06/11/2011 The Politics Show South West

The warning that thousands of jobs could be lost as the government

Haft the incentive for solar panel installations. And a plan to hit

Apology for the loss of subtitles for 2221 seconds

second homeowners with the 100 % Hello and welcome to the Politics

Show in the South West. The region's solar energy boom

could be destroyed after the government announced it is halving

financial incentives. The warning comes from one energy expert, who

says up to 2,000 jobs are now at risk. But the government insists it

had to act before solar completely devoured its multi-million pound

budget. Later on, I will be talking to Mel Stride, the Central Devon MP

who has recently been given a government job in the business

department, but first this report from Andrea Ormsby. Alan Moody is

lucky. His solar power panels had been fitted with a subsidy from the

government. But in just six weeks time, at the Budget will be cut and

he might have had to think again. got it done at that time because

the finances looked favourable. But the changing tariffs would have

picked it up from seven years to 14 years, so it would definitely have

been a much more hard decision for me to take. We have been installing

them for five years. There was just a team of three of us then and we

were installing 20 units a year. We now have 45 people wine-dark

installing over 200 a year. this week, the government may have

changed all that. Everyone in the industry knew it was coming. The

shot was just how quickly it came. A I think it made devastates solar

industry in the South West. could see some 2000 jobs at risk.

While I think it was sensible for the Government to adjust prices

will the cost of solar energy came down, but this is not the answer.

So all panels are becoming an increasingly prominent site in the

South West and here it is why. Instead of paying 14p for every

kilowatt of electricity used, you're actually get given 43p for

every kilowatt you use. It is inflation-proof and guaranteed for

25 years. However, you do have to pay for the solar panels and the

first place - and that is not cheap. It is however getting cheaper. It

may have cost �15,000 in 2010 and is now down to �12,500. If you get

the work done before December 12th, the work stands. After that, the

tariff changes come in. For some people, that has meant a dramatic

last-minute change of policy. had intended to put the solar

panels across 13 buildings in a work a state. That would have let

us pay off the borrowing and produce money for the schools which

would have had the panels. We have had to cancel the contract. It

means a lot of work we have Britain in the last months putting together

these contracts and Surveys having been done and, unfortunately, the

whole programme is up in the air. Per the Government is this over-

generous subsidies have to be cut. People say it is simply too quick.

We are not saying that harassed did not need to be changed. But we are

worried that the industry could be strangled at birth by this.

Consumers and poor neighbourhoods now think they will never have a

chance, unless they get very rich, to have a chance to install solar

heating and help themselves. There are certain business models which

do not make any sense and there will be job losses in the industry.

But we know there is still a market for low carbon technologies and we

are extremely confident that we will continue and we are not

planning on making any job losses are worse selves. It is not all

doom and gloom. They are South West has seen the boom in solar energy

and the worry is that it it may turn to bust in the light of the

cutting of tariffs. I am joined now by the essential Devon MP. It is a

bad time for doing this, isn't it? The last thing the region needs is

more job losses. It is very important that all the good work

that has been done is not blown out of the water overnight. The cost of

an is installing the panels has changed and these have changed way

more than anyone expected. surely have less people order the

solar panels, then the price of them will go back up again? Well,

the original tariff of 43 pence per kilowatt which solar panel users

would have gained, would have to be changed. What we need is some kind

of sustainable jobs going for word. That means getting the level of

public subsidy right. Some people are saying it is the speed that you

have implemented this with that is worrying. Six months is surely not

enough? What about the people who have signed up and are now having

to think twice because of the December deadline? We may well have

to reassess, in light of the man, the level of the feed and tariff.

But six weeks is a short time and you have got public bodies, such as

schools and churches, who have spent a long time putting this in

place, which can take a lot of time because many of them are listed

buildings? Yes, up by our calculations, most of these places

will be able to meet the deadline before December 12th. Even if they

are after that date, existing contracts will be a factor through

until April 2012. But this is a consultation. It finishes on

December 23rd. And it is important that anyone who feels there in that

position makes their views known. will have to stop you there. Thank

you very much for joining us. Ministers have announced proposals

which could see council tax discounts for second home-owners

disappear altogether. All second homes used to be entitled to an

automatic 50% discount. In 2004, though, the last government gave

councils the option of reducing this to as little as 10%. Under the

new proposals, even this would become optional. This resort is a

popular place for second homes. The council asked that the council tax

discount was taken off. One second- home owner said that he brings a

lot of benefits. People coming down here from London are probably

welfare and the are making a good use of local pubs, restaurants and

the likes of the local golf course. They are putting money into the

local economy. The council wants to reduce the allowance so that they

can use the money to build more houses. If they can afford a second

home, they should pay the same as everybody else. Why should they not

pay the same as everyone else? some 4,000 homes a second

properties. A report by the National Housing Federation says

this is the most expensive area in Devon 2 by N. House prices here are

17 % more than the average place. The district council is scrapping

plans to cut the council tax discount. It would raise an extra

�700,000. The district council would get to keep around one 10th

of that. We would like to put it into the affordable housing bank,

as a wear. It would allow us to build more affordable housing.

