Live Energy and Climate Change Questions House of Commons


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Prout, and her ministerial team. The first question comes about new

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energy technologies. Order, order. Questions to the

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Secretary of State for Energy and Climate Change. Thank you. Question

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number one. Thank you. Encouraging and supporting innovation is central

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to everything we do. The UK has a proud record of leadership in energy

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and innovation, for example, through driving down costs of offshore wind

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technology. The Government took steps to build on this last year's

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Spending Review, more than doubling our innovation budget to a total of

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?500 million over the next five years. In this way, we can continue

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to support the development of clean, cheap and rival technologies. Thank

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you. I recently visited to farmers in my constituency. They are

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generating electricity through any real big digestion and another who

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is using the same process. To generate bio gas. This is connected

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to the national grid. With the Secretary of State joining

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congratulating these entrepreneurs who have shown considerable

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innovation in the use of neat analogy. Catch you when what further

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support Government is giving? Thank you. My honourable friend is correct

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that one of the biggest challenges we face is how to decarbonise our

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energy supply. We have provided low carbon heat and electricity and I

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would like to congratulate employers such as those mentioned, who make

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use of food and farm waste, to help deliver renewable energy. Can I ask

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the Minister to get out a bit more? Because I walk around my

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constituency and I talked to the big companies who invest in new

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technology. They think the stop start nature of Government policy,

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especially from the Treasury, has deeply harmed innovation and

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research in this area. I am sorry to hear that. The facts speak for

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themselves. Investment in renewable technology and energy is at a record

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high in the UK. This Government is always careful to consult before

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making changes. That is to ensure that we take industry with us and

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deliver the stability they need. The most dominant form of low carbon

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electricity is meagre power. In terms of innovation, the Secretary

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said updaters on the competition in nuclear power? Thank you. Nuclear

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power is an important part of the energy mix. We continue to need it

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and this Government supports going forward, to replace our ageing

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nuclear fleet as it comes off, over the next decades. We have launched

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this competition and have had 38 expressions of interest and we will

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work closely with those companies to make sure we are plans the

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competition to bring on the most likely investment. Last month, the

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US Senate passed an Energy Bill in a rare occurrence of bipartisan

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cooperation. This bill could potentially unleashed billions of

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dollars in research and development on new energy technologies,

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including energy storage, hydro- kinetic and advancing the electric

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grid in the United States. Can the UK Government Act in a similar

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manner, investing in the future and addressing the myriad of problems

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with our energy infrastructure? The Climate Change Act underpins the

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drive towards renewable energy in this country and it was indeed

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passed a cross-party and this area is developing in low carbon and

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remains cross-party and this Government is committed to making

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sure we make the investment and plan for the long term, to ensure we

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develop renewable energy, whilst always ensuring we do it at the

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least possible cost and putting energy security first. Will my

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honourable friend agree that supporting innovative electric

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vehicles is an excellent way to protect the environment and UK

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business? Will the Government do all I can to support this new

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technology? The future for transport is indeed electric. The Department

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for Transport has clear plans to make sure that we develop that and

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support that industry. One in four electric cars is driven around

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Europe at the moment and made in the UK. I hope the UK will continue to

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be a leader in this developing area. The honourable gentleman may be

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aware that we have recently launched a consultation on tidal energy. That

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is being headed by Charles Hendry. In terms of tidal stream, which he

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may also be asking about, we have yet to decide how allocations will

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be taken forward. I welcome the support for smart meters and I'm

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sure you will agree the role it is vital to put consumers in control of

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energy use. Consumers need ready access to data from smart meters. If

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we're going to achieve this, and that is why all households will be

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offered an in-home displays to allow them to see the energy they are

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using in real time. As well as its cost. It will also allow suppliers

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to trial innovative technologies alongside. Smart meters can

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transform domestic energy consumption and help save the

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planet. But only if consumers are given secure control and ownership

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of their own data. The display options she refers to will still

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allow smart meters to be a back door into our homes for hackers. Can she,

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before it is too late, overcome her ridiculous complacency and announce

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measures which will give consumers the digital rights that they

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deserve? The honourable lady should know that privacy is absolutely

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protected and at the heart of the smart meter programme. She should be

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careful not to put fear into the hearts of people, where none should

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exist. The data is protected and the data belongs, not to Government,

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which some people might not unreasonably fear, but to the energy

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companies. So, we will make sure that we always reassure consumers

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that privacy is at the core of delivering safe meters in the

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future. The Competitions and Markets Authority has recommended a

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temporary safeguard for vulnerable users on prepayment meters. This

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safeguard could be worth savings of up to ?300 million a year for those

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on prepayment meters. The secrecy committed to implement it as as

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possible? Thank you. You are correct. The preliminary report

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addresses head on the difficulties of higher costs paid by people with

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prepayment meters. We blame them and those recommendations and look

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forward to seeing the final recommendations. According to

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Government's calculations, smart meters installed could save ?17

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billion in collective energy bills over the next 15 years. Does the

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minister recognised that consumers have access to data usage? This

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allows them to shared with third parties, to improve competition.

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Yes, the Government will be glad to see the fact that Competition and

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Markets Authority has said they will make available in a controlled way

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the details of people who have not switched. We have to make sure it is

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done in a way that does not result in consumers viewing overwhelmed by

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the jesters. The Competitions and Markets Authority has yet to come

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out with final solution but I am confident it will do so and when it

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is measured and will help to make sure that people who have not been

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switching have access to switching and the opportunities that are

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there. Thank you. The Government has announced up to ?730 million of

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contracts for different support. For offshore wind and others. The first

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option will offer ?299 and I expect Scottish projects to bits. This is a

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huge opportunity for the UK supply chain and I am doing every day I can

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to persuade developers to buy British. The Government has

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cancelled the CFC for a wind farm in eastern Scotland. Without it, there

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will be no project at all. Can the Secretary of State and that's why

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this has been cancelled? And will be committed to redeploying funds to

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another Scottish project? Well, what I can say is that it is not the

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Government that decides whether delivery milestones are met, it is

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the low carbon contracts company who manages those CFT 's. That

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cancellation was a result of the milestone delivery date, not being

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met. There are ongoing discussions about it. I absolutely recognise the

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termination of a CFD is disappointing. There is a big

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project pipeline of Scottish onshore wind and I expect to see other

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projects coming forward next auction. I am happy to hear the

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mellifluous tones of the honourable gentleman but his inquiry must

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relate to Scotland, brother and Cleethorpes. There is a direct link.

