§ Mr. Donald Stewartasked the Secretary of State for Trade and Industry what is the total revenue expected by the 261W Exchequer including royalties, site rentals and profits tax per million tons of crude oil extracted from the North Sea.
§ Mr. RidleyI am not able to say, because it is not possible at this stage to estimate the wellhead value of the oil—on which royalty is charged at 12½ per cent.—and there are many unknown factors which prevent a forecast of taxable profits. Any rental relating to the area of production would, under the licence conditions, be deductible from the amount of royalty payable.