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Issue Date:- 14 December 2008

CALL TO CUT VAT ON ENERGY SAVING FOR SOUTHPORT HOMES

WITH gas and electricity prices soaring by up to 27%, a Southport Euro-MP is calling for VAT rates on energy saving products to be slashed.  There has already been an overall rise of 90% in gas bills since 2003, while electricity bills have risen by 66%. Suppliers blame the increases on the soaring cost of fuel.  Chris Davies says the recent increases must spur the Government to promote energy efficiency measures for households.

A recent survey by the Energy Savings Trust revealed that Britons are Europe’s worst energy wasters. It claims that simple improvements could reduce heating costs by a 3rd, knocking £250 off average household bills.  Experts say that cavity wall insulation can pay for itself within 5 years while the costs of loft insulation can be recouped within just 2 years.  The cheapest improvements, insulation jackets for hot water tanks and better draught proofing, can produce a 100% return on investment within months.

Chris Davies, who is the Liberal Democrat climate change spokesman in the European Parliament, says he cannot understand the government’s failure to make energy saving its number one priority. He said:- "1/3rd of all Britain's energy use takes place in our homes. If we really want to fight global warming then we must make it easy for people to cut their bills.”

The MEP is calling for a reduction in VAT on energy saving products, and for the creation of a one-stop service that can advise householders and carry out improvement work.  “Energy saving is a win win policy that saves money at the same as it helps save the environment,” said the MEP. “Government ministers should be falling over themselves in their rush to promote it.”

CHARITIES SECURE VICTORY FOR YOUNG RUNAWAYS

ED Balls, Secretary of State for Children, Schools and Families and Kevin Brennan, Minister for Children will make a historic announcement that will give a lifeline to the 86,000 children under 16 across England who run away each year, including 11,600 from the North West of England.  Responding to 20 years campaigning by The Children's Society, and backed by a coalition of 30 charities, the Government will unveil a strategy to ensure adequate measures are in place to protect and support every runaway under 16.

Research carried out by The Children's Society, revealed that most of the 86,000 children who run away from home or care every year are fleeing family conflict, neglect and abuse, with girls aged 14 -15 the group most likely to run. Once these children run away they are often forced to sleep rough or with strangers and are at greater risk of sexual exploitation, violence and drug taking.

The Government has recognised The Children's Society's and the Coalition's call for a national safety net for runaway children which will look at developing:-

Safe Places:- speedy review of how local authorities can provide safe places and

Safe Procedures:- including guidance for local authorities AND a new national indicator on young runaways

Safe People:- including roles and responsibilities in supporting young runaways

The national safety net is the result of a 9-month national consultation led by The Children's Society, with support from the Department for Children, Schools and Families. The police, voluntary sector and local children's services all contributed what they believe should be in place to support runaways under 16. Findings of this consultation are published in the report 'Stepping Up'.

Bob Reitemeier, chief executive at The Children's Society said:- "For over 20 years The Children's Society has campaigned for a national safety net for young runaways. Many of these young people who end up on the streets, some as young as 7, are exposed to abuse and exploitation. The announcement of a cross-departmental group to take responsibility for this group of children is fantastic news, and made possible by successful collaboration between the Government, police, local authorities and many other children's charities. We can now finally say that these children are a priority in our society. We look forward to helping design a national network of safe accommodation and preventative measures that will ensure the childhoods of young runaways are protected and not forgotten."

Support from Westminster has been led by Helen Southworth, MP for Warrington South and Chair of the All Party Parliamentary Group for Runaway and Missing Children.  Since 2006 a coalition of charities, including The Children's Society, Missing People, The Railway Children, NSPCC and local charities including Rerun in Dorset and Talk Don't Walk in Cheshire, have united to campaign for support for young runaways. The coalition will present Ed Balls with a running shoe signed by over 100 MPs in support of today's announcement.

Andy McCullough, Chair of the English Coalition for Young Runaways, said:- "The Coalition welcomes the Government's commitment to supporting young runaways. The Coalition has championed the plight of these children and called for a coordinated network of support to help protect them and rebuild their lives. We feel strongly that this is a giant step in the right direction and look forward to a time when all runaways under 16 will have some where safe to go."

Energy Performance Certificates an Opportunity or Threat?



By Gareth Wilson, DTZ Valuation Associate Director

THE requirement for buildings to display Energy Performance Certificates (EPCs) is the latest drive by the Government to encourage users of commercial property togo green.

In the UK, the legislation has already come into effect for domestic property, being a major plank of the Home Information Pack, launched last year. For commercial property, the requirement for Energy Performance Certificates will come into effect on 6 April 2008 for buildings of more than 10,000 sq m, and by 1 October 2008 will cover the construction, sale or rent of all commercial buildings.

So what will the legislation mean for the occupier and the property owner?

With a building’s energy footprint becoming measurable for the 1st time, occupier demand will become increasingly focussed towards energy efficient buildings as they seek to lower their occupational running costs and to conform to their own corporate and social responsibility agendas.

This move will be led by the larger, more sophisticated Corporates in the first instance, who are increasingly setting out their green agenda intentions to shareholders and customers. Developers of new property will seek to meet the aspirations of these occupiers to encourage occupation of their buildings.

The increasing use of greener technologies and designs, which can currently be expensive, is likely to make those technologies more cost effective as their use becomes more widespread and new and more cost effective innovations, along with a greater range of suppliers enter the green building market place. Therefore the cost of greener development, which in the short term is likely to be higher than for standard buildings, should become neutral compared to existing building techniques over the longer term.

Developers are already beginning to address green issues, seeing the potential as a unique selling point from both an investment and tenant's point of view.

For example, Modus Urban Regeneration has completed Britain’s first carbon neutral shopping centre at Grand Arcade, Wigan, which includes eco-friendly features such as photovoltaic tiles, a "green" roof with natural habitat vegetation and natural ventilation rather than air conditioning to the main mall.

What about the cost savings the occupier will make in running the new, greener building?

There is an argument that this saving should pass to the landlord/investor in the form of increased rent. The occupier can afford to pay more, and is in competition to secure occupation in what will be a scarce supply of green buildings. It will be interesting to see whether this will indeed play out.

So occupier demand will increase for greener buildings in the right locations. We are also seeing investment demand specifically for greener buildings, with new investment funds set up specifically to target this type of asset, where investors perceive that there is greater potential for rental growth, and greater potential for occupier demand.

So what will become of older, existing stock?

The existing stock of commercial property is likely to score less well in terms of their energy performance. However, in my view, this will not necessarily spell the death knell of this type of property. Location is still key, and much depends on the type of asset. The EPC is only one aspect of an occupational decision, whatever that occupier’s green credentials. For retail property, it is unlikely that a building will be dismissed by an occupier on the grounds of energy performance if it offers the right size floorplate in the right location.

The impact of EPCs is likely to be felt first in the office sector, where location is marginally less important, and buildings become obsolete more quickly. This leads to a more ready recycling and redevelopment of office buildings. This is particularly true of headquarters buildings where the occupier is making a statement about its business.

We are likely to see a two tier market emerging over time where less energy efficient buildings will stay vacant for longer or greater incentives will need to be offered to secure occupiers and rental growth will be poorer for this type of property. This will in turn have a negative impact on value.

However, I predict that as older property begins to suffer from the impact of EPCs, there will be the potential to buy and upgrade buildings to improve their energy performance ratings, offering opportunities for the savvy investor or developer to make a tidy profit.

What is your view on Energy Performance Certificates?   Let us know by emailing the Southport Reporter newsroom at news24@southportreporter.com or via Skype.

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