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Clearly, developments in the industry in Scotland will impact on

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the success or otherwise of developments of the energy estuary,

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which is the Government ambition for the Humber. Could the Minister give

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an update on how developments in Scotland might impact on the Humber?

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Very neat. I commend my honourable friend for both his tenacity and his

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command of the English language. I can certainly say to him that this

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project pipeline, whether from Scottish projects, from the Humber

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region, will enormously benefit the UK supply pipeline and that is what

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we really want to do. I am talking with individual developers. He will

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be aware of the East Coast review that is ongoing, to try to make sure

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that wherever possible, we buy British. That is this UK fabricators

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and opportunities to get more of this valuable business, which has

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been a real success story for the United Kingdom.

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Scotland's and doubted potential in renewables is being squandered by

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removed control from here in Westminster. -- undoubted. When will

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Scotland be treated better? Mr Speaker, I'm not sure if it is

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Parliamentary language to say, what a rubbish, but that was absolute

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rubbish. There is no sense in which the UK Government treats Scotland as

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an absentee landlord, and the honourable gentleman will absolutely

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be aware that 60% of the renewables obligation has gone to Scottish

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projects, how on earth he can think that Scotland is somehow losing out

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is absolute nonsense! Thank you, Mr Speaker. If we are not being run

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from removed control, can the Minister tell us hammy times the

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Secretary of State has been to Dublin since the last election? I

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can tell the honourable gentleman I have been to Scotland a number of

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times. I do not know the answer to his question, I can write to him on

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that point. But my right honourable friend is absolutely committed, as

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am I, to the success of not just the renewables sector in Scotland, but

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also to the oil and gas sector, and he will be aware of the hours she

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and I have spent in this chamber desperately trying to get the

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authority sorted out through the Energy Bill that he and his

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colleagues have absolutely tried to delay and discover at every turn! Dr

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James Davies. Question number four, Mr Speaker. Minister. Thank you, Mr

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Speaker. It is quite right that network companies give proper

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consideration to protect immunities in sensitive areas, and my

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honourable friend is right to speak up for his local residents. I hope I

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can reassure him and his constituents that legislation does

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already put this requirement on them. Local communities will always

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be properly consulted on how new transmission networks might affect

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their local environment. Dr James Davies. I am grateful for this

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reply. She will be aware that many miles of new Alec Issigonis will be

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required across the country for new projects including in my area of

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North Wales. Would she agree that where there is controversy, the cost

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of delays to such infrastructure projects could far outweigh the

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costs of putting cables underground to overcome such controversy? Would

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she also agree that planning guidance may need firming up to

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enable clarity around this requirement? Minister. I certainly

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agree that getting on with project and avoiding delays is important,

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and I am sure he will appreciate that there is a balance to be

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struck. A recent independent study shows that under grounding of

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transmission lines can cost up to ?24 million per kilometre, compared

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to 4.4 million for overhead lines. These costs are ultimately paid

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through consumer bills. I do want to reassure him again that existing

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planning guidance will make sure that undergrounding is always fully

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considered. Thank you, Mr Speaker, I wanted to ask the Minister about

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broader vertical infrastructure. We have pylons, as you know, coming

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through Cumbria, but in my constituency we also have a lot of

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wind farms and telephone masts. My question to her, how do we mitigate

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bringing all of those together when we look at new panning? That

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planning. I hope I can reassure the honourable lady that local authority

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planning processes do always take into account the cumulative impact

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of yet one more project that is under way. I mean, I suppose this

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is, quite rightly, a question for the see Elche, but I think that the

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existing planning arrangements will certainly always allow for proper

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consideration of alternatives, but also to look at one more project

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does and whether somehow it can be brought together so that, if there

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is an area that is affected, it can have, you know, several different

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projects in the same place, rather than spreading it out and ruining

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the landscape. The best way to deliver energy bills for businesses

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and households is to have a robust and competitive energy market. In

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2010, the big six controlled 99% of the domestic market, but this year

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consumers can choose from over 30 independent suppliers who between

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them control over 15% of the dual fuel market. Competition is

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improving, but we cannot be complacent, and that is why I look

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forward to the final report of the Competition and Markets Authority,

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and I would encourage consumers to switch. I agree with the Secretary

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of State and banker for the answer, and the best way for consumers to

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get a good deal is to consider switching. -- and thank her. Can my

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right honourable friend confirm that the Government remains committed to

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reducing the time it takes for customers to switch? The fact is

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that consumers are sometimes put off from switching not only by the

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complications which they perceive but the length of time which it can

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take, and we are confident they will reach revival next day switching by

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2018. My friend the shadow Secretary of State for Energy and Climate

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Change recently visited the warning Trego house in my constituency where

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heating and lighting bills are kept and ?100 per year. -- the

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award-winning eco house. I thank the honourable lady for her question,

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and she's absolutely right that there are fantastic taking place

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through private sector investment to make sure they deliver innovations

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in this sector which will drive down bills. In terms of zero carbon

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homes, I can reassure heard there is a EU directive which calls for near

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zero carbon emissions which will reduce the cost of bills. Does my

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right honourable friend agreed that it is important to give more power

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to price comparison websites to give consumers more knowledge? Well, I

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agree that we have to have as many choices as possible for people, and

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Competition and Markets Authority have made some proposals, but we

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also have to be careful to make sure it is fairly addressed and the

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cheapest tariff is indeed available and there is full disclosure. What I

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intend to do is encourage people to go to the Ofgem website, be an

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energy shopper. Thank you, Mr Speaker. The Secretary of State is

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fond of telling us how keen she is to cut energy bills, but last Friday

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her department, when attention was diverted elsewhere, reveal that

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families in this country will be asked to pay an extra up to ?38 on

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their energy bills in order to fund her failure to get new power

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stations built. Can she now confirm to this House that not only is she

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asking families to pay more to fund her policy of closing coal-fired

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power stations, but now, at exactly the same time, she is also asking

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them to pay more to keep them open? What the honourable lady is faring

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too is changes in the capacity market, and she has not grasped the

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facts of the situation. -- is referring to. The consequences of

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wholesale prices falling is that coal and gas prices become an

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economic goal. Because we will take no risks with energy security, and

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because we are clear that energy security must be the number one

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priority, we have brought forward a new capacity market which will stop

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their being sort of price hikes which are most and welcome and

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actually my department estimates this will save consumers up to ?46

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on their bills. Mr Speaker, the absurdity of the situation appears

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to be lost on the Secretary of State, but since she has been on

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this panicked spending spree, perhaps I can ask another question.

