Oil and gas companies have in recent days announced a huge rise in profits. Frankly I think the level of their profits, £6.7billion first half profits from BP and £4 billion three month profits from Shell, is obscene particuarly at this time of rising food and fuel prices. We need money to invest in making our society more efficient, renewable, green, fair and healthy and so why the Government have not put a windfall tax on the profits of oil and gas companies beats me. A windfall profits tax is certainly part of Green economic plans, including some detailed and ongoing work on a 'Green New Deal', to tackle the credit crunch, soaring oil price and the climate crisis. Its poor leadership for the Government not to take this step.
Thursday, July 31, 2008
Windfall tax the massive profits of oil and gas companies - part of a 'Green New Deal' to tackle the credit crunch, oil price hike and climate crisis
Oil and gas companies have in recent days announced a huge rise in profits. Frankly I think the level of their profits, £6.7billion first half profits from BP and £4 billion three month profits from Shell, is obscene particuarly at this time of rising food and fuel prices. We need money to invest in making our society more efficient, renewable, green, fair and healthy and so why the Government have not put a windfall tax on the profits of oil and gas companies beats me. A windfall profits tax is certainly part of Green economic plans, including some detailed and ongoing work on a 'Green New Deal', to tackle the credit crunch, soaring oil price and the climate crisis. Its poor leadership for the Government not to take this step.
Labels:
being green,
climate change,
economics,
energy,
leadership,
profit,
sustainable
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Not all Greens are in favour of the windfall tax notion, these two for a start:
ReplyDeletehttp://barkingside21.blogspot.com/2008/08/whose-windfall.html
http://www.adopteddomain.com/blog/2008/8/1/windfall-taxes-wont-work.html
It would be a surprise if all Greens were. However, I certainly am. Caroline Lucas MEP, likely to become the Green Party's new leader in Sept is also in favour I think.
ReplyDeleteIn terms of the debate though, the reasons advanced against a windfall tax seem pretty convincing to me.
ReplyDeleteDo you not think that all of us will just end up paying more for our fuel, because the cost of the tax would simply be passed on to us?
Do you not think that investors in energy infrastructure (including renewables) would be put off investing in the UK?
No doubt there are pros and cons to using windfall taxation. Its only one part of the tax (and other economic) changes I'd like to see happen and far from the most radical since even the Brown govt seems to be seriously comnsidering it.
ReplyDeleteWe are all going to be paying more for our fuel from finite supplies anyway - money fom windfall taxation could be used to reduce our dependence on fossil fuels and make us more efficient, protecting us from price rises somewhat as well as effectively cutting carbon emissions.
There are many factors which influence energy investors and I think a windfall tax on excessive oil/gas co. profits is far from being a big influence. Income from windfall taxation could be one part of a package ('Green New Deal') which is used to encourage investment in renewable energy.