Enough is enough: this dash for gas has gone too far

Osborne's dogmatism will keep Britain hooked on expensive foreign imports and do nothing to tackle high fuel bills.

"Enough is enough", energy minister John Hayes proclaimed last week as he propelled himself into the headlines and a full-blown war of words over the future of British wind power. But unhelpful as his intervention was, his very public tussle with the Energy Secretary, Ed Davey, was a mere sideshow compared to murky dealings over energy policy going on behind closed doors in Whitehall, with the ministerial "quad" – David Cameron, Nick Clegg, George Osborne and Danny Alexander – expected to meet again soon.

This anti-wind rhetoric obscures another government agenda: a new dash for gas that will keep Britain hooked on expensive foreign imports and do nothing to tackle high fuel bills. This week, Friends of the Earth revealed that the coalition is preparing to write a blank cheque for the gas industry to build new gas plants. Outrageously, it’s exempting back-up gas power stations from the Levy Control Framework, a set of Treasury rules which restrict public spending on energy. The result is likely to be a huge rash of investment in gas, funded by taxpayers, which could see more gas power stations being built than are needed.

Friends of the Earth accepts that we need some gas as a back up while the UK makes the shift from fossil fuels to renewable energy, and this includes a small amount of unabated gas – without Carbon Capture and Storage – to be maintained as back-up capacity. But pledging unlimited sums of public cash for this end is madness. In effect, you and I could end up paying for gas power plants that, if run at full whack, risk busting our targets to tackle climate change. In fact, we could end up paying for them not to run at all, when the penny finally drops that too many have been consented, and all we’re left with is stranded assets.

So why are they doing it? The Treasury has pressed hard for these gas power stations to be exempt from the rules, and the Department of Energy and Climate Change (DECC) appears to have conceded without a fight. Nervous ministers may be listening to scare-mongering about renewable energy making the lights go out. But I suspect it has a lot more to do with the Chancellor, hell-bent on moving the government away from its green commitments at any cost to the economy, against the wishes of senior politicians and business including the CBI.

Let’s not forget the long string of free lunches that Osborne has handed to the gas industry over the past year. First came the announcement from the Energy Secretary in March that made green groups despair: "we can’t take our foot off the gas for some time yet". Davey was allowing new gas plants to pump out carbon at 450gCO2/kWh until 2045, which, given most modern gas plants emit just under 400g, was effectively a free permit to pollute for the next three decades.

I strongly suspect the decision was made by a novice minister under pressure from Osborne, without enough briefing from civil servants. It was accompanied by a pledge to develop a Gas Strategy, the rationale for which officials have privately conceded to be ‘because the gas industry felt left out’.

Then, in July, came news of a leaked letter to from the Chancellor to Davey, demanding the government issue "a statement which gives a clear, strong signal that we regard unabated gas as able to play a core part of our electricity generation to at least 2030". Cue a dutifully trotted out press release from DECC, the wording of which appeared to be practically lifted from Osborne’s letter. A few days later, the Chancellor’s father-in-law Lord Howell was exposed as an influential oil and gas lobbyist. The pieces of the jigsaw were slowly falling into place.

September saw more tax breaks for North Sea oil and gas, and an announcement that Osborne would consult over a new tax regime for shale. Then came Davey’s assurances to the gas industry in October that he expects 20GW of new gas to be built between now and 2030 – completely at odds with the Committee on Climate Change, which sees just 6.5GW of new gas by the same date.

It’s not hard to see who’s pulling the Energy Secretary’s strings. Taken together, these concessions add up to a covert strategy of support for gas by a Chancellor who appears in hock to the fossil fuel industry, whose economic calculations are frighteningly short-termist, and who sees green policies as a burden instead of an opportunity for growth.

The Treasury is lobbying hard to restrict future investment in clean energy through the upcoming Energy Bill, expected in Parliament this month. This is a once-in-a-generation opportunity to change the way we source our power for the next 20 years – and our booming green economy is at stake, which now accounts for almost a million jobs.

Enough is enough. It’s time for Cameron to stop the dash for gas in its tracks and urgently lay down a clear pathway for clean British energy.

