HC Deb 09 March 1987 vol 112 cc2-3
Mr. Kennedy

asked the Secretary of State for Energy if he will make a statement on the current level of oil and oil-related construction activity in the United Kingdom.

Mr. Buchanan-Smith

The total contract tonnage associated with current developments on the United Kingdom continental shelf which has been awarded to United Kingdom construction yards, is around 200,000 tonnes. That construction work takes place over a period of time related to each project schedule.

Mr. Kennedy

I thank the Minister for that reply, but may I underline—I know that he is very conscious of this—the extremely depressing effect that the oil slump has had on construction-related activity in the Highlands? Will his Department be sympathetically disposed towards accepting evidence from, for example, the Highland regional council as to the related impact which the regional development cuts have had on the oil-related construction sector in the Highlands, which has acted as a double blow against it, and which also underlines the need for further tax concessions in the forthcoming Budget?

Mr. Buchanan-Smith

The Highland regional council has been in touch with my Department and I am sensitive to what the hon. Gentleman says. In my own area, Grampian regional council has said the same thing. Both councils have taken the opportunity of giving evidence to the Select Committee on Energy which is looking into these problems. I accept that there are much wider repercussions to the economy of these areas, and I know that my right hon. Friend the Secretary of State for Scotland is aware of the problems and shares my concern.

Mr. Coombs

Will my right hon. Friend give the House an update of onshore exploration and development, particularly that which is related to sensitive areas of the south of England?

Mr. Buchanan-Smith

Onshore activity has continued and there was considerable interest in the first onshore licensing round. It provides opportunities for smaller British firms to get involved, but I know that my hon. Friend acknowledges that, as I have said previously, any activity is strictly controlled under planning legislation and environmental considerations are involved. That must be right.