Mr. Robert G. HughesTo ask the Secretary of State for Energy whether he intends to review the role of the Oil and Pipelines Agency: and if he will make a statement.
§ Mr. Peter MorrisonThe Oil and Pipelines Agency (OPA) is responsible for collecting royalty in kind, for maintaining the arrangements for state participation in oil production in the United Kingdom continental shelf and for managing the Government pipeline and storage system (GPSS). Following review, the Government have decided to cease taking royalty in kind Notice is being given to the companies concerned that the final chargeable period for royalty in kind will run from 1 July to 31 December 1988, and that from 1 January 1989 all royalty will be taken in cash. With the ending of the trading activities of OPA, it will be my intention to phase out the participation arrangements with the oil companies. We shall be discussing with OPA and the industry the best means of achieving this. Discussions are taking place with my hon. Friend the Minister of State for the Armed Forces, with a view to the GPSS being transferred to his Department.