Offshore Supplies Office (Hansard, 9 March 1987)

§ 1. Dr. Godman
asked the Secretary of State for Energy if he has any plans to increase the staffing and extend the role of the Offshore Supplies Office; and if he will make a statement.

§ The Minister of State, Department of Energy (Mr. Alick Buchanan-Smith)
I shall continue to ensure that the Offshore Supplies Office is sufficiently staffed to enable it to fulfil its important role.

§ Dr. Godman
Does the Minister agree that the role and staffing of the OSO should be increased over the next few years to deal with what will be the Petroleum Act? Is the Minister satisfied with the OSO's role in securing contracts for United Kingdom companies? Naturally, I am primarily concerned with the fortunes of Scott Lithgow.

§ Mr. Buchanan-Smith
I pay tribute to the staff at the OSO who are hard-working and dedicated, and who are ensuring that British industry has a full and fair opportunity to win orders. I expect that for 1986, United Kingdom firms will have gained more than 80 per cent. of the orders available. That demonstrates the success of its work. I want that to continue, as I know the hon. Gentleman does. I am grateful to him for what he said.

§ Mr. Rowlands
Given the admission by the Government that 20,000 jobs have been lost in the oil industry in the last 12 months or more, and given the awful announcement today of the loss of highly skilled jobs at Huntings, one of our most internationally renowned consultancies, should the Government not be bringing forward more positive measures to stimulate development and exploration of the North sea, instead of this misplaced confidence and attitude that the Minister has shown today?

§ Mr. Buchanan-Smith
The hon. Gentleman does not appear to have noticed that there has been a substantial drop in the price of oil, which has a great effect on the industry. I am surprised that the hon. Gentleman does not acknowledge that.
The situation is difficult at the moment because of the drop in the price of oil. The hon. Gentleman has also overlooked the fact that at the end of last year we improved the industry's cash flow by some £300 million through the early repayment of advance petroleum revenue tax. The hon. Gentleman should acknowledge that action has been taken.