§ 4. Mr. Rowlandsasked the Secretary of State for Energy whether he will make a statement on the financial situation of the British National Oil Corporation.
§ Mr. Alick Buchanan-SmithI refer the hon. Member to the minute which my Department laid before the House on 23 October.
§ Mr. RowlandsIs it not sad that the Government have managed to turn what was once, in 1981–82, an extremely profitable and vibrant British National Oil Corporation into a £45 million lame duck? Does the £45 million, which has been cited recently as the cost of covering BNOC's losses, cover the losses in the past few days, or will we have a further Supplementary Estimate? Will the right hon. Gentleman at least confirm what he said on 22 October, that he still sees BNOC as having a vital role in the supply of oil?
§ Mr. Buchanan-SmithI am amazed that the hon. Gentleman shows so little understanding of the position. The losses would have been the same whether or not Britoil had been split from BNOC. Had they remained together, the loss would have been masked by an upstream profit. Where BNOC has the responsibility for purchasing participation oil supplies, it is better that the nation should know the cost.