HC Deb 04 November 1999 vol 337 cc475-6
10. Miss Anne Begg (Aberdeen, South)

What plans he has for further work by the oil and gas industry task force. [95832]

The Minister for Energy and Competitiveness in Europe (Mrs. Helen Liddell)

The oil and gas industry task force will move into a new phase in January 2000 to drive forward the initiatives announced by my right hon. Friend the Secretary of State in September, when he visited the offshore engineering conference in Aberdeen.

It is crucial that the momentum created by the very successful task force is not lost. The task force will continue to identify actions, but much of its activity from now on will be to concentrate on the implementation of the conclusions that it has already reached.

Miss Begg

I am very glad to hear what my right hon. Friend says. I also attended September's exhibition in Aberdeen, so I know that the report from the oil and gas industry task force—which was delivered in quick time—was very well received by the industry. For the first time, oil companies, service companies and contractors are working with the Government and trade unions to find solutions and produce ideas. That work will make sure that the UK continental shelf continues to produce oil and to contribute to the economy of Aberdeen and the north-east of Scotland for years to come.

Will my right hon. Friend assure the House that she will continue the work of chairing the task force which was begun by her predecessor, my hon. Friend the Member for Leeds, West (Mr. Battle), who is now the Minister of State, Foreign and Commonwealth Office? I wish her well in that task, and hope that the economic well-being of the north-east of Scotland, which stems from the oil and gas industry, will continue.

Mrs. Liddell

That is a very important point. By its very nature, the shape of the oil and gas industry in the North sea is subject to change. It is therefore very important that the companies involved in the UK continental shelf concentrate on maintaining their global position. The oil and gas industry task force is a classic example of how the Government, working with industry, can address the problems of change in that industry. As a result of the task force's work, it has been identified that an additional 100,000 jobs can be created in a critically important industry that employs a third of a million people throughout the United Kingdom.

I shall certainly continue to chair the task force and follow the excellent example of my predecessor. From January on, at the request of the industry, the task force will be renamed Pilot, and will concentrate on the new initiatives required for the future.

Sir Robert Smith (West Aberdeenshire and Kincardine)

I welcome the greater awareness of the working of the industry that the Government have gained as a result of the work of the task force and the industry. I hope that the Minister will use that understanding to recognise the important part played by those of my constituents whose services are contracted to the industry.

Will the right hon. Lady use that understanding to make it clear to the Treasury and to the Department of Social Security that those people are not all tax scroungers? They are merely adapting to the modern industry in a flexible way to make it competitive in the world market, and to that end are accepting cuts in income. Will she recognise the damage done by the Government when they failed to recognise that flexibility in the IR35 consultation?

Mrs. Liddell

I am well aware of the hon. Gentleman's interest in the oil and gas industry, and of the position of contractors. I know too that some tensions have arisen. Some contractors behave totally honourably and legitimately and fulfil their obligations to the Exchequer in the proper manner, but others do not.

However, it is of particular interest to contractors that we develop an effective supply chain for the oil industry. Indeed, when I launched Logic, the supply chain initiative, in September, it was recognised that the future of the contracting industry depended on an adequate supply chain. The development of technology also depends on a good link between the big players and the smaller contractors.