No new energy projects in infrastructure list

Angus Walker picture-13This entry reports on an announcement on infrastructure projects by the Prime Minister and Chancellor of the Exchequer.

In a rare appearance together - the first time since the general election in 2010, no less - the Prime Minister and Chancellor visited Skanska's headquarters in Rickmansworth today and declared that over 200 infrastructure projects will start construction this financial year (2014-15) and 200 will finish this year. The two lists of projects can be found here.

The press release says that over 200 projects will start and 'another' 200 projects will finish, but I've checked the two lists and of 220 on the start list, 78 of them appear on the finish list as well. A bit of double counting there, and it suggests they are fairly small projects if they will start and finish in the same year.

Enough of such pedantry. Perhaps most significantly, although there are six energy projects on the finish list, there are no energy projects on the start list. I probably wouldn't have noticed had there not been some text on page 9 of the document explaining why this is the case - it says that the number of expected projects previously mentioned exceeds expected demand, and although it is still anticipated that some projects will start, they haven't been listed (I suppose on the basis that they can't predict which ones will start).

Why is there low demand for energy projects, when the energy National Policy Statements say that all forms of energy infrastructure are urgently needed? The fact that demand does not match need appears to be something that should be addressed. Nevertheless, the priority that the government is giving to infrastructure in general is surely a good thing.

Incidentally at the Q&A session this afternoon, David Cameron said that the time would come when enough onshore wind has been built to meet the government's targets. I don't think any targets differentiate between onshore and offshore wind at the moment, but I detect that they might. George Osborne was asked about the Armitt Review and said he had a lot of respect for Sir John Armitt and that long-term consensus on infrastructure projects was a good idea, but stopped short of supporting the proposals for a national infrastructure commission.

This visit is only one of a number of infrastructure-themed appearances today. Secretary of State for Communities and Local Government Eric Pickles MP has been in Sheffield, where he announced a £120m infrastructure investment plan for that area (£25m of government money).

Secretary of State for Transport Patrick McLoughlin MP has been in Birmingham, where he visited the New Street Station upgrade works. Energy minister Michael Fallon MP has been in Nigg, near Inverness, where he visited a construction site for the Cygnus North Sea gas project. Finally, Secretary of State for Wales David Jones MP issued a press release about infrastructure projects there, although I don't think he visited anywhere.

Finally, in related news there is to be an Infrastructure Bill in the Queen's Speech launching the final session of this Parliament on 4 June, which according to the BBC will contain at least three measures:

  • modifying trespass laws to allow shale gas pipelines under land without consent;
  • reforming the Highways Agency so that it is more independent of the government; and
  • 'planning changes to fast-track new developments'.

The last of these may be about changes to the permitted development and prior approval system. Naturally I'll be keeping an eye out for announcements relating to this bill and will be following it closely on its journey through Parliament.