§ Mr. Eggarasked the Secretary of State for Energy if he will make a statement about the European Economic Community Council of Energy Ministers' meeting on 24 June.
§ Mr. David Howell1. The Council of Ministers (Energy) met in Luxembourg on 24 June. I represented the United Kingdom.
2. The Council agreed that the present easing of the world oil market must not lead to a slackening of international efforts to develop improved arrangements for handling a renewed tight market and to restructure the energy economies of Community countries in a way which would reduce dependence on imported oil. Ministers agreed that any new arrangements to deal with a tight oil market must, to be effective, involve other major consuming countries, particularly the United States and Japan, and be sufficiently flexible to cope with situations 167W that cannot he precisely foreseen in advance: but they should provide for the use of some stocks even though the market was not so tight as to require formal international allocation of oil. The Commission was asked to continue work on this subject including consultations with the oil companies and taking into account continuing discussions in the International Energy Agency. It will bring forward proposals in due course.
3. The Council stressed the need for a co-ordinated effort to counter the Community's vulnerability on energy and for an adequate level of investment particularly on the rational use of energy. The importance of economic pricing and market mechanisms was recognised. Investment in energy could provide new jobs but the possible inflationary effects should be watched. The Commission will pursue a sectoral analysis of energy investment and will submit proposals for the better co-ordination of national efforts and to promote increased use of coal in general industry.
4. The Commission reported on progress with the study of energy prices which it was asked to undertake by the Council on 3 March. The importance of economic pricing was again generally recognised, as was the need for detailed work if this principle was to be effectively implemented. The Council asked the Commission, to submit its detailed report in the near future.
5. The Council agreed that the register of imports of oil products should cease to operate from 30 June. The register of crude oil imports will continue until the end of 1981.