§ 11. Mr. Eggarasked the Secretary of State for Energy what representations he has received from the United Kingdom Offshore Operators' Association regarding the arrangements for the seventh round of offshore licensing, announced by him on 1 May.
§ Mr. David HowellThe United Kingdom Offshore Operators' Association raised with me a number of matters on the seventh offshore licensing round, including its size, the introduction of the cash element, the exercise of petroleum options and methods and conditions of licensing. These matters were discussed in detail with the association and fully considered in reaching our decisions on the round.
§ Mr. EggarI thank my right hon. Friend for that full reply. Will he confirm that the Government's intention is to announce the seventh round awards, in order to permit preliminary seismic work to take place during the summer drilling season?
§ Mr. HowellNo, it is not possible to reach that timetable. The applications will come in first. I cannot give a precise closing date for the applications, but it will probably be about August. I expect awards to be announced in the autumn and towards the end of the year. That will be in time to get sufficient exploration and seismic work going on a good path next year.
§ Mr. Ioan EvansHas the Secretary of State seen the report in the Sunday Express that a number of oil millionaires have been created as a result of North Sea oil exploration? Will he ensure that in future the community has the full benefit of North Sea oil?
§ Mr. HowellOur tax system is fair and brings substantial benefit to the Revenue. I see no great harm in having millionaires. Indeed, if their millions are earned through enterprise and the creation of jobs and wealth for many other people, they are a positive virtue to our society.