0:00:40 > 0:00:47The warning that thousands of jobs could be lost as the government
0:00:47 > 0:00:57Haft the incentive for solar panel installations. And a plan to hit
0:00:57 > 0:00:57
0:00:57 > 0:37:58Apology for the loss of subtitles for 2221 seconds
0:37:58 > 0:38:02second homeowners with the 100 % Hello and welcome to the Politics
0:38:02 > 0:38:05Show in the South West. The region's solar energy boom
0:38:05 > 0:38:09could be destroyed after the government announced it is halving
0:38:09 > 0:38:13financial incentives. The warning comes from one energy expert, who
0:38:13 > 0:38:16says up to 2,000 jobs are now at risk. But the government insists it
0:38:16 > 0:38:23had to act before solar completely devoured its multi-million pound
0:38:23 > 0:38:25budget. Later on, I will be talking to Mel Stride, the Central Devon MP
0:38:25 > 0:38:34who has recently been given a government job in the business
0:38:34 > 0:38:41department, but first this report from Andrea Ormsby. Alan Moody is
0:38:41 > 0:38:49lucky. His solar power panels had been fitted with a subsidy from the
0:38:49 > 0:38:58government. But in just six weeks time, at the Budget will be cut and
0:38:58 > 0:39:06he might have had to think again. got it done at that time because
0:39:06 > 0:39:09the finances looked favourable. But the changing tariffs would have
0:39:09 > 0:39:18picked it up from seven years to 14 years, so it would definitely have
0:39:18 > 0:39:25been a much more hard decision for me to take. We have been installing
0:39:25 > 0:39:31them for five years. There was just a team of three of us then and we
0:39:31 > 0:39:41were installing 20 units a year. We now have 45 people wine-dark
0:39:41 > 0:39:43
0:39:43 > 0:39:47installing over 200 a year. this week, the government may have
0:39:47 > 0:39:55changed all that. Everyone in the industry knew it was coming. The
0:39:55 > 0:40:05shot was just how quickly it came. A I think it made devastates solar
0:40:05 > 0:40:06
0:40:06 > 0:40:10industry in the South West. could see some 2000 jobs at risk.
0:40:10 > 0:40:17While I think it was sensible for the Government to adjust prices
0:40:17 > 0:40:22will the cost of solar energy came down, but this is not the answer.
0:40:22 > 0:40:32So all panels are becoming an increasingly prominent site in the
0:40:32 > 0:40:36South West and here it is why. Instead of paying 14p for every
0:40:36 > 0:40:42kilowatt of electricity used, you're actually get given 43p for
0:40:42 > 0:40:46every kilowatt you use. It is inflation-proof and guaranteed for
0:40:46 > 0:40:5325 years. However, you do have to pay for the solar panels and the
0:40:53 > 0:41:00first place - and that is not cheap. It is however getting cheaper. It
0:41:00 > 0:41:09may have cost �15,000 in 2010 and is now down to �12,500. If you get
0:41:09 > 0:41:15the work done before December 12th, the work stands. After that, the
0:41:15 > 0:41:23tariff changes come in. For some people, that has meant a dramatic
0:41:23 > 0:41:28last-minute change of policy. had intended to put the solar
0:41:28 > 0:41:35panels across 13 buildings in a work a state. That would have let
0:41:35 > 0:41:41us pay off the borrowing and produce money for the schools which
0:41:41 > 0:41:44would have had the panels. We have had to cancel the contract. It
0:41:44 > 0:41:52means a lot of work we have Britain in the last months putting together
0:41:52 > 0:41:58these contracts and Surveys having been done and, unfortunately, the
0:41:59 > 0:42:05whole programme is up in the air. Per the Government is this over-
0:42:05 > 0:42:10generous subsidies have to be cut. People say it is simply too quick.
0:42:10 > 0:42:15We are not saying that harassed did not need to be changed. But we are
0:42:15 > 0:42:18worried that the industry could be strangled at birth by this.
0:42:18 > 0:42:23Consumers and poor neighbourhoods now think they will never have a
0:42:23 > 0:42:30chance, unless they get very rich, to have a chance to install solar
0:42:30 > 0:42:38heating and help themselves. There are certain business models which
0:42:38 > 0:42:42do not make any sense and there will be job losses in the industry.
