§ Mr. Macfarlaneasked the Secretary of State for Energy (1) if he will make a statement on the crisis measures agreed by the Council of Energy Ministers;
(2) what consultations he has had with the oil industry for the efficient implementation of the European Community's crisis measures;
(3) if he will place in the Library copies of the two manuals on crisis procedure drawn up by the European Commission.
§ Dr. J. Dickson MahonThe relevant EEC secondary legislation is as follows:
Oil stocks:
The 1968 and 1972 Directives, 68/414/ EEC and 72/425/EEC (Official Journal L308 of 23rd December 1968 and L291 of 28th December 1972), respectively require member States to maintain stocks of petroleum products at a level corresponding to at least 90 days' average daily internal consumption in the preceding calendar year. But they permit a deduction of up to 15 per cent. for consumption of products derived from indigenously produced oil.
Maintenance of supplies during an emergency:
(i) By a Council directive of 24th July 1973 (73/238/EEC—Official Journal L228 of 16th August 1973) member States agreed, in the event of difficulties arising in the supply of crude oil and petroleum products, to take powers to:
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- (a) draw on emergency stocks;
- (b) impose restrictions on consumption;
- (c) regulate prices in order to prevent abnormal price rises.
(ii) By a Council decision of 14th February 1977 (77/186/EEC—Official Journal L61 of 5th March 1977) member States agreed that in the event of supply difficulties the burden of deficits in supplies of oil and petroleum products should be fairly distributed among member States, and trade could be regulated by a system of export licensing.
(iii) By a Council decision of 7th November 1977 (77/706/EEC—Official Journal L292 of 16th November 1977) member States agreed that where difficulties arise in the supply of crude oil or petroleum products the Commission may set a target for reducing consumption of petroleum products in the Community by up to 10 per cent. of normal consumption, and propose further targets in the case of a prolonged crisis.
Consultations with industry:
My Department has had close and continuing consultations with the United Kingdom oil industry about the maintenance of oil stocks; and about the implementation of the Council decision of 14th February 1977. The industry will be kept in touch with the examination of the Council decision of 7th November 1977.
Implementation:
The detailed implementation of these two decisions is being examined by a working party in Brussels; it is understood that the Commission intends that the detailed arrangements will be set out in two operating "manuals". Parts of these manuals are likely to be confidential, but consideration will be given to making some of their contents available in the Library when completed.