§ Mr. Fauldsasked the Chancellor of the Exchequer what relationship is assumed or predicted by the Treasury model of the economy between each United States 1 cent. reduction in the value o the pound sterling and (a) the value per barrel of North sea oil production and (b) the revenue derived by the Treasury from that production.
§ Mr. MooreAt current levels of the dollar-sterling exchange rate and dollar oil prices a 1 cent. fall in the value of sterling against the dollar would raise sterling oil prices by about 1 per cent. Other things being equal, a 1 per cent. increase in sterling oil prices is expected to raise North sea revenues by about £150 million in a full year.