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£100m energy fund left unspent

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Published Date: 24 February 2008
By Eddie Barnes
Political Editor
A £100m pot set aside to boost Scotland's renewables industry is languishing in Government coffers because of a dispute over funding.
Last year, SNP ministers vowed to ensure the cash was handed over to the Scottish Government to help increase wind and wave power. But the money is still being held by energy regulator Ofgem, denying the renewable industry massive investment.
Labour MPs last night hit out at SNP ministers, claiming they had reneged on their vow to secure the funding. But the SNP Government blamed Treasury rules, which stipulate that for every pound of the fund it takes, it has to surrender another pound from the budget elsewhere.

As a result, the Government has not made an approach to secure the cash.

The money is known as the fossil fuel levy and is paid by suppliers of electricity from non-renewable energy sources. The cash is supposed to then be used to promote renewable power.

But parliamentary questions have revealed that the money is not being used and is simply being banked. The cash set aside for Scotland has swollen from just £18m in 2005-06 to £98m now.

In February last year, Alex Salmond said it was "extraordinary" the money had not been handed over to Scotland. Last September, after taking over as First Minister, he said he was in "negotiations" with Ofgem to secure the funding. But an Ofgem spokesman said it had not received a request for the cash.

A Scottish Government spokesman said: "We are continuing to examine the options for securing the surplus fossil fuel levy funds and we are in contact with both Ofgem and Treasury over this issue."

Labour MP Adam Ingram – who asked the parliamentary questions about the affair – said: "This is another example of a promise made turning into a promise broken."

However, Jason Ormiston, chief executive of Scottish Renewables, said: "I don't think the Scottish Government is to blame.

This goes right across the UK.

"None of (the levy] is being used because of Treasury rules. The benefits could be enormous. It is time the Treasury thought about changing those rules in order to boost the sector."



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1

Scotindy,

Los Angeles 24/02/2008 05:27:09
Like anything london get's it.s grubby hands on it will never release, and of course SCOTLAND wishes to move forward with renewables,whilst london wants us to have nuclear subs and power stations, the political horizon will be interesting. indeed.
2

Edward,

24/02/2008 10:49:19
This is terrible that this money isnt being used
The government have failed to use the fund since 2005!
Wait a minute, SNP wereonly elected in 2007 an are only responsible for fiscal matters starting fiscal year March 2008
Oh Mr Barnes , you been twisting the facts again!
So what your saying is that Labour and the Libdems have failed to spend the money since 2005, for 2005/2006, 2006/2007 and 2007/2008 fiscal periods
'Labour MP Adam Ingram – who asked the parliamentary questions about the affair – said: "This is another example of a promise made turning into a promise broken." Noew thats very funny (must be Adam Ingrams turn to get his name about in the papers - see other articles) Ingrams reading from the prepared script. Unfortunately it was the previous administration that failed to spend the money
3

Il Penseroso,

Inverurie 24/02/2008 21:53:57
It is a National disgrace that only TWO posts up till now have commented on this dreadful cash flow disgrace. Adam Ingram is now becoming the biggest TURN COAT in Labour party history. I marched with this guy along with other Labour TURN COATS i.e. Traitors, in the seventies when it was the popular debate to make SCOTLAND NUCLEAR FREE. The list of nuclear traitors is endless in the New Labour ranks. Worse still is the shocking greed of the Treasury (Brown and Darling)who refuse to give the Scottish Government the refund of National Insurance cash legally due to Holyrood from the N.I. coffers. Lord Sutherland showed the legal case to have this money returned to Scotland. Westminster does NOT accept the law of the land and has said NO. The poverty of the elderly in Scotland could be eliminated if the TRAITORS in the Treasury would ACT LAWFULLY. Adhering to the law by this lot! New Labour is under the cosh from a revitalised government in Scotland and their fiefdom is now a thing of the past.Dead and almost buried! How do they react? Starve us of the legitimate cash we need to succeed.They have the power, we must have the resolve to beat them at the polls.
4

Boggle fey the Bog,

25/02/2008 09:01:05
We have now come to expect that, when Eddie Barnes puts 'pen to paper' all semblance of truth is thrown out with the 'first draft'.

Just look at his other article on 'Voters'.

The fact is simple Nu Labour/Owld Torie have had this money in the 'bank' in London and because of their rules , i.e. 'Pound for Pound' the money has not been returned to Scotland.

An Ofgem spokesman said 'they hadn't received a request for the cash' he didn't say that the Scottish Government hadn't contacted them, this assumption appears to be a figment of the collective imaginations of Mr Barnes and Mr Ingram, as does the so called 'dispute over funding'.

Quite simply if the Scottish Government don't cover pound for pound any monies that they want to draw from this fund then, the WESTMINSTER CONTROLLED TREASURY, will not release the money, it is not just a 'Scottish' problem Wales, N.I. and England are suffering from the same rules, it is in fact a Westminster problem. They are taxing us on fossil fuels, then not releasing the monies so gathered to help develop non-fossil fueled energy supplies.