0:42:42 > 0:42:45But we know there is still a market for low carbon technologies and we
0:42:45 > 0:42:49are extremely confident that we will continue and we are not
0:42:49 > 0:42:56planning on making any job losses are worse selves. It is not all
0:42:57 > 0:43:04doom and gloom. They are South West has seen the boom in solar energy
0:43:04 > 0:43:14and the worry is that it it may turn to bust in the light of the
0:43:14 > 0:43:15
0:43:15 > 0:43:20cutting of tariffs. I am joined now by the essential Devon MP. It is a
0:43:20 > 0:43:29bad time for doing this, isn't it? The last thing the region needs is
0:43:29 > 0:43:39more job losses. It is very important that all the good work
0:43:39 > 0:43:40
0:43:41 > 0:43:50that has been done is not blown out of the water overnight. The cost of
0:43:50 > 0:43:57an is installing the panels has changed and these have changed way
0:43:57 > 0:44:05more than anyone expected. surely have less people order the
0:44:05 > 0:44:11solar panels, then the price of them will go back up again? Well,
0:44:11 > 0:44:20the original tariff of 43 pence per kilowatt which solar panel users
0:44:20 > 0:44:25would have gained, would have to be changed. What we need is some kind
0:44:25 > 0:44:33of sustainable jobs going for word. That means getting the level of
0:44:33 > 0:44:37public subsidy right. Some people are saying it is the speed that you
0:44:37 > 0:44:42have implemented this with that is worrying. Six months is surely not
0:44:42 > 0:44:52enough? What about the people who have signed up and are now having
0:44:52 > 0:44:54
0:44:54 > 0:45:01to think twice because of the December deadline? We may well have
0:45:01 > 0:45:05to reassess, in light of the man, the level of the feed and tariff.
0:45:05 > 0:45:10But six weeks is a short time and you have got public bodies, such as
0:45:10 > 0:45:15schools and churches, who have spent a long time putting this in
0:45:15 > 0:45:23place, which can take a lot of time because many of them are listed
0:45:23 > 0:45:28buildings? Yes, up by our calculations, most of these places
0:45:28 > 0:45:35will be able to meet the deadline before December 12th. Even if they
0:45:35 > 0:45:42are after that date, existing contracts will be a factor through
0:45:42 > 0:45:46until April 2012. But this is a consultation. It finishes on
0:45:46 > 0:45:52December 23rd. And it is important that anyone who feels there in that
0:45:52 > 0:45:55position makes their views known. will have to stop you there. Thank
0:45:55 > 0:45:57you very much for joining us. Ministers have announced proposals
0:45:57 > 0:46:00which could see council tax discounts for second home-owners
0:46:00 > 0:46:04disappear altogether. All second homes used to be entitled to an
0:46:04 > 0:46:09automatic 50% discount. In 2004, though, the last government gave
0:46:09 > 0:46:19councils the option of reducing this to as little as 10%. Under the
0:46:19 > 0:46:24
0:46:24 > 0:46:34new proposals, even this would become optional. This resort is a
0:46:34 > 0:46:34
0:46:34 > 0:46:44popular place for second homes. The council asked that the council tax
0:46:44 > 0:46:50
0:46:50 > 0:46:58discount was taken off. One second- home owner said that he brings a
0:46:58 > 0:47:04lot of benefits. People coming down here from London are probably
0:47:04 > 0:47:09welfare and the are making a good use of local pubs, restaurants and
0:47:09 > 0:47:17the likes of the local golf course. They are putting money into the
0:47:17 > 0:47:25local economy. The council wants to reduce the allowance so that they
0:47:25 > 0:47:33can use the money to build more houses. If they can afford a second
0:47:33 > 0:47:42home, they should pay the same as everybody else. Why should they not
0:47:42 > 0:47:46pay the same as everyone else? some 4,000 homes a second
0:47:46 > 0:47:51properties. A report by the National Housing Federation says
0:47:51 > 0:47:56this is the most expensive area in Devon 2 by N. House prices here are
0:47:56 > 0:48:0617 % more than the average place. The district council is scrapping
0:48:06 > 0:48:12plans to cut the council tax discount. It would raise an extra
0:48:12 > 0:48:20�700,000. The district council would get to keep around one 10th
0:48:20 > 0:48:26of that. We would like to put it into the affordable housing bank,
0:48:26 > 0:48:30as a wear. It would allow us to build more affordable housing.
