HC Deb 25 October 1972 vol 843 cc1165-8
4. Mr. Douglas

asked the Secretary of State for Scotland if he will make a statement on his assessment of the effect of oil finds in the Brent field on the Scottish economy.

Mr. Gordon Campbell

It was two months ago that the licensees concerned announced that they had enough information from two wells to conclude that a major new field had been discovered, to be called Brent. The group has not yet stated how it intends to develop and move the oil from the Brent field. This and other important discoveries, of which I expect more in the future as exploration spreads to new areas, will be the subject of continuing evaluation by the Government.

Mr. Douglas

Do we not need a complete reassessment of the potentialities of North Sea finds, which should reach at least 100 million tons by 1980? The minimum cost of developing the Brent field may be £400 million. What is the right hon. Gentleman doing to impress upon his right hon. Friend the Secretary of State for Trade and Industry the need to insert in future licences a strict clause giving the Scottish industry the same type of treatment as the Norwegian industry receives?

Mr. Campbell

What is needed is a continuing process of evaluation. Even the figures which the hon. Gentleman has just given may be proved completely wrong as new discoveries are found. We have made clear already that in each round of licensing the criteria governing licences should include the contribution to the British economy made by an applicant, including the growth of industry and employment, that the Governent will watch carefully to see that the companies give full and fair opportunities to British industry and that they will have regard to this when any future applications for discretionary licences are being considered.

Mr. Wolrige-Gordon

I congratulate my right hon. Friend on the pace of his performance so far, but is he aware that there is concern lest the provision of services lags behind the needs of development? Can he assure us that the houses, roads, schools, hospitals and so forth will be provided on time?

Mr. Campbell

My hon. Friend is absolutely right. This concerns the Government greatly, and the Scottish Office is responsible for a large part of the infrastructure. We have been working out plans to this end, and our plans have to be adjustable so as to take account of new discoveries and new announcements about the development of these oil fields.

Mr. John Smith

The Secretary of State has said that the Government take into account the contribution of companies to British industry. Is he aware that there is great dissatisfaction because Scottish industry has not received sufficient consideration in relation to licences already awarded? What changes will he make in the way licences are allocated in the future to avoid this discontent?

Mr. Campbell

I made a statement earlier about our policy regarding licences, and I repeated it a minute ago. Licencees are obliged under their licences to inform the Government immediately of the facts which they discover. I am pleased that some Scottish firms have reacted extremely quickly and have made special efforts, including visits overseas, to get business. I should like more to do so.

24. Mr. Robert Hughes

asked the Secretary of State for Scotland if he will make a statement on his Department's development policy in relation to North Sea oil.

Mr. Gordon Campbell

The Government's policy is to promote the rapid and thorough exploration and development of the oil discoveries in the United Kingdom Continental Shelf for the benefit of the United Kingdom economy including Scotland. The Scottish Office is concerned to ensure that the action necessary to achieve this is undertaken in good time and in an orderly and acceptable way for the benefit of Scotland.

Mr. Hughes

Is the Secretary of State aware that soon upwards of 100 oil rig supply vessels will be required for the servicing of production rigs? Is he aware that the United States Government is giving at least a 16½ per cent. subsidy to vessels built in the United States and that the Scottish shipyards especially are finding it difficult because of that subsidy to get such orders? Will the right hon. Gentleman take urgent action at least to match that subsidy to make sure that the Scottish yards get a high proportion of this work, which is badly needed?

Mr. Campbell

As the hon. Gentleman knows, a subsidy for shipbuilding is not my responsibility, but no doubt his comments will be noted. What he has said underlines the rapidity with which we have acted in order to get oil rig servicing, harbour facilities and so on at Peterhead and Montrose and at other places from Shetland to the Border.

Mr. Wolrige-Gordon

I congratulate my right hon. Friend on the success of his oil development policy so far. Does he not agree that there is a need to think and plan now about and for the industry that is to follow the exploration and production phase of the oil industry in order to ensure that the much feared dangers of dereliction do not materialise?

Mr. Campbell

My hon. Friend is touching on an issue which we regard as important, the prevention of possible pollution or dereliction. I am glad to say that those industries that have so far set up have been pollution free and are such as to have caused very little trouble. I have noticed that following the policy discussion document published by the Opposition—"Labour's Programme for Britain"—the Labour Party conference passed a resolution advocating public ownership and control of the oil industry. which does not hold out much hope for the industries that have been mentioned by my hon. Friend.

Mr. Russell Johnston

I am sure that the Secretary of State would agree that it is necessary and desirable that the Highlands and Islands should gain development benefit from oil. Has he seen the page advertisement in The Times today about areas for expansion, omitting both the Highlands and the North-East of Scotland? Will he consult the Department of Trade and Industry about that?

Mr. Campbell

I take note of what the hon. Gentleman has said. Both his constituency and mine appear to have been missed out.

Mr. Ross

Is the right hon. Gentleman able to say when the report of the study being conducted for the Government by the International Management and Engineering Group of Britain will be completed and published? In view of the importance of this subject and the interest in it, would it not be a good idea if next Session it were to be the subject of special discussion and study by the Select Committee on Scottish Affairs?

Mr. Campbell

The recommendations to be made by the group making the study will become available soon. The right hon. Gentleman's second question is not a matter for me, but it could be considered with other possible subjects for a Select Committee.