Cameron urges fracking opponents to 'get on board'

 

David Cameron: "Shale is important for our country"

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Councils that back fracking will get to keep more money in tax revenue, David Cameron has said as he urged opponents to "get on board".

The prime minister said English local authorities would receive all the business rates collected from shale gas schemes - rather than the usual 50%.

In a visit to a Lincolnshire fracking site, he predicted the process could support 74,000 jobs and reduce bills.

But Greenpeace accused ministers of trying to "bribe councils".

Jane Thomas from Friends of The Earth said the tax boost was a "community sweetener"

Mr Cameron's announcement on business rates came as French company Total confirmed plans to invest about £30m to help drill two exploratory wells in Lincolnshire. It is the first major energy firm to invest in fracking in the UK.

The British Geological Survey estimates there may be 1,300 trillion cubic feet of shale gas present in the north of England.

But the process to extract it - called fracking, which is short for "hydraulic fracturing" - has led to protests, with environmentalists fearing the technique could cause small earth tremors, water contamination and environmental damage.

On Monday protesters at the Barton Moss fracking facility in Greater Manchester climbed on to lorries entering the site.

Lord Browne, Cuadrilla: "We have to demonstrate we can do this well"

But Mr Cameron argued that the UK had the "strongest environmental controls" and pledged: "Nothing would go ahead if there were environmental dangers."

"Shale is important for our country," he continued. "It could bring 74,000 jobs, over £3bn of investment, give us cheaper energy for the future, and increase our energy security.

"I want us to get on board this change that is doing so much good and bringing so much benefit to North America. I want us to benefit from it here as well."

Infographic showing shale gas extraction

Fracking involves drilling deep underground and releasing a high-pressure mix of water, sand and chemicals to crack rocks and release gas stored inside.

Whitehall officials said the business rates commitment would mean councils keeping up to £1.7m extra a year from each fracking site.

Separately, the mining industry has pledged to give communities £100,000 for test drilling and a further 1% of the revenues if shale is discovered, they added.

Energy minister Michael Fallon said councils could benefit by up to "£10m per wellhead" if shale gas was successfully extracted in their communities, through the 1% levy on revenues.

How fracking recovers natural gas from shale

The Local Government Association, which represents councils in England, said the announcement was a "step in the right direction" but any packages had to "fairly remunerate" those affected.

Start Quote

This is a naked attempt by the government to bribe hard-pressed councils into accepting fracking in their area.”

End Quote Lawrence Carter Greenpeace

"One percent of gross revenues distributed locally is not good enough; returns should be more in line with payments across the rest of the world and be set at 10%," a spokesman said. "The community benefits of fracking should be enshrined in law, so companies cannot withdraw them to the detriment of local people."

Responding to the LGA's call for 10% of revenues, Mr Fallon said: "This is something obviously the industry will keep under review."

For Labour, shadow energy minister Tom Greatrex said it was right for communities to share in the potential rewards from shale gas, but he called on the government to "get its priorities right".

"Only by fully addressing legitimate environmental and safety concerns about fracking with robust regulation and comprehensive monitoring will people have confidence that the exploration and possible extraction of shale gas is a safe and reliable source that can contribute to the UK's energy mix," he said.

Friends of the Earth's Jane Thomas argued that the new policy "highlights the depth of local opposition to fracking and the desperate lengths ministers are prepared to go to try and overcome it".

'New North Sea'

Lawrence Carter of Greenpeace added: "Having had their claims that fracking will bring down energy bills and create jobs thoroughly discredited, the government is now resorting to straight up bribery to sell their deeply unpopular fracking policy."

St Anna's Road site The "fracking" technique to extract shale gas has proved controversial

The Institute of Directors welcomed the move on business rates, with chief economist James Sproule arguing: "Investment from Total is a vote of long-term confidence in the UK shale industry, and is a welcome sign that the government is creating the conditions necessary to maximise the potential benefits of a new domestic energy source.

UKIP energy spokesman Roger Helmer warned that "all the financial benefits [of fracking] could be swallowed up by bureaucracy" and urged the government to create a sovereign wealth fund so that fracking profits "would ensure financial security for future generations".

Map showing areas of the UK licensed for oil and gas exploration and areas under consideration for licensing
 

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  • rate this
    -11

    Comment number 1725.

    Get real, this is just what we need. Reject it any you will be paying even larger bills for gas and electricity. Don't let the scare-mongers win this like they did with nuclear power.

  • rate this
    +11

    Comment number 1724.

    We don't need this..
    We don't want the landscape of the northern counties scarred by the ugly steel framework of hydraulic pumps.
    We don't want any chance of our Yorkshire water being contaminated.
    We don't want there to be an imminent health risk to fish, animals & plants.

    The fact they are offering all that money to buy peoples opinions says it all.

    Local councils need to grow a backbone..

  • rate this
    +3

    Comment number 1534.

    I am all for fracking as we need to have energy self sufficiency and if done correctly (no carbon taxes) it should drive down our energy bills and that's something we really do need. If we carry on down the wind turbine route it is going to be a calamity for consumers and the economy as they just aren't viable. Germany are building coal power stations so all isn't green in the garden there.

  • rate this
    +10

    Comment number 1454.

    Fracking is a very bad idea, and what do we do when we've exhausted those reserves anyway ? Stop wasting energy and stop driving all those short journeys everywhere. Start cycling to work and put something towards avoiding the obesity issues. We're a nation of very lazy and wasteful individuals. You can have less carbon reliant economy if you really want it.

  • rate this
    +13

    Comment number 1348.

    Fracking would be OK if there was completely independent supervision of the drilling . Unfortunately the government will not implement this. So we are at the mercy of the oil and drilling companies to ensure there are no environmental problems. With financial interest they may not be as conscientious in applying regulations as independent organisations .

 

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