Energy Conservation (Hansard, 25 January 1988)

§ 1. Mr. Knox
To ask the Secretary of State for Energy what recent representations he has received about the adequacy of existing energy conservation schemes.

§ The Minister of State, Department of Energy (Mr. Peter Morrison)
I have received a number of representations. On 22 January I said in reply to my hon. Friend the Member for Berkshire, East (Mr. MacKay) that there would be continuing role for the energy efficiency office, with no change in its budget for 1988–89. I have asked the EEO to target its work at the most economically attractive sectors and to examine how the contribution from industry and commerce can be increased. I am not committed to extending the present level of funding beyond 1988–89.

§ Mr. Knox
What is my hon. Friend's estimate of the potential for further energy savings? Is he satisfied that the existing schemes will enable us to achieve those savings?

§ Mr. Morrison
What my right hon. Friend the Secretary of State for Wales and my hon. Friend the Deputy Chief Whip did when they were Secretary of State and Minister with responsibility for this Department was a remarkable success story. They heightened awareness enormously in industry and commerce about the efficient use of energy. Doubtless some firms and managements need to learn a thing or two, and we shall direct our efforts to that matter.

§ Mr. Barry Jones
I am sure the Minister will agree that British Aerospace has done very well with regard to energy 3 conservation. May I tell him of one of its worries—the mooted increase in electricity prices? The local factory at Broughton, which is adjacent to his constituency—

§ Mr. Speaker
Order. Does this have anything to do with energy conservation?

§ Mr. Jones
Yes, Sir, it is directly related to the matter. British Aerospace at Broughton spends £1 million or more a year on electricity. If the Government increase the price of electricity, the profits of and jobs at British Aerospace in Broughton, which is a factory that the Minister knows well, will be affected. Will the Minister reconsider electricity prices for industry?

§ Mr. Morrison
As the hon. Gentleman will be aware, I have the honour to be his next door neighbour, with the Broughton factory lying on his side of the constituency. I am particularly well aware of the point that he has made, and I agree that the management and labour force have proved to be outstandingly successful. I have no doubt that the company will continue to make commercial and industrial decisions that will ensure that it remains competitive, which is the best way of ensuring the continuation of the labour force.

§ Mr. Speaker
Nothing that I have heard leads me to believe that all this has anything to do with energy conservation.

§ Mr. Butler
As my hon. Friend will be aware, 2 million lofts remain uninsulated and there are 11 million houses without cavity wall insulation. If we were to press ahead with home insulation schemes, would that not, to some degree, save the need for expensive electricity generating capacity?

§ Mr. Morrison
As my hon. Friend is probably aware, about 300,000 community insulation projects are carried out per year. Some 3 million houses have benefited from the home insulation scheme since the Government came to power, which is an outstandingly good record.