Piper Alpha Platform

HC Deb 07 July 1988 vol 136 cc1193-200 3.31 pm

The Secretary of State for Energy (Mr. Cecil Parkinson)

With permission, Mr. Speaker, I would like to make a statement on the explosion and fire on the Piper Alpha platform last night.

At about 10 o'clock last night a serious explosion occurred at the platform. The coastguard service was informed and an emergency control centre was established. All emergency services were immediately alerted. Royal Navy, Royal Air Force and coastguard helicopters and surface vessels in the area, including a NATO detachment, were committed to the search for survivors. Occidental, the operators of the platform, activated its emergency centre to control the fire and oil and gas flows.

The explosion appears to have been so violent that the platform was effectively destroyed. My right hon. Friend the Minister of State went early this morning to Aberdeen. He has kept me in continuous touch with developments. My latest information is that there were 229 people on the platform at the time of the explosion, of whom 65 are known to have survived. There were three people in a small boat involved in the rescue, of whom one is known to have survived. Sixteen people are known to be dead and 150 are at present unaccounted for.

Her Majesty the Queen has asked me to convey to all those concerned her heartfelt sympathy for the injured and bereaved and her admiration for the gallant efforts of the firefighting, rescue and medical services in preventing even greater loss of life. I am sure that the whole House will wish to join in expressing our sympathies and in paying tribute to the efforts of the emergency services.

Oil and gas production in the hostile environment of the North sea demands the greatest attention to safety. Safety is the first priority of the Government and the operators. We apply the highest safety standards to all phases of development: design, construction and operation. We have also established procedures to be followed in the event of an emergency. These are regularly rehearsed.

The Government are determined to establish urgently the cause of the explosion and the lessons to be learned. Nearly 30,000 people work in the United Kingdom sector of the North sea. They and their families have the right to expect the fullest possible investigation. The Government will therefore be setting up a full public inquiry as soon as possible.

Mr. John Prescott (Kingston upon Hull, East)

We on the Labour side of the House very much welcome the Secretary of State's statement. We offer our deepest sympathy to the families and all involved in the tragic event. We should like to express our deepest appreciation—and, yes, admiration—for the excellent rescue services that are provided in these most difficult circumstances and for the onshore response by the police, hospital, and other services. It reminds us how much those people contribute in difficult circumstances. Those are not simply words, but express great admiration.

Considering the magnitude of the tragedy, we fully endorse the Secretary of State's decision to hold a public inquiry. However, does he accept that that inquiry should be open and wide-ranging and that its scope should not exclude anything in examining the safe operation of such installations? Although this is not in his statement, will the Secretary of State confirm that the Health and Safety Executive will conduct its own investigation into the technical causes and effects of the tragedy so that it can reach a conclusion quickly while we await the longer public examination?

Will the Secretary of State confirm that the public inquiry will address itself to the following issues: the increasing number of accidents and dangerous occurrences in the industry in the past few years; the reduction in inspections and maintenance in the past few years, which have been highlighted and drawn to our attention by the Select Committee on Energy; the increasing pressures on costs and safety practices, and the low level of expenditure on training in what is clearly a profitable industry? Will he also address the issue of no-fault compensaton, which has been raised by my right hon. Friend the Leader of the Opposition, and which should be considered by an inquiry and considered for inclusion in any statutory system?

Finally, will the Secretary of State confirm that health and safety legislation does not fully apply to this industry, highlighting the conflict between his Department's responsibility for production and for safety? Will the right hon. Gentleman now give further consideration to making safety the first priority? Will he now review that conflict of interest and consider whether the Health and Safety Executive should extend its powers and responsibilities to that North sea industry?

Mr. Parkinson

I thank the hon. Gentleman for his generous tributes to the emergency services. I shall take up his points one by one. Of course, the inquiry will wish to be far-reaching and to discover the fundamental causes to make sure that if there are any wider implications from this particular event and any lessons to be learned for other operators, that information will be disseminated as quickly as possible. It will be a deep and far-reaching inquiry.