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She recently announced generous subsidies to EDF, the big energy

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company that operates British nuclear facilities. She has agreed

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to hand over ?153 million in subsidies in 2018, a further ?139

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million the following year, to subsidise nuclear power stations

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that would have been open anyway. Is she now also aware of the recently

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breaking news that the cost of Hinkley Point C is now set to rise

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to ?21 billion? That is ?3 billion more than was forecast. And can she

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tell us what she estimates the cost to bill payers and taxpayers in the

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UK will be of this new revised estimate? I am concerned the

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honourable lady did not hear my answer to the earlier question.

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Energy security has to be the priority of Government. What we have

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done in bringing forward changes to the capacity market is make sure

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that, because of low wholesale prices, we have sufficient energy

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coming forward June be next two years. The honourable lady reveals a

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total lack of understanding of getting the right balance between

:20:41.:20:45.

secure electricity, nuclear and, yes, in the short-term coal, which

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supports our renewable investment, keeps bills low and ensures

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customers always have a good supply of electricity. Question number six.

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Indeed! Mr Speaker, the most effective way for consumers to

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ensure they are on the best value tariff is by engaging the energy

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market and switching supplier. I would encourage all members to

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encourage their constituents to make use of websites. We will make it

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easier for consumers to switch and we are planning to move to next day

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switching by 2018. My constituency is one of the coldest constituencies

:21:30.:21:34.

in England, so household energy costs are properly

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disproportionately higher compared to other areas in the country. As

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she made an assessment of the trends are people changing suppliers,

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whether they are actually keeping costs down? Well, I thank my

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honourable friend for his question, and I can reassure him that

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switching was at a four year high in 2015, six .1 million switches across

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Great Britain, a 15% increase. -- 6.1 million. I am aware some people

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are not willing to switch, which is why we have the big energy saving

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network programme, which this year gave ?10,000 of funding to two

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champions in the area who reached over 350 customers directly and

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trained 111 front line staff. Over the year, 1900 vulnerable customers

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were supported. It is important to reach all consumers. Last week the

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honourable gentleman the member for Lichfield and up to having brought a

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hedgehog into the chamber some years ago, I am pleased to say not during

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my tenure! With all the reference to to price comparison websites, I'm

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glad no-one has thought it necessary to bring a meerkat into the chamber!

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Jessica Morden! Secretary of State. The Government agrees with the

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Competition and Markets Authority that consumers on prepay meters are

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getting a poor deal and supporting such consumers was at the heart of

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the decision to support the CMA investigation in the first place.

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The honourable member may have seen the estimate by Citizens Advice that

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23% of households in her constituency have prepayment meters,

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above the national average of 16%. It is important we take on board the

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CMA recommendations after their report is published. In Wales, a

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staggering one fifth of households are on prepayment meters, paying up

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to ?330 per year more for gas and electricity than those on the

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cheapest tariff, so it is important for Wales and those 700 households

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in my constituency that we know which of the recommendations the

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Government is working on the CMA with and when constituents will

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start to see the benefit, can the Minister be specific? Well, Mr

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Speaker, I say to the honourable lady, we don't yet have the specific

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recommendations, but she will be aware, as I am, that what we have

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had proposed so far in the draft recommendations as a safeguard

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tariff for those people on prepayment meters. It is not clear

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yet whether that will be temporary or long-term, but we will look

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carefully at the recommendations of the CMA in order to get the best

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outcome for the most vulnerable customers, which I know is a desire

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she shares as well. Can I push the Secretary of State on that once more

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if possible? There are four million households still languishing on

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rip-off prepayment meters who would really like more detail from the

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Secretary of State on this, considering that your energy

:24:30.:24:33.

efficiency policies and your fuel poverty strategy is in tatters, I

:24:34.:24:36.

think they would like more detail on the timetable and when this will

:24:37.:24:41.

happen. Well, it is typical of the party of the said that they are not

:24:42.:24:45.

able to understand the concept of the CMA, who are preparing this

:24:46.:24:49.

report. It is up to them to come forward with the final

:24:50.:24:52.

recommendations, and it is their recommendations that we will be

:24:53.:24:56.

following. I must take issue too with the honourable gentleman's

:24:57.:25:04.

reference to tatters. This Government is committed to helping

:25:05.:25:07.

the most vulnerable, we are proud of the work we are doing to reforming

:25:08.:25:09.

our various schemes in order to support the most vulnerable,

:25:10.:25:11.

something we will continue to do in order to make sure that this side of

:25:12.:25:15.

the house always supports the people most in need. Can I just press the

:25:16.:25:22.

Secretary of State a little further? In my constituency of Heywood and

:25:23.:25:26.

Middleton, we are in the top 54 numbers of households with

:25:27.:25:29.

prepayment meters. My constituents are being ripped off, what can the

:25:30.:25:34.

Secretary of State tell me that I can tell my constituents about how

:25:35.:25:39.

long they will continue to be ripped off by prepayment meters? The

:25:40.:25:44.

honourable lady, I am sure, has looked at the CMA report. They have

:25:45.:25:48.

got this proposal for a safeguard tariff, we welcome that, one of the

:25:49.:25:52.

key reasons why we were keen to work to propose this view by the CMA. We

:25:53.:25:56.

are expecting them to come forward with the final report soon, and when

:25:57.:26:01.

they do so, we will then act on their recommendations. I hope it

:26:02.:26:05.

will deliver what we hope it will, as she does, support for those

:26:06.:26:07.

people on prepayment meters, often the most vulnerable.

:26:08.:26:12.

Question number nine. We have had extensive correspondence with the

:26:13.:26:22.

Speaker and the Government will publish the decisions about the

:26:23.:26:28.

contract for all this established technologies, including the strike

:26:29.:26:33.

prices. We will take all steps needed to deliver this auction,

:26:34.:26:36.

including submitting any necessary notifications to the European

:26:37.:26:41.

