John Redwood's Diary
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Answers to my Written Parliamentary Questions – jobs created by wind turbine installation

Department for Energy Security and Net Zero provided the following answer to your written parliamentary question (198577):

Question:
To ask the Secretary of State for Energy Security and Net Zero, how many jobs have been created in the UK to manufacture wind turbine (a) motors and (b) blades in the last 12 months. (198577)

Tabled on: 11 September 2023

Answer:
Graham Stuart:

The Government does not hold this data.

The Office for National Statistics estimate that the offshore wind sector employed around 10,600 people across the UK in 2021.

The answer was submitted on 19 Sep 2023 at 11:38.

 

Comment.  World data tells us China is the dominant supplier of wind turbines and solar panels. The much vaunted green jobs so far have largely been created in China.

The Bank of England is wrong to keep selling bonds at big losses

The Bank of England decided this week to get rid of ÂŁ100bn of bonds over the next year, ÂŁ20bn more than last. I agree they should not buy more bonds to replace the ones that mature, like the ECB. I strongly disagree with their aggressive policy of selling bonds at big losses which would lose us less money if they held them to maturity. They have notched up ÂŁ24 bn of losses, all paid for by the Treasury , this year since April. They have provided no good reason why they do this.

Maybe they want to qualify as one of the worst bond managers in the world. They certainly paid sky high prices for the bonds when rates were near zero. They then hiked rates and sold bonds to force the prices down so they could make colossal losses. They defend the rate rises on the good grounds they needed to do that for monetary policy purposes, as their bond buying and low rates had proved very inflationary. They tell us selling the bonds has little impact on anything, so why do it?

It is difficult to believe what they say. They say buying the bonds at ultra high prices was essential to buttress the economy and help output, but apparently selling them does not do the opposite! Buying stimulates, selling does  nothing!

They say their sales, large and low priced as they are, does not depress the market. Of course it does. They point out the prices do not particularly dip on the days of the sales. That is because the sales have been well heralded in advance and are carried out to a stated timetable, so they are in the price. Last autumn when they first announced a big ÂŁ80 bn bond reduction programme it was followed by bond meltdown, exacerbated by the LDI collapse it helped trigger. The Bank had to reverse policy and buy bonds again to stabilise the market. This showed Bank buying and selling has a big impact as they are the dominant presence in this market.

The public finances ex Bank of England are badly damaged by the extent of the losses, which the needless selling makes worse. As the Bank does not think the sales make any difference, why do them when their balance sheet will come down as the bonds mature? More likely these sales have raised longer term interest rates, have weakened bond prices further and very visibly have worsened the public spending and borrowing figures ex Bank of England.  Why do other MPs ignore £24 bn of losses so far this year with so many more to come?

Answers to my Written Parliamentary Questions – tax on electric vehicles

Treasury has provided the following answer to your written parliamentary question (198583):

Question:
To ask the Chancellor of the Exchequer, whether he has plans to introduce new taxes on the (a) purchase and (b) running costs of electric vehicles. (198583)

Tabled on: 11 September 2023

Answer:
Gareth Davies:

In his 2022 Autumn Statement, the Chancellor announced that from April 2025 electric cars, vans and motorcycles will begin to pay Vehicle Excise Duty in the same way as petrol and diesel vehicles. Electric cars with a list price of ÂŁ40,000 or more will also be liable to pay the Expensive Car Supplement.

As with all taxes, VED is kept under review and any changes are considered and announced by the Chancellor.

The answer was submitted on 19 Sep 2023 at 13:42.

 

Comment The answer fails to address lost petrol and diesel duty which some say will mean some tax per mile on EVs or a tax on electricity through rechargers.

