House of Commons
Thursday 11 November 2010
The House met at half-past Ten o'clock
Prayers
[Mr Speaker in the Chair]
Mr Speaker: I remind the House that two minutes' silence will be observed in the Chamber at 11 o'clock this morning.
Oral Answers to Questions
Energy and Climate Change
The Secretary of State was asked-
Feed-in Tariffs
1. Charlie Elphicke (Dover) (Con): What plans he has for the future of feed-in tariffs for small-scale renewables; and if he will make a statement. [23141]
The Minister of State, Department of Energy and Climate Change (Gregory Barker): Before answering that question, I should like to offer the apologies of the Secretary of State to you, Mr Speaker, and to the House. He is unable to attend today's departmental questions, as he is still travelling back from China at the conclusion of the Prime Minister's highly successful visit. However, the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Wealden (Charles Hendry), and I will do our best to field questions from the House. We would both like to welcome the new team to their places on the Opposition Front Bench.
In respect of question 1, as confirmed in last month's spending review, the coalition is fully committed to feed-in tariffs for small-scale renewables. We want an ambitious roll-out of a range of decentralised domestic and community-scale technologies, and to maximise the scheme's value for money, particularly in the current fiscal climate.
Specifically, we have said that when we review the scheme in 2012, we will reduce projected costs by 2014-15 by at least £40 million. Only in the event of deployment running ahead of published projections would we bring forward that review. But, to reassure the industry further, we will announce the trigger for such an early review shortly.
Charlie Elphicke: Many businesses say that too few people know how feed-in tariffs can help them save money and the planet at the same time. What steps can Ministers take to build feed-in tariffs up to a substantial market scale?
Gregory Barker:
We are very keen to encourage businesses, communities and, of course, home owners to engage in the decentralised energy revolution, and to
that end I am very pleased to tell my hon. Friend that we will shortly publish a new online initiative, giving a whole lot of detail to communities and businesses in order to allow them to access financial incentives and to cut through regulation.
Albert Owen (Ynys Môn) (Lab): Many peripheral areas such as my constituency cannot benefit from feed-in tariffs because they simply have the wrong transmission lines and infrastructure. Can the Minister assure me that, in the future, when there is a universal roll-out of feed-in tariffs, areas such as mine will not be hit by disproportionate costs because the infrastructure is lacking?
Gregory Barker: Absolutely. I am sorry to hear that the hon. Gentleman thinks that his constituency is behind, and I shall be very happy to look into the specific case in his area. If he would like to write to me with specific issues, I shall ensure that my officials look into them, because we are committed to a national roll-out of this exciting technology.
Malcolm Bruce (Gordon) (LD): What discussions is the Department having with financial institutions to ensure not only that access to feed-in tariffs is available to people on low incomes, who cannot borrow money at competitive rates in order to benefit, but that, if it really is a national programme, low-income people will fully benefit from it?
Gregory Barker: Feed-in tariffs are available to everybody, regardless of income, and there are some innovative market solutions and offers that allow people to access those technologies without needing any up-front capital. However, it is up to the market to bring forward such solutions, and for Government to create the environment in which the market can do so.
Huw Irranca-Davies (Ogmore) (Lab): The influence of the Secretary of State's visit to China has already been evidenced this week, as the Department for Energy and Climate Change announced its five-year plan to coincide with the fourth five-year plan of the People's Republic of China. We are all state planners now.
In respect of small-scale renewables and feed-in tariffs, I note that solar power did not receive a single mention-not a single word-in DECC's five-year plan, so will the Minister now admit that, on his watch, feed-in tariffs will be withdrawn from photovoltaics? What does he say to the pioneers and early adopters of that technology now that the sun is going down on photovoltaics?
Gregory Barker: I am very sorry that the hon. Gentleman should commence his career on the Opposition Front Bench shadowing this Department with a completely false scare story. It is completely untrue. We are absolutely committed to solar PV and to the widest range of domestic and community-scale renewables, but the fact is that we inherited a system that simply failed to anticipate industrial-scale, stand-alone, greenfield solar, and, although we will not act retrospectively, large field-based developments should not be allowed to distort the available funding for roof-based PV, other PV and other types of renewables.
Warm Front Scheme
2. Caroline Lucas (Brighton, Pavilion) (Green): What changes he proposes to make to the Warm Front scheme to ensure that it meets the needs of vulnerable fuel-poor households. [23142]
The Minister of State, Department of Energy and Climate Change (Gregory Barker): As announced in the spending review, DECC will fund a smaller, more targeted Warm Front scheme over the next two years as we transition to the full roll-out of the green deal, with its energy company obligation. We will shortly be consulting on the proposed changes to Warm Front to ensure that the eligibility criteria reflect the coalition's determination to focus on the most vulnerable households.
Caroline Lucas: Warm Front funding is to be reduced from £345 million to £110 million by next year-that is a 68% cut. The Government's plans to try to bridge the gap are likely to be funded through a levy on consumer bills, but that does not take into account the fact that this perversely hits the fuel poor hardest. What account has the Secretary of State taken of the Government's own figures, which estimate that although options such as an extension of CERT-the carbon emissions reduction target-might take between 21,000 and 31,000 households out of fuel poverty, the impact via increased fuel bills is that it results in 70,000 to 150,000 households being put into fuel poverty?
Gregory Barker: The coalition is very mindful of the impact of all levies on domestic fuel bills. That is why, in the comprehensive spending review, we decided, for example, not to go forward with plans to fund RHI-the renewable heat incentive-on the basis of a levy, but to fund it out of general taxation. However, I can assure the hon. Lady that we look overall at the benefits for the fuel poor that will accrue from access to the green deal, feed-in tariffs and social price support, as well as continuing support for Warm Front for the next two years. Taken together, this holistic approach will ensure that we continue to make progress against fuel poverty.
Andrew Bridgen (North West Leicestershire) (Con): Considering the previous Government's abject failure to tackle rural fuel poverty, will my hon. Friend tell me what we are going to do differently?
Gregory Barker: We are looking very carefully to ensure that our proposals for the RHI and social price support particularly take into account the needs of off-grid customers and the fuel poor. The green deal will take particular account of those in hard-to-treat homes, which are often older houses in rural areas.
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op):
Age UK estimates that more than 3.5 million older people across the UK live in fuel poverty, and every year more than 30,000 older people die from preventable causes over the winter months-a tragedy that we should do all we can to prevent. I have spoken to Age UK about the Government's plan to phase out the Warm Front scheme and replace it with the green deal. Warm Front has so far brought 21st-century heating to more than 2 million households. Age UK is concerned that key components of the Warm Front scheme, including
boiler replacements, will not be covered under the green deal. As another cold winter takes hold, has the Minister spoken to Age UK about its concerns, and can he guarantee that the green deal will be fair and will not leave millions of elderly people abandoned in their own homes, living in fuel poverty?
Gregory Barker: I can certainly guarantee, regarding the green deal, that fairness will be at the very heart of this exciting new proposition. In fact, the hon. Lady underestimates the number of fuel poor. Our departmental figures show that there are probably more than 4 million households living in fuel poverty, and that is a direct legacy of the Government whom she supported. Fuel poverty has been rising, year on year, and it did so right the way through the previous Parliament. It is a scandal that despite setting the target for 2016, the trajectory was going the wrong way. We need a game changer; we have to start again. We have to really attack fuel poverty, but we need new ambition, and we are bringing forward radical reforms to ensure that the delivery matches the rhetoric.
Carbon Budgets
3. Richard Ottaway (Croydon South) (Con): What assessment he has made of the potential effects of the outcomes of the comprehensive spending review on the ability of the Government to meet its carbon budgets; and if he will make a statement. [23143]
The Minister of State, Department of Energy and Climate Change (Gregory Barker): According to our initial analysis, we are still very much on track to meet our first three carbon budgets. However, the details of the carbon impacts of the spending review will be subject to change until all Departments have decided how to allocate their new financial budgets.
Richard Ottaway: May I congratulate the Minister on achieving a 21% increase in environmental spending right across the Government under the CSR? Will he use this resource to unlock the private sector, which will have the benefit of reducing carbon dioxide emissions while at the same time helping the economy?
Gregory Barker: My hon. Friend is absolutely right. That was an excellent settlement for the green agenda and we now have the resources to fund our core mission of moving towards a low-carbon economy. Ultimately, however, it will be the private sector and private capital, taking advantage of the opportunities that those resources afford, that will allow us to achieve that big transformation. All our initiatives and market reforms are aimed at crowding in private sector capital and making the private sector an exciting place to invest for entrepreneurs and investors.
Alison McGovern (Wirral South) (Lab): Part of the private sector in my constituency, Stiebel Eltron, has come together with training provider, Scientiam, to open a new green energy training centre in Bromborough. That is the sort of action that could really help carbon budgets. Will the Minister join me in congratulating all involved?
Gregory Barker:
I certainly will. It sounds like an excellent initiative, and the hon. Lady will know that despite the catastrophic deficit that we inherited, early
on we made £150 million extra available for skills. She is absolutely right that skills and retraining are vital, and I would be delighted to learn more about that institution. Perhaps one day I might be able to visit.
Mr Peter Lilley (Hitchin and Harpenden) (Con): Given that the Government's own impact assessment of the feed-in tariffs to which the Minister referred earlier shows that the costs exceed the benefits by a factor of 20, wasting £8 billion of taxpayers' money, how does that fit in with the comprehensive spending review? Have green policies been exempted from it and become a form of financial self-flagellation?
Gregory Barker: Not when I last checked.
I am afraid there is a fundamental difference of approach between the coalition and my right hon. colleague. [Hon. Members: "Colleague?"] My right hon. Friend. I beg his pardon. The feed-in tariffs have to be seen as a key element of our policies to drive a decentralised energy revolution. If we decentralise energy production, it will have a large number of knock-on effects. It will engage communities and householders, who will become more responsible in the energy economy and take up opportunities that are currently not available to them in an old, 20th-century style of energy provision.
Huw Irranca-Davies (Ogmore) (Lab): To realise the carbon budgets, I make an appeal to the hon. Gentleman. He is a reasonable and intelligent man, I will give him that, and, despite the mixed messages, he understands the importance of new nuclear energy to the UK's carbon reduction strategy. Will he go back to his Treasury colleagues and argue the case again for Sheffield Forgemasters, if only for the carbon reductions, for making the UK a world leader in nuclear build and the export of green jobs and technology, and for the sake of the right hon. Member for Sheffield, Hallam (Mr Clegg)? Just do it.
Gregory Barker: Really, is he still banging on with the first half-year's crib sheet? I thought the hon. Gentleman had come with some fresh material.
We are absolutely committed to a thriving nuclear industry, not just for the domestic sector but for export opportunities. Participants in the industry to whom I talk are very confident about the outlook for the British nuclear industry.
Climate Change Financing
4. Duncan Hames (Chippenham) (LD): What discussions he has had on climate change financing in the UN Secretary-General's high-level advisory group on climate change financing. [23144]
The Minister of State, Department of Energy and Climate Change (Gregory Barker): Over the past year, my right hon. Friend the Secretary of State has had wide-ranging discussions on potential sources of climate change financing as part of his involvement in the high-level advisory group on climate change financing. The discussions have focused on how developed countries can meet their Copenhagen accord commitment to mobilising $100 billion a year of public and private finance by 2020, to assist poorer countries with the climate challenge.
