28. Mr. De la Bèreasked the Minister of Transport whether he can now make some statement regarding the introduction of the Electricity Distribution Bill?
§ Captain WallaceI cannot add to what has already been said regarding the introduction of this legislation, but I can assure my hon. Friend that the reorganisation of electricity distribution is regarded as a matter of major importance with which it is intended to deal as soon as circumstances permit.
Mr. De la BèreIs my right hon. and gallant Friend aware that in July, 1937, there was a public inquiry in Evesham because the rural areas were inadequately supplied with electricity by the Shropshire, Worcestershire and Staffordshire Electricity Supply Company? Just as we have a national telephone system, could we not have a uniform rate and a uniform supply of electricity throughout the country? The present position is an absolute scandal.
§ Captain WallaceMy hon. Friend will be aware that the Prime Minister answered this question on 1st March.
Mr. De la BèreIs my right hon. and gallant Friend aware that although the rural areas stand in need of urgent electricity nothing is done, owing to the persistent obstruction of these vested interests?
§ 30. Mr. T. Johnstonasked the Minister of Transport whether he is aware that the Grampian Electricity Supply Company has a statutory monopoly for the supply of electricity to the rural and agricultural areas in Western Stirlingshire; that the company has recently refused to carry its supplies into an area on the ground that guarantees have not been forthcoming for demands sufficient to meet an undefined percentage return upon its estimated capital expenditure; what is the percentage required; and what steps he is taking to see that the area in question is supplied with electricity at a reasonable rate?
§ Captain WallaceI assume the right hon. Gentleman is referring to an extension of the Grampian Company's mains to Fintry and Newtown. I am informed that the eventual maximum gross revenue on an immediate expenditure of £2,800 is at present estimated at only £195, but that the company would be prepared to proceed if they were assured of a gross revenue of £350.
§ Mr. JohnstonIs the Minister aware that under the Act of 1922, under which this concern operates, they may require a prospective profit of 25 per cent. upon their capital outlay before they will take electricity into a rural area; and does he think that that is encouraging electrical development in this country?
§ Captain WallaceSurely it is a gross revenue of 25 per cent?
§ Mr. JohnstonIs not the right hon. and gallant Gentleman aware that the Act gives this concern power to demand that profit, and that the canvass has been grossly insufficient to enable the concern to discover the number of prospective consumers?
§ Captain WallaceThis is a difficult question to discuss across the Table. I have given the right hon. Gentleman in- 1860 formation on the subject and I shall be glad to see him again.
§ Mr. EdeIs not 12½ per cent. gross revenue on the capital outlay a very high percentage for this company to demand? Do the Electricity Commissioners not exercise pressure on other bodies to give a supply when a far lower gross revenue than that is guaranteed?