As-it-happened: PM's monthly press conference

Gordon Brown announces energy efficiency measures

Thursday, 11, Sep 2008 12:00

Welcome to politics.co.uk's As-It-Happens page. Here you can keep up to date with major parliamentary debates, press conferences or news events in real time. Just hit refresh on your browser to see the latest development.

This event is now over, but you can see how it developed below.

- - - - - - - - - -

The prime minister is using his monthly press conference in Downing Street to field questions about the scheme. Originally expected earlier this week, the deal follows weeks of strenuous negotiation with the energy sector.

The new announcements are worth £1 billion aimed at a permanent reduction in bills. Loft and walling installation plans are announced, with every household offered up to 50 per cent off. Six million households are to be insulated by 2011, he explains. And 600,000 low income households will receive lower social tariffs by the end of the year, while half a million low income household will not have their prices rise. "There are plans to meet with high street banks to actively promote direct debit payments of energy bills, which can save £100 – 150 a year," he adds.

As outlined in the Budget, pensioners will receive an extra £50 alongside their winter fuel benefits and those over 80 will receive £100 more. Mr Brown also announces that Ofgem will be undertaking a review of how competitive the energy market is. "In truth we all know we need a lasting change… we need permanent changes that can save money," he says.

"Our objective is nothing less than a sea change," Mr Brown says, as he announces £910 million of funding over the next three years. Environment secretary Hilary Benn is now appearing, getting excited about monthly savings for insulation. Cavity wall insulation will save £150 a month, he says.

The prime minister is asked first about windfall tax, and how many people can be insulated in the next few weeks? "We looked at all options," he replies. "Instead of a windfall tax this is the better way of moving forward." Special payments will be made through legislation and by energy suppliers. He makes an important point: the cost will not be passed on to the consumer. "That's very important." He's right. Mr Brown says around two million people a year will benefit from the insulation and that those on pre-payment meters will benefit immediately. Social tariffs are being reduced. "For large numbers of people, with the advice we're giving… a lot of people will be seeing benefit from these measures in the next 12 months." Mr Benn butts in, underlining the point the pair want to get across: it will make a difference immediately. Mr Brown requires the last laugh: "Let's be clear," he adds. It's like one-upmanship, and it's all the prime minister's idea.

Next is a question about polls: "I wanted to get across the programme of the government." And then back to the economy, reeling out the credit crunch cliché, before discussing being "permanently vigilant against al-Qaida" in response to a question about the seventh anniversary of 9/11 today.

A return to the energy package, specifically those who have been making "ghastly" comments. Mr Brown quickly gets back on message: "We are taking action that requires the energy companies to make special payments of £910 million. That is a considerable amount of money." You'd think the PM might be a bit more excited about his announcements. As usual he looks bored, and Mr Benn seems like an excited puppy by contrast. Here's business secretary John Hutton popping up, who's taking a more serious line. Government will not hesitate to intervene, he says, "threatening coming down like a ton of bricks" on anti-competitive activity. Price-fixers, you have been warned.

Some light relief: a football question. "Can I congratulate the England manager [and] particularly Theo Walcott and Wayne Rooney for the goals that were scored. It is perhaps a little unfortunate that large numbers of people were not able to see the match live and that is something a lot of people will want to see answers to." Lack of free-to-air coverage is fast becoming a political issue – beyond the Lib Dems.

And then back to the drudge of food prices and oil prices. "I understand the anxiety that people are seeing. Our job is to see people through this." He points out his problems in No 11, including 9/11 and the Asian crash. He did it then, the message says, and he will do it again. "These are long-term changes that are taking place in the world. The world is never going to be the same again so let us change the patterns of consumption." He takes "personal responsibility", he admits, before pointing out that it is nothing to do with him. Look at other countries in the world – they're all also struggling. "Every country's facing these difficult circumstances. We have a duty to help people through these difficult times."