0:48:30 > 0:48:34say there could also use it to bring down the average council tax
0:48:34 > 0:48:36bill by around �20 the year. Martyn Oates has been at
0:48:36 > 0:48:46Westminster this week exploring the politics behind Monday's
0:48:46 > 0:48:48
0:48:48 > 0:48:52announcement. The government plans to scrap their remaining mandatory
0:48:52 > 0:49:02council tax discount for second homes has come as music to the ears
0:49:02 > 0:49:02
0:49:02 > 0:49:07of Liberal Democrats. St Ives MP says Neil Liberal Democrat pressure
0:49:07 > 0:49:17has forced the Conservatives to abandon the policy, which they
0:49:17 > 0:49:17
0:49:17 > 0:49:23themselves introduced in a previous spell in government. We have a real
0:49:23 > 0:49:27problem in some parts of Cornwall. Some parishes are 80 % second homes
0:49:27 > 0:49:32or holiday houses. That is really stopping the people of Cornwall
0:49:32 > 0:49:37accessing housing. I won local councils to be able to set a limit
0:49:37 > 0:49:47on the amount of second homes or holiday homes in any area, so that
0:49:47 > 0:49:50
0:49:50 > 0:49:55the Community can remain vibrant all the year round. People will be
0:49:55 > 0:49:59able to take into account where they may be buying a second home.
0:50:00 > 0:50:03Secondly, it is not unreasonable. What we're looking at is the
0:50:03 > 0:50:07situation where in some parts of the country there are much higher
0:50:07 > 0:50:12proportions of second homes. If you're applying the discount, as
0:50:12 > 0:50:17local authorities have to, with no choice, that means a higher
0:50:17 > 0:50:21percentage of revenue is gone. That means the rest of the council tax-
0:50:21 > 0:50:26paying public has to make up the difference. I think it is very
0:50:26 > 0:50:31reasonable to have flexibility to reflect how big an issue it is in a
0:50:31 > 0:50:36particular area. So local authorities who want to get rid of
0:50:36 > 0:50:41the discount may find themselves with a bit of a dilemma. Because
0:50:41 > 0:50:49the current system does let them allowed to identify the number of
0:50:49 > 0:50:53second homes in any area. Yes, I think with the modern advances in
0:50:53 > 0:50:59information technology there are other ways of finding out that
0:50:59 > 0:51:05information. I think you would probably find the collection costs
0:51:05 > 0:51:15are just as much as any benefit you get from it. I think it makes sense
0:51:15 > 0:51:19
0:51:19 > 0:51:22to give local councils their own discretion. There is a proposal by
0:51:22 > 0:51:29some authorities that they would like to place restrictions on
0:51:29 > 0:51:36holiday homes, so that they will more access to building homes and
0:51:36 > 0:51:44having homes available for the likes of first-time buyers. Paul we
0:51:44 > 0:51:49are in favour of his plans which give local communities more control
0:51:49 > 0:51:56over their or a areas. But you do not agree with an across-the-board
0:51:56 > 0:52:03reduction in holiday homes? Nor, I think this varies so much from a
0:52:03 > 0:52:08area to a nearby you could not do that. But it all comes to the core
0:52:08 > 0:52:13of our way of Public Finance and the housing sector. There are many
0:52:14 > 0:52:19ways that social housing and landlords have social models that
0:52:19 > 0:52:25restrictions can be attached so that the remain affordable. And may
0:52:25 > 0:52:30also have the community right to bid - - right to build - so that
0:52:30 > 0:52:32house is unavailable in the community for people on lower
0:52:32 > 0:52:35incomes. Should Prince Charles have powers
0:52:35 > 0:52:38to intervene in new laws? The question arises because a Cornwall-
0:52:38 > 0:52:41based peer has run up against the prince's powers while sponsoring a
0:52:41 > 0:52:44private members bill. Lord Berkeley, who is also harbour commissioner in
0:52:44 > 0:52:47the port of Fowey, was championing a bill on marine navigation, but
0:52:47 > 0:52:50was told as it affected the Prince of Wales' interests, it would need
0:52:50 > 0:52:54his consent. Later, I will be talking to Lord Berkeley to find
0:52:54 > 0:53:04out why this has angered him, but first let us look at how this came
0:53:04 > 0:53:04
0:53:04 > 0:53:10about. Made up of more than 150 islands, the Isles of Scilly is one
0:53:10 > 0:53:17of the largest island archipelago was in the world. Many parts of it
0:53:17 > 0:53:22alone by the Duchy of Cornwall. It is the private land holding, set up
0:53:22 > 0:53:27by the Black Prince in 1343. Historically, bills which affected
0:53:27 > 0:53:33its interests must be agreed by the Duke of Cornwall. Today, that is
0:53:33 > 0:53:43Prince Charles. A number of constituents have, quite
0:53:43 > 0:53:49understandably, have been asking questions about the manner and
0:53:49 > 0:53:57extent to which the Duchy is required to be consulted and
0:53:57 > 0:54:01whether it has an effective veto in certain areas of policy-making.
