HC Deb 15 November 1982 vol 32 cc10-1
10. Mr. Michael Morris

asked the Secretary of State for Energy what percentage of offshore supplies contracts are handled by British companies; and whether he has any proposals to increase that percentage.

The Minister of State, Department of Energy (Mr. Hamish Gray)

The United Kingdom share of orders placed in the three years 1979 to 1981 has averaged 70 per cent. In all the circumstances, that is a substantial percentage.

Mr. Morris

I congratulate my right hon. Friend and his Department on encouraging British industry to increase its percentage share, but could we not do better? Can he suggest areas where British industry could take an increased share of the trade?

Mr. Gray

I am grateful to my hon. Friend for his comments. British industry could do better in one or two areas. We do not have as large a capability as we would like in pipe-laying barges or heavy lift equipment. There is tremendous potential for our companies overseas. I should like to see British companies pay particular attention to the Norwegian continental shelf.

Mr. Hardy

In 1979 Britain secured at least 79 per cent. of offshore contracts. Therefore, does not the Minister's answer confirm that there has been a decline in Britain's share in each year since the Government took office? Will he publish details for each year? Will he also demonstrate greater urgency to show that the Government are not as disinterested as would appear from the record?

Mr. Gray

The hon. Gentleman is a past master at distorting facts. [HON. MEMBERS: "Withdraw."] If he reads carefully the year-by-year statistics in the Brown Book he will find that the average is about 70 per cent. I am on record as explaining to the House why the 1979 figure was higher than for most other years. The figure was distorted because in the last two weeks of the accounting period two major platform orders were placed. This Government are as dedicated as any to ensuring that British companies remain competitive and maintain a high share of orders from the United Kingdom continental shelf.

Dr. J. Dickson Mabon

Although the Government are anxious to make a success of the offshore supplies industry, have we not been defective since 1979 in the two areas mentioned by the Minister? Is it not time that we made a greater effort in those areas?

Mr. Gray

Since leaving office the right hon. Gentleman has directed his entrepreneurial spirit in other directions. I am surprised that he has not detected the potential and involved himself in companies that might be able to pursue the matter.

Mr. Chapman

Do not British firms bidding for contract supplies in the Norwegian sector of the North Sea face the same conditions as Norwegian firms bidding for contract supplies in British waters, which was not the case two or three years ago?

Mr. Gray

We must be careful when we accuse our Norwegian friends of being protectionist. Forty-six per cent. of all orders on the Norwegian continental shelf are won by foreign companies. It is regrettable that a larger percentage does not come to British companies. We are anxious to see that put right.

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