HC Deb 23 January 1973 vol 849 cc213-4
Q1. Mr. Douglas

asked the Prime Minister if he remains satisfied with the co-ordination between the Scottish Office and the Department of Trade and Industry and the Department of the Environment with regard to the formulation of policy for the development of North Sea oil and gas pending the publication of a White Paper; and if he will make a statement.

The Prime Minister (Mr. Edward Heath)

Yes, Sir. I am satisfied that there is close co-ordination between Departments on this matter. I do not think a White Paper would be appropriate: a report to Parliament was presented on 16th January and Government measures are announced as the opportunities develop.

Mr. Douglas

Does not the Prime Minister accept that the response to the IMEG report by the Government has been puerile and timorous in setting up a branch office of the Petroleum Industry Supply Board in Glasgow? How many civil servants or others will that branch office employ? Will not the Prime Minister update the figures of reserves in the North Sea so that we can see the full potential of the finds there?

The Prime Minister

No, Sir. The Government's response to the report has been to put in Scotland as large a share as possible of the organisations concerned in this important development. It is right that it should be allied to the organisation which exists here in White- hall; I am sure that is the best way to produce results. Any estimate of reserves must depend on progress made in drilling in the North Sea. From time to time we give estimates and try to keep them up to date as far as possible.

Mr. Wolrige-Gordon

Will my right lion. Friend say whether the new development committee, which incorporates civil servants from both Departments mentioned in the Question, has any locus in planning matters as well as in development questions?

The Prime Minister

I think that the planning questions will remain with the normal authorities, but the Scottish Petroleum Office will be part of the Scottish Industrial Development Office in Glasgow. There will also be a branch of the DTI Petroleum Division in Glasgow. This, combined with the North Sea Oil Development Committee as part of the Scottish Economic Planning Board, should cover the ground.

Mr. Russell Johnston

The Prime Minister should be aware of the fact that there is a good deal of dissatisfaction in Scotland at the lack of power in the Scottish Office to take any initiative on likely oil revenues and environmental control of associated developments. Will he reconsider the establishment of some sort of development corporation, as has been suggested by the Scottish TUC and the Scottish Council, which could have a much more direct control over oil policy in Scotland?

The Prime Minister

I am fully prepared to consider proposals of this kind but I emphasise that we gave much consideration to this organisation as a result of the report we received. I do not agree that the Scottish Office is inhibited in taking the initiative. Indeed, many people have paid tribute to the speed with which matters have advanced in Scotland. The Scottish Office has stepped in to prevent any undesirable environmental effects.