HC Deb 06 December 1976 vol 922 cc67-8W
Mr. Rost

asked the Chancellor of the Exchequer if he is satisfied that the current tax régime as applied to North Sea oilfields provides sufficient incentive for an optimum percentage extraction of resources.

Mr. Joel Barnett,

pursuant to his reply [Official Report, 3rd December 1976; Vol. 921, c. 289], gave the following information:

The Oil Taxation Act and the Petroleum and Submarine Pipe-lines Act 1975 contain several provisions to encourage the development of the North Sea. The uplift of 75 per cent. on "capital" expenditure is a particularly valuable incentive.

Mr. Rost

asked the Chancellor of the Exchequer if he will introduce changes in the tax system for North Sea Oil development to encourage a higher percentage extraction of total reserves.

Mr. Joel Barnett,

pursuant to his reply [Official Report, 3rd December 1976; Vol. 921, c. 289], gave the following information:

I see no need at present for any such changes in the tax system for North Sea Oil.