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Families in shale-gas areas to receive cash bounties: British PM

Xinhua, August 8, 2016 Adjust font size:

Residents in British areas affected by shale-gas extraction sites will share the proceeds, Prime Minister Theresa May announced Sunday.

May has rewritten plans for the Shale Wealth Fund to enable money from so-called racking sites to go into the hands of local people.

The government didn't say how much the bounty would be worth, but some national newspapers reported Sunday householders could receive up to 17,000 U.S. dollars.

There were media speculations that May's bonanza scheme could prove controversial, with environmental critics arguing it would be a "bribe" and could undermine local democracy if local politicians opposing fracking find themselves under pressure from householders keen to get their share of the money.

Communities across the country are divided over shale gas extraction, with many people against the process of extracting gas from underground.

The prime minister in a statement issued by 10 Downing Street said options to share proceeds of shale should include money paid directly to residents. Until now proposals for sharing money from the wealth fund only include money for community trusts or local councils.

May has pledged to make the principle of direct benefit to households a blueprint for other schemes.

The statement added: "The Shale Wealth Fund, due to be formally consulted upon this week, was previously expected to share proceeds from shale revenues only with community trusts and local authorities. The consultation has been changed by the new Prime Minister to include the option of money being paid directly to local residents in host areas."

Plans for the fund were first announced in last year's autumn statement by former Chancellor of the Exchequer George Osborne. May's new government has changed the consultation to ensure a greater focus on control for local communities, including insisting on proposals to transfer funds directly to households rather than local authorities.

Communities could receive up to 10 percent of tax revenues derived from shale exploration in their areas to spend on priorities, such as local infrastructure and skills training. The new fund could deliver around 13 million U.S. dollars for each eligible community.

The government says it will also be looking at whether this approach to the Shale Wealth Fund can be a model for other community benefit schemes with the aim of putting more control and more resource in the hands of local households.

A study by the British Geological Survey has estimated a total shale gas resource across the north of England of 37 trillion cubic meters. Currently the annual gas consumption in Britain is around 0.07 trillion cubic meters. Endit