§ Mr. Blizzard
To ask the Chancellor of the Exchequer what legislative arrangements are necessary for the abolition of royalty tax on UK oil and gas production. 
§ Mr. Wilson
I have been asked to reply.
The Government intend, subject to consultation on the appropriate timing, to abolish North sea royalty. Royalty is paid as one of the considerations for petroleum production licences issued by my right hon. Friend the Secretary of State for Trade and Industry, but only in respect of production from oil and gas fields for which development consent was given before 1 April 1982. The Government propose that the abolition of North sea royalty from these fields will be achieved by an irrevocable renunciation of the right to take royalty from licensees from the date chosen for abolition. I expect to issue a consultation paper on this subject to industry in the near future.