Offshore Oil (Hansard, 2 April 1973)

§ 8. Mr. Ewing
asked the Secretary of State for Trade and Industry when he expects to announce the setting up of a British offshore oil drilling capability as recommended in the IMEG Report.

§ The Under-Secretary of State for Trade and Industry (Mr. Peter Emery)
A number of British companies have already announced steps they have taken to enter the field of offshore drilling. Some further possibilities are being discussed with my Department.

§ Mr. Ewing
Does the Under-Secretary realise that one of the key recommendations of the IMEG Report, published in 8 January of this year, was that British companies ought to get in on the ground floor, so to speak, in offshore drilling for oil and gas? Can he confirm or deny the report by Chapman Pincher which appears on the front page of the Daily Express, that the Government have sold British companies short once again and have given away North Sea oil and gas to another American company?

§ Mr. Emery
The answer to the first part of the supplementary question is that it was one of the recommendations. The hon. Gentleman may have seen that Mr. Gibson, of the Offshore Supplies Office, told the Aberdeen Offshore Conference two weeks ago that the IMEG recommendation which appeared to be the most difficult is developing as one of the easiest to implement.
Although the second part of the question is not entirely relevant here— [Interruption.]—I mean, not entirely relevant to the subject of drilling—I wish to make it absolutely clear that the Department will ensure that British interests are fully safeguarded and, what is more, that a full and fair opportunity is given to British companies. We are striving so to do.

Mr. Edward Taylor
Does my hon. Friend agree that there is not much point in trying to force oil companies to give more orders to British firms when our own nationalised British Steel Corporation cannot provide the overland as well as the undersea pipes? Will he do what he can to ensure that our steel industry is in a position to take orders which are offered to it on a plate?

§ Mr. Emery
Yes, Sir.

§ Mr. Douglas
Does the Under-Secretary accept that there is grave disquiet throughout the country at the way in which the gas situation, in particular, is now being handled? Will he undertake that when events are clarified he will make a full and frank statement to the House on who has got this company which is to be transferred from Gulf Oil?

§ Mr. Speaker
Order. I have allowed considerable latitude, but that supplementary question is really about gas and not oil.

§ Mr. Mason
The Minister cannot get away with it like that. He has accepted 9 some responsibility, because he has answered a supplementary question. It concerns the North Sea, whether it be gas or oil. Will the Minister tell the House whether a decision has been taken to—

§ Mr. Speaker
Order. I must adhere to my decision. The Question deals with British offshore oil drilling. We must stick to that. There may be another opportunity for the right hon. Gentleman to raise his other question.

§ Mr. Mason
I am sorry, Mr. Speaker, but I submit that it concerns both gas and oil. Both gas and oil were struck in this instance, and the oil companies are involved—

§ Mr. Speaker
Order. The Question deals with the British offshore oil drilling capability, and I can allow supplementary questions only arising out of that.

§ Mr. Douglas
On a point of order, Mr. Speaker. I fully respect your ruling, but the Question refers to the IMEG Report and, with great respect, I submit that that covered the potentiality of British industry to serve all aspects of North Sea developments.

§ Mr. Speaker
In fact, the Question is limited to a certain section of the IMEG Report. Perhaps there will be a later opportunity to raise the other matter.

§ Mr. Mason
It concerns offshore drilling, Mr. Speaker, and we are asking the Minister, first, whether a decision has been taken already to transfer the Rough gasfield—

§ Mr. Speaker
Order. Even the Front Bench must obey my ruling.

§ Mr. Dalyell
Reverting to the Minister's answer, in which he spoke of a full and fair opportunity, may we know whether such full and fair opportunity was given to British firms in what has turned out to be the Amoco contract?

§ Mr. Emery
As I told the House earlier, the Department and the Government wish to do everything possible to ensure full and fair opportunities for British firms. No decision has yet been made on the transfer of Rough.

§ Mr. Douglas
On a point of order, Mr. Speaker. In view of your ruling and 10 the answer I received from the Undersecretary of State, I beg to give notice that I shall seek to raise the matter of the Government's administration of Continental Shelf production and exploration licences on the Adjournment at a suitable time.

§ Mr. Speaker
Well, at all events, the hon. Gentleman has got away with that.