North Sea Oil (Hansard, 14 March 1973)

§ 1. Mr. Douglas
asked the Secretary of State for Scotland if he will initiate a discussion on the IMEG report on the next occasion he takes the chair at the Scottish Economic Council.

§ The Secretary of State for Scotland (Mr. Gordon Campbell)
As I informed the hon. Member for Central Ayrshire (Mr. Lambie) on 21st February, all aspects of oil development are regularly discussed at meetings of the Scottish Economic Council. The IMEG report in particular was on the council's agenda for its last meeting on 9th February when the head of the Offshore Supplies Office of the Department of Trade and Industry was present. The council will continue to keep the matter under regular review.—[Vol. 851, c. 95–6.]

§ Mr. Douglas
I thank the Secretary of State for that answer. How does he propose to keep the IMEG recommendations monitored in Scottish terms? How does he propose to dissuade his ministerial colleagues in the Department of Trade and Industry from thinking exclusively of London as the oil capital of the world and to get them to recognise that Scotland should become the offshore oil development capital of the world?

§ Mr. Campbell
Besides the Scottish Economic Council, there are the Committee of the Scottish Economic Planning Board and various other bodies which have been set up to keep all questions of North Sea oil under consideration. As 1264 regards the new body, the Offshore Supplies Offices, the new Scottish Petroleum Office is working closely with its neighbour in Glasgow, the Scottish Industrial Development Office, and is effectively equipped to stimulate and advise Scottish industry on all kinds of opportunities which are becoming available through the supply of North Sea oil.

§ Mr. Ross
Is the Secretary of State satisfied that the establishment of this minuscule offshore oil office in Glasgow will meet the needs of Scotland in terms of oil development?

§ Mr. Campbell
It is what is required to carry out the job of stimulating and advising Scottish industry as a whole. The Scottish Industrial Development Office covers the whole of Scottish industry and is its neighbour. It is most important to get industries which did not realise it before to appreciate that they now have an opportunity to take advantage of the supply of North Sea oil and all that this means in terms of the many products which will be needed. I believe that in regard to North Sea oil the centre of gravity of the oil industry in Britain will move north. Indeed, I think it is starting to move north and I shall do everything possible to encourage it.

§ 11. Mr. William Hamilton
asked the Secretary of State for Scotland what steps he is taking to implement the recommendations of the IMEG report on North Sea oil in so far as they fall within his responsibility.

§ Mr. Gordon Campbell
The IMEG report recommended that urgent attention be given to infrastructure. This is being done through the Scottish Economic Planning Board and its North Sea Oil Development Committee.

§ Mr. Hamilton
Is the right hon. Gentleman aware that it went much further than that? Does he not agree that Scottish industry still seems to be losing out on the enormous opportunities which are available to it? Does he agree that the Chancellor's statement in the Budget will ensure that we get an adequate return on revenue from the enormous profits which will be made from oil? Was he consulted before that statement was made, and did he agree with it?

§ Mr. Campbell
First, my answer was to the Question about the parts of the IMEG report falling within my responsibility, and that is what I have stated, that it is broadly infrastructure. But of course there were other recommendations which fall within the responsibilities of my right hon. Friends. These are all being considered. The Government are, of course, taking into account the important report by the Public Accounts Committee on this subject, and that was what the Chancellor did in his Statement.

§ Mr. Wolrige-Gordon
What are the means of communication between the central planning board and the various local planning authorities, and how is that carried out?

§ Mr. Campbell
The Economic Planning Board, which is the body to which I think my hon. Friend is referring, consists of the permanent representatives of all Government Departments and nationalised industries. That works for the Scottish Economic Council, but it is in touch with and has representatives on all the central Government bodies which are operating in the field. It is of course in direct touch with local authorities. Where planning is concerned, local authorities are planning authorities and there is the procedure of the Town and Country Planning Acts for Scotland, which brings in the Secretary of State in certain important matters.

§ Mr. Strang
But is it not high time that the Government got on with some of the major recommendations of the IMEG report with regard to Scottish industry? In particular, when will they take action, which is overdue, to ensure that Scottish East Coast shipyards obtain a substantial share of the important market for supply vessels?

§ Mr. Campbell
On the first point, the Government have already taken action on some of the recommendations which could be acted on straight away. This was announced, and others are still being considered. The question of shipbuilding has been raised many times in the House and is a matter for my right hon. Friend the Secretary of State for Trade and Industry, although of course we would all like to see work of this kind for British yards, and particularly for Scottish yards.