HC Deb 19 July 1976 vol 915 cc1266-8
8. Mr. Arnold

asked the Secretary of State for Energy what additional orders for drilling rigs and production platforms can reasonably be expected from the next round of licences for oil and gas exploration in the Continental Shelf.

Dr. J. Dickson Mabon

It is not possible to make firm estimates at present because there are too many uncertainties involved. The number of rig orders will depend on the response to this round, the drilling obligations agreed with successful applicants and the availability of existing rigs. Orders for production platforms will depend on the number and nature of any hydrocarbon deposits discovered.

Mr. Arnold

How can the Government be so certain that the process of consultation with the oil companies, the trade union movement and other industries will of itself automatically ensure success and get the best possible bargain without endangering the success of the next round of licensing?

Dr. Mabon

Frankly, I cannot understand that question. If the hon. Gentleman cares to rephrase it in a way that I can appreciate, I shall be happy to reply.

Mr. Arnold

How can the Government be so certain that the process of consultation with all the parties concerned will of itself succeed in getting the best possible bargain without endangering the success of the round of licences to which the Minister has referred?

Dr. Mabon

I think that all industries, not only the oil companies—I shall do my best to answer the question—including the trade unions and those involved with the ancillary industries, prefer to be consulted. We have had some rather disappointing experiences from the fourth round. There was a great deal to learn from that, and we are anxious to learn from the past. The consultations will not prove everything, but they will help us in making the fifth round a success.

Mr. Dalyell

On the basis of the last part of my hon. Friend's answer, if it is true that further hydrocarbon discoveries will make the outlook better, will this help Methil?

Dr. Mabon

Yards such as Methil are involved in steel platform orders. There may be one in 1977. Methil will be competing for that. If it is successful, its future will be assured for some time. However, as I said to my hon. Friend the Member for Fife, Central (Mr. Hamilton), Methil and similar yards get on with ancillary work if they can compete successfully for it.

Mr. Viggers

Does not the hon. Gentleman agree that there might have been employment advantages if the fifth round could have been brought forward instead of the Government having a row about participation with the companies?

Dr. Mabon

That is not true. The hon. Gentleman is not being fair to us. I am not blaming the Tory Party in any way, as we might have made the same error, but the great mistake was that the fourth round was too large and was spread over too long a period. We are trying to conduct smaller rounds more quickly, and I hope that the fifth round will be allocated later this year.

Mr. Skinner

If I may try to clarify the situation stated by the hon. Member for Hazel Grove (Mr. Arnold), perhaps my hon. Friend could understand it better if he appreciated that what the hon. Member was trying to say was that the Government having taken the oil away from the oil companies, why should the oil companies, on the basis of losing all this wealth, discuss further licences with the Government? Is it not the case that, if only the hon. Member for Hazel Grove would divert his attention away from the Daily Telegraph and look at what is really happening, he would find that we are not taking sufficient oil away, contrary to what we said we would do in our manifesto, and my hon. Friend would be able to appreciate, understand and answer the hon. Gentleman's supplementary question?

Dr. Mabon

The fact is simple. If one reads the Daily Telegraph, as the hon. Member for Hazel Grove (Mr. Arnold) recommends, and the Morning Star, to which my hon. Friend the Member for Bolsover (Mr. Skinner) contributes, one finds that the truth lies in the middle.

Mr. Gray

May I suggest to the Minister that he should draw the attention of all firms concerned to the initiative shown within the last few days by Highland Fabricators of Nigg Bay, which has made an arrangement with EMH of France to promote in this country a new and highly sophisticated articulated column design which will help considerably in the exploration of marginal fields?

Dr. Mabon

I welcome that development very much and I congratulate the hon. Gentleman on adding yet another boost to his constituency.