HC Deb 12 January 1976 vol 903 cc9-10
6. Mr. Les Huckfield

asked the Secretary of State for Energy whether he will make a further statement on the Burmah Oil Company.

Mr. Benn

As I told the House on 3rd December, the Government have offered to purchase the whole or a substantial part of Burmah's North Sea oil assets at an arm's length price for transfer to the British National Oil Corporation. Negotiations for the purchase of the Ninian assets are under way and an advance of £40 million has been made to Burmah on this account. I shall keep the House in touch with developments.

Mr. Huckfield

I support the general policy line that my right hon. Friend has taken, but is he convinced that in going for the acquisition of one field rather than two the BNOC will be getting the best bargain? Is he convinced that £40 million will be enough to support these operations in future?

Mr. Benn

I must make it clear to my hon. Friend that I have not gone beyond what I said in the House on 3rd December, namely, that the Government have offered to buy the whole or a substantial part of these assets. My hon. Friend should not read into my answer any shift from that position. The £40 million advance has been carried out by giving a specific directive to the BNOC under the Act. It is not intended to be on any basis other than as an advance against the purchase that may emerge from the negotiations.

Mr. Patrick Jenkin

Is it not bizarre that on the very morning that Transport House is warning them that even to stick to their public expenditure proposals will mean a 10 per cent. increase in the rate of every tax, across the board, the Government should be squandering this money on buying out the private sector? Why do they persist in this futile doctrinaire approach to one of Britain's most important industries?

Mr. Benn

The object of the Government's policy is to safeguard the development of the Ninian and Thistle fields. If the right hon. Gentleman knows as little about Transport House as he does about the oil industry, we have little to fear from his criticism.