HC Deb 16 October 2003 vol 411 cc256-8
14. Mr. Bob Blizzard (Waveney)

When he expects to complete the review of North sea oil and gas taxation. [132069]

The Paymaster General (Dawn Primarolo)

The consultation on levels of exploration activity in the North sea, which considered whether there were any cost effective measures that could be taken to improve the situation, has now ended. Officials from the Treasury, the Inland Revenue and the Department of Trade and Industry have taken evidence from representatives across the industry which will be considered by a joint working group. The Government will, of course, make announcements on this matter when the review of the items raised in the consultation is completed.

Mr. Blizzard

I thank my right hon. Friend for that answer. Does she accept that the oil and gas industry is a major source of employment in many coastal communities such as my constituency? We may be only halfway through our reserves of oil and gas, but what is left is harder to find and involves greater commercial risk. Very few exploration wells have been drilled in recent years. Will my right hon. Friend do everything possible in the review to ensure that a new era of exploration is stimulated to sustain the vital employment in those coastal communities?

Dawn Primarolo

I pay tribute to my hon. Friend, who has done a great deal, in the House and outside it, to raise the important issue of exploration, particularly in the difficult fields. He has also raised many points with my officials and me regarding the east of England economy. The review is looking precisely at this issue, and at whether further assistance can be given. I know that my hon. Friend understands that the Government are involved in a dialogue with the industry, and that he accepts that, before we commit taxpayers' money to further investments to assist the industry, we have to be sure that the return produces the type of results that he suggests. That is precisely what the consultation is addressing.