Duncan Hames: I thank the Minister for that reply, which I am sure we will be able to explore further in my Westminster Hall debate on Cancun next week. Last week's report should be welcomed for presenting several innovative sources of climate finance, including a tax on aviation and shipping. When can we expect the Government to set out concrete proposals for taking forward any of those options?
Gregory Barker: They were of course options for the international community, not just for the UK, and we need to do a lot more work collectively to put the flesh on the bones of detailed and radical proposals so that the UK can consider each of them on their merits. I fear that there is still some time to go before we are in a position to do that, but the UK is very much committed to the process and to doing so sooner rather than later.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op): The Minister will know that some people are already writing down the prospects of a successful agreement at Cancun and talking about Johannesburg next year as the place at which an agreement might be reached. Will the Minister reassure the House that the Government will do everything possible to ensure that an agreement is reached at Cancun? Will he therefore show Britain's role in that process by providing information about how we will commit climate finance as soon as possible?
Gregory Barker: I am glad to say that there is strong cross-party commitment to a legally binding global deal, but I do not think that we are being unduly pessimistic in saying that we do not expect a globally binding deal to be reached at Cancun. That seems to be the expectation of most of the key participants. However, I can assure the hon. Gentleman that the UK is committed to making good progress at Cancun across a range of issues, including finance. We have committed in the CSR to a strong role for fast-start finance, details of which we have already announced.
Fuel Poverty
5. Karl Turner (Kingston upon Hull East) (Lab): Whether he has assessed the effect of the outcomes of the comprehensive spending review on households in fuel poverty. [23145]
The Minister of State, Department of Energy and Climate Change (Gregory Barker): The spending review committed significant resources to tackling fuel poverty. Warm Front will continue to install measures for around 160,000 households in the next two years. In addition, we are actively working on the green deal and its new energy company obligation, which will have a particular focus on vulnerable households, for the end of 2012. We have confirmed an increase to cold weather payments at £25 a week. We have also confirmed that, from April 2011, energy suppliers will provide new help with energy bills, particularly for the most vulnerable fuel-poor households, through social price support. I will make a more detailed announcement on SPS shortly.
Mr Speaker: We are grateful. A blue pencil is needed to some of these initial answers. They are simply too long.
Karl Turner: I am grateful to the Minister for his reply, but, with respect, talk is cheap. Can he explain how massively cutting budgets to Warm Front, which does a fantastic job in my constituency, will help to eradicate fuel poverty by 2016, as per the previous Government's target?
Gregory Barker: As the hon. Gentleman will know, fuel poverty grew year on year on year under the previous Government. It is simply a fact that 4 million households are now in fuel poverty; five years ago, 2 million households were in fuel poverty. If we had carried on with Warm Front business as usual, the fact of the matter is that it would have taken more than 20 years to achieve the 2016 target. We need a fresh approach, we need to bring in private investment and we need to create new markets. Only then, with the ambition that we have in the new coalition, will we really stand a chance of tackling fuel poverty.
Mr Speaker: Answers really must be shorter from now on. The Minister has been too long, and that is the end of it.
Energy Efficiency
6. Mr David Amess (Southend West) (Con): How many households he expects to have participated in his Department's energy efficiency programmes by 2015. [23147]
The Minister of State, Department of Energy and Climate Change (Gregory Barker): The green deal will create a completely new market mechanism, incorporating an entirely new obligation on energy suppliers. It will drive up energy efficiency on an unprecedented scale, potentially reaching up to 26 million homes. Green deal plus and other initiatives should lead to around 10 million homes being treated by 2015.
Mr Amess: That is good news, but as a promoter of the Warms Homes and Energy Conservation Act 2000, may I ask my hon. Friend whether he shares my disappointment at the relatively poor take-up of the scheme? What initiatives are the Government taking to ensure that vulnerable people are not cold in their homes this winter?
Gregory Barker: First, may I pay tribute to my hon. Friend's long record of campaigning on this issue? I assure him that Warm Front remains open. We will be treating tens of thousands of new homes this winter. However, it must be the right long-term approach to look for new ways to crowd in private sector investment.
Barry Gardiner (Brent North) (Lab): The Secretary of State has announced his intention significantly to advance the 2020 target for the roll-out of smart meters. The industry, however, is saying that, for each year in advance, there may be trade-offs in efficiency, the interoperability of the kit and the overall functioning of the scheme. Will the Minister ask his officials to investigate that trade-off between efficiency and the acceleration of the scheme, and report back to Parliament?
Gregory Barker:
The hon. Gentleman is right. There is a new sense of ambition on the roll-out of smart meters because they offer huge potential. He is also right that that is complex. There is a trade-off to be made, and we are alive to that. My hon. Friend the
Minister and our officials are working on the matter collaboratively with the industry, and I can assure the hon. Gentleman that we are making good progress.
Offshore Oil Drilling (Safety Regime)
7. Mr Philip Hollobone (Kettering) (Con): Whether he plans to amend the safety regime for offshore oil drilling following the publication of the analysis of the causes of the oil spill in the gulf of Mexico. [23149]
The Minister of State, Department of Energy and Climate Change (Charles Hendry): I am delighted to take part in the Greg Barker show, Mr Speaker.
Although DECC regulates environmental aspects of the oil and gas sector, the Health and Safety Executive is responsible for safety. We have taken further steps to strengthen our regulatory regime by doubling the number of environmental inspections, and we are satisfied that the regime is one of the most robust in the world. We have been looking closely at information from the Macondo incident and will continue to do so. When those investigations are complete, we will determine what more, if anything, needs to be done to reinforce our regulatory approach.
Mr Hollobone: My constituents in Kettering would like to know whether an incident such as happened in the gulf of Mexico could happen on the UK continental shelf, and if so, what the Government would be able to do about it.
Charles Hendry: One of the most immediate actions taken was to ensure that we have capping and containment devices-two containment devices that could deal very quickly with such an emergency are now based in the UK. We are also working with the industry on capping devices that would provide early, permanent solutions.
Sir Robert Smith (West Aberdeenshire and Kincardine) (LD): Will the Minister ensure not only that we will rightly learn any lessons from the inquiries into the gulf of Mexico incident, but that nothing is done to lose the leading-edge safety case regime that has been so well established since the Piper Alpha disaster?
Charles Hendry: My hon. Friend is absolutely right. We are keen to see international standards and work on that basis. However, that means bringing other countries up to the standard that already operates in the North sea, rather than lowering our standards to other international levels.
Miss Anne Begg (Aberdeen South) (Lab): What is the Government's role in the Oil Spill Prevention and Response Advisory Group, which was set up by the industry in the UK in the light of the disaster in the gulf of Mexico?
Charles Hendry: OSPRAG is rightly an industry-led initiative. We are working very closely with it, especially on identifying areas where Government involvement in crucial. We are particularly supportive of its work on developing immediate capping devices to ensure that should a disaster occur, it can be dealt with very quickly indeed.
Electricity Market Reform
8. Eric Ollerenshaw (Lancaster and Fleetwood) (Con): When he expects to announce his plans for a consultation on electricity market reform. [23150]
The Minister of State, Department of Energy and Climate Change (Charles Hendry): The Secretary of State announced his plan for a consultation on electricity market reform in the annual energy statement in July. In accordance with the DECC business plan, the consultation will be launched in December.
Eric Ollerenshaw: What reassurance can the Minister give the House that that consultation will end up not like the endless consultations of the previous Government, but with a clarity of purpose on our energy policy?
Charles Hendry: My hon. Friend is absolutely right. We must put a stop to Green Papers, reviews and consultations. We must draw a line in the sand and say, "This is the time to make decisions, this is the structure and this is basis for getting on with it." We simply must get on with the investment.
Dr Alan Whitehead (Southampton, Test) (Lab): Will the Minister consult on the question of capacity payments for energy plant investment and on low and high-carbon markets? Alternatively, does he consider, as is suggested in the coalition document, that simply having a floor price for carbon will be enough to sort the market out for the future?
Charles Hendry: The hon. Gentleman knows a huge amount about these issues. We are consulting on a floor price for carbon, which we believe is essential, and also on other mechanisms that might be necessary to secure investment in low-carbon technologies. We will consult on capacity payments in terms of back-up generation capacity and on other ways of managing demand, which we think is a more efficient way to deal with that problem.
Renewable Heat Incentive
9. Ian Swales (Redcar) (LD): If he will take steps to ensure that the renewable heat incentive does not make UK energy-intensive industries internationally uncompetitive. [23152]
The Minister of State, Department of Energy and Climate Change (Gregory Barker): As announced in the spending review, the RHI will now be funded from Government spending and not from a levy on bills, so we do not believe that there will be any negative impact on the competitiveness of UK energy-intensive industries. On the contrary, the RHI will offer a great opportunity for energy-intensive industries to gain financially.
Ian Swales: The deal for Sahaviriya Steel Industries, a Thai company, to buy Redcar steelworks is likely to be completed within a few weeks. Will the Minister meet representatives of that company to reassure them about the future carbon and energy policy for their industry?
Gregory Barker: I know that my hon. Friend is working extremely hard on this issue. I would be delighted to meet him and the potential purchasers to see what we can do to help to secure those important jobs.
Mr Speaker: Order. I am grateful to the Minister because he has heeded the advice that I have given to him. The exchange that has just taken place between the hon. Member for Redcar (Ian Swales) and the Minister is a good illustration of how these matters should be conducted. I feel confident that the Minister will want to build on the great advance he has made in recent minutes, and I hope that the House will also feel that this is beneficial to the way in which we do our business. We can always do better, each and every one of us, and there will be further opportunities.
The House will now stand and observe two minutes' silence.
11 am
The House observed a two-minute silence.
There was interest in Mr Swales's question and I hope that there still is.
Mr Denis MacShane (Rotherham) (Lab): On this subject, will the Minister meet the UK Energy-Intensive Users Group, because its report, published this week and entitled "The Cumulative Impact of Climate Change Policies on UK Energy Intensive Industries", suggests that without a change of course, electricity prices for the steel industry-which is very important for south Yorkshire-could rise by as much as 141% by 2020? We are all climate-changers and carbon-reducers, but not at the price of eliminating our steel industry.
Gregory Barker: The right hon. Gentleman makes a serious point and last week I had a very good visit to Stoke and the constituencies of several of his hon. Friends to look at how this problem affects the ceramic industry. I would be happy to talk to him about how we can ensure that we do not unduly undermine the competitiveness of the steel industry.
Sarah Newton (Truro and Falmouth) (Con): I welcome the Government's commitment to the renewable heat incentive. What representations has the Minister had to include deep geothermal energy in the RHI?
Gregory Barker: There is a lot of interest in geothermal, which is a very exciting technology with much potential. I have had several representations, not least from my hon. Friend, who is a great champion of this new technology. I am working with my officials to see how we can ensure that geothermal is fully exploited in the UK.
Tidal Power (Severn Estuary)
11. Mr Ben Bradshaw (Exeter) (Lab): What assessment he has made of the effects on local employment levels of his decision not to pursue tidal technologies in the Severn estuary. [23154]
The Minister of State, Department of Energy and Climate Change (Charles Hendry):
A Severn tidal power scheme could create jobs in Wales and south-west England during construction and operation. However, it could
also cause job losses in the Severn estuary's ports, fishing and aggregate extraction industries. We are talking to interested private sector developers and remain absolutely committed to supporting the growth of a successful UK tidal energy sector.
