HC Deb 05 June 1972 vol 838 cc13-4
17. Mr. Eadie

asked the Secretary of State for Trade and Industry if he will make a statement on the prospects for refining North Sea oil in Great Britain.

The Under-Secretary of State for Trade and Industry (Mr. Peter Emery)

It is too early to make any detailed assessment of the scale of operations. However the United Kingdom has a large refining industry, and there is every likelihood that companies will refine substantial quantities of North Sea oil in Great Britain.

Mr. Eadie

Is the hon. Gentleman aware that this Question is really about jobs? There is great concern, particularly in Scotland, in relation to how the new oil finds will be exploited. Some people are beginning to think they have already been betrayed by the Government. Does not the hon. Gentleman agree that it would be ridiculous if oil found off our shores were refined in another country?

Mr. Emery

There are three parts to that supplementary question. First, I deny that the Government are not doing everything possible to ensure the greatest exploration in the North Sea—greater than in any other oilfield anywhere in the world at any time. Secondly, the hon. Gentleman must realise that under the operating contracts the oil has to be landed in the United Kingdom. Lastly, oil refineries are very capital intensive and do not create many jobs.

Mr. Skeet

Will my hon. Friend tell us why Chevron was not able to build a refinery on the Clyde?

Mr. Emery

That is a question for my right hon. Friend the Secretary of State for Scotland, since such planning permission comes under his Department.