Guy Shrubsole is energy campaigner at Friends of the Earth

Chancellor George Osborne is pushing for the government to restrict future investment in clean energy. Photograph: Getty Images.

Guy Shrubsole is energy campaigner at Friends of the Earth.

Photo: Getty
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Shadow Scottish secretary Lesley Laird: “Another week would have won us more seats”

The Labour MP for Kirkcaldy and Cowdenbeath on the shadow cabinet – and campaigning with Gordon Brown in his old constituency.

On the night of 8 June 2017, Lesley Laird, a councillor from Fife and the Labour candidate for Kirkcaldy and Cowdenbeath, received a series of texts from another activist about the count. Then he told her: “You’d better get here quick.”

It was wise advice. Not only did Laird oust the Scottish National Party incumbent, but six days later she was in the shadow cabinet, as shadow Scottish secretary. 

“It is not just about what I’d like to do,” Laird says of her newfound clout when I meet her in Portcullis House, Westminster. “We have got a team of great people down here and it is really important we make use of all the talent.

“Clearly my role will be facing David Mundell across the dispatch box but it is also to be an alternative voice for Scotland.”

At the start of the general election campaign, the chatter was whether Ian Murray, Labour’s sole surviving MP from 2015, would keep his seat. In the end, though, Labour shocked its own activists by winning seven seats in Scotland (Murray kept his seat but did not return to the shadow cabinet, which he quit in June 2016.)

A self-described optimist, Laird is calm, and speaks with a slight smile.

She was born in Greenock, a town on the west coast, in November 1958. Her father was a full-time trade union official, and her childhood was infused with political activity.

“I used to go to May Day parades,” she remembers. “I graduated to leafleting and door knocking, and helping out in the local Labour party office.”

At around the age of seven, she went on a trip to London, and was photographed outside No 10 Downing Street “in the days when you could get your picture outside the front door”.

Then life took over. Laird married and moved away. Her husband was made redundant. She found work in the personnel departments of start-ups that were springing up in Scotland during the 1980s, collectively termed “Silicon Glen”. The work was unstable, with frequent redundancies and new jobs opening, as one business went bust and another one began. 

Laird herself was made redundant three times. With her union background, she realised workers were getting a bad deal, and on one occasion led a campaign for a cash settlement. “We basically played hardball,” she says.

Today, she believes a jobs market which includes zero-hours contracts is “fundamentally flawed”. She bemoans the disappearance of the manufacturing sector: “My son is 21 and I can see how limited it is for young people.”

After semiconductors, Laird’s next industry was financial services, where she rose to become the senior manager for talent for RBS. It was then that Labour came knocking again. “I got fed up moaning about politics and I decided to do something about it,” she says.

She applied for Labour’s national talent programme, and in 2012 stood and won a seat on Fife Council. By 2014, she was deputy leader. In 2016, she made a bid to be an MSP – in a leaked email at the time she urged Labour to prioritise “rebuilding our credibility”. 

This time round, because of the local elections, Laird had already been campaigning since January – and her selection as a candidate meant an extended slog. Help was at hand, however, in the shape of Gordon Brown, who stood down as the MP for Kirkcaldy and Cowdenbeath in 2015.

“If you ever go out with Gordon, the doors open and people take him into their living room,” says Laird. Despite the former prime minister’s dour stereotype, he is a figure of affection in his old constituency. “People are just in awe. They take his picture in the house.”

She believes the mood changed during the campaign: “I do genuinely believe if the election had run another week we would have had more seats."

So what worked for Labour this time? Laird believes former Labour supporters who voted SNP in 2015 have come back “because they felt the policies articulated in the manifesto resonated with Labour’s core values”. What about the Corbyn youth surge? “It comes back to the positivity of the message.”

And what about her own values? Laird’s father died just before Christmas, aged 91, but she believes he would have been proud to see her as a Labour MP. “He and I are probably very similar politically,” she says.

“My dad was also a great pragmatist, although he was definitely on the left. He was a pragmatist first and foremost.” The same could be said of his daughter, the former RBS manager now sitting in Jeremy Corbyn's shadow cabinet.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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