Security is the building block of all energy policy

NB: this guest post is by Sophie Hirt, my Parliamentary Intern and the views expressed are her own.

Security is the key issue at the heart of the Government’s energy outlook and will impact on all the decisions made by the Department of Energy and Climate Change for the foreseeable future. Security, it must be pointed out, is not just meant in the traditional, physical sense, though of course, this is a top priority. Security in this sense must be taken to incorporate sustainability, affordability and efficiency.

The Coalition inherited a broken situation on energy from the previous Government. There was no coherent plan in place to ensure that future generations enjoy the same freedom to use electricity as we do, rendering the task ahead even more difficult.

Towards the end of the decade, demand will overtake supply – there will be a capacity gap that must be filled. In order to meet the rising electricity demand, the Government will need to spend £110 billion on infrastructure. In addition to this, the combination of methods of energy production must be decided upon.

Looking ahead, it is clear that new methods will have to be pursued. One third of coal generation will be lost by 2015 and most nuclear plants will close by 2023. Managing demand will require the Government to work in tandem with energy companies, in order to ensure both are working in the same direction. The Government has always had a rather strange relationship with energy companies – it needs them for energy production and supply but it also has a duty to regulate the industry and act on the behalf of consumers.

Among the anticipated spectrum of sources of energy will be solar, wind, geothermal, tidal, each to be pursued to a different extent. The Government must achieve the correct balance in order to maintain security and a plurality of recourses is thus necessary. An important aspect of Government policy will be local involvement and input into decisions. It is extremely important that sources of energy are not only appropriate to the local area but is also desired by the communities it affects.

It must not be assumed that there will no longer be a role for traditional sources of energy, particularly gas and oil. In fact, there may be a significant role for the use of gas as a capacity mechanism which will enable the UK to meet electricity demand, even when supplies fall short. The mechanism will be enabled by a permanent storage of energy kept back for use in exceptional times of demand.

Challenges ahead for the Department of Energy and Climate Change will be numerous. Such strategic changes to our energy supply will require delicate and at times very difficult manoeuvring around carbon reduction targets. Cost-benefit assessments will have to be made in order to achieve this much needed energy balance.

Schneier on Security: Portrait of the Modern Terrorist as an Idiot

Reflecting on the inadequacy of the debate over control orders, I found this snippet in draft, taken from Schneier on Security: Portrait of the Modern Terrorist as an Idiot:

The recently publicized terrorist plot to blow up John F. Kennedy International Airport, like so many of the terrorist plots over the past few years, is a study in alarmism and incompetence: on the part of the terrorists, our government and the press.

Terrorism is a real threat, and one that needs to be addressed by appropriate means. But allowing ourselves to be terrorized by wannabe terrorists and unrealistic plots — and worse, allowing our essential freedoms to be lost by using them as an excuse — is wrong.

I recommend the whole article.

The altruistic individual in society

In preparation for an article to be published in the Autumn, I just reread The Open Society and Its Enemies – Volume 1: The Spell of Plato. The book traces mankind’s opposition to change and the consequent rise of the myth of destiny, technically, historicism: the belief that history unfolds according to laws which can be discovered.

Popper argues that the strain of civilisation causes us to seek to return to a supposed harmonious state of nature, a heroic age of tribalism, rather than face the burden of personal responsibility. This is, he argues, what gives rise to totalitarianism.

In chapter 6, Totalitarian Justice, Popper presents an argument about the use of the words individualism and collectivism in combination with egoism (selfishness) and altruism. He explains that “individualism” is used in two senses: in opposition to collectivism and as a synonym for selfishness. But Popper explains that collectivism is not opposed to egoism: class egoism is a common thing. However, someone who is anti-collectivist — an individualist — can also be an altruist, one ready to make sacrifices for another individual.

Plato makes the mistake of thinking society faces a choice between collectivism or selfishness. In fact, altruistic individualism is possible, without individuals living constantly in a state of subjection and sacrifice for some group. In our time, as in Plato’s, this error provides a defence of collectivism which is unjustified.

