My Lords, I am extremely grateful to my noble friend for his intervention and contribution, because he lays out very clearly our position. In responding again to the concerns of the noble Lord, Lord Davies, we are committed to ensuring that the regulator is as strong, competent and influential as a regulator should be. However, it is important to ensure that the powers are practical and effective and do not create unintended consequences, as I stated earlier.
It is also important that we do not undermine investment in the UKCS at such an important time. As part of the call for evidence we will engage with interested parties to discuss how the strategy for maximising economic recovery should apply to commercial arrangements. The noble Lord, Lord Davies, asked if Sir Ian Wood was content with our amendments; the understanding is that he is content, but he also
understands very clearly that we must not be undermining investment at this time. It is not our intent that the OGA has the ability to directly interfere with new or existing commercial arrangements. We will ensure that the strategy deals with commercial arrangements in a sensible and proportionate way.
We have listened very carefully to all concerns from industry and other stakeholders but, as my noble friend Lord Jenkin has rightly said, this is a tripartite understanding of investment within the UKCS, and therefore I hope that the noble Lord, Lord Davies, is content with my descriptions of why the amendments are important.