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TRADE AND INDUSTRY

Animal Research

Bob Spink: To ask the Secretary of State for Trade and Industry how many researchers funded by (a) the
 
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Medical Research Council and (b) the Biotechnology and Biological Services Research Councils grants travelled abroad to conduct research on animals in each of the last five years; and if she will make a statement. [181069]

Ms Hewitt: Neither MRC nor BBSRC has a central record of how many grant-holders travel abroad to conduct research on animals and it would be cost-prohibitive to gather it. Both Councils have a policy that they will not provide funding for animal research overseas if it appears that it is being proposed in order to reduce costs or to bypass the high standards set in the UK.

Auction Houses

Mr. Swire: To ask the Secretary of State for Trade and Industry what recent discussions she has had with major auction houses or their representatives about (a) droit de suite and (b) the level of VAT on art sales. [180934]

Ms Hewitt: Discussions are currently taking place on droit de suite between officials and representatives of the art trade, but there have been no recent discussions on the level of VAT on art sales.

Mr. Swire: To ask the Secretary of State for Trade and Industry what studies she has made of auction houses' contribution to the UK art market. [180952]

Ms Hewitt: A study was commissioned in 2003 on the potential cost and benefit of implementing EC Directive 2001/84/EC on the Resale Right for the Benefit of an Author of an Original work of Art (Droit de Suite). This was received just before Christmas 2003 and focuses on the number and value of sales of modern and contemporary art handled by the auction houses in the 2001–02 season (August 2001 to July 2002). The data will be used in the preparation of a draft Regulatory Impact Assessment, on which comment will be invited from interested parties and the public as part of the consultation process regarding implementation of the directive.

British Exports (India)

Tony Baldry: To ask the Secretary of State for Trade and Industry whether British exports to India are to be used in Jaguar jets for the purpose of enabling them (a) to carry and (b) to deliver nuclear weapons. [182116]

Nigel Griffiths: All export licence applications for India are carefully assessed against the consolidated EU and National Arms Export Licensing Criteria and the Bradshaw Statement. As part of this assessment both the stated and potential end-use of the equipment is considered. The Government would not issue an export licence to India if it were assessed that the goods were to be used in contravention of the Criteria or the Statement. Exports to India for the purpose of carrying or delivering nuclear weapons would constitute a contravention and would therefore not be licensed.

Correspondence

Mr. Steen: To ask the Secretary of State for Trade and Industry when she will reply to the letter from the hon.
 
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Member for Totnes dated 17 March concerning Martyn Tozer of Kingsbridge, Devon and the Corporate Social Responsibility Bill. [182208]

Mr. Timms [holding answer 5 July 2004]: I apologise that because of an administrative oversight the hon. Member did not have a prompt reply to his letter of 17 March. A reply has now been sent, and a review has been commissioned to see what lessons can be learnt to avoid such delays in future.

Door-to-door Sales

Dan Norris: To ask the Secretary of State for Trade and Industry what steps her Department is taking to tackle unregulated door-to-door salesmen. [182495]

Mr. Sutcliffe: The Office of Fair Trading (OFT) have investigated doorstep selling as a whole and published their market study report on 12 May. We are carefully considering the report and any proposed legislative changes will be the subject of thorough consultation.

Electricity Generation

Mr. Colman: To ask the Secretary of State for Trade and Industry when she will publish the consultation document on revised power station consent guidance listed on the Sustainable Energy Policy Network's website. [181959]

Mr. Timms: The 2003 Energy White Paper "Our energy future—creating a low carbon economy" included a commitment to review existing guidance to developers seeking consent from DTI for large power stations, setting out the steps they need to take to ensure economically viable opportunities for CHP are fully considered. The existing guidance can be found at: http://www.dti.gov.uk/energy/leg and reg/consents/powerstation eng.pdf.

The review will aim to make the guidance clearer about the information and evidence required from developers to show opportunities have been properly explored.

The Government intend to publish a consultation document before the parliamentary recess.

Mr. Colman: To ask the Secretary of State for Trade and Industry what measures her Department has introduced to ensure power stations use fuel efficiently. [181960]

Mr. Timms: The framework and operation of a market based approach to the delivery of reliable electricity supplies provides strong incentives to generators to use fuel efficiently.

Our Energy White paper published in February 2003 set out the need to make more efficient use of energy sources. In particular, the White Paper identified combined heat and power (CHP), as a way to make more efficient use of fuel.

