HL Deb 25 March 1981 vol 418 cc1158-9

2.40 p.m.

Lord Glenkinglas

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 the proposed budget increase of 20p on a gallon of petrol is likely to encourage the OPEC countries to believe in restraint in their demands for higher prices, and if so for what reason.

The Minister of State, Department of Employment (The Earl of Gowrie)

My Lords, we have no reason to believe that the 20p increase in duty on a United Kingdom gallon of petrol will influence OPEC prices. In real terms, the 20p increase has restored petrol duty to just under its November 1973 level.

Lord Glenkinglas

My Lords, may I thank my noble friend for that reply? May I ask him whether he is aware that during the past 10 years I have had to visit almost all the big oil-producing countries in one official capacity or another, and on almost every occasion I have been chided for the hypocrisy of succeeding Governments in blaming the OPEC countries for increasing the price of oil when most of the price was in fact increased by the Governments of the day in their own countries? Is my noble friend also aware that I have to visit Dubai on Friday and I was hoping for a helpful reply?

The Earl of Gowrie

My Lords, I am always delighted to try to help my noble and extremely experienced friend with his travels. The fact remains that crude oil prices have risen by about 1,800 per cent. since 1973, and, as I have said, in real terms this duty increase has only restored petrol duty to the level it had reached before 1973.

The Earl of Lauderdale

My Lords, is it not the case that the OPEC countries continually call for restraint in the use of oil by the industrialised countries? This 20p on a gallon of petrol ought to fit in with that demand and desire by the OPEC countries.

The Earl of Gowrie

My Lords, I am sure that the OPEC countries will be pleased to see that the United Kingdom is moving towards economic pricing.

Lord Strathclyde

My Lords, were the figures stated in reply to the question a measure of the impact of inflation?

The Earl of Gowrie

My Lords, the figures I gave are the indications of the inflation that has occurred.

Lord Paget of Northampton

My Lords, since we are one of the world's largest oil producers, why are we not an OPEC country? Would it not be much nicer to decide to be an OPEC country instead of a Common Market one?

The Earl of Gowrie

My Lords, I am not quite sure whether the alliances of the United Kingdom in international diplomatic terms quite fall within the remit of the Question.