Speech on Energy & Climate Change by Iain Smith MSP

12.00.00am BST (GMT +0100) Thu 24th Sep 2009

SPEECH ON CLIMATE CHANGE FROM IAIN SMITH MSP

CONVENER, ECONOMY ENERGY & TOURISM COMMITTEE IN THE SCOTTISH PARLIAMENT

LIBERAL DEMOCRAT BOURNEMOUTH CONFERENCE

22 SEPTEMBER 2009

Nothing we debate this week is more important and more urgent than tackling climate change.

And nothing is more important and urgent in tackling climate change than addressing how we use energy.

That is why I welcome this debate this afternoon which sets out a clear agenda for action on climate change that sets the Liberal Democrats apart.

And action is what is needed.

Action on the absurdity of large centralised thermal power stations that send as much as 65% of the energy they use up the chimney in wasted heat.

Action on renewable heat schemes and home insulation - cutting carbon emissions, cutting fuel poverty and creating jobs.

Heating counts for 50% of our overall energy use, more than transport, aviation or electricity generation put together, yet receives virtually no attention from our Governments.

At Westminster and Holyrood we have Governments that would rather issue consultation documents than take action.

Take smart metering for example.

Everyone agrees, even the Labour Government, that they can make a major contribution to reducing energy waste in the home and should be rolled out.

The industry is crying out for decisions on specifications and roll out programmes, but, what action has the Labour Government taken?

Issued another consultation!

In Scotland since 2007 we have seen the minority SNP Government stall the good work done by the Scottish Liberal Democrats when we were in Government.

The Energy Efficiency Action Plan, which we initiated in 2005 and should have been finalised and published by the end of 2007 has still not seen the light of day.

But don't worry, we have been promised a, draft for consultation this autumn!

No energy being used up by the SNP there then!

And on marine renewables Scotland should be leading the world.

But there is a serious gap in the funding available to develop new technologies from experimental to prototype.

Funding that was being provided by the Wave & Tidal Energy Scheme set up by the Liberal Democrats in Government in Scotland.

Instead of funding a Wates 2 to bridge this gap now, the SNP has established a "Saltire Prize" a shibboleth that has more to do with Alex Salmond strutting on the international stage than it has to do with supporting renewable energy development.

But the UK Government also needs to act to support the development of renewables.

The UK Government could release £150m of fossil fuel levies paid for by Scottish consumers to support renewables in Scotland, but this tied up by Treasury rules that mean if we used it, it would be cut from Scotland's budget.

And the present transmission charging regime operated by Ofgem and the Nation Grid means that generators in the North, including renewable generators, have to pay £190m to access the grid whilst those in the South are actually paid £140m to do so.

This is simply perverse, even when considering the old model of large centralised thermal power stations.

The argument is that you need to encourage generators to locate near to the market.

But it acts as a direct disincentive to developing decentralised energy production such as combined heat and power schemes and community and micro-generation.

And to investing in renewables, which by there nature have to be developed where the wind waves or tides are, not where the people are.

The Pentlands Firth, that lies between the North Coast of Scotland and the Orkney Islands, is in the top 5 sites in the world for potential tidal energy.

National Grid, you cannot relocate the Pentland Firth to Birmingham!

Renewable energy schemes in the North of Scotland are being scrapped because of the additional cost burden of transmission charges and these must be changed now!

Conference, the time for talking is passed.

It is time for urgent action on energy and climate change, and only the Liberal Democrats will deliver this.