Mr Bradshaw: Is it not extraordinary that the Energy and Climate Change Secretary can go from being anti to pro-nuclear in a matter of days, yet abandon tidal power for Britain? The Severn estuary has the potential to create 5% of our energy needs and create 100,000 jobs. How does that square with the Prime Minister's promise to put tidal energy at the top of his so-called green agenda?
Charles Hendry: The right hon. Gentleman put it correctly in his own blog, when he said:
"In an ideal world, we would all like to see the scheme that has the potential to provide the maximum amount of renewable energy and the least environmental impact in other ways".
But that might not be possible. We have looked at the costs, the environmental consequences, the benefits it would bring, the alternative schemes and the resulting diversion of capital, and we have decided that other tidal mechanisms would be better.
Miss Anne McIntosh (Thirsk and Malton) (Con): What role did the environmental impact assessment have in the final decision not to proceed, and what lessons can be learned from this process?
Charles Hendry: It was part of the process, but it was not the whole process. We have also looked very carefully at the costs: the main barrage would cost more than £30 billion. We looked at the amount of subsidy that would require now, and believed that it was not the right way forward.
Offshore Wind Power (Port Infrastructure Funding)
12. Alex Cunningham (Stockton North) (Lab): What proportion of his Department's funding for low-carbon technologies is likely to be allocated to port infrastructure for offshore wind industries in the next four years. [23155]
The Minister of State, Department of Energy and Climate Change (Charles Hendry): The spending review announcement included about £200 million to support the development of energy technologies, as well as up to £1 billion for carbon capture and storage. We will commit up to £60 million to support offshore wind manufacturing infrastructure at port sites, to meet the needs of offshore wind manufacturers.
Alex Cunningham: I am grateful for that answer, and I am pleased that the Government are following through on this Labour party initiative. The Minister will know that north-east England, including the north bank of the river Tees in my constituency, is well placed to create thousands of jobs through the development of offshore wind farms. Can the Minister assure me that our north-east regional ports will get a share of this investment?
Charles Hendry:
These are some of the best opportunities anywhere in the country. We know there are good opportunities across the country, and they will be
particularly focused on assisted areas, which will certainly include parts of the north-east. There is great potential there that we hope will be developed.
Mr Charles Kennedy (Ross, Skye and Lochaber) (LD): Given the developments in this sector generally, will the Minister comment on the £70 million wind energy fund, which has just been unveiled by the First Minister for Scotland, and which the First Minister claims is open for business immediately and will lead to the creation of 28,000 jobs? We all hope he is right. Has the Minister's Department been involved with the Scottish Government? How does he see this rolling forward?
Charles Hendry: The First Minister's announcement was based on his own decision, and we are still waiting for more details about what it will involve. However, when we put together £70 million for Scotland and £60 million for England, we have a significant contribution to the development of this industry in the United Kingdom.
Green Investment Bank
13. Clive Efford (Eltham) (Lab): What discussions he has had with the Secretary of State for Business, Innovation and Skills on the lending practices to be adopted by the proposed green investment bank. [23157]
The Minister of State, Department of Energy and Climate Change (Gregory Barker): The Secretary of State and I are in regular and close contact with colleagues in the Department for Business, Innovation and Skills and other ministerial colleagues. Following the spending review announcement, the Government aim to complete the design and testing work for the function and form of the GIB by spring 2011.
Clive Efford: How does the Minister intend to advise the bank on its functions when investing in essential green industry development? In particular, if we are looking for winners when investing in new innovation, we might miss the opportunity to provide seedcorn investment, which might then be taken up by other countries. It is essential that we look into investment in new technologies and that we do not miss these opportunities.
Gregory Barker: There are obviously other ways of investing in new technologies, including through the energy strategy board, and the coalition has made an absolute commitment to push forward a range of technologies. The GIB is about crowding in private sector investment into a viable green economy.
Christopher Pincher (Tamworth) (Con): Does the Minister agree with me, with the chief executive of Greenpeace, John Sauven, and, for that matter, with Andy Atkins of Friends of the Earth, that if the GIB is to be truly successful it must be independent and operate as a proper bank? It must not be seen as a fund or a quango.
Gregory Barker: My hon. Friend makes a good point. It is vital that the new institution, which will be the first of its kind in a modern economy, has the maximum capacity to crowd in private sector capital. As a result, it will need to have many of the functions that he lists.
Mr Mike Weir (Angus) (SNP): In Scotland, some of the money for lending by the GIB will have been accumulated through the fossil fuel levy. This is money that came from Scottish consumers, and which the Secretary of State's party promised to release unconditionally to the Scottish Government. Will the Minister press for the immediate release of the money to enable investment in renewable energy now, rather than waiting perhaps years for the setting up of the GIB?
Gregory Barker: There already is dialogue with the Scottish Government on this important issue. The way in which we administer those funds must ensure that they are used to help to drive forward green growth and green jobs.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op): It is a shame that the Secretary of State cannot be here today, but I appreciate that his private office let me know in good time. I suspect that, even stuck in an airport in Hong Kong, he must be finding it a challenge not to gloat about the settlement that his Department received from the Treasury. We have heard the Prime Minister talk about the "greenest Government ever" and the Secretary of State talk about a "third industrial revolution". The Minister today has talked about the private sector playing a key role, and yet, as we have just heard, we have no detail about the green investment bank. Is it just a crowd-pleasing gimmick, designed for the Secretary of State to please his friends in Birmingham next September, or is it going to be something real?
Gregory Barker: That is a bit rich coming from the party that produced a crowd-pleasing gimmick after we had published our proposals for the green investment bank last year. Unfortunately, absolutely no work was done in the Treasury before May on any such proposal, so we are starting with a clean sheet of paper. As I have said to the hon. Lady, and as the Chancellor has said, we are working hard on an ambitious proposal, and we hope to make our proposals before the spring. This is very real, and it will play a huge role in driving the green economy.
Meg Hillier: But we still have a distinct lack of detail. We are very aware that "spring" in civil service language can extend for a long period. While the Secretary of State and his team are polishing their green halos-indeed, the Minister is wearing his green tie today-will they tell us whether the green investment bank will have any capital? We are already seeing signs that capital that could have gone into it is going straight to the Treasury. Will the green investment bank be profit making? Will it invest in proven technology or safe bets? The simple question is: when will we know what the green investment bank will be capable of doing and whether it will fuel the private sector investment in green technologies that the Minister has talked about today?
Gregory Barker:
If the hon. Lady had been at the comprehensive spending review, she would know that the Chancellor has already committed £1 billion as a backstop. Indeed, he told the Treasury Select Committee last Thursday that that would be just a backstop and that significant further funds would come from asset sales. I appreciate the hon. Lady's eagerness to support
a Conservative and Lib Dem proposal, but I have to say that we are going to get this right, and we will come forward with a robust proposal by next spring as a matter of urgency.
Feed-in Tariffs
14. Greg Mulholland (Leeds North West) (LD): What plans he has for the future of feed-in tariffs for small-scale renewables; and if he will make a statement. [23158]
16. Stephen Hammond (Wimbledon) (Con): What plans he has for feed-in tariffs for small-scale renewables; and if he will make a statement. [23160]
The Minister of State, Department of Energy and Climate Change (Gregory Barker): As indicated to my hon. Friend the Member for Dover (Charlie Elphicke) earlier, I confirmed in last month's spending review that the coalition is fully committed to feed-in tariffs for small-scale renewables.
Greg Mulholland: I thank the Minister for that answer. Local councils have a crucial role to play, so what will the Government do to encourage them to take advantage of feed-in tariffs-especially small-scale feed-in tariffs-so that they can make money for local services as well as cut carbon emissions?
Gregory Barker: The hon. Gentleman makes an excellent point. One of the first things that my right hon. Friend the Secretary of State did was to abolish the previous ban on local authorities selling electricity to the grid. That will now help to create a new, exciting market. We are also making more information available to advise local authorities and communities on how they can access financial incentives.
Stephen Hammond: I listened carefully to my hon. Friend's earlier answer, and I was pleased to hear his remarks about solar power. I met a manufacturer of solar power technology on Monday, and he was concerned not about the finance opportunities but about the lack of educational opportunities, in that some people do not seem to appreciate the benefits of feed-in tariffs. What are the Government doing to increase education?
Gregory Barker: It is about dissemination of information, for which our new web-based initiative will be an important tool. Obviously, unlike the previous Government, we will not be spending lots of money on pamphlets and advertising. We have to be cautious about that, but we are doing our best to get the message out there, and ensure that communities and local councils have the information they need.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op): Does the Minister agree that the third sector plays an important part in small-scale renewables and much else that we have been discussing in Question Time today? On this, the six-month anniversary of this Government, does he realise that the third sector is being destroyed because of the uncertainty of funding, and that it will not last much longer in the environmental area?
Gregory Barker: I have to say that I simply do not share the hon. Gentleman's gloomy outlook for the third sector. We are engaging with some excellent social enterprises, and we certainly intend to ensure that the third sector is able to play as big a part as possible in both the green deal and the roll-out of renewable technologies at a micro level, in what is a very exciting agenda.
Floor Price (Carbon)
15. Mr Dominic Raab (Esher and Walton) (Con): What plans he has to introduce a floor price for carbon. [23159]
The Minister of State, Department of Energy and Climate Change (Charles Hendry): The Chancellor announced in the Budget that the Treasury and Her Majesty's Revenue and Customs would publish proposals in the autumn to reform the climate change levy to provide more certainty and support for the carbon price, and to encourage investment in low-carbon electricity generation. DECC officials have been supporting the Treasury and Her Majesty's Revenue and Customs in developing these proposals, which will be published shortly.
Mr Raab: I thank the Minister for that answer, and I welcome his Department's consultation on a floor price for carbon. I hope that that will take the place of the tapestry of tariffs and subsidies that distort the market for clean energy. How will he ensure that the price is set at a level that ensures a level playing field and encourages long-term investment, including in nuclear power?
Charles Hendry: My hon. Friend puts his finger on the most crucial issue in the area. This is one of the most important areas where we will be consulting and taking forward policy in the whole of this Parliament. We have to set it at a level that will stimulate investment, without penalising consumers or reducing the commercial advantage of British companies. That is a priority in our work.
John Cryer (Leyton and Wanstead) (Lab): Does the Minister realise that a floor price for carbon that is significantly above the market rate will be seen as a subsidy for the nuclear industry, and how does he justify that?
Charles Hendry: This is a mechanism to support investment in all low-carbon technologies. We were left with a mountain to climb-£200 billion of new investment-as a result of the failure to secure enough investment in the past. These are part of the crucial measures required to make sure that international investors see the attraction of investing in Britain.
New Nuclear Power Stations
17. Andrew Stephenson (Pendle) (Con): What steps he is taking to facilitate the construction of new nuclear power stations without public subsidy. [23161]
The Minister of State, Department of Energy and Climate Change (Charles Hendry):
I am on a roll now. The coalition agreement makes it clear that nuclear power without subsidy has a role to play in our future
energy mix. The Government are committed to removing obstacles to investment in new nuclear. These include designation of a nuclear national policy statement, completion of the required regulatory justification process, completion of a generic design assessment, and putting in place a robust regulatory framework for waste and decommissioning.
