§ Mr. Alistair DarlingTo ask the Chancellor of the Exchequer what proposals he has to change the taxation of oil companies operating in the North sea; and what proposals he has to alter current rules governing reliefs companies may claim in respect of decommissioning or scrapping of oil installations. [31225]
§ Mr. Jack[holding answer 28 June 1995]: A number of structural changes to the rules for petroleum revenue tax were made in 1993 and my right hon. and learned Friend has no proposals for further major changes to that tax. The cost of decommissioning North sea oil installations is one of the costs of extracting oil in the North sea. As it is the profits of North sea oil companies that are taxed, it is right that tax reliefs should be given for relevant decommissioning costs.