§ Mr. Rowlandsasked the Secretary of State for Energy, pursuant to the reply to the hon. Member for Merthyr Tydfil and Rhynmey on 11 June concerning the sale of the British Gas Corporation's Wytch farm interests, if he will estimate (a) the liabilities for tax, what form these will take and when they will arise; and (b) the level of royalties and approved costs in connection with the sale.
§ Mr. Peter WalkerThe tax position of individual taxpayers, whether personal or corporate, is under statute570W a confidential matter between the taxpayer and the Inland Revenue. It is not for me to intervene in the settlement of tax liabilities arising from the sale of PL 089 between British Gas and the Inland Revenue.
On royalties, PL 089 incorporates the model clauses set out in schedule 3 to the Petroleum and Submarine Pipelines Act 1975; model clause 9 describes the way in which the royalty payments shall be calculated. The royalties relating to British Gas's period of ownership are still a matter of negotiation but similar considerations of confidentiality apply to them.
On approved costs, I refer the hon. Member to my reply to him of 8 June about internal and external costs.