LONDON – In today’s Queen’s Speech in the UK parliament, the government included a section on the recent Wood Report, which sets out potential measures to maximize economic recovery from UK offshore fields.
However, the government has recommended that industry finances the entire cost of establishing the new regulator to push through these measures.
Oil & Gas UK CEO Malcolm Webb said: “We must disagree with the government seeking to absolve itself from all financial involvement or responsibility for the new regulator.
“This is not a question of the size of the bill. Production taxes paid by this industry each year run into many billions of pounds and the total cost of the new regulator will be a very tiny fraction of that. It is rather a question of good governance, transparency, and fairness that at least a part of the cost of the regulator should continue to be borne by the Department of Energy.
“We look forward to hearing further progress soon on the formation of the regulator.”