Lord CAMPBELL of CROYMy 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 how many building sites for offshore oil platforms are available or are being prepared in the United Kingdom without an order for a platform to be built there having yet been placed.
§ Lord LOVELL-DAVISMy Lords, five sites—one each at Portavadie, Campbeltown and Burntisland and two at Alness—have planning permission for the construction of production platforms and have not yet won orders. My right honourable friend the Secretary of State for Scotland has indicated that he is prepared to give planning approval for a sixth, at Hunterston. The development of the site at Portavadie is being financed 2 by the Government under the Offshore Petroleum Development (Scotland) Act in advance of receipt of an order.
Lord CAMPBELL of CROYMy Lords, I am grateful to the noble Lord for that Answer. May I ask him whether the Government are concerned that orders have been fewer than had been expected, as this probably denotes hesitation over developing marginal oilfields because of the Government's policies on taxation and 51 per cent. participation?
§ Lord LOVELL-DAVISMy Lords the fact is that we now expect fewer platforms to be ordered than we did when we made the statement on 12th August 1974, Construction sites for concrete production platforms. There are a number of reasons for this downturn. Increasing costs, for example, have caused operating companies to reappraise their development plans and further appraisal, drilling and increased knowledge of the geology have caused plans to be modified. Nevertheless, the platform market still represents a significant opportunity for British industry and one which we are determined to grasp, not only because of the value of the platforms themselves but also because of the considerable value of the equipment and services associated with the platforms. I do not accept the second part of the noble Lord's supplementary question.
§ The Earl of LAUDERDALEMy Lords, would not the Minister agree that exploration rigs have been leaving the 3 North Sea for continental shelves in other parts of the world, where the fiscal disincentives are less and the fiscal incentives are better?
§ Lord LOVELL-DAVISMy Lords, if the noble Lord will kindly refer to my Answer to a similar Question on Friday, he will have my views on this matter.
§ The Earl of LAUDERDALEMy Lords, I have seen that Answer and it is because it seemed inadequate that I am now pressing the matter.
Lord CAMPBELL of CROYMy Lords, on that point about rigs, may I ask the noble Lord whether the Government are not concerned about the departure from the British sector of drilling rigs, such as the six which I mentioned on Friday, which are reported to have moved to Norwegian, French and Irish waters?
§ Lord LOVELL-DAVISMy Lords, that is altogether another question. The Question I was asked by the noble Lord concerned building sites.