HC Deb 15 December 1978 vol 960 cc481-2W
Mr. Skeet

asked the Secretary of State for Energy what use has been made of section 41(3) of the Petroleum and Submarine Pipe-lines Act 1975 relating to

Men Women Total,
Perm Sec 2 2
Dep Sec 4 4
Under Sec 16 16
Ast Sec 28 3 31
Sen Prin 4 4
Prin 68 10 78
SEO 23 4 27
HEO(A) 5 4 9
HEO 75 24 99
Admin Trainee 12 1 13
EO 103 40 143
Exec Dir 1 1
Prof Acct A/Dir 1 1
Sen Econ Adv 3 3
Econ Adv 8 8
Sen Econ Ast 3 3

the remission of royalties ; and what representations have been made to him to use this facility to encourage the development of marginal fields.

Dr. Mabon:

No repayments of royalty have been made under section 41(3) of the Petroleum and Submarine Pipe-Lines Act 1975. I, and my right hon. Friend the Chief Secretary to the Treasury, have discussed the use of royalty repayments with oil companies as part of the consultations on the proposed changes in Petroleum Revenue Tax announced on 2nd August. Individual royalty refund applications are, of course, handled in confidence.

Mr. Skeet

asked the Secretary of State for Energy whether the relief afforded by the remission of royalties is sufficient to enable the developers of marginal fields both to earn a satisfactory rate of return and offset the rising cost of capital and operating expenses likely to be encountered.

Dr. Mabon:

The Government believe that the power to repay royalties will enable an adequate return to be earned on most marginal developments which are in the national interest.