Andrew Stephenson: I thank my hon. Friend for his reply. Nuclear must be part of a diverse energy mix, but does he agree that it is now too late for new nuclear to come on line before the old capacity shuts down?
Charles Hendry: My hon. Friend emphasises absolutely the right point. We have a challenge coming in 2016 when one third of our coal plant will close. Another large chunk of coal will go towards the end of the decade, and most of our nuclear plant will close during this decade. Had it not been for the five-year moratorium on nuclear under the previous Government, we would have been five years ahead, and the energy security of this country would have been greatly enhanced.
Angela Smith (Penistone and Stocksbridge) (Lab): As was mentioned earlier, it is critical to advance manufacturing that the new generation of power stations goes ahead. Companies such as Forgemasters are looking for certainty. Will the Minister guarantee that the building of new stations will go ahead, even if it proves necessary to provide some public subsidy?
Charles Hendry: We have said that we want international companies to look at the opportunities in Britain, and we are encouraged that it is increasingly becoming one of the most attractive places in the world for investment in new nuclear. We will remove barriers to investment, but there will not be public subsidy for such work, and companies are not asking for that. We are creating the right framework for investment to take place.
Topical Questions
T1. [23166] Priti Patel (Witham) (Con): If he will make a statement on his departmental responsibilities.
The Minister of State, Department of Energy and Climate Change (Charles Hendry): Since our last departmental questions, we have launched a consultation on the revised draft national policy statement on energy calling for a surge in investment in new energy. We have worked with colleagues in the Treasury to secure a spending review settlement that allows us to deliver on our key policy objectives, and we have published our departmental business plan setting out how we will honour our commitments in the coalition agreement.
Priti Patel: In the past few years, bonuses and other allowances paid to the Minister's Department and its four quangos have totalled more than £30 million. What action is being taken to reduce these spiralling costs?
Charles Hendry:
My hon. Friend raises an important issue. Targeting payment to specific staff, rather than building it into a general salary, is a more efficient use of public spending. For example, it does not increase long-term costs such as pension entitlement. We are, however,
looking closely at such issues. We have already taken measures to tighten controls in areas such as travel, and we have implemented a pay freeze this year and next year for all staff other than those earning less than £21,000. The use of bonuses has been significantly reduced.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op): Moving from housekeeping to international issues, I note that next week there will be a debate on the Cancun climate change conference, thanks to the hon. Member for Chippenham (Duncan Hames). That debate is very welcome, but until we heard some snippets from the Minister today, it underlined the fact that there has been a deafening silence from the Government in the House about what they want to achieve. We all want a good outcome, and we recognise the challenges, as the Minister said, about legally binding international agreements. Will he tell the House clearly what the Government hope to achieve in the UK, and whether they are planning to make a statement in Government time?
The Minister of State, Department of Energy and Climate Change (Gregory Barker): We hope that there will be good progress at Cancun. In contrast to the sentiments expressed earlier, however, I think it is unlikely that we will get a legal agreement. We are certainly one of the most progressive nations, and we are following the example of the previous Government, to whose work on the international climate stage I pay tribute. It is tough but, as the Secretary of State said, there are grounds for optimism that we can make progress on measurement, reporting and verification, on finance architecture and on clarifying the next steps for the United Nations framework convention on climate change to make further progress towards a legally binding agreement. I would be happy to meet the hon. Lady and her team to talk this through in more detail.
T2. [23167] Andrew Stephenson (Pendle) (Con): I represent a constituency in the Pennines, where it already feels significantly colder than it does here in London. May I ask the Minister to explain what he is doing to ensure that we have adequate gas supplies at times of peak demand?
Charles Hendry: My hon. Friend raises a critical issue. We have already started to take action. I have licensed the Saltfleetby facility, which will give us a 15% increase in our gas storage, and the Deborah facility, which, if it gets the final investment decision, will double gas storage in this country. We shall also take steps in the Energy Security and Green Economy Bill this autumn to require greater security of supply from the energy companies.
Mr Speaker: Jessica Morden. Not here.
Malcolm Wicks (Croydon North) (Lab): Following this week's publication of the "World Energy Outlook" by the International Energy Agency, have the Minister and his Department made any assessment to see whether they agree with the view that we are facing a global glut of gas? Has he also analysed the connect, or disconnect, between that fact and the rising gas prices that our householders and businesses in the UK are facing?
Charles Hendry: I am grateful to the right hon. Gentleman, who was two of the best of the last batch of Energy Ministers. I had a meeting with the executive director of the International Energy Agency this week to talk about its work and about the energy outlook. We broadly share the analysis that we are moving into a period of widely available and relatively affordable gas, but the danger of that is that it could put off investment in gas development internationally, which could create shortages further down the line.
T3. [23168] David Mowat (Warrington South) (Con): Over the past couple of years, work has commenced in countries other than the UK on about 60 nuclear power stations, which will provide cheap, economically sustainable energy across the world. Does the Minister agree that this represents an opportunity for our own office for nuclear development, and will his Department support it in its endeavours to secure exports?
Charles Hendry: One of the advantages that we have is that, because we do not have a national champion, we have an independent regulator who is robust and understood to be very forceful and effective. We can encourage other countries to look at that as well. The work we are doing across the piece on nuclear decommissioning and development is also critical.
T8. [23173] Paul Blomfield (Sheffield Central) (Lab): The Minister has acknowledged the importance of private sector investment in the green investment bank. Will he outline to the House what practical steps are being taken to obtain such investment, and does he recognise that the delay in making a detailed statement about the bank's function and structure is causing uncertainty in the sector, which will frustrate that investment?
Gregory Barker: We are not rushing to get this right in a matter of weeks. We are talking at length and in great detail with all the major participants in the City of London, and we have great support-as witnessed by a letter to the Prime Minister from the chairman of the green investment bank commission this week-from the major institutions and investors who know that the important thing is that we get this right. Compared with the speed of the previous Government, we are moving like lightning.
T4. [23169] Philip Davies (Shipley) (Con): When the previous Government introduced the Climate Change Act 2008, they estimated the costs at £200 billion, which they revised a few months later to £400 billion, or £20,000 per household. What is the latest estimate of fully implementing the Act? Is there any advance on £400 billion?
Gregory Barker: These are big figures and it is difficult to get one's head around them. No new data are available, but I remind my hon. Friend that the cost of not acting is far greater than the cost of prudent early action. Lord Stern estimated that the cost would be between 5% and 10% of GDP. Moreover, this is a huge opportunity for UK plc.
Mr Speaker: Gareth Thomas. Not here.
Mr Dennis Skinner (Bolsover) (Lab): Does the Minister recall that a couple of months ago I raised with him the question of planning applications for the installing of wind turbines close to villages? I asked him if the Department had decided whether the turbines should be 5 km or 2 km away, and I had the impression that he would have a look at it. Has he made his mind up yet?
Charles Hendry: The hon. Gentleman has raised an important point on which there is strong feeling on both sides of the House. We do not believe that that sort of distance restriction is appropriate, although we know that a different approach is taken in Scotland. We think it important for local communities to own the decisions, which is why we have a localism agenda. We want such developments to have the active buy-in and support of local communities, and we are determined to deliver that.
T5. [23170] John Glen (Salisbury) (Con): Can the Minister assure me that he is working closely with his ministerial colleagues in the Department for Communities and Local Government to ensure that their approach to localism in the context of planning does not unreasonably restrict the diversification of farm businesses as they enthusiastically embrace small-scale renewable energy incentives?
Gregory Barker: Yes, I can assure my hon. Friend that there is a great deal of cross-departmental working in the coalition. There are plenty of opportunities for farmers, particularly in the sphere of anaerobic digestion, which we consider to be capable of huge expansion.
Mark Durkan (Foyle) (SDLP): As scoping work continues in relation to the green investment bank, can Ministers assure us that the bank will be geared to support projects in Northern Ireland? Can they assure us that the mistake involving the renewable obligation certificates regime will not be repeated, and that worthwhile projects will not be precluded because of their cross-border character when that is what makes the most economic and environmental sense?
Gregory Barker: The hon. Gentleman makes some very good points. I am pleased to tell him that the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Wealden (Charles Hendry), had an excellent meeting with members of the Northern Irish Government yesterday. We are determined that the whole United Kingdom should be able to share the benefits and the investment involved in the transition to a green, low-carbon economy.
T7. [23172] Sir Robert Smith (West Aberdeenshire and Kincardine) (LD): Smart meters have a great potential to benefit both consumers and the national interest in reducing our carbon emissions. What discussions are the Government having with industry and regulators to ensure that the vital spectrum is still available to ensure that the roll-out of smart metering extends to the whole United Kingdom, including difficult-to-reach rural areas?
Charles Hendry:
My hon. Friend has put his finger on an important point. A number of communication technologies may be appropriate in the context of smart metering. In July my Department, together with Ofgem, published proposals for the establishment of a national
smart meter communications organisation. Ofcom is also directly involved, and we are working closely with it to deliver exactly the sort of solution that my hon. Friend wants.
Kerry McCarthy (Bristol East) (Lab): As Ministers are no doubt aware, the Sustainable Livestock Bill will be before the House tomorrow. I appreciate that it is led by the Department for Environment, Food and Rural Affairs at the domestic level, but what is the Minister doing to ensure that the issue is on the agenda at the international climate change talks?
Gregory Barker: It is a DEFRA issue, and obviously we will be asking our DEFRA colleagues how they think we, when representing the United Kingdom at Cancun, can best present the wider green agenda. However, I will talk to my colleagues in DEFRA, and if the hon. Lady wishes to make particular representations to me, I shall be glad to receive them.
T10. [23175] Julian Sturdy (York Outer) (Con): Does the Minister believe that sourcing energy from waste is sustainable in the long term?
Gregory Barker: Absolutely. Recovering energy from waste can play a very important part in tackling climate change, improving energy security and creating green jobs. However, given the waste hierarchy, before we use waste for energy we must reduce it, and recover it in ways that have less damaging environmental impacts.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op): In a number of his earlier, longer answers, the Minister referred to the green deal and the holistic approach that is to be taken. May I ask what discussion he or his officials have had, or plan to have, with the Scottish Executive about how the regimes in Scotland will marry with the green deal?
Gregory Barker: My officials have had such meetings, and I hope to have meetings myself as we develop the detail of the green deal. It is important that such opportunities are available throughout the country.
Andrew George (St Ives) (LD): What can Ministers say to reassure the House that Government policy will result in the building up of UK industries in renewables and energy efficiency rather than simply our sucking in imports?
Gregory Barker: That is where skills come in. It is vital that we have the skills, and investment is therefore also vital. That is why the Government are investing in skills, science and innovation and the green investment bank. All three of them received substantial funding in the comprehensive spending review, and they are a key part of the mix. It is vital that we secure green jobs here in the UK and that we build up the supply chain not only for the green economy, but to help rebalance the UK's manufacturing industry
Thomas Docherty (Dunfermline and West Fife) (Lab): Given that Longannet power station is now the only bidder left in the carbon capture competition, will the Minister move quickly to make a decision on that, and will he come to my constituency and see the work first hand?