The Health and Safety Executive has responsibilities in this area but, by agreement, it delegates them to the inspectorate in my Department, which is recognised worldwide as being technically one of the best qualified inspectorates. Therefore, it is not true to say that the Health and Safety Executive is not involved. It does have rights and duties but delegates them to my Department's inspectorate.

On the question of the increasing number of accidents, it is simply not true that accidents are increasing in the North sea. In fact, last year the number of serious accidents reported fell from 101 in 1986 to 59, although 59 is still far too high a figure and we wish to keep the pressure on to ensure that that improvement is maintained.

On the question of the reductions in surveys, I advise the hon. Gentleman that it is not only the inspectorate of my Department which attends the platforms. It may interest him to know that an inspector finished the most recent inspection of that platform on 28 June. Lloyd's Register of Shipping is also under a responsibility annually to certify the platforms and equipment and the Department of Transport must also check the safety arrangements and safety equipment on board. Therefore, the platforms are under continuous inspection, not just from my Department acting on behalf of the Health and Safety Executive, but also from other Government Departments which themselves have duties, and independent bodies, such as Lloyd's Register of Shipping, which has a duty to carry out the full certification.

On the question whether my Department should continue to carry out this work as agent for the Health and Safety Executive, as he knows, this was carefully examined by the Burgoyne committee, which reported in 1981. That committee said in its majority report that the present arrangements were, in its opinion, the best possible. I accept that there was a minority report which disagreed, but the majority report, whose recommendations the Government accepted, felt that the present arrangements were the best.

Sir Hector Monro (Dumfries)

May I join in the expressions of sympathy from all Members of the House to the families who have lost relatives? In praising all the rescue services, may I highlight the work throughout the night of the Royal Air Force and civilian helicopter pilots and the Nimrod pilots and crews? Does this not highlight the importance of keeping a good search and rescue capability all round our coast, and particularly on the east coast of Scotland?

Mr. Parkinson

I join my hon. Friend in paying a tribute to the RAF and civilian helicopter pilots. One of the few satisfactory aspects of this tragedy has been the operation of the emergency procedures. The dovetailing of the arrangements has worked extremely well. As helicopters were deployed, further helicopters were brought up from other stations throughout the country. I note what he says, but I am sure that he will share my satisfaction that the arrangements worked so well on this occasion.

Mr. James Wallace (Orkney and Shetland)

May I, on behalf of my right hon. and hon. Friends, join in the expressions of sympathy to the bereaved and injured and in the tributes to the emergency services? As the Secretary of State well knows, the oil from the Piper Alpha platform comes ashore at the Flotta terminal in Orkney. Occidental has, over many years, played a very positive role in the community in Orkney and I am sure that the sense of loss and tragedy felt by the company is shared by my constituents.

The Secretary of State has mentioned a public inquiry. Is he able at this stage to go further and say what the nature of it will be? Am I right in thinking that it will certainly go beyond the fatal accident inquiry which would otherwise follow?

Finally, there have been other reported incidents this week on North sea platforms. Is this just a case of a tragic coincidence or is there any evidence at this stage of any connection?

Mr. Parkinson

I thank the hon. Gentleman for his opening remarks. I chose my words very carefully about the public inquiry. We want it to be the fullest possible but, as he knows, we are operating in Scotland and either Scottish law or English law, or both, can be applied. The Law Officers are, therefore, in discussion to settle which would be the most appropriate. As soon as decisions have been made—and I am talking about a very short time—I will reveal further details to the House.

Mr. Alick Buchanan-Smith (Kincardine and Deeside)

Not so long ago I visited the Piper field. Many of my constituents work on that platform. Many of them are known to me personally. Surely today, above all, so far as the House is concerned, it is incumbent on us to join the whole of the nation in keeping in our thoughts and our prayers those who have lost their lives, and their families.

Mr. Parkinson

I am sure that my right hon. Friend speaks for Members in all parts of the House.