My suggestion to you Mr Ingram is rather than berate the Scottish government you should start 'having a go at' Mr Darling and his Boss, the former Chancellor, Mr Brown, who implemented the rules.

However I fear your back bone is made of the same stuff that all Nu Labour/Owld Torie politicians back bones are made of, and I don't think it is bone.
5

Sanny,

25/02/2008 12:36:10
We are rapidly reaching the point where we will have too many clubs with which to beat the Labour party at an Election. If Labour’s Scots Voters cannot see the anti-Scottish actions of their party, the sleaze and corruption of Blair, coupled with the rank incompetence of Brown; then they do not deserve to live in an Independent Scotland.

Must we wait another three years to rid ourselves of these mill-stones around our neck? How much longer can this Labour Government last in Westminster? It will be up to the electorate in Brown’s constituency to send the ultimate message to Labour and Westminster by humiliating Brown at the polls, third of fourth place would be a good start.
6

Isonomia,

Lenzie 25/02/2008 13:59:25
"The fact is simple Nu Labour/Owld Torie have had this money in the 'bank' in London and because of their rules , i.e. 'Pound for Pound' the money has not been returned to Scotland."

This is not the only time Scotland has done badly out of NewLabour's meddling. Between 2000-2008 there was no need at all for scotland to pay for any renewables, because we already had huge amounts of hydro which did not need subsidy. But NuLabour couldn't have Scots benefitting from their Hydro, so they gave us a 18% target by 2010 and let England off with a 10% target (which actually fails to deliver 10% because of transmission losses).

In truth, Scottish consumers are paying for windmills which they don't need, whilst the English who should have been paying for the renewables they needed to fulfil their obligation, are sitting on our money.

Scotland, best wind and wave resource in Europe, but governed by numpties who think this means we should pay the most toward renewables of any country in Europe!
7

CROSSED GEORGE,

ENGLAND 13/03/2008 01:21:16
Sanny,25/02/2008 12:36:10
We are rapidly reaching the point where we will have too many clubs with which to beat the Labour party at an Election. If Labour’s Scots Voters cannot see the anti-Scottish actions of their party, the sleaze and corruption of Blair, coupled with the rank incompetence of Brown; then they do not deserve to live in an Independent Scotland.

Must we wait another three years to rid ourselves of these mill-stones around our neck? How much longer can this Labour Government last in Westminster? It will be up to the electorate in Brown’s constituency to send the ultimate message to Labour and Westminster by humiliating Brown at the polls, third of fourth place would be a good start

THIS WILL BE THE SAME LABOUR WHO GAVE YOU A PARLIAMENT, AND EXCELLENT PUBLIC SERVICES AT THE EXPENSE OF ENGLANDS

WHAT A LOAD OF USUAL SELF PITYING RUBBISH, YOU ARE ALL SO HARD DONE TO:

AND YOUR TOO DAFT TO REMEMBER BROWN (born in Kirkcaldy) AND BLAIR (Edinburgh boy) ARE YOUR OWN, NOT ENGLISH SO GET YOUR OWN HOUSE IN ORDER BEFORE FINDING FAULT WITH OURS. MAYBE WE SHOULD BLAME SCOTLAND FOR ALL OUR PROBLEMS, AFTER ALL THEY HAVE MULTIPLIED SINCE THESE TWO GOT IN
8

CROSSED GEORGE,

13/03/2008 01:23:11
Isonomia,Lenzie 25/02/2008 13:59:25
"The fact is simple Nu Labour/Owld Torie have had this money in the 'bank' in London and because of their rules , i.e. 'Pound for Pound' the money has not been returned to Scotland."

This is not the only time Scotland has done badly out of NewLabour's meddling. Between 2000-2008 there was no need at all for scotland to pay for any renewables, because we already had huge amounts of hydro which did not need subsidy. But NuLabour couldn't have Scots benefitting from their Hydro, so they gave us a 18% target by 2010 and let England off with a 10% target (which actually fails to deliver 10% because of transmission losses).

In truth, Scottish consumers are paying for windmills which they don't need, whilst the English who should have been paying for the renewables they needed to fulfil their obligation, are sitting on our money.

Scotland, best wind and wave resource in Europe, but governed by numpties who think this means we should pay the most toward renewables of any country in Europe


YOU AGAIN,

BROWN - SCOTTISH
BLAIR - SCOTTISH
REID - SCOTTISH
DARLING - SCOTTISH


NOT ENGLISH, NOT OUR FAULT, STOP THIS ANTI ENGLISH RUBBISH AND YOU MIGHT JUST GET A BIT OF SYMPATHY DOWN HERE AS YOU ARE SO HARD DONE TO

 

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