Orders of the Day — Energy

Part of the debate – in the House of Commons at 12:00 am on 25 February 1975.

Alert me about debates like this

Photo of Mr Patrick Jenkin Mr Patrick Jenkin , Redbridge Wanstead and Woodford 12:00, 25 February 1975

I accept that there have been delays all along, but I hope that the hon. Gentleman will equally accept that, whereas a year ago it was impossible to get a rig for love or money less than two years ahead, one can now go straight into the market and get rigs, because companies do not want to take up their options.

Then there is participation. Here I must confess to being totally bewildered about what the Government are trying to do. At first it was the money that they were after. This was clearly spelled out by the Secretary of State in an article in the Glasgow Herald during the election; They —the Government— will acquire a direct stake in the most profitable investment going in this country … The return on the public half-share participation will be sufficient to pay back the whole initial investment in about a year or so. Only a month or two ago, the Under-Secretary of State made the same point at a conference when he said that participation was needed by the Government to guarantee its revenue not simply by taxation but also by a share of profits earned on its investment … I find it difficult to understand why what is a good investment for the oil companies and others is not equally good for the nation.