The taken resistance put up by the Labour Government to the plunder of the North Sea oil reserves by the ti-national oil companies has colAccording to the Sunday Times (9 February), amendments to the Oil Taxation Bill will be tabled by the Government at the end of the month to relieve the tax burden on North Sea oil companies. The avcrage effectve rate of the Petroleum Revenue Tax. it is suggested, will be reduced to 20%.
en it was first announced in Nove1974, it was indicated that a gle rate tax of 65% would be stroduced, The Labour Government's parbicipation in the exploitation of the Mields has now become largely symbolie, the Sunday Times pointed L. Although when "participation"
as first announced (in the Labour arty's election manilesto) it was ught to mean that the Governat would take a controlling share companies engaged in North Sea exploitation, it has been made Pite clear now that the Governent's 51% shareholding will not sed to control the oil com Not will the government ike 51% of the profits. "lingness to take control of a major company is shown by the way they are treated the BP shares that came nto their possession from the ading armah Oil Co, Burmah aceded cash to stay afloat, and it sold its 22% ake in BP to the Government. which already had a 49% holding But by pretending that Burman's BP holding was purchased by the Hank of England and not by the Government, and by assuring the oil companies that the Government would continue to act as if it only controlled 49%, Labour hopes to avoid the embarrassment of controlling one of the largest companies in the world The Labour Government's retreat can only be understood in the context of firstly the strategic role played by North Sea oil in allowing Britain to borrow abroad in an attempt to stire off the worst effects of the world economic ensis, and secondly Labour's gencral inability to challenge the forces of international capitalism.
The British economy is bankrupt. Years of low profitability and lack of investment bave left British capitalism with very little ahility to compete for markets in the present world crisis, More than any other of the advanced capilalist economies (apart trom Italy), Britain was heading for a disastrous balance of payments problem long before the Aralis put up the price of oil.
The Government has to borrow somewhere tear its present level. But the international banks will not fork out anless they have some securily which is where North Sea oil comes in. As a recent afticle in the Scotsman (3 February) concluded: "It is difficult to lind adjectives to describe adequately the importance of North Sea oil and gos disenveries for the balance of payments. In the absence of the major discoveries of recent years the total oil deficit over 1975HO might have amounted to a horrifying £22.600m.
But to act as security to overseas Jenders, it must be seen that the wilfields are being developed as rapidly as possible. The oil companies know this, and by continually threatenine the Labour Government with a slow down in ou exploitation they have been able to win concessions which will hring them truly massive protits.
It is cicarly necessary to balt taking North Sea ou exploitation out Fight more teachers in the Inner London Education Authority area are facing discipliniary proceedings. bringing the total number to fifteen.
Among them are five in South Hackney who supported the official TUC protest apainst the imprisonment of the brewshury pickets. A gay tencher and two teachers in Westimi..uer who were delegated from their school to attend a picket agains! the Houghton recommendations on pay are also involved.
An ad boc defence committee meeting called at short notice on Thursday 13 February to take up their delence was attended by more than 40 teachers. Here it was stressed that the victimisntions come at a time wben both the ILEA and the executive of the National Union of Teachers are desperate to stop any unofficial action around the teachers April pay claim.
utive has now sent out a circular siying that the action taken over Shrewsbury by the Hackney teachers was unofficial, despite the fact that an earlier NUT official circular had drawn members attencion to the