Environment

HC Deb 01 April 1993 vol 222 cc486-7

7. Mr. Clifton-Brown

To ask the Chancellor of the Exchequer what reaction he has received from environmental organisations about the measures announced in the Budget statement.

The Economic Secretary to the Treasury (Mr. Anthony Nelson)

The Budget measures designed to encourage more efficient use of energy have been welcomed by a number of environmental organisations.

Mr. Clifton-Brown

Is my hon. Friend aware that Friends of the Earth, no less, commenting on my right hon. Friend's fiscal measures to help the environment, said that the Budget was bad for energy wasters, gas guzzlers and perk company cars? Is not it hypocritical of the Opposition to portray themselves as green, but they squeal like mad when it hurts them in the pocket?

Mr. Nelson

My hon. Friend is absolutely right. Friends of the Earth welcomed the Budget measures and if the Opposition are so incensed about the tax, one is bound to ask why they do not promise to reverse it.

Mr. Alex Carlile

In reacting to the Budget, have environmental organisations reminded the Treasury that substantial investment is being made in renewable energy sources, such as wind farms? If so, will the Minister take steps to ensure favourable fiscal treatment of electricity suppliers that are able to draw part of their supply from renewable energy sources?

Mr. Nelson

The hon. and learned Gentleman speaks on behalf of wind farms and does so with vigour and passion. I hear what he says and I am sure that there is something in it. The main objective must be to comply with the Rio targets and conventions and the hon. and learned Gentleman's proposals would go hardly any way towards reaching that ambitious target.

Mr. Andrew Smith

Before the Minister drowns in self-congratulation, will he acknowledge that Greenpeace, no less, said of the Budget that the overall proposal was a setback for the environment? If the Minister is really interested in helping the environment, will he put into practice Labour's national energy efficiency programme, which would save four times the CO₂that the Government claim through the imposition of VAT? Will he bring forward environmental improvement measures that can generate jobs as well as save energy? Should not the Minister be insulating pensioners' homes rather than inflating their fuel bills?

Mr. Nelson

As I said earlier, Friends of the Earth welcome our proposals. It is impossible always to please every environmental group. If the hon. Gentleman objects to the cost of imposing the taxation, it strikes me as strange that he should now propose that we go even further.

In the forthcoming year, the Government will spend some £40 million on the home energy efficiency scheme. That will greatly benefit nearly a quarter of a million households.