HC Deb 04 July 1977 vol 934 cc872-3
15. Mr. Gray

asked the Secretary of State for Energy what recent consultations he has had with representatives of North Sea divers.

Dr. J. Dickson Mabon

I held a meeting with representatives of the Association of Offshore Diving Contractors on 16th June about the effects of the application of PAYE to divers who had previously been taxable under Schedule D.

Mr. Gray

Is the right hon. Gentleman aware that the degree of insensitivity which has been shown by the Inland Revenue towards this group of extremely courageous and hard-working men is taxing their patience to the end? Since they have hitherto shown an extremely responsible attitude but this may now be in danger, will the right hon. Gentleman consider using his good offices in discussion with his Treasury colleagues with a view to having another look at the position in order that North Sea production shall not be interfered with in any way?

Dr. Mabon

Yes, Sir; I have already indicated, as has my right hon. Friend, that we ought to discuss these matters in view of the further representations which we have had from the association. I entirely agree that these are very brave men, there is a lot at stake for them, and damage could possibly result for our country. However, the hon. Gentleman will appreciate that the Inland Revenue treatment of all citizens must be equitable and fair. I remind him of what happened in the Standing Committee on the Finance Bill on 23rd June when my right hon. Friend the Financial Secretary replied on this matter. I agree that the divers have shown a responsible attitude. All I would say to them is that, despite the representations, they ought to secure rights of appeal in as many individual cases as they can.

Mr. Emery

I declare a secondary interest here. Does not the Minister agree that if the Treasury does not somewhat alter its view there will be a serious possibility that we shall have to rely on foreign nationals for diving work in the North Sea, that although the British divers are now probably more highly trained than any other divers in the world we may have to rely on others outside this country to meet the demand, particularly for saturation diving, and that, if that happens, it will be a major factor with consequences for our oil production in the years 1979, 1980 and 1981?

Dr. Mabon

Yes, Sir; I do not dissent from the view that it could have an adverse effect on certain diving activities, and we might have to rely more and more on foreign nationals to do this work in order to meet what is required. But I do not entirely agree wtih what the hon. Gentleman says about the effect on oil development. We have asked the companies and so far they have given no positive response that that is their view. However, we are actively in conversation with colleagues on the matter. But I return to what I said, that we must be absolutely clear that in Inland Revenue matters every citizen is treated equally.