Wind farm nimbyism means 10,000 jobs just went to Ireland

We're saving money, but Ireland is getting the work.

Yesterday the UK and Irish governments signed an agreement that could see British businesses and consumers funding wind farm developments in Ireland that will export electricity to the UK. As a way of mollifying wind farm critics and keeping costs down, the UK government’s approach is understandable. But the majority of Brits who favour wind power may question why they are paying for jobs in Ireland when unemployment is still at 7.7 per cent at home.

The scale of wind farm development in Ireland that may result from yesterday’s agreement is huge. One project alone, called Greenwire, could see 700 wind turbines with 3GW of generating capacity being built. The UK has a target to generate 30 per cent of its electricity from renewables by 2020 so this project could contribute a tenth towards that goal.

To enable projects like Greenwire to go ahead the UK Government will need to provide financial incentives to developers. If they use the same approach as has been proposed for developments within the UK, the government will guarantee developers a set price for the energy they produce. The money required to meet this guarantee will come from increases to the energy bills of consumers and businesses.

In one sense this is a sensible move. Despite onshore wind power being the cheapest renewable technology, there is a vigorous campaign against expanding its use in the UK. If the growth of onshore wind is restricted and options for producing renewable electricity are limited to the UK’s borders, more expensive technologies, particularly offshore wind, will be needed as an alternative. The Greenwire developers claim their project will actually save consumers and businesses £7 billion compared with a scenario in which an equivalent amount of offshore wind was built.

So far, so good. But there is a catch: by outsourcing the generation of cheap onshore wind power to Ireland, Britain will miss the opportunity to create good quality jobs, develop skills and secure a comparative advantage in a burgeoning sector with huge global potential. Greenwire alone will create 10,000 new jobs in Ireland during its construction phase and 3,000 jobs in the longer term, so the developers claim. These are jobs that could be going to Brits.

Greenwire is a concrete example of how anti-wind farm campaigns could cost the UK jobs and growth.

Campaigners tend to be concerned about the aesthetic impact of wind turbines on the countryside and this must be taken into account. Less valid, however, are claims often made about the effectiveness of wind power technology. The Institute for Public Policy Research has shown that wind power is an effective way to reduce carbon emissions. Furthermore, challenges posed by the variable nature of how much electricity wind farms produce, because the wind doesn’t always blow, are often overstated. This variability can be easily accommodated by the grid, posing no threat of power interruptions, at the levels of deployment expected for the technology by 2020.

The scale of opposition to onshore wind often seems larger than it is. This is because campaigners concerns have been amplified by certain segments of the press and championed by several government ministers including the Energy Minister, John Hayes. In fact most of the UK public consistently supports expanding the use of the technology.

These supporters should get angry if their money is used to support wind farms in Ireland instead of the UK, because major job and economic opportunities will be lost.

Editor's note: The headline of this piece was changed on 25 January at 15:45

Wind farms. Photograph: Getty Images

Reg Platt is a Research Fellow at IPPR. He tweets as @regplatt.

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.