"By far the most expensive piece of legislation ever to go through Parliament."

Christopher Booker in The Sunday Telegraph pays tribute to Peter Lilley MP for uncovering the likely cost of the Climate Change Act:

Read Mr Booker's full column here.

Michael Howard told you so on the economy

Erstwhile Conservative Leader Michael Howard made a noteworthy contribution to the debate on the economy yesterday.

"It seems to me that we cannot arrive at the right prescription for the future of our economy unless we gain a clear view of why we are where we are. We cannot expect to be led out of our current crisis by a Prime Minister who puts his head in the sand. Before prescription, however, there must be diagnosis, and it is in that spirit that I offer my remarks this afternoon.

Of course it is true—we can all agree on this—that we are in the throes of an international recession, or something worse. Of course it is true that almost every other country is affected in one way or another, to a greater or lesser extent, but we are almost uniquely vulnerable. We are almost uniquely ill equipped to deal with the calamity that has befallen the world, and we need to consider the reasons for that. They are not too difficult to identify.

My right hon. Friend the Member for Witney (Mr. Cameron), the Leader of the Opposition, was quite right, last Friday, to accept responsibility for the things that we got wrong. We certainly failed to anticipate that the crisis we now face was anything like as serious as it has proved to be, but there are two main reasons for our present plight. Both of them were directly the responsibility of the Prime Minister, and, in respect of both of them, we certainly warned of the consequences. I have looked at the record, and I am in a position to answer the question posed from a sedentary position by the Exchequer Secretary earlier, when she asked, “Where were you?” I shall do my best to answer that question during the course of my observations.

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Greg Clark says Government complacent on gas storage

The House of Commons had Energy and Climate Change questions yesterday. Shadow Secretary of State Greg Clark was very concerned about Britain's gas reserves:

"On 20 February this year—two weeks ago—Britain hit a new low, with just four days-worth of gas in storage in the reserve. Does the Minister consider that an acceptable margin for safety?

Mr. O'Brien: It is not about how many days worth of gas there are. The amount of gas in storage at a given point cannot meaningfully be assessed in terms of days. Stored gas is not used on its own to meet UK demand in any way. The North sea gas reserves put the UK in a position unlike that of other countries. Yes, we need gas storage, and we will need to increase the amount of storage as our imports increase, but we still have a substantial amount of gas coming from the North sea. That means that we do not need quite the amount of storage capacity that other countries do, although we will need to improve gas storage capacity in future as North sea gas depletes, and imports rise.

Greg Clark: That is a remarkably complacent answer, because every country in the world is content to denote their storage in days—apart from Britain, apparently. For the second time in only four winters, we almost ran out of gas, and almost did not have sufficient gas to meet demand. According to a written answer that the Minister gave me only this morning, only the depressed state of the economy, due to the recession, saved us from running out. Even the official regulator thinks that we do not have enough storage. In the Energy and Climate Change Committee, my hon. Friend the Member for Bromsgrove (Miss Kirkbride) asked the regulator whether he thought that enough storage was being planned, and he said:

“I am not happy to talk about this...we were hoping”—

that storage would have doubled in the past five years—

“and we have barely moved.”

Given that record, do we have to hope that this Government run out of time before Britain runs out of gas?

Mr. O'Brien: That is a stunning statement the week after Centrica announced a £1.2 billion proposal to create the second-biggest gas storage facility at the old gas field in Baird in the North sea. We hope that that will come on stream from 2013. There are 17 other projects, too. That is one of the main areas for us, and the Government are setting out their priority of bringing gas storage on board. Let me be clear. The hon. Gentleman’s claims that we were suddenly about to run out of gas take no account of the fact that the Norwegian gas fields were pumping vast amounts of imports into the country. We were therefore able to manage successfully and capably the issues that arose as a result of the recent cold snap and the Russia-Ukraine dispute."

Other Conservative members asked interesting questions too.

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Highlights from the Pre-Budget Report debate

Following Shadow Chancellor George Osborne's success in securing it, the House of Commons held an Emergency Debate on the Pre-Budget Report yesterday.

Mr Osborne was on bullish form:

"The public would have found it extraordinary if the House of Commons had not properly considered the huge tax measures put forward by the Chancellor on Monday, or indeed the tax measures concealed by the Chancellor on Monday. Those measures are being debated by families across the country who fear their impact, and it is astonishing that the Government did not want them debated in the House of Commons.

The only explanation is that the Prime Minister is running away from the argument, because he knows that he is losing the argument. This Budget started to unravel from the moment it was delivered. The doubling of the national debt shocked the entire country. [ Interruption .] Labour MPs may not be shocked, but the country is shocked to realise that the Government have taken it to the edge of bankruptcy. Within minutes of the report being published, it became clear that the national insurance rises would, contrary to the Chancellor’s claims, hit people on modest incomes. The small print of the Budget book shows that the Chancellor had been less than candid about the stealthy duty rises on alcohol and petrol. Then we discovered the £100 billion black hole in the tax revenues with no explanation of how it will be filled.

...

Yesterday lunchtime, the Institute for Fiscal Studies pointed out that the new top rate would raise, in its words, “virtually nothing”. The Governor of the Bank of England told the Treasury Select Committee yesterday that the Government should be focusing on fixing the banking system. Meanwhile, retailers are up in arms about the huge costs and logistical nightmare imposed by the temporary VAT cut. Last night, the Chancellor U-turned on the proposed hike in whisky duty, which he had announced only 24 hours earlier. Finally, it has been revealed in an official Treasury document signed off by a Treasury Minister that there is a secret tax bombshell to increase VAT to 18.5 per cent."