Charles Hendry: I should be delighted to come to the hon. Gentleman's constituency. This is potentially one of the most important projects in the country, and I am delighted that the spending review was able to give £1 billion to taking forward carbon capture. That is the greatest single contribution any Government anywhere in the world has made to a single plant, and I very much hope we can make the Longannet project work. I should be very pleased to visit it with the hon. Gentleman.
Mr Peter Bone (Wellingborough) (Con): This country has a liberalised energy market, but the previous Administration failed to persuade some of our European Union colleagues to liberalise their energy markets. What progress is this Government making?
Charles Hendry: Progress is indeed being made, such as in unbundling and separating the vertical integration of some of the larger European countries. They are also making particular progress in energy security, in terms of the development of gas and electricity connections. That will play a very useful role by greatly enhancing our security in times of international stress and pressure.
Mr Iain Wright (Hartlepool) (Lab): In response to a question from my hon. Friend the Member for Stockton North (Alex Cunningham), the Minister acknowledged the huge potential of Teesside and the north-east in the manufacture of renewable energy. That requires Government support, yet business support is being cut, particularly in the regions. Given the enormous potential of Hartlepool, Teesside and the north-east, what can the Minister do to make sure we realise that potential?
Charles Hendry: It is a tradition of these exchanges that I discuss when I will visit the hon. Gentleman's constituency, and I shall do so before the next exchange. I will be there in early December, so that I can better understand the massive contribution businesses in his constituency and thereabouts can make in respect of our energy security and the development of low-carbon technologies in this country.
Jo Swinson (East Dunbartonshire) (LD): The Government's current target is for 15% of energy to be produced from renewable sources by 2020. If the measures we are taking to encourage renewables prove successful, will the Government consider being more ambitious and revise that target upwards?
Charles Hendry: We have asked the Committee on Climate Change to look at whether that level of ambition should be raised. We are also examining whether we can do more through international co-operation: have some areas of renewable energy been locked out because they cannot be used for other countries' domestic markets, so can we go further by looking at a "whole islands" approach around the British isles to maximise the resources that are available?
Ian Lavery (Wansbeck) (Lab): Will the Minister update the House on the progress, or otherwise, being made in the development of the carbon capture and storage projects involving clean coal technology here in the UK?
Charles Hendry: As I have said, the spending review settlement allocated £1 billion to project 1. We will then take forward three further projects, and we have now announced that that could be open to gas as well. We are looking at three further projects because we believe Britain should be leading the world in this technology, and we are absolutely determined that it will.
Rehman Chishti (Gillingham and Rainham) (Con): The generation tariff payment is not the consideration of any supplier and is therefore outside the scope of VAT. If a commercial company wishes to assign its income to a third party in exchange for the supply and installation of solar panels, will the funder of the panels be able to claim back the input VAT?
Gregory Barker: I apologise to my hon. Friend for not quite catching all of his question, but I think it relates to solar panels and VAT. I should be very happy to look at the issue, and if he writes to me, I will examine it in detail.
Business of the House
11.34 am
Hilary Benn (Leeds Central) (Lab): May I ask the Leader of the House to give us the forthcoming business?
The Leader of the House of Commons (Sir George Young): The business for the week commencing 15 November will include:
Monday 15 November-Second Reading of the Terrorist Asset-Freezing Etc. Bill [ Lords], followed by a motion to approve a money resolution on the Sports Grounds Safety Authority Bill. In addition, my right hon. Friend the Prime Minister plans to make a statement on the G20.
Tuesday 16 November-Consideration in Committee of the Fixed-term Parliaments Bill (Day 1).
Wednesday 17 November-Opposition Day [6th Allotted Day]. In the first part there will be a debate on health, followed by a debate on education. The precise titles are to be confirmed. Both debates will arise on an Opposition motion. That will be followed by a motion to approve the draft Local Elections (Northern Ireland) Order 2010 and the draft Northern Ireland Assembly (Elections) (Amendment) Order 2010.
Thursday 18 November-A debate on immigration. The subject for this debate was nominated by the Backbench Business Committee.
Friday 19 November-Private Members' Bills.
The provisional business for the week commencing 22 November will include:
Monday 22 November-Remaining stages of the Savings Accounts and Health in Pregnancy Grant Bill.
Tuesday 23 November-Second Reading of the National Insurance Contributions Bill.
Wednesday 24 November-Consideration in Committee of the Fixed-term Parliaments Bill (Day 2), followed by a motion to approve a statutory instrument relating to the draft Scottish Parliament (Elections etc.) Order 2010.
Thursday 25 November-Remaining stages of the Local Government Bill [ Lords].
I should also like to inform the House that the business in Westminster Hall for 25 November will be: impact of the comprehensive spending review on the Department for Transport.
Hilary Benn: I thank the Leader of the House for his statement.
As we have just observed the 11th hour of the 11th day of the 11th month, I am sure all of us present would wish to honour and remember those, including former Members and staff of this House, who have given their lives in the service of our country.
Next Tuesday we will consider the Fixed-term Parliaments Bill in Committee on the Floor of the House. Can the Leader of the House confirm that there will be injury time if there are any urgent questions or statements ? Also next week, we understand that the Deputy Prime Minister will make a speech about constitutional reform. Can we have a statement on whether this will cover restoring trust in politics, given the enormous sense of betrayal felt by many people who voted Lib Dem last May?
Before the election the Lib Dems made everything of their pledge to vote against the lifting of the cap on tuition fees, but after the election they could not dump it fast enough. This morning, we hear that the Deputy Prime Minister has said that he
"should have been more careful"
about signing the pledge. Anyone hearing that would think that some dodgy bloke had come up to him in the street and badgered him into signing it, whereas in fact the Deputy Prime Minister invented the pledge, was photographed holding the pledge, and even produced a video of himself making the pledge. He knew exactly what he was doing. Can the Leader of the House give us an assurance that there will be no vote on any orders to lift the cap on fees before the promised White Paper has been published?
On the cuts in funding for higher education, I asked the Leader of the House last week whether the statement made by the Minister for Further Education, Skills and Lifelong Learning that the Government
"will continue to support the arts through the subsidy for teaching in universities"-[ Official Report, 3 November 2010; Vol. 517, c. 315WH.]
was accurate or not, given that it did not square with what his boss had said. Yesterday, when asked specifically about this, the Deputy Prime Minister said:
"The statement we made was very clear."-[ Official Report, 10 November 2010; Vol. 518, c. 285.]
That did not really help the House, because our problem is that two different statements of policy have been given by two different Ministers in the same Department. I am sure the Leader of the House has looked carefully into this since last week, so can we now have a definitive statement to clear up this mess?
On school sport, 20 years ago the previous Conservative Government, of whom the Leader of the House was a member, took great pride in selling off school playing fields. Under the Labour Government, by contrast, there was an increase in the time devoted to sport in schools. Given the importance that those on both sides of the House place on the Olympics and their legacy, can we have a statement on how the Government plan to increase participation in sport by young people when they are getting rid of the grant to the Youth Sport Trust?
I come now to the talk of cuts, the need for everyone to tighten their belts and the civil service recruitment freeze-in other words, the big picture. Following the Leader of the House's answer last week on the Prime Minister's personal photographer, who it turns out did not make the trip to China-it is true; he has been left behind, with the Foreign Secretary-it is reported that among those who have now also been put on the civil service payroll by the Prime Minister are a former Conservative candidate, a former fashion PR, and the former head of brand communications, whatever that is, at the Tory party. May we have a statement on whether the reports of those appointments are true?
Finally, we have all admired the painfully honest admission by the Children's Minister, the Under-Secretary of State for Education, the hon. Member for East Worthing and Shoreham (Tim Loughton), that
"most people don't know what the Big Society really means, least of all the unfortunate ministers who have to articulate it."
In complete contrast, is the Leader of the House aware that the jargon-ridden statement made by the unfortunate Minister of State, Cabinet Office on Monday caused great consternation on both sides of the House? I know that the Leader of the House is a compassionate man, so can he put us all out of our misery, stand up at the Dispatch Box and-keeping an absolutely straight face-explain to the House: what on earth is a horizon shift?
Sir George Young: May I begin by endorsing what the right hon. Gentleman just said? You, Mr Speaker, and many Members were in the House at 11 o'clock, when we remembered those who had died. In the forefront of our minds were the recent casualties who sacrificed their lives for the security of our nation. We must remember them, their friends and their families. Over the weekend many of us will attend Remembrance day services in our constituencies, showing our solidarity with our armed forces and our sympathy for those who have lost their lives and been injured.
Now let me turn to the issue of trust in politics. I gently remind the right hon. Gentleman that his party said that it would not introduce tuition fees or top-up fees. It then proceeded to do both, so I am not sure that he is in a very strong moral position to lecture other people on what their policies should be. As he said, we are planning a debate on the Browne report before we vote on the order. I shall make inquiries about the timing of the White Paper to which he referred and get back to him.
There will be an opportunity the next time Business, Innovation and Skills questions come round for the right hon. Gentleman and his right hon. and hon. Friends to pursue the separate issues that he raised about the STEM subjects-science, technology, engineering and maths-and support for the arts.
On the question of selling off sports grounds and time spent on sport, I am not sure that the right hon. Gentleman was comparing like with like. If he thinks about it, those are not totally comparable activities. I know that my hon. Friend the Minister for Sport and the Olympics is very anxious that we should capitalise on the 2012 Olympics in order to engage young people in sport, and I am sure that at the next Culture, Media and Sport questions there will be an opportunity to press him on that topic.
Finally, on the subject of the photographer, the right hon. Gentleman may have seen what the hon. Member for Great Grimsby (Austin Mitchell) said in his blog:
"It's not only petty to attack Dave for putting his personal photographer on the payroll. It's daft...We need not only a PM photographer but an opposition photographer, a Downing Street photographer and a Parliamentary Photographer."
The previous Government spent more than half a billion pounds on communications and PR, and we are cutting that by two thirds. The people to whom the right hon. Member for Leeds Central (Hilary Benn) referred are brought in to do specific tasks, when it would be more expensive to hire them on a freelance basis day by day.
The big society means volunteers and their local community complementing what is done by central Government.
Mr Speaker: Order. As usual, a very large number of hon. and right hon. Members are seeking to catch my eye. We have two further important statements to follow, and a Backbench Business Committee debate that is heavily subscribed, so if I am to accommodate as many people as possible, brevity from those on the Back Benches and the Front Bench alike is required.
Nadine Dorries (Mid Bedfordshire) (Con): This House needs an emergency debate. What we saw happen yesterday was deplorable. We saw National Union of Students officials egging the crowd on, although today Aaron Porter, the president of the NUS, is attempting to remove himself from the situation. We need to know whether the police were incompetent or badly briefed. Yesterday somebody could very easily have died. The behaviour of the NUS officials and stewards on the ground was deplorable, and we need a debate in the Chamber to discuss that matter.
Sir George Young: I entirely share the views that my hon. Friend has just expressed. She will know that after the business statement there will be an oral statement by the Minister for Policing and Criminal Justice, who will be in a better position than I am to respond to the points that she has just made.
