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8 Jan 2008 : Column WA193

Energy: Microgeneration

Lord Beaumont of Whitley asked Her Majesty's Government:

The Minister of State, Foreign and Commonwealth Office & Department for Business, Enterprise and Regulatory Reform (Lord Jones of Birmingham): The low-carbon buildings programme (LCBP) phase 1, with a £36 million budget, has successfully supported a number of microgeneration installations since April 2006. We have completed nine rounds of calls for larger scale projects under stream 2, committing funds to over 200 projects. We have seen a slow-down in applicants for household projects over the last eight months and are working with industry to promote the household stream to increase uptake. We continue to monitor uptake before making decisions on future developments.

The LCBP phase 2, with a £50 million budget, continues to make good progress supporting the public sector and not-for-profit organisations.

In addition, we already have policies in place and under development to encourage decentralised energy and help it become cost-competitive. These include:

strengthening the market price for carbon—so technologies are better recognised for their carbon benefits;rewarding renewable electricity generation—through the renewables obligation;support for combined heat and power—such as better treatment in the EU ETS phase 2;the Prime Minister announced in November that we will publish a call for evidence on new measures to bring forward renewable heat in January;Defra published new regulations on the CERT earlier this month, which builds on the success of the EEC and will allow support of microgeneration, community level CHP and biomass-fuelled district heating;

8 Jan 2008 : Column WA194

CLG published the new climate change PPS on 17 December 2007, which will ensure that more local authorities put the need for distributed energy at the forefront of their thinking for new developments, building on the lead taken by Merton Council; and the zero-carbon new homes policy and drive for sustainability in new non-domestic buildings will also provide a strong pull in future.

Energy: Wind Generation

Lord Morris of Aberavon asked Her Majesty's Government:

The Minister of State, Foreign and Commonwealth Office & Department for Business, Enterprise and Regulatory Reform (Lord Jones of Birmingham): The renewables obligation is the Government's main mechanism for supporting renewables generation. It is a market-based instrument and the amount received by generators is set by the market. It is therefore not possible to say with certainty how much support has been received by wind generation.

The tables below, however, provide an indication of the amount that the RO has provided to support wind generation. This is based on renewables obligation certificates’ (ROCs) value to suppliers. The ROC value is the buyout price avoided and the amount of money recycled from the buyout fund.

ROC Value

2002/03

2003/04

2004/05

2005/06

England and Wales

£45.94

£53.43

£45.05

£42.54

Scotland

£53.55

£54.21

£51.38

£42.54

Northern Ireland

-

-

-

£42.54

Multiplying the number of ROCs issued for wind generation by the ROC value therefore gives you a nominal figure for the total support for wind generation between 2002-03 and 2005-06.

2002-032003-042004-052005-06

Onshore (ROCs Issued)

England and Wales

657,216

688,806

895,969

1,126,249

Scotland

430,441

552,228

829,171

1,215,129

Northern Ireland

-

-

-

253,889

Total

1,087,657

1,241,034

1,725,140

2,595,267

Poss Total £s

£53,242,618.59

£66,739,184.46

£82,966,209.43

£110,402,658.18

Offshore (ROCs Issued)

England and Wales

2,347

43,812

277,351

487,083

Poss Total £s

£107,821.18

£234,875.16

£12,494,662.55

£20,720,510.82



8 Jan 2008 : Column WA195

Modelling carried out by Oxera published alongside the energy White Paper in May 2007 suggests proposals to band the renewables obligation will deliver 16.7 terawatt hours of offshore wind and 12.4 terawatt hours of onshore wind by 2015. As our proposals will allow us to change the amount of support given for future developments in line with market conditions, it is not possible to estimate how much support wind generation will receive up to 2020.

EU: Exports to UK

Lord Pearson of Rannoch asked Her Majesty's Government:

Lord Davies of Oldham: The Government do not have an estimate for how many jobs in the rest of the European Union depend on European Union exports to the United Kingdom, and such an estimate could only be provided at disproportionate cost. However, as stated in the European Commission's publication Steps Towards a Deeper Economic Integration: The Internal Market in the 21st Century, the single market has created an additional 2.75 million jobs across the European Union and boosted prosperity by €225 billion in 2006 by removing cross-border barriers to the free movement of goods, services, capital and people, and by strengthening competition.

EU: UK Balance of Trade

Lord Pearson of Rannoch asked Her Majesty's Government:

Lord Davies of Oldham: Figures for the United Kingdom's trade position with the EU are published by the Office for National Statistics. The most recent release is available in table C of www/statistics.gov.uk/pdfdir/bop1207.pdf.

Food: Supplements

Earl Howe asked Her Majesty's Government:

Lord Davies of Oldham: Goods imported into the United Kingdom from the Channel Islands are subject to import VAT in the same way as goods imported from any country outside the European Union.



8 Jan 2008 : Column WA196

However, under European Community legislation, import VAT is not payable on commercial consignments if the total value of the goods in the consignment does not exceed £18.

The de minimis limit was implemented by the UK many years ago to simplify import procedures, and reduce the administrative and operating costs for businesses, and similar costs for consumers, involved in importing low-value goods.

There is no prohibition on the importation of food supplements for personal use within the EC food supplement directive, with the exception within the UK of kava-kava containing foodstuffs. Therefore UK Customs must apply the VAT exemption rules until the policy on the import of such goods is changed.

Earl Howe asked Her Majesty's Government:

Lord Davies of Oldham: Any goods which can legitimately be imported for personal use and which fulfil the relevant criteria may benefit from the low-value consignment relief scheme if the total value of the consignment does not exceed £18.

Earl Howe asked Her Majesty's Government:

Lord Davies of Oldham: Goods imported into the United Kingdom from the Channel Islands are subject to import VAT in the same way as goods imported from any country outside the European Union.

However, under European Community legislation, import VAT is not payable on commercial consignments if the total value of the goods in the consignment does not exceed £18.

There is no prohibition on the importation of food supplements for personal use within the EC food supplement directive, with the exception within the UK of kava-kava containing foodstuffs. Therefore UK Customs must apply the VAT exemption rules until the policy on the import of such goods is changed.



8 Jan 2008 : Column WA197

No assessment has been made on specific products imported under the import VAT accounting scheme, but the scheme is very closely monitored, taking into account the revenue consequences and the impact on the UK market.

Gershon Review: Scotland Office

Lord Oakeshott of Seagrove Bay asked Her Majesty's Government:

Baroness Morgan of Drefelin: All the staff in the Scotland Office are on loan from other government departments and redundancy issues are a matter for the parent departments.


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