How Much Will Brexit Add to the Cost of Trident and Hinkley Point?

The spectacular and continuing fall in the value of the pound will add over £50 billion to the cost of Trident. Yes, bits of steel are being welded together in the UK, but the steel is imported and so is the missile technology.

Similarly, Hinkley Point will be in trouble. The Chinese and French are to build it against guarantees of income from future energy prices fixed at double the cost of current wholesale electricity. But the hard currency value of that income has now been slashed. I do not know the precise details of the contracts, but the French and Chinese not being stupid, my guess is that their income from it is set in a proper stable currency not in sterling. Which means that electricity prices to the British consumer will have to not just double as planned, but go up 50% again, to cover the diminished value of sterling.

Of course, it would be wonderful if all this led to both Trident and Hinkley Point being cancelled, but sadly politicians are wed to nuclear projects, both civil and military, as both symbol and source of vast central power for them and their paymasters. But the implications of paying for them with Mickey Mouse currency are going to bite the Tory loons hard in coming months.

Facebooktwittergoogle_plusredditpinterestlinkedinmail
This entry was posted in General. Bookmark the permalink.
  • Jul 18, 2016 The European Union: Part of America’s Imperial Project

    The British people’s decision to leave the European Union shocked the political establishment across Europe and around the globe. Now, Professor Michel Chossudovsky exposes the EU as the imperial project that it always was, and the growing movement against EU domination as an anti-imperial movement of world historical importance.

    https://youtu.be/XOTfy8gzC3U

  • Jul 25, 2016 Gerry Adams says Brexit could lead to Northern Ireland leaving the UK

    In the hours after the Brexit result was announced, anti-Brexit politicians in Belfast vowed to fight it. The majority of people in Northern Ireland had voted to remain in the European Union, in contrast with the rest of the United Kingdom.

    https://youtu.be/g-6gq2jlEJI