1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

British people are coughing up £24bn to help big oil.

Discussion in 'News from the UK, Europe and the rest of the World' started by KeithAngel, Jan 25, 2019.

  1. KeithAngel
    Offline

    KeithAngel 2063 Lifetime Member

    "The “free market” is a creed that stirs up near religious devotion among its believers. It is in fact a con, a myth, a great deception. Take the latest striking example: according to the National Audit Office, British taxpayers are expected to cough up £24bn for tax relief given to oil and gas corporations, for the removal of North Sea wells, rigs and pipelines. Better start saving up, because if the companies suddenly go under, that bill will only increase. Indeed, some companies have already defaulted on the costs of decommissioning, leaving you and I to pay millions of pounds."

    https://www.theguardian.com/commentisfree/2019/jan/25/socialism-rich-oil-gas-capitalism
  2. Drunken Max
    Offline

    Drunken Max Well-Known Member Trusted Member

    If you read the article its total nonsense. Companies only pay tax on profits, this decommissioning is a cost so is lost profit. Hence it is not taxed. That accounts for over half of the tax "loss". There is no actual cost to the taxpayer, just a loss of revenue. Moreover, the money that is spent on suppliers who perform the decommissioning will pay tax on the profits they now receive as a result of this exercise. Additionally, it being a labour intensive process will mean that there will be increased employment and income taxes paid ( not something that happens much with actual oil production ). There's a good chance that the tax not paid by the oil companies on production profits will now be recouped plus extra by the profits paid by the decommissioning companies PLUS the extra labour taxation. The final nail in the coffin is that the costs have been pegged at £53 billion. Assuming this was ALL profit then it would not equate to £24 billion in lost taxes. Additionally, this cost will be spread over at least 20 years. Usual Owen Jones economic illiteracy
    • Like Like x 4
  3. Aromulus
    Offline

    Aromulus The Don Staff Member

    That figures... Some people to take things at face value without proper research.
    Thanks for that very eloquent and easy digestible explanation.
    :)
  4. Markham
    Online

    Markham Guest

    Thank you Max for an easily understandable counter to Owenomics.

    Can we have a ban on messages that consist solely of published extracts of material published elsewhere. It's sheer laziness on the part of the poster not to post his original thoughts and views backed-up by what he has read; but I accept that this would be an impossible ask for some here o_O.
  5. Dave_E
    Offline

    Dave_E Well-Known Member Trusted Member

    I suspect that Keith was merely posting it to highlight the stunning stupidity of Owen Jones. ;)
    • Funny Funny x 2
  6. Drunken Max
    Offline

    Drunken Max Well-Known Member Trusted Member

    I love Owen Jones passion and the abuse he gets from Brexiters in the street is disgusting. Sometimes ... quite often actually, he sees things in isolation. He's not alone and its an issue on all sides of the political divides. I am sure that there are right wing opinions that think we can leave the rigs to rot and become sea sanctuaries... once the oil and chemicals inside have stopped killing the fish and fauna.

    edited spulling erras
    • Like Like x 1
  7. KeithAngel
    Offline

    KeithAngel 2063 Lifetime Member

Share This Page