§ THE EARL OF LAUDERDALEMy Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government what machinery exists to identify suitable sites for development of oil refineries in view of the environmental and amenity objections which repeatedly hamper such developments and indirectly lay an extra burden on fuel costs to industry and the private consumer alike.
§ THE PARLIAMENTARY UNDERSECRETARY OF STATE, DEPARTMENT OF THE ENVIRONMENT (LORD SANDFORD)My Lords, while planning authorities are not under a duty to identify sites for refineries, certain studies have been carried out to this end. Moreover, a Working Party of officials has recently drawn up some general advice on matters affecting the siting of oil refineries and copies of this will be sent in a week or two to local planning authorities. It should help them both to identify suitable sites and to handle applications for planning permission. I will send my noble friend a copy.
§ THE EARL OF LAUDERDALEMy Lords, in thanking my noble friend for that reply, may I ask him whether the Working Party takes under consideration the point that where an oil company's best commercial judgment of the right site may be set at naught by environmental considerations, this could have an inflationary effect on the economy through the on-costs of fuel that may arise from a less economic siting? Is that a point borne in mind by the Working Party?
§ LORD SANDFORDMy Lords, I am sure that when my noble friend receives the report he will see that all conceivable relevant factors are taken into account. The balance between them that is taken in a particular case depends, of course, on any local inquiry that is held, and that is the moment at which their relative merits are judged.
§ LORD WYNNE-JONESMy Lords, can the noble Lord tell us whether Her Majesty's Government have yet formulated a fuel policy which would enable us to decide how many refineries will be required in the country, or will the decision be left entirely to the oil companies?
§ LORD SANDFORDMy Lords, the question of a fuel policy raises much wider issues going a long way beyond the Question on the Order Paper.
§ THE EARL OF LAUDERDALEMy Lords, may I take it from the noble Lord's reply that "all conceivable considerations" include the desirability of seeking to develop deep water sites on our estuaries?
§ LORD SANDFORDMy Lords, may I ask my noble friend to await the short period—I am sure it will be only a short one—before I am able to send him a copy of the report? I shall then be very pleased to deal with any further questions arising from it.
§ LORD BALOGHMy Lords, does the Minister realise that the presumable profits add, roughly speaking, 25 per cent. to the value of the oil?
§ LORD SANDFORDMy Lords, I would not want to argue at this point with the noble Lord about the figure, but, as I say, this and many other factors are balanced when it comes to a local inquiry into a particular application.
§ THE EARL OF PERTHMy Lords, is the noble Lord aware that twice in the last three or four years one of the leading American oil companies has tried to establish an oil refinery in the Clyde area and has failed, and is now certainly looking for somewhere else in Europe instead of this country? Would the noble Lord also bear in mind that not only should the local authorities know but that, if 2045 possible, the advice should be made public, so that we should not lose refineries which otherwise would come into this country?
§ LORD SANDFORDMy Lords, I take the noble Lord's point, but I must confess that I was not aware of these particular applications.