Could petrol retailers be not passing on recent falls to motorists, Mr Brown is asked. He responds by talking about action against the oil companies – "action" including taxation being raised from 40 per cent to 50 per cent.

The economy continues to dominate. "When people are facing unique circumstances, you've got to take action that is appropriate," Mr Brown says. It's hit that 20-minute mark where it starts to get repetitive. "We'll have to wait and see what happens over the next few months," he says, trying to upbeat about recession. It's impressive he's even trying. Comparisons with previous difficulties continue. "You should look at the fundamental strength of the economy.

Next comes a foreign policy question about French president Nicolas Sarkozy. Is he doing a good job, beetling around Europe and trying to reconcile the Russians and the Georgians? Mr Brown smiles patronisingly. "I welcome the agreement he got in Moscow," the PM says. "We have taken this major initiative on energy. I went to Jeddah… we are holding a conference in London on December 19th to bring together all energy consumers and producers. We've got to change from the dictatorship of oil to a far more balanced energy policy." He appears to have forgotten about Mr Sarkozy, as he moves on to global changes. "The reason why oil prices are high is in the end quite simple: because there is a demand that is not being met by supply. We're leading the way with the December conference."

What about Zimbabwe, and the looming deal between Robert Mugabe and the Movement for Democratic Change? The PM has previously been an outspoken critic of Mr Mugabe and makes that clear now, but in veiled language. "We want an outcome that reflects the democratic will of the Zimbabwe people." He's looking for a "transition" – which suggests the British government could accept such a deal purely through pragmatism.

Back to the energy package, with Mr Brown pressing the global themes: "I don't underestimate the importance of saying to people, look, the world has changed. We've got to make the best use of our energy."

Fox News gets the next question, on Iran – famously part of the Axis of Evil, of course – and its nuclear plans. The prime minister, conveniently, makes it black and white: comply or… don't comply. Negotiations are continuing of course, with Mr Brown impressed by the unity of the international community. Further sanctions are possible, he adds.

Metropolitan police commissioner Sir Ian Blair's future is next up. Mr Brown says the Met deserves to be "commended" for coping with the number of plots it has to follow. "We're very vigilant," he says. Note use of the 'we' – not much acknowledgement of division there. Or of not sharing the credit for the good work being done. "I would emphasise the importance of the legislation we've put before the House of Commons," he adds, mentioning 42 days. What a cheek.

In party politics, Mr Brown is invited to preview his conference. The PM says his message to the country is the same: it's all about getting on with the job. We've heard that before – let's hope he can come up with something better in two weeks' time.

And next, the Glenrothes by-election campaign. Will the prime minister visit? He reveals he was there last Friday, in his capacity of chancellor of Adam Smith College. Journalists aren't happy with this – he's dodging the question – but it's worked. Take that, precedence!

Back to the Middle East: and the developing rapprochement between Lebanon and Syria. Mr Brown says the UK is in "full support" with Lebanon and this is a "strong message" to Syria. He will keep in touch with Mr Sarkozy, who is doing most of the diplomatic legwork. A bit of tension there.

And then back to the December 19th energy summit, with details requested. Mr Brown says Downing Street is thinking about who to invite.

The PM brushes off a more direct follow-up question over confidence in Sir Ian Blair with a quick "yes" before moving on to concentrate on troops in Afghanistan. "We are increasing our own troops in Afghanistan," he points out. That's the bottom line: "we will continue to make our contribution".

Earlier Mr Brown said the £910 million in the energy package would not be passed back to consumers through price rises. How does he know this? The PM is unable to answer, it seems. "I do not expect they will pass on these prices to consumers." In short, he can't be certain, and so resorts to Mr Hutton for help. Mr Hutton refers to Ofgem's inquiry into the market, despite the fact it's not really about price-fixing. He says a "fair deal" for consumers underpins the government's effort. Mr Brown butts in for another last word, repeating Mr Hutton's sentiments. "I do not believe with the £910 million we are securing today, there is any need to pass that on to consumers."

