(Ealing North)
(Lab/Co-op): We know that oil producers such as BP
and Shell reported
bumper profits in the first quarter of 2022. As drafted, however,
the Government’s Bill ignores those profits entirely, as their
levy will not apply until well into the second quarter of this
calendar year. I realise that the Financial Secretary has said
that she will not support our new clause and that the current
Chancellor, a former oil industry executive, is unlikely to
change his mind after coming out so firmly against a windfall tax
on oil and gas producers back in January, on the grounds that
those producers were “already struggling.” But given the
situation in the Conservative party, I wonder whether colleagues
of the Minister may feel able to think more openly about how to
vote. I wonder whether any of the other Conservative leadership
candidates may like to support our plan for an immediate, fully
funded tax cut to help people with the cost of living and tackle
inflation. Later this evening, when we vote on new clause 3, we
will find out what judgment they have made...
(Brighton, Pavilion)
(Green):...I was talking about the investment allowance and just
how egregious it is. The Institute for Fiscal Studies says that
investing £100 in the North sea now will cost companies just
£8.75, with the public picking up the remaining investment costs
in the form of the forgone windfall tax. What is more, there is a
chance that this new subsidy could lead to the development of
otherwise economically unviable projects, becoming stranded
assets of little or no economic value. Oil and gas companies are
benefiting from that right now. For example, according to
analysis by Rystad Energy, Shell
which recorded quarterly profits of over £7 billion earlier this
year, will pay £210 million less in windfall tax for investment
in the newly approved Jackdaw gas field...
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