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Energy Bill [Lords]

I am delighted to hear from the hon. Member for Liverpool, Wavertree (Luciana Berger) that the Opposition will not vote against the Bill, but I will hold her to blame if my hon. Friends now start to disappear from the Chamber during my winding-up speech. She has just delivered a very polished debut from the Dispatch Box. I think that winding up is a much harder job than opening, but she made a very good fist of it. I do not agree with the hon. Lady's rather gloomy scepticism about this important Bill, but she was spot on in one respect: this has been an excellent debate, with powerful and substantive contributions from both sides of the Chamber. In saying that, I gloss over the opening speech of the shadow Secretary of State, the hon. Member for Hackney South and Shoreditch (Meg Hillier), whose contribution was out of tune with the debate we subsequently had. I was genuinely pleased by the way in which Members across the Chamber engaged in scrutinising these radical and far-reaching proposals, and I have to say it is telling to compare and contrast the shadow Secretary of State's speech with the master-class demonstration by the leader of the Green party, the hon. Member for Brighton, Pavilion (Caroline Lucas), of what can be achieved in an effective and intelligent critique from the Opposition Benches. This Bill is only the first step in the new Government's plans to reshape and renew our energy economy, but it is certainly a very clear and substantial demonstration of the coalition's determination to be ““the greenest Government ever””. These measures will be vital tools in helping to meet our stretching carbon reduction targets and they underpin our determination to stop dangerous global warming. The Bill, however, is no tree hugger's charter, nor is it a narrow response to the science of climate change; it can provide practical help to families and money-saving improvements to every home in Britain. The British housing stock, which for too long has languished at the very bottom of the European energy-efficiency league table, will be transformed. Finally, government will have a game-changing policy framework that is commensurate with the huge twin challenges of improving our housing stock and eradicating fuel poverty. That said, I am very conscious of the fact that with this Bill we are putting in place a gigantic project that will stretch way beyond this Parliament and, we hope, the next too. The green deal framework is designed to continue well into the 2020s and beyond, so I do not pretend for a moment that this Bill will be the last word on the issue or that we have anticipated every eventuality. We will continue to consider new incentives and levers to drive the programme forward as the market develops and we reach towards that very ambitious level of retrofitting 14 million homes by 2020 and 26 million homes by 2030. But the long-term direction is clear: there will be no more short-term initiatives and no more stop-start schemes. Business certainty created by the green deal will be essential to unlocking the billions in private sector investment that will be key to this programme's success. I am keenly aware that responsible political consensus on the green deal is particularly desirable. I very much hope that, given the shared climate objectives among the parties, we can all show the same resolve and constructive cross-party engagement that was the hallmark of the Climate Change Act 2008. I listened carefully to the thoughtful speeches made by hon. Members on both sides of the House today, and I would be happy to engage in an informal evidence-based session before the House rises for the Whitsun recess. I noted not only the shared ambition that Members on both sides of the Chamber have for the Bill, but the detailed concerns and questions that have been raised. I hope to address many of these issues now. Where I am unable to do so, I hope to deal with them more seriously, and constructively, in Committee. Broadly speaking, six main themes have emerged from today's debate, and I hope to hear more about them in that informal session. The first was the scope of the coalition's ambition, the scale and pace of delivery, and how we measure success. The second was the energy company obligation—the ECO—and the challenge of ensuring that we deal effectively with fuel poverty. Thirdly, hon. Members rightly urged robust consumer protection—that is absolutely essential. Fourthly, hon. Members strongly argued the case for more ways to involve local communities and local councils, and, importantly, challenged us on the provisions to tackle recalcitrant landlords in the private rented sector. Fifthly, we debated the enormous potential of the green deal to drive green jobs and green growth, and to create new investment opportunities. Finally, we must not overlook the importance of enhancing our national energy security, as well as moving our economy beyond dependence on foreign oil and expensive imported fossil fuels. Let me deal briefly with each of those themes in turn. Many questions were asked on the fundamental point of the scale of our ambition by, among others, the hon. Member for Hackney South and Shoreditch, my hon. Friend the Member for Cheltenham (Martin Horwood) and the