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Contractors World UK & Ireland
2011 Volume 2 Issue 1
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Construction News - Economy - Business - Regulations

New Entrants Essential if Green Deal to Work - continued

Exports help product manufacturers

Photo: Steve Gibson

“The Association welcomes the proposal for a cash back scheme for homeowners, based on the degree of improvement as measured by EPCs. However, in the longer term the government should base the level of stamp duty for the purchase of homes both on price and EPC rating. Such a system is already used with company car tax where both price and CO2 emissions set the taxable benefits and this has radically changed company car choice over a number of years. There seems to be no reason why such a dual price and environmental performance based system, could not have the same impact on home purchases, albeit over a longer period of time.

“Finally, there must be further work carried out on a transition process between the existing CERT scheme and ECO. As things stand, there will be a catastrophic collapse in cavity wall and loft insulation work at the end of this year when the CERT scheme finishes. It is essential that the new ECO arrangements provide for a short period of continued support for cavity wall and loft insulation, whilst the Green Deal becomes established.”

CBI say an opportunity but . .

In its response to the Government’s consultation on The Green Deal and Energy Company Obligation, the UK’s leading business group said making the Green Deal as consumer-friendly as possible will be critical to its success, especially at a time when household budgets are tight.

The CBI welcomes the Government’s allocation of £200m to incentivise early adoption of the Green Deal, and believes a simple voucher for early adopters, similar to the successful boiler scrappage scheme, could help to give it a kick-start.

Rhian Kelly,  CBI Director for Business Environment in Contractors_World_UK   Rhian Kelly, (left) CBI Director for Business Environment, said: “Without demand we haven’t got a Green Deal. Businesses are ready to work with the Government to excite and incentivise consumers, by emphasising the cost-saving as well as the carbon-saving benefits.

“The Green Deal has the potential to play a key part in the UK’s transition to a low-carbon economy. If successful, the Green Deal will be a win-win policy, delivering cost-effective emissions reductions and driving private-sector growth.”

The CBI is calling on the Government to make cost-effectiveness a priority when implementing the Green Deal and ECO. This will help enable the Green Deal to meet the “Golden Rule” - that anticipated cost savings for consumers will be greater than or equal to annual Green Deal charges.

Striking the right balance between consumer protection and business regulation is key to keeping costs down.

Ms Kelly said: “While the CBI supports a rigorous accreditation system for assessors, providers and installers, the Government must not allow the pendulum to swing too far towards costly regulation.
“This could lead to higher costs for the consumer, and we don’t want costs to start outweighing savings, as this would undermine the whole scheme.”

Under current ECO proposals, the majority of consumers will only be able to obtain subsidies for solid wall insulation, while subsidies for loft and cavity wall insulation will come to an end for many.

The Government’s own predictions suggest an annual drop in the number of cavity wall installations when the current subsidy regime comes to an end. So, to maintain demand and support a smooth transition to the Green Deal, the CBI wants loft and cavity wall insulation to be included within the carbon-saving element of ECO for a limited period of time.

Click here for more information:
>>> Construction Products Association
>>> CBI

 

 

 

 

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