EU rules to blow UK economy away

Published: February 2, 2008, 10:25 am

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2008/01/27/nbook127.xml
(The British Pound is currently trading for about 2 US dollars)

Christopher Booker's Notebook
By Christopher Booker
EU plans to see our economy blown away

It was appropriate that, just as our MPs were voting last week to hand over yet more of the power to run this country in the EU treaty, the EU itself should be unveiling easily the most ambitious example yet of how it uses the powers we have already given away. The proposals for "fighting climate change" announced on Wednesday by an array of EU commissioners make Stalin's Five-Year Plans look like a model of practical politics.

Few might guess, from the two-dimensional reporting of these plans in the media, just what a gamble with Europe's future we are undertaking - spending trillions of pounds for a highly dubious return, at a devastating cost to all our economies.

The targets Britain will be legally committed to reach within 12 years fall under three main headings. Firstly, that 15 per cent of our energy should come from renewable sources such as wind (currently 1 per cent). Secondly, that 10 per cent of our transport fuel should be biofuels. Thirdly, that we accept a more draconian version of the "emissions trading scheme" that is already adding up to 12 per cent to our electricity bills.

The most prominent proposal is that which will require Britain to build up to 20,000 more wind turbines, including the 7,000 offshore giants announced by the Government before Christmas. To build two turbines a day, nearly as high as the Eiffel Tower, is inconceivable. What is also never explained is their astronomic cost.

At £2 million per megawatt of "capacity" (according to the Carbon Trust), the bill for the Government's 33 gigawatts (Gw) would be £66 billion (and even that, as was admitted in a recent parliamentary answer, doesn't include an extra £10 billion needed to connect the turbines to the grid). But the actual output of these turbines, because of the wind's unreliability, would be barely a third of their capacity. The resulting 11Gw could be produced by just seven new "carbon-free" nuclear power stations, at a quarter of the cost.

The EU's plans for "renewables" do not include nuclear energy. Worse, they take no account of the back-up needed for when the wind is not blowing - which would require Britain to have 33Gw of capacity constantly available from conventional power stations.

The same drawbacks apply to the huge increase in onshore turbines, covering thousands of square miles of countryside. They are only made viable by the vast hidden subsidies that wind energy receives, through our electricity bills. These make power from turbines (including the cost of back-up) between two and three times more expensive than that from conventional sources.

This is crazy enough, but the EU's policy on biofuels is even more so. The costs - up to £50 billion by 2020 - would, as the EU's own scientific experts have just advised, "outweigh the benefits". To grow the crops needed to meet the target would require all the farmland the EU currently uses to grow food, at a time when world food prices are soaring. Even Friends of the Earth have called on the EU to abandon its obsession with biofuels. Yet the Commission presses on regardless.

As for the "emissions trading scheme" (a system originating with the Kyoto Protocol, whereby businesses can buy or sell "carbon credits", supposedly to allow market forces to ensure that targets are met), the Commission last week predicted that by 2020 this could be raising £38 billion a year from electricity users. Of this, £6.5 billion a year would be paid by the UK, equating to £260 for every household in the country.

The Commission itself predicts, in recently leaked documents, that this will have major consequences for the EU's economy, and that heavy industries, such as steel, aluminium, chemicals and cement, will have to raise their prices substantially, some by as much as 48 per cent. Yet when it was pointed out that this will put EU industries at a competitive disadvantage, the Commission's only response was to suggest tariffs on imports from countries such as China or America that are not signed up to Kyoto.

It looks like the most expensive economic suicide note in history. But just as alarming is how little this madness has been exposed to informed analysis. It seems, finally, that the price we pay for membership of the EU and the price of our obsession with global warming are about to become very painfully synonymous. And no one seems to have noticed.

(Locked)

Entry #56

Comments

truecritic - Feb 2, 2008, 7:24 pm

This maybe should have been posted in one of your other blog subjects but I didn't think of it until now.

You might think this is current, brand new, but it isn't.
A broadcaster for the Canadian Broadcasting
Company, Gordon Sinclair recorded only one record,
a spoken-word piece entitled "The Americans" (1974).
If you are old enough, you might remember it.
Whatever your age, you should appreciate it.
=======================================

The United States dollar took another pounding on German, French and British exchanges this morning, hitting the lowest point ever known in West Germany. It has declined there by 41% since 1971 and this Canadian thinks it is time to speak up for the Americans as the most generous and possibly the least-appreciated people in all the earth.

As long as sixty years ago, when I first started to read newspapers, I read of floods on the Yellow River and the Yangtse. Who rushed in with men and money to help? The Americans did.

They have helped control floods on the Nile, the Amazon, the Ganges and the Niger. Today, the rich bottom land of the Misssissippi is under water and no foreign land has sent a dollar to help. Germany, Japan and, to a lesser extent, Britain and Italy, were lifted out of the debris of war by the Americans who poured in billions of dollars and forgave other billions in debts. None of those countries is today paying even the interest on its remaining debts to the United States.

When the franc was in danger of collapsing in 1956, it was the Americans who propped it up and their reward was to be insulted and swindled on the streets of Paris. I was there. I saw it.

When distant cities are hit by earthquakes, it is the United States that hurries into help... Managua Nicaragua is one of the most recent examples. So far this spring, 59 American communities have been flattened by tornadoes. Nobody has helped.

The Marshall Plan .. the Truman Policy .. all pumped billions upon billions of dollars into discouraged countries. Now, newspapers in those countries are writing about the decadent war-mongering Americans.

I'd like to see one of those countries that is gloating over the erosion of the United States dollar build its own airplanes.

Come on... let's hear it! Does any other country in the world have a plane to equal the Boeing Jumbo Jet, the Lockheed Tristar or the Douglas 107? If so, why don't they fly them? Why do all international lines except Russia fly American planes? Why does no other land on earth even consider putting a man or women on the moon?

You talk about Japanese technocracy and you get radios. You talk about German technocracy and you get automobiles. You talk about American technocracy and you find men on the moon, not once, but several times ... and safely home again. You talk about scandals and the Americans put theirs right in the store window for everyone to look at. Even the draft dodgers are not pursued and hounded. They are here on our streets, most of them ... unless they are breaking Canadian laws .. are getting American dollars from Ma and Pa at home to spend here.

When the Americans get out of this bind ... as they will... who could blame them if they said 'the hell with the rest of the world'. Let someone else buy the Israel bonds, Let someone else build or repair foreign dams or design foreign buildings that won't shake apart in earthquakes.

When the railways of France, Germany and India were breaking down through age, it was the Americans who rebuilt them. When the Pennsylvania Railroad and the New York Central went broke, nobody loaned them an old caboose. Both are still broke. I can name to you 5,000 times when the Americans raced to the help of other people in trouble.

Can you name me even one time when someone else raced to the Americans in trouble? I don't think there was outside help even during the San Francisco earthquake.

Our neighbours have faced it alone and I am one Canadian who is damned tired of hearing them kicked around. They will come out of this thing with their flag high. And when they do, they are entitled to thumb their nose at the lands that are gloating over their present troubles.

I hope Canada is not one of these. But there are many smug, self-righteous Canadians. And finally, the American Red Cross was told at its 48th Annual meeting in New Orleans this morning that it was broke.

This year's disasters .. with the year less than half-overâ€¦ has taken it all and nobody...but nobody... has helped.

time*treat - Feb 3, 2008, 1:52 am

I always smile when I hear (or read) that. As Archie Bunker would have said, "Those were the days." :-)

truecritic - Feb 3, 2008, 2:14 am

<actually brought tears of pride>
:)

EU rules to blow UK economy away

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