Tag Archives: Keir Starmer

Britain, Economic, Energy, Environment, Government, Politics, Society

Great British Energy risks decimating energy security

UK ENERGY POLICY

KEIR Starmer’s aspirations for a carbon-free and energy-secure nation fulfilled at a stroke through the creation of his new quango, Great British Energy (GBE), is at odds with the reality of the situation.

The UK would, of course, welcome a green and pleasant land with cleaner air, lower carbon emissions, cheaper fuel bills, and a reduced dependence on Vladimir Putin and his gas pipelines that run from Russia to the West.

But the truth is the creation of GBE will deliver few, if any, of the bold pledges that Sir Keir Starmer and his Energy Secretary, Ed Miliband, are making.

In the King’s Speech, Sir Keir’s new government confirmed that GBE, the state-owned energy company, will develop, own and operate energy projects such as wind farms, using public money to help spur further private sector investment.

But the £8.3billion of money promised by the Exchequer for Britain’s energy transformation over the term of the current parliament will be a mere drop in the ocean.

In spite of the overblown language, this is a fraction of the sums of money already devoted to “climate reduction” goals by our UK-listed oil firms Shell and BP, as well as domestically owned power suppliers Centrica and Scottish & Southern Electricity (SSE).

Some argue it is reassuring that GBE will be headed up by Juergen Maier, the former boss of German multinational Siemens’s British arm, who might bring some much-needed private-sector experience to the job.

What is less reassuring, however, is the disastrous financial performance of Siemens Energy. It ran up losses of £3.7billion in 2023 alone. Combined with the desperate track record of past Labour governments to command and control the economy through grandiose quangos such as the National Enterprise Board of the 1970s, it looks almost inevitable that GBE will become yet another vast black hole, drawing vast public cash at the expense of other strained public services.

Most critically, by blocking future North Sea oil licences, as Starmer has done, and holding fire on the prospects for new nuclear production, the nation’s energy security is being sacrificed in order to pursue unproven green energy “solutions”.

In doing so, the UK is exposed to the danger of factories being closed, the elderly and poor freezing in their homes, and the lights going out when the wind fails to blow and the sun doesn’t shine.

It is also critical that the UK can maintain a minimum level of electricity production at all times – especially if the Government pursues a mad rush towards electric vehicles which, in many cases, are proving notoriously unreliable.

That is why Centrica-owned British Gas is investing heavily in renewing the nation’s gas storage capacity at Rough off the East Yorkshire coast and exploring other potential sites in Wales.

Not to mention that Starmer and Miliband appear willing to trash 100,000 North Sea oil-related jobs, sabotage Aberdeen, and lose £30billion of new investment in fossil fuels, and the engineering services which go with them, to drive the “green revolution”. Labour believes that by signing an agreement with the Crown Estate – which has command over most of the nation’s coastal waters – it can generate £60billion of new investment. The link to the monarchy alone could potentially attract some foreign investors on the grounds of offering a kind of royal imprimatur. But we shouldn’t get carried away by Labour’s hoopla.

The Crown Estate has much more skill and expertise on redeveloping real estate, such as Dumfries House in Scotland, than it does in energy projects. Despite its prestigious reputation, the Crown Estate’s new agreement with Labour, is at the hands of hard economic facts. The only thing that will attract investors is a competitive entry price. If the price at which energy generated at the offshore windfarms can be sold is set too low to make the projects viable, it will deter bidders.

We learnt this the hard way in a crucial auction last year, when not a single company bid to run a new offshore wind farm. That was because the Tory government had set the energy price too low. Even more seriously, a major proposed investment off the Norfolk coast was temporarily put on hold.

The same thing happened in the US last year when Ørsted cancelled £3.3billion of wind projects because it could not make the financial returns.

Earlier this year, BP also pulled out of its involvement in New York state wind farms – at a heavy cost to investors – because of the difficulty of getting decent returns.

