Tim Yeo is right to challenge Osborne's anti-green agenda

The Lib Dems need to resist the Chancellor's short-term thinking.

Tim Yeo, Conservative MP and chair of the energy and climate change select committee, has issued a stinging rebuke to George Osborne’s Treasury for their meddling in the design of the government’s flagship energy bill. He has called for Ed Davey’s department to "escape the control of the Treasury" which "has never been signed up to the green agenda".

Yeo’s select committee publish their pre-legislative scrutiny of the draft energy bill today. The report highlights the battle that Davey and DECC are losing to Osborne and the Treasury. Three major concerns are highlighted.

First, the proposed "contracts for difference," which are meant to encourage investment in low-carbon energy production, are criticised as "unworkable". Writing in today’s Financial Times, Yeo outlines how the simple, long-term contracts underwritten by the Treasury which were proposed in DECC’s original consultation "rang alarm bells in the Treasury". As a result they were "struck out of the draft bill" and replaced with "an alternative contract system so complex and confusing it may not be legally enforceable".

The committee go on to set out related concerns around the contractual regime. These include concerns that:

  • The reforms may squeeze smaller independent companies out of the electricity market resulting in even greater levels of market concentration;
  • A cap on green levies imposed by the Treasury may result in higher costs for consumers; and
  • The proposed process for setting the guaranteed price that nuclear generators can expect to receive for creating electricity "lacks sufficient transparency"

Second, Yeo’s committee says that the government should "set a clear target to largely decarbonise the electricity sector by 2030, giving investors certainty about the direction of energy policy." This follows pressure from a number of NGOs and think tanks, including IPPR, which submitted evidence to the review. The government’s advisory body, the committee on climate change, had stated that "the carbon intensity of power will need to fall from around 500g/kWh today to 50g/kWh in 2030". But the draft energy bill reduced this ambition by stating only that ‘power sector emissions need to be largely decarbonised by the 2030s’ with carbon emissions intensity at 100gCO2/kWh.

In our submission we stated that:

“The bill should be explicitly tied to the carbon budgets by setting a target to r educe the carbon intensity of the grid to 50gCO2/kWh by 2030. This is the most important step the government can take to provide certainty to industry about the direction for the energy market.”

The select committee has adopted our suggestion and recommends that:

“The Government should set a 2030 carbon intensity target for the electricity sector in secondary legislation based on the recommendation of the Committee on Climate Change.”

In a leaked letter, Osborne has explicitly called for Davey to reject this recommendation on grounds that it would be "inefficient" and "inflexible" and, instead, support polluting, "unabated gas" up to 2030 and beyond. Davey must reject his advice and heed Greenpeace’s warning that "the 2030 goal is the most significant test of the Lib Dems energy and environment credentials. If they cave in now they will be judged to have failed."

Third, the select committee report says the draft bill is "fundamentally flawed by the lack of consideration given to demand-side measures, which are potentially the cheapest methods of decarbonising our electricity system." They estimate that current policy is only delivering around one-third of the potential reduction in energy demand that is needed by 2030. Among other ideas they call for "the draft Bill to provide the Secretary of State with powers to introduce a Feed In Tariff for energy efficiency, if this cannot be achieved through existing legislation."

Yeo’s outspoken attack on the Treasury, which refused to give evidence to the select committee, shows that concerns about Osborne’s role extend deep within the Conservative party. But the report also shows that, once again, the Lib Dems are losing out to the Tories in Whitehall. To step out of the shadow of his predecessor, Davey must go back to the drawing board and develop proposals which will keep energy bills down, improve competition and encourage essential investment, rather than deferring to the short-term thinking of Osborne.

Conservative MP Tim Yeo said the Treasury had "never been signed up to the green agenda". Photograph: Getty Images.

Will Straw was Director of Britain Stronger In Europe, the cross-party campaign to keep Britain in the European Union. 

