North Sea Oil and Gas Producers: Investment Allowances

Lord Bishop of St Albans Excerpts

Tuesday 7th June 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, that is something which we will judge as we get to it, but I reassure the noble Viscount that there will be a sunset clause in the legislation to ensure that that judgment cannot go on indefinitely.

[The Lord Bishop of St Albans]

My Lords, will the Government, first, reveal the calculations they have made on why we are giving these subsidies, rather than putting the money into renewables? This has come at a time when we have seen massive increases in gas imports. Indeed, if we had done this some years ago, and been able to move and shift much more quickly, we would not be in half the mess we are in now. What is the basis on which the Government are deciding to subsidise the oil, rather than putting this extra financial incentive into renewables?

[Baroness Penn (Con)]

As I have explained to the House, this is not a subsidy, but an investment allowance which is part of an additional levy on oil and gas producers. Therefore, they receive the investment relief attached to it. As I have said to the House—and I am really happy to say it again—we are absolutely committed to increasing renewable energy in this country. We agree that it is cheap and clean, and an essential part of our path towards net zero.