117. Mr. Bennettasked the Minister of Fuel and Power to what extent the American oil companies have agreed to supply this country with the extra petrol required under decontrol of petrol; if he has any estimate of the probable value of this petrol; and if he will give an assurance that the sterling so acquired will be entirely spent on purchasing tankers.
§ Mr. P. Noel-BakerThe United States oil companies have agreed to supply for sterling their share of any increase in consumption of petrol arising from the abolition of petrol rationing. If, as has been estimated, consumption in the U.K. increases by one million tons per annum, the share of the United States companies would be 350,000 tons per annum, and would cost about £5 million.
As I told the House on 26th May, the companies have undertaken to spend this sterling in the sterling area on additional goods and services to be used by them in their oil operations, or on the building of tankers here. There is no question of their spending all the sterling on building tankers, and it would be unreasonable to restrict their freedom to spend sterling in the way which the hon. Member suggests.