§ 25. Mr. Douglasasked the Chancellor of the Exchequer if he will make a statement on the effect of the declining value of the pound sterling on revenues from oil and gas production in the United Kingdom sector of the continental shelf.
§ Mr. Peter ReesSince oil is priced in dollars, a depreciation of sterling against the dollar will in the short term result in a higher sterling oil price and higher North sea revenues. I also refer the hon. Member to the Financial Secretary's reply of 9 February 1984, at column735, which gives the revenue effects of a change in the dollar oil price.