§ 18. Mr. Tim SmithTo ask the Secretary of State for Energy what is the current level of capital investment in the North sea.
§ Mr. MoynihanAs my right hon. Friend noted in response to a similar question earlier, capital investment in the North sea increased by 30 per cent. from £2.7 billion in 1989 to £3.5 billion in 1990. We expect that rapid growth to continue in 1991.
§ Mr. SmithIs my hon. Friend aware that, as a Shell fellow-elect of the Industry and Parliament Trust, I have been able to see at first hand some of the substantial investment currently going into the North sea? It is good news for the United Kingdom economy. Will my hon. Friend ensure that Treasury Ministers, in so far as he has any influence over them, continue to produce a tax regime favourable for marginal investment in the North sea?
§ Mr. MoynihanAs my hon. Friend knows full well, the Treasury has for many years recognised that a stable fiscal framework is essential for operators and investors taking 13 long-term financial decisions in the North sea—a point of which I am sure my colleagues in the Treasury are only too well aware in the context of future decisions.