§ 3.9 p.m.
§ Lord STRATHCONA and MOUNT ROYALMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government how many grants and of what value, have been made under the £3 million energy-saving loan scheme announced a year ago.
The PARLIAMENTARY UNDERSECRETARY of STATE, DEPARTMENT of ENERGY (Lord LOVELLDAVIS)My Lords, the position up to the present time is that three offers of loans, totalling £97,300, have been accepted, while a fourth offer, worth 273 £48,000, is still awaiting acceptance or rejection by the applicant.
§ Lord STRATHCONA and MOUNT ROYALMy Lords, would not the Minister agree that these figures suggest that the scheme has proved both inappropriate and inadequate? Will the Government therefore consult with the industry with a view to producing something more effective? For example, do they consider that the lower limit of £10,000 is satisfactory?
§ Lord LOVELL-DAVISMy Lords, I do not think that the scheme has been a total failure, but conditions have changed a great deal since it was introduced. Money is more readily available. So far as the scheme is concerned, it is under consideration. I understand the concern of the noble Lord, Lord Strathcona and Mount Royal, with regard to the minimum project size of £10,000. This is one of the points which is being considered in the current review of the scheme. But in practice one must have some lower limit to avoid excessive administrative costs. The costs of processing an application and the administrative time involved are almost independent of the size of the loan required. The £10,000 limit on the project size was originally introduced as a reasonable compromise. I think we must bear in mind that, whatever cut-off point one chooses, there will be some people who find that they are just excluded and who feel that there should be an adjustment in their favour. I cannot hold out any promise, but I can say that this point is being considered.