Sir Gerald Kaufman (Manchester, Gorton) (Lab): Has the right hon. Gentleman seen early-day motion 967 in my name and those of several other hon. Members, entitled "Inspector Damian O'Reilly, Community Police Officer of the Year 2010"?
[That this House congratulates Inspector Damian O'Reilly of Greater Manchester Police on his award as nationwide winner of Community Police Officer of the Year; and believes that this richly-deserved recognition is a tribute not only to the dedicated service of Inspector O'Reilly in providing effective policing and preserving law and order but also to the work of many other members of Greater Manchester Police in serving the community.]
Will he join me and other hon. Members in congratulating Inspector O'Reilly on the superb work he does in policing, together with those who work with him in my constituency? Will he also join me in congratulating all other Greater Manchester police officers who work for their community?
Sir George Young: I congratulate the right hon. Gentleman on his early-day motion. I have no hesitation whatever in supporting it, and in embracing within it the additional officers to whom he referred.
Mr Speaker, I forgot to reply to the earlier question about the Fixed-term Parliaments Bill and injury time. The Government do not intend to add injury time should there be a statement on that day.
Mr Greg Knight (East Yorkshire) (Con): May we have a debate on food labelling? Is my right hon. Friend aware that imported meat packaged here can be labelled and sold as British, and that chicken injected with salt, water and, of all things, beef protein can still be marketed as "chicken"? Should we not seek to achieve more honesty in food labelling?
Sir George Young:
I entirely agree with my right hon. Friend. It should be made absolutely clear which food is genuinely produced in the UK and which is processed in
the UK having been reared somewhere else. I shall pursue his concerns with my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs to see what action the Government are taking to secure the ambitions that my right hon. Friend the Member for East Yorkshire (Mr Knight) and I share.
Mr Kevin Barron (Rother Valley) (Lab): The Leader of the House has added his name to two motions on the Order Paper laid by members of the Select Committee on Standards and Privileges regarding two recently published reports. When will those motions be debated on the Floor of the House, thereby allowing us to take a decision on them?
Sir George Young: I am grateful to the right hon. Gentleman and his Committee for producing those two reports. I envisage that those motions will be on the operative part of the Order Paper next week. The House can then decide whether to let them through on the nod or to debate them.
Bob Russell (Colchester) (LD): Last month the shadow Leader of the House asked for a debate on the Independent Parliamentary Standards Authority, and was told that the Opposition could table it as the subject of an Opposition day debate. IPSA is of concern to MPs throughout the House: it is obstructing MPs in their duties, and the equivalent of 100 full-time jobs are now dedicated simply to MPs and their staff completing forms. Is it not time that the Government initiated a debate on this subject? The Leader of the House is fully aware of what is going on.
Sir George Young: I am grateful to the hon. Gentleman for articulating concerns that are shared by hon. Members on both sides of the House. The Government have no plans to allocate a day to debating IPSA, but it is open to him to go along at 4 o'clock and put his case for a debate on IPSA, as I think one of my hon. Friends has already done. I shall see the interim chief executive of IPSA later today, and I shall pass on the hon. Gentleman's concerns to him. It is the objective of IPSA to support Members of Parliament in the performance- [ Interruption. ] . It is the duty of IPSA to support Members of Parliament in the performance of their duties, and not to obstruct them.
Valerie Vaz (Walsall South) (Lab): My virtual constituent Richard Prescott, a lecturer in Italy, has made a claim against the university of Bergamo that started in 1994. The university is appealing the case, although the European Court of Justice has said that Italy violated the law seven times. Will the Leader of the House make urgent representations to the Minister for Europe to ensure that recognition of the rights of British citizens is speeded up?
Sir George Young: I am sorry to hear what has happened to the hon. Lady's constituent. I shall pass on her concerns to the Minister for Europe, but it strikes me that she might usefully apply for an Adjournment debate so that her concerns can be developed at greater length.
Robert Halfon (Harlow) (Con): Has my right hon. Friend seen early-day motion 971, congratulating Harlow British Legion and Harlow council on the special memorial that they have built as a tribute to fallen soldiers who have died in action since the second world war?
[That this House notes the recent memorial service at the Netteswell Memorial Garden in School Lane, Harlow, to mark the building of the new memorial to fallen soldiers who have died in action since the Second World War; believes that it is a tribute to Harlow British Legion and Harlow Council that they ensured the memorial was built; concludes that for too long at remembrance services only the names of those in action before or in the Second World War have been read out; welcomes the fact that in future, all those who have passed away since 1945 will be remembered, including those who died serving recently in Iraq and Afghanistan; and therefore commemorates the day of remembrance for the UK's brave armed forces, which is also a day of dignity for Harlow.]
Will he join me in congratulating Harlow British Legion and Harlow council and find time for a debate to commemorate servicemen and women who have died since 1945, particularly in Iraq and Afghanistan?
Sir George Young: I am grateful to my hon. Friend, and of course I congratulate Harlow British Legion and Harlow council on building a special memorial to the fallen. It is particularly appropriate that my hon. Friend should have raised that particular subject today. There will be opportunities in the future-certainly between now and Christmas-to debate issues concerning our armed forces, when I hope my hon. Friend will have an opportunity to develop his case.
Mr Tom Watson (West Bromwich East) (Lab): A debate on the Freedom of Information Act 2000 would allow me to return to the subject of the ministerial wine cellar. Foreign Office Ministers, in refusing my freedom of information appeal, have asked the deputy director of protocol and assistant marshal of the diplomatic corps to write to me to say that she considers that
"the public interest is best served by withholding the details of the stock list".
May I ask the Leader of the House: what is he hiding in the cellar?
Sir George Young: Neither myself nor my hon. Friend the Deputy Leader of the House has had an opportunity to taste the products of the Government's wine cellar. I have to say that the hon. Gentleman and his hon. Friends are probably better placed than we are to know exactly how much was invested in wine, what the vintages were-and, indeed, how much wine was consumed.
David Tredinnick (Bosworth) (Con): Further to his answer to me on 14 October, will the Leader of the House update the House on his discussions with the Home Secretary about sorting out the problem in Parliament square? Will specific provision be made in the forthcoming Home Office Bill to ban tents there?
Sir George Young:
I admire my hon. Friend for his persistence. He may know that there was an exchange in the House of Lords earlier this week when this very issue was touched on. The Government's view is clear: it is not acceptable for people permanently to take over a
site of national interest. We support the action taken by the Mayor to evict the democracy village from the Parliament square garden. We are working closely with Westminster city council, the Greater London authority and the police to ensure that the law supports the right to peaceful protest, but we also support the rights of others to enjoy our public spaces. As my hon. Friend said, we are considering introducing legislation to address this issue; if we do not get it spot-on first time, I am sure that we will be interested to consider any amendments that he might table.
Mr Dave Watts (St Helens North) (Lab): Given that this week's "Dispatches" programme highlighted the fact that workers were being paid £2.50 an hour and that health and safety as well as immigration rules were being flouted by dozens of companies, may we have an urgent debate on what action the Government are going to take to deal with that national scandal?
Sir George Young: Of course the health and safety regulations should be observed, as should those on the national minimum wage. May I suggest that the hon. Gentleman provide detailed examples to Ministers in the Department for Work and Pensions, who would be more than happy to pursue them?
Mark Lancaster (Milton Keynes North) (Con): May we have a debate on support for our veterans? At 11 am this morning I joined many fellow veterans in attending the Field of Remembrance service in Westminster abbey. Unfortunately, despite the best efforts of the Royal British Legion, it is clear that this service is now so popular that we simply could not accommodate several hundred veterans who had travelled many miles to attend it. Will the Government work with the Royal British Legion and endeavour to make sure that in future years they can attend?
Sir George Young: I am sorry to hear that some who travelled to Westminster abbey were unable to attend the service. Of course I will be more than happy to take this up with the Church authorities, the Royal British Legion and others to make sure that we do not have a similar problem next year.
Jim Sheridan (Paisley and Renfrewshire North) (Lab): Can the Leader of the House arrange for the Deputy Prime Minister to come before the House to explain why he is holding a referendum on the alternative vote system on the same day as elections for the Scottish Parliament? I say that in the light of today's news that the Electoral Commission in Scotland is expressing deep concern about lack of staff and resources on that day. We do not want those serious elections to be hijacked.
Sir George Young: This House has just spent five days in Committee and two days on Report on the Parliamentary Voting System and Constituencies Bill. The House has had adequate opportunities to debate all those issues. If the hon. Gentleman has any friends in the other place-where the Bill is now-he might be able to pursue his concerns through them there.
Greg Mulholland (Leeds North West) (LD):
I commend Government Whips for allowing me to serve on the Joint Committee on Statutory Instruments next week when it considers making changes to legislation on
houses in multiple occupation, knowing that I will vote against the Government. When will all the MPs representing seats like mine have the chance to debate this very important issue?
Sir George Young: I must tell my hon. Friend that that may be the last time the Whips put him on such a Committee-but I understand his point. Perhaps he could either put in for an Adjournment debate or approach the Backbench Business Committee in order to have a serious debate on HMOs.
Jim Fitzpatrick (Poplar and Limehouse) (Lab): Can the Leader of the House advise us whether he has had any indication from his right hon. and hon. Friends in the Department for Environment, Food and Rural Affairs about when they will bring forward their conclusions and recommendations following the consultation on dangerous dogs that we launched in March this year? Are those recommendations likely to include compulsory micro-chipping of puppies?
Sir George Young: I am afraid that I do not have at my fingertips the date of that response, but I will raise the issue with my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs and see whether we can provide an answer on when the Government's position will be made clear.
Julian Smith (Skipton and Ripon) (Con): Businesses in the market town of Masham in my constituency are suffering from the removal by the Highways Agency of all six signs directing travellers off the upgraded A1. Can we have a debate about Highways Agency guidance on signs, and how it must take greater account of the need to promote Britain's stunning market towns?
Sir George Young: I will raise that particular issue with the Secretary of State for Transport. I know from my own constituency that many market towns depend on such signs to advertise their attractions, and that there can be a marked fall-off in visitor traffic if they disappear. I will pursue the matter with my right hon. Friend and ask him to write to my hon. Friend.
Thomas Docherty (Dunfermline and West Fife) (Lab): On 21 October I raised with the Leader of the House the issue of children having shotgun licences. I mentioned that statistics showed that 26 10-year-olds and 74 11-year-olds had such licences. The right hon. Gentleman promised that this would be fed into the forthcoming debate on shotgun licences and the report on the Cumbrian shootings. Can the Leader of the House tell us when we will have an opportunity to discuss this issue?
Sir George Young: I am grateful to the hon. Gentleman for pursuing that issue. We have some of the toughest firearms laws in the world, but we are prepared to review and change them if necessary. What I said last time was that we need to await the report of the Home Affairs Select Committee, which is looking at firearms legislation. When we have that report, we will honour the commitment I gave before the summer recess and find Government time in which to debate our gun laws.
Adam Afriyie (Windsor) (Con):
The comprehensive spending review has cut costs right across Government Departments, and it seems to me that Parliament should not be immune from cost cutting. Does my right hon.
Friend agree that we need a debate on reducing the cost of administration by IPSA? If so, should the debate be in Government time or in Backbench Business Committee time?