0:54:01 > 0:54:05What is also worrying people is that the Duchy has grown into a
0:54:05 > 0:54:10multi- million pound bought for mail, with the number of full-time
0:54:10 > 0:54:15employees. This housing development was built by the Duchy. It was
0:54:15 > 0:54:25heavily influenced by the Prince, with his penchant for classic
0:54:25 > 0:54:27
0:54:27 > 0:54:37architecture. The argument is that no other landowner has the sort of
0:54:37 > 0:54:37
0:54:37 > 0:54:42power to influence what goes on in the Parliament. Lord Berkeley is
0:54:42 > 0:54:45with me in the studio. You made the headlines this week when you
0:54:45 > 0:54:55discovered that this bridge procedure exists. How do due come
0:54:55 > 0:55:00about this? It affects marine navigation and ports around the
0:55:00 > 0:55:06country, which was the legislation I was wanting to put through. I got
0:55:06 > 0:55:12a letter saying that the prince would have to give his permission.
0:55:12 > 0:55:20I was a bit surprised, really, because there are 120 ports around
0:55:20 > 0:55:26the country. He, in this context, is a harbour master as the bail of
0:55:26 > 0:55:33Scilly. I was a I did not need to negotiate with any of the other
0:55:33 > 0:55:41harbour masters, but why him? the argument the thought that if
0:55:41 > 0:55:45you accept the monarchy you accept some of these rather archaic laws?
0:55:45 > 0:55:51My argument is that everyone needs to be treated fairly when we're
0:55:51 > 0:55:56looking at the likes of harbour legislation. The whole point is
0:55:56 > 0:56:01that the House represents everyone so interest and then it goes to the
0:56:01 > 0:56:06Queen for her Royal Assent. And I do not think that anyone who has an
0:56:06 > 0:56:16interest, and this is the financial interest for him after all, that he
0:56:16 > 0:56:22
0:56:22 > 0:56:32should have any input into this. The Duchy of Cornwall has said that
0:56:32 > 0:56:33
0:56:34 > 0:56:40they have never used this legislation in the past.
0:56:40 > 0:56:46appreciate that, but the Queen also has powers that she does not use.
0:56:47 > 0:56:55It is important that maybe this whole power is removed. What are
0:56:56 > 0:57:01you going to do about this? Is it the end? Absolutely not. I have put
0:57:02 > 0:57:11down a number of questions in the House of Lords asking what the
0:57:11 > 0:57:18situation is. I want clarification. And this applies to all bills, not
0:57:18 > 0:57:21just my one, which is a small one. The important thing is that
0:57:21 > 0:57:28everyone should be treated it equally and it should be
0:57:28 > 0:57:30transparent. The Duchy of Cornwall told us,
0:57:30 > 0:57:32"there is nothing new or secret about a long-established
0:57:32 > 0:57:35Parliamentary convention" which, it says, "is not about seeking the
0:57:35 > 0:57:38personal views of the Prince but...would have applied equally to
0:57:38 > 0:57:42his predecessors." And the Cabinet Office told us there are no plans