Society is the cooperation of individuals. In my view, one great advantage of a society based on equality before the law, freedom, peace and property is that it can bear selfish individuals without harming the whole of society. More than that, perhaps such an order is the only one which exploits the selfish individual to the benefit of other people.

These are ideas to be developed another time. Meanwhile, I am struck that many contemporary complaints against individualism fall into Plato’s trap and that some of the deeper green ideologues seek a return to a long-lost harmonious state of nature. I wonder if they realise where their ideas may lead?

Razeen Sally, “Trade Policy, New Century”

This post originally appeared on cobdencentre.org.

Razeen Sally’s Trade Policy, New Century (PDF) succeeds magnificently in explaining the 21st-century case for free trade and, specifically, unilateral trade liberalisation to the interested, non-specialist reader.

From the IEA home page of the book:

The World Trade Organization (WTO) is failing to deliver the trade liberalisation desperately needed to bring prosperity to developing countries, according to a new study released today by the Institute of Economic Affairs. The WTO is hamstrung by a cumbersome negotiating model and the influence of vocal protectionist lobbies who oppose free markets. At the same time, increasingly popular regional ‘free-trade agreements’ often create as many barriers as they remove by erecting new obstacles to trade with countries outside the blocs concerned.

In the context of policy paralysis at the WTO, the author, LSE trade expert Dr Razeen Sally, argues that governments must take back the initiative from supranational institutions. The priority must be unilateral liberalisation – removing trade barriers to benefit domestic consumers rather than waiting for tortuous international negotiations to be resolved. Governments can also help maximise the benefits of free trade by liberalising their economies and strengthening key institutions.

But what is the imperative for the UK? Surely, European Union citizens enjoy free trade?

The EU is a customs union: we trade ostensibly freely within it, but, as can be seen from the EU’s TARIC database, we find ourselves behind a complex system of tariffs on, for example, wheat, notwithstanding the battle long since won by our inspiration, Richard Cobden, to repeal England’s Corn Laws in the general interest.

And this is the key point: free trade is in the general interest. We may make the political and economic arguments in detail, but the public good is our ultimate aim, and not just at home. Razeen Sally explains (pp179-180, emphasis mine):

Adam Smith fortified his presumption in favour of free trade with an explicit political argument. Protectionism is driven by ‘the clamorous importunity of partial interests’ who capture government and prevent it from having ‘an extensive view of the general good’. Free trade, in contrast, tilts the balance away from rent-seeking producer interests and towards the mass of consumers. It is part of a wider constitutional package to keep government limited, transparent and clean, enabling it to concentrate better on the public good.

As important to Smith and Hume was the moral case for free trade, centred on individual freedom. Individual choice is the engine of free trade, and of progressive commercial society more generally. It sparks what Hume called a ‘spirit of industry’; it results in much better life-chances, not just for the select few but for individuals in the broad mass of society who are able to lead more varied and interesting lives.

To sum up: free trade is of course associated with standard economic efficiency arguments. But the classical-liberal case for free trade is more rounded, taking in the moral imperative of individual freedom and linking it to prosperity. Finally, free trade contributes to, though it does not guarantee, peaceful international relations. Freedom, prosperity, security: this trinity lies at the heart of the case for free trade.

In a short article, I can scarcely do justice to this monograph’s insight in relation to the case for classic liberalism nor to its observations on emerging geopolitics: I heartily recommend the book.

Further reading

David Cameron and “The Death of Politics”

Via Suboptimal Planet, a commentary on Karl Hess’ 1969 Playboy article “The Death of Politics”, reproduced by mises.org:

At its limits, the libertarian ideal will no doubt face practical problems of its own. But it will be a long time before we need to worry that our government is too small, and our people too free.

While Hess was optimistic, writing:

A laissez-faire world would liberate men. And it is in that sort of liberation that the most profound revolution of all may be just beginning to stir. It will not happen overnight, just as the lamps of rationalism were not quickly lighted and have not yet burned brightly. But it will happen — because it must happen.

