HC Deb 24 May 2002 vol 386 c632W
Mr. Peter Duncan

To ask the Secretary of State for Trade and Industry what assessment she has made of the economic impact of the additional levy on the oil and gas industry announced in the Budget 2002. [57301]

Mr. Blizzard

To ask the Secretary of State for Trade and Industry what assessment she has made of the impact on the amount of oil and gas that will be extracted from the UK continental shelf as a result of the imposition of the supplementary charge on the oil and gas industry. [57440]

Mr. Wilson

The changes announced in his Budget by my right hon. Friend the Chancellor of the Exchequer need to be considered as a carefully designed package of measures, with two key elements—the 10 per cent supplementary charge and the generous 100 per cent investment allowance. I refer the hon. Member to the analysis of the likely effect of the measures proposed on new investment attached to the letter of 8 May from my right hon. Friend the Chief Secretary to the right hon. Member for Fylde, a copy of which has been placed in the Libraries of the House. The economic impact will depend principally on the impact on investment.

Mr. Blizzard

To ask the Secretary of State for Trade and Industry what assessment she has made of the impact on the PILOT initiative and its targets of the supplementary charge on the oil and gas industry. [57439]

Mr. Wilson

PILOT, the joint Government-oil and gas industry forum, has an extensive action programme to improve the industry's competitiveness. It is pursuing a number of visionary targets for 2010 and last year set interim production and investment targets for 2005. I expect PILOT to continue to monitor progress against these targets. The fiscal regime is one of many influences on the success of the industry in meeting them. The changes announced in his Budget by my right hon Friend the Chancellor of the Exchequer need to be considered as a carefully designed package of measures, with two key elements—the 10 per cent supplementary charge and the generous 100 per cent investment allowance.

Mr. Blizzard

To ask the Secretary of State for Trade and Industry what assessment she has made of the impact on the 20th licensing round of the supplementary charge on the oil and gas industry. [57438]

Mr. Wilson

The 20th offshore licensing Round closed on 16 April, prior to the Chancellor's proposed changes to the North Sea fiscal regime in his Budget. A slightly higher proportion of blocks offered was applied for in the current Round as in the previous North Sea Round (the 18th).