HC Deb 15 December 1986 vol 107 cc758-9
2. Mr. Janner

asked the Secretary of State for Energy what overall surplus or deficit accrued to the United Kingdom in its oil trade revenue for the last two years for which figures are available.

The Minister of State, Department of Energy (Mr. Alick Buchanan-Smith)

The monthly review of external trade statistics shows a surplus of £6.9 billion in 1984, £8.2 billion in 1985 and £3.55 billion to October 1986.

Mr. Janner

How long does the Minister expect the United Kingdom to remain in surplus, and how long will our reserves last? During the time that the Government remain in power, which we hope will be very brief, will they continue to squander these assets in the disgraceful way that they have done so far?

Mr. Buchanan-Smith

We expect to remain self-sufficient well into the 1990s. We are still discovering new reserves, and we reckon that we shall continue to do so for many decades to come.

Mr. Bruce

Does the Minister acknowledge that the present drive by OPEC to secure a stable oil price of around $18 is in the United Kingdom's interests and that the British Government could make a useful contribution towards achieving that stability, not least because it would restore confidence in the North sea oil industry and maintain the drive towards energy efficiency?

Mr. Buchanan-Smith

If the hon. Gentleman supports the policy of production control and full co-operation with OPEC, I should be interested to know whether that policy is supported by his party and the alliance. If the hon. Gentleman is serious about it, he ought also to spell out how he envisages that policy being applied on the United Kingdom side of the North sea. He ought also to acknowledge that if production were to be cut, jobs would be lost.

Mr. Rowlands

Does the Minister accept that, although there is an £8 billion oil surplus, the Chancellor of the Exchequer is now forecasting a deficit of nearly £8 billion in manufactured goods next year? Will he confirm that since 1979 this Government have collected £50 billion in direct taxation from the North sea? If those figures are taken together, is not my right hon. and learned Friend the Member for Leicester, West (Mr. Janner) right when he says that the Government have squandered the great and marvellous opportunities provided by North sea oil?

Mr. Buchanan-Smith

Once again the hon. Gentleman is completely wrong. Compared with the Government of which he was a member, this Government's policies and the programmes that they are carrying through mean that this country is now paying its way in the world.