh Pentlands)
Clark, Paul (Gillingham)
Clarke, rh Charles (Norwich S)
Clarke, rh Tom (Coatbridge & Chryston)
Clarke, Tony (Northampton S)
Clelland, David
Coaker, Vernon
Coffey, Ms Ann
Cohen, Harry
Colman, Tony
Connarty, Michael
Cook, Frank (Stockton N)
Corbyn, Jeremy
Corston, Jean
Cousins, Jim
Cranston, hon. Ross
Crausby, David
Cryer, Mrs Ann (Keighley)
Cummings, John
Cunningham, rh Dr. Jack (Copeland)
Cunningham, Jim (Coventry S)
Cunningham, Tony (Workington)
Curtis-Thomas, Mrs Claire
Dalyell, Tam
Davey, Valerie (Bristol W)
David, Wayne
Davidson, Ian
Davies, rh Denzil (Llanelli)
Dawson, Hilton
Dean, Mrs Janet
Denham, rh John
Dhanda, Parmjit
Dismore, Andrew
Dobbin, Jim (Heywood)
Dobson, rh Frank
Donaldson, Jeffrey M.
Donohoe, Brian H.
Doran, Frank
Dowd, Jim (Lewisham W)
Drew, David (Stroud)
Drown, Ms Julia
Eagle, Maria (L'pool Garston)
Edwards, Huw
Efford, Clive
Ellman, Mrs Louise
Ennis, Jeff (Barnsley E)
Etherington, Bill
Farrelly, Paul
Field, rh Frank (Birkenhead)
Field, Mark (Cities of London & Westminster)
Flint, Caroline
Flynn, Paul (Newport W)
Follett, Barbara
Foster, Michael (Worcester)
Gardiner, Barry
Gerrard, Neil
Gibson, Dr. Ian
Gilroy, Linda
Godsiff, Roger
Goggins, Paul
Griffiths, Jane (Reading E)
Griffiths, Nigel (Edinburgh S)
Griffiths, Win (Bridgend)
Grogan, John
Hain, rh Peter
Hall, Mike (Weaver Vale)
Hall, Patrick (Bedford)
Hamilton, Fabian (Leeds NE)
Hanson, David
Harris, Tom (Glasgow Cathcart)
Havard, Dai (Merthyr Tydfil & Rhymney)
Healey, John
Henderson, Ivan (Harwich)
Hendrick, Mark
Hepburn, Stephen
Hermon, Lady
Hesford, Stephen
Heyes, David
Hill, Keith (Streatham)
Hinchliffe, David
Hodge, Margaret
Hoey, Kate (Vauxhall)
Hood, Jimmy (Clydesdale)
Hoon, rh Geoffrey
Hope, Phil (Corby)
Hopkins, Kelvin
Howarth, George (Knowsley N & Sefton E)
Howells, Dr. Kim
Hoyle, Lindsay
Hughes, Beverley (Stretford & Urmston)
Hughes, Kevin (Doncaster N)
Humble, Mrs Joan
Hurst, Alan (Braintree)
Hutton, rh John
Iddon, Dr. Brian
Illsley, Eric
Ingram, rh Adam
Irranca-Davies, Huw
Jamieson, David
Jenkins, Brian
Jones, Helen (Warrington N)
Jones, Jon Owen (Cardiff C)
Jones, Kevan (N Durham)
Jones, Lynne (Selly Oak)
Jones, Martyn (Clwyd S)
Joyce, Eric (Falkirk W)
Keeble, Ms Sally
Keen, Alan (Feltham)
Keen, Ann (Brentford)
Kemp, Fraser
Khabra, Piara S.