Commission. Thank you. I am grateful for that answer. The Minister will

:26:42.:26:46.

now that the application for the island strike price has been ready

:26:47.:26:51.

since the New Year. The continuing failure to us admit it is causing

:26:52.:26:55.

enormous uncertainty and a massive loss to confidence amongst renewable

:26:56.:27:01.

energy generators in the Northern and Western Isles. Will she agree to

:27:02.:27:06.

meet with near the honourable gentleman from the constituency,

:27:07.:27:15.

along with developers, to discuss and understand how serious this is

:27:16.:27:22.

for our industry and our islands? The right honourable gentleman and

:27:23.:27:25.

the chair of the Energy and Climate Change select committee met with

:27:26.:27:27.

officials recently to discuss these issues. I assured him that my

:27:28.:27:32.

officials also have met with several representatives of the renewables

:27:33.:27:35.

industry, specifically to discuss them in Island wind. I will

:27:36.:27:38.

certainly be happy to meet again with the remote islands to discuss

:27:39.:27:42.

our decisions once we have taken them. Thank you. Does the Minister

:27:43.:27:50.

not agree that the very fact we have to go begging the European Union

:27:51.:27:59.

before we can help our own fellow citizens in this country, not amply

:28:00.:28:02.

demonstrates the reason why we would be better off, and those citizens

:28:03.:28:09.

would be better off, if we left the European Union and took charge of

:28:10.:28:12.

our own controls and were able to decide for ourselves how we spend

:28:13.:28:16.

taxpayers money in this country? Minister. As an energy minister, I

:28:17.:28:26.

can say that the Governor position is the UK should remain within a

:28:27.:28:30.

reformed European Union. -- the Government position. Question number

:28:31.:28:34.

ten. Yes, Mr Speaker. We are among the

:28:35.:28:49.

first developed countries to be consulting on phasing out cold. It

:28:50.:28:52.

is vital for our decarbonisation that we move away from the dirtiest

:28:53.:29:02.

fossil fuels. -- coal. Consultation is important to ensure energy

:29:03.:29:08.

security. The consultation will begin in the near future. I am

:29:09.:29:15.

grateful to the Minister for her response. There are still many

:29:16.:29:20.

people in the UK and Wales and indeed in my constituency, working

:29:21.:29:27.

in or connected with the coal industry. What assurances can be

:29:28.:29:30.

Minister provided that the consultation will be properly

:29:31.:29:32.

thought through and take time to explore the issues thoroughly? So as

:29:33.:29:35.

not to leave people unduly concerned for their livelihoods. Of course,

:29:36.:29:44.

she is exactly right to speak out for her community. And that is

:29:45.:29:47.

precisely why we're doing the consultation. We want to take all of

:29:48.:29:52.

the factors account. And I am sure she and members opposite with agree

:29:53.:29:56.

that it is right we move away from the dirtiest fossil fuels overtime

:29:57.:30:00.

but in a measured way, taking into full account the impact on local

:30:01.:30:04.

communities and what other opportunities there are four them

:30:05.:30:11.

and I can totally sure we will be very carefully consulting. We would

:30:12.:30:16.

reach the question for the honourable lady but if she feels an

:30:17.:30:20.

irresistible urge to come in on this question instead, she can do so.

:30:21.:30:31.

Thank you. It called for -- eight coal-fired power station in my

:30:32.:30:35.

constituency will recently close. Will an application for a new gas

:30:36.:30:38.

power station be dealt with in a timely manner to help create future

:30:39.:30:43.

job opportunities for highly skilled workforce who work at the plant? I

:30:44.:30:49.

would really like to congratulate her for all the work she has done on

:30:50.:30:53.

this. It is an incredibly important constituency issue and I met with

:30:54.:30:58.

her and a number of other colleagues recently to talk about the

:30:59.:31:01.

possibility of closing coal-fired power stations comment becoming new

:31:02.:31:06.

CCG tees. And I welcome her and encourage her efforts to see if she

:31:07.:31:11.

can support that to happen. I have already said to her that I will have

:31:12.:31:17.

a LG to ask them what more, if anything, can be done, to make it

:31:18.:31:23.

easier for planning permission for a new gas-fired power station. We are

:31:24.:31:31.

holding a consultation for those making that transition. So they can

:31:32.:31:36.

understand better the processes. Question number 11. The renewable

:31:37.:31:43.

heat incentive is the world's first long-term financial support

:31:44.:31:45.

programme for renewable heat. It is essential to Everest to deliver

:31:46.:31:48.

renewable energy to consumers and businesses. In March, my Department

:31:49.:31:59.

launched a consultation, and a central aim of this reform is

:32:00.:32:02.

insuring the scheme offers value for money and allows a transition to

:32:03.:32:05.

cleaner heating technologies in a manner affordable to the UK. I

:32:06.:32:11.

recognise the importance of supporting the biomass industry.

:32:12.:32:16.

What assurances can you give to me and small businesses and biomass

:32:17.:32:30.

companies in my constituency? The Government is providing support for

:32:31.:32:33.

small and medium-sized biomass companies, through a range of

:32:34.:32:36.

incentives, ranging from the renewables obligation, and indeed

:32:37.:32:39.

the renewable heat incentive. We spent biomass to play an important

:32:40.:32:45.

role in industrial processes. There are fewer alternatives for lower

:32:46.:32:48.

carbon technologies and we want to ensure we bring forward deployment

:32:49.:32:53.

in these areas. The consultation that the Secretary of State

:32:54.:32:57.

mentioned reveals an intention to provide renewable heat and that is

:32:58.:33:05.

9% of the UK's heat requirements but less than the original 2020

:33:06.:33:10.

renewable heat target. How does the Secretary of State attends to meet

:33:11.:33:16.

that target, given shortages? It is more about the numbers of Houses are

:33:17.:33:23.

businesses that you support for the renewable incentive and not always

:33:24.:33:27.

about the pure cost. It is not necessarily about the league table

:33:28.:33:30.

of costs but rather about the outcome is that we get at the other

:33:31.:33:33.

end. We are consulting on the renewable heat incentive to ensure

:33:34.:33:38.

we deliver the best value for the taxpayer. We are committed to making

:33:39.:33:42.

sure we use this money in the most cost-effective way. The Secretary of

:33:43.:33:52.

State did not address the question of the relationship of the renewable

:33:53.:34:00.

heat incentive proposals finances to the UK's contribution to the use

:34:01.:34:14.

renewable target of 12%, by 2020. As mentioned, we are still short of

:34:15.:34:18.

that kind. Is she confident that the measures and finances she suggests

:34:19.:34:25.

in the new proposals will enable us to reach that target? Or is she

:34:26.:34:29.

actively considering other measures to ensure that we do? The honourable

:34:30.:34:34.

gentleman will be aware that the renewable target for 2020 covers

:34:35.:34:41.

tilting, heat, transport and electricity. The renewable heat

:34:42.:34:44.

incentive is a key part of it. That is why we have had the consultation.

:34:45.:34:50.

