§ 34. Mr. Cryerasked the Chancellor of the Duchy of Lancaster what is the expected output of the oil companies in which a 51 per cent. stake has been agreed.
§ 35. Mr. Canavanasked the Chancellor of the Duchy of Lancaster whether he has now completed negotiations with the oil companies on participation; and if he will make a statement.
§ 36. Mr. Skinnerasked the Chancellor of the Duchy of Lancaster what further negotiations are proceeding with oil companies regarding the British Government's participation.
§ 37. Mr. Rostasked the Chancellor of the Duchy of Lancaster how many oil companies have now surrendered in principle a 51 per cent. interest in their North Sea assets, as a result of his negotiations.
§ The Chancellor of the Duchy of Lancaster (Mr. Harold Lever)As I explained to the House on 25th June, we are having constructive and detailed discussions with a substantial number of companies with interests in the North Sea. The discussions will inevitably take some time, but I shall be keeping the House informed of progress. Four corn-panics have agreed in principle to 51 per cent. Government participation in their commercial oilfields in the North Sea. Estimates of the output of individual companies are kept confidential, so as not to damage the companies' commercial interests.
§ Mr. CryerDoes my right hon. Friend accept that the four companies he has named are minor ones? Does he agree that in regard to the major oil companies, for us to gain a 51 per cent. stake, reserve powers of compulsory purchase will be needed? Will he assure the House that when the Bill for reserve powers against trade unionists to keep wage claims down to £6 comes before the House he will also recommend to his Cabinet colleagues 1502 that there should be reserve powers to buy the 51 per cent. stake in the oil companies? Does he agree that it would make a welcome change for reserve powers to be used to carry out Labour Party policy?
§ Mr. LeverI think that my hon. Friend is wrong in believing that the four companies concerned can be described as small companies. I am in discussion with 20 companies, large and small, United Kingdom and foreign, and these discussions are proceeding very satisfactorily.
I am very hopeful that we shall conclude these negotiations without having any recourse to reserve powers, and I hope that we are equally successful in the case of our industrial policy.
§ Mr. RostAs nationalising 51 per cent. of the North Sea will cost about £1,000 million, and yet the Government have declared that it will he on a basis of a no-loss, no-gain in profits to either the companies or the Government, what is the point of proceeding with this damaging, inflationary and doctrinaire exercise?
§ Mr. LeverThe hon. Gentleman has asked the same question in almost the same words on many previous occasions. I do not complain that he worries about the point like a dog with a bone, but he is confusing cash flow with costs. Any money that the Government advance in terms of the North Sea will represent a wise investment, in the interests of the British people. It will be virtually risk-free and will come back in a relatively short time with an appropriate additional return. Accordingly, the hon. Gentleman is mistaken not only as to the consequence but in his speculation about the amount of money involved.
§ Mr. CanavanBearing in mind that these secret talks have been going on for about eight months, and agreement has been reached with only four out of a total of about 40 companies involved, is there not a danger that oil production will be delayed as a result of those protracted negotiations, at a time when our balance of trade deficit in oil is running at over £200 million a month? Does not my right hon. Friend think that, in order to 1503 expedite our plans for participation, additional legislation is necessary, instead of just continuing to pussyfoot around with the oil companies?
§ Mr. LeverI hope that my hon. Friend does not find it unwelcome that the negotiations are conducted in private. I hardly think that it would advance our interests if they were conducted otherwise.
As regards hastening the delivery of North Sea oil, it is not in the least delayed by the negotiations, and certainly would not be hastened by the kind of suggestion that my hon. Friend has in mind.
§ Mr. Gordon WilsonDo the Government still intend to take an overall 51 per cent. share in the North Sea oilfields? What legal drawbacks is the right hon. Gentleman finding in the negotiations? If he succeeds in obtaining 51 per cent. participation in the fields on a no-gain basis, will not that mean that the Government are involved in a face-saving gesture to perform the miracles of the manifesto with no intention of carrying them out in fact?
§ Mr. BurdenDoes the right hon. Gentleman intend to approach the Arab oil countries to obtain the money to invest in the oil companies that the Government propose to take over? Have the Arab countries expressed any desire to lend money for such a purpose?