LAST WEEK The Herald looked at the energy market and the ways in which different parties have approached the question of rising domestic energy bills.
That article discussed the ways in which taking advantage of existing energy efficiency schemes and the use of the most competitive tariffs would reduce bills far more than a simple price cut on the most commonly used domestic tariff.
Labour has claimed it will create over 300,000 renewable energy jobs throughout the country and put modern low-carbon industries at the heart of a £500 billion investment strategy, championing ‘a new green industrial revolution’.
One of the big ideas underpinning that commitment is to promote the growth of local energy companies and support the development of 1,000 community energy co-operatives. That’s accompanied by a commitment to 65% renewable electricity by 2030, aiming for 85% as technology improves and diffuses.
All of which will sound very familiar to Plaid Cymru, whose Shadow Environment spokesperson, Simon Thomas AM, has called for the creation of Ynni Cymru to promote Wales’ own self-sufficiency in domestic energy. It sounds like Plaid’s clothes have been lifted by Jeremy Corbyn’s promises to invest in similar schemes and raise investment across the UK.
Labour has set out a radical commitment to set up publicly-owned energy supply companies in every region focused purely on cutting prices. Under the same proposals, Government would take ‘control of the natural monopolies of the transmission and distribution grids’ currently run by the National Grid.
The Labour leader has made big promises, and the cynical might think that Labour may as well shoot for The Moon, given the remote chances it has of forming an administration under Jeremy Corbyn as PM.
“We’ve got a real opportunity to drive the green economy – to have green jobs, green growth, and make sure that we have our share of the industries of the future. Clearly there’s the climate change agenda, where we’ve got to get back on track, both nationally and internationally. And third, there is the issue of energy security, which I think is vitally important, which we need to do a huge amount of work on.”
Those were big promises, too. They were made seven years ago by David Cameron at the outset of his first term as PM, when he pledged to lead the greenest government ever. By 2013, David Cameron was keen to ‘get rid of all the green crap’, as the hopes of 2010 smashed into the economic and political realities of Treasury austerity.
The rug was pulled from under the renewables industry: following through on the pledge to virtually ban onshore wind, and slashing the feed in tariff. Overall UK carbon emissions had been falling but the growth in renewables deployment stalled, and solar companies employing thousands of people around the country went bust.
Five years later, at the outset of his second term, David Cameron pulled the Green Deal for UK homes.
On every single one of those policy decisions, commitments, and staggering reversals Theresa May went along, bobbing along like a cork on the tide of Cabinet collective responsibility. The number of times she has spoken out on energy policy in public can be counted on the fingers of one thumb. However, she merged the Department of Energy and Climate Change into a new Department of Business, Energy and Industrial Strategy in July 2016.
While that suggests a rather less overtly ‘green’ approach to the PR side of politics than her predecessor, it is noteworthy that Theresa May has expressed consistent and strong positions on the issue of energy security. Her first noteworthy public policy decision was to initiate a pause on the development of Hinkley B, ostensibly due to concerns of increasing UK reliance on Chinese investment in its energy infrastructure.
In addition, in a complex and volatile international energy market, there are clear attractions for the PM in adopting measure which enhance energy security and the reduction on the reliance of overseas energy. Her concerns on energy supply were echoed in the 2015 Conservative manifesto, which said: ‘Without secure energy supplies, our country becomes less safe and less prosperous’.
And, in 2008, Mrs May said: “I am thrilled to see that after years of Conservative pressure, we have finally passed a necessary and ambitious piece of legislation on Climate Change. Britain is the first country in the world to formally bind itself to cut greenhouse emissions and I strongly believe this will improve our national and economic security.
“To stay reliant on fossil fuels would mean tying ourselves to increasingly unstable supplies which could endanger our energy security and the Climate Change and Energy Bills mark an important step for both the health of our economy and the health of our nation. It is now vital that we stick to these targets.”
The logic of Mrs May’s evident and consistently expressed concerns on security of energy supply is to make the UK more self-sufficient. There are two sides to that issues: firstly, the extension of green energy generation; secondly, the extension of fracking and nuclear power.
