HC Deb 13 November 2003 vol 413 cc400-1W
Mr. Nicholas Brown

To ask the Secretary of State for Trade and Industry what estimate she has made of the impact of the Energy Chapter of the Draft EU Constitituion on private sector investment in the North Sea oil and gas fields; and what representations she has received. [137650]

Mr. Timms

The Department has made an assessment of the potential impact of the draft Constitution on the Department's powers to regulate recovery of hydrocarbons from the UK Continental Shelf. The potential impact of such changes on future private sector investment is a matter of some debate— not least owing to the changing roles of established players and a number of new entrants. There is considerable Community competence already in the field of energy, and a number of Directives and Regulations have been brought forward in the areas of energy and environment, often under qualified majority voting. Nevertheless, the Government will only agree to an extension of competence in energy policy if it is consistent with the UK interest, and a number of organisations with UK oil and gas interests have made representations to Ministers.

Mr. Nicholas Brown

To ask the Secretary of State for Trade and Industry what impact she estimates the Energy Chapter of the Draft EU Constitution will have on the North Sea oil licensing regime. [137722]

Mr. Timms

EU competence in energy matters, including natural resources, will fall under Article 111–157 of the draft Constitutional Treaty, with voting by qualified majority. There is considerable Community competence already in the field of energy, and a number of Directives and Regulations have been brought forward in the areas of energy and environment, often under qualified majority voting. There is a carve out to preserve "Member State's choice between different energy sources and the general structure of its energy supply", where our understanding is that the EU would have to act by unanimity. Discussions on the draft Treaty are continuing in the framework of the Intergovernmental Conference: the UK Government would not agree to any proposals that was inconsistent with UK energy interest.

Mr. Blizzard

To ask the Secretary of State for Trade and Industry what effect she estimates the proposed energy chapter in the European Union constitution will have on licensing arrangements for the exploitation of the UK's offshore oil and gas. [137760]

Mr. Timms

EU competence in energy matters, including natural resources, will fall under Article 111–157 of the draft Constitutional Treaty, with voting by qualified majority. There is considerable Community competence already in the field of energy, and a number of Directives and Regulations have been brought forward in the areas of energy and environment, often under qualified majority voting. There is a carve out of preserve "Member State's Choice between different energy sources and the general structure of its energy supply", where our understanding is that the EU would have to act by unanimity. Discussions on the draft Treaty are continuing in the framework of the Intergovernmental Conference: the UK Government would not agree to any proposal that was inconsistent with UK energy interests.