4 Improving communication
24. The 2007 Pre-Budget Report said "The latest
round of discussions on the North Sea fiscal regime with the oil
and gas industry ended in September 2007. The Government is considering
the conclusions from these discussions and will publish a consultation
document examining the options for further action in due course".[78]
Some commentators see the publication of the North Sea discussion
paper as a positive step and view the formal consultation as building
on a period of relatively informal consultation, where the policy
areas and options that the Government would consider were not
always clear.[79]
25. We are heartened
by the positive moves by the Treasury to consult on the North
Sea fiscal regime[80]
and by the engagement of industry with that consultation.
Both sides appear to see the ongoing process of consultation as
constructive.[81] Previous
discussions between the Treasury and the industry have identified
a number of desirable features of any fiscal regime: simplicity,
predictability, and recognition of the long-term nature of the
industry and investment lead times.[82]
We hope that these features will be taken into account as part
of the ongoing consultation on the North Sea fiscal regime. However,
in addition to these desirable features, other simple changes
in approach could make a big difference. For example, the industry
is keen to see a more joined-up approach from Government in the
form of joint meetings with Energy ministers and Treasury ministers.[83]
From an industry perspective it makes sense to join up policies
across the whole industry, taking a holistic approach, and we
do not see why Government should not approach it in the same way.
We believe that the breadth of the current consultation is important
as it cannot be sensible to look at only one or two elements;
the whole fiscal regime needs to be examined and it is important
to identify what the Treasury and the industry want from the fiscal
regime. Only then can we start the tricky business of getting
from here to there, while maximising recovery of the UK's natural
resources.
78 H M Treasury, 2007 Pre-Budget Report and Comprehensive
spend Review, paragraph 5.86 Back
79
http://www.ukbudget.co.uk/UKBudget2007/NorthSeaOilTax/budget07_oilandgasringfenceactivities.cfm Back
80
Ev 63 Back
81
Qq12 and 176 Back
82
H M Treasury, The North Sea Fiscal Regime: a discussion Paper,
March 2007 Back
83
Q10 Back
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