Kidney, David
King, Andy (Rugby)
King, Ms Oona (Bethnal Green & Bow)
Knight, Jim (S Dorset)
Ladyman, Dr. Stephen
Laxton, Bob (Derby N)
Lazarowicz, Mark
Lepper, David
Levitt, Tom (High Peak)
Lewis, Ivan (Bury S)
Linton, Martin
Lloyd, Tony (Manchester C)
Love, Andrew
Lucas, Ian (Wrexham)
Luke, Iain (Dundee E)
Lyons, John (Strathkelvin)
McAvoy, Thomas
McCafferty, Chris
McDonagh, Siobhain
MacDonald, Calum
McDonnell, John
MacDougall, John
McFall, John
McGuire, Mrs Anne
McIsaac, Shona
McKechin, Ann
Mackinlay, Andrew
McNamara, Kevin
McNulty, Tony
Mactaggart, Fiona
McWalter, Tony
McWilliam, John
Mahmood, Khalid
Mahon, Mrs Alice
Mallaber, Judy
Mandelson, rh Peter
Mann, John (Bassetlaw)
Marris, Rob (Wolverh'ton SW)
Marsden, Gordon (Blackpool S)
Marshall, David (Glasgow Shettleston)
Marshall, Jim (Leicester S)
Martlew, Eric
Meacher, rh Michael
Merron, Gillian
Michael, rh Alun
Miliband, David
Miller, Andrew
Mitchell, Austin (Gt Grimsby)
Moffatt, Laura
Mole, Chris
Moonie, Dr. Lewis
Moran, Margaret
Morgan, Julie
Morley, Elliot
Mountford, Kali
Mudie, George
Mullin, Chris
Munn, Ms Meg
Naysmith, Dr. Doug
Norris, Dan (Wansdyke)
O'Brien, Bill (Normanton)
O'Hara, Edward
Organ, Diana
Osborne, Sandra (Ayr)
Owen, Albert
Palmer, Dr. Nick
Pearson, Ian
Perham, Linda
Picking, Anne
Pickthall, Colin
Pike, Peter (Burnley)
Plaskitt, James
Pollard, Kerry
Pond, Chris (Gravesham)
Pope, Greg (Hyndburn)
Pound, Stephen
Prentice, Ms Bridget (Lewisham E)
Prentice, Gordon (Pendle)
Prescott, rh John
Prosser, Gwyn
Purchase, Ken
Quinn, Lawrie
Rammell, Bill
Rapson, Syd (Portsmouth N)
Raynsford, rh Nick
Reed, Andy (Loughborough)
Robertson, John (Glasgow Anniesland)
Robinson, Geoffrey (Coventry NW)
Robinson, Mrs Iris (Strangford)
Roche, Mrs Barbara
Rooney, Terry
Ruane, Chris
Russell, Ms Christine (Chester)
Ryan, Joan
Salter, Martin
Sarwar, Mohammad
Sawford, Phil
Sedgemore, Brian
Shaw, Jonathan
Sheerman, Barry
Sheridan, Jim
Simpson, Alan (Nottingham S)
Singh, Marsha
Skinner, Dennis
Smith, rh Andrew (Oxford E)
Smith, rh Chris (Islington S & Finsbury)
Smith, Geraldine (Morecambe & Lunesdale)
Smith, Jacqui (Redditch)
Smith, Llew (Blaenau Gwent)
Smyth, Rev. Martin
Soley, Clive
Southworth, Helen
Spellar, rh John
Squire, Rachel
Starkey, Dr. Phyllis
Steinberg, Gerry
Stevenson, George
Stewart, David (Inverness E & Lochaber)
Stewart, Ian (Eccles)
Stinchcombe, Paul
Stringer, Graham
Sutcliffe, Gerry
Tami, Mark
Taylor, Ms Dari (Stockton S)
Taylor, David (NW Leics)
Thomas, Gareth (Clwyd W)
Thomas, Gareth (Harrow W)
Tipping, Paddy
Todd, Mark
Trickett, Jon
Truswell, Paul
Turner, Dennis (Wolverh'ton SE)
Turner, Dr. Desmond (Kemptown)
Turner, Neil (Wigan)
Twigg, Stephen (Enfield)
Tynan, Bill
Vis, Dr. Rudi
Walley, Ms Joan
Ward, Claire
Wareing, Robert N.
Watson, Tom
Watts, David
White, Brian
Whitehead, Dr. Alan
Wicks, Malcolm
Williams, rh Alan (Swansea W)
Williams, Mrs Betty (Conwy)
Wilson, Brian
Winnick, David
Winterton, Ms Rosie (Doncaster C)
Wood, Mike
Woolas, Phil
Worthington, Tony
Wray, James
Wright, Anthony D. (Gt Yarmouth)
Wright, David (Telford)
Wright, Tony (Cannock)
Tellers for the Noes:
Mr. John Heppell and
Mr. Jim Murphy
Question accordingly negatived.
Question, That the proposed words be there added, put forthwith, pursuant to Order [17 October] and Standing Order No. 31 (Questions on amendments):—
The House divided: Ayes 293, Noes 52.
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