§ Mr. Skeetasked the Secretary of State for Energy if he will consider revising the field-by-field approach by petroleum revenue tax in favour of a broader grouping of fields in the North Sea in the light of operating experience and to assist the viability of marginal fields.
§ Mr. DellI have been asked to reply.
This matter was fully debated at the Committee stage of the Oil Taxation Act and I have no plans to amend the field-by-field basis for petroleum revenue tax.
§ Mr. Skeetasked the Secretary of State for Energy if he will consider providing an allowance against petroleum revenue tax for the exchange losses resulting from the depreciation of sterling and incurred by operators borrowing foreign currency to finance investment in the North Sea.
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§ Mr. DellI have been asked to reply.
As stated by my hon. Friend the then Minister of State in debate on the Oil Taxation Bill—[Official Report, Standing Committee D, 6th February 1975; c. 716–26]—the treatment of exchange losses has to be considered in the wider context of company taxation.
§ Mr. Skeetasked the Secretary of State for Energy if he will consider modifying the oil allowance for petroleum revenue tax purposes to accord with the pattern of production of different fields in the North Sea.
§ Mr. DellI have been asked to reply.
The existing rules, which ensure that the oil allowance is of proportionately greater benefit to the marginal fields, were debated at some length last year and I do not consider that a case has been made for amending them on the lines suggested.
§ Mr. Skeetasked the Secretary of State for Energy what would be the effect of an 8 per cent. reduction of petroleum revenue tax on the rate of return of marginal fields.
§ Mr. DellI have been asked to reply.
Because of the reliefs in the Oil Taxation Act which are designed to benefit marginal fields in particular, a simple reduction in the rate of petroleum revenue tax would probably have little effect on their rate of return.