North Sea Oil

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 28 February 1991.

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Photo of Mr Roy Hughes Mr Roy Hughes , Newport East 12:00, 28 February 1991

To ask the Chancellor of the Exchequer what is the cumulative total of all taxes from North sea oil since 1979 in 1989–90 prices.

Photo of Mrs Gillian Shephard Mrs Gillian Shephard Minister of State (HM Treasury)

The total over the period since 1979–80 is estimated at around £94 billion.

Photo of Mr Roy Hughes Mr Roy Hughes , Newport East

Since Britain is back in recession and facing a huge trade deficit, since our industrial training is poor by any standards and since investment in manufacturing is declining yet again, does not it appear that North sea oil revenues have been largely squandered? Is not that a major indictment of the Government after nearly 12 years in office?

Photo of Mrs Gillian Shephard Mrs Gillian Shephard Minister of State (HM Treasury)

It is extraordinary that Opposition Members continue to knock British achievements. North sea oil revenues have contributed to the reduction of overseas debt and of the public sector borrowing requirement as a share of the gross domestic product, thus freeing resources for private investment. Our net overseas assets rose from £12½ billion at the end of 1978 to £112 billion at the end of 1989. That is the highest proportion of all major countries as a percentage of GDP and it is no mean achievement.