HC Deb 30 June 1975 vol 894 cc1010-1
13. Mr. Ovenden

asked the Secretary of State for Energy if he has yet made a decision concerning the acquisition of the British Petroleum shares at present held by the Bank of England.

21. Mr. David Price

asked the Secretary of State for Energy if he will now make a statement on the Government's policy with respect to the public sector's recently acquired 70 per cent. stake in British Petroleum.

Mr. Benn

As my right hon. Friend told my hon. Friend the Member for Gravesend (Mr. Ovenden) on 24th February, the question of the BP shareholding is still under consideration. In reaching our decision we shall need to take full account of the national interest.

Mr. Ovenden

Will my right hon. Friend confirm that British Petroleum has effectively been in public ownership for over six months and that the Government have been prevented from exercising any control over that company because of the division of ownership between the Government and the Bank of England? Before the Bank of England is permitted to dispose of the former Burmah shares on the open market, will my right hon. Friend consider the desirability of taking British Petroleum into public ownership, as the basis for the British National Oil Corporation, rather than expecting the BNOC to operate in complete isolation from the rest of the oil industry?

Mr. Benn

Without prejudice to the latter question, which is on a quite different matter, I can assure my hon. Friend that the decision about these shares will be a Government decision and that it will not be taken without regard to our national interest, as best we can identify it.

Mr. Rost

What benefit does the Secretary of State expect to reap if he decides to take the Burmah holding on behalf of the Government?

Mr. Benn

That is a much wider question. Clearly, the Government's holding in BP, which goes back over many years, provides for the nation an important holding in an important industry which is becoming even more important as time goes by. I could not debate such a very wide matter of long established public policy in answer to a supplementary question.

Mr. Hardy

Will my right hon. Friend take into account the fact that, bearing in mind all the implications of the international role of that company, it may be useful for it to demonstrate that it possesses a real measure of independence?

Mr. Benn

I recognise that fact. That was made clear in the original exchange of letters between the Treasury and the company at the time that the Government's holding was first acquired.