North East could become 'green' under Government plans

Apr 9 2009 by William Green, The Journal

THE North East could host a “green city” under a Government drive to make Britain a world leader in electric vehicles.

Chancellor Alistair Darling is expected to use his Budget this month to announce that electric car trials in two or three cities will be launched next year.

Councils will be invited to bid to become Britain’s first “green cities” – and Newcastle and Sunderland could be contenders as the region is already a leader in environmentally-friendly technology.

And The Journal understands the Government will announce grants of up to £2,000 for people who buy electric vehicles.

Nissan has just won approval for a £380m loan from the European Investment Bank to develop green cars, which will boost its Washington plant.

And Washington-based Smith Electric Vehicles is a leading manufacturer of zero emission vans and trucks – and is working with Ford.

Development agency One North East has launched a £30m bid to make the region a global electric car hub and plan to install charging points at homes, businesses and public buildings. It is also working with Nissan.

In a further boost, Gordon Brown yesterday said the Government is ready to provide incentives to help the car industry become a world leader for electric and hybrid vehicles. He is also considering buying a fleet of electric vehicles for ministers as an example, while the Government will discuss a national network of roadside charging points with energy companies.

Senior CBI member Hugh Morgan Williams, chairman of the Washington-based Canford Group, said: “There is a good base for this technology existing in the region and therefore the North East could do quite well out of the electric car push.”

A spokesman for Newcastle City Council said: “Environmental sustainability is one of the most important priorities for Newcastle.”

The Prime Minister also yesterday confirmed the Government was considering a “scrappage” scheme under which motorists would get up to £2,000 for trading in a polluting older car for a greener new vehicle – a measure backed by Nissan.

But, more controversially, planning rules could be eased to allow more wind farms to be built as part of the Government’s drive to a green economy.