hon. Member for Stoke-on-Trent North (Joan Walley), with whom I have served for many years on the Environmental Audit Committee. The issue was also addressed in particularly informative contributions from the right hon. Member for Oldham West and Royton (Mr Meacher) and the hon. Member for Brent North (Barry Gardiner). I am pleased to respond to them by saying that I can announce two important developments. First, my Department will publish a formal aim—that is, on the face of the Bill—to take reasonable steps to improve the energy efficiency of the English residential sector by 2020 so that emissions from that sector follow a trajectory that is consistent with the UK carbon budgets. Secondly, I will table an amendment that commits to an annual report to Parliament on the specific contribution of the green deal and the ECO, within the context of contributing to the carbon budgets set out by the Climate Change Act that have so concerned Members from all parties in the course of the debate. Many Members raised the issue of the ECO and fuel poverty. Fuel poverty is key to the essence of the Bill and we will certainly be judged on its success. Those Members included the hon. Member for Hackney South and Shoreditch and my hon. Friend the Member for Bracknell (Dr Lee), who is a member of the Select Committee on Energy and Climate Change as well as of the Conservative friends of Bangladesh and so has a particular interest in international climate change issues. The hon. Member for Southampton, Test (Dr Whitehead), with his usual expertise, focused on the ECO and the role it plays in the potential levies cap. The hon. Member for Brighton, Pavilion had some very vivid cases of fuel poverty from her constituency that will be reflected across the land, as did the hon. Member for Hackney South and Shoreditch. Let me be clear that the ECO is designed to work hand in glove with the green deal to help the most vulnerable households and hard-to-treat properties. The ECO will deliver heating systems and insulation in the most effective way to help low-income vulnerable households heat their homes affordably and it will be tightly targeted. The ECO and the warm home discount provide a range of support mechanisms for low-income vulnerable households. I have heard the calls for more information and so I commit today to bring forward details on the ECO before we go into Committee. On the subject of robust consumer protection, we heard the shadow Secretary of State's questions about who will be the regulator and whether we could have more detail. The right hon. Member for Oldham West and Royton wanted to know more about how the green deal would work for vulnerable energy users. My hon. Friend the Member for Northampton South (Mr Binley), in his very statesmanlike speech, also highlighted the need for more protection for the most vulnerable in society. There will be strong consumer protection. It will be necessary to propose that level of detail in statutory instruments, through which we will all have the opportunity to scrutinise those important points in more detail. There will be a green deal quality mark for installers and warranties against installation failure and poor workmanship. The golden rule is that the charge attached to the Bill should not exceed the expected savings at the time of the assessment and that will be crystal clear. The Consumer Credit Act 1974 will offer protection for green deal customers. I really appreciate the way the industry has got involved on this important issue. Voices such as Kingfisher and the Builders Merchants Federation are essential in helping us to design the green deal so that big companies and local small and medium-sized enterprises can get involved while at the same time offering strong consumer protection. The question of involving communities and tackling the private rented sector was raised by my hon. Friend the Member for Warwick and Leamington (Chris White), the hon. Members for Stoke-on-Trent North, for Hartlepool (Mr Wright) and for Brighton, Pavilion, the right hon. Member for Oldham West and Royton and the hon. Member for Southampton, Test. We will take robust action on the face of the Bill in respect of the private rented sector. Before we came to the House today, we listened to various voices from a number of stakeholders on the subject of the Home Energy Conservation Act 1995 and we have decided to retain parts of HECA, to breathe new life into it and to ensure that it becomes part of our way of ensuring uniform delivery of the green deal across Britain. We will table those amendments in Committee. The question of green growth and investment was mentioned by my hon. Friend the Member for Winchester (Mr Brine), who made a very powerful speech arguing that the green deal is a great carrot, rather than a stick, that will throw up a huge number of business opportunities. He also rightly tested us on the need for more training opportunities, which we are taking very seriously. The hon. Member for Angus (Mr Weir) also asked whether we would be letting in small businesses. My hon. Friend the Member for Winchester pointed out that this could mean 100,000 jobs or more. It is important that we do not just capture the carbon savings, but that we really capture the industrial opportunities that this big market push will afford us.