§ Mr. Skeetasked the Secretary of State for Energy what is his estimate of the added value in the use of crude oil and derivatives in the manufacture of the commonest petrochemicals including polyethylene, polypropylene, PVC and polystyrene.
§ Mr. CryerI have been asked to reply.
An inspection of market prices indicates that the manufacture of basic petrochemicals adds to the value of oil feedstock by the order of magnitude of at least 5 to 1, but an accurate figure is not readily available from official statistics.
A figure for net output can be calculated from published statistics by deducting from gross output all purchases—adjusted for stock changes—payments for work given out and the net amount of duties, subsidies, allowances and levies payable. On this basis, the net output of organic chemicals, synthetic resins, plastics materials and synthetic rubber in 1976 was £1,200 million. The corresponding figure for 1975 was £830 million. It is not possible in these figures to distinguish between the commonest petrochemicals and other chemicals based on hydrocarbons such as high value specialised chemicals.