Feeds

Osborne tosses £3bn gift to the green elite

We're all in it together. But some are more together than others ...

Intelligent flash storage arrays

Something interesting is happening in politics at a quite seismic level, and as usual, the professionals haven't noticed. Let's start with the details.

Last week, Chancellor George Osborne announced a new body that would make loans and issue debt. In a harkback to the 1970s, poorly performing and deeply unprofitable businesses will be the beneficiaries – and investors in them will be rewarded for their poor judgement. So much for moral hazard.

The Chancellor even found an unexpected £775m from the Government's sale of the HS1 rail link to kickstart the venture. £3bn has been pledged: £2bn from the sale of publically-owned assets, and £1bn from taxes. This is a considerable sum that could alternatively be used to pay off the government borrowing, or pay for public services.

Osborne also announced measures to increase the cost of electricity for consumers and business. This has been described as a "suicide note" for British manufacturing. In short, Osborne's measures benefit a small elite at the expense of the many. There are principled reasons to object to these measures across the traditional Left-Right axis. You may wonder why you haven't heard these, particularly, when a small elite benefits from them at a time when the country is being asked to make sacrifices. The phrase "we're all in it together" takes on quite a hollow, even ironic ring.

The body bailing out the basket-cases is a "Green Investment Bank", and the remit was written largely by a group of bankers themselves, called the Green Investment Bank Commission. Led by Bob Wigley, formerly head of Merrill Lynch's European investment side, the Commission included executives of Goldman Sachs, Citibank, and management consultancies Logica and the Oliver Wyman Group. The Commission reported last June, and saw an ambitious role for the new quango:

  • Unlocking project finance through equity co-investment, first loss debt and insurance products for low carbon technologies and infrastructure.
  • Creating green bonds to access the very large pools of capital held by institutional investors. Such products would fit with the long-term investment horizons of pension funds and life insurance companies and would provide the scale of capital needed to fund the low carbon transformation.
  • Selling green ISAs, which would be an important and visible way for retail investors to make a contribution to the funding of green infrastructure.
  • And, in light of the recent National Audit Office report entitled "Government funding for developing renewable energy technologies", the GIB should use the potential rationalisation of quangos and their funds to radically improve Government support for low carbon innovation and commercialisation.

Osborne said he wanted to send "a clear, long term signal to energy investors".

Intelligent flash storage arrays

More from The Register

next story
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
BT said to have pulled patent-infringing boxes from DSL network
Take your license demand and stick it in your ASSIA
Right to be forgotten should apply to Google.com too: EU
And hey - no need to tell the website you've de-listed. That'll make it easier ...
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
prev story

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.