My hon. Friend will understand that I am not going to speculate on that, given that it is not current party policy or under discussion. What I will say is that the Government have a duty, if they go ahead with a privatisation that we do not support, to be absolutely sure they get value for money for the taxpayer, as well as to give an absolute guarantee that they will protect the bank’s green purpose.
I have praised the Government for the introduction of the Green Investment Bank, but why would they do anything to place its central green mission in grave doubt? I remind the House that the bank was first proposed under the previous Labour Government. It was first mentioned as a proposal for development by the former Chancellor of the Exchequer, Alistair Darling, in one of his Budgets. It was developed in the Cabinet Office and the Department for Business, Innovation and Skills when I was a Minister in those Departments. It was introduced under the coalition Government, and it has made a good start. It has been able to participate in the financing of projects that would otherwise not have taken place and that make a real contribution to meeting our commitments under the Climate Change Act 2008.
I think we all agree, throughout the House, that the creation of the bank is a good news story. I do not see any dissent from that proposition from anyone in the Chamber. We have therefore come to a strange pass when even something we all agree is a good thing—good borrowing for sustainable purposes—is classified as bad for no other reason than that it appears on the Government’s books.
During the difficult years following the banking crash, in which we were sometimes in recession, a significant part of the UK economy’s growth came from the green economy. By some estimates, it accounts for 1 million jobs in the low-carbon sector and is worth more than £100 billion. It is disappointing that the Government are in danger, if they are not careful, of undermining one of the key drivers of that sector. If we could tap into our country’s wind, wave and tidal power, we could create thousands more high-quality, sustainable jobs for our economy as well as doing the right thing for the environment.
When the Government announced their privatisation plans last June, the Secretary of State assured the House in a written statement:
“This should bring a number of important benefits, giving GIB greater freedom to operate across a wider range of green sectors in accordance with its green purposes, which are enshrined in legislation.”—[Official Report, 25 June 2015; Vol. 597, c. 27WS.]
He emphasised that the green purposes of the GIB were protected by the legislation in which its duty to pursue them are enshrined. After that, something obviously went wrong with the Government’s proposals. They received advice from the ONS that led them to say instead that they intended to repeal the very legislative protection that the Secretary of State had prayed in aid on 25 June 2015 when he announced the decision to privatise the bank. By October, they were effectively saying that it did not really matter whether they repealed the statutory protection, as long as they made sure the bank did not appear on their books. In his letter of 15 October, when he announced his intention to repeal the relevant measures in the Enterprise and Regulatory Reform Act 2013, the Secretary of State offered no assurance that the bank’s green purposes would definitely be maintained.
We have been demanding assurances on how we can ensure that the bank maintains its green purpose when it is privatised and does not simply become yet another bank—albeit a very small bank, but one that could easily be gobbled up by somebody else in the marketplace. That is why Labour and other parties defeated the Government on this issue in the other place and introduced the special share that we are trying to reintroduce in new clause 4.
The Government say that the GIB can create the special share itself. In Committee, the Minister quoted a letter from the chairman of the bank, Lord Smith, to Lord Mandelson and Lord Teverson. She may well quote it again today; we will find out in a moment. In Committee, she said that she was confident that that approach would satisfy the ONS, but could not give us a guarantee. As I said then, we need an absolute assurance on that before we relinquish the legislative opportunity to future-proof the purposes of the GIB.
Since Committee stage, the bank has written to hon. Members, as is its right, outlining its plan to issue the special share envisaged in new clause 4 itself, rather than through the Bill, which is what we are proposing. Its reason for doing that is its belief that the ONS will then allow it to be classified as off the Government’s books. I asked the GIB whether it could guarantee that. Colin Faulkner, its director of government affairs, responded to me by email, writing:
“You’ll likely be aware that ONS doesn’t engage directly with arms length bodies like GIB. At the same time, however, we have been engaging closely with the Government over all matters relating to the sales process, and this is an issue where we’ve been as close as we can to Government throughout. We understand that Government has been engaging closely with ONS on this whole issue, including the special share structure which GIB is putting in place, and we understand that on the basis of those discussions the Government were sufficiently satisfied to allow the sales process to proceed.”
On that basis, if the Government say they are satisfied, they should be able to guarantee categorically, here on the Floor of the House, that their special share proposal will definitely be acceptable to the ONS. I hope the Minister will say that. If she wants to intervene and say that now, she can, but I hope she will at least be able to say it in her response. She is not indicating that she wishes to intervene.