North Sea Oil (Investment in Scotland)

HC Deb 22 December 1971 vol 828 cc1506-7

29. Mr. Russell Johnston

asked the Secretary of State for Scotland whether, in view of the lack of investment in Scotland and the need to stimulate new enterprise, he will consider taking steps to establish a development corporation financed by a half share of Government revenues accruing from oil exploitation in Scottish waters.

Mr. Gordon Campbell

No, Sir. Important investment decisions have already been taken by Scottish and other companies in consequence of and associated with North Sea oil developments. These and other initiatives in this field are of great value to the Scottish economy. Revenues of any magnitude are unlikely to accrue for some time.

Mr. Johnston

Surely the Secretary of State must by now be aware that, at a time when the Scottish economy is severely depressed, a great many people in Scotland consider it possible that many of the found money revenues which the Government will get from oil—it will be a very large sum—will probably bypass Scotland completely? The establishment of a corporation of the sort I suggest would ensure that Scotland benefited. Similar ideas have been floated by the Scottish Council. Will the right hon. Gentleman look seriously at this matter?

Mr. Campbell

We have the same objective in view—to make sure that Scotland gets the maximum benefit from the North Sea oil development. But revenues of any size are unlikely to come in for some time ahead and the infrastructure and other assistance which the Government can give are needed now.

Mr. Ross

Surely this development means that we are going to be involved in considerable additional expenditure. Surely it is wrong to say that the revenues are very small. Was not a figure of £37 million quoted for licences over the whole area? Since we are concerned about the future, would it not be better to make plans now to ensure that the financial benefits from this new resource accrue directly to Scotland? We should not wait until it is too late.

Mr. Campbell

I will bear in mind what the right hon. Gentleman has said. The Government are working with the companies engaged in this development and with the Scottish Council, which has put forward its ideas. We are determined to do what is most helpful now in order to ensure that this development is of benefit to Scotland.