HC Deb 22 March 1934 vol 287 cc1381-2
42. Sir A. BAILLIE

asked the President of the Board of Trade whether, in view of the large quantities of oil imported every year into this country, the Government has considered the desirability of taking steps to stimulate the search for oil in Great Britain?

Mr. RUNCIMAN

Yes, Sir. The Government have recently had this question under consideration. Since the programme of drilling, financed by the Exchequer, which was carried out during the period 1918–1922 there has been no large scale effort to find oil in this country. (Recently, however, the Government have received indications of renewed interest in the search for oil in Great Britain, and they decided that, in these circumstances, it was desirable to review the whole situation. This has been done, and the Government have decided to introduce legislation, the principal object of which is to remove some of the main difficulties which it is claimed have stood in the way of a search on an extensive scale, and to secure the orderly development of any oil which might be discovered.

The Bill will provide that the ownership of all petroleum which may exist in this country, but which is at present unknown, shall be vested in the State. The rights of owners of the surface to be recompensed for disturbances to property and loss of amenity will be safeguarded. Persons who wish to search and bore for oil will be required to obtain a licence, payment being made to the Exchequer on any oil produced. Those who secure a licence will make their own arrangements with owners of land for the necessary facilities; but where such facilities cannot be obtained by agreement, provision will be made on lines similar to those contained in the Mines (Working Facilities) Acts for securing the grant of the facilities considered by the court to be necessary on terms to be determined by the court. The Petroleum (Production) Act, 1918, will be repealed, and pending the consideration by Parliament of the new Bill no further licences will be issued under that Act. The Bill will be introduced at once in another place.