Oil tax changes 'could cost 21,000 jobs'
According to a Mori poll commissioned by Assoc, almost three-quarters of oil industry service sector companies questioned believe that the PRT proposals made in the last Budget go too far and that any changes should be phased in over a period of more than a year.
In his last Budget Norman Lamont, the former Chancellor of the Exchequer, proposed cutting PRT on existing North Sea oilfields from 75 per cent to 50 per cent and eliminating the tax altogether on new fields. He also proposed to end oil companies' rights to set their exploration costs against their PRT bill.
The Treasury has estimated that exploration and appraisal drilling on the UK continental shelf would fall by up to 50 per cent as a result of the PRT changes, earning Mr Lamont the soubriquet 'driller killer'.
Assoc's members are drawn from a wide range of activities supporting the oil industry, including drilling, construction, geophysical surveys, transport, catering and supply services. It said the Mori survey showed that job losses among the 200 companies sampled in the survey were expected to amount to 8 per cent of the workforce. If this percentage was reflected across the whole of the service sector about 21,000 jobs could be at risk.
'The clear message from the survey is that the proposals as they stand will have a severe impact across the UK. It proves that the opponents of the current PRT changes, far from being a vocal minority, represent a substantial majority of oil industry opinion,' Gill Twyman, an Assoc executive, said.
According to Assoc, the main source of contention revealed by the Mori poll was the speed with which the proposals were being introduced. Only 7 per cent of companies supported the immediate introduction of the proposals. Of those in favour of a period of transition, three-quarters of those sampled, 85 per cent believed that the phasing-in should take place over two to three years.
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered...
- 3 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 4 35,000 walrus gather ashore on north-west Alaska beach 'for a rest'
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Prince held a Facebook Q&A and this is the only question he answered...
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Cheryl Cole officially 'the most dangerous celebrity' on the internet
Ebola virus in the US: What are the symptoms, what is it and is there a cure?
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Benefits 'smart cards' plan revealed by Iain Duncan Smith to stop claimants spending welfare money on alcohol
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...