Wasteful Spending Must be Cut in Wake of Coronavirus

Now that Ireland is entering a period of extended lockdown, which the people are complying with, people are asking what will the future hold.  Money will of course be tight in the future,  so wasteful spending will need to be curtailed.

The virus will simply not go away post lockdown but will be around in our environment for some considerable period of time. Quite considerable sums will have to be spent recalibrating the health service. In this context we have the European Investment Bank, the Commission's Bank, providing €530 million to fund the Celtic Interconnector to France:

https://www.dccae.gov.ie/en-ie/news-and-media/press-releases/Pages/Press-Release-Government-Secures-%E2%82%AC530m-EU-grant-for-Celtic-Interconnector.aspx   

We already have so much wind on the Irish grid, that huge surges occur whenever a low pressure system passes through. Not only are conventional plants being curtailed, but so to are the two Waste to Energy plants in Ireland, 50% of whose electrical output is renewable as that is the fraction of biomass in the incoming municipal waste. Their furnaces have to be maintained at a minimum of 850 C, to combust the incoming waste, so the steam is diverted away from the generators and into the cooling system. in 2018 these two plants curtailed the equivalent renewable electricity of 1.5 times what the Dart used that year, dumping instead the energy (in the case of Dublin Waste to Energy into Dublin Bay). As we know the whole programme is a mess.

If we consider the East West Interconnector built a few years ago from Malahide in Dublin to North Wales, this was a completely uneconomic project, as the Irish Academy of Engineers pointed out several times, neither was there any justification other than to facilitate more wind energy. Hence no commercial bank would have provided the funding. The EIB stepped in with a €300 million loan, the EU Commission gave direct funding of €100 and suddenly the €600 million project was viable. The UK paid not a penny for the infrastructure and our network charges on our electricity bill, which is around 30% of it, went up by about 5% to pay these loans back. We don't have those hundreds of millions to be just wasted in this manner in the months ahead, there is after all resonance in that we need ventilators not wind turbines. 


The millions to be spent on the North south Interconnector now also looks questionable. What of the billions being spent every year on NGOs ? In the wake of the coronavirus pandemic, difficult financial decisions will have to be made to ensure essential services such as health and social welfare are maintained. Priorities will have to change.