Britoil (Hansard, 26 July 1982)

§ 11. Mr. Douglas
asked the Secretary of State for Energy if he is now in a position to announce the terms and conditions on which Britoil's shares will be put on to the market.

§ Mr. Lawson
No, Sir. However, I can assure the House that there will be no flotation of Britoil and, indeed, no final decision about the method of sale until the House has reassembled after the Summer Recess.

§ Mr. Douglas
That is a very welcome reply about timing, but will my right hon. Friend assure the House that he will continue to consider some form of tender option bid so that a price may be set before he embarks on the issue of the shares to the market generally?

§ Mr. Lawson
That is certainly among the matters at present under consideration.

§ Mr. Renton
I greatly welcome my right hon. Friend's decision to bring Britoil to the market, but can he say to what extent the public issue of the shares in the autumn will depend on stability of oil prices? Would further falls in the international price seriously affect the possibility of bringing the shares to the market in the autumn?

§ Mr. Lawson
As I have always made clear, the condition of both the oil market and the oil share market will be among the factors to be taken into account when we finally decide on the timing of the issue. So far, I see no reason why the flotation should not go ahead in the autumn. However, as I have said, no decision has been taken. The decision will be taken nearer the time in the light of conditions at that time.

§ Mr. Rowlands
The right hon. Gentleman has just sold the basic pass. Does he not recall the repeated assurances that he and other Ministers gave that there would be no sale of Britoil unless the best possible price could be obtained? Does he agree that no one in his right mind would try to sell a large number of oil shares in the current state of the market? Will he therefore abandon the artificial deadline that he has set to sell the shares by November this year and stand by the assurances given to the House?

§ Mr. Lawson
The hon. Gentleman cannot be listening with the care that he usually shows or the care that the right hon. Member for Leeds, South (Mr. Rees) would have shown if he were present. Nobody, not even the hon. Gentleman, knows exactly what conditions will be like in the autumn. All that I have said is that a decision will be taken nearer the time, when we have a better idea of what the conditions are.