Green energy agenda ‘in jeopardy’

UP TO £4 billion of annual green energy subsidies could be at risk if Scotland becomes independent, Scottish Secretary Michael Moore has warned.

Moore rounded off an energy-focused second day at the Liberal Democrat Scottish Conference in Inverness by repeating concerns that the independence referendum is deterring investment.

Charles Kennedy, the former party leader, who has been appointed by Moore to be the Lib Dems’ “point man” in the pro-union campaign, told delegates that England may need to create a second Green Investment Bank if Edinburgh wins a hotly-contested bid for its UK headquarters but then subsequently becomes the capital of an independent Scotland.

In his closing speech to conference yesterday Moore said: “Across the UK we have a single energy market. “And that market is key to realising Scotland’s renewables potential. Yes, we have vast green energy resources. But we alone could not afford the level of investment needed to make good on our green ambitions.”

Moore cited a report published last year by Citigroup that warned that even the prospect of an independence referendum would deter investment in Scotland’s green future. “They warned that if Scotland were separate from the rest of the UK, green energy subsidies of up to £4 billion a year could be at risk,” Moore told the conference. “So I say that at this critical moment for the global environment our single energy market is not an option; it is a necessity.

“A necessity to meet our targets, invest in our future and combat climate change. It is a positive example of why we are stronger together and poorer apart.”

Moore also urged the SNP to “quit stalling” and hold the referendum in September 2013 instead of waiting until autumn 2014, which is the nationalists’ favoured date.

“We don’t need 1,000 days to decide this crucial question,” he said. “We can get this done in the 500 days that follow the consultations.

“In 500 days you can plan the poll, pass the law and hold the ballot.

“That is enough time for the Scottish people to hear the arguments, consider the evidence, and express their view.

“Over the past few days some of Scotland’s biggest employers have come out to highlight the impact of uncertainty and delay.

“SSE, the Weir Group, Scottish Engineering. Every one of them has made the point that the uncertainty caused by a stalled referendum will impact on business decisions.

“And business decisions impact on employment in Scotland. Delay today kills jobs tomorrow.”

The constitution featured in all speeches at the conference yesterday, with a separate intervention from former Lib Dem leader Charles Kennedy.

Kennedy warned of the dangers of a “tribal campaign” to save the Union, calling for Labour and its STUC allies to find common cause with the Conservatives.

Speaking yesterday Kennedy said: “One of our challenges for the cross-party campaign is to bring everybody together, and hopefully get them singing from the same hymn sheet as to what our blueprint for the future will be.”