House of Commons
Friday 6 February 1998
The House met at half-past Nine o'clock
PRAYERS
[Madam Speaker in the Chair]
Energy Efficiency Bill
Order for Second Reading read.
9.34 am
Mr. John Burnett (Torridge and West Devon): I beg to move, That the Bill be now read a Second time.
First, I must declare that I am a shareholder in a renewable energy company, but as a trustee only. I wish to put on record the fact that none of the beneficiaries of the trust are related to me, whether directly or by marriage. It is a United Kingdom trust and fully taxable as such.
I am delighted to have the opportunity to bring in a Bill that is long overdue. My Bill would ensure that an idea recommended as far back as 1984 by the then Secretary of State for Energy, Peter Walker, now Lord Walker of Worcester, is actually brought into being. Since that time, the idea of providing energy ratings for homes at the point of sale has enjoyed 14 years of cross-party support. The most recent expression of that support came from the Under-Secretary of State for the Environment, Transport and the Regions, the hon. Member for Wallasey (Angela Eagle), herself. Speaking at the national home energy rating fifth national conference in a speech that was widely reported and well received by the energy efficiency industry, the Minister posed the question:
However, after 14 years of cross-party support, Committee reports, Bills, discussions and hoping, we still do not have, to quote the Minister last year:
I was conscious of the high level of support for the measure when I decided to introduce this Bill after my good fortune in being drawn sixth in the private Members' ballot. I am especially grateful to the 265 Members of Parliament, drawn from almost all parties represented in the House, who signed my early-day motion supporting the Bill. However, what really persuaded me to adopt the Bill were the benefits, both environmental and economic, that such a measure would bring to home owners.
Energy efficiency is one of those matters that few, if any, oppose. Measures that enable us to enjoy the same levels of comfort, warmth, light and convenience, but which use less of the world's resources, are obviously beneficial. Although burning fossil fuels has led to huge improvements in the level of comfort we all enjoy at home, it has its drawbacks. Climate change is one of the biggest environmental threats facing the world today, and this year the Kyoto conference and the strongest ever El Nino effect have raised awareness of the problems we may face still higher.
The burning of fossil fuels has been the main contributor to the level of so-called greenhouse gases, among which carbon dioxide is the major culprit. The most effective way to reduce carbon dioxide emissions is to use less energy; energy-efficiency measures allow us to do that.
Energy efficiency in the home can also have serious health effects. The poor quality of the United Kingdom's housing stock leaves approximately 8 million homes in the UK shivering through the winter. That leads to cold-related illnesses and premature deaths, especially among our elderly and poor. Our winter death rate rises by almost one third compared with the summer rate; by contrast, in countries such as Sweden and Norway, the increase is closer to 10 per cent.
I am not claiming that my Bill will end those problems, but I suggest that it is one of many steps that could be taken that would educate people about the ways to reduce the energy that they use and would lead to an improvement in the energy efficiency of homes in the UK. My Bill is just one small step, and I am pleased to see in the Chamber today the hon. Member for Eltham (Mr. Efford), who will today be introducing another measure in the right direction: the Energy Conservation (Housing) Bill.
Additionally and importantly, I believe that the Government are now endeavouring to negotiate a modification of the sixth VAT directive to reduce the rate of VAT on energy-saving materials. I should be grateful if the Under-Secretary of State would, first, confirm that and, secondly, let the House know the Government's target level for VAT on energy-saving materials.
Mr. Peter Bottomley (Worthing, West):
Although the House would wish to see a reduction in VAT on energy-saving materials, will the hon. Gentleman confirm that anyone who wants to delay buying them because of the chance of saving a few per cent. on VAT will probably
Mr. Burnett:
I am delighted by that intervention. The hon. Gentleman is right: a stitch in time saves nine, and there is more to be gained from taking energy-efficiency measures than from waiting for the VAT reduction.
Mr. Gerald Bermingham (St. Helens, South):
Does the hon. Gentleman agree that we should perhaps look again at building regulations, triple glazing and various other cavity insulation features? Those issues are not contained in the hon. Gentleman's Bill, which I welcome, but would also add to energy saving.
Mr. Burnett:
I am grateful to the hon. Gentleman for drawing the House's attention to the matter. The energy-efficiency benefits of cavity wall insulation should often be drawn to the attention of house buyers through this survey. It is an important point for buyers; it is a particular problem now, as quite a few loft insulations have taken place. One of the great problems at the moment is the deficiency in the cavity wall insulation of British housing.
