Thursday 3 February 2011

Bank on confusion

Business Secretary Vince Cable yesterday announced that he hoped there would be “a concrete model” for the Green Investment Bank set in place by May of this year, but couldn't elaborate on how concrete it would be.

Answering to the Environmental Audit Committee, who were showing concerns over a lack of direction, Mr Cable said: “My ambition is to develop the Green Investment Bank so that it is transparent and affordable. I hope it will deliver a range of financial products into the market.”

When asked by the Committee whether or not the Green Investment Bank would be able to raise its own finance the Business Secretary responded: “It would start on a modest scale, to establish itself, but it could develop into quite a substantial fund.”

Over the question of nuclear, Mr Cable wasn't particular clear over its role in the Bank: “We don't rule out nuclear, but we don't envisage nuclear having subsidy.”

Some members on the Committee showed anxiety over the timescale of the roll out, with the scheme potentially going online as late as 2014. Mr Cable added: “It's an evolutionary process, what's important is that it gets off the ground. In the long term it will be a major institution.”