say there could also use it to bring down the average council tax

bill by around �20 the year. Martyn Oates has been at

Westminster this week exploring the politics behind Monday's

announcement. The government plans to scrap their remaining mandatory

council tax discount for second homes has come as music to the ears

of Liberal Democrats. St Ives MP says Neil Liberal Democrat pressure

has forced the Conservatives to abandon the policy, which they

themselves introduced in a previous spell in government. We have a real

problem in some parts of Cornwall. Some parishes are 80 % second homes

or holiday houses. That is really stopping the people of Cornwall

accessing housing. I won local councils to be able to set a limit

on the amount of second homes or holiday homes in any area, so that

the Community can remain vibrant all the year round. People will be

able to take into account where they may be buying a second home.

Secondly, it is not unreasonable. What we're looking at is the

situation where in some parts of the country there are much higher

proportions of second homes. If you're applying the discount, as

local authorities have to, with no choice, that means a higher

percentage of revenue is gone. That means the rest of the council tax-

paying public has to make up the difference. I think it is very

reasonable to have flexibility to reflect how big an issue it is in a

particular area. So local authorities who want to get rid of

the discount may find themselves with a bit of a dilemma. Because

the current system does let them allowed to identify the number of

second homes in any area. Yes, I think with the modern advances in

information technology there are other ways of finding out that

information. I think you would probably find the collection costs

are just as much as any benefit you get from it. I think it makes sense

to give local councils their own discretion. There is a proposal by

some authorities that they would like to place restrictions on

holiday homes, so that they will more access to building homes and

having homes available for the likes of first-time buyers. Paul we

are in favour of his plans which give local communities more control

over their or a areas. But you do not agree with an across-the-board

reduction in holiday homes? Nor, I think this varies so much from a

area to a nearby you could not do that. But it all comes to the core

of our way of Public Finance and the housing sector. There are many

ways that social housing and landlords have social models that

restrictions can be attached so that the remain affordable. And may

also have the community right to bid - - right to build - so that

house is unavailable in the community for people on lower

incomes. Should Prince Charles have powers

to intervene in new laws? The question arises because a Cornwall-

based peer has run up against the prince's powers while sponsoring a

private members bill. Lord Berkeley, who is also harbour commissioner in

the port of Fowey, was championing a bill on marine navigation, but

was told as it affected the Prince of Wales' interests, it would need

his consent. Later, I will be talking to Lord Berkeley to find

out why this has angered him, but first let us look at how this came

about. Made up of more than 150 islands, the Isles of Scilly is one

of the largest island archipelago was in the world. Many parts of it

alone by the Duchy of Cornwall. It is the private land holding, set up

by the Black Prince in 1343. Historically, bills which affected

its interests must be agreed by the Duke of Cornwall. Today, that is

Prince Charles. A number of constituents have, quite

understandably, have been asking questions about the manner and

extent to which the Duchy is required to be consulted and

whether it has an effective veto in certain areas of policy-making.

What is also worrying people is that the Duchy has grown into a

multi- million pound bought for mail, with the number of full-time

employees. This housing development was built by the Duchy. It was

heavily influenced by the Prince, with his penchant for classic

architecture. The argument is that no other landowner has the sort of

power to influence what goes on in the Parliament. Lord Berkeley is

with me in the studio. You made the headlines this week when you

discovered that this bridge procedure exists. How do due come

about this? It affects marine navigation and ports around the

country, which was the legislation I was wanting to put through. I got

a letter saying that the prince would have to give his permission.

I was a bit surprised, really, because there are 120 ports around

the country. He, in this context, is a harbour master as the bail of

Scilly. I was a I did not need to negotiate with any of the other

harbour masters, but why him? the argument the thought that if

you accept the monarchy you accept some of these rather archaic laws?

My argument is that everyone needs to be treated fairly when we're

looking at the likes of harbour legislation. The whole point is

that the House represents everyone so interest and then it goes to the

Queen for her Royal Assent. And I do not think that anyone who has an

interest, and this is the financial interest for him after all, that he

should have any input into this. The Duchy of Cornwall has said that

they have never used this legislation in the past.

appreciate that, but the Queen also has powers that she does not use.

It is important that maybe this whole power is removed. What are

you going to do about this? Is it the end? Absolutely not. I have put

down a number of questions in the House of Lords asking what the

situation is. I want clarification. And this applies to all bills, not

just my one, which is a small one. The important thing is that

everyone should be treated it equally and it should be

transparent. The Duchy of Cornwall told us,

"there is nothing new or secret about a long-established

Parliamentary convention" which, it says, "is not about seeking the

personal views of the Prince but...would have applied equally to

his predecessors." And the Cabinet Office told us there are no plans