HC Deb 13 February 1992 vol 203 cc1101-2
12. Mr. Eadie

To ask the Chancellor of the Exchequer what the cumulative total of all taxes from North sea oil has been since 1979 in 1991–92 prices.

Mr. Maples

Around £109 billion.

Mr. Eadie

Is the Minister aware that the Government have just announced that they have achieved a financial bonanza that no previous Government in history have enjoyed? Bearing in mind the millions of pounds that the Government raised from privatisations—the selling of the family silver—and all the money that has been raked into the Treasury, should not the Economic Secretary stand at the Dispatch Box and apologise for the economic mess in which the Government have landed this country?

Mr. Maples

The revenues from North sea oil and privatisations helped this Government to restore public finances to the kind of good shape that those of few other countries are in. Ours is one of the few countries in the European Community that would meet those aspects of the stage 3 European monetary union standards. Under the last Government, debt rose to unprecedented levels, which was essentially postponed taxation on future generations. We reduced those debt levels. They have gone in reducing overseas debt inherited from the—

Mr. Campbell-Savours

Where has the money gone?

Mr. Maples

I am telling you—listen.

Mr. Speaker

Order. The Minister ought to rephrase that remark.

Mr. Maples

Through you, Mr. Speaker, I am telling the hon. Member for Workington (Mr. Campbell-Savours) where the money has gone. It has gone in repaying the overseas debt that we inherited from the last Labour Government. It has gone on reducing the fantastic levels of public sector borrowing requirement that were reached under the last Government. It has gone on reducing income tax from the levels of 83 and 98 per cent. that were reached under the last Government. We think that that was a good investment.

Mr. Bill Walker

Welcome though North sea oil taxation revenues are, does my hon. Friend agree that they are not a large proportion of the taxes paid in the United Kingdom? Also, can he confirm that a separatist, socialist, nationalist Scotland could not expect to enjoy all those oil revenues?

Mr. Maples

My hon. Friend is right about the revenues from North sea oil taxation. This financial year, they are expected to be just over £1 billion—about one half of 1 per cent. of total tax revenues.