HC Deb 15 March 1972 vol 833 cc513-5
7. Mr. Douglas

asked the Secretary of State for Scotland what further initiatives he intends taking with regard to industry and the local authorities in Scotland after the conference at Aviemore on North Sea oil.

The Secretary of State for Scotland (Mr. Gordon Campbell)

As agreed at his meeting on 14th February, my hon. Friend the Under-Secretary of State for Development has established a standing conference of local authorities, oil companies and others to keep under review all aspects of the North Sea oil developments. The secretariat of the conference is already dealing with queries.

Mr. Douglas

Has the right hon. Gentleman noted the remonstrance given to British industry by Mr. Tapper, the chief exploration engineer of Shell, who says that many British industrialists are likely to miss the boat in terms of getting the maximum benefit for British industry from the North Sea strike? What does the right hon. Gentleman intend doing about that?

Mr. Campbell

I have seen the reports in the Press today of what was stated by a spokesman of Shell. I and the bodies concerned in Scotland, such as the Scottish Council, are doing all we can to draw the attention of Scottish trade and industry to all the opportunities for goods and services that arise.

Sir J. Gilmour

Does not my right hon. Friend agree, in view of the fact that the first instalment of the oil to come ashore came through Japanese pipes, that there is need for some means of manufacturing pipes for later oil to come ashore and to ensure that they are manufactured in Scotland?

Mr. Campbell

I understand that the type of pipe required, which is for under-sea operation, can only be manufactured and made available in time in Japan, but I am glad to note that the land pipe contract has gone to the British Steel Corporation and that the manufacture is to be undertaken in Scotland.

Mr. Russell Johnston

Is the right hon. Gentleman aware that an initiative which is at the Government's hand to take and which would be widely welcomed might be the location in Scotland of the petroleum division of the Board of Trade?

Mr. Campbell

I note that suggestion.

Dr. Dickson Mabon

No doubt the right hon. Gentleman heard the exchanges yesterday with the Prime Minister on this matter. What attitude is the right hon. Gentleman adopting towards the reassessment of refining capacity in Scotland, particularly in the light of the possibility of there being oil to the north and west of our country as well as in the North Sea?

Mr. Campbell

As the hon. Gentleman has pointed out, this is a continuously changing and developing situation. My right hon. Friend the Prime Minister said yesterday that it is a very important question. It is indeed important and also complicated and it is being looked into by the Government with all the others concerned.

25. Mr. Russell Johnston

asked the Secretary of State for Scotland whether he has yet given further consideration to the proposal for a development authority for Scotland, made at the conference, Oil and Scotland's Future, organised by the Scottish Council for Development and Industry; and if he will make a statement.

Mr. Gordon Campbell

This is one of a number of such proposals which are being considered by the Government.

Mr. Johnston

Will the right hon. Gentleman take into careful account the widespread agreement throughout Scotland that some way has to be found whereby a proportion of the money derived from oil in Scottish waters is reinvested in Scottish industry?

Mr. Campbell

There is general agreement that this newly found wealth should be used for the benefit of Scotland, not that it is necessary to relate oil revenues directly to work in Scotland, especially as the oil is not expected to flow for at least two years. But suggestions which have been put forward and discussed with the Government are conflicting in themselves in that there are different ideas of the nature and rôle of any new body.