Mr. Alan W. Williams (East Carmarthen and Dinefwr):
On the subject of cavity wall insulation, earlier this morning I read the Library's brief and I was impressed by sections of it showing that the proportion of houses with loft insulation, draught-proofing and double glazing is increasing substantially. Why are only 25 per cent. of homes that could have cavity wall insulation actually fitted with it? Are there fears that it could be a health hazard, or what?
Mr. Burnett:
I am grateful to the hon. Gentleman for raising that point. I noticed the same point in the document issued by the House of Commons Library on the Bill. The reason why sufficient work has not been done on cavity wall insulation is probably because the subject has not been drawn to people's attention. The object of my Bill is to do just that.
The aim of the Bill is to improve the energy efficiency of Britain's housing stock. It will achieve that aim by providing clear and digestible information to people who are buying a house. If the Bill is passed, house buyers will receive a rating, showing the energy efficiency of their home, and a list of suggestions for cost-effective energy-efficiency improvements. An indication will be provided of the period in which such improvements will pay for themselves by reducing fuel consumption and, therefore, fuel bills.
The idea can be compared to many other existing schemes. While the quoted miles-per-gallon figure is not the only factor that the public consider when buying a new car, it is certainly one to which they pay attention and it is regularly reported in car reviews in newspapers and magazines. It is a legal requirement for cars to be tested for the number of miles per gallon that they can do, and that information is displayed at the point of purchase. That requirement was first introduced in 1983; if such information is required for cars, why not for houses?
Another analogous example is that few people would buy a house without discovering into which council tax band it fell. But, despite the fact that fuel bills can often be greater than council tax bills, we currently receive no information on the likely level of fuel bills.
The signs are that people want to receive such information. A Which? survey in 1991 found that 60 per cent. of people wanted information on heating costs when they bought their homes. More recently, a South Bank university study that considered the wishes of new home buyers suggested an even higher figure. It found that 87 per cent. of people wanted to know the energy rating of their home. That answers the criticism that some have made that people may not want the information.
I am glad that the Under-Secretary agrees with me that clear rating combined with energy efficiency advice is important. In her speech at the national home energy rating conference, she made the point with clarity. She asked:
The Under-Secretary is absolutely right. The information is useful: it is the basis for comparisons between properties and will act as a catalyst towards the installation of energy-efficiency measures. Combined with tailored advice, ratings are an extremely useful tool to persuade people of the benefits of energy efficiency. People do not have to take the advice, but it will highlight the benefits of taking those measures.
I believe that people do want to act on such advice. In 1996, the effect of the work of local energy advice centres was studied by an independent company for the Energy Saving Trust. That research showed that, on average, a visitor to a local energy advice centre went on to save 390 kg of annual carbon dioxide emissions. That figure did not count savings made through changes in behaviour resulting from advice from the local advice centres, so is likely to be an underestimate.
If we assume, therefore, that the 60 per cent. of people who told Which? that they would like such information are as receptive to the advice as those who visit local energy advice centres and go on to take similar steps to improve their homes, we can estimate the environmental benefits that will accrue if the Bill becomes law.
Every year, about 425,000 mortgages are given to people to buy houses that are not newly built. If 60 per cent. of those--225,000 households--were to save an average of 390 kg of carbon dioxide emissions every year, the annual savings would be 0.1 million tonnes of carbon dioxide emissions--a not insignificant figure.
"Is there a viable voluntary approach which would ensure that all mortgage lenders provided tailored, reliable, energy-efficiency advice, along with a rating and estimates of energy cost savings and the likely cost of improvement measures; or, having worked on this for several years to no significant effect, is legislation now the only option?"
There was also cross-party support for a similar Bill introduced shortly before the last general election in early 1997 by one of my colleagues in another place, Lord Ezra. His attempt to introduce the Bill was given a warm welcome by the Labour Front-Bench spokesman in the Lords, Lord Graham of Edmonton, who described the Bill as "a gift horse". The year before that, in 1996, the current Conservative spokesman for environmental protection, the hon. Member for South Suffolk (Mr. Yeo)--a supporter of my Bill--introduced a very similar 10-minute Bill. That was preceded by not just one but three Select Committee reports calling for a scheme to be introduced along similar lines; those reports were published respectively in 1989, 1991 and 1993.
"the tailored reliable energy-efficiency advice, along with a rating".
6 Feb 1998 : Column 1346
The answer to the Minister's question is clear: we need legislation.
"How do we know--at a glance--whether a particular home or appliance is energy efficient?"
She added:
"Home energy rating informs people how efficient homes are and is the basis of reliable advice tailored to individual homes. Improved energy efficiency across the domestic sector is the end result . . . I support home energy rating. I support the development of higher standards of delivery of home energy rating and energy efficiency advice services."
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