Feed-in tarriff cut is "own goal", says CBI
THE Government’s decision to cut subsidies for solar energy is one of a series of Government “own goals” on industrial policy, according to the CBI.
In a speech last night, CBI director-general John Cridland said the move illustrated the lack of joined-up thinking across Government departments.
Ministers have argued an earlier than expected reduction in the so-called feed-in tariff for solar energy was needed because of demand on the scheme.
Mr Cridland said: “This is the latest in a string of government own goals, following the Carbon Reduction Commitment becoming a pure revenue-raiser and the North Sea oil and gas tax.
“As you all know, moving the goal posts doesn’t just destroy projects and jobs, it creates a mood of uncertainty that puts off investors and they wonder what’s coming next.
“Some companies have invested heavily in solar photovoltaic systems, and in the supply chains needed to install them. That commitment has been undermined by the feed-in tariff decision – and so industry trust and confidence in the Government has evaporated. This bodes poorly for investment in future initiatives.
“A new industrial policy needs to recognise the real-time costs of these decisions, and should set out a clear path that investors understand and can believe in.”
Mr Cridland also used his speech to urge the Government to use its own buying power to stimulate innovation.
“Government departments and agencies need to look beyond lowest price and consider whole-life value and how business is involved throughout the process.
“Take defence. It must be possible to achieve the twin aims of getting our servicemen and women the best kit, and gaining some advantage for our domestic industries. But we’ve gone backwards since the defence review,” he said.
