Siemens deal: Hull council leader's concern at Government's 'mixed messages' on renewables
CITY council leader Steve Brady says he is concerned Siemens has threatened to shelve investment plans in the UK.
The German engineering giant is among seven global energy companies to have signed a letter expressing worries over the Government's energy policies.
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Confusion: Deputy Prime Minister and leader of the Liberal Democrats Nick Clegg visits Alexandra Dock in Hull. From Left, Matt Dukes, of ABP, Dan McGrail, of Siemens, and Nick Clegg. Picture: Jerome Ellerby
The firm has yet to confirm long-standing proposals for an £60m offshore wind turbine assembly plant at Hull's Alexandra Dock.
Planning permission for the development was granted earlier this year but Siemens has yet to make a final commitment.
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Councillor Brady said: "I know for a fact Siemens is perfectly happy with us.
"As a local authority, we have done all we can to get them here and they know we have played ball.
"However, what happens next is out of our hands and that is what concerns me.
"Like any potential investor, they want a degree of certainty before they spend their money and this Government is not providing that at the moment."
The council leader said the Government was causing confusion over its commitment to renewables.
He said: "To be fair to the Liberal Democrats, they have long been in favour of green energy but the problem seems to lie with the Conservatives.
"They are sending out very mixed messages on the issue and they also have 100 MPs putting in a motion against onshore wind farms.
"I think that has created a lot of confusion, too."
He said the uncertainty was not only troubling companies like Siemens but also supply firms in the renewable energy sector which are seeking clarity on green policy from ministers.
In the letter, the seven firms say a lack of decision-making and threats to relax key targets on green energy production "have caused us to reassess the level of political risk in the UK".
Sent to Prime Minister David Cameron and copied to Chancellor George Osborne, the letter says plans for "significant further investment" in the UK "is critically dependent on a long-term stable policy framework".
The companies are also critical of support for developing British nuclear and gas-powered plants as an alternative pressing ahead with renewable energy plans and offshore wind farms.
Mr Brady said: "The previous Labour Government made it very clear they supported renewable energy and offshore wind in particular and would provide the necessary support to make it happen.
"I am fairly certain that was one of the main reasons Siemens decided to look at Hull in the first place."
A Department of Energy and Climate Change spokesman said: "A fifth of our power stations are closing over the next decade and we need to see £110bn in investment by 2020.
"The Government is taking action to give confidence to investors in renewables, new nuclear, gas and carbon capture and storage, supporting jobs the length and breadth of the country.
"The Energy Bill will be introduced within weeks, bringing about reforms of the electricity market vital to keeping the lights on and to significantly decarbonise the power sector."
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Comments
by Business Website SEO - Website Promotions
Saturday, October 20 2012, 11:11AM
“David Cameron's throwaway remark that "energy companies have to give the lowest tariff to their customers", although welcomed by consumers, could give many energy-generators cold feet.”
by peterw6889
Thursday, October 11 2012, 11:02PM
“Wind power -- one the biggest ways of wasting money known to man -- a complete con -- scrap it now”
by buornfree
Wednesday, October 10 2012, 4:18AM
“It will most probably go to a cheap country were labour is a lot cheaper and this gov will blame the workers for it then import them back hear”
by steveodore
Tuesday, October 09 2012, 8:15PM
“Why both with these useless windmills, Britain sits on a huge coal reserve, use it and sod the EU and it's green agenda. China doesn't worry about all that wind cobblers and they're doing allright.”
by Prescotts_Cat
Tuesday, October 09 2012, 8:00PM
“"They are sending out very mixed messages on the issue and they also have 100 MPs putting in a motion against onshore wind farms."
Are Siemens looking at using this as an excuse not to invest in Hull? As the Alexandra dock facility is for offshore wind farms. Mark my words people.”
by jezhull
Tuesday, October 09 2012, 6:06PM
“I dread to think what Siemens must think when they visit the city and see Cllr Brady as our leader, the guy is not exactly impressive is he?
He can barely string a coherent sentence together and constantly refers to the city a 'ill, he makes me cringe and is totally out of his depth.
We need a dynamic, intelligent, educated leader for this city, not a throwback to the militant 1960's left wing morons like Cllr Brady”
by hesslelad
Tuesday, October 09 2012, 6:00PM
“Tory.MP's are backing a plan to site 700 turbines in Ireland,and run cables under the sea to power parts of Britain(3 million homes)It has the backing of the Irish PM,and the company has ALREADY sourced the land.The landowners and locals seem to see it as economic growth and the company has held meetings with the Climate Change Secretary,and will this week meet a series of Tory ministers.Turbines on land are cheaper to build and cheaper to maintain that those off shore,and firms like Siemans must be aware of this new development as their is no opposition and has the backing of both governments..I wonder if Hull Council are aware of this ,or even the Hull Daily Mail?”
by rob37n
Tuesday, October 09 2012, 5:07PM
“It would not surprise me in the slightest if politicians managed to snatch defeat from the jaws of victory once again. Politics and politicians have ruined the City of Hull, if not being ignored by central government then with weak ineffectual party apparatchiks of the Labour Party, or with corrupt, useless, local government officials.”
by EducatedSage
Tuesday, October 09 2012, 3:07PM
“I fear that David_Nivea may well be correct in his assertion that "they're never going to come anyway".
The only major road access to the site is particularly restricted due to the necessity of having to traverse the A63 and then Hedon Road. Access via the River Humber is of course less of a problem, except for the location of Alexandra Dock being further up river than that of North Killingholme and therefore more time consuming.
The deep water access to Immingham and N Killingholme, coupled with the efforts being made by Able Uk Ltd, may ultimately determine the outcome. Then again, central government's current lukewarm policy towards wind generated energy, could determine the issue for both banks of the river.”
by Anon_Geoff
Tuesday, October 09 2012, 1:23PM
“Sorry... My point being that current government policy should not be a decisive factor in the building of such a large scale factory. Sounds like excuses or big companies looking to bully the government to use public money to fund their activities.”