Where vast subsidy is no subsidy

 

Stranger than fiction

Ed Davey produced this explanation of how the Coalition is ratting on their agreement to have no subsidies on nuclear power. Please read carefully and deconstruct. 

 

Paul Flynn:

'I have a simple question. Is the Secretary of State able to provide an assurance that there will be no subsidies to nuclear power without the full knowledge and consent of this House?

Mr Davey:

I am trying to explain our policy on no subsidy, but the hon. Gentleman interrupted me. The position is being put on the record in a way that I have never had a chance to do before.

Our aim is for a broadly standardised approach to contracts for difference that will allow for comparability between technologies and the introduction of competition for CFDs. I do not think that what is needed is a line-by-line comparison of the terms of each contract. That is not what our policy says or requires. In fact, there are likely to be variations in CFD designs between one technology and another, and perhaps also between different projects within the same technology. What is important is that the terms agreed deliver a similar result across technologies and projects, and that they result in a proper allocation of risk. In addition, each contract will need to deliver value for money for the consumer and be compatible with state-aid rules. A contract with a nuclear developer that does those things would be compatible with our no-subsidy policy.'

 

“When I use a word," Humpty,  Dumpty said in rather a scornful tone, "it means just what I choose it to mean - neither more nor less.” – Alice Through the Looking Glass, by Lewis Carroll

 

This is Jesuitical Casuistry. He is saying there will be a subsidy. Perhaps an enormous subsidy. But you, Parliament and the public, will not know what it is until it is too late to change. 

 

In other words, 'Trust me, I'm the Government'. 

 

Sob.

********************************

Paul Flynn (Newport West) (Lab):

Following the right hon. Gentleman’s alleged answer to my hon. Friend the Member for Kingston upon Hull North (Diana Johnson), will he arrange a seminar for all Ministers to explain the precise meaning of the word “question”, the precise meaning of the word “answer”, and the need for a link between the two?

Mr Lansley:

I will not organise such a seminar because I think that that is understood by Ministers.

 

Comments

[Rwendland]

Paul, the way the Power Engineering industry magazine report the 40-year CfD idea may give you a useful quote to use:

http://www.power-eng.com/articles/2013/02/uk-offers-40-year-subsidies-to-encourage-new-nuclear-builds.html

UK offers 40-year subsidies to encourage new nuclear builds
Feb 19, 2013

...

The move is a reversal of an agreement made in 2010, under which ministers promised that no nuclear plants would be built in the country with public subsidy. Cost overruns for new nuclear build around the world as well as the exit of a number of utilities from the UK in recent years led the government to backtrack on its position. In an effort to ensure that the price of electricity remains below the politically symbolic number of 100 pounds ($155.21) per MWH, ministers are proposing contract extensions with state subsidies from the original 20 years to 30 and 40 years.