§ Mr. Stephen O'BrienTo ask the Chancellor of the Exchequer what assessment he has made as to the effect tax changes on North Sea oil and gas companies announced in the Budget statement 2002 are having on the competitiveness of the industry. [99025]
§ John HealeyThe Budget 2002 changes to the North Sea taxation regime make new investment in the North Sea more economic for oil and gas companies while extracting a fairer share of revenue for the taxpayer. The reforms are too recent for a comprehensive assessment of their overall economic impact, but the Government are encouraged by early evidence from the UKOOA report of November 2002, which found that
total capital expenditure for the period 2001–2010 is forecast to increase by around £1 billion, compared with last year's forecast.