HC Deb 31 July 1978 vol 955 cc18-9
10. Mr. Viggers

asked the Secretary of State for Energy when he last met representatives of the United Kingdom Offshore Operators' Association.

Dr. J. Dickson Mabon

I saw representatives of the association on 20th July.

Mr. Viggers

When the Minister last met oil company representatives, did he discuss with them the widespread press reports indicating, apparently from informed sources, that there is to be a change in the oil taxation structure of the North Sea? Are these reports true? If so, do they not indicate that the Government have made a miscalculation in the past and that there has been a delay in recognising this?

Dr. Mabon

I discussed with UKOOA its views about the sixth round arrangements. The answer to the first part of the hon. Member's supplementary question is "No, Sir". As for the second part, the hon. Gentleman will have to refer to the Chancellor of the Exchequer.

Mr. Adley

Is it not true, as a general proposition, that the benefit from oil development is either to the nation or to the companies concerned, while the cost is often borne by the local community in environmental terms and by way of a strain on services? Since the Department of the Environment seems unaware of whether any other OECD countries levy local taxes on offshore development in particular, may I ask the Minister to look at this matter so that local authorities in areas where there are close offshore developments may feel that there is some possibility of their getting some return for the costs which they will be called upon to bear?

Dr. Mabon

That is an interesting point. It has been reflected in what has happened in the Shetland Islands and, to a lesser extent, in the Orkney Islands. This is not a matter exclusively for the Department of the Environment or the Scottish or Welsh Offices; it is for the Department of Energy. We take it very seriously, as the hon. Gentleman knows.

Mr. Loyden

When he meets the offshore operators, will my right hon. Friend take up the question of the need for better health and safety regulations for the workers involved? When does he intend to raise this matter so that there will be a tightening-up of the present regulations?

Dr. Mahon

My hon. Friend will know that we have included references to these matters in the criteria, so-called, for the fifth round and, I hope, the sixth round. My right hon. Friend is in correspondence with the Secretary of State for Employment on this subject. I hope that we shall have something to say about it quite soon.