§ Mr. Skeetasked the Secretary of State for Energy what is his estimate of the current rate of inflation that is affecting the manufacture and installation of production platforms and equipment in the North Sea; and what percentage increment in costs is likely to accrue through compliance with the provisions of the Health and Safety at Work, etc. Act 1974 and the Control of Pollution Act 1974.
§ Mr. BennIt has not proved possible to separate the impact of inflation from the real design changes and other factors affecting the cost of production platforms and equipment in the rapidly changing North Sea sector. For forecasting purposes it is assumed that the fixed investment goods price index applies: in the last quarter of 1977 this index was 10.7 per cent. above a year earlier.
396WThere will be no appreciable increment in costs due to the recent extension of application of the Health and Safety at Work, etc., Act 1974 to include offshore production platforms or due to the application of the Act to the construction of production platforms and equipment on shore.
The relevant provisions of Part II of the Control of Pollution Act 1974 have not yet been implemented, but will apply only to areas of sea up to three miles from the coast.