Government comes under attack from CBI chief over FiT
Green policy news – by GreenWise staff
10th November 2011
The boss of the leading business group the CBI has waded into the row over the Feed-in Tariff, describing the Government’s decision to cut the solar subsidy as an "own goal".
In a sign of the growing frustration of
UK business over the Government’s retreat on
green policy, John Cridland,
CBI director-general, tonight called the Department of Energy and Climate Change’s (DECC)
solar FiT decision, "the latest in a string of Government own goals".
Speaking at the CBI East Midlands Annual Dinner on industrial policy, Cridland said: "Take the low carbon sector, which has been growing across the world throughout the recession. We need to expand our share. Last week, the Government announced a dramatic cut in the solar Feed-in Tariff. A reduction was already on the cards from April 1, but this will now come in by mid-December – before the consultation has even ended. 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.
"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."
Increasing pressure
DECC is coming under increasing pressure to re-think its decision on the FiT.
Today, a group of solar companies, led by Solarcentury, confirmed they were taking legal action against DECC over its decision. Friends of the Earth is also threatening the Government with a judicial review.
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