HC Deb 07 August 1972 vol 842 cc1226-8
3. Mr. William Hamilton

asked the Secretary of State for Trade and Industry if he is satisfied that the Scottish economy and Scottish companies are sharing as fully as possible in the benefits accruing from the development of North Sea oil and gas; and what new plans he has to increase Scottish participation.

The Secretary of State for Trade and Industry and President of the Board of Trade (Mr. John Davies)

The Government are taking all possible steps to draw the opportunities to the attention of industry. It is for industry to grasp these opportunities and a number of Scottish firms have already won orders for equipment. The report I have commissioned from consultants, which I expect to receive in the autumn, will assist me in identifying in what further ways the benefits to industry and the economy may be promoted.

Mr. Hamilton

Will the right hon. Gentlemen undertake to make that report available to the House? Does he recognise, in view of the statement today that Royal Dutch Shell has made a very major discovery of, I think it is, 1,000 million barrels of recoverable oil, which represents about 15 per cent. of our current needs, that this is an extremely important development which underlines the need for revising the legislation on the granting of licences? Can he say what Royal Dutch Shell paid for this particular licence? Will he take steps to make sure that the infrastructure is provided in large measure by the Scottish Department and that it will insist that the oil companies use more indigenous industrial products for their oil requirements?

Mr. Davies

If, as I sincerely hope, and I am sure the whole House does, the oil find to which the hon. Member has referred is of the dimensions he has mentioned, then indeed this is a vindication of the principle which both Governments have followed of trying to ensure that the maximum prospection of the North Sea area was undertaken. At the same time I can assure the hon. Member that the Government have made it plain, and I do so again now, that the treatment by licensees of the British supplying industry will certainly be a consideration in the award of future licences.

Mr. Sproat

Will my right hon. Friend seriously consider the possibility of transferring to Aberdeen the approximately 90 members of the petroleum division of his Department so that they can be on the spot at the earliest moment to identify the problems and opportunities met for Scottish and British industry?

Mr. Davies

I have a feeling that the real demand for work requires them to be located more here than there, but it will be necessary—and my right hon. Friend the Secretary of State for Scotland recognises this also—to maintain close relations with the developing interests in these fields.

Mr. Benn

While I welcome what the right hon. Gentleman has said, may I ask him whether the Government will now make a conscious effort to develop support for these industries in Scotland so that they can meet the needs arising from these new finds in the North Sea, rather than leave it simply to the application of the Industry Bill which, we hope, will shortly receive Royal Assent?

Mr. Davies

That is part of the purpose of my having commissioned the special consultancy report. The right hon. Gentleman should not lead the House to believe, however, that Scotland has lost a great deal of work in this field. Scotland is doing a great deal of work in the development of the oil finds in the North Sea. For instance, of the total number of mobile drilling platforms built for use in the North Sea no less than half, nine out of 18, were built in the United Kingdom, four of them in Scotland. So it would be wrong to form the impression that Scotland has literally made none of the supply.