Is Osborne's "dash for gas" scuppering Hull's green economy?

Simon Bullock

15 October 2012

[This blog was written by my colleague Simon Bowens, I'm posting it because he's on a train to Hull...]

"Abandon hope all ye who enter here", wrote Dante in his poem the Divine Comedy, inscribing it above the gates of Hell.

But, in Hull, hope has been growing following a 2011 memorandum of understanding between Siemens and ABP Ports to develop a world-class manufacturing facility for the offshore wind industry.

Planning permission has been approved to build the facility which will ensure that, finally, offshore wind sites (which could produce 40% of our power demand by 2030) will be built with components made in Britain creating jobs and skills for a potential world market.

This has brought a real fillip to the local economy in Hull, a city which has suffered significantly worse during the recession than most places in the UK. It is officially the hardest place in the UK to find a job with 45 jobseekers for every vacancy. The Centre for Cities reported that Hull's numbers of jobseekers was growing at a faster pace than any other UK city.

So, Hull needs a boost and offshore wind manufacturing promises to provide this boost. If the joint venture goes ahead over 1300 jobs will directly be created with many thousands more in a local supply chain. It's no wonder the people of Hull are getting excited about the future.

The coalition Government not only promised to be the "greenest ever" but also to rebalance the UK economy away from London and the South East towards high value manufacturing and building a low carbon future. Hull Green Port would be a prime example of this working.

So news last week that Siemens were getting cold feet and delaying their commitment in the light of Government dithering over the future of renewables is potentially devastating to those of us who care about the prospects for an economically resilient Hull. 

Last week's letter from Siemens and other energy firms spelled out the consequences of Conservative resistance to a decarbonisation target in this Autumn's Energy Bill. I quote:

"a binding 2030 target for power sector decarbonisation would help to reduce the political risk currently associated with long-term UK industrial investment"

The Government quad of Cameron, Clegg, Osborne and Alexander are expected to meet this week to decide on the decarbonisation target.

If they refuse to include it and allow the Chancellor to continue his reckless 'dash for gas' with tax breaks for shale gas then we can forget about achieving carbon targets, forget about energy security and forget about creating the jobs and prospects that Hull (and other former industrial towns and cities around our coast) so desperately needs.

George Osborne seems set on taking the green economy to hell in a handcart. Friends of the Earth's Clean British Energy campaign aims to prevent him from doing so and, instead, take jobs and export orders to Hull by the truckload.