Letter: Balance sheet all on the debit side as 30,000 British miners see their jobs destroyed
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Sir: While there has been some public debate about the implications for jobs of running down the coal industry and the rise of gas-
fired power generation, the medium-term impact on the balance of payments has been given no consideration.
At current rates of gas production and, assuming a continuation of recent additions to gas reserves through successful exploration, Britain's gas reserves will last only another 10 years. All gas will then have to be imported. The cost of importing gas (at today's prices) will rise from around pounds 700m this year to pounds 10bn a year in 2002 (following full build-up of gas-fired power generation).
The implications for the balance of payments are so serious that public debate is long overdue. Until recently the Treasury was able to take the view that the balance of payments need not be of central concern to economic policy. This is no longer the case. The recent devaluation of sterling will, by itself, be insufficient to close the present balance of trade deficit over the medium term. An additional pounds 10bn a year deficit will be insurmountable.
Yours sincerely,
VIVIAN WOODWARD
European Industrial Forecasting
London, EC1
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments