Oil and Gas Windfall Tax Debate
Full Debate: Read Full DebateDepartment: Department for Energy Security & Net Zero
Lord Teverson
Main Page: Lord Teverson (Liberal Democrat - Life peer)Department Debates - View all Lord Teverson's debates with the Department for Energy Security & Net Zero
Oil and Gas Windfall Tax
Lord Teverson Excerpts(9 months, 3 weeks ago)
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Lord Callanan (Con)
No, I would not agree with the noble Lord, I am afraid; he is absolutely dead wrong. Even with any new licences that might be issued in the UK, UK production will continue to decline at the rate of about 7% a year. It is estimated that global production decline needs to be about 3% to 4% in order to ensure the net-zero transition, so we will be declining at a faster rate than what is required globally.
Lord Teverson (LD)
My Lords, the windfall tax that the Minister mentions taxes profits but also gives a substantial kickback on investment. On renewables, the levy is against revenue and there is no such kickback. When will the Department for Energy Security and Net Zero stop discriminating against renewables?
Lord Callanan (Con)
My Lords, what the noble Lord refers to as a “kickback” is actually an investment allowance. If I am right, the same noble Lord was asking me about reducing flaring and about introducing electrification of fields. It is those investment allowances that pay for the very policies that he asked me to introduce.