§ Mr. Eggarasked the Chancellor of the Exchequer what he estimates the fall in anticipated oil taxation revenue in the fiscal year 1982 to be as a result of the most recent fall in North Sea oil prices; and on what assumption this estimate is made.
§ Mr. RidleyA reduction of $4 per barrel sustained from the beginning of March to the end of the year might reduce Government revenues from the North Sea in 1982–83 by about £850 million compared with a situation where prices remained at their end-February levels.
This estimate assumes that oil production and capital expenditure in the United Kingdom sector of the North Sea are unaffected by the price change, as is the sterling-dollar exchange rate.
§ Mr. Eggarasked the Chancellor of the Exchequer if he will estimate the effect the most recent fall in North Sea oil prices will have on (a) the exchange rate, (b) output, (c) unemployment, (d) the public sector borrowing requirement and (e) the retail price index in the fiscal year 1982.
§ Mr. RidleyI shall let my hon. Friend have a reply as soon as possible.