Mr. Harry Ewing (Falkirk, East)

As a Member who has had to deal with tragedies in the oil industry onshore rather than offshore, can I say to the Secretary of State that all our technical or probing questions are overshadowed by the extent of this tragedy and the sad loss that is borne by so many people as a result of what has happened. I have learned from bitter experience that on the day of the tragedy it is never wise to probe too deeply. Having said that, however, can I bring out the point about Scots law and ask the Secretary of State if the decision to establish a public inquiry will rule out, as it seems bound to do, any possibility of a fatal accident inquiry? Will he discuss these aspects with his noble Friend the Lord Advocate?

Finally, for 13 years, as the hon. Member for Orkney and Shetland (Mr. Wallace) has said, my constituency has been connected by pipeline from rig to refinery. Today, my constituency is connected by sadness and on behalf of all those who work at the BP refinery at Grangemouth, which receives the oil, and on behalf of all my constituents who live in Grangemouth, I express their deepest sympathy to those who have lost loved ones and their fervent hope and prayer for a speedy and full recovery of those who have been injured.

Mr. Parkinson

I associate myself with the hon. Gentleman's final words. We are looking extremely carefully at the interrelationship between the two laws. It does not necessarily follow that an inquiry under one law is ruled out by the other, but that rather detailed discussion is going on at this very moment and we intend to resolve the matter as quickly as possible. I stress that we want the inquiry to be as full and as public as possible.

Mr. David Howell (Guildford)

We would all wish to be associated with the words of sorrow that my right hon. Friend has expressed at this appalling tragedy in the North sea where, as he reminds us, under successive Governments safety has always been the first and proper priority in this inevitably risky industry. Although the obvious and only dimension of the tragedy in our minds must be the tragic loss of human life, will my right hon. Friend also confirm that the destruction of the Piper Alpha platform will mean the loss of 5 per cent. of the entire oil production of the North sea until it is rebuilt? If the destruction has covered some of the other pipelines in nearby oilfields, that loss of production could be even greater, although I repeat that it is obviously human lives that concern us most.

Mr. Parkinson

I thank my right hon. Friend, as a former Secretary of State for Energy, for underlining what I said about the importance of safety as a top priority from the moment that the platforms are designed right through to the day when they move into operation.

I confirm that the Piper Alpha platform is a major producer, producing about 120,000 barrels of oil a day. I am glad that, as I would have expected, my right hon. Friend today puts the emphasis on the tragic loss of so many lives, and I am sure that that is what preoccupies the House.

Mrs. Margaret Ewing (Moray)

May I also, on behalf of my hon. Friends and the nationalist parties, extend our sympathy to all those families throughout the United Kingdom who have suffered bereavement or seen their breadwinner injured in this enormous disaster in the North sea? May I also add my congratulations to the rescue services, many of whom operated from the bases in my constituency at RAF Kinloss and Lossiemouth, and add my tribute to those who volunteered, such as many of the fishermen along the north-east of Scotland, and went to assist in that operation?

As this is a day of tragedy, I shall ask one brief question. Will the Secretary of State assure us that provision for the families who have been bereaved will be taken into account as quickly as possible? Today, we have seen the human cost of winning North sea oil and I am sure that the Government, who have benefited so much from the revenue of Scotland's oil, will ensure that everything is done to provide for those families.

Mr. Parkinson

I note what the hon. Lady says and I shall bear it very much in mind in the next few days.

Mr. Bill Walker (Tayside, North)

Like those of my right hon. Friend the Member for Kincardine and Deeside (Mr. Buchanan-Smith), a number of my constituents work in this part of the North sea. Although we have no knowledge of which individuals are missing, I am sure that the rest of the House will extend its sympathy to their relatives. Will my right hon. Friend have discussions with his right hon. Friends at the Scottish Office and the Ministry of Defence to make absolutely certain that there is no plan to reduce, for example, the helicopter rescue capability and, in particular, the search and rescue unit based at RAF Leuchars, which is a key centre for that part of the North sea?

