HL Deb 20 February 1973 vol 339 cc5-8

2.45 p.m.

LORD BALOGH

My Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government how the statement that British Industry has secured over half the supply orders from the oil companies can be reconciled with the estimate of the Industrial Management and Engineering Group (IMEG), according to which only between a quarter and a third were so obtained.

THE MINISTER WITHOUT PORTFOLIO (LORD DRUMALBYN)

My Lords, the estimate of the International Management and Engineering Group of Britain Limited took into account only predominantly British-owned companies, while the figures quoted by Her Majesty's Government included United Kingdom registered subsidiaries of overseas firms.

LORD BALOGH

My Lords, while thanking the noble Lord for that rather ambiguous Answer, may I ask him whether or not he agrees with me that, inasmuch as foreign firms stationed in England get these orders, a very much larger proportion of the purchase price will flow over the exchanges because foreign salaries, foreign material and foreign profits are involved? Therefore, would he not agree with me that henceforth it would be better to list these two categories separately, as the British category and the non-British category, because otherwise misunderstandings might arise?

LORD DRUMALBYN

My Lords, naturally we do our best to attract foreign firms to this country in order to give employment and to help with our economy. I am sure the noble Lord would not wish the position to be otherwise. I take note of the suggestion that he has made and I shall convey it, if I may, to my right honourable friend.

LORD BALOGH

My Lords, no doubt the Minister is quite right in saying that we want to attract foreign firms to this country; but would he not agree with me that it should be on a very selective basis, and certainly not in such a way as in the end to give rise to a loss over the exchanges on invisibles compatible to the gain in visibles?

LORD DRUMALBYN

My Lords, I have no reason to suppose that that has been the effect in the past or that it will be the effect in the future; but to remove all misapprehension on this point may I inform the noble Lord that the estimate for the British share, used in Ministerial statements, was based on returns provided last year by the twelve leading offshore operators on the United Kingdom Continental Shelf and the figures relate to the whole period 1964–1971. These show that out of a total business worth £430 million, £230 million went to United Kingdom-based firms; that is to say, 53 per cent.

LORD ORR-EWING

My Lords, can my noble friend say where Members of this House can obtain copies of the IMEG Report so that we may all be well informed on this issue?

LORD DRUMALBYN

My Lords, a version of the IMEG Report has been published and is available in the Printed Paper Office.

LORD AVEBURY

My Lords, is the noble Lord aware that such a document is not available in the Printed Paper Office, and that although I have asked for a copy from the Department of Trade and Industry it is not yet forthcoming? In view of the fact that my noble friend Lord Tanlaw is raising the whole question of energy policy next Thursday will the noble Lord see as a matter of urgency that copies are made available in the Printed Paper Office?

LORD DRUMALBYN

My Lords, I apologise to the noble Lord and to the House. I should have said that it should be available in the Printed Paper Office. I shall take steps to see that it is.

LORD BESWICK

My Lords, will the noble Lord bear in mind that apart from the availability of this particular publication, it would be most helpful to those who try to follow these matters if, in a list of firms involved in the oil exploration business, the names are set down separately according to whether they are British-owned or simply British registered?

LORD DRUMALBYN

My Lords, I am not quite certain what the noble Lord means by the "lists of firms" being "set down". I understood that the noble Lord, Lord Balogh, simply wished the figures to be prepared separately for British-based firms and British-owned firms. If that is what the noble Lord intends, I shall pass that on.

THE EARL OF LAUDERDALE

My Lords, would the noble Lord not agree that the consortia concerned in the North Sea are in nearly every case a mixed bag and therefore discrimination that is proposed might be difficult to undertake? Would he not agree also that the invitation to overseas capital to invest in this country and create employment is itself a cardinal feature of regional development policy?

LORD DRUMALBYN

My Lords, yes; I tried to indicate that in my initial reply, and on that I certainly agree entirely with my noble friend.

LORD BALOGH

My Lords, would the noble Lord not agree that this particular industry is one of the least labour-intensive in the world, and that therefore to endanger our future balance of payments on this count is most uneconomic?

LORD DRUMALBYN

My Lords, I am not certain that we are keeping the issue clear here. The noble Lord was asking about the supply of equipment to the consortia. Here we are not talking about what the consortia supply, but what the consortia order. It is a question of the orders that they place in this country and elsewhere.