HC Deb 07 June 1956 vol 553 cc1275-8
Mr. H. Wilson

(by Private Notice) asked the Chancellor of the Exchequer if he is aware of the bid which has been made by an American company for the stock units of a British oil company, and in view of the importance, for the maintenance of full employment, of the continued control of oil supplies, whether he will use his power to prevent the control of this company from passing to foreign hands.

The Chancellor of the Exchequer (Mr. Harold Macmillan)

The Answer to the first part of the Question is Yes, Sir. On the second part, Her Majesty's Government are, of course, concerned to ensure that the interests of Trinidad are fully safeguarded, and are in touch with the Government of Trinidad on this aspect of the matter. While they are anxious not to put obstacles in the way of United States investment in appropriate cases, they have not yet had time to give full consideration to this matter in all its aspects.

Mr. Wilson

While the Chancellor is considering this matter in all its aspects, will he realise that things are moving very quickly? Should he not take as his first principle the fact that basic supplies within this country should, so far as possible, not pass out of the control of this country? Secondly, has he noticed, from the remarkable—or, perhaps, not so remarkable—increase in the price of shares on the Stock Exchange today, that some people at any rate think that the result of an increase in the monopoly holding in the British oil industry by American interests is going to provide very good pickings for somebody, presumably at the expense of the consumer? Will he therefore be prepared to take quite speedy action to deal with this problem?

Mr. Macmillan

All these are matters which are under consideration at the moment.

Sir B. Baxter

Is the Chancellor aware—as I am sure he is—that the Trinidad company is the one big employer, the only big employer, in Trinidad, and that this sell-out to the American dollar, if it takes place, will have a disastrous effect upon the whole Caribbean Federation? Will my right hon. Friend take that seriously into account, because of our already dwindling Empire?

Mr. Macmillan

Those are all matters which, as soon as I heard of this at all, made me consult the Colonial Secretary and immediately get in touch with the Government of Trinidad.

Mr. J. Griffiths

May I ask the Chancellor whether, in view of the fact that hon. Members on all sides of the House look forward with very great interest indeed to the establishment of a Caribbean Dominion in the not-too-distant future, he will, in addition to consulting his right hon. Friend the Colonial Secretary, have consultations with the Minister in the Caribbean who will be deeply concerned about this?

Mr. Macmillan

I have said that I am in touch with the Colonial Secretary; no doubt he will bring all these aspects of the problem to my attention.

Mr. Bellenger

Would the right hon. Gentleman be good enough to inform the House whether the Government's approval is necessary before any contracts are exchanged in connection with this deal?

Mr. Macmillan

All that depends upon the character of the deal; these are rather technical points upon which different aspects of Government consent may be required, according to the character of the proposed transaction.

Mr. Callaghan

Would the Chancellor please reconsider his last answer, and not rely purely upon the technical aspects of this matter? Will he not take into account the fact that the British Commonwealth today is producing only one-quarter of its oil requirements, and that we shall need much more? Will he bear in mind that there are fundamental political considerations at stake here? Will he make a very early statement that the Government will take steps to prevent any transfer of the seat of power in this company out of this country?

Mr. Macmillan

I think that the hon. Gentleman has quite mistaken what I said. I was asked what powers the Government had. The question of what legal powers the Government have is a technical matter, because they depend upon the precise character of the transaction proposed. It is into all those questions that we are now inquiring.

Mr. Gaitskell

May we be assured that, if the Chancellor's investigations reveal that he has not got the necessary powers to prevent this deal, he will come to the House and ask for them?

Mr. Macmillan

That is quite a different question.

Sir R. Boothby

Does my right hon. Friend realise that it is really important that a quick decision should be taken here? Does he realise the urgency of it?

Mr. Macmillan

Of course, it is important to have a quick decision; but it is also necessary to know precisely what is proposed in order that we may have an opportunity of considering it.

Mr. Gaitskell

Is the Chancellor aware that he certainly gave the House the impression that the Government were not very enthusiastic about this deal and that they would try to prevent it? How does he reconcile that with his last remark, which suggested that if he had not got the powers he might not wish to take them?

Mr. Macmillan

As this matter is in a sense sub judice, I have tried—[Interruption.] It is quite useful to know precisely what is proposed before we know what precise decision to take on it. It seems to me that the order of importance is to know what is the attitude of the colonial Government concerned what is the effect upon the Colonial Territories concerned, and to consider the effect upon our own economy. When we have considered all that in its broad aspects, we will make as early a decision as it is practicable to make.