Mr. Parkinson

Yes, I will discuss these matters with my right hon. Friends. I also stress that the events of the past 24 hours have shown that the emergency arrangements work extremely well, even when they are put under the huge pressures of the past 18 hours or so.

Mr. Frank Doran (Aberdeen, South)

I thank the Secretary of State for his statement and the courtesy he has shown me throughout the day in keeping me briefed on progress, as the terrible tragedy has become known to us all.

This is the second major tragedy connected with the North sea oil industry to have hit Aberdeen in the past three years, the previous one being the helicopter disaster—although this accident far outstrips that one in its magnitude. I add my sympathies and condolences to the families among my constituents who have lost loved ones who worked in the North sea, and to such families all over the country—particularly those in the north-east of England—from where I know many employees come.

I add my thanks to the rescue services and to people in the Grampian health board who have been working throughout the night and today to deal with the terrible injuries that they have had to cope with. I also thank the people of Aberdeen who have rallied round magnificently, to the extent that the health board has had to stop calling for volunteers to donate blood, for example.

The Secretary of State mentioned that there are about 30,000 employees in the North sea. I urge him to ensure that the public inquiry that he has said he will hold is as wide and open as possible, and not restricted in the way that a fatal accident inquiry would be under Scots law. In the interests of those 30,000 employees and their families I also ask him to ensure that, as soon as the lessons and causes of the tragedy are known, there will he no hesitation in circulating them to the other operators in the North sea. We must not wait until the inquiry report has been discovered: the lessons should be distributed as quickly as possible.

Mr. Parkinson

My right hon. Friend the Minister of State, Department of Energy has visited the survivors in hospital and has paid tribute to the way in which they are being looked after and to the tremendous spirit of co-operation in Aberdeen. The whole city has joined in wanting to help the victims of the tragedy.

I want also to deal with the point raised by the hon. Member for Orkney and Shetland (Mr. Wallace) about the string of incidents. There have been two or three incidents recently, but they have had no connection. Each one is being investigated as part of our normal procedures.

As for the public inquiry, if we find that there are lessons of wide application to be learned, we shall not waste a second in making sure that they are conveyed to the other operators.

Dr. Michael Clark (Rochford)

On this day of tragedy and sorrow, does my right hon. Friend agree that it is appropriate to pay tribute to the skill, dedication and above all courage of all who work in the hostile environment of the North sea?

Mr. Parkinson

Yes. As I said earlier, we have become accustomed to taking North sea oil almost for granted. But if one goes offshore, as I have done on a number of occasions, and sees the area in which the platforms operate and the appalling conditions that can occur from time to time during the year, one realises that it is a hazardous operation carried out by very brave people. We try to ensure that the maximum possible number of steps are taken to ensure their safety.

Dr. Norman A. Godman (Greenock and Port Glasgow)

I, too, would like to voice my deepest sympathy and condolences to those who have suffered tragic loss today. I also speak as one who represents many constituents who work in the North sea. I ask the Secretary of State to ensure that the people who were involved in the rescue operations and who behaved on this as on other occasions in such a magnificent and heroic way have the finest resources at their command. I say this with special regard to emergency support vessels dynamically positioned on the continental shelf and in relation to standby vessels which provide cover for every platform.

My final question is about the absence of an experienced and critical safety voice. It is about the absence offshore, vis-a-vis the Health and Safety at Work, etc Act 1974, of trade union safety representatives. May I assure the Secretary of State and others that in this field trade union representatives perform an admirable and vital service? The absence of a critical voice should be carefully examined by the Government.

Mr. Parkinson

The hon. Gentleman mentioned the standby resources. On this occasion the standby vessel was, as one would expect, in position and was responsible for saving many lives. There was a second vessel there belonging to Occidental and it was also able to take part in the rescue. On this occasion there is no suggestion that the standby resources were inadequate.

They were considerably more than adequate. The hon. Gentleman asked about safety on platforms. As I am sure he knows, on every platform there is a major safety committee consisting of management and representatives of all grades on the platform. Many of those people are trade unionists and, therefore, trade unionists are taking part in discussions about safety on each and every platform.

