Thursday, July 31, 2008

Campaign for Public Ownership Press Release on British Gas Profiteering

The Campaign for Public Ownership condemns the decision of British Gas to hike gas prices by a record 35%.

The price increases come just six months after the company increased its dual fuel bills by 16 per cent.

While Centrica customers have been hit by a 44 per cent increase in their bills this year, the company's shareholders have suffered far less, with its shares dipping by less than 10 per cent since the start of the year.

And today, to rub salt into the wound, Centrica plc, the parent company of British Gas, will announce profits of £992m.

British Gas is profiteering, pure and simple. The appropriate response from the government is not greater regulation as some have called for, or a one-off windfall tax, but to end the profiteering once and for all by taking our utilities back into public ownership.

1 comment:

Respectable Citizen said...

While I fully support re-nationalisation of British Gas, I don't think that we should oppose a windfall tax or greater regulation, but rather fight for them because 1) This would be a blow against companies like British Gas who will and are resisting any attempt at regulation or attempts to tax their profits, the implementation of greater regulation and a tax on profits would be a blow against corporate power.

2) While not the ultimate solution to the problem, a windfall tax and government enforced cap on price-rises could bring some relief to people struggling to pay their bills.

3) Politiicans pretend to be powerless, it is important to expose that their are many steps that they could take to allieviate the burden on working class people.

But you're right we need to seize the opportunity presented by people's anger at price rises from the profiteers to put the case for public ownership - I think that fighting for a windfall tax, and regulation, can be part of this fight. If we win these small victories it might spur people on to fight for the greater victory?

In solidarity,

Adam Johannes