North Sea Oil and Gas Producers: Investment Allowances Debate
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Clive Efford
Main Page: Clive Efford (Labour - Eltham and Chislehurst)Department Debates - View all Clive Efford's debates with the HM Treasury
North Sea Oil and Gas Producers: Investment Allowances
Clive Efford Excerpts(2 years, 6 months ago)
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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.
Clive Efford (Eltham) (Lab)
I welcome the fact that the Government have adopted Labour’s policy and introduced a windfall tax on these profits. They have had to be dragged kicking and screaming—[Interruption.] I am sorry; should I give way to the Minister for Energy, Clean Growth and Climate Change?
Hon. Members
Mr Speaker
Hang on a minute. I think I will decide. Carry on, Clive. Come on! You look like a person who never heckles himself.
Clive Efford (Eltham) (Lab)
I am the soul of discretion, Mr Speaker. I feel wounded—deeply wounded!
As I was saying, the Government have had to be dragged kicking and screaming to accept a policy that they previously described as unnecessary and undeliverable. However, I fail to see how it is an efficient use of taxpayers’ money, given that it will incentivise the companies to offset the tax. Would it not have been better to invest the money in insulating homes and ensuring that people’s bills were brought down on a more permanent basis? Would that not have been a much more effective policy?
Lucy Frazer
The hon. Member will know, because I have said it this afternoon, that according to our estimate we will be receiving £5 billion from the oil and gas sector. Given that he mentioned insulation, he may be interested to learn that the Government have committed £3 billion over this Parliament to installing energy-efficiency measures in up to 500,000 homes, saving low-income households hundreds of pounds a year on their bills.