HC Deb 01 December 1919 vol 122 cc6-8
11. Mr. ALFRED SHORT

asked the President of the Board of Trade whether the reduction in the price of domestic coal will carry with it a reduction in the price of domestic gas; whether he is aware that when the price of coal was increased by 6s. per ton consumers were charged an extra price for gas for a period of several weeks prior to the date upon which the increased price of coal was imposed; and whether arrangements will be made whereby consumers of gas will derive the benefit of the reduced price of coal at the next meter readings in order to counterbalance the burden imposed prior to the 21st July?

Sir A. GEDDES

I hope that the reduction in the price of domestic coal will result in a reduction in the price of gas supplied by all gas undertakings for domestic use; but there are, of course, other factors, such as the cost of labour and materials, which affect the price of gas. A number of gas undertakings have recently been contemplating a further increase in price owing to increased toss of manufacture, and in some of these cases it may not be possible to reduce the present price by an amount corresponding to the reduction in the cost of coal. So far as I am aware, the increase in the price of gas consequent upon the addition of 6s. to the price of coal was not generally made until the beginning of the following quarter, and I cannot hold out any hope of a general reduction in price before the next quarterly meter readings.

Mr. HARTSHORN

Is the coal that is to be used for the production of gas included in the 36,500,000 tons of coal to be effected by the 10s. reduction?

Sir A. GEDDES

I am not quite sure about that figure of 36,500,000, which was not in my mind at the moment; but the coal which is used for making gas and electricity to be consumed in domestic household uses is included in the coal to be affected by the 10s. reduction.

Mr. J. JONES

Does the right hon. Gentleman take into consideration the profits arising from the by-products in the manufacture of gas in connection with the fixing of prices?

Sir A. GEDDES

Oh, yes, that is always taken into consideration in connection with the price of gas.

17. Mr. ROWLANDS

asked the President of the Board of Trade whether the Board have authorised the increase of the price of gas supplied by the South Suburban Gas Company by 1s. 2d. per 1,000 ft.; is he aware that this will raise the price to slot consumers in the Erith district from 5s. 11d. per 1,000 ft. to 7s. 1d. per 1,000 ft.; and will he inquire whether there is any justification for this large increase to the unfortunate slot consumers?

Sir A. GEDDES

The answer to the first and second parts of this question is in the affirmative. As regards the last part, the Board of Trade gave careful consideration to all the circumstances at the time the increased price was authorised, and came to the conclusion that the increase was justified. I may add that, in view of the reduction in the price of coal recently announced, steps will be taken to revise of revoke the Order under which the increase was granted.

Mr. ROWLANDS

Do I understand from the right hon. Gentleman's statement that there will be an immediate reduction of price?

Sir A. GEDDES

I cannot say that there will be an immediate reduction. That depends upon the increase in the price of gas which followed the last increase in the price of coal. What I said was that now that there was a reduction in the price of coal the revision or revocation of the Order will be considered.

Mr. ROWLANDS

Will that be done without any delay?

Sir A. GEDDES

There will be no delay that can possibly be avoided.