We will now examine those answers. In order to make sure we direct the

:34:51.:34:55.

funds we have in the most effective way. We recognise that it, although

:34:56.:35:02.

we have made good progress, there is more work to do in reaching the

:35:03.:35:05.

target, but we believe we have sufficient policies at the moment to

:35:06.:35:08.

address the need. But we will look at what else can be done,

:35:09.:35:11.

particularly in buildings and transport, to make more progress

:35:12.:35:15.

from the halfway mark that we have met so far. In the first quarter of

:35:16.:35:23.

our new more at sustainable cost control regime, six out of 11

:35:24.:35:29.

deployment caps were reached, including the two largest of the

:35:30.:35:34.

four solar caps. Take-up of domestic solar photovoltaic systems is strong

:35:35.:35:38.

but was still within the cap. We do estimate that it will support over a

:35:39.:35:46.

new solar PV installations on domestic scale by 2019. Domestic

:35:47.:35:54.

solar installers in my constituency support report that demand has

:35:55.:36:01.

plummeted and are down 80% on last year. Will the Minister acknowledged

:36:02.:36:06.

that they to law and that the disastrous broach this Government is

:36:07.:36:11.

taking to solar energy is effectively stopping individuals who

:36:12.:36:13.

want to make a contribution to comment on climate change in their

:36:14.:36:16.

own homes, by installing solar panels, from doing so? No, I don't

:36:17.:36:25.

recognise what she is saying. The solar deployment is amazing. Far in

:36:26.:36:34.

excess of all of our expectations. 99% of solar installations have

:36:35.:36:38.

taken place since 2010, so, under this Government and the previous

:36:39.:36:44.

one, not under the opposition Government, it has been a huge

:36:45.:36:48.

success story. And our subsidy regime takes into account the

:36:49.:36:51.

interest for the consumer, who has to pay at, and the developer, who is

:36:52.:36:57.

continuing to build. Some caps have been met and others are performing

:36:58.:37:09.

strongly. Number 14. We launched a consultation in March, with

:37:10.:37:11.

proposals for reform to the renewable heat incentive. It closed

:37:12.:37:17.

22nd of April. It includes a proposal to withdraw our HSI support

:37:18.:37:21.

for solar thermal technologies. We are looking carefully at responses.

:37:22.:37:26.

I assure the honourable gentleman that in coming to conclusions, we

:37:27.:37:29.

will address all relevant factors, including the impact on the UK

:37:30.:37:34.

supply chain. The Minister accept that solar thermal has the lowest

:37:35.:37:37.

CO2 footprint of all heating technologies? There are no ongoing

:37:38.:37:44.

fuel commitments and low space requirements. It is ideal for homes

:37:45.:37:48.

of vulnerable people because there is no requirement for it to be

:37:49.:37:52.

heavily insulated. By the Government proposing cutting support for solar

:37:53.:38:02.

thermal? I agree that it plays a part but as part of the reform of

:38:03.:38:07.

the RHI, we are trying to ensure the budget offers the best value for

:38:08.:38:11.

money full stop solar thermal does require the highest subsidy from

:38:12.:38:14.

Government of all RHI technologies. The evidence suggests 50% of RHI

:38:15.:38:20.

respondents said they would have installed it even without Government

:38:21.:38:24.

subsidy. So, we do need to look at the balance between keeping the cost

:38:25.:38:28.

down for the bill payer and supporting these technologies.

:38:29.:38:36.

Number 15. With permission, I will take this with question 19. The

:38:37.:38:40.

Government is taking steps to build on our proud history of energy

:38:41.:38:44.

innovation and is more than doubling our innovation budget over the next

:38:45.:38:47.

five years to a total of 500 million. We can continue to is where

:38:48.:38:51.

the development of clean, cheap and reliable technologies and the growth

:38:52.:38:55.

of green research and development across the UK. The honourable

:38:56.:39:03.

members not here. I don't know what happened to him. Thank you for that

:39:04.:39:12.

reply. With the new Grampian offshore wind farm being based in

:39:13.:39:16.

the enterprising in New Haven, and with the recent opening of a college

:39:17.:39:21.

in New Haven, Dougie said the state agreed that New Haven town has the

:39:22.:39:24.

potential for being a hub for research and development and could

:39:25.:39:28.

she outline how the Government might support that going for? I welcome

:39:29.:39:34.

the activity under way in my honourable friend's constituency and

:39:35.:39:38.

will of course consider opportunities to support research,

:39:39.:39:39.

development and demonstration, across the UK, as we develop our

:39:40.:39:45.

ovation programme. I would encourage her to speak directly to low carbon

:39:46.:39:48.

energy funding bodies, who stand ready to support innovation in the

:39:49.:39:52.

technologies we will need in our future. I really welcome the

:39:53.:39:56.

Government of the UTC, which has, amongst other companies, the college

:39:57.:40:02.

has partnered with, EDF Energy, and has focused on green engineering. I

:40:03.:40:06.

think there is an opportunity there for New Haven. Thank you. The

:40:07.:40:12.

Government's emissions reduction plan has been promised by the end of

:40:13.:40:15.

the year. The Secretary of State has said it will address the 10%

:40:16.:40:23.

shortfall for the carbon budget set in 2011. Section 14 of the Climate

:40:24.:40:28.

Change Act stipulates that the Government must lay before

:40:29.:40:31.

Parliament a report setting out how it will meet each carbon budget as

:40:32.:40:37.

soon as is reasonably practicable after setting it. After five years,

:40:38.:40:42.

the Secretary of State consider she is now in breach of the Act? Or does

:40:43.:40:48.

she have an unusually elastic definition of the phrase, as soon as

:40:49.:40:56.

is reasonably practicable? It is always a pleasure to receive such a

:40:57.:41:01.

detailed question. I can reassure him I am fully aware of Section 14

:41:02.:41:06.

and the sections either side of that. I am clear we will have an

:41:07.:41:09.

emission reductions planned by the end of the year. And also, that we

:41:10.:41:14.

have an obligation to come forward with our response to the fifth

:41:15.:41:18.

carbon budget. It is because we take these matters so seriously, it is

:41:19.:41:24.

because this is a big, realistic, important challenge for the UK, but

:41:25.:41:26.

we're not rushing it. Ronnie Cowan! Question 16, Mr

:41:27.:41:40.

