British National Oil Corporation

HC Deb 30 April 1975 vol 891 cc148-9W

Mr. Skeet

asked the Secretary of State for Energy whether it is proposed that the BNOC should operate on commercial principles.

Mr. Varley

The British National Oil Corporation will be expected to operate according to commercial principles when it is in partnership, or when it is engaging in downstream activities such as refining or marketing, but not necessarily when acting alone as the agent of Government.

Mr. Skeet

asked the Secretary of State for Energy what rate of return on capital the BNOC is expected to earn.

Mr. Varley

This will depend on the financial duties laid on the corporation under Clause 5, and these have not yet been determined.

Mr. Skeet

asked the Secretary of State for Energy why the BNOC will not be expected to pay petroleum revenue tax like any other company operating in the North Sea, under the Oil Taxation Bill.

Mr. Varley

The BNOC will be paying all its revenues into the National Oil Account; the exemption from PRT is an internal administrative measure to simplify transactions within Government.