Gordon Brown has finally admitted it. He has not ruled out nationalising the Northern Rock. When you walk down a path putting one foot in front of another you should know where the path leads. When he and his chum Alistair Darling decided to rescue the bank, rather than the money of depositors of the bank, he started on the road that inevitably leads to nationalisation, whether he admits it or not.
The bank is as good as nationalised now. Lots of people and institutions would like to get their hands on (sorry, buy) some of the bank’s good assets, especially if they are going for a song. No-one wants to underwrite the bank’s bad assets at any price, except Mr Darling and Mr Brown. We taxpayers have now pumped £57 billion into the bank, (£57,000,000,000) by way of guarantees and real cash and the only benefit has been to help confidence in the banking system, (although that is debatable), save a few jobs in the North East, and protect Nortehrn Rock shareholders and speculators. He could have done all of that spending a lot less money by simply underwriting the ordinary depositors’ money and letting the rest take their chances.
If Mr Darling has a spare £57 billion pounds it would come in mighty handy in restructuring our country’s energy system so that we used less fossil fuel and had a great deal more microgeneration. We could have also cleaned up the coal burning power stations with smoke washing facilities, sequestrated carbon, insulated every home to high standards, and still had plenty of change.
We could have also taken a few million and restructured the Low Carbon Building Programme. Under it today no one is bothering to apply for the £400 grant that you can get towards thermal solar panels because the grant is pitched too low and there is a rather tortuous set of conditions you have to adhere to before you get the money; none of these conditions relate in any way to solar water heating.
You can only get the grant if your home is “holistic” whatever that means.
The money assigned for helping householders with all microgeneration technologies for the three years ended June 2008 was only £18.7 million – less than one third of one percent of the money used to bail out the Northern Rock. Expressed as a figure it is less than 0.33% of £57,000,000,000. It is interesting to remember that the grants for microgeneration were conceived by Mr Darling when he was at the Department of Trade and Industry under a scheme called the Low Carbon Buildings Programme. All the failings of this scheme became well known before Mr Darling was promoted to Chancellor of the Exchequer, but despite my efforts and those of many others in the microgeneration industry, Mr Darling would not change the defects, denying, through his junior Minister, Lord Truscott (who?) that any defects existed.
Mr Darling clearly has a talent for this kind of mess, as he showed with the Low Carbon Building Programme and now that he has been promoted he has made another mess on a much grander scale.
While all the money used for the Northern Rock is being committed and more will no doubt have to be spent, so far less than a third of the microgeneration grants have been spent – a paltry £5.3 million. If the present rate of take up continues when the scheme ends in seven months time the government will have about £12 million spare unspent microgeneration money, which they could inject into the Northern Rock. That should be of immense comfort to the Bank’s shareholders and commercial depositors, but cold comfort to the planet.
Filed under: Alistair Darling, gordon brown, grants, microgeneration, Northern Rock, solar energy, solar panels | Tagged: Alistair Darling, gordon brown, Lord Truscott, low carbon building programme, microgeneration, Northern Rock | Leave a comment »