Speeches, etc.

Margaret Thatcher

Speech in Montrose (quay-naming ceremony)

Document type: Speeches, interviews, etc.
Venue: Montrose, Angus
Source: Thatcher Archive: speaking text
Editorial comments: MT spoke at lunch after the ceremony.
Importance ranking: Minor
Word count: 738
Themes: Agriculture, Industry, Privatized & state industries, Energy

This has been a notable venture involving a major British company (P & O) and a public board.

But its real significance is the way in which the people of Montrose have taken part in its development.

Montrose's motto is “Mare Ditat, Rosa Decorat” —(The sea enriches, the rose adorns)—and as a seaport Montrose is well known for its proud record and its past achievements in the wine trade, tobacco, timber, potatoes. [end p1]

But Montrose has moved to meet the changing times.

It has seized the new opportunities offered by the discovery of offshore oil.

The seaport's facilities have been turned to modern uses.

I would like to pay tribute to some of those involved in making this possible, particularly to Mr. Jack Smith, Mr. Sandy Jessop and Captain Graham of the Board, to P &amp O and the Companies, to the contractors, to the local authority staffs and to the civil servants. [end p2]

It is important that the Government now plays its part by ploughing back into the community some of the revenues expected from offshore oil.

There must be a drive to invest in houses, roads and schools—what politicians addicted to jargon would cal “improving the social infrastructure” .

Even though oil is a wonderful new source of wealth for us, it will not last indefinitely.

For a community to have lasting prosperity, it should have a variety of commerce and industry. [end p3]

Particularly as these are difficult times for Britain's offshore oil industry.

Almost daily we read reports of orders delayed, programmes postponed, drilling plans reviewed.

No industry has been worse hit by soaring costs. [end p4]

In addition to grappling with a rising level of inflation, oilmen have been forced to realise that earlier estimates of drilling costs, provision of platforms and pipelines, and of installing the complex and sophisticated equipment needed to bring the oil ashore, were too low.

Britain's northern waters have proved very hostile indeed. [end p5]

But the difficulties are not only economic.

Political worries have also undermined confidence, and this should never have happened.

Everyone recognises that valuable natural resources like oil and gas should make their full contribution to the national economy.

And everyone agrees that it is right for the Government to establish proper policies covering the rate of depletion of reserves and the routeing and size of pipelines. [end p6]

Provided the Exchequer can secure a due share of the profits through royalties and taxes; provided the Government can exercise proper control over the licensees' activities by regulations, there seems to us to be no benefit in State ownership.

In fact, it might only lead to bureaucracy and delay.

Unfortunately, others see it differently. [end p7]

As I see it, Britain is one of the few countries in the world to have both substantial oil resources and a major stake in the international oil industry. [end p8]

The Middle East states have oil but no oil industries of their own.

The same goes for Norway, Mexico, Indonesia and many other states.

On the other hand, France, Germany and Denmark have well-established oil companies—but as yet no oil.

Both those groups may have sound reasons for setting up state oil companies—but they are not reasons which apply to Britain. [end p9]

We have Shell. We have BP (in which the Government has a substantial stake).

We have a good number of smaller oil companies showing magnificent enterprise and skill in the offshore business.

We have a substantial supply and service industry. A growing number of firms able to manufacture the specialised equipment needed for the industry. [end p10]

We have a major public utility—the British Gas Corporation—already well established offshore.

We just do not need a brand new state oil company.

Indeed, I fear that it could discourage private investment and, with Mr. Wilson 's balance of payments and budget deficits, this is something we cannot afford. [end p11]

Montrose is fortunate that the two major employers in the town, Cadbury Schweppes and Glaxo Laboratories, are also expanding.

It is important that the traditional industries of the area, farming and fishing, and the associated industry of food processing, retain their prosperity. [end p12]

Life has given this area an opportunity to keep the best of the old and to advance with the new.

It is just that combination of continuity, challenge and change which offers the most satisfaction and the greatest achievement.