Answers to my Written Parliamentary Questions – offshore wind power

Department for Energy Security and Net Zero provided the following answer to your written parliamentary question (198578):

Question:
To ask the Secretary of State for Energy Security and Net Zero, whether she has an estimate of how much CO2 was produced in the (a) manufacture and (b) installation of one gigawatt of offshore wind power within the UK in the last 12 months. (198578)

Tabled on: 11 September 2023

Answer:
Graham Stuart:

The Department does not publish information related to this request directly, however, the IPCC and UNECE have published estimates related to this request here:

https://www.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_annex-iii.pdf#page=7

https://unece.org/sed/documents/2021/10/reports/life-cycle-assessment-electricity-generation-options

Both estimates demonstrate that the lifecycle CO2 impact of generating electricity from offshore wind is significantly lower than fossil fuels.

The answer was submitted on 19 Sep 2023 at 11:30.

Answers to my Written Parliamentary Questions – budget for carbon capture and storage

Department for Energy Security and Net Zero provided the following answer to your written parliamentary question (198584):

Question:
To ask the Secretary of State for Energy Security and Net Zero, whether she has made an estimate of the government’s budget for carbon capture and storage expenditure over the next five years. (198584)

Tabled on: 11 September 2023

Answer:
Graham Stuart:

In the 2023 Spring Budget, the Chancellor announced an unprecedented ÂŁ20 billion investment in the early development of carbon capture, usage and storage (CCUS). The quantum of spend within a given period will depend on the outcome of commercial negotiations and will be subject to confirmation at the next and subsequent spending reviews.

The answer was submitted on 19 Sep 2023 at 11:40.

 

Comment.  It is most important that this spending is reviewed and properly controlled. The UK needs to keep in line with major industrial nations like China and Germany, as CCUS is all additional cost. If we burden ourselves and competitors do not we will simply lose more industry and swell the bill for subsidies to try to offset the damage.

 

 

Answers to my Written Parliamentary Questions – electricity prices

Department for Energy Security and Net Zero provided the following answer to your written parliamentary question (198579):

Question:
To ask the Secretary of State for Energy Security and Net Zero, whether she has made a comparative assessment of UK electricity prices compared to those charged in the United States. (198579)

Tabled on: 11 September 2023

Answer:
Graham Stuart:

Domestic and industrial electricity prices for countries that are members of the International Energy Agency (IEA) are published in Quarterly Energy Prices tables 5.5.1 and 5.3.1 respectively.

Table 5.5.1: https://www.gov.uk/government/statistical-data-sets/international-domestic-energy-prices and Table 5.3.1: https://www.gov.uk/government/statistical-data-sets/international-industrial-energy-prices

Average electricity prices in the United States are among the lowest in the IEA, below those in the UK, and they have been one of the 5 countries with the lowest prices across the IEA since the mid-2000s. Electricity prices vary by locality in the United States based on the availability of power plants and fuels, local fuel costs, and pricing regulations.

 

JR Comment

This reveals that UK suffers a major competitive disadvantage by going for expensive electricity, along with high energy and carbon taxes. To have a stronger industrial base we need cheaper energy.

Answers to my Written Parliamentary Questions – average retail pump price

Department for Energy Security and Net Zero provided the following answer to your written parliamentary question (198580):

Question:
To ask the Secretary of State for Energy Security and Net Zero, how much and what proportion of the average retail pump price for a litre of petrol is tax as of 11 September 2023. (198580)

Tabled on: 11 September 2023

Answer:
Amanda Solloway:

As off 11 September 2023, average retail pump price for petrol was 153.1 pence/litre the total tax for this was 78.47 pence/litre or 51.3% of the pump price. This is comprised of fuel duty, currently held at the reduced rate of 52.95 pence and VAT amounting to 25.52 pence.

At Spring Budget 2023 the government announced continued support for households and businesses by maintaining the rates of fuel duty at the same levels for an additional 12 months, by extending the temporary 5p fuel duty cut and cancelling the planned inflation increase for 2023-24. That represents a saving for drivers this year of overall around ÂŁ5bn and for the average car driver around ÂŁ100 and around ÂŁ200 since the 5p cut was introduced.

The answer was submitted on 19 Sep 2023 at 13:31.

My Interventions in the Automotive Industry Debate (5)

My Interventions in the Automotive Industry Debate (1)

My Interventions in the Automotive Industry Debate (2)