Speaker. My department is currently considering responses to our recent

:41:41.:41:43.

consultation on reform of the renewable heat incentive. As part of

:41:44.:41:47.

the consultation, we have engaged with the relevant trade bodies and

:41:48.:41:50.

industry stakeholders to understand the impact of the proposed reforms,

:41:51.:41:55.

including specifically the impact on the biomass industry. Currently the

:41:56.:42:02.

sector directly supports the jobs of 11,500 people and 590 companies

:42:03.:42:06.

across the UK. With that in mind, cut the minister explained to me the

:42:07.:42:10.

UK Government's lack of ambition with respect to installation of

:42:11.:42:15.

biomass boilers which will lead to job losses in the sector? I am aware

:42:16.:42:20.

of the importance of biomass industry to the honourable

:42:21.:42:24.

gentleman, to his constituency, and indeed to Scotland overall. This is

:42:25.:42:27.

why we are consulting, to make sure we are fair with the money that we

:42:28.:42:32.

have, to make sure we deliver best value for the taxpayer. Small

:42:33.:42:37.

biomass has a role to play, the budget is travelling by 2021, we are

:42:38.:42:42.

committed to developing biomass, and we will be coming back with

:42:43.:42:45.

responses in due course. -- trebling. Question 17, Mr Speaker.

:42:46.:42:53.

Well, this year the Government has pulled out all the stops to support

:42:54.:42:58.

the oil and gas sector, including a fiscal package worth 1.3 billion

:42:59.:43:03.

over five years, ?20 billion for new seismic surveys, and our core policy

:43:04.:43:07.

of establishing the oil and gas authority, whose job is to maximise

:43:08.:43:11.

economic recovery from the North Sea. This is a vital UK industry,

:43:12.:43:16.

and we are totally committed to keeping the UK continental shelf as

:43:17.:43:20.

an attractive destination for investment, securing hundreds of

:43:21.:43:26.

thousands of jobs. I thank the Minister for her answer, and I do

:43:27.:43:29.

appreciate the work that has been done, and while the SNP welcome the

:43:30.:43:35.

support announced in the Budget, I think your characterisation would

:43:36.:43:38.

not be one that those were lost their jobs in the north-east would

:43:39.:43:42.

agree with. It is essential that we listen to those in the industry who

:43:43.:43:46.

are calling for a strategic review of the fiscal and regulatory regime.

:43:47.:43:50.

What steps are being taken to review the tax rate and investment

:43:51.:43:56.

allowance? Well, as I have said, the Treasury have already taken enormous

:43:57.:44:00.

steps with fiscal policy towards the North Sea, to promote further oil

:44:01.:44:05.

and gas exploration. They are constantly looking at that. In fact,

:44:06.:44:11.

it is next week that I a dinner to talk again to the maximising

:44:12.:44:18.

economic recovery group of operators and investors to try to look at what

:44:19.:44:22.

more we can do, and the Treasury plays their full part in that. But

:44:23.:44:26.

we have to be clear that the OGA is already transforming things like

:44:27.:44:31.

production costs, the level of co-operation between different

:44:32.:44:35.

operators in the North Sea. This is an incredibly important area. We

:44:36.:44:38.

have a group which is meeting again next week to discuss what more can

:44:39.:44:42.

be done. We are literally pulling out all the stops for the North Sea.

:44:43.:44:48.

Mr Peter Lilley. While sympathising with the constituents of the

:44:49.:44:50.

honourable member for Livingston who have lost jobs in the North Sea,

:44:51.:44:55.

would not the best thing for them to be to create new jobs by allowing

:44:56.:45:00.

fracking in Scotland for the very people with those skills who have

:45:01.:45:04.

been prevented from the prospect of search jobs by the hypocrisy of the

:45:05.:45:12.

SNP government in Scotland? Well, I absolutely agree with my honourable

:45:13.:45:15.

friend. Obviously, it is a matter for the Scottish Government to

:45:16.:45:19.

decide, but certainly one of the policy options I am looking at in my

:45:20.:45:24.

department, together with Business, is what all we can do in the energy

:45:25.:45:28.

space for those who have lost their jobs. For example, an experienced

:45:29.:45:32.

offshore engineer may well be of the region into work with offshore wind,

:45:33.:45:36.

for example, or even with nuclear. There are opportunities in the

:45:37.:45:40.

energy space, and I know that the Scottish Government are looking at

:45:41.:45:43.

this, and I would be delighted if they wanted to think again about the

:45:44.:45:46.

importance of shale gas. Topical question. Secretary of State. The

:45:47.:45:55.

Energy Bill receives Royal assent today, a vital part of the plan to

:45:56.:46:00.

make sure that families have access to clean, affordable energy, and we

:46:01.:46:03.

are delivering on a manifesto commitment to end subsidies for

:46:04.:46:08.

onshore wind. We are supporting the OGA with powers to drive greater

:46:09.:46:11.

collaboration and productivity in the industry. I would like to thank

:46:12.:46:16.

the committee, the minister who made this possible, and who went through

:46:17.:46:19.

the Bill, in such painstaking detail, to deliver it. Evidence from

:46:20.:46:27.

the universities of Leicester and York show that sick and disabled

:46:28.:46:30.

people are especially at risk of fuel poverty after the recent social

:46:31.:46:35.

security cuts from this Government and the previous coalition. Will the

:46:36.:46:38.

Secretary of State be approaching the Chancellor again to look at

:46:39.:46:42.

better targeting of the Warm Home Discount funding, especially after

:46:43.:46:47.

her rebirth just before the budget by him? I thank the honourable lady

:46:48.:46:53.

for her question and her suggestion, she will be aware that this

:46:54.:46:56.

Government and this department specifically is refocusing as far as

:46:57.:47:01.

possible our support to those who are most vulnerable. On the Warm

:47:02.:47:05.

Home Discount, we have just closed the consultation. We are looking at

:47:06.:47:08.

the results, but rest assured we will be targeting as far as possible

:47:09.:47:12.

those were most in need, which is the right thing to do. Thank you, Mr

:47:13.:47:18.

Speaker. I number of constituents are concerned about fracking in

:47:19.:47:24.

Dorset what reassurance can the Minister give to me and my

:47:25.:47:26.

constituents about Environ mental considerations, about issues of

:47:27.:47:30.

public consultation, letting residents have a say, and also that

:47:31.:47:34.

it will only be considered inappropriate locations? I can

:47:35.:47:41.

absolutely ensure my honourable friend that the UK has more than 50

:47:42.:47:45.

years of safely regulating onshore and offshore oil and gas, and we

:47:46.:47:51.

have the best regulatory environment in the world. We have the

:47:52.:47:54.