Sir George Young: The second half of the question is easy: it should be in Backbench Business Committee time. On the first part, the House of Commons Commission has made it clear that over the period of the spending review we should reduce our costs by at least 17.5%. The House will have seen a document circulated by the Clerk of the House, outlining some possible economies-although that does not cover the IPSA budget, which comes under a separate heading.
Mr Nick Raynsford (Greenwich and Woolwich) (Lab): The Leader of the House will be aware that yesterday in the High Court the Secretary of State for Communities and Local Government was found to have acted unlawfully in revoking regional spatial strategies. Rather than come to this House to apologise for his unlawful actions, for the damage he has caused to the housing industry, for confusing local authorities and for the cost to the public purse, the Secretary of State simply slipped out a written statement, misleadingly claiming that nothing much had changed. In reality, everything has changed: regional spatial strategies are back in force and, as the judgment makes clear, they might play a decisive role in determining any planning application, as local authorities must have regard to them. Can we have an urgent debate in Government time so that the Secretary of State can account for his actions and the restored force of regional spatial strategies can be affirmed?
Sir George Young: The right hon. Gentleman will have seen the written ministerial statement, which said:
"While respecting the court's decision, this ruling changes very little".
It went on to say that the chief planner had written to all the local planning authorities, confirming that they should
"have regard to this material consideration in any decisions they are currently taking".-[ Official Report, 10 November 2010; Vol. 518, c. 16WS.]
The right hon. Gentleman will also know that later this month we will introduce the localism Bill, which will abolish regional strategies.
Jo Swinson (East Dunbartonshire) (LD): Tomorrow, the House will consider the excellent Sustainable Livestock Bill, but many MPs will be forced to choose between doing constituency work such as school visits, that can be done only on Fridays, and coming to the House to avoid the frustration of seeing a good Bill talked out by one or two MPs who happen to oppose it. On 15 June the Leader of the House said:
"The Procedure Committee ought to consider it"-
the issue of private Members' Bills-
"in one of its first inquiries"-[ Official Report, 15 June 2010; Vol. 511, c. 785.]
but nothing has happened. Is there anything that he can do to help the House to make progress on that reform?
Sir George Young: I understand the hon. Lady's dilemma. She will know that the Procedure Committee has announced that it will conduct an inquiry into the calendar, and it is within the remit of that inquiry to look at Fridays, private Members' Bills and whether they might be relocated to another part of the week. I therefore suggest that she pursue her case with my right hon. Friend the Member for East Yorkshire (Mr Knight), who heard what she said. It can be subsumed within the inquiry into sitting hours.
Ian Lucas (Wrexham) (Lab): Could we have an urgent debate about the future of police community support officers? Those widely respected individuals work throughout the country to support policing in their local communities, but we now hear stories of police authorities considering making their entire staff of PCSOs redundant. The Government have decided to cut police spending, so what will they do to allow us time to discuss that very important matter?
Sir George Young: Such decisions are essentially taken by local chief constables, but it is open to the hon. Gentleman to apply for a debate in Westminster Hall, where he can share with others his concern about the future of PCSOs. The Government's position is clear: we believe that economies can be made without affecting front-line policing.
Mr Speaker: Order. The Leader of the House's brevity now needs to be matched by that of Back Benchers.
Mr David Nuttall (Bury North) (Con): Will the Leader of the House consider instituting an annual debate on the military covenant, which, may I suggest, could be held as near as possible to Remembrance day each year?
Sir George Young: I am grateful to my hon. Friend. He will have seen the coalition's programme for government document, which has a long paragraph about the military covenant. We are considering how best to rebuild and rewrite the covenant, and my hon. Friend has made an interesting suggestion.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op): The Leader of the House will know that the whole concept of the big society is supposed to be based on volunteers, voluntarism, the third sector and charitable intervention. Could we have an early debate about the fact that, only six months into this new Government, the sources of funding for the third sector right across the piece have either been frozen or disappeared? Such activity is essential to any society. What is he going to do about it?
Sir George Young: I understand the hon. Gentleman's point; voluntary organisations face the same pressures as many other organisations in accessing funds, but not all voluntary work involves expenditure. Many people give their time for nothing, and I hope that the voluntary sector can respond to the challenges in the same way as everyone else is having to respond.
Peter Bottomley (Worthing West) (Con):
Just after 1 o'clock on Millbank yesterday, I saw how some student leaders and some students reacted to the winding-up of
people at the front of the tuition fees demonstration. It brought to mind watching 14 people crushed to death in El Salvador, and seeing 39 dead bodies at the Heysel stadium when I was out there. Can we have a debate about the responsibilities of the leaders of demonstrations, so that they know that, if large numbers of people are pushed together, with the people at the back pushing forward and with riots at the front, there will be fatalities?
Sir George Young: My hon. Friend makes a good point, and fortunately there were no really serious injuries yesterday, but there could have been. May I suggest that he raises his concern in a few moments' time with the Minister for Policing and Criminal Justice who is to make a statement about what happened yesterday?
Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab): Cumbernauld house is a magnificent piece of 18th century William Adam architecture situated in the heart of Cumbernauld new town, and the active local citizenry wishes to purchase it for the community and the long term. Can we have a debate about how the big society can help with such asset transfers?
Sir George Young: If there is a role for any Minister to play in agreeing to that transfer, I shall draw it to the attention of whichever hon. Friend it might be, but I suggest that the hon. Gentleman write to the appropriate Minister in order to pursue his case.
Andrew George (St Ives) (LD): Mrs Dalia Nield, an experienced and respected surgeon, has apparently been threatened by Rodial Ltd with a libel suit because she told a daily newspaper that Rodial's £125 "boob job in a bottle" cream was "highly unlikely" to work, "potentially dangerous" and might even harm the skin and the breast. Will the Leader of the House commit to libel reform in this Session? Libel threats against scientists and doctors, such as Mrs Nield, Simon Singh and Dr Peter Wilmshurst, have the effect of suppressing the advice of experts and doctors.
Sir George Young: I am grateful to my hon. Friend, who has raised a really serious issue. The coalition Government intend to introduce a defamation Bill during this Session.
Steve McCabe (Birmingham, Selly Oak) (Lab): Can we have a debate about the House's attitude to the barbaric policy of ritual stoning to death in Iran, and can we use that debate to hear the Leader of the House's response to the call by Birmingham Conservative councillor, Gareth Compton, for the stoning to death of the journalist Yasmin Alibhai-Brown? Will such disgraceful behaviour be tolerated?
Sir George Young: Stoning to death is a barbarous form of punishment, which the Government and I am sure all Members deplore. I hope that no elected person will threaten any member of our society with that sort of punishment.
Philip Davies (Shipley) (Con):
Warming to the theme of the question on food labelling from my right hon. Friend the Member for East Yorkshire (Mr Knight), I wonder whether the Leader of the House is aware that
many retailers sell halal food to their customers without telling them. Further to the request by my right hon. Friend for a debate about food labelling, will the Leader of the House add that issue to any such discussion?
Sir George Young: Any debate that we have about food labelling will be broad enough to encompass the specific issue that my hon. Friend has just raised. It strikes me as a suitable subject for a debate in Westminster Hall.
Kevin Brennan (Cardiff West) (Lab): We still need a debate about civil service recruitment. I have received a reply from the Cabinet Secretary, after raising that issue with the Leader of the House a couple of weeks ago, and the response makes it clear that the coalition Government have been trumpeting the fact that they have recruited fewer special advisers, while recruiting their cronies on two-year civil service contracts and sacking permanent civil servants. Is that not just immoral?
Sir George Young: No, what we are doing is exactly what the previous Government did. There are some 90 people employed on short-term contracts in the Cabinet Office, and more than 50 of those were put in place by the previous Government. What we are not doing, which the previous Government also did, is putting civil servants under the line management of special advisers such as Jonathan Powell and Alastair Campbell-something that is now outlawed under the Constitutional Reform and Governance Act 2010.
Mr Peter Bone (Wellingborough) (Con): Over the next five years our contributions to the European Union will increase by a staggering £17.5 billion. At the same time, we will be building aircraft carriers with no planes because of defence cuts. Can we have a debate entitled, "Subsidising Belgium, Luxembourg, Malta, Spain and Portugal at a time when we are making defence cuts is bonkers"?
Sir George Young: My hon. Friend will see that the next business is the presentation of the European Union Bill. When we reach its Second Reading, he may be able to make his contribution and get a robust response from one of my right hon. Friends.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op): Can we have an urgent statement from the Government following their decision yesterday to overrule the advice of Ofcom and fail to grant STV independent production status? It flies in the face of the advice that they were given, and it represents the Secretary of State for Scotland's abject failure either to stand up for or to represent the interests of an iconic and well-regarded broadcaster in Scotland, whose very future is now in doubt.
Sir George Young: Of course I understand the hon. Gentleman's concern. I shall raise with my right hon. Friend the Secretary of State for Scotland the point that he has just made and ensure that my right hon. Friend writes to him very soon.
Andrew Stephenson (Pendle) (Con):
Following the news in the past 48 hours from China that the Prime Minister's trade mission has helped to secure a £750 million
deal between Rolls-Royce, the biggest employer in my constituency, and China Eastern Airlines, can the Leader of the House tell us whether there will be an oral statement on the success of that trade mission?
Sir George Young: My right hon. Friend the Prime Minister will make a statement on the G20 on Monday and of course will be available on Wednesday for Prime Minister's questions. He did take the biggest ever UK ministerial delegation to China, and I am delighted to hear of the order that has been secured, which will provide employment for my hon. Friend's constituents.
Ian Lavery (Wansbeck) (Lab): Another young life was tragically lost in my constituency last week owing to knife crime. Can the Leader of the House tell me what his Government are doing to tackle such heinous crime, and will he make a statement?
Sir George Young: The Ministry of Justice will shortly publish a paper on sentencing policy, and that may be the right forum for the hon. Gentleman to pursue his concerns about victims of knife crime.
Mr Philip Hollobone (Kettering) (Con): The European Union Bill will be presented after business questions. Despite the fact that, for some strange reason, its name has been changed from the "Sovereignty Bill", will my right hon. Friend ensure that there is time for the European Scrutiny Committee to give the Bill its necessary pre-legislative scrutiny, and that there is no timetable motion for the Bill's proceedings on the Floor of the House?
Sir George Young: This is an important constitutional Bill that I would anticipate being taken on the Floor of the House. My hon. Friend the Member for Stone (Mr Cash), who chairs the European Scrutiny Committee, has just handed me a letter asking for more time before we reach Second Reading so that his Committee can conduct an inquiry. I will of course reflect on that letter, which has only just reached me, and respond in due course.
Mr Gerry Sutcliffe (Bradford South) (Lab): Will the Leader of the House have a word with the Home Secretary and tell her that it is unacceptable that she has not answered the questions put to her by my right hon. Friend the shadow Home Secretary during her statement on aviation security on 1 November? She said that she would write to him, but she has not done so, and the answers to some of those questions are now out there in the media. Is that not disrespectful to the House?
Sir George Young: I understand that that matter was raised on a point of order yesterday, and I know that inquiries were being made of the Home Office in order to make progress. I will pursue those inquiries with added urgency today.
