Ann McKechin MP

Labour Member of Parliament for Glasgow North

Climate Change and Sustainable Energy Bill - 12 May 2006

I, too, extend my sympathies to my hon. Friend the Member for Edinburgh, North and Leith (Mark Lazarowicz) and condolences to his family.

I am delighted to support the Bill, which has received support not only in Parliament, but from hundreds of our constituents, who have written to us to express their hope that it gets through Parliament during the current Session. I commend my hon. Friend for his hard work and dedication to passing the Bill through the House of Commons. It marks an important step by Parliament in ensuring that energy efficiency and the increase in renewable sources remain high on our political agenda.

The reasons for that priority have been well stated, and they include the effects of climate change and the increase in energy costs in the past few years, particularly for oil and gas. I welcome the proposals as part of the important effort to ensure that the gains we have made in the past few years to eliminate fuel poverty are not lost. A recent report by Energy Action Scotland highlighted the scale and complexity of the task in future fuel poverty schemes. Scotland faces unique problems. In 2003, average earnings were 12 per cent lower than in England. As a result of the difference in climate, it has a much longer heating season: a home in the north of Scotland may spend 68 per cent more on fuel a year than an equivalent property in the south of England. In London we are basking in unusually high temperatures for May, but this weekend, temperatures in the north of Scotland are predicted to drop to minus 5° C at night,which demonstrates the difference in temperatures throughout the United Kingdom.

Scotland has many properties that are not on the main gas grid, and they are not likely to be connected. Although gas central heating is the most effective measure in removing a house from fuel poverty, 33 per cent. of homes in Scotland do not have any gas, because either they are located in remote rural locations or they are high-rise accommodation, where it is not appropriate to use gas. The nature, type and design of housing is different from housing in England. Although about 70 per cent. of houses in both countries have cavity walls, in Scotland, 23 per cent. are traditional sandstone or granite houses, with an additional 10 per cent. classified as non-traditional. All of those are hard to heat.

Energy Action Scotland has identified three main factors that contribute to fuel poverty, and we should not find any of them surprising. The first factor is domestic fuel prices; on average, a 5 per cent. rise in fuel prices results in a further 30,000 households being pushed back into fuel poverty. Secondly, disposable income is important. The third factor is energy efficiency.

Mr. Newmark: The hon. Lady is right. The problem of fuel poverty has been exacerbated by the increase in energy prices, which have risen by 37 per cent. in the past year alone. Does she share my distress that in the Budget the Chancellor did not extend the £200 council tax rebate, which was needed by many pensioners in fuel poverty?

I remind the hon. Gentleman that we have retained the winter fuel payment, which is specifically designed to tackle fuel poverty. We have also lowered the barrier for the additional hardship payment. When the Opposition were in government, the same guide temperature was used for Brighton as for the north of Scotland.

Mr. Newmark: The hon. Lady makes an extremely valid point. However, the winter fuel payment did not increase substantially, and this year pensioners lost the £200 that they received last year, even though fuel prices went up by 37 per cent. There was a double whammy—fuel prices went up, but pensioners’ council tax rebate was £200 lower.

Mr. Deputy Speaker: Order. The hon. Gentleman should not pursue that point too far.

Thank you, Mr. Deputy Speaker. I am pleased to say that in Glasgow there was a zero increase in council tax this year. In the previous five years there was only an inflation rise, so we benefit from good Labour authorities in our area.

Energy efficiency schemes have made significant progress, both in Scotland and throughout the United Kingdom, but recently there has been a rise infuel prices, as the hon. Member for Braintree(Mr. Newmark) rightly pointed out. That is probably a permanent trend, and it threatens progress, which is why we urgently need a step change in the energy-saving initiatives that the Bill tries to foster. To achieve that, we need to make sure that all levels of government are firmly committed to improving current regulation and practice. In The Guardian on Wednesday, there was an article on the possibility that the parliamentary estate may introduce measures to increase renewable energy sources. We must wait to see whether that happens, and whether wind turbines or solar panels will be installed on the House, although progress tends to be slow when we make changes to the parliamentary estate. Parliament can make practical suggestions to achieve quick changes, but we must also address systemic issues.

Electrical appliances are increasingly left on standby. Amazingly, in some countries, that represents up to 5 per cent of total electricity consumption. Reducing standby consumption to 1 W is a simple change, but it would make a substantial difference, enabling us to close down one or two power stations. Tackling the often bureaucratic arrangements to sell excess energy from renewable sources to the national grid would improve matters. The Bill’s modification of Ofgem’s statutory duties to take into account available information on microgeneration is a step in the right direction. We must improve the investment climate for renewable energy technologies and provide additional long-term funding, both for those technologies and for insulation, which is important in hard-to-heat buildings.

Training must be improved to meet current demands—anyone who has tried to find a central heating engineer will know that they are in short supply—and we must also greatly increase capacity and the range of skills, so that engineers can deal with the new technologies that are likely to come on to the market.

Sir Robert Smith (West Aberdeenshire and Kincardine) (LD): The hon. Lady is making a thoughtful speech on the impact of the Bill, whose measures many of our constituents support. She has made an important point: skills and knowledge are needed not just to install the new equipment but to give customers the reassurance and confidence to take the step of acquiring it. Until they are willing to do that, we cannot achieve those targets.

I fully accept that important argument. Consumers need to be confident that new technology will work. I recently had a conversation with the hon. Member for Edinburgh, West about new types of central heating boiler and their propensity to break down compared with the old-fashioned, less energy-efficient boilers that worked remarkably well. Over the years, new technology has made cars much more efficient and reliable. They may not be as exciting, but consumers are much more likely to buy them, because they are reliable. Throughout manufacture and production, there should be an emphasis on reliability, consistent standards and clear labelling. As has been said, this is a cross-cutting issue that covers all areas of consumption.

Finally, as a report by the Select Committee on Scottish Affairs recommended in the last Session, we must carry out a comprehensive analysis of the sources of renewable energy in the UK, including wind, solar energy, biomass and geothermal energy, so that we can inform the choices and decisions of local communities and make sure that further major developments are as energy-neutral as possible. We should aim to generate energy in such developments, to reduce the demand on the national grid as much as possible.

Again, I welcome the Bill, which plays an important part in taking the debate forward in Parliament, throughout government, among the electorate and in the country, where there is a huge question mark over how we should proceed. The energy review later this year will play an important part in trying to focus that public debate, and I very much hope that the Bill will complete its passage through Parliament later this year.


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