§ 9. Mr. Kirkwoodasked the Chancellor of the Exchequer whether he will make a statement on the consequences for United Kingdom revenue of the change in oil prices.
§ Mr. LawsonI have nothing to add to what I said in the debate on the autumn statement.
§ Mr. KirkwoodIn what circumstances would changes in the sterling price of oil justify changes in the Government's borrowing requirement targets?
§ Mr. LawsonChanges in the sterling price of oil, if there were such changes—which would have an effect on oil revenues—would certainly be one of the things that I would take into account in deciding the appropriate PSBR at the time of the Budget. But it would be only one of a number of factors.
§ Mr. David HowellWill my right hon. Friend tell us whether it is correct that Ministers are proposing to talk, or are already talking, to Saudi Arabia about oil prices? Whilst, in the interest of world stability, it would be better to prevent a huge collapse in oil prices, will my right hon. Friend assure us that it remains the policy of the Government to let oil prices settle themselves in the market? Will he accept that, providing there is no large collapse, it should not over-influence him in his decisions about tax cuts in the forthcoming Budget?
§ Mr. LawsonI am happy to reassure my right hon. Friend that policy in these matters is exactly the same as it was when he was at the Department of Energy and when I was at that same Department.