Oil folly
Sir: I regret to see your note (September 21) that the views of Mr Stephen Probyn, making the case against nationalisation of North Sea oil, are not those of The Spectator. They ought to be.
As he points out, "nationalisation is not only not the best means of garllering revenue, it is the worst: it is appallingly expensive" — And how! The White Paper says: "The State contributes its share of the cost including past costs" when it takes over 51 per cent of the operating companies, The cost to the State could be as high as £4,000 million. As I pointed out last week we are already committed on our overseas borrowing to potential interest charges of about $800 million a year. A North Sea oil extravanganza could add another $900 million. With a current deficit on our balance of payments this year of over £4,000 million, this is just "not on". Any sane Chancellor would look forward to the operating oil companies pouring in capital _ up to C5,000 million perhaps — to the benefit of our balance of payments. Nicholas Davenport London EC2
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