HC Deb 21 February 1977 vol 926 cc1014-5
6. Mr. Dykes

asked the Secretary of State for Energy if he is satisfied with the latest North Sea oil exploration allocations to applicants under the fifth round.

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

Yes, Sir. As the hon. Member will now know, my right hon. Friend made a statement on this matter on 9th February.

Mr. Dykes

Why was it not possible for the Secretary of State to give more encouragement to the many smaller British companies which applied?

Dr. Mabon

If the hon. Gentleman looks again at the names that were published on 9th February, he will see that a number of smaller British firms are in this allocation. We hope that there will be more frequent allocations than in the past.

Mr. Madden

What progress is being made in the dispute between the British and Irish Governments about the ownership of certain blocks?

Dr. Mabon

The Irish Government, unhappily, counter-designated two of our blocks—[Interruption.]—I am using the correct word—the two blocks mentioned in the fifth round. On Friday the United Kingdom Government lodged a formal protest with the Irish Government and also intimated to them that we wished some form of judicial determination to be agreed between us.

Mrs. Bain

Does the right hon. Gentleman agree that although much has been learned since the first round of allocations of exploration licences, when they were handed out like lollipops to children, there is still a great deal that the Government could do to ensure that the wealth from oil goes back to the economy and is recycled to ensure long-term job prospects for the people in Scotland?

Dr. Mabon

I am grateful for the hon. Lady's support. Since the last round we have instituted the British National Oil Corporation, we have the petroleum revenue tax and we have taken other measures which bring the take for the British people up to about 85 per cent. of what is produced.

Mr. Gray

Why have the Government deviated from their declared policy of not arm-twisting in connection with the allocation of licences, when a company with the experience and expertise of Amoco has been excluded in the present round?

Dr. Mabon

I cannot discuss any particular application, because the applications are confidential. I hope that our discussions with Amoco will be continued.