Taxpayers to pay for fracking pollution if companies go bust

Taxpayers will pay to clean up any pollution caused by fracking if the companies go bankrupt.  A proposal to make UK operators take out insurance against such damage has been ruled out by the government, as reported in the Guardian newspaper.

Cuadrilla shale gas drilling rig is set up for 'fracking', Weeton, Blackpool, Lancashire, in March 2012. (image source: guardian.com)
Cuadrilla shale gas drilling rig is set up for ‘fracking’, Weeton, Blackpool, Lancashire, in March 2012. (image source: guardian.com)

 

As Rob Cunningham, head of water policy at the RSPB, said:

“The prime minister promised one of the most stringent regulatory regimes for fracking in the world but his government appears more interested in tax cuts than managing risk. It really doesn’t matter if you are pro or anti fracking, this proposal would simply ensure that when things do go wrong shareholders, not taxpayers bear the cost for cleanup if companies go bust or cease trading. If government’s response boils down to concerns over cost of insurance it sheds an interesting light on just how safe they really think the technology is.”

Read the full article here:

Taxpayers to pay for fracking pollution if companies go bust | Environment | theguardian.com.

Leave a Reply

Your email address will not be published. Required fields are marked *