HC Deb 22 July 1969 vol 787 cc1480-1
34. Mr. Alison

asked the Minister of Power whether he will make a statement on the issue of production licences under the Continental Shelf Act, 1964, in respect of areas for which licences were granted in 1964 and 1965.

22. Mr. Stainton

asked the Minister of Power whether he will undertake to make a statement to the House on the issue of production licences under the Continental Shelf Act, 1964, in respect of areas for which licences were granted in 1964 and 1965 before coming to any decision.

Mr. Mason

I hope to be able to make a statement on licensing policy before the House rises. Areas to be surrendered under licences awarded in 1964 and 1965 will not become available for relicensing until the autumn of next year.

Mr. Alison

Is the Minister aware that the rather sneering remarks which he made in a recent speech about abortive expenditure by the exploration companies has caused widespread offence to the exploration industry? When will he make a statement about the abortive expenditure by the Americans in getting to the moon?

Mr. Mason

I am not aware of any sneering remarks about abortive expenditure on the exploitation of North Sea gas. In fact, we are very grateful that the international oil companies have taken a very keen interest in taking up licences and working out their work programme within the six years in which they were required to do it before giving up 50 per cent. of their blocks. I am not aware of the sneering comments to which the hon. Gentleman refers.

Sir J. Eden

Was not the right hon. Gentleman reported in the Northern Echo of 28th June as having said that £40 million of the money spent in exploration was wasted? It is the use of the word "wasted" which is regarded as being highly offensive in this high risk area.

Mr. Mason

I cannot make a serious reply without looking at the reference. This is not "wasted" in the sense that the hon. Gentleman uses the word. There is a high risk in the North Sea, which is a very hazardous area for drilling operations. Consequently a lot of dry holes can be drilled without any return. Money may be wasted in that sense, but this is a high risk venture.