asked the Secretary of State for Energy whether he is satisfied with the capacity of the British oil refining industry to refine North Sea oil.

The capacity of the British oil refining industry is more than sufficient to refine our current North Sea production. However, this would not be the cheapest way of meeting our demand for refined products, nor, because of the composition of North Sea oil, could it supply all of them. That is why we use a mixture of indigenous and imported crudes. The economics of British refining will be improved by current investment in plant to convert some less valuable heavy products into more valuable lighter products such as petrol.

Have the Government any specific measures in mind to encourage the oil industry to increase its refining capacity to provide more North Sea oil in this country?

My hon. Friend raises an interesting point. The most important point of all is to increase confidence in the industry and this, by future Conservative policies, we hope to do.

Will the Minister state what is Government policy towards the construction of independently operated oil refineries such as that proposed at Nigg Bay?

The Government have not taken any view on such a subject but would obviously consider every issue on its merits.

While dealing with refining, will the Minister say whether he or the Secretary of State have been able to obtain assurances from the international oil companies that they are not cutting supplies of crude oil into British refineries by more than 5 per cent.?

My right hon. Friend has had regular meetings with representatives of the major oil companies, and I can give my hon. Friend that assurance.