Purchase of carbon credits 'a failure of vision'

Frank O’Neill of Ernst & Young has said the likely purchase of carbon credits at significant cost to the exchequer to meet our Kyoto obligations is "a failure of vision in dealing with this issue".

Mr O'Neill said: "Tax incentives in areas of renewable wind, tidal and solar energy would encourage and attract investment in these areas and in the medium to long term reduce the financial cost to the nation."

"If we are concerned with renewable and green industries, the BES cap for investment in these areas need to be removed.

"Yet another missed opportunity in this conservative budget."