The ultimate goal in all of these wind farm projects may have been lower prices for consumers. The reality is that only by offering a higher energy price to investors will they come forward – and the projects be built. It’s an uncomfortable truth for Labour, who want to be seen to be providing the cheapest energy possible to its citizens.

They have been repeatedly questioned about when, or even if, their “Green New Deal” would deliver lower prices for consumers, but Labour have been unable to answer. So much for cheaper bills and the election manifesto pledge that consumers would be £300 a year better off.

A secondary aim of GBE is to boost our manufacturing sector, creating new skills and employment opportunities to replace those in fossil fuels.

Certainly, this is a perfectly noble aim. But in Britain, we have already sold ourselves out. Most of the solar panels being installed on the roofs of homes and factories across the UK are being built in China at a fraction of the cost they can be made in the UK.

One only has to look at how Beijing is dominating the market for electric cars – and the 50 per cent tariffs imposed by the US and Europe to slow imports – to understand how difficult it is going to be to compete with Asian production.

There is also evidence that Chinese suppliers of wind farm equipment are using cheap Uyghur labour to manufacture wind turbines. It will be all but impossible for UK manufacturers to compete (currently responsible for less than 10 per cent of wind farm components).

There is one area of green technology where Britian does have a competitive quality and engineering advantage. Rolls-Royce, with the assistance of government funding, leads the world in the development of “small modular reactors”. These are mini, simple-to-construct nuclear reactors based on the turbines that power nuclear-powered submarines.

Rolls-Royce believes it is capable of capturing a £250billion global market if it receives the go-ahead from Whitehall for UK production. The Czech Republic has already expressed an interest in buying them.

Tens of thousands of real jobs – not the Potemkin quango roles envisioned by the UK’s new Government – are there to be created.

We can only hope for the success of Great British Energy and the zero-carbon nirvana envisaged by our mission-driven Government.

But there are huge fears in creating a taxpayer-funded white elephant which will decimate our energy security.

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Britain, Economic, Government, Politics, Society

Sir Keir Starmer and the UK Labour Party

BRITAIN

FOR the first time in 14 years, and following an accurate exit poll, we have a Labour government. As protocol states, Sir Keir Starmer travelled to Buckingham Palace for an audience with King Charles III. In that historic setting, the Monarch invited Sir Keir to formally become the 58th Prime Minister of the United Kingdom and to form a Government.

The people of the UK have spoken, and Labour has convincingly won the election by a healthy majority.

There are many others, of course, who will be disappointed. But it is important to remember that our democracy can only function if the losers of a free and fair election graciously accept the result. As they have.

There is little doubt Sir Keir has turned his party around since becoming its leader.

Previously, it was slipping towards irrelevance under Jeremy Corbyn. Sir Keir set about expunging its Marxist policies and MPs, and has tackled the scourge of anti-Semitism with some success.

Transforming Labour into the party it is today has surely tested his mettle. Yet it is now that the hard work really needs to begin.

However, other than saying he puts “country first, party second” and wants “change”, Sir Keir has left voters with little clue about what he intends to do in power or how he would tackle the country’s many problems.

Wealth creation is his priority, but we know he will saddle business with a slew of new rules and obligations, while driving rich foreigners overseas by abolishing non-dom tax status.

Relying, as he does, on faster economic growth to pay for better public services is welcome. But what will fuel such a miraculous turnaround?

Of course, creating a stable political environment can help. Trade union reforms put forward by Angela Raynor, however, and a plan by Labour to give workers more rights, would likely inhibit that progress.

As a result, the party will inevitably need to raise money to fund its “agenda for change”.

Since it has pledged not to borrow more and will not slash public spending, the answer is likely to be taxing businesses, pensions, property, and inheritance. The politics of envy may soon surface.

Despite Sir Keir’s insistence that Labour can be trusted with defence, he has refused to commit to boost our dangerously depleted military to 2.5% of GDP. And that raises questions of whether the UK will be in a position to continue helping Ukraine in its war with Russia.

