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Bonuses At Top Despite Flagship Green Bank’s £6m Loss

The Scotland Herald

The Government’s flagship Green Investment Bank (GIB) made a net loss of £6.2 million before tax in its first 10-and-half months of doing business.

The first annual report of GIB, which opened its headquarters in Edinburgh in November 2012, also revealed the firm paid its part-time chairman Lord Smith of Kelvin £102,258 for the same period.

The 68-year-old former pupil of Allan Glen’s School in Glasgow will receive £120,000 for a full year at the bank.

The chief executive, Shaun Kingbury, who received pay including pension and benefits of £153,370 in his first five months, received a further incentive bonus of £52,000 to be paid in 2015, subject to shareholder approval.

The board awarded the company a score of 76% for its performance in meeting business objectives.

The report, which covers May 15, 2012, to March 31, 2013, said: “As would be expected, in this stage of our operations, the first period of financial results shows a loss as our capital has not yet been fully invested and is, therefore, not generating sufficient returns to cover our investment and operational costs.”

The bank has access to £3 billion of public money to invest in four priority sectors: offshore wind, energy efficiency, waste-to-energy, and waste recycling.

The report revealed the institution had invested £635m in low-carbon projects during its first year of operation, leveraging £1.6bn of private investment.

The largest single investments to March 2013 were the £125m made available to the Green Deal energy efficiency scheme and £100m to help Drax power plant convert to biomass.

Business Secretary Vince Cable said the bank had made a “positive start”, with every £1 so far invested leveraging another £3 of private investment.

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