The author is less so, finding it “hard to see a path to Hess’s utopia” and suggesting we are heading in the other direction, but I see a path. No doubt the contemporary Conservative Party still contains many well-intentioned authoritarians, many interventionists, but David Cameron is clear that we are heading towards a “post-bureaucratic age” in which people have more authority over their own lives and more responsibility too.

His recent conference speech repays close reading. Consider for example:

Don’t they see? It is more government that got us into this mess.

Why is our economy broken? Not just because Labour wrongly thought they’d abolished boom and bust. But because government got too big, spent too much and doubled the national debt.

Why is our society broken? Because government got too big, did too much and undermined responsibility.

Why are our politics broken? Because government got too big, promised too much and pretended it had all the answers.

But this idea that for every problem there’s a government solution for every issue an initiative, for every situation a czar….

It ends with them making you register with the government to help out your child’s football team. With police officers punished for babysitting each other’s children. With laws so bureaucratic and complicated even their own Attorney General can’t obey them.

Do you know the worst thing about their big government? It’s not the cost, though that’s bad enough. It is the steady erosion of responsibility. Our task is to lead Britain in a completely different direction.

So, I am more optimistic. Look at Conservative Party policy today and you find a central commitment to opportunity, responsibility and security, to “freedom from” and the space to make your own way. As Cameron said:

In Britain today, there are entrepreneurs everywhere – they just don’t know it yet. Success stories everywhere – they just haven’t been written yet. We must be the people who release that potential.

Yes, we are subject to failed institutions and, yes, we do have a maze of bureaucracy and wrong-headed ideas to defeat and sweep away, but we can build a society of free and responsible people cooperating to achieve mutually-beneficial ends. David Cameron plans to do it: we should help.

Spy chiefs fear Chinese cyber attack – Times Online

INTELLIGENCE chiefs have warned that China may have gained the capability to shut down Britain by crippling its telecoms and utilities.

They have told ministers of their fears that equipment installed by Huawei, the Chinese telecoms giant, in BT’s new communications network could be used to halt critical services such as power, food and water supplies.

The warnings coincide with growing cyberwarfare attacks on Britain by foreign governments, particularly Russia and China.

via Spy chiefs fear Chinese cyber attack – Times Online .

Thousands of personal files stolen from RAF base

The Telegraph reports:

The details of up to 50,000 serving and ex-service personnel are at risk after three USB portable hard disc drives were stolen from an RAF station, the Ministry of Defence has admitted.

Also in The Times.

So that’s personal details of me, my wife and many of my friends in the hands of criminals. Surpassed by the child benefit fiasco, I am sure, but it won’t help people be glad to serve.

read more | digg story

EU plan: The rise and rise of the securocrats

The creation of an EU-US common security area by 2014 and “convergence” on surveillance and data gathering, redefining “home affairs” as a matter of EU internal security.

This story is reported at least by the Telegraph and the Guardian. The original leaked report is here.

To say the least, I am to be convinced that this is a good idea.

Telegraph | digg story

Guardian | digg story

Portrait of the Modern Terrorist as an Idiot

More from Schneier, a leader in cryptography and other areas of security:

Terrorism is a real threat, and one that needs to be addressed by appropriate means. But allowing ourselves to be terrorized by wannabe terrorists and unrealistic plots — and worse, allowing our essential freedoms to be lost by using them as an excuse — is wrong.

read more | digg story

Are photographers really a threat?

Leading security expert Bruce Schneier writes in the Guardian:

Since 9/11, there has been an increasing war on photography. Photographers have been harassed, questioned, detained, arrested or worse, and declared to be unwelcome. We’ve been repeatedly told to watch out for photographers, especially suspicious ones. Clearly any terrorist is going to first photograph his target, so vigilance is required…

Full article, with links here.

A PDF on UK photographers’ rights is here.

read more | digg story