Several Hon. Members

rose—

Mr. Speaker

Order. I am sure that the whole House will echo the comments made by the right hon. Member for Kincardine and Deeside (Mr. Buchanan-Smith). I shall allow questions to go on for only a further four minutes because we are to have two other statements, a business statement and the presentation of a Loyal Address before we move on to the main business.

Mr. Rupert Allason (Torbay)

I endorse all my right hon. Friend's tributes to the rescue services, but may I draw his attention to a matter that causes great anguish among the families of those directly involved in a tragedy such as this? It is that the first news that they get of a major disaster is through the news media. A telephone number is flashed up on the television screen. Of course, the number is constantly changing and families have to ring a number and the lines are very soon swamped by calls. The lack of information for the families that are directly involved causes great anguish. Will my right hon. Friend agree to consider with his ministerial colleagues the setting up of some kind of centralised disaster unit so that after future disasters like the one that we have just experienced and the Townsend Thoresen disaster people can ring a central number and have their calls logged straight away?

Mr. Parkinson

The arrangements for dealing with tragedies such as this are finely developed. Each company immediately opens its emergency room which is in mothballs waiting for eventualities such as this. I shall certainly look at my hon. Friend's idea, but I must tell him that the flashing up of telephone numbers is a way of trying to give anxious relatives the most immediate access to information. The companies then set out to try directly to contact the relatives of those concerned. I am sure that my hon. Friend realises that in an operation such as this, in which many vessels are active, it is not immediately possible to know the exact position.

Mr. Jack Ashley (Stoke-on-Trent, South)

Is the Secretary of State aware that when all the headlines about this terrible tragedy and all the expressions of sympathy have been forgotten, the people who have been injured, badly burned and disabled in this accident and the relatives of those who have been bereaved will, year after year, face legal struggle for compensation? Because of our archaic laws only the lawyers will win those battles. Some people will be denied compensation. They will face years of hardship and horror on top of the horror that they have suffered because we do not have no-fault compensation. The Prime Minister has just rejected a request for no-fault compensation. Could the Secretary of State have a private word with her about a more just and equitable system to help these people?

Mr. Parkinson

I note what the right hon. Gentleman says and, as he knows, this is a long-running and difficult argument, but, as my right hon. Friend pointed out, a number of private insurance schemes covering no-fault compensation are being developed. However, all I can say is that I note what the right hon. Gentleman says.

Mr. Martin Flannery (Sheffield, Hillsborough)

Is it not a fact that, in the minority report mentioned by the Minister, there was bitter criticism of the safety precautions in the North sea? I am chairman in this House of the MSF union's committee on health and safety matters which represents many people involved with helicopters and oil rigs and which made it clear that it wanted an inquiry into the whole business and that that inquiry should not be attached to the Department of Energy, but should involve an independent group of inspectors examining those rigs. Is it not also a fact that warning was given that, unless such a step were taken, something like this would ultimately occur?

Mr. Parkinson

The hon. Gentleman should remember that that was a minority view, as he hinted, and that the majority of the Committee set up by his right hon. Friend the Member for Chesterfield (Mr. Benn) disagreed with that point of view. [Interruption.] He was not the Member for Chesterfield then, but the majority of that Committee came down firmly on the side of the present arrangements.

Mr. Prescott

May I again ask the Secretary of State about the role of the Health and Safety Commission, which has statutory powers of inquiry under section 14 of the Health and Safety at Work, etc. Act 1974, but from which the offshore industry is exempt? The commission can conduct a quick and technical examination so that the lessons can be learned and implemented before the final conclusions of a public inquiry. Because of the agency arrangement between the Department and the commission, the Department's agreement to that is required. Will the Secretary of State give his agreement to such an inquiry?

Mr. Parkinson

I have already spoken to the chairman of the Health and Safety Commission and we have discussed the range of possibilities. He knows of the discussions that I am having with the various Law Officers. The key is to ensure that we have the fullest possible inquiry, and as soon as I am able to give a definitive answer, I shall come back to the House.