§ 12. Mr. Edwin Wainwrightasked the Chancellor of the Exchequer what revenue has been obtained from North Sea oil during each of the past four years; and what is the estimated figure for the current year.
§ Sir Geoffrey HoweTotal revenues from royalties, petroleum revenue tax and corporation tax from North Sea oil and gas over the last four years were:
| 1976–77 | £81 million |
| 1977–78 | £238 million |
| 1978–79 | £521 million |
| 1979–80 | £2,229 million |
§ The estimate for the current year is about £4.1 billion. These figures are at out-turn prices.
§ Mr. WainwrightDoes the right hon. and learned Gentleman understand that those figures, according to many experts, seem very low? Will he bear in mind that this proves that the Government are not planning too wisely and are failing to build up manufacturing inudustry and investment in production? If he considers that such steps cannot be afforded on present income from oil revenues, will he take into account the fact that, according to many experts, the oil companies are 701 getting away with over £1,000 million a year that ought to be going into the coffers of the Government? Will he take some action?
§ Sir G. HoweThe hon. Gentleman may have founded his first question about comparison with outside calculators on a misunderstanding of what I described. I was not dealing with forecasts but reporting a state of fact. On the use of oil revenues for building up industry, the hon. Gentleman must surely recognise that the revenues I have recounted are playing a crucial part, alongside the public expenditure reductions upon which we have embarked, in merely reducing public sector borrowing to a manageable figure. His suggestion that the Government are neglecting substantial profit by the oil companies is wide of the mark. The hon. Gentleman must take account of the extent to which oil company profits are earned world-wide. We are making a substantial take from those profits earned in this country.
§ Mr. EggarWill my right hon. and learned Friend confirm that the present level of PRT and other taxes paid by oil companies on the average oilfields is well over 85 per cent.?
§ Sir G. HoweI would not like to be precise about an average figure without notice. My hon. Friend is right in identifying the extent to which the average take from profits of North Sea oilfields is very substantial.
§ Mr. Robert SheldonIn view of recent further increases in the world price of oil, will the right hon. and learned Gentleman be revising his estimate for the revenue from North Sea oil?
§ Sir G. HoweThat is one of the factors to be taken into account. The right hon. Gentleman will have seen that, almost at the same time, there have been revisions in the estimates for likely production of North Sea oil. There are constantly varying factors on both sides of the equation. When prices tend to go upwards, production tends to fall short of forecasts.