The second limb of that proposition is the most contentious. Fracking is a public relations disaster waiting to happen and the first time it is scheduled to take place in a Conservative-held marginal seat is when we will see just how committed the Conservative party is to its use. As for nuclear power, it requires considerable public support and subsidy to make it even marginally viable for the long term.
The only large energy project requiring anything like the level of price support as nuclear power is the Swansea Tidal Lagoon, which for all its carbon-saving claims involves quarrying stone in Cornwall, building new jetties extending into the Bristol Channel and transporting the stone over by barge to Swansea by the thousands of tonnes to build a tidal barrage affecting marine life and habitats across the whole of Swansea Bay.
For someone as sensitive to polls as Theresa May it is worth noting that the BEIS tracker surveys on consumer views shows significantly higher support for renewable energy (at around 75-80%) than for other options. Opposition to renewables was very low at 4%, with only 1% strongly opposed.
However, and this is where energy policies and political judgement come into play, support for renewables was lower amongst those in social grade DE (72%), aged 65+ (73%), and social renters (75%).
The first two of those groups are key electoral demographics whose support Theresa May is actively courting. The triangulation of Conservative policy on energy, which now appears to have abandoned the notion that competition delivers the best results for energy users, might not swing a lot of votes, but the Conservative leader will not be shy of using every gimmick in her arsenal to court wavering voters looking for a way to justify voting Conservative.
WG settles ‘scandalous’ land sale case
THE WELSH GOVERNMENT has settled a claim against its former advisors about land sales which took place under a purported regeneration scheme.
The Regeneration Investment Fund for Wales (RIFW) had issued proceedings against Amber Fund Management and Lambert Smith Hampton concerning the portfolio sale of 15 properties in 2012.
The settlement has been reached on a commercial basis and without any admission of liability by any party.
The detailed terms have been incorporated into a confidential settlement agreement between the parties.
The Welsh Government Minister for Local Government, Julie James, said the £40.7 million tied up in the Fund can now be made available to support future investments across Wales.
RIFW was set up as an arms-length body by the Welsh Government to allow the Welsh Government to raise money which could then be used to fund regeneration and investments in Welsh businesses.
It was a complete shambles.
One of the advisors appointed had previous connections with one of the parties which bought some of the land at an undervalue.
Vital information was not relayed to the RIFW’s board by the Welsh Government and Board members were kept in the dark about transactions carried out in their name.
Under the oversight of their appointed agents and Welsh Government civil servants, RIFW sold publicly owned assets by private treaty and without prior valuation at a price that reflected the assets’ existing use, under sale terms that provided only limited protection to the public interest in their significant future development values, and via a negotiation process that left RIFW lumbered with undesirable assets.
The Chair of the Senedd Public Accounts Committee, Nick Ramsay MS, said: “The out of court settlement between the Welsh Government and the former advisors of RIFW effectively brings a curtain down on a very sorry and lamentable episode.
“The hasty sell-off of publicly-owned land at bargain-basement prices effectively deprived Welsh taxpayers of tens of millions of pounds which could’ve been used for essential services.
“We look forward to examining matters further with the Permanent Secretary and Head of the Welsh Government Civil Service, Shan Morgan, at our next meeting on Monday, November 23.
“We will be asking what robust steps have been taken to avoid history repeating.”
RIFW was set up as an arms-length body by the Welsh Government to sell off land around Wales including in north Wales, Monmouthshire and Cardiff, and use the money, in conjunction with European funding, to reinvest in areas in need of regeneration.
But the Public Accounts Committee found that the body was poorly managed, poorly overseen by the government, and that, because of a change in the direction of RIFW, from one of regeneration to property asset disposals, some of the Board members felt they lacked the necessary knowledge and expertise to fulfil their roles.
It also learned that the Board was not presented with key information regarding the value of the land in its portfolio, or of expressions of interest from potential buyers.
Fifteen plots of land, originally supposed to be sold separately, were instead sold as a single portfolio at a price which did not take into account potential use of the land in the future. This decision resulted in Welsh taxpayers missing out on tens of millions of pounds of funding.
