HC Deb 09 March 1987 vol 112 cc9-10
9. Dr. Michael Clark

asked the Secretary of State for Energy how much oil has so far been brought ashore to the Shetland Islands; and if he will make a statement about the future involvement of the Shetlands in North sea oil development.

Mr. Buchanan-Smith

Up to the end of 1986 the total amount of crude oil brought ashore to the Sullom Voe terminal was 351.6 million tonnes. There is continuing opportunity for the Shetlands.

Dr. Clark

I thank my right hon. Friend for that answer. He will be aware that the Select Committee on Energy recently visited the Shetland Islands. Will he acknowledge the co-operation that the Shetland Islands have given the North Sea oil companies over recent years? Will he also ensure that his Department does all that it can to let the companies that have business in the North sea know that they will be welcome in the Shetland Islands, so that the expertise and technology that has been built up there can be used to full advantage?

Mr. Buchanan-Smith

Yes, Sir. The Shetlands have some good facilities, not only at Sullom Voe, which I mentioned in my answer, but in the Lerwick base and at Sumburgh airport. In the longer term, the geography of the Shetlands is such that they could find themselves strategically placed for developments in the northern North sea or in the area to the west of the Shetlands where prospecting is taking place.

Mr. Douglas

Does the Minister of State acknowledge that one should be wary in the House and elsewhere of speaking for the Shetland islanders because they are pretty good at speaking for themselves? Does he concede that one of the things to which he should turn his mind, with his right hon. Friend the Chancellor, is the ring fence arrangement for taxation in the North sea, so that development for satellite fields can be assessed as new development to step up the rate of activity both east and west of the Shetlands and in the North sea as a whole?

Mr. Buchanan-Smith

Having for many years had dealings with the Shetlanders on fisheries and oil and gas matters, I believe that no one respects more than I do the independence of the Shetlanders, but, so far as I am aware even the Shetlanders have not claimed a ring fence for those islands.

Mr. Wallace

It may not necessarily follow from the Minister's departmental responsibility, but does he accept that the reform of local government finance will have an important influence on future oil developments in the Shetlands, not least on the terminal at Sullom Voe? Has his Department been in touch with the Scottish Office on the importance of that, the necessity for the arrangements that will follow from the changes to the non-domestic rate, and any implications for possible pooling of non-domestic rates?

Mr. Buchanan-Smith

The hon. Gentleman should address his remarks to my right hon. and learned Friend the Secretary of State for Scotland. I hope that, like the rest of the House, he will welcome the interest that my hon. Friend the Member for Rochford (Dr. Clark) showed following the enterprising visit by the Select Committee on Energy to those islands. I very much welcome the interest taken in the House in the important role played by the Shetlands in the economy as a whole, particularly in relation to oil.