Green energy plea to Osborne

Published on Wednesday 3 November 2010 18:15

A POWERFUL coalition of Scottish business and union leaders have written to Chancellor George Osborne to urge more backing for the country's renewables industry, amid fears Scotland is at risk of losing the race to become a world leader in wind, wave and tidal power.

The Scottish Chambers of Commerce, Scottish Council for Development and Industry, Scottish Trades Union Congress and industry body Scottish Renewables are urging Mr Osborne to look again at plans unveiled in his Spending Review to back green energy.

Key to the row are the 190 million receipts from a tax known as the Scottish Fossil Fuel Levy, which is a tax on power stations so Scottish ministers can invest in green energy projects. However, Treasury rules stipulate that if they take the cash, their core budget, used to pay for health and education, is cut by the same amount.

The letter casts doubt on whether Scottish ministers can invest in green projects while balancing other spending commitments.

Meanwhile, Scottish Secretary Michael Moore, below, told the Scottish affairs select committee he was working to ensure the proposed Green Investment Bank was based in Scotland. He said: "I am working with a great deal of partners in Scotland to ensure that it comes to Scotland."