CLIMATE CHANGE

Can local government learn to love fracking?

Paul Wheeler suggests local government should take advantage of shale gas exploration as a major growth industry.

                            
My heart sank when I heard that the London Borough of Brent has decided to ban all fracking in the borough.

Partly because it is an idiotic decision -there is no evidence that there are any shale gas reserves in North West London.

Secondly because it is a throwback to the gesture politics of the 1980's which did so much damage to the reputation of local government.

Back then local councils got on the band wagon of ‘nuclear free zones'. All that succeeded in achieving was to create a climate of hostility to all nuclear power which saw the decline of one of our most successful industries where we once world leaders.

Now we realise we need nuclear power – we are just relying on the French and Chinese to build the necessary power stations and infrastructure.

In a way you can understand the thought process within Brent Council. Our energy policy and in particular our view of shale gas seems to be determined by a shouting crowd of Green Party activists rather than wider considerations.

However there is a hope of change. A combination of Ed Milliband and the greed of the Big Six energy companies has pushed energy policy to the heart of the policy debate.

And for a change local government could have a critical role in this debate.

Whilst government and shadow ministers have talked about the impact of energy switching local government has got on and done it. Nowhere more so than in Greater Manchester where led by Oldham council an imaginative campaign saw over 20,000 households register to switch their energy supplier with average savings of £120pa.

They will return to the campaign trail in January with ambitions to turn this into a national scheme. If they can get 100,000 households committed to switching (and with government support they could) that will make the Big Six blink.

There are also a whole range of local authority sponsored schemes to consider energy generation and renewable schemes that are putting local government at the forefront of innovation.

However the bigger picture is that – whatever success we have with renewable sources of energy – we are going to have to rely on gas to supply a large part of our energy needs (and to avoid the real risk of power cuts from 2015 onwards).

The only question is whether we produce the gas ourselves or rely on imports from Russia and Qatar (and by the way Green MPCaroline Lucas prefers we rely on imports)

But if the rest of us don't want to pay billions of pounds to support an authoritarian regime in Russia (and a dubious World Cup bid in Qatar) we have to look at developing our own domestic gas industry and here local councils are critical – both in their planning role but also as promoters of their local economies. 

Shale gas has been the subject of intense scrutiny but sadly with more heat than light (sic). What is evident is that underneath our island there are billions of cubic feet of gas that could supply our energy needs for several generations.

The real question is can the gas be extracted safely. Britain has one of the most safety conscious and regulated energy industries in the world. So there is no reason for energy companies to develop our own shale gas to provide jobs and taxable income other than prejudice and misinformation – much of it funded by American coal companies

It is fair to say that those involved in promoting the shale gas industry have been rather inept - Lord Howell and his desolate North quote being a prime example -  but that does that take away from the enormous economic and employment, both direct and indirect, potential that our domestic shale gas presents.

However If local government is going to take balanced decisions then the current economic offer from energy companies to local councils has to be considerably enhanced.

I am old enough to remember the' canny deal' that Orkney and Shetland negotiated with the energy companies for the development of North Sea oil and gas.

Aberdeen remains one of the world's leading energy cities with expertise and knowledge that supports thousands of jobs. There are now similar opportunities in the North West of England where thousands would welcome the opportunity for high paid skilled work and the local revenues that could be generated with skilful negotiation by local leaders.

The tragedy is that because of a misinformed political campaign we could be missing out on a major growth industry and the opportunity for energy security at a time of great international tension. It happened in the 1980's with ill-informed hostility to nuclear power. Are we on course to do it again with Shale gas?

 

Paul Wheeler

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