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Workers' rights after Brexit? It's radio silence from the Tories

Theresa May promised to protect workers after leaving the EU. 

In her speech on Tuesday, Theresa May repeated her promise to “ensure that workers’ rights are fully protected and maintained".  It left me somewhat confused.

Last Friday, my bill to protect workers’ rights after Brexit was due to be debated and voted on in the House of Commons. Instead I sat and watched several Tory MPs speak about radios for more than four hours.

The Prime Minister and her Brexit Secretary, David Davis, have both previously made a clear promise in their speeches at Conservative Party conference to maintain all existing workers’ rights after Britain has left the European Union. Mr Davis even accused those who warned that workers’ rights may be put at risk of “scaremongering". 

My Bill would simply put the Prime Minister’s promise into law. Despite this fact, Conservative MPs showed their true colours and blocked a vote on it through filibustering - speaking for so long that the time runs out.

This included the following vital pieces of information being shared:

David Nuttall is on his second digital radio, because the first one unfortunately broke; Rebecca Pow really likes elephant garlic (whatever that is); Jo Churchill keeps her radio on a high shelf in the kitchen; and Seema Kennedy likes radio so much, she didn’t even own a television for a long time. The bill they were debating wasn’t opposed by Labour, so they could have stopped and called a vote at any point.

This practice isn’t new, but I was genuinely surprised that the Conservatives decided to block this bill.

There is nothing in my bill which would prevent Britain from leaving the EU.  I’ve already said that when the vote to trigger Article 50 comes to Parliament, I will vote for it. There is also nothing in the bill which would soften Brexit by keeping us tied to the EU. While I would personally like to see rights in the workplace expanded and enhanced, I limited the bill to simply maintaining what is currently in place, in order to make it as agreeable as possible.

So how can Theresa May's words be reconciled with the actions of her backbenchers on Friday? Well, just like when Lionel Hutz explains to Marge in the Simpsons that "there's the truth, and the truth", there are varying degrees to which the government can "protect workers' rights".

Brexit poses three immediate risks:

First, if the government were to repeal the European Communities Act without replacing it, all rights introduced to the UK through that piece of legislation would fall away, including parental leave, the working time directive, and equal rights for part-time and agency workers. The government’s Great Repeal Bill will prevent this from happening, so in that sense they will be "protecting workers’ rights".

However, the House of Commons Library has said that the Great Repeal Bill will leave those rights in secondary legislation, rather than primary legislation. While Britain is a member of the EU, there is only ever scope to enhance and extend rights over and above what had been agreed at a European level. After Brexit, without the floor of minimum rights currently provided by the EU, any future government could easily chip away at these protections, without even the need for a vote in Parliament, through what’s called a "statutory instrument". It will leave workers’ rights hanging by a thread.

The final change that could occur after we have left the EU is European Court rulings no longer applying in this country. There are a huge number of rulings which have furthered rights and increased wages for British workers - from care workers who do sleep-in shifts being paid for the full shift, not just the hours they’re awake; to mobile workers being granted the right to be paid for their travel time. These rulings may no longer have legal basis in Britain after we’ve left. 

My bill would have protected rights against all three of these risks. The government have thus far only said how they will protect against the first.

We know that May opposed the introduction of many of these rights as a backbencher and shadow minister; and that several of her Cabinet ministers have spoken about their desire to reduce employment protections, one even calling for them to be halved last year. The government has even announced it is looking at removing the right to strike from transport workers, which would contradict their May’s promise to protect workers’ rights before we’ve even left the EU.

The reality is that the Conservatives have spent the last six years reducing people’s rights at work - from introducing employment tribunal fees which are a barrier to justice for many, to their attack on workers’ ability to organise in the Trade Union Act. A few lines in May’s speech doesn’t undo the scepticism working people have about the Tories' intentions in this area. Until she puts her money where her mouth is, nor should they. 

Melanie Onn is the Labour MP for Great Grimsby.