The Shocking Truth Behind Britain’s Offshore Renewable Energy Sector.
The Chancellor of the Exchequer said in his 2023 Spring Statement yesterday:
“...an enterprise economy needs low taxes. But it also needs cheap and reliable energy…That means investing in domestic sources of energy that fall outside Putin or any autocrat’s control. We are world leaders in renewable energy…We have increased the proportion of electricity generated from renewables from under 10% to nearly 40%.” (Parliament: 15/03/23)
Three cheers for Britain! World leaders in renewable energy, or so Jeremy Hunt, the smooth-tongued doctor of spin, would have us believe. It is true that British waters hold the largest share of offshore wind capacity in the world, But - and with Tory government pronouncements there is always a but - over 80% of “our” offshore capacity is owned by companies located overseas. To make matters worse:
“The businesses that make up the supply chain — the makers of blades, foundations and high-voltage cables — often come from abroad, too. Of the four companies that accounted for 55% of new orders globally of turbine manufacturing in 2019, not a single one was British.” (Carla Subirana, economist, Yahoo News: 03/03/23)
Not only are these foreign companies coining the profits from their UK operations but we, the British taxpayer, are subsiding them. In 2022, the UK government gave £2.56 bn to foreign state-owned offshore wind generators, which
“…effectively means that UK taxpayers are paying for hospitals in Denmark or Norway.” (Carla Subirana)
Ok. We know the Tory Party is anti-public ownership. Private sector good – public sector bad is the Tory mantra. They believe private enterprise is more efficient and therefore more cost effective than the public sector. This may or may not be true, but if it is true then why don’t they follow their own capitalist economic philosophy?
I may be naive, but if the UK taxpayer is subsidising foreign companies, (or even home-grown companies for that matter) should we not have a shareholder stake in those companies taking our money? The Tory party prides itself on having a better understanding of business than Labour, but is it really good economics to give away money without some kind of return?
Isn’t the whole capitalist system built on the premise that if you risk loosing your money by investing in a business venture, then you are entitled to a return on your investment if that venture succeeds? Where, Mr Hunt, is the British taxpayers return for their investment in offshore renewable energy? And although our renewable energy sector may be beyond Putin’s control, Mr Hunt, it certainly isn’t within yours. The British public deserve better.
