HC Deb 17 January 1977 vol 924 cc6-8
3. Mr. Goodhart

asked the Secretary of State for Energy whether he will make a statement about his policy towards British Petroleum.

Mr. Benn

I have nothing to add to previous Government statements.

Mr. Goodhart

When the Government come to implement the Chancellor's announcement that there will be a sale of certain shares in BP, will they intend that these are placed with foreign financial institutions, or will ordinary British investors have a chance to buy as well?

Mr. Benn

There is another Question on this matter specifically on the Order Paper, and I cannot quite see the hon. Member's point. From the time when Sir Winston Churchill recommended to the House in 1914 that shares in the Anglo-Persian Oil Company should be acquired, these shares have always been held by the Treasury, and it falls to Treasury Ministers to answer these Questions.

Mr. Atkinson

Is it not the logic of Government policy to sell off these shares down to a 51 per cent. holding, and is it not now the intention of the Government to go below the 51 per cent. State holding in BP? If that is so, is not the logic of that that it is not the Government's intention to extend their holding in any part of North Sea oil? Is not this contrary to all statements made by the Labour Party and statements issued by this Administration? Will the Secretary of State tell us his position on the future of the industry and of the State holdings as well?

Mr. Benn

I cannot add to the statement made on BP because this matter falls to the Chancellor. The statement he made before Christmas did not contemplate the reduction of the holding below 51 per cent. As far as BNOC and the Government's holding in the North Sea is concerned, I think my hon. Friend's hopes will be realised. We are nearing the fifth round and an announcement will be made in a few weeks. BNOC will have throughout a 51 per cent. equity holding in all new licences. This situation has never prevailed before.

Mr. Gray

Will the Secretary of State give an assurance that if perchance BNOC finds itself with something in excess of 51 per cent., the same procedure will he followed as was followed in the case of BP?

Mr. Benn

No, I cannot give such an assurance. We said we would have majority participation in the North Sea in the fifth round and we seek to get, by voluntary agreement, access to 51 per cent. of existing licences. There will be nothing to limit BNOC from developing into a powerful State oil company standing up world-wide for the interests of this country.