The Committee learned that one of the organisations charged with offering expert advice to the Board, Lambert Smith Hampton Ltd, had previously acted on behalf of a director of the buyer of the land, South Wales Land Developments Ltd (SWLD), and signed an agreement to do so again one day after the sales went through.
The Committee concluded that the RIFW Board had been poorly served by its own expert advisors.
Angela Burns MS – Shadow Minister for Government Resilience and Efficiency – said: “The Fund was established to sell valuable packages of Welsh Government land, with the money used to support regeneration schemes. However, evidence has since emerged that shows that the sale of RIFW’s assets was undertaken at a loss of tens of millions of pounds. A loss which was borne ultimately by the Welsh Taxpayer and yet another example of the complete inability of this Labour Government to be fiscally prudent.
“Millions of pounds have been squandered, millions that could have been invested in our education and health systems or spent building Wales’ economy or supporting some of our more vulnerable citizens. It’s an absolute scandal and the real scandal is the Welsh Government can slide out of their responsibility for this debacle”
Included in the scandal are:
- Fifteen sites sold for £21 million; with the taxpayer missing out on staggering sums of money
- A site in Rhoose purchased from RIFW for less than £3m – sold on for almost £10.5m South Wales Land Developments Ltd. Taxpayers losing out
- An Abergele site purchased from RIFW for £100,000, without overage, and sold for £1.9million. Taxpayers losing out
- Land in Lisvane sold for £1.8million – worth £39million.
Welsh Conservatives also claim the Welsh Government has squandered £1 billion on other projects, including:
- £221m on uncompetitive Enterprise Zones
- £9.3m on flawed initial funding of the Circuit of Wales
- £97.9m on delays and overspend on the A465 Heads of the Valleys Road
- £157m on the M4 relief road inquiry
- Over £100m propping up Cardiff Airport
UK not ready for Brexit
A REPORT published last week by the UK’s National Audit Office (NAO) says that although government departments have made progress in recent months implementing the changes required to systems, infrastructure and resources to manage the border at the end of the post-EU Exit transition period, it is still likely that widespread disruption will occur from January 1, 2021.
In its fourth report assessing government’s preparations at the border, the NAO highlights that planning for 1 January 2021 has built on work done for previous EU Exit deadline. The report says COVID-19 has exacerbated delays in government’s preparations and significant risks remain, particularly in relation to implementing the Northern Ireland Protocol and trader readiness more generally.
Departments have made progress towards implementing the systems, infrastructure and resources required to operate the border in relation to Great Britain at “minimum operating capability” by January 1 and are reasonably confident most will be ready, but timetables are tight. The ability for traders to move goods under transit arrangements is a key element of the government’s plans but some elements will be challenging to deliver in their entirety. HMRC currently estimates that there will be around 6.3 million movements of goods under transit arrangements in the year following the end of the transition period. If all the planned arrangements are not ready, this could have an impact on the ease with which traders can import and export goods.
There is little time for ports and other third parties to integrate their systems and processes with new or changed government systems, and contingency plans may need to be invoked for some elements. In part as a result of the delays caused by COVID-19, there is limited time to test individual elements and resolve any emerging issues; ensure elements operate together; familiarise users with them in advance and little or no contingency time in the event of any delays.
Even if the Westminster government makes further progress with its preparations, there is still likely to be significant disruption at the border from January 1, as traders will be unprepared for new EU border controls which will require additional administration and checks. The government’s latest reasonable worst-case planning assumptions, from September 2020, are that 40% to 70% per cent of hauliers will not be ready for these new controls and up to 7,000 lorries may need to queue at the approach to the short Channel crossings,6 such as Dover to Calais.
The government’s plan for reducing the risk of disruption at the approach to the short Channel crossings is still developing, with various issues yet to be resolved. It intends to launch a new GOV.UK web service called ‘Check an HGV is ready to cross the border’ for hauliers to check and self-declare that they have the correct documentation for EU import controls before travelling and obtain permits to drive on prescribed roads in Kent. However, there is more to do on how ‘Check an HGV’ will be enforced and how it will work together with traffic management plans for Kent.
