Graham P Jones
Main Page: Graham P Jones (Labour - Hyndburn)(10 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Michael Fallon
Yes, it is important that the benefits of shale gas exploration should not just go to the economy more widely, or to the companies doing the exploration or, indeed, wholly to the Chancellor of the Exchequer. It is important that local people and local communities share in those benefits as well.
Graham Jones (Hyndburn) (Lab)
The Prime Minister has said the Government are going all out for shale, but the Treasury is taking a whopping 62% while offering a minuscule offer with business rates. The Minister’s Department will have received a letter last week from Lancashire MPs—united, cross-party—and Labour-controlled Lancashire county council opposing the business rates offer. I think he received comments from Members on his own side, too—from the hon. Member for Wyre and Preston North (Mr Wallace) saying it is “pathetic and insulting” and from the hon. Member for Lancaster and Fleetwood (Eric Ollerenshaw), who said it is simply not enough. When is the Minister going to address this issue of fairness?
Michael Fallon
We will, of course, reply to the letter from the hon. Gentleman and his colleagues from Lancashire. However, the decision to give local authorities 100% business rate retention could mean up to £1.75 million a year per well site, and the decision to allocate 1% of the revenues to local communities could mean up to £10 million for a well site. These are formidable sums, and I think it is right that local communities share in any of the benefits that arise from shale.