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Tax Yields: Offshore Industry

Volume 468: debated on Wednesday 28 November 2007

To ask the Chancellor of the Exchequer what assessment his Department has made of the effect of decommissioning North sea oil and gas platforms and other infrastructure on tax revenues over the next (a) five, (b) 10, (c) 15 and (d) 20 years. (167778)

The Government’s forecast for North sea tax revenues take into account an assessment of the expected impact of decommissioning. Overall estimates of the cost of decommissioning vary, however the eventual monetary and tax cost is likely to be significant. This will in due course give rise to a downward impact on North sea revenues. However the impact of this will be spread over a large number of years and with the significant remaining potential of the North sea the UK will continue to benefit from our national natural resources for a considerable time.