howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
centrica, the owners of british gas are considering closing one of their gas fields in morecambe bay.
in the last budget george osborne raised supplementary tax on oil and gas production from 20% to 32%, one of the highest rates in the world.
there are no indications yet how many jobs will be affected
Jan Higgins
- Location: Dover
- Registered: 5 Jul 2010
- Posts: 13,885
What has the tax rise got to do with them considering the closure?
Is the gas running out.
Is the quality poor.
Your post gives no facts just another dig at Osborne, scaremongering prior to the election by any chance.
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howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
wasn;t a dig jan just stating a fact that was on the b.b.c. news.
no further details were given.
in would imagine that it was just a case of their profits being hit.
Guest 656- Registered: 13 Mar 2008
- Posts: 2,262
Still, thats a massive increase, up 12%
not surprised their profits have been hit badly!
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
this has resurfaced, centrica have paved the way for price increases by making a statement about them being unable to absorb the tax rise.
could be considered a stealth tax.
Guest 653- Registered: 13 Mar 2008
- Posts: 10,540
Their profits are enormous, it cannot be true that they cannot afford it; more like their shareholders don't want the company to afford it, so it falls on the consumer.
Roger
Jan Higgins- Location: Dover
- Registered: 5 Jul 2010
- Posts: 13,885
"so it falls on the consumer"
As usual.
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I try to be neutral and polite but it is hard and getting even more difficult at times.
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Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Costs always fall on the consumer, that is a fact of life. Whether it is tax, national insurance, the costs of red tape, whatever - ultimately all of these costs are paid by consumers. There is no such thing as a free lunch.
Guest 683- Registered: 11 Feb 2009
- Posts: 1,052
It seems the Morecambe Bay site attracts tax at a higher level because it is an older field.
"It (Centrica) is considering whether to restart production from the Morecambe Bay field, which is closed for maintenance, or to buy gas in the market instead. Older fields like Morecambe Bay pay tax at 81%, compared with the standard 62%." HeraldScotland
At a certain level it becomes cheaper to buy from other suppliers than produce. It is simple economics and, when you have to maximise profits for your shareholders, decisions are quite straightforward. I think it's called private enterprise or free trade or free marketeering.
Apparently it is this that will get the country out of its current financial mess so we must support it! Let's have less of the bleeding heart responses please.