In April the Department for Environment Food and Rural Affairs published "The Government's Strategy for Combined Heat and Power until 2010" setting out a framework to support the growth of CHP capacity in the UK. Measures set out in the Strategy to support that growth include reviewing the existing guidance on
 
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information required to accompany power station consent applications to ensure full consideration of all options for CHP and community heating.

The Government requires any application for consent under section 36 of the Electricity Act 1989 to construct a power station of more than 50 megawatts to demonstrate that it has explored the use of CHP and community heating.

Mr. Colman: To ask the Secretary of State for Trade and Industry what work has been undertaken with Ofgem in the past year to ensure administrative arrangements under the New Electricity Trading Arrangements are fully accessible to smaller generators as highlighted on the Sustainable Energy Policy Network website; and what assessment she has made of how effective these measures have been. [182009]

Mr. Timms: Both the DTI and Ofgem have been involved in a number of initiatives aimed at improving the position of smaller generators.

With regard to the Balancing and Settlement Code, Ofgem has considered and approved a number of modifications. For example, a revision of the definition of the System Buy and Sell Prices has significantly reduced the spread of imbalance prices and thus the risk to which smaller generators in particular are exposed. Modifications have also been made to National Grid Transco's charging methodology, which now allows "embedded benefits" to be paid directly to generators in certain circumstances, which again will particularly benefit smaller generators. In this area, it is primarily the role of the Balancing and Settlement Code Panel to assess the impact of measures, and for industry participants to bring forward modifications to the code if they are considered unsatisfactory.

In the context of the future British Electricity Trading and Transmission Arrangements, the DTI and Ofgem have recognised the special position of smaller generators through the provision of a discount for small transmission-connected generators in Scotland.

More generally, the Distribution Commercial Forum, which is facilitated by Ofgem, is responsible for assisting industry participants in improving the governance framework of the existing distribution connection and use of system arrangements. The Distribution Generation Working Group—jointly chaired by Ofgem and DTI—is looking at ways in which the barriers to the connection of smaller-scale generation can be removed, and their contribution to the system in terms of losses, contribution to security and other embedded benefits can be fully recognised. Both of these forums therefore play assessment roles vis-à-vis the position of smaller generators.

Mr. Colman: To ask the Secretary of State for Trade and Industry what her current estimates are of the levels of electricity generation by (a) coal, (b) gas, (c) nuclear and (d) renewables in (i) 2005, (ii) 2010 and (iii) 2020. [182035]

Mr. Timms: Data for the year 2000 and projections for future years are shown in the following table. The table is extracted from a published working paper
 
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"Updated UK Energy Projections", dated May 2004, and is available at: http://www.dti.gov.uk/energy/sepn/uep.pdf.

The working paper represents work in progress and a final report is expected to be published later this year.
Table 18: Electricity Generation, TWh⁽¹⁶⁾

	2000	2005	2010	2015	2020
Coal	111.9	113	106	89	57
Oil	2.1	2	2	2	2
Gas	127.0	116	132	159	225
Nuclear	78.3	84	61	41	27
Renewables(16)	10.1	15	39	58	58
Imports	14.3	9	10	10	10
Pumped storage	2.6	3	3	3	3
Total	346.3	344	353	362	382

⁽¹⁶⁾The figures in this table relate to gross supply to the grid, plus imports of electricity. See also footnote 11 relating to coverage.
⁽¹⁷⁾The level of renewables generation in 2010 is approximately 10 per cent. of overall generation.

Footnote 11 explains that for modelling purposes, the coverage of the industry is major power producers plus all renewable generators. All other generators of electricity are included within the industrial or commercial sectors.

Mr. Colman: To ask the Secretary of State for Trade and Industry what her estimate is of the percentage of natural gas electricity generation in (a) 2005, (b) 2010 and (c) 2020 that will have to be imported. [182036]

Mr. Timms: The Department does not make estimates of gas import needs for individual sectors such as power stations. The most recent assessment of gas import needs for the whole economy can be found in the fourth report of the DTI-Ofgem Joint Energy Security of Supply working group which can be accessed at: http://www.dti.gov.uk/energy/jess/jessreport4.pdf. This report suggests that perhaps 40 per cent. of our gas needs will be imported by 2010 and 80 per cent. or more by 2020. But the actual extent of import dependency is inevitably uncertain. In its recently published 17th report ("Gas: Liberalised Markets and Security of Supply", HL Paper 105), the House of Lords European Union Committee has asserted that the UK will be importing around 50 per cent. of its gas requirements by 2010 and around 70 per cent. in 2020.

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