Daily Archives: August 28, 2008

Jim Pickard

Newsflash: I’ve just been told that Tesco is withdrawing plans for an ecotown at Hanley Grange, near Cambridge.

We ran the story last week that the wheels were falling off the ecotown project, with three having withdrawn, one having been cut from 15,000 homes to 5,000 and another three – including Hanley Grange – running into difficulties.

After that article, a DCLG official called me to say that Hanley Grange was going fine, despite the fact that one major member of the consortium, Wellcome Trust, had dropped out of the scheme.

Now it seems that Tesco, the remaining landlowner, has some reservations about the way in which the government is bulldozing local authorities to get its new conurbations built. It still wants to do the project, but in a more conciliatory way.

TESCO STATEMENT ON HANLEY GRANGE ECO TOWN PROPOSAL:

“Tesco put forward a strong proposal for an environmentally-leading mixed-use development at Hanley Grange through the Government’s Eco Town initiative – combining housing, employment and cutting-edge environmental technology.

The site was shortlisted as one of 15 out of an original list of 57 sites, and we think the proposal had very good prospects of succeeding under the Government’s Eco Town initiative. 

However, we recognise that a proposal of this type has implications not only for the local area, but for the region.  We also believe that a genuinely sustainable community stands

the best chance of being delivered successfully if a broad range of stakeholders in the region feel that they have been fully engaged in the process leading up to a decision. 

We believe this is most likely to be achieved through a review of the Regional Spatial Strategy (RSS), which involves a wide range of organisations and interest groups in the region.

We look forward to setting out our plans for a sustainable community at Hanley Grange through the RSS process, and to engaging on the broad range of views that will be expressed through that process.”    

There’s more on this website.

Jim Pickard

Leave aside the question of whether energy companies are charging too much for power. There is the separate question of the European emissions trading scheme (ETS) windfall, addressed elsewhere on this blog.

Earlier this year, Ofgem said power companies had ended up with a £9bn windfall because of a quirk in the scheme. In its second phase polluting companies must buy on average 7 per cent of the permits they need to pollute. For power companies it’s about 30 per cent.

Yet the price of electricity has risen as if companies had to pay for 100 per cent of their permits. Thus the Ofgem figure.

But the £9bn was based on carbon permits at £20 each, whereas the market price is now £25 to £30. That means MPs, unions and others who complain about the ETS windfall can now use a new figure……well north of £11bn.

Westminster blog

on the UK political scene

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Jim Pickard and Kiran Stacey, FT Westminster correspondents, share the latest news and analysis on the UK's political scene.

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Contact the Westminster blog team: Jim Pickard, Kiran Stacey, Nicholas Timmins, Elizabeth Rigby and Helen Warrell.

The illustrations of Jim and Kiran are by Nick Hardcastle.

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The authors

Jim Pickard joined the lobby team in January 2008. He has been at the Financial Times since 1999 as a regional correspondent, assistant UK news editor and property correspondent.

Kiran Stacey is an FT political correspondent, having joined the lobby in 2011. He started at the FT as a graduate trainee in 2008, working on desks including UK companies and US equity markets before taking over the FT's Energy Source blog.

Contributors

Elizabeth Rigby, the FT's chief political correspondent, joined the lobby team in September 2010. Elizabeth has worked at the FT for more than a decade and was most recently its consumer industries editor.

Helen Warrell is the FT's UK reporter, covering home affairs, crime and policing. She joined the FT in 2008 and has spent time as a reporter in the Brussels bureau and more recently, editing the paper's Asia coverage on the world news desk.

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