The picked up. But how true is this?
oil.
In the White Paper of 1974, the Government pledged itself 'majority stale interest" in all existing North Sea oil field licences. Labour Party clection lesto of that year (and sino 9641 talked of the North Sc and Irish Sea oil resourcel: needing to come UTOL public ownership. Getting and distributing them, should come under Government control as well.
Tony Benn is reported at the Department of Energy Terebce 1n June avouring oil resources being in the hands of the State This SARICE the British National Oil Corporation was set up in January 1976 as a first step to ensure this task. Thus sprang up the much vaunted state 'participation.
The White Paper said that majority state interest standard practice in every ther oil producing country 1 he world and it was a fair buted is stare of the costs: since the State contriThe Labour White Paper was thus proposing similar terms as the Middle East countries terms of the ownership of oil. DETERIN of 'participation' was rather different.
The formation of the British National Corporation meant an increasing role for but a role is different from control. In article in the Sunday Times (16 Jan 1977) Lord Kearton, the appointed chairperson put it in perspective: to chide us in the carly days when the policy of 51 per cent preper as the BNOC baying a State participation was interper cent equity in cxisting fields. And goes on to BNOC'S policy ming largely a means getting information so as to tax CUILICRIEY revenues What BNOC wanted was 30 option to buy 51 per cent of a company's oil at fall market price and a seat for BNOC on the board of all companies aperating in the oil ficids. con- All that entails securing a certain supply of oil and making sure that the oil companies, as is their habit, do not avoid taxes. Its options to buy would bring in 24 million LOTS or ou a veur. Kearton, but it is not going to AGREEMENT was In the case of B.P. Tor instance, BNOC only exercises asmalll part of the hetween 1979 and 1981. BNOC will buy only 12 to 16 per cent of Dil: The corporation will, from 1982 to 1989 retain only 16 per cent and 12.75 per cent in the remaining years. Toay Hein sid or ts asrerment LESL significance. and of corporation would have an effective voice in the running of all commercial oilfields in which B.P. has an interest.
This is certainly a far cry from the Labour prociniming the need Bes Thatcher war quite right Under the guise of conrolling | public ownership and control.
interest BNOC took only non-voting presence 0B operation committees. Keter int to the agreement with B.P., Kearion was quated Scotsman as saying 'we have not nanomausou anyanc. our - agreements voluntary.' The oil companies certainly did not put up much of a struggle.
REVITALISE It is being argued by all the political parties in Parlinment of that government from oil can create a surplus it property. the balance or Daymens, 850 for revitalising the economy. Revenues will build up in the years E3,500 million and by 1985 to 15 million at 3.5 percent apd 5 per cent of the Gross National Product respectively. Bean is LOSIOR ER about Party and in the NEC inning in the Parliamentar for the setting up of a special fund to deplay said of the North Sea revenues to reduce unemployment.
Jones is crying for this 14,000m he realised April budget. Callaghan and Healey half this about 2 per cent of GNP. Most Likely they will win. option It has already been argued in Socialist Chullenge 1977) that, most likely, per cent will be used for restructuring industry and, due to the coming elections, Labour will he likely to put the other 1 per cent inso decreasing taxes and 'major boosting health and education the expenditure.
In Benn's schema, two per cent is little in terms of International competition and Investment. Britain has lagged Manifesto bebind for investment by per cent in GNP terms.
B.P have been revenues and E4,000 million Jack the are arguing for about which is (20 much try, companies so there will he One Dr SIPHECIE COONE"
CHUCE MS One much workforce of 1,200 they had | 1977 and would have been per cent is not going to make performance of British indus70 ner cent of are multi-nationa title profit make ploughed back. There will be impact unemployment as, orco the per cent will be marked down Tor industries that are capilal Intensive and highly technical. and will therefore not require balance of payments-surplus, as will happen in 1980, is not socialist the solution to Britain's ills, as most likely this will drive up the value of the pound and exports even Lahour's policy on North Sea oil indicated once again a refusal to brenk with the rules of the game of interpational capitalism, thus ensuring that persistent the crisis continues. The only expanded and hundreds of young apprentices taken on) way out of this impasse in a by reorientation of the British economy towards international planning of production and irade based on the international workers movement. Rs Ernest Maodel has put Control over natural resouro in the form of nationalisation workers control essential for breaking out of this unpasse.
Older workers are being sacked so that soung
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Paper on what to do with the oil revenue has once more held up the prospect of vast riches just waiting to Blowout, an organisation set up in Aberdeen to fight for unionisation on the oil rigs, examines the attitude of the Labour Party and Government on North Sea