§ 22. Mr. Rowlandsasked the Secretary of State for Energy what is his current estimate of the number of people employed directly and indirectly in the development of North sea oil and gas.
§ Mr. Buchanan-SmithThe Department of Employment estimates that 26,400 persons were employed in the oil and gas extraction industry as at September 1986. Figures for employment in the supply industry in the United Kingdom as a whole are not available.
§ Mr. RowlandsIs the Minister aware that the Scottish Development Agency and other agencies forecast losses of up to 30,000 jobs in the industry in the next two years unless there is an increase in activity? Has the Minister any proposals to put to the House for the development of the 90 discoveries within 20 miles of existing installations to encourage activity and to save us from a rapid decline in self-sufficiency?
§ Mr. Buchanan-SmithThere is concern about jobs, but I hope that the hon. Gentleman is encouraged by the fact that last year we approved new developments worth over £2 billion, which will generate work. As recently as a couple of weeks ago I approved the Audrey gas development, worth over £80 million. Work is continuing. In addition, the early repayment of petroleum revenue tax has improved the industry's cash flow by £300 million. I understand the problems. We are watching what is happening in the offshore industry closely because it is important to our economy.