The next item of business is consideration of motion S4M-11878, in the name of Fergus Ewing, on the Infrastructure Bill, which is United Kingdom legislation.
I would appreciate it if Mr Ewing could speak until 5 o’clock.
16:55
Thank you, Presiding Officer. I always seek to oblige.
The legislative consent motion relates to provisions in the Infrastructure Bill that relate to the renewable heat incentive. The motion states:
“That the Parliament agrees that the relevant provisions of the Infrastructure Bill, introduced in the House of Lords on 5 June 2014, relating to the administration of the Renewable Heat Incentive, so far as these matters fall within the legislative competence of the Scottish Parliament or alter the functions of the Scottish Ministers, should be considered by the UK Parliament.”
The provisions relate solely to the administration and scheme delivery of the renewable heat incentive. Members will be interested to know that they allow for the appointment of an alternative administrator of the renewable heat incentive, along with the introduction of a new appeal mechanism, for the assignation of payments that are made under the RHI to a third party that is nominated by the owner of the renewable heat plant, and for some elements of existing secondary legislation to be changed using negative procedure.
The administration of the RHI scheme is currently limited to either the Office of Gas and Electricity Markets or the secretary of state at the Department of Energy and Climate Change. Currently, there is no scope to put delivery of the scheme out to competitive tender and to appoint a body other than Ofgem as administrator. Amendment is essential for ensuring the long-term cost effectiveness of the delivery of the RHI scheme, and it will allow the appointment of an alternative administrator.
Amendment is also required to enable a new appeals mechanism to be established so that decisions by the scheme administrator can be appealed. The new appeals process will strengthen the appeals rights for consumers and businesses. Details on the arbitration of appeals will be set out in secondary legislation, and the Scottish Government will work with DECC to ensure that any new appeals processes are robust and do not diminish the protections that are currently afforded to RHI participants.
The amendment that allows for all or part of the payments that are made under RHI to be made to a third party that is nominated by the heat-plant owner is of particular note. That will make it easier to raise finance to assist with up-front capital costs, it will help to drive the uptake of renewable heat technologies through RHI, it will assist in meeting the Scottish Government’s target to deliver 11 per cent of Scottish non-electrical heat demand from renewable sources, and it will significantly reduce carbon emissions from heating.
We have already had the opportunity to discuss those matters at the Economy, Energy and Tourism Committee. I was very pleased to canvass those arguments in some detail before members of that committee.
Can the minister clarify for my benefit whether the regulations will apply only to renewable heat or whether they could apply to the renewable heat element of a combined heat and power unit?
I believe that I can clarify that. The regulations would apply only to the renewable heat incentive.
I make it clear that we are giving consent only to the measures that relate to the renewable heat incentive, and not to other matters that are contained in the legislation. We lodged the motion because we wish to co-operate and to be constructive where it is appropriate to do so. We cannot accept other parts of the bill that relate to underground drilling access rights for oil and gas and to geothermal electricity companies, which would allow such companies to drill under people’s homes without their permission. It is unacceptable that Scottish people have not been afforded the right in the Scottish Parliament to scrutinise and debate that important principle, which affects fundamental property rights. We have made our opposition to the UK Government’s plans clear on numerous occasions already, and we will continue to oppose the measures as the bill makes its way through the House of Commons.
We support devolution of onshore oil and gas licensing powers to Scotland and are looking to work jointly with the UK Government to take forward the Smith recommendations in full and as quickly as possible. We will work to ensure that any such developments can happen only under the strictest environmental and planning rules in order to ensure that communities are protected and that local voices can be heard.
I move,
That the Parliament agrees that the relevant provisions of the Infrastructure Bill, introduced in the House of Lords on 5 June 2014, relating to the administration of the Renewable Heat Incentive, so far as these matters fall within the legislative competence of the Scottish Parliament or alter the functions of the Scottish Ministers, should be considered by the UK Parliament.