§ 3.5 p.m.
§ LORD ERROLL OF HALEMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government why, in their Statement on the granting of production licences for oil and gas on the Continental Shelf, they stated that options had been given to the National Coal Board, when in fact they have to be paid for; how much the options cost; and for how long they will last.]
§ THE JOINT PARLIAMENTARY UNDER-SECRETARY OF STATE, HOME OFFICE (LORD STONHAM)My Lords, my noble friend Lord Hobson, whom the House will regret to learn is in hospital as the result of a sudden illness, correctly stated that these options had been given to the National Coal Board. The Board made no payment and will incur expenditure only if and when the options are exercised. I cannot disclose the detailed terms of the options, but they will remain open long enough to allow Parliament reasonable time to consider the necessary extension of powers to enable the Board, if it thinks fit, to take them up.
§ LORD ERROLL OF HALEMy Lords, I am sure that all noble Lords will join in wishing the noble Lord, Lord Hobson, an early return to health. May I ask the noble Lord, Lord Stonham, since these options were in fact given, what pressure was exerted by Her Majesty's Government on these two unfortunate American companies which have had to 1372 surrender something of great value without receiving anything in return?
§ LORD STONHAMMy Lords, I am sure that the noble Lord has entirely misconceived the situation. The options were not even solicited by the National Coal Board. They were offered by the two companies, presumably as a result of the Statement made by my right honourable friend the Minister of Power in another place on July 21, 1965, which I myself repeated in your Lordships' House on the same day. Speaking of the considerations which he would have in mind in awarding licences, my right honourable friend said:
I shall also take into account any proposals which may be made for facilitating participation by public enterprise in the development and exploitation of the resources of the Continental Shelf."—[OFFICIAL REPORT, Commons, Vol. 716, col. 1580; 21/7/65.]This is an example of just that.