Government is preparing civil contingency plans, such as to ensure continuity of the supply of critical goods and medicines in the event of any disruption to supply chains. On October 13, the Department for Transport announced it had awarded contracts to provide additional freight capacity for over 3,000 lorries a week on routes avoiding the short Channel crossings. However, COVID-19 is making civil contingency plans more difficult to enact, with local authorities, industry and supply chains already under additional strain.
The UK Government will also need to implement the Northern Ireland Protocol from January 1. However, due to the scale and complexity of the changes, the lack of time and the impact of ongoing negotiations, there is a very high risk it may not be implemented in time.
The government has left itself little time to mobilise its new Trader Support Service (TSS), in which it has announced it is investing £200 million, to reduce the burden on traders moving goods to Northern Ireland and to help them prepare. It will be challenging to establish the TSS by 1 January 2021. Work needs to be done to identify NI traders and sign them up to use the service; recruit and train the staff required; develop software to enable traders to connect to HMRC’s systems; and deliver educational activities to traders. There is also ongoing uncertainty about the requirements for the movement of goods under the Protocol. Therefore, there is still a high risk that traders will not be ready.
The government is spending significant sums of money preparing the border for the end of the transition period and, in 2020 alone, announced funding of £1.41 billion to fund new infrastructure and systems, and wider support and investment. Despite this, there remains significant uncertainty about whether preparations will be complete in time, and the impact if they are not. Some of this uncertainty could have been avoided, and better preparations made, had the government addressed sooner issues such as the need for an increase in the number of customs agents to support traders.
The NAO says that government must continue to focus its efforts on resolving the many outstanding issues relating to the border and develop robust contingency plans if these cannot be addressed in time for the end of the transition period.
Gareth Davies, head of the NAO, said: “The January 1 deadline is unlike any previous EU Exit deadline: significant changes at the border will take place and government must be ready. “Disruption is likely and the government will need to respond quickly to minimise the impact, a situation made all the more challenging by the COVID-19 pandemic.”
Senedd praise for Llanelli Youth Voluntary Group.
Plaid Cymru’s Helen Mary Jones MS praised the work of Llanelli-based CYCA, Connecting Youth, Children and Adults in the Senedd.
The Mid and West MS took the opportunity of a 90 second statement in the Senedd to congratulate the organisation on 40 years of working in Carmarthenshire.
Plaid Cymru Shadow Economy, Transport and Tackling Poverty Minister Helen Mary Jones Mid and West MS said:
“It was my privilege last week to visit, with my colleague Adam Price, a wonderful Llanelli-based organisation, CYCA—formerly the Carmarthenshire Youth and Children’s Association, now Connecting Youth, Children and Adults.
“I have known of and supported CYCA’s work for almost 20 years, and it was really inspiring to see how they’ve gone from strength to strength supporting children, young people and families in these challenging times, and this year, they celebrate their fortieth birthday.
“It would be easier to list what CYCA doesn’t do in the field than what they do, such is the breadth of their work. They run nurseries and youth groups, education and training courses, they provide counselling and individual support, and support for families. We were particularly impressed with the stories of two young mothers who, through CYCA, had not only received support with the challenges of isolation and family life, but had also been able to get back into education; one starts her training as a midwife this week.
“And we were struck, too, by an innovative social prescribing scheme where GPs refer children and young people experiencing distress to CYCA. The team then work with the whole family, identifying support needs and providing whatever is needed—counselling, parenting support, support at school—and this support lasts as long as the children and family need it.
“It’s already proving very successful, with young people’s well-being greatly enhanced. One service user said to me many years ago, ‘The thing about CYCA is that they never give up on you’. And they don’t. CYCA never gives up on a child, a young person, a vulnerable adult or a family. We are lucky to have them in our town, our county and our community. Pen-blwydd hapus iawn, CYCA. I’m looking forward to seeing what you get up to in the next 40 years.”
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