Mr William Cash (Stone) (Con):
The European Union Bill, about which I wrote to the Leader of the House earlier today, is a Bill of immense constitutional importance. We need to have adequate time to consider it, not least because the Minister for Europe has said that he will
give one month's notice, which is wholly inadequate. We will be taking evidence, on an even-handed basis, from those on all sides of the argument and from the public. I think that the public would be extremely concerned if they knew that adequate time for such consideration was not given, particularly in view of what my right hon. Friend has just said about the Bill's consideration on the Floor of the House, which means that it will be the only opportunity for people to have a proper examination of this vital issue.
Sir George Young: As I said a moment ago, my hon. Friend has just handed me a letter that makes the case for more time so that his Committee can examine the Bill. I will of course reflect on the contents of what he has said. I need to consult my colleagues, and I will write to him as soon as we have reached a decision.
John Cryer (Leyton and Wanstead) (Lab): Has the Leader of the House seen early-day motion 976?
[That this House notes with concern the removal of a fire engine from Leyton Fire Station by the London Fire and Emergency Planning Authority (LFEPA) during the recent industrial dispute; further notes that the pump has not been returned to Leyton and remains in the hands of AssetCo; and calls on the LFEPA to return the pump to Leyton immediately.]
The EDM refers to Brian Coleman, the spectacularly charmless leader of the London fire authority, who has nicked 27 fire engines from across London and stuck them somewhere near Ruislip. I am not making this up. That is not only wrong but probably illegal. Can the Home Secretary come to the House and make a statement about this, because at least she is probably in a position to find out what the hell is going on?
Sir George Young: I understand the hon. Gentleman's point, and I have seen the early-day motion. I think that we would expect him to urge the Fire Brigades Union to call off its strike so that that sort of precautionary action was no longer necessary.
Albert Owen (Ynys Môn) (Lab): Now that the Deputy Prime Minister should be regretting turning his back on making the pledge on tuition fees, is it not appropriate to have a debate on the recall mechanism for MPs, on which he was very keen? That would allow students and communities across the United Kingdom to pass judgment on the Deputy Prime Minister.
Sir George Young: The Government will be bringing forward a Bill to permit the recall of Members of Parliament for serious wrongdoing, but I do not envisage that it will cover the activities that the hon. Gentleman touched on. There is a coalition commitment to having legislation on the recall of MPs.
Mr Iain Wright (Hartlepool) (Lab): Fishing remains an important part of this country's economy, yet the operators of some under-10 metre boats in my constituency are struggling financially. It is traditional, around this time of year, to have the annual fishing debate on the Floor of the House prior to the setting of quotas. Can the Leader of the House confirm that that will happen this year?
Sir George Young: The hon. Gentleman will know that under the recommendations of the Wright-no relation-Committee, responsibility for finding time for those sorts of debates has been transferred to the Backbench Business Committee. If he wants the annual debate on fishing and fisheries, he needs to make his case to the Chair of that Committee, the hon. Member for North East Derbyshire (Natascha Engel), who is sitting two places away from him, because responsibility for finding the time now rests with her.
Huw Irranca-Davies (Ogmore) (Lab): The House was expecting today a statement on rail electrification to south Wales. Can the Leader of the House tell us what has happened to that statement and when we will we see it? Is there any truth in the allegation that the delay in the statement is because rail electrification to Swansea is now going to stop at Bristol?
Sir George Young: I do not think that there is any substance whatsoever in that allegation. My right hon. Friend the Secretary of State for Transport made a statement on roads a few weeks ago in which he said that there would be a statement on rail investment, and there will be such a statement shortly.
Natascha Engel (North East Derbyshire) (Lab): Will the Leader of the House be in his place at the beginning of Back-Bench business today in order to hear, for the very first time, the launch of the Select Committee Chair's report by my right hon. Friend the Member for Barking (Margaret Hodge), the Chair of the Public Accounts Committee? Furthermore, will he join the Backbench Business Committee in helping us to develop a procedure whereby we can ensure that whenever Select Committee Chairs want to launch a report, they do so in the Chamber as a regular feature?
Sir George Young: I am delighted to see this item on the Order Paper. When I was in opposition, I advocated breaking the monopoly that Ministers have on making statements and allowing Select Committee Chairmen to present their reports on the Floor of the House. I am delighted to see that that recommendation is being carried forward and that there will be such a launch of a report later today. I am writing to the hon. Lady to ensure that we get the template and the Standing Orders right so that this exciting experiment can go from strength to strength.
Mr Speaker: I am grateful to the Leader of the House and to colleagues for their succinctness, which enabled everyone who wanted to contribute to have the chance to do so.
Welfare Reform
12.15 pm
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith): With permission, Mr Speaker, I should like to make a statement on welfare reform. Let me say in advance of that that I have tried to give the shadow Secretary of State, the right hon. Member for Paisley and Renfrewshire South (Mr Alexander), as much time on this as possible, and I am open to more questions. I thank him for his co-operation in that.
In this House in October, I set out our resolve to secure a welfare system that I said should be fit for the 21st century, where work always pays and is seen to pay by those who are engaged in it. Following consultation since then, a broad positive consensus has-I think-emerged. That consultation ranged very widely, from Citizens Advice to the Institute for Fiscal Studies, and across the political divide as far as we could go.
The White Paper that we are publishing today therefore sets out reforms that will, I hope, ensure that people will be consistently and transparently better off for each hour they work and for every pound they earn. We will cut through complexity to make it easier for people to access benefits. The intention is to cut costs, reduce error and do better at tackling fraud. The detail is published today, and the White Paper should be available in the Library. Let me take this opportunity to thank all those in the Department and beyond who have helped to build and write it, working very long hours to make sure that we could get it out today.
Perhaps I could take this opportunity to remind the House of exactly what problem we are trying to solve. It does not relate to any sort of party political point; we are dealing with a structural issue that has grown throughout successive Governments. Five million people of working age are on out-of-work benefits; 1.4 million people have been on out-of-work benefits for nine of the past 10 years; 2.6 million working-age people are claiming incapacity benefits, of whom about 1 million have been claiming for a decade; and almost 2 million children are growing up in workless households-one of the worst rates in Europe.
Some have said recently that it is not reform that is necessary or important, but jobs. Well, this is a long-standing problem in our country. We have a group of people who have been left behind, even in periods of high growth. That is the issue. Even as 4 million jobs were created over 63 quarters of consecutive growth from one Government to the next, millions of people in Britain remained detached from the labour market. Some 4.5 million people were on out-of-work benefits before this recession even started, notwithstanding the growth in jobs that I referred to. These reforms are about bringing them back in. I want them to be supported and ready to take up the 450,000 vacancies that even today, as we begin to emerge from recession, are available in the economy. It is also worth reminding the House that of all the jobs that were created, the vast majority, in terms of net take-up, were taken by people coming in from overseas, because businesses could not get people in this country to do the work and therefore had to seek people elsewhere.
The key to solving this problem is to solve the wider social problems associated with worklessness. The measures in the White Paper to get this process under way are the
first key strand of our welfare reforms. By creating a simpler benefits system, we will make sure that work always pays more than being on benefits. By reducing complexity, we will reduce the opportunities for fraud and error, which currently cost the taxpayer approximately £5 billion a year.
I think that everybody in the House would accept that work is ultimately the best route out of poverty. At present, some of the poorest people who take modestly paid jobs can risk losing £9 or more out of every £10 extra they earn. The universal credit must put an end to some of the perverse disincentives that make it so risky for the poorest to move into work.
The highest marginal deduction rates for in-work households will fall from 95.8% to an absolute limit of 76.2%-that is with the conjunction of tax and the withdrawal-and there will be a single taper rate of about 65% before tax. That means that about 1.3 million households facing the choice of whether to move into work for 10 hours a week should see a virtual elimination of participation tax rates of over 70%. With single tapers and higher disregards, the system will be simpler and easier and people should be able to keep far more cash in their pockets when they move into work.
The guarantee will-I hope-be crystal clear: if people take a job, they will receive more income. Some 2.5 million households should get higher entitlements as a result of the move to the universal credit, and the new transparency in the system will produce a substantial increase in the take-up of benefits and tax credits. Taken together, we estimate that those effects will help lift as many as 350,000 children and 500,000 adults out of poverty. That is just our analysis of the static effects of reform. Analysing the dynamic effects is not always easy, and it is often best done in retrospect, but we estimate that the reforms could reduce the number of workless households by around 300,000.
Let me also provide assurances about the transition. We will financially protect those who move across to the universal credit system. There will be no losers.
Mr Dennis Skinner (Bolsover) (Lab): For how long?
A far simpler system, which operates on the basis of real-time earnings, will also reduce the scope for underpayments or overpayments. We all know from our experience as constituency MPs that that can create anxiety and disruption, and can prove very difficult to correct. Our simplification and reform will help to end that particular problem. As well as reducing official error, these changes will also make life far more difficult for those who set out to defraud the system. They are a very small group of people, but they are there none the less.
The system will be simpler, safer, more secure, fairer and more effective, but it will require investment. Some £2.1 billion has been set aside to fund the implementation of the universal credit over this spending review period, and I have been assisted in that work by my right hon. Friend the Chancellor, who has agreed to and guaranteed the investment programme.
This is not just expenditure; it is also investment. We are investing in breaking a cycle of welfare dependency, which I believe is a price worth paying. The universal credit will provide a huge boost to individuals who are stuck in the benefit trap, reducing the risk involved in taking work and lifting 850,000 people out of poverty in the process. That investment will produce a flow of savings, as a simpler system will help to drive out more than £1 billion of losses due to fraud, error and overpayments each year. On the wider economic considerations, dynamic labour supply effects will produce net benefits to this country, as greater flexibility helps businesses and fuels growth, particularly in the high street. We will invest the £2.1 billion provided in the spending review 2010, seeking a multi-billion pound return.
That is how we will make work pay, but as I said earlier, and as our document states, it simply will not be enough. We also have to support people as they make their move back to work, and the two issues cannot be separated. That is why we are moving ahead with our new Work programme, which will provide integrated back-to-work support. It will pick up and bring together many of the programmes that were in place before, and add to them to create a comprehensive system of support. That is why we have already started a three-year programme to reassess the 1.5 million people who have been abandoned for years on incapacity benefit. The Opposition started that process before the election for the flow of new claims, and we are now trialling it in two cities.
Essentially, this is our contract: we will make work pay and support people to find a job through the Work programme, but in return we expect co-operation from those who are seeking work. That is why we are developing a regime of sanctions for those who refuse to play by the rules, as well as targeted work activity for those who need to get used to the habits of work. That will be a selective process, targeted at those who need to do it, not at everybody. It will be targeted as required, using the understanding and knowledge of those based in jobcentres.
Furthermore, evidence from the already existing work capability assessment, which the last Government started, shows that 36% of people withdrew their applications before reaching the stage of being assessed. The knowledge that they are likely to be assessed has a stark effect on those who may be trying to defraud the system. That underlines the effect that the system could have on those who are currently working while claiming benefits.
This new contract, in which we do our best to help people find work, to make them work-ready, to make work pay and to say that they will always be better off in work than on benefits, is a fair deal for the taxpayer and a fair deal for those who need our help. I commend the reforms in the White Paper to the House.
Mr Douglas Alexander (Paisley and Renfrewshire South) (Lab): I thank the Secretary of State for his statement, for advance sight of it and for his personal helpfulness and co-operation preceding it.
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