HL Deb 26 March 1952 vol 175 cc962-4

2.37 p.m.

EARL HOWE

My Lords, I beg to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government what were the relevant considerations governing the decision not to approve the introduction of branded petrol; and whether it is noticed that this may have repercussions on engine design and manufacture as compared with cars produced in other countries.]

THE EARL OF SELKIRK

My Lords, it is Her Majesty's Government's desire to permit the oil companies to return to the pre-war practice of marketing premium brands of motor spirit as soon as the economic and financial conditions of the country make it possible to do so. The question of the effect of this matter on engine design is appreciated. At the moment, however, it is essential that the output from oil refineries in the sterling area, and generally from all refineries owned by British oil companies, should be increased to the maximum. Unfortunately, however, the manufacture of premium brands of motor spirit would mean a sacrifice of quantity to quality, and cannot therefore be authorised for the present.

EARL HOWE

My Lords, while thanking the noble Earl very much for his explanation, I should like to ask whether he is aware that the refusal to authorise production of branded petrol leaves a certain amount of recently constructed plant in the great refineries, such as that at Fawley, completely unused, and therefore reduces the economic efficiency of those factories. And is the noble Earl aware that in other countries, almost without exception, you can get better petrol than we have in this country? It is true that slightly higher prices are charged, but you can get far better petrol in France, for example, than in this country. If that is so, may I ask the noble Lord how it comes about that a country like France, whose economic position is just as difficult as our own, is able to afford these things while we are without them here?

THE EARL OF SELKIRK

My Lords, I am afraid the noble Earl must ask another question if he wants to know about the situation in France. I am not in a position to deal with it now. But it is not true that the great majority of other countries have a higher standard of petrol than we have. They certainly do not have a premium brand. For instance, the sterling area do not have a premium brand at all. With regard to the noble Earl's question concerning the "cat-cracker" plants which are not being used for their proper purpose, I may say that there is considerable flexibility in the use to which this refinery equipment can be put, and various ideas for using the equipment, even in unconventional ways, to achieve the greatest benefit to our balance of payments are under discussion with the oil industry. Though these plants may not be put to their original use, it is hoped that they may be put to a useful purpose more valuable in our present economic position.

EARL HOWE

My Lords, will the noble Earl examine the first part of his last answer? Is he not aware that in France you can buy either ordinary carburant or super-carburant which is, in fact, a premium brand of petrol? And if that is possible in France, why not in this country? I do not ask for a reply now, but I should be much obliged if he could go into this question.

THE EARL OF SELKIRK

I will certainly examine that point further.