Environment Agency looking very carefully at any proposals for

:47:55.:48:01.

hydraulic fracturing, the payoff and safety executive who monitor all the

:48:02.:48:05.

activity in the area, and local authorities will of course consult

:48:06.:48:09.

widely with local communities. -- the Health and Safety Executive. I

:48:10.:48:12.

am desperate for local communities to be given the proper facts, and I

:48:13.:48:17.

think that is an important part of the job for us and local authorities

:48:18.:48:24.

to do. Mr Speaker, people across the country will be really quite

:48:25.:48:28.

concerned by the lack of answer just given by the Minister. They will

:48:29.:48:32.

also be looking very closely at Ryedale, where North Yorkshire

:48:33.:48:36.

County Council is set eminently to make a decision about whether

:48:37.:48:40.

fracking should be given the green light there. Can the Minister tell

:48:41.:48:46.

us, if the answer is no, Wilshere extend the same courtesy to that

:48:47.:48:51.

community as she has extended to communities affected by wind farms

:48:52.:48:55.

and give the people of Ryedale a promise that she will not override

:48:56.:48:58.

their wishes and impose fracking against their will? Where the

:48:59.:49:08.

industry for hydraulic fracturing is concerned, safety is absolutely

:49:09.:49:12.

paramount. If there is any likelihood or chance or any risk or

:49:13.:49:16.

any of the scare stories that the right are the lady likes to

:49:17.:49:23.

propagate, if any of those issues were real, this Government would not

:49:24.:49:27.

be looking at promoting such a vital industry. What I would say to her is

:49:28.:49:33.

that we provide 40% of our own natural gas. The rest is imported

:49:34.:49:39.

from overseas. It is vital for our energy security that we continue to

:49:40.:49:42.

use home-grown resources wherever we can. It is also a massive jobs and

:49:43.:49:48.

growth opportunity for very many communities in this country, where

:49:49.:49:53.

climate is desperately needed, and she should take some interest in

:49:54.:50:00.

that. Minister, you cannot be accused of excluding from her

:50:01.:50:02.

observations anything that might be in any way at any time to any degree

:50:03.:50:10.

material. Certainly, Benson, most grateful! Henry Smith. -- certainly

:50:11.:50:22.

comprehensive. What progress as the Minister made in working with EDF

:50:23.:50:24.

Energy with regard to the roll-out of smart meters for the benefit of

:50:25.:50:30.

consumers? I can assure my honourable friend that we are

:50:31.:50:33.

working closely with all energy suppliers on these aspects of the

:50:34.:50:37.

roll-out to ensure that the consumer benefits are fully realised. Good

:50:38.:50:42.

progress has been made so far, with over 3 million meters installed, and

:50:43.:50:45.

there is evidence that these consumers are already saving energy.

:50:46.:50:50.

Recent research by British Gas shows that consumers with smart meters

:50:51.:50:54.

have reduced energy consumption by 3% on average for gas and

:50:55.:50:58.

electricity. I hope this is a case of third time lucky, I have asked

:50:59.:51:02.

the housing minister twice this question, and I have notified the

:51:03.:51:06.

Minister's office of the question, so I hope I will get a reply. What

:51:07.:51:11.

is the difference in terms of the annual Energy Bill that a family

:51:12.:51:17.

would have to pay in a zero carbon home as opposed to a home that is

:51:18.:51:23.

insulated and has the energy efficiency standards that the

:51:24.:51:28.

Government are proposing? I think that the honourable gentleman is

:51:29.:51:32.

asking a question which starts from an incorrect premise. In so far as I

:51:33.:51:37.

am trying to answer his question, bear with me. I think what he's

:51:38.:51:42.

referring to is the zero carbon proposal that was rejected by the

:51:43.:51:45.

other place last night, although it was agreed that there would be a

:51:46.:51:50.

review on going. But the fact is that the problem with zero carbon

:51:51.:51:53.

homes, as perceived in this bill, was that they added costs to the

:51:54.:51:58.

house. If you do that, you are ultimately adding that to the house

:51:59.:52:03.

owner, the bill payer, and the problem was with the allowable

:52:04.:52:06.

solutions portion is that it would act as a tax on home-builders and

:52:07.:52:09.

ultimately be no benefit to the home owner. Thank you, Mr Speaker. The

:52:10.:52:18.

committee for climate change 2015, in its report to Parliament,

:52:19.:52:23.

recommended that the Government produces an effective policy

:52:24.:52:26.

framework on aviation carbon dioxide emissions, and part of that plan was

:52:27.:52:32.

UK emissions 2050 should not be higher than those of 2005. Will my

:52:33.:52:39.

right honourable friends tell me if her department will work with the

:52:40.:52:43.

Department for Transport to publish such an important policy before a

:52:44.:52:54.

decision on a new runway is made? Mr Speaker, my honourable friend has

:52:55.:52:57.

incorporated quite a few questions in that one question, and what I can

:52:58.:53:01.

say to her is that the most important element of addressing

:53:02.:53:04.

airport emissions is to have an international agreement. We do not

:53:05.:53:08.

want to have a situation where the UK is trying to do something

:53:09.:53:11.

independently, it is important that it is EU wide and international. We

:53:12.:53:16.

tried to get it incorporated into the Paris climate change agreement,

:53:17.:53:22.

but we're working with international partners to make sure we get an

:53:23.:53:26.

international agreement of this autumn, and I will certainly keep

:53:27.:53:31.

her updated. Rachael Maskell. I am going to pressure the Minister

:53:32.:53:34.

further, because one week tomorrow an important decision is being made.

:53:35.:53:38.

We know that one energy company wants to frack the beautiful

:53:39.:53:42.

landscape just south of the North Yorkshire Moors national park. 4000

:53:43.:53:47.

well-informed, over 4000 well-informed local people want to

:53:48.:53:51.

protect their local community and environment. Who should have the

:53:52.:53:59.

greatest influence? I say again, the shale industry is vital to the UK's

:54:00.:54:05.

energy security future, and we absolutely support the idea of local

:54:06.:54:09.

consultation and local people having their say, but as in all planning

:54:10.:54:14.

matters, as in all... If the right honourable lady could just stop

:54:15.:54:19.

chuntering for one minute, every time I try to answer a question, she

:54:20.:54:24.

just chant as! So the point is, there is a balance between the

:54:25.:54:28.

absolutely right case that local people should have their say and the

:54:29.:54:33.

national interest, and that is why there is a very clear local

:54:34.:54:37.

consultation process, and that is why the people of Ryedale will have

:54:38.:54:41.

their views taken into account, and the local authority will balance up

:54:42.:54:52.

those interests. Bob Blackman. What progress is my right honourable

:54:53.:54:55.

friends made in securing new nuclear power stations and in particular

:54:56.:55:00.

modular stations of a smaller scale? My honourable friend is right that

:55:01.:55:07.

new nuclear is an essential part of a new energy system going forward.

