Unions want oil windfall tax after Shell's record profits

Shell's mega-profits lead to call for windfall tax, but the oil company says that would adversely affect its investment in searching for new energy sources

Written by Kevin Reed

Accountancy Age, 01 Feb 2008

Record profits by Shell should be hit by a windfall tax, unions have urged.

Royal Dutch Shell posted $27.6bn (£13.9bn) profits in 2007, which prompted Tony Woodley, joint general secretary of union Unite to call for a windfall tax.

'This government took the brave step of putting a windfall tax on the greedy privatised utilities to fund the New Deal. With pensions injustices still to be addressed, fortune should favour the brave again and the greedy oil companies should be asked to contribute for the common good,' Woodley said according to the Press Association.

Shell said that its profits figure was almost equal to its investment in securing new energy sources.

'If you get additional taxation, in the end it means you can invest less. The money has to come from somewhere and over time it will impact on our production,' said chief executive Jeroen van der Veer.