Fuel Supplies

Part of the debate – in the House of Commons am 12:00 am ar 5 Rhagfyr 1973.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Mr Peter Walker Mr Peter Walker , Worcester 12:00, 5 Rhagfyr 1973

On the question of shipments, the right hon. Gentleman knows that I took control over exports immediately the crisis arose. That control is effective. I hope that the House realises that, basically, we act as the refiners for a number of European countries, and likewise a number of European countries act as the refiners for this country. Last month's figures showed that exports and imports between the Common Market countries and ourselves were in balance.

If I had stopped all exports to Common Market countries and they had stopped all exports to us, there would have been a considerable deterioration in the supply position of several important fuel commodities. I am perfectly satisfied that the control in this sphere is working well and will continue to work well.

It is important to realise that the oil and fuel distribution system was operated on a European basis long before the Common Market was set up, and it will continue to be so operated. Obviously, we shall keep firm control of exports in future. There will be a deterioration in our import position as a result of the difficulties in Rotterdam, but that is a point to consider in future months if the embargo on Rotterdam continues.

On the question of the independents, it would be natural in such circumstances that a number of these independent firms which buy their oil in various markets, including Rotterdam, and which have been under-pricing the sales of the major oil companies, should now find themselves in considerable difficulties. It would also be natural if some of the major oil companies were not too sorry about this situation. But I am pleased to say that the major companies have agreed to a pooling system, and independents which have run short of oil are now receiving supplies from the major oil companies, and an overall distribution system will be preserved.

On the question of companies hoarding to await price increases, I appreciate that there have been such suggestions. But, in practice, if we look at the nature of deliveries to garages, which take place at regular intervals, it would mean that if anyone pursued that type of policy, he would have to stop his sales and would obtain no further deliveries and would suffer considerable loss of turnover. Therefore, in practice there is little need for concern in that respect.

On the question of the disabled—and the hon. Member for Willesden, West (Mr. Pavitt) earlier raised the question of the disabled, as well as the situation of doctors and social workers—a directive has been sent by the oil companies to suppliers asking them to make a special issue available when they are approached by a doctor or by a particular grade of social worker or a disabled person. This will enable those people to pick up their petrol at a time mutually convenient to both parties, without the sort of problems which have been created in London in the last few days. If any doctor or other person in the categories I have mentioned finds any problem in these arrangements, if he informs the local DTI regional office we will take up the individual case. I repeat that the oil companies have sent out a directive to all distributors and it will be met.

I should like to deal with the question of industrial production and the overall position mentioned by the right hon. Member for Bristol, South-East (Mr. Benn). In November the supplies were as anticipated. As for December on past projections which I have obtained from the oil companies it looks as though in total our oil supplies could fall short of what was anticipated by as much as 15 per cent. That figure is four and a half days' stocks, and this should be compared with the size of stocks in this country.

In terms of industrial production and the pattern of mobility of labour that operates in this country, particularly with the motorway system, the fact is that at the moment, with the cuts which have taken place, there is little report from industry that people are not able to get to work and carry on with industrial production. Under most rationing systems there would be difficulties of this nature.