British National Oil Corporation (Hansard, 6 July 1981)

§ 8. Mr. Eggar
asked the Secretary of State for Energy if he will meet the chairman of the British National Oil Corporation to discuss the chairman's wish for legislation to privatise the corporation.

§ Mr. Gray
I keep in regular touch with the chairman of the British National Oil Corporation. The Government have made clear their intention of reintroducing the Petroleum and Continental Shelf Bill as a high priority in the next Session.

§ Mr. Eggar
Can my hon. Friend go slightly further and give a categorical assurance that legislation will be introduced at the beginning of next Session? Can he confirm that the chairman of the BNOC is in full agreement with the privatisation powers in the Bill?

§ Mr. Gray
It is not within my gift to give an absolute assurance, but I can assure my hon. Friend that the Government's intention is to introduce the Bill early next Session. The chairman of the BNOC has been fully consulted about the proposal and is in agreement with it.

§ Mr. Douglas
Why have the Government decided to go all the way in terms of loan capital in the future method of financing the BNOC?

§ Mr. Gray
The hon. Gentleman will appreciate that the Bill will merely give the Government powers. At this stage it does not spell out the particulars of how the private equity will be achieved. We are debating the principle at present.

§ Mr. Rowlands
Will the Minister assure us that he will not wage the nasty, vindictive campaign against the BNOC that he waged against the British Gas Corporation? Will he further assure us that he will not sell off valuable oil assets—as in the case of the BGC and Wytch Farm—belonging to the BNOC, at knockdown prices?
Will the Minister tell the chairman of the BNOC that if any oil assets are sold, in line with the Conservative Party's philosophy and policy, a future Labour Government will restore those assets to the public without any additional compensation and for not a penny more than they were sold? We shall not support such national asset stripping in any shape or form.

§ Mr. Gray
The House is indebted to the hon. Gentleman for spelling out so clearly the Labour Party's attitude to the measure. I have no doubt that the many private sources that are anxious to invest in the BNOC will take special note of his remarks. I assure the hon. Gentleman that private investment is to the advantage of the BNOC, so that it can make decisions on its commercial judgment and not constantly be at the mercy of the Treasury.