HC Deb 11 May 1967 vol 746 cc1692-3
Q2. Mr. Whitaker

asked the Prime Minister whether he will now make a statement on his plans for further public control of the economy, including the aircraft construction industry and the North Sea gas-field.

The Prime Minister

As to the general Question, I would refer my hon. Friend to the reply I gave to a Question by my hon. Friend the Member for Reading (Mr. John Lee) on 23rd March; as to the aircraft industry, I would refer him to the speech of my right hon. Friend the then Minister of Aviation in this House on 21st November last; and as to the North Sea gas field, I would refer him to the reply which my right hon. Friend the Minister of Power gave to Questions by my hon. Friend the Member for Bristol Central (Mr. Palmer) and the hon. Member for Edinburgh, North (Earl of Dalkeith), on 20th December last.—[Vol. 743, c. 331. Vol. 736, c. 961. Vol. 738, c. 1164.]

Mr. Whitaker

Does my right hon. Friend agree that, if one approaches these questions without political prejudice, all the objective evidence favours these two measures? Is he aware that both the Economist magazine and the Plowden Commission recommended the nationalisation of the aircraft industry, and, as regards the North Sea gas-field, is he aware that the public very much resent the action of the oil companies in trying to refuse the fair and generous price which the Cabinet have decided upon——

Mr. Speaker

Order. We must have fair shares at Question Time.

The Prime Minister

As is well known, I always approach all these matters completely free of political prejudice. As regards the aircraft industry, the Government's proposals, which are now under negotiation with the firms concerned, were announced by my right hon. Friend the then Minister of Aviation. As regards North Sea gas, I thought that my right hon. Friend the Minister of Power said some very wise words on this question yesterday in a public statement.

Mr. Ian Lloyd

Before the Prime Minister allows his enthusiasm for public control to become too unrestrained, will he consult Mr. Kosygin and some of the senior planners of Gosplan who are now making considerable efforts to restore the profit motive and other forms of incentive?

The Prime Minister

I was not aware that Mr. Kosygin had yet fallen prey to the proposals of hon. Members opposite and was thinking of denationalising his aircraft industry.

Mr. James Johnson

Did not the statement of my right hon. Friend the Minister of Power show that, without any dubiety, the oil companies can make a profit, a good profit, at 2½. a them, although they are now sticking out for 3½d. and saying that if they do not get it they will not prospect further? As a vacuum would be left in those circumstances, is there not a case for some form of public ownership?

The Prime Minister

While the negotiations are continuing, it would not be right for me to comment. I have referred to the statement made by my right hon. Friend the Minister of Power yesterday. My hon. Friend will be aware, also, that at least half of each of the areas licensed will revert to the Crown at the end of the initial period of six years, that is, from 1970 onwards.