HC Deb 29 November 1976 vol 921 cc453-4
4. Mr. Andrew F. Bennett

asked the Secretary of State for Energy if he is satisfied that enough of the equipment required to exploit North Sea oil is being manufactured by United Kingdom firms and actually made in factories in the United Kingdom.

The Minister of State, Department of Energy (Dr. J. Dickson Mahon)

The Government's aim is that United Kingdom firms should supply, on a competitive basis, an increasing proportion of the domestic offshore market. We have made good progress so far. In 1975 United Kingdom firms won orders worth £613 million or 52 per cent. of the market. The figures in 1974 were £516 million and 40 per cent. of the market. In capital goods the percentage was 63 per cent. in 1975 compared with 47 per cent. in 1974. The indications are that this progress will be maintained this year.

Mr. Bennett

Is the Minister satisfied that orders obtained by United Kingdom divisions of multinational companies are carried out by workers in the United Kingdom—or are they actually carried out by workers in other countries, therefore making the figures better than they really are?

Dr. Mabon

The Offshore Supplies Office audit engineers keep the United Kingdom content of orders under constant review. Under the precise terms of the memorandum of understanding and code of practice which we agreed with the United Kingdom Overseas Operators' Association last year, and which ensures that the United Kingdom has a fair opportunity to compete, we are able to examine bid summaries and all relevant documents involved in the major contracts.

As of now, I am satisfied that the figures that we have just given fairly reflect the British contribution, but I shall keep them under strict review.

Mr. Gray

Could not those figures be greatly improved if the present Government's policies towards the industry were changed? There are a number of firms which could diversify to take advantage of the opportunities offered if Government incentives were made more attractive.

Dr. Mabon

That is too general a question to answer properly. We want firms to diversify and we have encouraged them to do so. I am not sure in what way we are defective in not helping them.

Mr. Gordon Wilson

Why cannot the Scottish Offshore Supplies Office produce similar figures? Is it that it dare not supply the figures because it has failed to give preference to Scottish firms?

Dr. Mabon

That is not so. The bulk of work is done in Scotland. It would cost a lot of money to go through all the contracts in order to supply the figures, and Parliament is strict about trying to answer questions that are pointless.