§ Mr. Campbellasked the Secretary of State for Energy if it is still the Government's policy to refine two-thirds of North Sea oil in the United Kingdom; and, if so, whether he is confident that present refining capacity will be sufficient to handle 65 to 85 million tons per year of low-sulphur crude from the North Sea together with the other types of imported crude necessary to refine for the correct market pattern.
§ Mr. John SmithThe refinery policy announced by my right hon. Friend the previous Secretary of State on 6th December 1974 remains unchanged. That statement made clear that additional refining capacity will be needed to achieve the Government's objectives.—[Vol. 882, c.646–8.]
§ Mr. Campbellasked the Secretary of State for Energy what firm undertakings have been given by oil companies to upgrade their United Kingdom refining capacity since his Written Answer on 6th December 1974—[Official Report, columns 647, 648 and 649]—when it was emphasised that such upgrading was necessary in order to reduce imports of petrol and naphtha.
§ Mr. John SmithThe statement referred to has been discussed with all the main United Kingdom oil refining companies. A number of these have said that they are considering new upgrading capacity and have undertaken to keep the Department in touch with their plans.
§ Mr. Campbellasked the Secretary of State for Energy whether the proposed investment in an oil refinery at Nigg Bay on the Cromarty Firth is consistent with the Government's national policy on refineries.
§ Mr. John SmithA planning application for this refinery scheme was the subject of a public inquiry earlier this year, which had before it the statement of 6th December 1974 announcing the Government's refinery policy. My right hon. Friend the Secretary of State for Scotland has not yet received the report of the inquiry. I cannot comment on the proposal at this stage.