§ 25. Mr. Warbeyasked 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. HorobinEnergy 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. WarbeyCan 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. HorobinNeither.
§ Mr. ShinwellIs 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. HorobinIt 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. ShinwellDo 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. HorobinIt 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.
§ Mr. ShinwellThere is something tricky about this.
§ Sir I. HorobinSee if there is a sticky label on it.