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Tax Incentives Offered

Community Veteran
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Registered: 12-08-2007

Tax Incentives Offered

Chancellor George Osbourne is to offer tax incentives to the fracking industry. He wants to create the "most generous tax regime for shale in the world"

Tax incentive
This will help establish the UK in the fracking industry and will result in a more certain and cheaper form of energy in the future.
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Re: Tax Incentives Offered

Quote from: artmo
...cheaper form of energy in the future.

Call me cynical but won't most of the financial benefits go to the energy companies.
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Re: Tax Incentives Offered

Unlike America some energy companies here have already said fracking may not result  in energy prices going down.
I think it's a sure thing that no matter what tax incentives are given prices will still go up and profits will follow.
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Re: Tax Incentives Offered

Midnight_Caller
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Re: Tax Incentives Offered

From 38 Degrees
Quote
Dear
Fracking: if you haven't heard of it yet, you're probably about to. It's the process of blasting
water and chemicals deep underground to extract shale gas. [1] And today, the chancellor George
Osborne announced that the UK will become the "most generous" tax regime for shale gas extraction
in the world. [2]
Osborne's 'dash for gas' is scaling up - but fracking is incredibly dangerous. In Lancashire, it's
caused small earthquakes. [3] In parts of America, fracking has resulted in contaminated drinking
water. [4] Most damagingly, pouring tax payer's money into shale gas now means less investment in
renewables and clean energy.
George Osborne would like us to think that this is all sewn up. But fracking isn't an established
industry here yet - and there's a huge amount still to be decided. There's lots that 38 Degrees
members could do together to stop fracking, but first we need to know how ambitiously we should
plan and how much money there is to spend.
Are you in? Could you make a pledge today to chip in just £3 or more to make this possible?
https://secure.38degrees.org.uk/pledge-fracking
If you're standing behind this, here's a first list of ideas for what we could do together:
- Commission expert reports into the murky legislation - and then campaign to fix it
- Publish every MP's opinion on fracking, so local campaigns know what they're up against
- Push local councils to declare themselves 'frack free'
- Support local community campaigns with small grants, campaigning advice and outside experts like
lawyers for court cases
- Learn from successful anti-fracking actions in other countries
There's lots more than that, too. This could be the next big climate and energy campaign for 38
Degrees. We have the numbers and the energy to take this fight to fracking companies across the
country: but there's no point making grand plans unless we know that we're all behind this - and
that we'll have the money to be successful. This won't be a quick win, but we're ready to go - if
enough of us want to.
Can you pledge £3 today to support what could be the next watershed environmental campaign?
https://secure.38degrees.org.uk/pledge-fracking

Thanks for being involved,
Becky, Susannah, James and the 38 Degrees team
NOTES
[1] BBC News: What is fracking?: http://www.bbc.co.uk/news/science-environment-23314874
[2] The Guardian: George Osborne unveils 'most generous tax breaks in world' for fracking:
'http://www.guardian.co.uk/politics/2013/jul/19/george-osborne-tax-break-fracking-shale-environment
[3] BBC News: Fracking 'likely cause' of tremors:
http://www.bbc.co.uk/news/uk-england-lancashire-15550458
[4] Duke University: Higher levels of stray gases found in water near shale gas sites:
http://www.nicholas.duke.edu/news/higher-levels-of-stray-gases-found-in-water-wells-near-shale-gas-s...
Community Veteran
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Re: Tax Incentives Offered

The problem with the fracking process isn't so much the danger of causing minor earth movement by injecting water into the ground, it's more the damage caused by the absolutely vast quantities of water the process needs, and the slack measures that are in place for disposing of it once it's been used (most of it returns to the surface and has to be got rid of).
Community Veteran
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Registered: 12-08-2007

Re: Tax Incentives Offered

In a debate in Parliament it was said that safety and disposal methods would be built in to contracts.  The price paid for the shale would also be stipulated.  I guess we will have to wait and see on all issues. 
Community Veteran
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Re: Tax Incentives Offered

It's a great money spinner for the government along with the opportunity to have some control over the price of Gas so no matter what the potential problems I can see this going ahead at a fast pace.
In common with many other things it will be for some future government to respond to major problems that occur but which may not become apparent until some time later.
Roberto0151
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Re: Tax Incentives Offered

Perhaps if my income were at the same level as those of the leaders of the Green activists, I might be as keen as they are to promote green energy regardless of the cost to the consumer.
CaptainFantasti
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Registered: 02-10-2007

Re: Tax Incentives Offered

If George Osbourne is chucking money about, he could use it to reduce the need for more energy.
He could do this by providing grants for the following things:-

  • High Levels of Insulation - Once it's in, it works for ever (YMMV).
    To state the obvious, this would reduce the need for air conditioning and fans, as well as heating.


  • Rain Water Collection - Water is heavy, and needs a lot of energy to move it.
    Given the right filters to remove leaves and suchlike, it could be hygienic enough to flush toilets.
    Toilet water does not need to be clean enough to drink!


  • Solar Water Heating Systems - These collect heat from the sun and use it to heat up water which is stored in a hot water cylinder.
    Sadly, the rise of the Combi-Boiler has led to many hot water cylinders being removed.
    So this means that a traditional boiler and cylinder would have to be installed.
    Whilst at first this might seem to be a costly thing to support, it could be limited to boilers older than a certain number of years that might need replacing anyway.


These measures could be applied to schools, factories, office buildings etc.
The benefits for schools, and other large buildings, would be more immediate, as they would use more hot water and therefore the savings would come more quickly.