Extracts from Lords debate on the economy and the growth plan: Shell - Oct 10

Baroness Smith of Basildon (Lab):...It is an expensive package, funded by borrowing, so I fail to understand why—despite Labour’s pleas and some from the Government’s own side as well, and the welcome intervention of Shell’s CEO—the Prime Minister and the Chancellor are so set against taxing the billions of pounds in excess profits, preferring instead costly extra borrowing. It does not make economic sense. The mini-Budget damaged both the economy and confidence in the Government...

Lord Vaux of Harrowden (CB):...The same is true for gas. The cost of production has not changed, yet the gas companies are exploiting the situation and making profits, to the point where even they are embarrassed. British Gas is already giving 10% back, while Shell says, “Give us a windfall tax.” Mr Putin must be delighted...

Lord Sikka (Lab):...My Lords, the net impact of the windfall tax the Minister referred to is only 2% of the earnings before interest, tax, depreciation and amortisation of BP’s profits and only 1.5% of Shell’s. It excludes profits made in the forecourts, from refineries and by trading, which is the biggest source of profits for oil and gas companies. Surely that tax was just a joke and a sop, because a large amount of it is then handed back through accelerated investment allowance...

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