HC Deb 13 July 1987 vol 119 cc693-4
9. Mr. Evennett

asked the Secretary of State for Energy whether he will make a statement on the policy of Her Majesty's Government towards support of export initiatives in the offshore supplies industry.

Mr. Peter Morrison

I can assure my hon. Friend that I will be doing all that I can to promote and support the export initiatives in the offshore supplies industry.

Mr. Evennett

Does my hon. Friend agree that a secure home base is essential for exporting? Will he assure me, and the rest of the House, that his Department does all that it can to encourage the exporting industry?

Mr. Morrison

On the latter point, I can certainly assure my hon. Friend that that is the case. The offshore supplies industry has been through a difficult time, but in spite of that it received £2.2 billion worth of orders last year. The domestic market is still extremely strong, and that is the basis on which to build the export market.

Mrs. Margaret Ewing

While the Minister is supporting the offshore supplies industry, will he ensure that the various organisations in the north-east of Scotland, with the experience and knowledge that they can bring to the industry, are given an interest in this matter?

Mr. Morrison

I can certainly assure the hon. Lady that everyone—in the north-east of Scotland or elsewhere in the United Kingdom—will be given a proper hearing. However, at the end of the day, it will be for the oil companies concerned to decide, on sound commercial grounds, how to invest and from whom to buy the equipment that they need.

Dr. Michael Clark

Is my hon. Friend aware that ample rumours and a large amount of circumstantial evidence are circulating to suggest that foreign companies that supply offshore services and supplies to this country are being heavily subsidised by their Governments? Will my hon. Friend do all that he can to support British companies which want to export to other oil-producing areas so that we may have a balance of international trade?

Mr. Morrison

I assure my hon. Friend that as far as possible I shall ensure that there is fair trading between countries. However, I should point out that at present 82 per cent. of North sea orders come from United Kingdom-based companies.

Mr. Ernie Ross

What is the Minister doing to ensure that we have a strong home base so that we can take advantage of export initiatives, and what is his Department doing to ensure that skills that are lying unused can be channelled into export initiatives?

Mr. Morrison

As I have just said, 82 per cent. of current orders for the North sea are from domestically based companies. That is a very high figure and has risen from 40 per cent. over the past years. The Offshore Supplies Office is doing all that it can to ensure that British-based companies have a fair share of North sea orders.