On soaring levels of immigration, which is putting intolerable strain on public services and social cohesion, and Sir Keir saying he will scrap the Rwanda scheme for illegal immigrants, Labour has offered no fresh thinking.

Other questions are multiplying. Given the need for energy security in a volatile world, is Sir Keir really going to ban new drilling licences for North Sea oil and gas? And what of Labour’s dogmatic target to decarbonise electricity by 2030? Quite clearly, that would risk the lights going out.

And will Sir Keir defend the ancient freedoms of the press? That’s essential in holding the powerful to account in a free and democratic society like the UK.

The millions of voters that have given him the landslide victory, Sir Keir must use it for the good of the whole nation – not just Left-wing interest groups.

For the Conservative Party, a disaster at the ballot box never seen before in its history, must lead to a period of reflection.

Over the years, the Conservatives have boasted of being a broad church, encompassing a wide range of views. Today, the congregation seems to have no unifying creed at all. This schism will continue with members moving to the far-right Reform UK Party led by Nigel Farage unless solutions can be found in stabilising traditional Conservative values and principles within the party.

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Britain, Economic, Government, Politics, Society

Starmerspeak and the dangers that lurk

THE UK LABOUR PARTY

POLITICAL language, observed George Orwell, “is designed to make lies sound truthful …and to give an appearance of solidity to pure wind.”

Euphemism, ambiguity, and “sheer cloudy vagueness” are deployed by politicians, he said, to conceal their true intentions and lull the people into a false sense of security.

Orwell wrote those words almost eight decades ago, yet they are as true today as they were then. Indeed, in Sir Keir Starmer they may have reached their apotheosis.

Labour party’s manifesto – in which Sir Keir’s photo appears 33 times – is a veritable typhoon of pure wind.

He presents himself as a man of action, saying “the time for reviews is over” – then proceeds to announce some 16 new reviews into everything from health to defence.

Wealth creation is ostensibly a key priority, yet he would saddle business with a slew of new rules and obligations, while simultaneously driving wealthy foreigners away by abolishing non-dom tax status.

Sir Keir says he puts “country before party,” yet throws red meat to Labour activists with spiteful measures such as stripping elderly soldiers who served in Ulster up to 50 years ago of their legal immunity from prosecution, and, of course, the tax raid on independent schools.

Labour’s “green revolution” is also a sham, Starmer falsely claiming that renewables will be capable of fulfilling our energy needs by 2030. That’s just six years away. Even if he covered half the country in wind turbines, we would still need oil, gas, and nuclear to keep the lights on.

Yet the most glaring falsehood in this tawdry document is that Labour’s “agenda for change” can be funded with just a few minor tax rises.

An extra 13,000 police offices, 8,500 mental health staff, 6,500 teachers, 1.5million homes, nationalising rail, a new state energy company – where’s the cash coming from?

Estimates of the size of Labour’s fiscal black hole vary, but most analysts believe it to be in the tens of billions. Sir Keir claims the shortfall can be covered by economic growth. The reality is that taxes and borrowing are certain to rise.

He has ruled out increases in income and corporation tax, national insurance, and VAT, but there are plenty of other options, such as raiding pension funds (again), wealth, fuel, and property taxes, extending capital gains tax, and much more.

Instead of being told what’s coming down the line, voters are being shamelessly fobbed off. In his novel 1984, Orwell gave deceitful political language a name – Newspeak. Starmerspeak is its modern-day manifestation.

Despite Sir Keir’s unwillingness to give straight answers, he’s on course to win with a “super-majority” – especially if traditional Conservatives are foolish enough to switch their vote to Reform UK.

Their anger and revolt are entirely understandable, but Reform is a sideshow. They must weigh the desire to punish their own party into oblivion against the consequences of propelling a self-professed socialist into government with virtually no checks and balances.

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