12:43 Christopher Chope (Conservative)

Regulatory impact assessments lie at the core, or should lie at the core, of policymaking and public legislation. If the tool if a regulatory impact assessment is not properly applied, the quality of the legislation suffers. We have seen a large number of examples of that. Perhaps one of the most telling is that we have legislated for net zero without ever really going through the full implications of what it will entail. I have the privilege of serving on the Environmental Audit Committee. It is willing to discuss almost everything on the environment, but it is not prepared to engage in an inquiry into an audit of the costs and benefits of net zero. The Government should have introduced an audit of the costs and benefits of net zero before the legislation was passed. The same is true of the Climate Change Act 2008. It is also true of HS2. There was never a proper cost-benefit analysis regulatory impact assessment of HS2.

This is not written into the Bill, but if the cost-benefit analysis in a Minister’s impact assessment shows that the cost outweighs the benefit, what does my hon. Friend feel should happen as a result? He will remember that when the Labour Government introduced the Bill that became the Climate Change Act 2008, they had done an impact assessment and a cost-benefit analysis. By their own admission, the costs were twice as big as the benefits, yet they pressed on with the Bill anyway. Is my hon. Friend saying that where the costs outweigh the benefits the Government should do something about it, or is it enough just to publish the analysis?

I think it is sufficient to publish it. It is then for Members of Parliament to look at what it contains, including the costs. My hon. Friend and I were two of the five people who voted against the Climate Change Bill on Third Reading. Why did we vote against it? Because we could see that the costs would far outweigh the benefits. We had read the impact assessments—well, I cannot remember reading them at the time, I must say, but I had the very strong feeling that we were entering unknown territory and the costs would be very significant. I am not saying that we should not bring forward legislation when the costs are greater than the benefits; I am saying that Members of Parliament should be able to take responsibility and say to Ministers, “Why are you bringing forward legislation whose costs will be far greater than the benefits?”

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13:17 Philip Davies (Shipley) (Con)

I want to come back to the reason why what my right hon. Friend the Member for Tatton said earlier might not flow, though it logically should. She said that if we have a cost-benefit analysis, MPs can scrutinise things and make sensible decisions on whatever. I guess in an ideal world that would happen, but it seems to me that in the real world that does not happen. The House should not just take my word for it, because it did not happen during the passing of the Climate Change Act 2008.

As I touched on briefly in my intervention, when the Labour Government brought forward the Climate Change Bill, they did a cost-benefit analysis, as my hon. Friend the Member for Christchurch would have urged them to do. These were not meaningless numbers—we were talking serious money, and literally hundreds of billions of pounds were in the credit and debit columns on this cost-benefit analysis. It was not one with a few hundred thousand here or a few million there.

The Labour Government at the time brought forward the Climate Change Bill with a cost-benefit analysis, as my hon. Friend the Member for Christchurch would have wanted. The original impact assessment showed that the potential costs of introducing the Climate Change Bill were almost twice the maximum benefits, as calculated by the Government who were bringing forward the legislation. One would think that when a Government bring forward a Bill where the potential costs are twice as high as the maximum benefits, Members of Parliament would be fighting over themselves to vote it down. How on earth could anybody support such a ridiculous notion, let alone why a Government would bring forward such a Bill? However, on Second Reading just five MPs voted against it, when a cost-benefit analysis showed it was a non-starter.

I am not sure the Bill succeeds on any level. The Climate Change Act 2008 showed me two things. First, the Government will come back with any figures they want just to prove there is a bigger benefit than cost, even if that is dubious, to say the least. Secondly, Members of Parliament are not even interested in cost-benefit analysis. If they were, more than five of us would have voted against the Bill on Second Reading. I am not being funny, Mr Deputy Speaker, but if you go into the voting Lobby and ask people what we are voting on, half the time they do not know, let alone know the cost-benefit analysis of what they are voting on, so I am not sure that a cost-benefit analysis would serve the purpose that my hon. Friend the Member for Christchurch thinks it would. Therefore, I think the Climate Change Act 2008 represents an argument against his Bill.

I am afraid to say that, frankly, that is not going to change until Members of Parliament raise their game, to be perfectly honest. I am not particularly pinning the blame on the Government. They do their thing and their job is to get through what they want to get through. The people who should be holding the Government to account are us—those on these Back Benches and on the Opposition Benches. Our solemn duty is to hold the Government of the day to account, yet my point is that we are absolutely hopeless at doing so. As I have said, during the passage of the Climate Change Act, nobody was interested in the cost-benefit analysis. They were just voting for it like sheep because they thought it would be popular, or because there had been an email campaign encouraging them to do so. They were not doing the job they were paid to do, which was to scrutinise the legislation.

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13:54 Kevin Hollinrake (Conservative)

My hon. Friend the Member for Christchurch mentioned some of the legislation that has not necessarily been accompanied by an impact assessment. He may want to ask questions of the different Ministers responsible for the policy areas concerned: net zero, HS2, and renters’ reform. For something as strategic as net zero, for example, it is hugely complex to identify both costs and benefits: there are some things that we simply do not know. While listening to my hon. Friend speak about those issues, a famous quote from the former Chinese Premier Zhou Enlai came to mind: in 1972, he was asked about the impact of the French revolution, and he said, “It’s too early to tell.” There are so many things that we just do not know, which I think was a point raised by my hon. Friend the Member for Shipley. As I used to say in our boardroom, “You can make anything look good on a spreadsheet”, so we have to cast a critical eye over any cost-benefit analysis.

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14:13 Christopher Chope (Conservative)

That was expanded on by my hon. Friend the Member for Shipley (Philip Davies), who as always brought an independent mind to these debates. He gave me a nightmare by reminding me of the Climate Change Act 2008 and the extent of that legislation. You will recall, Mr Deputy Speaker, that we were in opposition at the time. The leader of the Conservative party, David Cameron, felt so strongly about it that those of us who voted against it—my hon. Friend and I, along with Peter Lilley, Ann Widdecombe and Andrew Tyrie—have never been forgiven by him. Indeed, my noble Friend Lord Tyrie was told expressly by David Cameron that, as a result of his voting against that Bill’s Third Reading, he would never have office on the Front Bench either in opposition or in government under his leadership. That is the pressure that MPs are often up against in having an independent mind and not being a nodding donkey.

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