London Liberal Democrats

Rogerson on Feed-in Tariffs

• [Nov 23] Dan Rogerson (North Cornwall, Liberal Democrat): THE introduction of the feed-in tariff came about after a long campaign by the parties now in Government and by many people out in the community who had seen the gains that had been made in Germany. We keep coming back to the German example. I am sure that any German people watching this debate will feel very smug that much of it is about what they have achieved there. I was a member of the Environment and Climate Change Committee during the previous Parliament, and we went over there to look what had been achieved in Baden-Württemburg and Freiburg, as well as in Stuttgart, where the panels were being produced.

Labour Members on the Committee-who at that time were Government Members-were very impressed but despairing that their party would not listen. I remember the debates in this place when the feed-in tariff was raised repeatedly, and some Labour Back Benchers were bravely standing up and defying the Whips to argue for it. We have to remember that were it not for what happened in another place we would not have made the progress towards the feed-in tariff that we have. Caroline Flint talks about the wonderful achievements of her Government and her conversion to believing in the feed-in tariff, but whatever she says about Malcolm Wicks-

Katy Clark (North Ayrshire and Arran, Labour): Does the hon. Gentleman accept that it was 60 Labour Members signing an amendment and negotiating hard within our party to get signed up to feed-in tariffs that led the Labour Government to introduce the legislation?

Dan Rogerson (North Cornwall, Liberal Democrat): I have already paid tribute to Labour Back Benchers who were arguing for the tariff-but I am talking about Labour Front Benchers and the official policy of the then Government until that point, which was to reject it. Obviously, that is a matter of historical record.

We now have the feed-in tariff in operation. As a Member of Parliament for Cornwall, where there are huge possibilities for the solar industry and fantastic

community groups are coming together in the co-operative sector to drive this forward, I am very pleased that we have seen such growth. However, I am looking to Ministers to give a positive and consistent message on solar, because there is confusion out there, and that is damaging. The Secretary of State made a strong speech today setting out a clear direction. However, confidence has undoubtedly been affected by, as the Secretary of State would say, the success of the scheme, because there has been such a high take-up and high capacity.

Stephen Lloyd (Eastbourne, Liberal Democrat): On that subject, does my hon. Friend agree that one concern for many solar and renewables companies who have bought in to the green agenda is that they never know for sure whether the Government will change their mind midway through? Does he agree that this decision, though economically understandable, may feed that concern?

Dan Rogerson (North Cornwall, Liberal Democrat): That is the thrust of what has been said by several Government Members, and indeed Opposition Members, who have raised concerns. We accept the need to act, but we must ensure that there is now a consistent vision so that the message gets across.

I am excited about the possibilities. I believe that in the longer term, the message will be much better in terms of how much will be added to the bills of those who cannot take advantage of feed-in tariffs, because we will see a break-up of the small oligopoly of the big six energy producers and there will be a far more dispersed system. That will ultimately provide more competition and drive down price. Clearly the Secretary of State has been looking at this economic model, and he has to consider how much money is in the budget. I advise him to continue to focus on costs being put on to other domestic bills. I think that we can be far more positive about the long-term implications of this policy for all energy bill payers. If we have a far more diverse mix, it will create further competition and drive down prices, or at least will resist the upward trend in prices that we have had because of the issues with fossil fuels.

Huw Irranca-Davies (Ogmore, Labour): I ask the hon. Gentleman to agree, if not with Opposition Members, with that very good group within the Liberal Democrats, the Green Liberal Democrats, and with Welsh Liberal Democrat Assembly Members, who have written to the Secretary of State to ask him to delay this decision to ensure that there is an effective transition. That seems to be wholly good sense as a bare minimum. Will he agree with them and then support us in the Lobby to vote for the motion?

Dan Rogerson (North Cornwall, Liberal Democrat): As for how I will vote, I have looked at the motion and I am waiting to hear the Government's position in the summing up. I have a number of issues, such as the need for certainty and the effect of the cliff edge in December, which other hon. Members have talked about. That is the real problem for investors. It would be very welcome if, in looking at the consultation, the Government could come up with any means of tapering that effect, particularly to help the community schemes and social housing schemes that are considering exciting ways to involve tenants and whole communities in taking advantage of the scheme. Those are people who might not be able to do so on their own, because they are not capital-rich enough.

• Christopher Huhne : We would like to do that, but the legal basis for doing so is simply not there in the scheme that was introduced by the last Labour Government.

John Robertson (Glasgow North West, Labour): Change it.

• Christopher Huhne : Well, we could do that, but it would have to be part of the longer-term consultation on the comprehensive review, which we will carry out.

Dan Rogerson (North Cornwall, Liberal Democrat): I thank my right hon. Friend for that intervention, as far as it goes. I hope that a huge amount of effort will be devoted to putting that problem right very quickly.

As other Members want to speak and as I have taken so many interventions, I will be brief. One other issue that I want to focus on, which has not been raised, is the concentration on energy efficiency for people who want to take advantage of the tariff. That is hugely problematic in areas such as mine that have older housing stock, which it will be very difficult to get up to the standard. I do not think that there is-

• Christopher Huhne : rose-

Dan Rogerson (North Cornwall, Liberal Democrat): I will not give way, but the Minister will have a chance to respond in his summing up.

Caroline Flint (Don Valley, Labour): Will the hon. Gentleman give way?

Dan Rogerson (North Cornwall, Liberal Democrat): I will not, because I need to complete this point.

I do not think that we need to connect this matter with energy efficiency so intimately. In the green deal and other schemes, there are advantages and pressures to encourage people to consider energy efficiency measures. I think that linking these things is unhelpful, particularly for people in areas such as mine.

Although I welcome the Secretary of State's commitment to move forward with this scheme and the vision for solar that he has set out, I urge him to consider other means for getting the sector to grid price parity, so that we can have confidence that the sector will continue to grow in a sustainable way.

. . Alan Campbell (Tynemouth, Labour): claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put. Question agreed to . Question put accordingly (Standing Order No. 31(2) and Order, 14 November ), That the original words stand part of the Question. The House divided:Ayes 226, Noes 297. Question accordingly negatived. Question put forthwith (Standing Order No. 31(2) and Order, 14 November ), That the proposed words be there added. The House divided: Ayes 292, Noes 220. Question accordingly agreed to.

The Deputy Speaker declared the main Question, as amended, to be agreed to (Standing Order No.31(2) and Order, 14 November)

Resolved,

That this House notes that the previous administration only introduced a feed-in tariffs scheme following pressure from Liberal Democrat and Conservative hon. Members; further notes that during the period up to October 2011 over 120,000 UK solar installations had been completed; further notes that this is three times the deployment expected by the previous administration; recognises that no commercial-scale solar PV schemes were expected by the previous administration; further notes that the cost of PV panels has fallen by at least 30 per cent. since the current tariff was introduced and that the previous administration set the tariff levels for solar PV to deliver a five per cent. index-linked return;

regrets that the previous administration did not draw on the experiences of Germany in setting a sustainable and predictable digression of tariffs; further notes that failing to act could add £26 to the domestic electricity bill of all consumers in 2020 including the 5.5 million people left in fuel poverty by the previous administration; further regrets that the previous administration did not introduce a community tariff; believes that the Government is right to bring the tariff levels back in line with the rates of return envisaged; acknowledges that it is right to link support under feed-in tariffs to energy efficiency and the Green Deal ensuring the most cost-effective carbon abatement measures are introduced first; supports a consultation on the introduction of a community tariff; and further believes that the Government is putting feed-in tariffs on a long-term, fair and sustainable footing.

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