The Lisbon treaty pops up next. "It's a matter for the Irish to resolve," Mr Brown says. He says the Irish government will report to the Council of Europe in October and that the issue cannot be turned to until then.

Here's a question about credit in the good times. "I do take responsibility for the economy and working with the chancellor and others we're determined to do our best. But look – go round any country in the world and see what people are saying. If the oil price had trebled in any other decade except this, there would have been an immediate recession. The world economy depends on oil. If food prices go up, that gives every government problems. The question is how you come through this challenge. I think you will see we've maintained high levels of unemployment, we've kept interest rates low." Next comes another comparison with the 1990s, when Mr Brown says it was much worse. "The world economy's going to double in the next 20 years, whatever happens. The question is which countries are going to benefit from that. I think we are well-equipped to do so."

What impact will Russia have on international relations? "We want a good relationship with Russia," Mr Brown says. "But Russia must maintain the obligations and commitments it makes to the international community." He slowly works round to the point made in yesterday's statement to MPs: that reliance on oil and gas, much of which comes from Russia, is not the future. "More nuclear-building, more emphasis on renewables and new technologies." Mr Hutton echoes the prime minister's comments on "energy security". "This is a really, really important issue for us – we are applying maximum effort to ensure a good outcome." That's business talk if ever I heard it.

Last Friday's elections in Angola cannot be commented on by Mr Brown, he says. No comment – unusual – and contrasting enormously with his involvement in Zimbabwe.

Is David Miliband getting "fidgety"? No comment on reshuffles. All of a sudden, the hatches have come down. Just 15 minutes to go.

We're getting down to the nitty-gritty now, and commitments made last year by Mr Brown on the issue last year. The Warm Front scheme is getting more money, he says, but it appears there has been some combining and merging. Fortunately for those less schooled in the details, Mr Brown returns to the details: the new system will be both "quicker" and "faster". Mr Benn reveals the government decided two years ago to double the amount spent by energy companies. He widens total investment over three years of £6.5 billion. "This is a government that is really committed to putting in money from a variety of sources to get people's bills down."

Mr Brown frowns at a journalist's remark about "eagerly awaiting" the Glenrothes by-election. And he goes on the offensive about the Calman Commission – saying that when it comes to devolution issues, he'll be waiting for their line.

Any chance the PM might break the 40 per cent of GDP public borrowing rule? Astonishingly, he doesn't rule it out: "You only report on these things at these times [Pre-Budget report and Budget]. The right thing to do is to keep the economy moving forward, to enable people to stay in jobs, to see that money is being spent on the economy by continuing our investment programmes. Facing these difficulties we are taking the right decisions to spend and invest. That is the right thing to do to keep our economy moving through difficult times. It's the duty of government to keep the economy moving when you have quite unique times."

Mr Brown condemns racism affecting Asian police officers, before announcing newly-elected Pakistani president Asif Ali Zardari will be visiting Britain "in the next few days". He is worried by the roadside bombings of the Taliban and the insecurity and "porousness" on the border is a problem, calling for a "new security strategy" which is being discussed at the moment.

The prime minister is asked to comment on the tier two immigration plans announced two days ago. "We have a policy of managed migration. Under the new points system, people who have no skills to offer the economy will not gain the points they need." He adds: "Where people are in this country and working… we will do everything in their power to protect them from exploitation."

Time to squeeze in another question, about Australian troop commitments in Afghanistan. "There are some countries we are talking to who are prepared to do more to provide equipment where they're not able to provide troops," he says. It's not just about troops, in short, despite Mr Brown scaling up what is believed to be necessary to beat the Taliban. "All contributions countries can make in different ways are welcome."

And that is that for another month. It has not been as focused on the energy package as might have been expected – a lot of foreign policy has crept its way in – and there has even been room for a little bit of lightness thanks to last night's football results. The economy dominated, however, leaving Mr Brown facing underlying problems with arguments that might not convince everyone.