§ Mr. Gordon Brownasked the Chancellor of the Exchequer what is the estimate of North sea oil revenues for 1984–85 and 1985–86, assuming on average dollar to pound sterling ratio of (a) 1.40, (b) 1.30, (c) 1.20 and (d) 1.10.
§ Mr. MooreEstimates of North sea oil revenues for 1984–85 and 1985–86 were given in the Autumn Statement on assumptions that dollar prices for North sea oil, and the dollar/sterling exchange rate, will not change much from the current levels. The magnitude of the changes in the exchange rate postulated by the hon. Member, if they represented a change in the value of the dollar against all currencies, could have implications for dollar oil prices and tax revenues which need to be considered together with the more direct effects of exchange rate changes on oil revenues resulting from oil's being priced in dollars. It is estimated that the marginal effect on total tax taken from the North sea of a sustained one per cent. change in the sterling oil price is of the order of £150 million in a full year.