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Proceeding contribution from Mike O'Brien (Labour) in the House of Commons on Friday, 8 May 2009. It occurred during Debate on bill on Green Energy (Definition and Promotion) Bill.


Green Energy (Definition and Promotion) Bill

That is a good point, but we need to be careful. Officers tend to inherit these delegated powers and councillors assume that there is not much that they can do about it, whereas they can do quite a lot about what they delegate to their officers and what they do not. It is the councillors' responsibility to ensure that the officers are doing only what the council wants them to do, and if they think that there is an area where they should not have delegated powers, then they should not have them. However, the hon. Gentleman is right that we need to ensure that local communities are not subjected to something being put in by a landowner, the officers using their delegated powers, and the thing getting through before the local community even knows it is happening. That is not satisfactory, particularly if it is something that the local community would be concerned about. I can tell the hon. Member for South-East Cambridgeshire (Mr. Paice) that anaerobic digestion would be included in the consultation. Noise is an area of concern as regards ground source heat pumps and wind turbines, and we want to ensure that we consider how that is dealt with. We hope that we will be able to get a consultation out very shortly in the coming months. In all probability, that should be well under way before the Bill is taken through. The consultation that we undertook last year related to 37 dB, but we need to be much more ambitious in this case. I have spoken to the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Hartlepool (Mr. Wright), and we are content to consult, among other things, on 45 dB, which is what the industry has been asking for. There are concerns about this; let there be no mistake about that. We also have to take account of the fact that the World Health Organisation is looking into noise levels, and that needs to be factored into how we would achieve this. In a sense, this issue has been hanging around for too long. It needs to be resolved, and my hon. Friend and I want it resolved as soon as it reasonably can be. We should therefore be looking to oblige the Government not so much to consult as to legislate, perhaps within six months of the Bill going through. It would be more realistic if clause 5 were to refer to granting permitted development rights within six months, not three months, of the Act being passed. The clause refers to the schedule, which sets various conditions relating to microgeneration. The Government consider that the schedule contains inappropriate details, and we cannot agree to it as it is, but some parts of it have merit. Those parts, or at least the issues raised in the schedule, can be included in the consultation. However, we will ask that the schedule as it currently stands be removed. Clause 6 requires any increase""in the value of a property arising from the installation of"" a green energy measure""or a microgeneration system after the day on which this Act is passed"" to be""disregarded for the purpose of assessing council tax or non-domestic rates"" on that property. I shall explain what is already being done. Council tax is a property tax, based primarily on the value of a person's home. There are no plans to link the level of council tax that a person has to pay to how energy-efficient their property is. I am told that making changes or improvements to a property that increase its value cannot result in a higher council tax band until the property is sold or any general revaluation of properties takes place. An increase in the band will take place only if the alterations add sufficient value to the property to move it into a higher band. The value of a dwelling depends on a number of factors, including its size, lay-out, character and locality. Generally, any improvements made to a property will not be taken into account for banding purposes unless, as I said, the property is sold. Even then, the alterations will not necessarily mean an increase in the council tax band. That will happen only if the alterations have added sufficient value—reflecting 1991 values—to push the property into a higher band. Some local authorities, with assistance from British Gas, have provided a one-off rebate on council tax bills to council tax payers who have taken certain measures to improve energy efficiency in their homes. Microgeneration equipment is already ignored in the assessment of rateable value for non-domestic rates until the next revaluation. The exemption was introduced on 1 October 2008 and will also apply to any 2010 rating list, so that equipment fitted between 1 April 2010 and 31 March 2015 will not be assessed for rates until 1 April 2015. I am told that it is unlikely that fitting microgeneration equipment at business premises would lead to a reassessment of their rateable value. Nevertheless, the exemption was introduced to remove uncertainty and provide clarity and reassurance to businesses working to reduce their carbon footprint. The Government therefore do not believe that clause 6 would make much difference in practice. The council tax system already disregards improvements until a property is sold, and then they only matter if they add sufficient value to push the property into a higher council tax band. Such an impact would rarely result from the presence of microgeneration equipment. The legislative framework for council tax is complex and lengthy, and it is dealt with separately in different legislation. We see no merit in adding to that complexity, so the Government will not support the clause being in the Bill. I hope that to get the rest of the Bill through we can reach agreement that the clause be deleted, given the background information that I have just provided that there are some safeguards already in place that will hopefully help the microgeneration industry. I am conscious of the time, and I want to give the hon. Member for East Surrey the opportunity to respond. I thank him very much for bringing the Bill to the House and hope that it will have a successful passage based upon my comments about the Government's position. We would like to get a Bill like this through. I know that the hon. Gentleman would, and we know from the debate that most Members who have spoken would. I believe that that broadly reflects the views of the House as a whole, so I hope that with a good deal of collaborative work in the coming month or so, we will be able to take the Bill through Committee, amend it and bring it out the other side successfully.


Secondary information

Type
Proceeding contribution
Reference
492 c488-90 
Session
2008-09
Chamber / Committee
House of Commons chamber
Subjects
Biofuels Environment protection Energy Planning permission Microgeneration Sustainable development Renewable energy
Legislation
Green Energy (Definition and Promotion) Bill 2008-09
Link
View this Proceeding contribution on www.publications.parliament.uk