§ Mr. Skeetasked the Secretary, of State for Energy why is it Her Majesty's Government's policy that the British National Oil Corporation is not liable to petroleum revenue tax but the private sector is subject to the tax.
§ Mr. BennThe Petroleum and Submarine Pipe-lines Act provided for BNOC on this basis.
§ Mr. Skeetasked the Secretary of State for Energy why it is Her Majesty's Government's policy that the British National Oil Corporation pays rentals and royalties into the national oil account but alone has access to the national oil account into which all rentals and royalties are paid principally from the private sector.
§ Mr. BennThe arrangements with regard to petroleum royalties and rentals arise directly from the provisions of the Petroleum and Submarine Pipe-lines Act 1975 which were thoroughly debated in the House.
§ Mr. Skeetasked the Secretary of State for Energy why it is Her Majesty's Government's policy that the British National Oil Corporation is permitted to negotiate
336Winformation about intra-Community trade in coal in 1977:
participation agreements under licensing rounds 1 to 4 which the private sector may only refuse at the expense of securing licences in subsequent rounds.
§ Mr. BennIn awarding licences I intend to take account of factors which bear on the national interest. The performance of applicants in regard to voluntary participation negotiations constitutes one such factor. This was made clear in the arrangements published for the fifth round of licensing, and similarly features in the arrangements currently proposed for the sixth round.
§ Mr. Skeetasked the Secretary of State for Energy why it is Her Majesty's Government's policy that the British National Oil Corporation has an option to secure a stake in licences following the assignment of an interest by one of the co-licensees, although not invited to do so by any member of the group.
§ Mr. BennI refer the hon. Member to my statement of 5th April.—[Vol. 947, c. 439.] The policy gives BNOC the opportunity to negotiate the assignment of interests which the parties concerned freely and willingly wish to dispose of. Resultant agreements will continue to require my approval before they can become effective.
§ Mr. Skeetasked the Secretary of State for Energy (1) whether the British National Oil Corporation is bound by the instruction announced in the Official Report, 28th July 1977, column 380, relating to the making of crude oil supply contracts for periods beyond two years;
(2) whether the British National Oil Corporation is bound by the instruction to companies that two-thirds of crude oil produced on the Continental Shelf must be refined in the United Kingdom; and whether the two-thirds applies and will 337W continue to apply to the oil available to the Corporation in the 1980s.
§ Mr. BennI shall consult all oil companies including BNOC about their plans for oil disposal, in the light of the expectations expressed in the Government statements to which the hon. Member refers and the particular circumstances at the time.