HL Deb 25 October 1983 vol 444 cc127-8

2.44 p.m.

The Earl of Lauderdale

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government when they expect the disposal of British Gas Corporation oil assets to be completed.

The Parliamentary Under-Secretary of State, Department of Energy (The Earl of Avon)

My Lords, the Government intend to complete the disposal of the British Gas Corporation's oilfield interests as soon as possible.

The Earl of Lauderdale

My Lords, in thanking my noble friend for that astonishingly uninformative reply, may I ask him whether it is the Government's intention to carry through the disposal of the off-shore assets by way of a holding company, or asset by asset?

The Earl of Avon

My Lords, as my noble friend will be aware, there is already a company called Enterprise Oil. My noble friend is also probably aware that in the other place later today they are to discuss orders relating to this subject, and I believe it would not be right for me to anticipate my right honourable friend's speech.

Lord Bishopston

My Lords, why do the Government persist in their doctrinaire policy of hiving off parts of very profitable nationalised enterprises—profits which are of course necessary to offset some of the loss-making social assets? Will the Government reconsider their policy in relation to this vital national asset?

The Earl of Avon

No, my Lords, the Government will not reconsider it. Having just been to the electorate and received such an endorsement of their policies, that is hardly necessary.

The Earl of Lauderdale

My Lords, will my noble friend bear in mind that, if the disposal is asset by asset, far from being an ideological caper this would encourage the smaller companies to go into the North Sea and profit by buying PRT-paying assets, which they could offset against their exploration expenditure?

The Earl of Avon

My Lords, I shall bear in mind the remarks of my noble friend, but I still hope he will agree that at the moment I cannot comment on the method.

Lord Molloy

My Lords, can the noble Earl the Minister say to what use up until now the money which has accrued to the Government from the sale of these British public assets has been put? Is there any truth in the rumour that some of it was used to assist in tax reductions for the better-off? Can the noble Earl confirm or deny that, and at the same time tell us what is to be done with the money that has accrued to the Government from the sale of these public assets?

The Earl of Avon

My Lords, of course, when something accrues to the Government it accrues to the Government as a whole, and it is a matter of what the Government pay out as a whole. It is just like housekeeping. Because you sell one thing, you do not keep the money from what you sell for one particular item; it all goes into the budget. It is exactly the same in regard to this point.

The Earl of Lauderdale

My Lords, will my noble friend bear in mind, and pass on for the information of noble Lords opposite, the point that, thanks to the Government's tax concessions in the last Budget, there is now an upsurge of interest and of investment in the North Sea, for which the industry and the country should be jolly grateful?

The Earl of Avon

My Lords, I totally agree with what my noble friend says, and I can add that the exploration results are also encouraging.

Lord Molloy

My Lords, despite what has just been said, will the noble Earl the Minister agree that one of the principles of British Governments over very many years—indeed, decades—has been public accountability as to what has been done with public moneys, taxes or otherwise, which have been gathered, and how they have been distributed, usually by means of the Consolidated Fund?

The Earl of Avon

Indeed, my Lords, and I am sure that the present Government are following the system which has been followed for many years.