Clause 2 - Annual reports under section 1 of the Sustainable Energy Act 2003
Energy Bill [Lords]
3:15 pm
Ms Joan Walley (Stoke-on-Trent North, Labour)
It is always important that business performs as well as it can—not only in competitiveness and profitability, but in terms of Government targets. We heard from the hon. Member for Angus (Mr. Weir) that everything raised in the debate is connected to everything else. That point is well made: we should look not always to see where we are on the ladder, but two rungs up. We should set targets and a route map to take us from where we set out with the energy White Paper to where we must be to meet our international Kyoto commitments and to take a lead on the international stage.
I noted carefully the DTI report on energy efficiency and the Government's plan for action, published in April, which is relevant to the amendment. It indicates that the Government welcome views being given. Indeed, it prints reading lists and refers to the DTI web page as well as details of how to contact the Government for further consultation. I am clear in my mind that there is every opportunity for the Government to take account of our proceedings this afternoon. The fact that the next phase of the energy efficiency commitment is subject to public consultation is integral to our debate.
The Sustainable Energy Act 2003, which was so competently taken through Parliament by my hon. Friend the Member for Milton Keynes, North-East, requires the Secretary of State to designate an energy efficiency aim for residential accommodation. As was pointed out by the hon. Member for Angus, that requirement relates to Scotland and to Wales. It is more important than ever that we concentrate on the 5 megatons commitment and do what we can to keep it in the Bill.
As an aside, the Environmental Audit Committee—I am Vice-Chair and members of this Committee sit on it—took evidence only yesterday from the Energy Saving Trust and the Carbon Trust, and it became clear that meeting our energy efficiency targets includes not only England, but Scotland and Wales. I say to the hon. Member for Lewes that the targets we set must be reached through what is done not only in the domestic, public and business sectors, but in Wales and Scotland. Perhaps in the deliberations that the Minister may have with his civil servants as to how we can move back to leasing these 5 megatons of carbon savings, he might wish to look carefully at the contribution that Scotland and Wales could make.
The question I ask myself is, why have the Government come so far and promised so much, and why is there is a danger that they will falter slightly at this last hurdle in respect of the energy efficiency commitment? I refer the Minister to research undertaken by the Carbon Trust right across the public and private sectors. It has highlighted barriers to energy efficiency relating to just about every organisation it considered. Indeed, when he thinks about whether we should keep clause 3 as it stands, or modify it as is suggested in new clause 7, I ask him to look at those findings and to ask himself whether they might not apply equally to the DTI. It is important to consider the accuracy of the figures and the information put forward by the civil servants that will be used in the debate, which will define whether the targets are reachable. I want him to show strong leadership. I want him to be helped by our deliberations this afternoon so that we can make consideration on Report something we can be proud of.
I believe that the Government have already said that there will be a review in 2007, but I do not feel that we should wait until then. We should suggest now that 5 megatons is exactly what is needed, as the White Paper envisaged.
Like my hon. Friend the Member for Milton Keynes, North-East, I have met with various people on the issue, including the Association for the Conservation of Energy. Like him, I am fully aware of a draft newsletter that is being distributed around the country. It sets out the facts, without criticising the Government in any way, and shows how what was originally envisaged has been changed. There has been a step change down rather than a step change up. The Minister should take that into account, simply because we want the best possible outcome in terms of keeping the original objectives of clause 3.
Like my hon. Friend, I have looked at the regulatory impact assessment that we all received in sealed envelopes this morning. Paragraph 2.29 does indeed hint that one reason why the Government have decided to abandon the aspirations set out in the White Paper is the cost:
''A new aim of 5MtC carbon savings in households by 2010 would require substantial new measures. Carbon savings of this magnitude could only be delivered by increasing the rate of installation of cavity wall insulation. The estimated costs of
delivering these measures would be of the order of £1.5-2.0 Bn. If the additional activity cannot be added to the existing Energy Efficiency Commitment, these costs would have to be met by the Exchequer.''
The members of the Environmental Audit Committee have the benefit of evidence given by the Energy Saving Trust and the Carbon Trust only yesterday. I strongly urge the Minister to read it. There is a problem with the implementation plan, as the projections that the DTI promised have not yet been issued. That will determine how successful we are likely to be in delivering that commitment.
Just as importantly, it was suggested to us that there is a serious underestimate of what the savings to be made from appliances and white goods can deliver. The message that came across to our Committee yesterday is that the Government will achieve carbon savings that will not be counted because some measures still have not been factored into the plan. Why, then, will it be so difficult for us to reach the target of 5 megatons rather than 4.2 megatons? Is the Minister satisfied that the premise on which his civil servants have recommended that we cannot achieve 5 megatons has been fully explored? Should we not include the Carbon Trust and Energy Saving Trust in further discussions that will, I hope, take place before consideration on Report?
The regulatory impact assessment refers to what can be delivered through the installation of cavity wall insulation. Surely, measures other than the installation of cavity walls, such as the home condition report and the energy rating for every house, will also make a difference. Policy measures already in place could deliver the carbon saving that we seek. That might be a challenge, but it is certainly achievable. Should we not be working with the energy efficiency industry to secure a win-win situation? Should we not be working to ensure that Lord Whitty and previous Ministers who have given commitments on this are backed up by the action that we are going to implement?
Many people become MPs to make a difference and to change the world; I have been a Member for 17 years. In all seriousness, this is possibly the most pressing issue facing not only our country, but the international community. We have a group of Back Benchers who care passionately about the issue, and people across the country want clear signals from the Government that they can go full speed ahead for more exacting targets and standards. The Minister has an opportunity to send those signals and we look forward to hearing whether there is scope for further debate.