§ Mr. Kennedyasked the Secretary of State for Energy, pursuant to his reply to the hon. Member for Ross, Cromarty and Skye on 25 July, Official Report, c. 775, whether he will explain in more detail how the new measures for the industry will affect the number of oil platform construction yards.
§ Mr. Buchanan-SmithThe fiscal incentives announced in the Budget and being given effect through the Finance Act 1983 and the Petroleum Royalties (Relief) Bill are aimed at increasing the pace of United Kingdom continental shelf development. These incentives include immediate tax relief for exploration and appraisal expenditure, doubled oil allowance and abolition of royalty for new fields outside the southern basin, and phasing out of advance petroleum revenue tax. They are expected to result in the early development of fields which otherwise might not have started, and therefore to increase 751W significantly the work available to the United Kingdom offshore construction industry. It is impossible to quantify the volume of such work, but we shall encourage UK yards to win a high proportion of it.
§ Mr. Kennedyasked the Secretary of State for Energy whether he considers expected levels of activity in the North sea oil and oil related industry to safeguard the futures of the Nigg and Kishorn platform construction yards.
§ Mr. Buchanan-SmithThere are several new projects which will provide opportunities for these yards to bid for work in the United Kingdom sector of the North sea and elsewhere. Their success will of course depend upon their competitiveness and flexibility.