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Thread: Subsidies for the Oil Industry.

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  1. #1
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    Default Subsidies for the Oil Industry.

    George Osborne gave the oil industry further subsidies in the budget to keep them afloat. I thought Maggie was against propping up failing industries?

    Is the oil industry in danger of enjoying subsidy creep year -on-year only to have it taken away in the future like with the coal industry without a proper transition plan to adopt wholescale renewables?
    God, grant me the serenity to accept the things I cannot change,
    Courage to change the things I can,
    And wisdom to know the difference.

  2. #2
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    Quote Originally Posted by Rheghead View Post
    George Osborne gave the oil industry further subsidies in the budget to keep them afloat. I thought Maggie was against propping up failing industries?

    Is the oil industry in danger of enjoying subsidy creep year -on-year only to have it taken away in the future like with the coal industry without a proper transition plan to adopt wholescale renewables?
    Have you not realised the multi faced side of the tories can change without a grimace, an appeasement to the SNP possibly or a bit of creeping/bribing to the Scottish electorate maybe who knows. But do not be fooled.
    Hating people because of their colour is wrong. And it doesn't matter which colour does the hating. It's just plain wrong.
    Muhammad Ali

  3. #3
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    I thought it was Sturgeon begging Osborne?
    So no wonder Osborne said:
    "We are only able to provide this kind of support to our oil and gas industry because of the broad shoulders of the United Kingdom.None of this support would have been remotely affordable if, in just eight days’ time, Scotland had broken away from the rest of the UK, as the nationalists wanted.Their own audit of Scotland’s public finances confirms they would have struggled from the start with a fiscal crisis under the burden of the highest budget deficit in the western world.Thankfully, the Scottish people decided that we are better together in one United Kingdom"
    "Genius may have its limitations, but stupidity is not thus handicapped."

  4. #4
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    Quote Originally Posted by bekisman View Post
    I thought it was Sturgeon begging Osborne?
    So no wonder Osborne said:
    "We are only able to provide this kind of support to our oil and gas industry because of the broad shoulders of the United Kingdom.None of this support would have been remotely affordable if, in just eight days’ time, Scotland had broken away from the rest of the UK, as the nationalists wanted.Their own audit of Scotland’s public finances confirms they would have struggled from the start with a fiscal crisis under the burden of the highest budget deficit in the western world.Thankfully, the Scottish people decided that we are better together in one United Kingdom"
    The dent to the Scottish economy because of oil prices only amounts to 1%. That is why the Green Party boldly saw that Scotland will greatly benefit through investment in renewables....and still does.

    I thought Margaret Thatcher was abhorrent to subsidising uncompetative industries?
    God, grant me the serenity to accept the things I cannot change,
    Courage to change the things I can,
    And wisdom to know the difference.

  5. #5
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    A report is out on the subsidies given to the oil industry by the UK government. As a Green I am against boosting oil production for no gain in tax revenue. However, it may go some way to explain how Norway is able to balance the books but the UK government is not if it is prepared to give away tax breaks for the oil industry with a similar amount of production. Is the oil being mismanaged?

    The UK does not have a spending
    problem, it has a revenue problem.
    There is a lack of political will to
    collect the taxes that should be paid
    by large corporations to support the
    general welfare and a brighter future
    for all UK residents and businesses.
    While
    the UK government continues to
    push austerity measures and cuts to
    essential services, it is estimated that
    nearly £120 billion in potential tax
    revenue
    was not collected in 2014.

    This amount was larger than the
    entire UK NHS budget.
    http://static1.squarespace.com/stati...13+Low+Res.pdf
    Last edited by Rheghead; 26-Mar-17 at 17:08.
    God, grant me the serenity to accept the things I cannot change,
    Courage to change the things I can,
    And wisdom to know the difference.

  6. #6
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    Quote Originally Posted by Rheghead View Post
    A report is out on the subsidies given to the oil industry by the UK government.
    There's a big difference between a subsidy and a taxation policy. With a subsidy, money is GIVEN to an industry from government, with a tax incentive the government TAKES less. There's a big difference.

    Quote Originally Posted by Rheghead View Post
    As a Green I am against boosting oil production for no gain in tax revenue.
    I wouldn't disagree with that stance. But as well as tax revenue the oil fields keep thousands of people in work. If the companies pull out to work in cheaper areas of the world then these jobs may be lost. There's more to this debate than direct taxation of the oil companies.

    Quote Originally Posted by Rheghead View Post
    However, it may go some way to explain how Norway is able to balance the books
    I find it hard to compare the UK to Norway with roughly 13 times as many people, but similar amount of oil.

    Quote Originally Posted by Rheghead View Post
    However, it may go some way to explain how Norway is able to balance the books but the UK government is not if it is prepared to give away tax breaks for the oil industry with a similar amount of production.
    Again, if the UK had 13 times more oil than Norway, to match the difference in populations, I'm sure we could balance the books too.

    Quote Originally Posted by Rheghead View Post
    Is the oil being mismanaged?
    Difficult question.

    It's that mix between direct taxation and maintaining employment and investment.

    Oil is an international business and the companies will only operate where they want to. Make it too expensive and they leave, along with their investment and jobs.


    It's easy to target the oil companies. That's true. But they keep something like 400,000 taxpayers in work and maintain high skill levels in this country. Yes they get tax breaks to encourage their investment, but they get no subsidy.

    I've personally got a bigger problem with Amazon receiving over £10,000,000 in direct subsidies from the Scottish government, paying virtually NO TAX and employing a few hundred low skilled, low paid workers, many on zero hours contracts.
    http://www.scotsman.com/news/opinion...land-1-1994067
    Patriotism is when love of your own people comes first; Nationalism, when hate for people other than your own comes first.

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