Tax increase could kill renewable energy investment
July 6, 2012 3 Comments
A group of international investors have contacted Spanish prime minister Mariano Rajoy to urge him to reconsider raising taxes on renewable energy.
The group sent a letter to the PM saying that any rise in tax could “put the whole industry at risk of insolvency. Moreover, it will send yet another warning to foreign investors that Spain is no longer a safe place to invest”.
The letter went on to say that should the increase be implemented the investors reserved the right to take action against Spain under Spanish and European law, and the Energy Charter Treaty, which is designed to protect foreign energy investors.
A letter was also sent to UK Prime Minister David Cameron suggesting that if the change is made it “will probably have a detrimental effect on the UK meeting its low carbon and renewable energy targets, as if made these changes will irreparably damage investor confidence in European regulatory stability.”
What rubbish! Who cares what effect if has on the UK? This is a Spanish tax to raise Spanish money for Spanish residents – the UK can do what they like with their renewable energy. What a bad idea the EU was. No country has any right to tell another what to do, how to treat it’s people or anything else.
This is all about some rich investors somewhere who care little about the poverty being inflicted on people by their greed. This is the problem across the planet – those with money control it all. I personally couldn’t care less about some rich investor losing a little bit of money (or a big one losing a lot). The tax increase is needed to fix the country and make it better for the Spanish, not for some investor who doesn’t even live here. I understand the need for investment in the country but it should be on Spain’s terms, not the investors.
At the end of the day, if Rajoy implements the increase it will raise more money for Spain strengthening the economy and contributing to growth – then the investors will come running. Where else will they go with their wind farms? The North Sea? It costs twice as much to rig a wind turbine in the open ocean as it does to place it on land. So call their bluff, Rajoy. They will still come here even with the increase, they are just trying to save a few quid.