HC Deb 11 March 1982 vol 19 cc489-90W
19. Sir William van Straubenzee

asked the Chancellor of the Exchequer what he calculates the tax revenue derived from North Sea oil will be in 1982–83.

Mr. Bruce-Gardyne

It is estimated that the total revenues from the North Sea, inclusive of royalties, supplementary petroleum duty, petroleum revenue tax and corporation tax before any ACT set-off will be £6,160 million for 1982–83. These figures are in table 19 of the Financial Statement and Budget Report 1982–83 which was published on Tuesday 9 March.

22. Mr. Douglas

asked the Chancellor of the Exchequer if he will make a statement on the effects on Government revenues of an increase or a decrease in the oil price of $1 per barrel.

Mr. Bruce-Gardyne

I refer the hon. Member to the answer given to my hon. Friend the Member for Sudbury and Woodbridge (Mr. Stainton) on 9 March 1982.—[Vol. 19, c. 378.]

Mr. Eggar

asked the Chancellor of the Exchequer if he will estimate the effect the most recent fall in North Sea oil prices will have on (a) the exchange rate, (b) output, (c) unemployment, (d) the public sector borrowing requirement and (e) the retail price index in the fiscal year 1982.

Mr. Ridley

[pursuant to his reply, 10 March 1982, c. 430]: The effects of the most recent fall in North Sea oil prices on United Kingdom economy will depend on how far, and when, they are matched by reductions in the prices of other crude oils, on the policy responses of other Governments and on a whole variety of other factors. Nevertheless, a fall in world oil prices can be expected to have a favourable effect on output and inflation, both here and abroad, and, therefore, in time on unemployment. The effect on the PSBR is likely to be unfavourable, hut considerably less than the direct impact on Government revenues from the North Sea. No accurate estimate can be made of the impact on the exchange rate, which also depends on the expectations formed by the foreign exchange markets about future movements in North Sea and world oil prices. Also, the price of oil is only one among many domestic and overseas influences on the exchange rates between sterling and other currencies. I refer my hon. Friend to what my right hon. and learned Friend said in his Budget Statement.