HC Deb 09 December 1991 vol 200 cc599-600
11. Mr. Kennedy

To ask the Secretary of State for Energy if he will assess the implications of the single European market post-1992 upon the United Kingdom oil-related fabrication sector; and if he will make a statement.

Mr. Moynihan

United Kingdom companies that have a good track record and are competitive will continue to win orders. It is up to United Kingdom industry to demonstrate and promote its strengths—its productivity, its advanced capabilities, its technological edge, its reliability and its safety record, all of which are vital ingredients of a bid package.

Mr. Kennedy

I am grateful for that reply. I am sure that, from the Minister's knowledge of and visits to the area, he will agree that companies such as Highlands Fabricators at Nigg, which has an excellent work force, a good track record, is competitive and highly skilled and has diversified on site, are well placed to take advantage of the single market. Will he recognise the persistent anxiety and doubts of United Kingdom-based fabrication yards about indirect subsidies finding their way to yards based in some of our main European competitors? Will he continue to press our interests on that front?

Mr. Moynihan

On the former point, the hon. Gentleman will be pleased to note that all of the most recent fabrication contracts have been awarded to United Kingdom yards. For many of the reasons that he gave, the contract for a Shell Sole Pit compression platform has been awarded to Highfab. The Offshore Supplies Office will continue to play an important role in promoting fair commercial opportunity in all oil and gas markets and in supporting EC initiatives for the creation of open and commercially fair markets.

Mr. Moss

May I congratulate my hon. Friend the Minister on securing a 40 per cent. increase in the budget for the Energy Efficiency Office for next year? It will total about £59 million, which compares favourably with the measly £3 million that Labour spent in its last year in office. May I extend the grateful thanks of Mr. and Mrs. Emery of Eye in my constituency, whom I visited this morning and who have just had their home insulated under the Government's home energy efficiency scheme?

Mr. Moynihan

I am delighted to accept those congratulations, not least on behalf of my right hon. Friend the Secretary of State and my hon. Friend the Under-Secretary, who have spearheaded the campaign.