HC Deb 09 February 1959 vol 599 cc845-6
25. Mr. Warbey

asked the Paymaster-General for what purposes it is proposed to increase expenditure on the purchase and storage of petroleum products by £6,322,800 during the current financial year.

Sir I. Horobin

Energy requirements are steadily increasing and in order to meet them we need growing quantities of oil which have to be imported from abroad. The oil companies have raised the level of commercial stocks and the Government propose to supplement them by adding to their existing emergency reserves.

Mr. Warbey

Can the hon. Gentleman say whether the real purpose of this sudden, substantial purchase is to insure against another Suez adventure? Or, as his reply seems to indicate, is this just a further way of helping the oil companies in their competition with coal?

Sir I. Horobin

Neither.

Mr. Shinwell

Is not this a subsidy to the oil companies of this country? Or is this more than £6 million of expenditure to be returned to the Government in some form, with interest accruing?

Sir I. Horobin

It is the Government's own oil. I do not follow the right hon. Gentleman's question. The expenditure is being used for oil which does not belong to the oil companies. Once it has been bought it belongs to the Government.

Mr. Shinwell

Do we understand that this £6,322,800 of expenditure is in connection exclusively with oil purchased by the Government and on behalf of the Government and not to be used by the private oil companies?

Sir I. Horobin

It is bought by and on behalf of the Government. How it is ultimately used I do not think arises. It is oil which will remain the property of the Government.

Hon. Members

Oh.

Mr. Shinwell

There is something tricky about this.

Sir I. Horobin

See if there is a sticky label on it.