Evening Standard comment: Hinkley Point is still a bad deal for taxpayers

The Prime Minister’s decision to approve the Hinkley Point nuclear power station, after calling in the proposal at the last minute for further consideration, has the enthusiastic approval of the unions, who like the jobs, and the project’s foreign partners — the French, whose EDF will fund two-thirds of the cost, and the Chinese, who will fund the rest on the understanding that they will be allowed to build another plant at Bradwell, Essex.

Yet the case against Hinkley remains strong and is not, on the face of it, addressed by the safeguards which the Government is inserting into future nuclear contracts. First, there is the cost — the Government says Hinkley would cost the taxpayer £6 billion; the National Audit office says this figure should realistically be £30 billion. It also produces expensive electricity: £90 or more per megawatt-hour compared with €60 from a plant in Flamanville, north-west France, using the same technology.

And, vastly expensive as this sounds, the price is likely to rise. The only other two plants of this design are being built in Finland and Flamanville and both are years late and hugely over budget. It is therefore a big gamble on something that has not been seen to work.

There is also the issue of security: George Osborne’s promise to the Chinese that they would be given carte blanche at Bradwell to construct a plant to Chinese design with Chinese labour and no UK involvement is, to put it mildly, controversial. We shall see whether the Government’s new safeguards will change that. Of course no one wishes to suggest that the Chinese are not welcome investors in our infrastructure — we need their friendship — but this was unduly trusting.

Mrs May plainly felt that reliance on newer, cleaner technology, including carbon capture, battery storage of energy generated renewably and individual energy generation, is not enough on its own to keep the nation’s lights on, but she could have used this useful opportunity to get far better value for the taxpayer.

On the plus side, she has — at an enormous price — earned the goodwill of the French president. If he is still in office come the Brexit negotiations, that goodwill should be useful. If not, let’s hope his successor feels the same.

It's good news that the BBC has, as part of its Charter Review, promised to lower the cap on “golden goodbyes” handed to senior executives, which last year cost it £10 million. The payments are currently capped at £150,000 a year; they will now be a little under £100,000. There has been a good deal of public indignation at lavish handouts to senior executives, sometimes after a short time in the job.

We shall, moreover, learn what BBC staff, including its presenters, are paid — at least those earning £150,000 a year or more. And we have a right to know; we pay for them after all. This move towards transparency is welcome, and overdue.

Tonight, to mark the start of London Fashion Week, which begins in earnest tomorrow, the Prime Minister hosts a reception in Downing Street for industry bigwigs and apprentices. This is always an important week for the industry but it has taken on added significance after the vote to leave the EU. This will, it seems, be the most international fashion week to date. Not only does the fashion industry contribute £28 billion a year to the economy, it can be an important means by which Britain presents a confident, modern face to the rest of the world — we need that now more than ever.