§ The Earl of LauderdaleMy 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 what percentage of orders for oil and gas development work and supplies for the United Kingdom continental shelf in 1983 was placed with companies based in the United Kingdom.
§ The Parliamentary Under-Secretary of State, Department of Energy (The Earl of Avon)My Lords, in 1983 the total value of orders reported by operators for oil and gas development work on the United Kingdom continental shelf was £2.61 billion. United Kingdom-based companies won 72 per cent. (worth £1.88 billion) of these orders.
§ The Earl of LauderdaleMy Lords, may I thank my noble friend for that, on the whole, encouraging Answer? Would he not agree first of all that the Government are to be congratulated on the success of their arm-twisting of oil companies to the extent that sometimes the companies are forced to accept British tenders for jackets and platforms at prices 10 per cent. above that of unsubsidised continental competitors? Will he not also agree that many of the British companies are not showing sufficient initiative and zest in going after the orders that are available?
§ The Earl of AvonMy Lords, I am happy to agree with my noble friend that there is satisfaction, of which the Government take a percentage, on the 2 excellent results coming from the North Sea. But, as he rightly says in the second part of his supplementary question, there should be no holding back, and we should continue to persevere in this field.
§ Lord Stoddart of SwindonMy Lords, I do not wish to belittle in any way the achievements of the British industry; but will the noble Earl confirm that over the next decade or so 50 per cent. of all oil discoveries are likely to be offshore, and therefore the British industry should be in a very good position to take advantage of all the export trade that will flow from that—£20 billion worth of it? Is he aware that in our view the United Kingdom industry will not be able to take advantage of it unless the Government give a real lead and not mere exhortation? Can I have the noble Earl's assurance that the Government will give that lead?
§ The Earl of AvonI very much hope, my Lords, that the noble Lord will agree that the Government, particularly the offshore office—which, I think, does exceptionally well in this field—are already doing so. The United Kingdom share of the market represents the value of the contracts and the main sub-contracts stemming from them, and these are placed with companies which through employment, manufacturing and subcontracting make a substantial contribution to our economy. I should also like to agree with the noble Lord that there is a lot of further work which we call do abroad on this, and that this should become an export market as well.
§ The Earl of LauderdaleMy Lords, will my noble friend not agree that it is very sad that the United Kingdom proportion of the expenditure on development drilling is this year down 11 per cent. as against last year, and that the participation, exploration and appraisal drilling is down to something like 34 per cent? Is it not the case that the terrible scandal of the Scott Lithgow affair has cast a blight over the whole industry and foreigners' appraisal of what our industry can do?
§ The Earl of AvonMy Lords, I very much hope that what my noble friend says at the end of his supplementary question is not the case. I believe that our North Sea oil industry has a great reputation. We 3 are at the moment building a great number of platforms and suchlike to help our oil industry progress. I hope very much, too, that the industry will continue to do so. I have no confirmation of my noble friend's figures.
§ Lord EzraMy Lords, in the light of the very encouraging report that the noble Earl gave us, would be agree, in view of the fact that the peak of our activities in the North Sea is likely to be reached very soon, that it should be the objective of the Government to see that this becomes one of the growth industries of Britain worldwide, that we do not limit ourselves purely to our own shores but that we go out for business on the basis of a very determined plan?
§ The Earl of AvonMy Lords, I appreciate what the noble Lord says which, in part, is what I replied to the noble Lord, Lord Stoddart. In fact, both my right honourable friend the Secretary of State and the Minister of State in the Department of Energy have been abroad to China and India to promote our export trade in this field.
§ The Earl of LauderdaleMy Lords, will my noble friend not agree that it is disappointing that even the service aspect of our interest in the North Sea, such as the support of personnel offshore, is now at a relatively low ebb—I think it is at about 50 per cent—and that surely is something which ought to be higher than it is at the present time?
§ The Earl of AvonMy Lords, I have no figures to substantiate what my noble friend has said. When I have been abroad I have been very impressed by the number of our own people working there in offshore industries.