Draft Onshore Hydraulic Fracturing (Protected Areas) Regulations 2015
Debate between Graham P Jones and Michael Fabricant(8 years, 6 months ago)
General CommitteesRead Full debate Read Hansard Text
Graham Jones
The hon. Gentleman has a point, but he will find that, when the gas finally flows, it will be nearly all profit because the capital investment will be at the beginning and there will be minimal capital investment as we go along. Year on year, the balance sheet will essentially show profits. He is not wrong, but if he looks at how it will play out, there is huge disparity and there will not be much closing of the gap between the 1% that Lancashire gets and the 60% that will be given to the Chancellor.
Michael Fabricant
I think the hon. Gentleman is genuinely confused. The revenue is the actual total sales. He is comparing capital with revenue. The revenue is the sales, and the profit is the profit. As he will know, profit on the pump at petrol stations is a tiny proportion of total sales. His assumption is therefore wrong.
Graham Jones
That is not what the Treasury has set out. It is following the broad financial framework for the oil and gas industry in Scotland. I know that other Members want to speak, but it is not fair that the constituents of Lancashire will be ripped off again. There are environmental concerns, but I am happy to oppose the regulations because the offer in the impact assessment is simply not good enough.