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azzuri · 'Our Scotland' Fossil Joined: 12 Sep 2005 Posts: 3777

see - http://news.bbc.co.uk/1/hi/scotland/4500764.stm

Scottish National Party leader Alex Salmond has accused Chancellor Gordon Brown of a £2bn "smash and grab" raid on oil revenues.
His claim followed Mr Brown's pre-budget announcement that he would double taxes on the profits of North Sea oil and gas companies.

He has increased from 10% to 20% the supplementary charge he introduced in 2002, which is imposed on profits.

But opposition parties and unions accused Mr Brown of endangering jobs.

Golden egg

The chancellor delivered his autumn statement in the Commons on Monday and blamed rising oil prices for lower economic growth in Britain.

He announced there would be a new package of incentives for new companies that want to explore difficult North Sea oil and gas fields.

But Mr Salmond was far from satisfied with the chancellor's statement.

He said: "Gordon Brown is killing the goose that lays the golden egg and potentially putting thousands of future jobs at risk.

"He could have sat down and discussed options with the industry but this is a smash and grab to fill the black hole in his coffers.

"It is a £2bn cash grab on the oil industry and Scotland. Scotland's black gold is filling Brown's black hole.

"It is a disgrace that he is treating the North Sea as a short-term cash cow and threatening investment and jobs."

The Conservative Party said Mr Brown "couldn't care less for Scotland".

Finance spokesman Derek Brownlee added: "There will now be some oil fields in the North Sea paying 75% tax overall, which will hit them hard.

"It is clear that Gordon Brown is a roadblock to the reform of the Scottish economy.

"The only green lights he has offered are for even higher taxes and yet more borrowing."

Oil unions also expressed fears for job safety in light of Mr Brown's statement.

Jake Molloy, general secretary of the OILC offshore union, said the chancellor's announcement had come as a shock.

He said there was a potential impact on jobs - and on safety, if budgets were cut.

Steve Harris, of the UK Offshore Operators' Association, said predicted investment in the North Sea would be hit.

He said this, combined with a tax grab in 2002, had produced "the least stable fiscal regime of any oil province in the world".

He said: "It's like asking people to invest in something close to a banana republic, in terms of the reliability of its tax regime."

Mr Harris described the increase as a "brutal instrument", which had been applied without any industry consultation.

However, Scottish Secretary Alistair Darling said: "The reform of North Sea oil taxation aims to strike the right balance between producers and consumers.

"North Sea oil is a national resource and all taxpayers should benefit from profits reaped by companies as a result of price increases."

He added that an additional £49m would be made available to the Scottish Executive as a result of the chancellor's announcements.

- So an extra £2 Billion of the black stuff's revenue flows south and we get a paltry £49 Million in return.

Nice one gordon - you really know how to alienate everyone don't you!?!?!

The English don't want you as PM, we're embarassed that you're scottish (though with a small 's') and you have been an absolute shambles as a chancellor.

Managing to gloss over the figures won't hide the truth in 5/10 years when the economy is in a mess due to your borrowing. Evil or Very Mad

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Rinty · Posted: Tue Dec 06, 2005 9:07 am Post subject: i

Firstly can I say that any discomfort for Brown is to be welcomed and that his fiscal policy, his predictions, his mess that he has created will hopefully combine to lead to his downfall.

BUT...

Smash and Grab is way over the top when we are talking about firms that make billions from Scottish natural resources and are making more than ever due to high oil prices.

In my opinion the profits from Scotlands oil should be taxed at 100%, althought o make it simpler to collect it would be easier just to have the whole oil indutsry publicly owned.

The oil companies can cry into their champagne for all I care, even with Browns tax extras they have all still had a very good year.

Wonder what pensions the oil execs can look forward to or if they will be forced to work till 68?

SLG · Posted: Tue Dec 06, 2005 11:06 am Post subject: Re: i

I think you really need to go all the way and bring them back under state control, or to leave them in a relatively open market. While there is no state investment in the North Sea, we rely on private firms to invest. Tax hikes like this one are likely to see them reduce their investment and could lead to a decline in the industry.

Rinty · Posted: Tue Dec 06, 2005 1:24 pm Post subject: no

But anything they invest is not taxed with this extra rate as it is only on profit and research and development is deducted before profits to be taxed.

So I don't see that it will stop investment, if anything it might push investment up as it will be more financially prudent to invest the money rather than pay taxes on it.

All in all, if their is a profit to be made, the oil companies will invest in that. They do so because of the high rewards if they strike.

SLG · Posted: Tue Dec 06, 2005 2:19 pm Post subject: Re: no

azzuri · 'Our Scotland' Fossil Joined: 12 Sep 2005 Posts: 3777

......is that really such a bad thing though?

surely that will allow smaller scottish companies a piece of the action, companies who will hopefully invest some of their wealth back into the country?
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"Every single person on this planet is unique. Just like everyone else..." - Random Guy in Edinburgh Pub

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SLG · Posted: Tue Dec 06, 2005 2:30 pm Post subject:

SLG · Posted: Tue Dec 06, 2005 2:35 pm Post subject:

Don't get me wrong. I think it's a good thing that the multinationals are moving out of the North Sea and being replaced by small independents. Some of whom are even based in Aberdeen. It is a very fine line though. The industry is still so crucial to the NE that it is essential that there is long term investment.

SLG · Posted: Sat Dec 17, 2005 11:22 am Post subject:

http://thescotsman.scotsman.com/index.cfm?id=2420892005

azzuri · 'Our Scotland' Fossil Joined: 12 Sep 2005 Posts: 3777

there's the definitive answer then.

I imagine more will follow
_________________
"Every single person on this planet is unique. Just like everyone else..." - Random Guy in Edinburgh Pub

Possibly the funniest site in the world, 'The Daily Mash' - http://www.thedailymash.co.uk/