15:54 Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)

As well as highlighting the successes of co-ops nationally, I want to focus my remarks this afternoon on how the co-operative model is thriving in the energy market. Up and down the country, communities have come together to find new ways of generating renewable energy. Co-operatives have pioneered renewable energy in the UK, whether large ones such as the Co-operative Group powering its stores with renewable energy or innovative businesses such as Powys-based Dulas developing green technologies.

Until recently, energy co-ops have benefited from a supportive central Government. Recent Government decisions, however, have resulted in support for community-based energy co-operatives being withdrawn, risking their success. The Government’s decision to cut the feed-in tariff subsidy for projects that generate more than 50 kW will mean that many community co-op solar projects on hospitals, schools and community buildings are now no longer commercially viable. Alongside that, it was announced in the 2011 Budget that renewable energy schemes eligible for the feed-in tariff would no longer qualify for tax relief under the enterprise investment scheme, harming at least 20 communities planning a community share launch soon—the business model is entirely based on securing the feed-in tariff and the enterprise investment scheme. Small schemes with less than £0.5 million of capital costs will struggle to be viable.

Reduced admin fees and fair access to the market would not only lessen the financial start-up costs for those organisations, but would act as an indicator to them that they have an important part to play in the green deal. Surely the idea of helping co-operatives and mutual societies to flourish, instead of the market being dominated by a few big companies, is very much in the spirit of the big society? Unfortunately, the Government did not think so, and voted down those amendments. That did not stop the Minister of State, Department of Energy and Climate Change, the hon. Member for Bexhill and Battle (Gregory Barker), using warm words about co-operatives, but what good are words when they are not followed up by actions?

The threat of climate change is the greatest threat to our planet, and it is only through co-operation that we will be able to take urgent global action to fight it. Renewable energy co-operation to tackle climate change and to reduce household fuel bills at a time when they are increasing is just one example of how co-operatives can benefit our society. This debate has highlighted how much co-operatives can benefit our society, and it is timely at the start of co-operatives fortnight. From banking and finance to renewable energy and environmental protection, co-operatives are making a difference. I thank my hon. Friends for securing this debate, and I thank you, Mr Amess, for your stewardship.

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16:21 Gareth Thomas (Labour)

The hon. Member for East Hampshire raised the issues relating to social ISAs. I would be interested in the Minister’s response to the view expressed by the hon. Member for East Hampshire about their potential. The Minister may be aware of the Big Lottery Fund’s launch of a social impact bond—a particular model that it has backed. Again, I would welcome hearing from the Minister the Government’s view on whether that bond has considerably more potential and in particular whether it has the potential to help co-operatives to expand, perhaps in the way that my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger) alluded to in the context of renewable energy.

My hon. Friend the Member for West Bromwich West identified the traditions of collective self-help and the entrepreneurial spirit as driving influences in setting up effective co-operatives. As we heard, the UK has almost 5,000 successful co-ops, with almost 13 million members. The turnover of UK co-ops has risen by some 25% over the past three years. Perhaps the best-known example of co-ops in the UK is the Co-op Group, of which the Co-op bank is an essential part. Its move into renewable energy was mentioned by others. There is also, of course, the excellent John Lewis Partnership. If I may crave your indulgence, Mr Amess, I praise also those who are part of the Rainbow Saver credit union, in which I declare an interest, and those who run the excellent Harrow and Hillingdon credit union.

My hon. Friend the Member for Liverpool, Wavertree talked about the failure of the Government to encourage community energy projects. Given that the Minister is a member of the same political party as the person who is responsible for that dismal record, will he pledge to take back to the Secretary of State for Energy and Climate Change the concern of the Chamber over his lack of commitment to co-operative energy projects?

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