HL Deb 17 July 1979 vol 401 cc1273-5

2.47 p.m.

Lord BALOGH

My 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 was the value and tonnage of crude oil imports in May 1979

The MINISTER of STATE, DEPARTMENT of EMPLOYMENT (The Earl of Gowrie)

My Lords, the Department of Energy's preliminary estimate is that about 4.7 million tonnes of crude oil were imported in May, with a landed value of about 560 million dollars.

Lord BALOGH

My Lords, may I ask two supplementary questions. First of all, are those figures consistent with the claim that we are getting the full premium on North Sea oil? Secondly, 4.7 million tonnes means that more than half of our requirements are still imported.

The Earl of GOWRIE

My Lords, I am not sure that the second part of the supplementary was a question, but certainly as world prices have increased we are getting very good value for our superior grade of North Sea oil. The differential value between imports and exports is now standing at a little over 40p a barrel.

The Earl of LAUDERDALE

My Lords, would the noble Earl not agree that it is necessary to export some of our premium oil because it is unsuited to our needs in this country, which have to be met by importing?

The Earl of GOWRIE

My Lords, it is a pleasure to agree from this Box with my noble friend.

Lord WYNNE-JONES

My Lords, will the noble Earl not agree that what is done with our oil depends entirely upon the strange peculiarities of the distillation processes of international companies and is not a matter of national policy? Is it not surprising that we in this country put ourselves entirely in the hands of the seven sisters?

The Earl of GOWRIE

My Lords, I do not agree with the noble Lord. This country has a very strong interest in the flexibility of the distillation processes, and that is why we keep a close eye on them.

The Earl of LAUDERDALE

My Lords, would the noble Earl not agree that the seven sisters now have a gigantic ugly sister in the shape of BNOC, which conducts many of our export operations?

The Earl of GOWRIE

My Lords, I was undertaking a personal and interior wager as to whether BNOC would come into this question.

Lord WYNNE-JONES

My Lords, is it not true that we are really being saved entirely by the intervention of our own innovation—BNOC—not international innovation? Is it not true that if we did not have BNOC we should be entirely at the mercy of international combines?

Lord LEATHERLAND

My Lords, may I ask the noble Earl …

Several noble Lords: Answer!

The Earl of GOWRIE

My Lords, I am not sure that the noble Lord was asking for information. He was stating a point of view about the British National Oil Corporation.

Lord WYNNE-JONES

My Lords, may I make a comment? I was asking for information and I continue to ask for information. The information for which I am asking is whether the noble Earl is in a position to tell the House what is decided by the Department of Energy.

The Earl of GOWRIE

No, not at present, my Lords. However, the moment that I am in such a position I shall of course honour my obligations to do so.

Lord STRABOLGI

My Lords, arising out of what my noble friend has said, will the noble Earl confirm that the Government will keep the BNOC in being and continue to exercise control over our North Sea oil and not allow it just to be exploited by the multinational oil companies, although I appreciate the work that they do?

The Earl of GOWRIE

My Lords, I have been very concerned not to weary the House with the answer that I always have to give when the BNOC is raised—namely, that this matter is under review. It is under review and the moment that review is completed it will be my job and my honour to let the House know what has been decided.

Lord LEATHERLAND

I should like to ask the noble Earl whether, in stating the value of this oil to Britain, he can explain it in terms of pounds sterling in addition to explaining it in dollars?

The Earl of GOWRIE

My Lords, I think that there are at present many nations throughout the world who would prefer that oil transactions took place in sterling rather than dollars. Nevertheless the dollar is, as it were, the trade currency in the oil business.