HC Deb 27 January 1986 vol 90 cc633-4
7. Mr. Bruce

asked the Secretary of State for Energy when he last met the Association for the Conservation of Energy; and what subjects were discussed.

Mr. David Hunt

My right hon. Friend regularly meets officers and members of the Association for the Conservation of Energy in his campaign for greater energy efficiency.

Mr. Bruce

In the light of the Government's rather odd decision to cut home insulation grants by more than £4.5 million a year, will the Minister consult the Department of the Environment about extending the scheme to cover other worthwhile energy saving measures, such as thermostats and wall insulation, rather than cut the scheme at the start of Energy Efficiency Year?

Mr. Hunt

The 1986–87 homes insulation grant allocation is expected fully to meet total demand. My right hon. Friend the Secretary of State for the Environment has said that he realises the significancce of Energy Efficiency Year 1986 and will bear it in mind when he considers applications from authorities for additional allocations.

Mr. Gerald Howarth

Will my hon. Friend continue his negotiations with the Association for the Conservation of Energy, because it is doing excellent work in an important activity, where a great deal of public money can be saved?

Mr. Hunt

I am delighted that my hon. Friend should give me the opportunity to welcome the magnificent way in which the chairmen and chief executives of the major companies involved in energy efficiency industries have come together in that association and, in particular, their initiatives in organising "Monergy" talks and promotional seminars.

Mr. Bermingham

Referring to the question asked by the hon. Member for Gordon (Mr. Bruce), may I ask whether the Minister will support an application from the local authority in St. Helens, where, incidentally, most glazing products are made, for an increase in his £40,000 allocation for the current year, which is wholly insufficient to meet the needs of the properties in the area?

Mr. Hunt

I have already answered the hon. Gentleman's question. I made it clear that it is the view of my right hon. Friend the Secretary of State for the Environment that the allocations will meet total demand, but there will be an opportunity for authorities to seek additional allocations.

Mr. Speller

Does my hon. Friend accept that while energy conservation is valuable in saving energy, it is also a great creator of jobs, especially in the construction industry and in small businesses?

Mr. Hunt

Absolutely. The Association for the Conservation of Energy and my Department have a mutual interest in promoting energy efficiency measures, because an energy efficient nation means more business for those in the energy efficiency industries.

Mr. Robert Sheldon

Is the Minister aware that last year's Public Accounts Committee report showed that up to £100 million a year could be obtained by energy savings within the National Health Service—savings which are not being realised at present? Will he take the matter up with the Secretary of State for Social Services?

Mr. Hunt

I agree with the right hon. Gentleman. Only a few weeks ago my hon. Friend the Member for Wycombe (Mr. Whitney) and I wrote a joint letter to all regional chairmen. That is now being followed up with individual health authorities.

Mr. Rost

Does my hon. Friend support the argument adduced by the Association for the Conservation of Energy and the Select Committee on Energy that the rate of return on new energy investment within the public sector should be compared directly with the return on energy investment conservation, or the Government cannot assess their priorities and decide which produces a better rate of return?

Mr. Hunt

Those of us in the public sector are determined to do just as well as, if not better than, those in the private sector in promoting energy efficiency.

Mr. Rowlands

I refer to the point made by my right hon. Friend the Member for Ashton-under-Lyne (Mr. Sheldon). Is it not the case that massive savings in the National Health Service were identified a considerable time ago and that no action was taken or follow up made? Why should we believe that there will be any more effective action or follow up now?

Mr. Hunt

Because I shall make available to the hon. Gentleman an energy efficiency publication known as ENCODE which is now going out to all operatives in the National Health Service and which demonstrates not just the need for but the ways in which greater energy efficiency can be achieved.

Mr. Holt

Does my hon. Friend agree that there would be far more energy savings if the iniquitous 15 per cent. VAT on double glazing imposed by his right hon. Friend the Chancellor of the Exchequer were removed?

Mr. Hunt

It is not just on financial grounds that we urge people to install double glazing, but on a number of other grounds, including comfort and energy efficiency.