Orders of the Day — Nationalised Industries

Part of the debate – in the House of Commons at 4:43 pm on 10 November 1981.

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Photo of Mr Nigel Lawson Mr Nigel Lawson Secretary of State for Energy 4:43, 10 November 1981

No, I will not give way. I have made the position clear.

I was about to inform the House—so that the right hon. Gentleman can form a proper judgment on whether our national assets are in jeopardy—of some of the powers that I have as Secretary of State for Energy for the control of North Sea oil. I have powers to ensure that all developments are carried out in accordance with good oilfield practice, that recovery of oil and gas is maximised and that wasteful or inefficient development is avoided. I can set production limits for oil and gas in accordance with the national interest.

No submarine pipelines may be laid in United Kingdom territorial waters or designated areas without my authorisation. No drilling of exploration or development wells can take place without my approval. No development work may be carried out and no petroleum may be produced except with my consent or in accordance with a development programme approved by me. All petroleum produced from offshore fields must be landed in the United Kingdom unless I permit otherwise.

There can be no gas flaring without my consent. I address that point to the right hon. Member for Bristol. South-East, who said in a radio or television interview that privatisation of BNOC would result in all the gas being flared and wasted. That is absolute poppycock, and he should know that. He was Secretary of State for Energy, much to the nation's misfortune, for longer than anyone else. He should know that the gas flaring power under legislation resides with the Secretary of State for Energy and with the Department. It is interesting to know that since the Government came to office gas flaring has been roughly halved—that is, since the right hon. Gentleman was Secretary of State for Energy.