HC Deb 22 March 1973 vol 853 cc631-2
1. Mr. Eadie

asked the Chancellor of the Exchequer when he expects to finish consultations and make a statement on how taxation policy will operate in relation to North Sea Oil.

The Chancellor of the Exchequer (Mr. Anthony Barber)

I expect the consultations referred to in my Budget Statement to be finished in time for legislation on artificial losses to be included in next year's Finance Bill.

Mr. Eadie

The right hon. Gentleman must agree, however, that the statement of intent which he made during his Budget proposals has certainly stirred up a great deal of interest in the country. Will he give the House the categoric assurance that whatever proposals he presents, he will certainly be concerned about the people of this country, and the country in general, rather than about the welfare, or future welfare, of the oil companies?

Mr. Barber

The consultations to which the hon. Gentleman has referred were consultations which I mentioned in the course of my Budget speech, and they were about current losses and accumulated losses. I explained then that I would be having these consultations. With regard to the wider matters, I said in the Budget Statement that the Government already had under consideration the other important questions affecting licensing terms and the Government's take from operations on the United Kingdom Continental Shelf.

Mr. Marten

How will the Norwegian companies which operate in their part of the North Sea but which send their products through pipelines to England fare under this scheme?

Mr. Barber

I could not, off the cuff, answer a question about particular companies, or various companies in particular circumstances. That would not be wise. If my hon. Friend will write to me, or table a Question, I shall try to answer him.

Mr. Sheldon

As neither oil nor profits have so far been extracted from operations in the North Sea, will the Chancellor of the Exchequer what he estimates will be impeded in any way, by either the introduction of a barrelage tax or a change in the way in which profits are computed for taxation, in raising any money that he thinks fit?

Mr. Barber

Obviously a Chancellor is not impeded by what his predecessors have done. In reducing taxation I have not been impeded by what my predecessor did.