HC Deb 27 January 1992 vol 202 cc688-90
5. Mr. Robert G. Hughes

To ask the Secretary of State for Energy what he is doing to promote opportunities for the British oil industry in winning orders and contracts overseas.

Mr. Wakeham

Last November, I visited Vietnam, Hong Kong, Japan and Korea in order to promote the United Kingdom's wide-ranging expertise in the energy sector. I hope that my visit provided opportunities for the British oil industry to take part in the development of oil and gas fields in that region.

Mr. Hughes

Does my right hon. Friend accept that that news should be welcomed on both sides of the House? Is it not the case that on the trip he was identifying markets, boosting British business, ensuring that British companies can take advantage of that business and, in the end, creating jobs back here at home?

Mr. Wakeham

Yes, after 25 years of successful development of the North sea, our expertise is some of the best, if not the absolute best, in the world. It was important that in my visit to Vietnam, for example, I was accompanied by British business men from British Petroleum, Enterprise Oil, Shell, Lasmo, British Gas and Barclays bank. They all believe Vietnam to be a good market for British expertise and jobs to follow.

Mr. Dalyell

Before the Secretary of State sets sail to be Governor of Hong Kong, will he exercise his subtle and calming qualities on behalf of the 5,500 British expatriates, many of whom are Scots engineers working in the oil industry in Libya? Will he look at last Monday's Adjournment debate and see that there is another side to the story, before we start, heaven knows, on sanctions that will hurt the 36 British companies in Libya, which are led, by for example, Brown and Root, and which could lead to something worse in the form of another strike?

Mr. Wakeham

The hon. Gentleman is also talking of events in the aftermath of the Lockerbie tragedy. There are people who are required to appear before the courts either in Britain or in America, and all civilised people will wish to see that happen. As the hon. Gentleman invites me to read the Adjournment debate, I will.

Dr. Michael Clark

Does my right hon. Friend agree that as we are leaders in many forms of oil technology we have every reason to expect that we shall get some good export orders for that technology? Will he join me in congratulating the Petroleum, Science and Technology Institute in Edinburgh on its work on propagating Britain's ability in the oil industry?

Mr. Wakeham

Certainly, that institute is of the highest international standard and it is doing good work here and overseas providing advice and assistance. I am pleased that my right hon. Friend the Member for City of Chester (Sir P. Morrison) had a lot to do with its founding when he was a Minister in this Department.

Mr. Doran

Does the Secretary of State agree with the recent criticism that the British offshore supplies service industry is failing to take advantage of world opportunities? It has a comfortable market here with the North sea at its doorstep. The huge world market out there was worth $330 billion between 1989 and 1992, but the industry has won only a small share of that business. No amount of globe trotting by the Secretary of State will sort that problem out. What will he do about that at home?

Mr. Wakeham

The hon. Gentleman is being unfair to the North sea supplies industry. The total world value of those markets is about £40 billion a year and one third of all of the orders won by United Kingdom suppliers are for overseas markets. That is worth about £2 billion a year of the overseas markets won by the industry serving the North sea. That is a very creditable record. More can be done and more is being done and we shall encourage the industry to go out and get more business wherever it is; but it has made a good start.