29th August 2008
LABOUR CANDIDATE BACKS CALL FOR ENERGY WINDFALL TAX
Donna Hutton, Labour’s Parliamentary Candidate for Clwyd West, which includes Colwyn Bay, Abergele, Kinmel Bay and Ruthin, has called for the Government to impose a windfall tax on excess energy profits right away.
Donna Hutton said:
“Everyone in the constituency is affected by rising fuel and energy prices, but it's the poorest and those on fixed incomes who are hit hardest. Winter is coming and people are both worried and angry at dramatically rising bills for two essentials of life - light and heat.
“Since 2000 we have faced gas price rises of 100% and electricity price rises of 61% - with more on the way, including British Gas raising its gas bills by a record 35%. This, while the main energy providers have been raking in the profits – these have risen from £557 million in 2003 to £3 billion today!
"Some energy companies' profits are in excess of £25,000 a minute, which is a lot more than most people in our constituency earn in a year. And all this for no extra investment and no extra work by the energy companies.
“The price of oil rocketed earlier this year, dragging petrol prices with it. But although oil is now a lot cheaper than just a month ago, prices at the pumps have not come down by anywhere near as much.
“This is unacceptable profiteering at the expense of people who can ill afford it. I believe it is right that the government should now levy a sensible one-off windfall tax for social and environmental justice.
“Part of the money raised should be used to immediately help those struggling with rising fuel bills and should be particularly targeted at families in or facing fuel poverty. The rest should be used for a national programme of home energy efficiency and installing renewable energy, starting with the homes of the fuel poor.
“Used in the right way this could benefit the UK economy as a whole - just as the New Deal in 1997 created new jobs for the long term unemployed, such an investment could see the creation of hundreds of thousands of new jobs in renewable energy production, insulation, building renovation and other sectors.
ӣ4.5 billion was raised in a similar windfall tax when Labour came to power in 1997 on the unearned profits of the newly privatised utilities. In 1981 the Conservative government levied a windfall tax on the main clearing banks - justified on the grounds that increased interest rates led to substantial unearned profits.
“This year’s huge oil price hikes have lead to massive unearned profits for the main oil and energy companies - I therefore call on the government to move quickly and decisively and levy a windfall tax now.”
ENDS.
FURTHER INFORMATION
- The 1997 measure took just three months to enact.
- A petition is being led by Labour pressure group Compass, who can be contacted at gavin@compassonline.org.uk.
- Petition signatories include: Lord Hattersley; Lord Richard Rogers; several trade union leaders, Friends of the Earth, Kate Green (CPAG), Baroness Helena Kennedy QC, Tony Juniper, and over 70 Labour MPs.
- Despite the billions made in profits the major energy companies currently only spend £50M a year on helping the fuel poor and have only agreed to raise this to £150M by 2010.