§ Mr. David Priceasked the Chancellor of the Exchequer whether, in view of the 525W fall in the market price of North Sea oil over the last year from about £8.20 a barrel to £7.20 a barrel, he still adheres to his estimate that the direct benefit of North Sea oil to the United Kingdom balance of payments on current account for 1978 will be £2.5 billion; and if he will make a statement.
§ Mr. Joel BarnettThe figure of £2.5 billion represents the difference between the value of oil exports and imports saved and imports of goods and services for the North Sea programme. The United Kingdom will still be a substantial net importer of oil in 1978. Thus our balance of trade in oil will be improved by the fall in the sterling oil price which is a result of the strengthening of the sterling/dollar exchange rate.