Climate Change Bill [HL]

I am not saying that we are going to go over from one budget to another. We are in agreement with that. As I understand what I have put before the Committee, I was dealing with the five-year period of a budget but not going over from budget 1 to budget 2—that is, from the first five years to the second five years. That would be a problem. I promise to write because I am probably going to get the figures wrong but, as I understand it, there is no difference between us. That is why I made the point that if the emissions in the last year of a budget period—that is, a five-year period—were revised upwards by an amount because of an exceptionally cold winter, if the period had already ended the options would be incredibly limited for the Government because we would be in the next budget period. As I understand it, the implication is that we would not go over from one budget to another. Effectively, what you have got has to be contained within the budget period, which is exactly what the noble Lord is saying in regard to the trading system. Amendment No. 78 requires approval from the Committee on Climate Change before either borrowing or banking and effectively confers powers on the committee which are beyond what we consider appropriate. We believe it is for the committee to advise and for the Government to take decisions—a theme which I have followed throughout the Bill—and Amendment No. 78 would change this relationship. Our view is that ultimately the decision as to whether to use the banking or borrowing provisions should rest with the Government of the day given the importance of the decisions on other factors within the Government’s gift, including economic competitiveness, fiscal policy and policy delivery. I therefore ask that the amendments be withdrawn and Clause 13 stand part of the Bill. I have received a note which it will probably be helpful to explain before I write to the noble Lord. You cannot bank between phase 1 and phase 2—that is, between 2005-07 and 2008-12—because phase 1 is a preparatory phase. From phase 2 onwards you can bank between the periods. So there is a difference there but I will write and clarify that point.