Offshore Installations (Hansard, 15 May 1989)

§ 12. Mr. Doran
To ask the Secretary of State for Energy how many offshore installations have shut down in the last 12 months; and what was the total loss of production of (a) oil and (b) gas.

§ Mr. Parkinson
Seventeen million tonnes of oil production has been deferred, not lost, as a result of the Piper Alpha disaster and other accidents in the past year. Apart from Piper Alpha, the operators expect the majority of fields currently out of production to be back on stream by the end of this month and the remainder by September. The loss, or deferment, of gas production was minimal; the total capacity of the North sea and Morecambe hay remained well in excess of demand.

§ Mr. Doran
That is an appalling record. Does not the Minister think it ironic that the Tern Eider field is being opened almost as we speak, yet these fields are being shut down because of the closure of the Brent pipeline system? Given the serious consequences of these failures of safety —the loss of life and the effect on the economy—does he accept now that safety in the North sea is far too important to be left to the Department of Energy?

§ Mr. Parkinson
That exciting list of statements led nowhere, but it allowed the hon. Gentleman to run one of his favourite hobby horses at the end, which was interesting. No one could draw his conclusion. Until the day after Piper Alpha, not a single Labour Member had ever asked me a question about North sea safety, and I was never asked about the better performance of Norway, for the simple reason that its record until that time was a great deal worse than ours.
There are lessons to be learnt and we intend to learn them. My inspectors take their jobs extremely seriously.

§ Mr. Foot
Does the right hon. Gentleman agree that the Health and Safety Executive and Commission have a pretty good record of work generally? That being so, why, after all these incidents, does he resist so strongly extending their powers properly to cover this whole area?

§ Mr. Parkinson
I am sure that the right hon. Gentleman remembers that our present arrangements were the direct result of a study by the Burgoyne committee set up by his right hon. Friend the Member for Chesterfield (Mr. Benn). That committee reported to us and recommended the arrangements that we now have. The arrangements were put in place as a result of the study by an independent committee. We have already made it clear that if Lord Cullen of Ashbourne feels that he wishes to make any comments on those arrangements and to express a view about seeing them changed, we shall be happy to consider it.

§ Mr. Hind
My right hon. Friend will be aware that the accidents in the North sea bring home to consumers the question of interruptible supplies of gas. Will he consider suggesting to our right hon. Friend the Chancellor of the Duchy of Lancaster that if we are to retain a horticultural industry the increase in gas prices as a result of the recent Monopolies and Mergers Commission report should be looked at again? Will he have discussions about that matter with the chairman of British Gas?

§ Mr. Parkinson
As I am sure my hon. Friend knows, my Department has no standing in this matter. It is now a matter between British Gas, the regulator and the Department of Trade and Industry which is responsible for consumer affairs.

§ Mr. Haynes
Who is responsible?

§ Mr. Parkinson
Not the hon. Gentleman, thank God. I note what my hon. Friend has said and I shall bring the matter to the attention of my right hon. Friend.

§ Mr. Rees
Will the Secretary of State consider that the Burgoyne report was issued 14 years ago? The Labour Energy Minister at the time decided not to bring energy and oil work within the scope of the Health and Safety Commission. That was a long time ago, and in view of the accidents that have taken place, is the Secretary of State saying that he is completely happy with the arrangement made following Burgoyne? Would it not be better to think again?

§ Mr. Parkinson
I think that the right hon. Gentleman will find that Burgoyne was 10 years later than he suggests. The arrangements have not been in place since 1971. I think they have been in place since 1981. We have already made it clear that we are not interested in defending the status quo. We are interested in North sea safety. Lord Cullen is looking at the whole background to the Piper Alpha disaster, and if he makes any recommendations we shall take them very seriously indeed.