North Sea Oil and Gas Producers: Investment Allowances Debate
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Caroline Lucas
Main Page: Caroline Lucas (Green Party - Brighton, Pavilion)Department Debates - View all Caroline Lucas's debates with the HM Treasury
North Sea Oil and Gas Producers: Investment Allowances
Caroline Lucas Excerpts(1 year, 10 months ago)
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Lucy Frazer
With the greatest respect, I think that the hon. Member misunderstands the policy. What we are introducing is a significant tax on the oil and gas sector that will fund the most vulnerable, so it is the firms handing money over, as he puts it, to us. We have said that we recognise that companies should invest, because it is good for jobs, good for investment, good for our competitive industries and good for our energy security for the future. We have recognised that we will give tax reliefs if that investment is made.
Caroline Lucas (Brighton, Pavilion) (Green)
Just six short months ago, the UK hosted COP26, and it remains its president—not that we would know that from this appalling policy from this Government. The Glasgow climate pact, which the UK signed, commits to the
“phase-out of inefficient fossil fuel subsidies”,
so can the Financial Secretary explain on what grounds handing an 80% tax break to the dirty, dangerous and outdated energy of the past could possibly be considered efficient, especially when new fossil fuel production will do nothing to help with energy security or affordability? It will simply be sold at global prices on international markets. How is that climate leadership?
Lucy Frazer
The hon. Lady will know that we need to ensure energy security. At the moment, oil and gas account for 50% of our domestic energy. It is important that we transition, but that we transition safely, as well as securing domestic energy security.
The hon. Lady makes a very important point about our leadership at COP. We led the world. We were the first country to introduce net zero targets; many others followed. The Chancellor set out packages to ensure private sector investment and Government support for transitioning, and that is what this Government are doing.