Draft Onshore Hydraulic Fracturing (Protected Areas) Regulations 2015

Kevin Hollinrake Excerpts

Tuesday 27th October 2015 General Committees

[Graham Jones]

You don’t have them? There are test wells and test pads very nearby on the Fylde coast. Licences have just been issued for that area, and Lancashire MPs are deeply concerned.

Finally, on my constituents’ concern and on the policy being the wrong way round, the beginning of the impact assessment mentions a new tax regime. I am delighted to oppose the Government’s plans for fracking in Lancashire so long as they are accompanied by an insulting 1% retention rate for local authorities while the Treasury collects 60% should gas flow from the wells. The Treasury is taking a huge amount of money that my constituents, and constituents across Lancashire, think is just going to be spent on Crossrail 2 or some other London or south-east project. It is outrageous that the Bowland basin should be so used. The Minister talks about a new tax regime, but that new tax regime is an insult to the people of Lancashire.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

The hon. Gentleman may be confusing two different figures. The 1% figure is based on revenue, but the 60% figure is taxation on profits.

[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.