Prime Minister's question asked in the House of Commons, by Lord Bruce of Bennachie (Liberal Democrat). It was answered on Wednesday, 30 March 2011 on behalf of the Prime Minister.

Engagements

Question: In the light of the announcement by Statoil this week that it is cancelling £6 billion of investment in the North sea following the Budget, will the Prime Minister ensure that Ministers at the Treasury and the Department of Energy and Climate Change engage with the industry to explain how the field allowances might be adjusted to ensure that this valued investment goes ahead and that jobs are not lost?

Answer: I will certainly look carefully at the point that my right hon. Friend makes. The point that I would make about Statoil is that the regime in Norway has higher duties and taxes on petrol than the UK does. The key point is that when companies in the North sea made investment decisions, the oil price was about $65 a barrel, and it is now about $115 a barrel. I think that the break we are giving the motorist by cutting petrol tax—including for people in his constituency, many of whom rely on their cars—will be hugely welcome.

Secondary information