:55:08.:55:12.

We are supporting new nuclear, we are particularly enthusiastic about

:55:13.:55:15.

small modular reactors, which is why the Chancellor gave us double the

:55:16.:55:20.

funds for the innovation budget, and we have launched a competition which

:55:21.:55:26.

we hope will bring forward a great arrangement of different proposals

:55:27.:55:29.

so that we can take forward a number of them. Mary Creagh. See ABS to me

:55:30.:55:35.

that 7300 households in Wakefield are paying more than ?400 a year for

:55:36.:55:39.

gas and electricity than they should be because they are stuck on

:55:40.:55:43.

prepayment meters. Last month, the CMA recommended a price cap to

:55:44.:55:48.

protect my constituents from this indefensible overcharging, and this

:55:49.:55:51.

week we hear that the chief executive of the CMA is to be her

:55:52.:55:56.

department's new permanent secretary. Can we look forward to

:55:57.:55:59.

him implementing his own recommendations in the very near

:56:00.:56:00.

future? Mr Speaker, forgive me for making no

:56:01.:56:10.

comment about the appointment. I share The Right Honourable laid's

:56:11.:56:15.

view that prepaid metres need reform. That we need the safeguard

:56:16.:56:20.

tariff. It is unacceptable that those usually on the lowest income

:56:21.:56:26.

are stuck on higher tariffs. We will support them to make sure they

:56:27.:56:31.

deliver on. That Cornwall produces the world's finest China clay. The

:56:32.:56:36.

industry is facing increases in costs due to the implementation of

:56:37.:56:41.

the EU tradings scheme. The Government should do all it can to

:56:42.:56:46.

make sure British industry is not put as a disadvantage because of

:56:47.:56:51.

energy costs. Would she meet with me to discuss how we can support the

:56:52.:56:56.

China clay industry? I would be delighted to, he is a strong

:56:57.:57:02.

champion in his constituency. The ETAS provides a role in levelling

:57:03.:57:08.

out competitive within the EU to make sure our intensive industries

:57:09.:57:12.

are protected.ly meet with him to ensure his industry receives a fair

:57:13.:57:15.

settlement. Thank you, Mr Speaker. The Secretary

:57:16.:57:21.

of State will be aware of the devastating Super Puma helicopter

:57:22.:57:24.

crash in Norway less than a fortnight ago, which killed 14

:57:25.:57:29.

people, including Ian Stuart, from Lawrence Kirk. They have ditched in

:57:30.:57:35.

the North Sea three times since 2009, citing problems such as

:57:36.:57:40.

gearbox and oil pump failure. We don't know the cause of the crash on

:57:41.:57:46.

the 29th. 14 fam will be desperate to know. Will she engage with her

:57:47.:57:51.

counterparts in Norway to ensure any lessons learnt from their

:57:52.:57:56.

investigations can be applied to offshore commercial helicopter

:57:57.:57:59.

flights in the UK? Yes. I think we were all completed devastated to

:58:00.:58:04.

hear about that. Of course having been on one of those trips to an

:58:05.:58:09.

offshore rig and seeing the massive focus there is on health and safety

:58:10.:58:13.

it was doubly tragic. Of course he will be aware that the UK civil

:58:14.:58:18.

aviation authority have grounded the model involved. We are working

:58:19.:58:21.

closely with them and with colleagues in Norway to understand

:58:22.:58:25.

what has happened, so we can make sure this can't happen in the

:58:26.:58:29.

future. Thank you, Mr Speaker. Does minister

:58:30.:58:34.

agree with me that historic market towns built for the horse and cart,

:58:35.:58:39.

like my constituency, cannot cope because they don't have the

:58:40.:58:43.

infrastructure that is brought along? Well, I think, you know, I

:58:44.:58:49.

absolutely think that that is one of the factors that any local authority

:58:50.:58:52.

planning committee will take into account. That is precisely the point

:58:53.:58:57.

about having the local authority involvement with it and the

:58:58.:59:00.

community say, because of course local people know best who is --

:59:01.:59:04.

what is suitable for their area. Nevertheless, you know, the local

:59:05.:59:09.

planning aspect is one aspect of it. The health and safety and the

:59:10.:59:14.

environment agency, so a whole safety regulatory environment is

:59:15.:59:18.

vital this. I can assure her there'll be no compromise on either

:59:19.:59:23.

safety or on the local communities' views. Mr Speaker, the Secretary of

:59:24.:59:29.

State will know that we have scientific evidence that the noxious

:59:30.:59:35.

fumes from diesel engijs is poisoning our children and air. It

:59:36.:59:39.

is related to the climate change that we have?

:59:40.:59:44.

I share the honourable gentleman's concerns about pollution and about

:59:45.:59:47.

air quality. That is why this Government is so

:59:48.:59:52.

committed to delivering on the Climate Change Act. I think it is

:59:53.:59:56.

clear that the problem has been also derived from the support for diesel,

:59:57.:00:02.

which didn't, which basically we were all misled. I hope we can look

:00:03.:00:07.

carefully at making sure it doesn't happen again, that no defeat devises

:00:08.:00:12.

are installed.ly work carefully with the Department of Transport to make

:00:13.:00:15.

sure we can deliver on. That Thank you, Mr Speaker. The Secretary of

:00:16.:00:19.

State will be aware of the continuing speculation around the

:00:20.:00:25.

Hinckley C project. Will she assure me the Government will bear in mind

:00:26.:00:32.

it can create 25,000 jobs in the south west, the types of jobs this

:00:33.:00:36.

economy needs? I thank my friend for that question and the opportunity to

:00:37.:00:40.

say how much this Government supports the Hinckley project. We

:00:41.:00:45.

expect this project to go ahead and that it will deliver the much-needed

:00:46.:00:51.

clean, secure, affordable energy. This Government is focus ond a new

:00:52.:00:55.

nuclear programme, not just Hinkley Point but other new nuclear as well.

:00:56.:00:59.

We, on this side are doing what the other side of the House disally

:01:00.:01:05.

failed to do for 13 years, which is to deliver on infrastructure to the

:01:06.:01:07.

benefit of

:01:08.:01:08.

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