HC Deb 14 June 1976 vol 913 cc19-20
14. Mr. Dykes

asked the Secretary of State for Energy what plans he has drawn up to achieve the use in the future of a higher proportion of British equipment in North Sea oil exploration and production.

Dr. J. Dickson Mabon

The Government are satisfied with the successful working of the procedure set out in the Memorandum of Understanding and Code of Practice negotiated with the United Kingdom Offshore Operators Association last November, which provides for full and fair opportunity to be given to British industry to compete for the supply of goods and services to the United Kingdom offshore market.

Mr. Dykes

If that means that the Minister believes that the industry is at fault in not being more adventurous and positive in producing equipment, and so on, will he gather together representatives of the industry for a conference before the next round and include this as a theme at the forthcoming National Energy Conference?

Dr. Mabon

The hon. Gentleman would do us a great favour if he looked at the Brown Book and saw that the offshore industry had responded very well. It is now subscribing about 50 per cent. of the supplies to the North Sea. But I take the hon. Gentleman's point. It is right that the Government should be in constant touch with representatives of the industry. We have regular meetings with them and we want to do better.

Mr. Dalyell

Is not the truth of the matter that in order to succeed the United Kingdom industry must not only supply the North Sea but export to markets as far apart as China and perhaps Brazil, which have similar problems? What have my hon. Friend's officials learnt since he unfortunately had to return urgently from the Houston conference without spending time there about how we should increase exports in this area?

Dr. Mabon

They have learnt a great deal. We had today the pleasure of receiving the Indian Minister. The Indians made known to us at the offshore exhibition that they are interested in our offshore technology. We have this very day been in discussions with them about the possibility of contracts. We have listed a number of firms in Great Britain which may well serve them well.

Mr. Viggers

Is not the failure to construct underwater pipe a scandal that should be laid at the door of the nationalised British Steel Corporation? Is not this a market which, even at this late hour, we can break into, perhaps in conjunction with the Norwegians?

Dr. Mabon

This is a sore point for both Great Britain and the United States. In the Alaskan pipelaying exercise it is not American steel that is being used. We have been very anxious that the common gas collecting system prescribed by the Williams-Merz Report should use British steel. The British Steel Corporation has agreed to look at the exercise and to consider the possible development of its Hartlepool plant to that end.