HL Deb 18 November 1976 vol 377 cc1459-60

3.11 p.m.

Lord CAMPBELL of CROY

My 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 whether they have considered the compatibility of the role and proposed operations of the British National Oil Corporation with the Treaty of Rome, in particular with Articles 34, 37 and 90; and whether they intend to discuss these with the EEC Commission in the context of the circumstances likely to exist in the late 1970s and early 1980s.

Lord STRABOLGI

My Lords, the Government intend that the role and proposed operations of the BNOC shall be fully consistent with the Treaty of Rome. The Government have not been in touch with the European Commission on the matter.

Lord CAMPBELL of CROY

My Lords, I thank the noble Lord for that Answer. Are the Government looking ahead realistically and responsibly? These Articles provide for a ban on restrictions on trade between Members, and also for fair competition, and these are in the interests of the United Kingdom as much as in the interests of any other Member. While the BNOC appears to be being. prepared as a State Corporation, its operations would run counter to these Articles. Have the Government at least sounded the Commission, shortly to have a British President, about this general question?

Lord STRABOLGI

My Lords, we are of course willing to discuss the matter with the Commission should they wish to do so. The Government are confident that participation is fair to the companies, is in the national interest, and is consistent with our international obligations.

The Earl of LAUDERDALE

My Lords, can we take it from that reply that there will be no discrimination as to marketing, which is forbidden by Article 37, and that the BNOC will confirm with the EEC's rules about free competition under Article 90?

Lord STRABOLGI

My Lords, the Government's expectation is that up to two-thirds of United Kingdom continental shelf oil production will be refined in this country. This was stated by the then Secretary of State for Energy in December 1974. The Government are naturally concerned to maintain flexibility in any policy decisions. We do not see this as contravening the Treaty.