12:49 Caroline Flint (Don Valley) (Lab)

The Minister for Business and Enterprise is not in his seat, but I do want to welcome him and the Under-Secretary of State for Energy and Climate Change, the hon. Member for Hastings and Rye (Amber Rudd), who is present, to their new posts and wish them well for what I hope and expect will be their remaining eight months in office.

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14:19 David T. C. Davies (Monmouth) (Con)

Let me make another apology for being one of the Members of Parliament who voted for the Climate Change Act 2008, which underpins some of the issues alluded to by Members in all parts of the House. As the Secretary of State said in his closing remarks, what we want now is cheap energy prices for people. Of course, we have to take the energy companies to task over bad behaviour. There has apparently been some confusion as to whether Ofgem does or does not ultimately have the power to remove their licences. He says that it can. He challenged, unsuccessfully, the right hon. Member for Don Valley (Caroline Flint) to say under what circumstances she thought that it should have further powers. She did not wish to reply, so I am inclined to agree with him on this occasion. It does have the power, in the most extreme circumstances, to remove licences, and it is absolutely right that it should. It is not a power, though, that should be used lightly.

The real concern is that energy prices are too high. The reason is that all of us—or most of us—voted for the Climate Change Act, which has forced the Government to bring in all sorts of green taxes and subsidies that have pushed prices up. The Government now have a policy of rolling back some of the green taxes which Labour Members enthusiastically supported and which have pushed up prices. There is no getting away from that. Labour Members will not be able to do anything about the wholesale price of fossil fuels or of any other energy source, but they could do something about taxes. Any sustainable cut in prices to the consumer and to businesses will have to be underpinned by cutting back on green taxes.

I welcome the fact that the Leader of the Opposition and the shadow climate change Minister are trumpeting these issues. That is absolutely fantastic. It plays straight into the hands of people such as me—climate change sceptics—that Labour Members are making a huge issue out of energy prices. They are no longer worried about trying to outbid the Government on who has the greenest policies but trying to show who is going to deliver the cheapest energy prices. I say, “Great”, because I know that whoever is in government at the next election will be able to do that only by cutting back on green taxes.

I did not vote for the Climate Change Act, knowingly. Whatever one’s position on green levies, it is a bit rich for the hon. Gentleman to support a Government who have fixed energy prices for the next decades when nobody can predict the price of energy. That guarantees that people will pay higher prices or greater subsidies because of the strike price. The latest predictions of Aurora, a well-known consulting company, suggest that prices are likely to be half what the Government say, and that will mean larger subsidies. Does he still support the Government on those policies?

That is absolutely right. I do not wish to stray too far from the debate, but it is interesting what has happened in Germany, where people decided to get rid of nuclear power stations in order to follow a more environmental policy and ended up burning large quantities of lignite, which has increased their carbon dioxide emissions. That proves that these green policies do not even end up having the consequences that those calling for them want.

When one looks at how the benefits break down, one sees that 48% of the benefits are due to cheaper costs for the energy companies, which I suppose is fairly accurate: there will be fewer visits—and fewer jobs probably, but there we are—and a cut in bureaucracy. That accounts for about half the cost, but that is still only about £8 billion-worth of benefits. The rest all seem nebulous: 33% of the benefit will be due to people using less energy because it will cost more. In fact, therefore, it is being counted as a benefit that people will use less gas and electricity partly because the price of the smart meter will have been added to their bills. A further 8% of the benefits will be due to the fact that somebody somewhere along the line will pay lower carbon taxes on energy that will not have been used. If that is a benefit, the solution is very simple, isn’t it? Don’t bother with Bob, Leccy, Gaz and the quango—just cut the taxes in the first place and leave it all out.

The right hon. Lady was asked twice by the Secretary of State whether she agreed that that ultimate sanction exists but cannot be used lightly, but she did not respond. I am left wondering why she is suddenly picking on me. I am not the Energy and Climate Change Secretary. I wish I were—we would have some very different polices if that came about, I can tell you. I see that the Whip sitting in front of me is writing loads of notes as I speak. I hope he will feed back the suggestion that I am open to offers as far as the climate change role is concerned. In the meantime, I suggest that the right hon. Lady deals directly with the Secretary of State.

It is not rising temperatures that are causing people angst at the moment; it is rising energy bills. There seems to be widespread recognition of that. I am only a Back Bencher and I am sure I will stay one for many years to come, if the Whips have their way. I have to say that we all, including me, got it wrong on climate change. I have looked at the evidence and the evidence is not there to support the policies we have all put in place. Although others might not be able to come out and say, “We got it wrong: the temperatures aren’t rising,” the fact that we are now talking about energy bills and increases in costs rather than increases in temperature suggests that we are heading slowly in the right direction with this particular argument, so I would welcome many more debates such as this one.

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15:26 Jonathan Reynolds (Labour)

I am not quite sure where to begin when it comes to the hon. Member for Monmouth (David T. C. Davies). Let me respectfully say to him on the issues of climate change—without going too far away from the motion—that the 10 warmest years on record are clearly those of recent times. People who express climate scepticism—I am sure the hon. Gentleman would not mind me saying this—are likely to be those who are relatively sceptical about the powers of big government. The hon. Gentleman probably does not believe that making direct state interventions is the way to solve the world’s problems. He mentioned the smart meter roll-out in that context. If we look at the countries involved in the UN Intergovernmental Panel on Climate Change—countries as diverse as Switzerland, China, Australia, Japan, the USA, India, Germany, Russia and Norway—is it possible or conceivable that the scientists from all those countries have got together and decided to hoax us in this grand fashion? I cannot believe that anyone with the hon. Gentleman’s scepticism would accept that position so readily.

My hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) wonderfully highlighted some of the inconsistencies behind Government policy on quite a few issues. The right hon. Member for Wokingham (Mr Redwood) and, indeed, the hon. Members for Monmouth and for Warrington South repeated what has become the siren call from the Tory right—perhaps soon to become the UKIP left—arguing that the pressure on energy prices is somehow related to the conversion to renewable energy. I am afraid that those claims do not add up. The Government’s figures on policies such as the renewable obligation cannot possibly explain the rise in energy bills that we have seen in recent years. Through such policies, we get safety in energy and obtain much greater energy security. What is more, renewable energy sources have nothing of the price volatility we see in international gas markets. As Dale Vince, the chief executive of Ecotricity, recently remarked,

There is not a tension between the pursuit of affordability and the pursuit of decarbonised energy supplies—or, at least, there is not a problem that we cannot resolve. Yes, renewable energy is more expensive than, for instance, coal, on which the hon. Gentleman may be particularly keen, but surely that makes the transparency of our energy market more rather than less important. The need for us to ensure that there is a downward pressure on energy prices becomes more of an imperative when we are making that transition.

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