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Carbon Reduction

Volume 520: debated on Thursday 16 December 2010

6. What discussions he has had with representatives of business organisations on the carbon reduction commitment energy efficiency scheme. (30968)

My right hon. Friend and I regularly meet businesses to discuss climate change and energy issues. My officials are also discussing how to simplify the policy landscape with a wide range of CRC and climate change agreement participants. This will inform the proposals the coalition will bring forward next year.

I thank the Minister for his response. On energy efficiency, will he assure me that the Government will include double glazing in their green deal? Will he meet me and Pilkington glass, from St Helens, to discuss the contribution that that company can make to energy conservation and the impact that VAT increases will have on future double glazing sales in the UK?

We want the green deal to be technology inclusive. Any technology or energy efficiency measure that can pass our golden rule of providing the savings needed will be considered very kindly. We want it to be inclusive and for it to drive innovation and technology.

What reassurance can the Minister give us that he will closely consider the Government’s position to ensure that the initiative works for businesses while also driving down emissions?

Absolutely. We had to take a tough decision on the CRC to end revenue recycling, as a direct result of the state of the public finances we inherited. We are talking closely with business and will be having further discussions in the new year to ensure that it remains an efficient measure of driving forward energy efficiency in businesses. We believe that there are billions to be saved in the private sector in that way.

This week, the Secretary of State was quoted as saying that he does not mind being seen as the Tesco of energy policy, with more for less—being greener for less. Tesco, however, is one of the organisations that will be stung by the changes to the CRC that have, in effect, made it a crude stealth tax for the Chancellor rather than an intelligent driver of energy efficiency. How did Ministers surrender their green credentials to the Treasury so easily and what does this stealth tax—described politely as a “bit of a bombshell” by a local government spokesman—mean for the public sector as well as for the private sector?

The hon. Gentleman is in denial about the appalling state of public finances that we inherited from the previous Government. Yes, the coalition is taking action to reduce the deficit—absolutely. That is why we are not the basket case that we would have been had the Labour party remained in Government. The CRC will help to drive energy efficiency. We know that about £1.6 billion is still paid by large companies in the UK as a result of energy inefficiency and we hope that this measure, which will become more effective, will help to drive greater efficiency in UK plc.