HC Deb 14 May 1973 vol 856 cc1005-7
13. Mr. William Hamilton

asked the Secretary of State for Trade and Industry what progress has been made on discussions with the oil companies and other interested bodies concerning North Sea oil following the publication of the IMEG report and that of the Public Accounts Committee; and if he will make a statement.

17. Mr. Strang

asked the Secretary of State for Trade and Industry what further representations he has received with regard to the Government's implementation of the IMEG report; and if he will make a statement.

Mr. Peter Walker

The Department is in continuous touch with a wide range of interests in its follow-up work on the IMEG report.

Mr. Hamilton

That, too, is tedious repetition. Is the right hon. Gentleman aware that the principal recommendations of both the IMEG report and the Public Accounts Committee have not been implemented, nor have the Government made appropriate noises to suggest that they might be? Does the right hon. Gentleman recall that the principal recommendation of the IMEG report was the setting-up of a Petroleum Supply Industry Board, which would require legislation? Will the right hon. Gentleman undertake to ensure that that legislation is introduced at the earliest possible moment, and also that the Chancellor of the Exchequer will announce that he accepts in principle the need for a barrelage tax?

Mr. Walker

My answer to the first question is that I made it clear on receipt of the report that we thought the most effective and speedy way of taking action and getting full advantage and quick use of the Industry Act was not to set up a separate petroleum board. As regards the progress that is being made, I know the hon. Gentleman will be pleased to know that up to the end of April 4,200 new jobs had been created in Scotland, and a further 8,900 are in prospect with firm projects.

Mr. Strang

Is the right hon. Gentleman aware that the hastily conceived and as yet inadequately thought-out arrangement announced at the weekend falls a long way short of the necessary Government structure that is required in Scotland for the development of North Sea oil? If the Government are not prepared to establish a powerful Oil Development Board in Scotland, surely the Minister must concede that there is an overwhelming case for moving the headquarters of the Offshore Supplies Office to Scotland and putting it and the Scottish petroleum office with the task force under one roof under Lord Polwarth?

Mr. Walker

Rapid progress is being made in this sphere, much faster than Labour Members are willing to concede. About 200 inquiries a week are being processed by this new section and a great deal of information is being obtained by the American oil companies which are of great benefit to Scotland. Besides that, there is the flexibility of the Industry Act.

My answer to the point raised by the hon. Member for Fife, West (Mr. William Hamilton) about a barrelage tax is that the Chancellor of the Exchequer has announced substantial changes in taxation.

Mr. Hamilton

He has not.

Mr. Walker

He filled an important gap—something which the Labour Government failed to do.

Mr. Laurance Reed

Will my right hon. Friend say what discussions he has had, or will have, with the European companies or European Governments about collaboration in this respect, as recommended by the IMEG report?

Mr. Walker

We are discussing all aspects of energy with the Common Market countries. There is a great deal of scope for liaison in many spheres of future offshore developments.

Mr. Eadie

As the Government's policy announced from their Front Bench last Monday has been described in Scottish newspapers as a policy of muddle and incompetence, may I ask the right hon. Gentleman whether the announcement of the so-called trouble-shooter is an attempt to some extent to offset one of the most disastrous Scottish Conservative conferences that there has been for some time? The right hon. Gentleman will have observed that there is no Scottish Conservative Member present today. Why was the appointment not announced in this House of Commons? Why should the appointment go to a noble Lord who is not accountable to this House of Commons? We are entitled to know.

Mr. Walker

On the question of the conference, all I can say to the hon. Gentleman is that I was encouraged by the swing to the Conservatives at the recent elections. As regards the development of North Sea oil it is right constantly to take action to improve liaison between the Scottish Office and my office in these developments. I believe that the appointment of the noble Lord will considerably benefit that.