Oral Answers to Questions

Jack Straw Excerpts

Wednesday 15th January 2014 Commons Chamber

[The Prime Minister]

I have managed to catch only a small amount of that programme, but I think that it brings home two vital points: first, we need a welfare system that is tailored to ensure that work always pays; and secondly, many people in our country have multiple disadvantages and problems and so need help to get out of poverty and benefit dependency. So it is not just about tailoring a benefit system to make work pay; it is about making sure that we intervene in people’s lives and try to correct the things that are keeping them out of work and out of earning a decent living.

[Mr Jack Straw (Blackburn) (Lab)]

May I say to the Prime Minister, as someone who strongly supports shale gas extraction by fracking, that his current package, however well intentioned, will not assuage local communities, which on a cross-party basis in Lancashire have treated his latest offers as near derisory? Why can he and the Chancellor not sit down with the cross-party Local Government Association and negotiate on its proposal for 10% of revenues to be shared with local communities, as happens in other countries?

[The Prime Minister]

I thought that the proposal from some Members was that it should be 10% of profits. My point is that 1% of revenues, which obviously start running the moment shale gas starts coming out of the ground, could well be a better offer. I am very happy to sit down with anybody to discuss the issue, because I think that shale is so important for the future of our country. The point I would make, having been on Monday to see the oil platforms that are already on the Nottinghamshire-Lincolnshire border, is that those went ahead without any of the sorts of community benefits that we are promising with shale: £100,000 when a well is dug, before any gas has reached the surface; 1% of revenues, which could be between £7 million and £10 million for a typical fracking well; and 100% retention of business rates, which for a set of wells could be £1.7 million, or even £2 million, for a local authority. Hon. Members should think about how much council tax a small district or metropolitan authority raises and consider the difference that £1.7 million or £2 million in revenue could make. By all means let us talk about the facts and figures and what we can do, but we also need to persuade people that this can go ahead without the environmental damage or the problems that people are worried about. Those are the concerns more than anything.