Green Uneconomics

FT.com is reporting (sorry no link due FT constraints) that one of the centrepiece announcements in Wednesday’s Budget will be a new £2bn green technology fund. It is to be paid for with £1bn coming from future sales of government assets such as the Dartford Crossing and the Tote. The other £1bn will be sought from pension funds and other private sector vehicles. As Ernst & Young have suggested that the energy sector needed £165bn of new investment to prevent shortages and the cost of high-speed rail will be at least £30bn, this £2bn will be but a drop in the ocean. 

Note the way the Dartford Crossing and the Tote are considered as 'government' assets, especially when 'government' does not actually possess anything as 'government' is only the guardian of what is the nations assets - mind you, that has not, previously, stopped this lot playing fast and loose with what is not theirs!

The report goes on to state that the government is not prepared to put any existing taxpayers’ funds into the new venture, which is designed to buy stakes in “green” projects such as wind farms and high-speed rail. On the basis that the government doesn't have any 'spare' taxpayers' funds at the moment, we will believe that 'not prepared' bit when the taxpayer doesn't get shafted again!