§ 35. Mr. Evansasked the Chancellor of the Exchequer what has been the effect on the balance of payments of the recent drop in oil revenues; and if he will make a statement.
§ Mr. MacGregorThe balance of trade in oil was £200 million higher in the first quarter of 1986 than in the previous quarter. If oil prices had been unchanged the balance of trade in oil would have been £½ billion higher. Lower oil prices will have reduced profits of foreign oil companies operating in the United Kingdom, thereby improving the IPD component of the invisible balance, but figures on this are not yet available.