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Conservative climate change sceptics speak out again

There are still some hardy Conservative critics of conventional climate change wisdom in the House of Commons. On Wednesday Mr Lilley introduced a debate on the Stern Review in Westminster Hall. (Lord Stern's main conclusion was that one per cent of global GDP per year is needed to combat climate change. He has since revised that upwards to two per cent.)

The debate makes for a fascinating read. Many of us feel hopelessly confused about the whole issue of climate change. A good speech from an able politician - replete with evidence and articulated clearly - really can help advance one's understanding of a subject. Many of us moan about soundbite politics and inane remarks from MPs. It is striking wading through Hansard to see just how often they make excellent, detailed and substantive speeches.

That preamble serves in part as an explanation for covering the debate's highlights at some length.

Mr Lilley cast doubt on the standards of the Stern Review:

"In his review, Professor Stern makes much of the importance of the peer review process, but his report was not subjected to peer review, and it is time that it was, or at least to a common or garden review in the House."

He later added:

"The simple fact is that since the beginning of this century, the average global temperature has flatlined; indeed, over the past 18 months it has fallen back and, according to the satellite measurements of temperature, it is now basically back at the level it was in 1979, when such measurements started to be taken. Professor Stern ignores that and, throughout his report, refers to continual global warming. However, global warming has not continued. Even Adair Turner, who on all other topics is a model of objectivity, ignores recent developments when discussing climate change, in the section of his letter to the Treasury summarising recent developments. The facts show that the world has not been heating over the past decade. The response is, “So much the worse for the facts.” While we were passing the Climate Change Bill, based on the assumption that the world was becoming hotter, I mentioned in a point of order that it was snowing outside in October for the first time in 70 years. I was told that I should realise that exceptional cold was a consequence of global warming—so much the worse for the facts.

The recent period of global cooling does not itself disprove the greenhouse effect. The greenhouse effect is a scientific fact. Other things being equal, an increase in carbon dioxide and other greenhouse gases in the atmosphere will raise the temperature. However, the recent period of cooling does suggest that either manmade global warming may be smaller or that the impact of other factors may be greater than climate models have so far assumed. In those circumstances, the climate models should be adjusted; the facts should not be ignored."

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Conservative dissent on climate change

Yesterday the House of Commons continued to debate the Climate Change Bill. In particular, the Government is eager that emissions from shipping and international aviation be reduced. They have not been included in the Bill's target of an 80 per cent reduction in greenhouse gas emissions by 2050, however.

Instead amendments have been introduced that would require the Government to publish regular projections for emissions from international aviation and shipping. Within five years shipping and international aviation should be included in the Government's targets or an explanation laid before Parliament as to why they have not been.

The Conservative front bench has welcomed this development. However, some Conservative MPs have dissented.

Hitchin & Harpenden MP Peter Lilley (a former Secretary of State for Social Security) offered this observation:

"In the speeches of a number of hon. Members, it has been assumed that the whole House is unanimous on the measures before us, and on the Bill that they amend or add to. Historically, the House has made its worst mistakes not when it is divided, but when it is virtually unanimous; not when it is adversarial, but when MPs switch off their critical faculties in a spasm of moral self-congratulation. My concern is that, in considering these measures, we are displaying that tendency. It is vital that we bring the House back down to earth by considering the hard costs and benefits of, and alternatives to, what is proposed and what we are doing. We have not done that very much so far in the debates in the House. Only once in Committee was mention made of the costs and benefits of what we are proposing."

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Peter Lilley proposes link between MPs' pay and the transfer of UK powers to the EU

On yesterday's ToryDiary we highlighted Peter Lilley MP's idea to link his and his colleagues' remuneration to their failure or success at transferring powers to the EU.  Posted below are some highlights from Mr Lilley's speech in the House of Commons yesterday.

MPs' pay should reflect their responsibilities: "In virtually every occupation, it is recognised that pay should reflect responsibilities. If people receive more responsibilities, they get higher pay. If they move to a post with fewer responsibilities, they expect to receive lower pay. The same should be true of Parliament. If, as is contemplated under the Bill that deals with the European constitutional treaty, this House hands over more of its powers to European institutions, MPs’ remuneration should reflect that diminution of their responsibilities. If, on the other hand, as my right hon. Friend the Leader of the Opposition has promised, Parliament regains some powers, such as those over social and employment policies that were conceded in the Amsterdam treaty, that should be reflected positively when MPs’ pay is assessed."

So many UK powers have already been transferred to the EU: "The German Government estimate that more than 80 per cent. of German laws are now decided at a European level. Our own Trade Minister has admitted that “around half of all UK legislation with an impact on business, charities and the voluntary sector stems from legislation agreed by Ministers in Brussels.”... The total scale of EU legislation is enormous. Last year, the EU passed 177 directives, which are more or less equivalent to our Acts of Parliament, and 2,033 regulations, which become directly enforceable in this place, not to mention 1,045 decisions. Even that huge tally ignores the extent to which our powers are diminished by our inability to do things that we would like to do because they would conflict with European law. When I was a Minister, officials would frequently say, “No, Minister, you can’t do that”, because something was within the exclusive competence of the European Union."

This Bill may concentrate a few Euro-enthusiasts' minds: "My Bill is designed to provide a wake-up call whenever we risk going further down that route, although I accept that it has little chance of becoming law in this Parliament. Those who support the transfer of power from here to supranational institutions should logically accept that our pay should reflect the diminution of our responsibilities. But, strangely, all the Euro-enthusiasts whom I asked to sponsor the Bill declined to do so without explaining why. Too many Members are happy to avert their eyes from what is happening, so long as they retain the prestige and emoluments that were appropriate to a fully sovereign Parliament. Turkeys do not vote for Christmas."

MORE HERE.