Is He Ignorant or Simply Stupid?

I'm afraid I rather choked over my cornflakes this morning when I saw this:

Gordon Brown stepped into a growing row about oil company profits yesterday, calling on BP and Shell to spend more of their combined £7bn first-quarter earnings on activity in the North Sea.

The prime minister's comments came as lorry drivers took a protest on the soaring cost of petrol to central London, while other motoring organisations and environmentalists accused the oil industry of profiteering at the expense of car drivers and the planet.

"We do need the oil coming out of the North Sea; we do need to encourage the new exploration," said Brown. "That is more expensive to do. That is why I hope that these profits are going to be invested in getting more oil out of the North Sea."

Well, yes, lovely, and we'd all like a pony as well please. So, what have you actually done over the past 11 years to encourage this desirable state of affairs?

The last time a windfall tax was imposed on North Sea operators in 2005, it brought short-term gains to the Treasury but led to a slump in drilling activity that ultimately cut tax revenues.

So, the question has to be asked. Is Geo. Brown ignorant of the effect his meaures have or is he simply stupid?

Actions: Print this article   |   Email to a friend   |   Permalink   |   Comments (1)

Post this entry to:   del.icio.us | Digg | Newsvine | NowPublic | Reddit

Advertisement

Spectator Business | Apollo Magazine

Corporate | Advertising | Privacy | Terms

Spectator, 22 Old Queen Street, London, SW1H 9HP

All Articles and Content Copyright ©2008 by The Spectator | All Rights Reserved