GAS (PRICE INCREASE). (Hansard, 21 November 1939)

§ 6. Mr. W. H. Green
asked the President of the Board of Trade whether he was 995 consulted prior to the decision of the gas companies operating in London to increase considerably the cost per therm of gas to domestic consumers; whether he is satisfied that these increases are justified; and, in view of the serious burden this increase will cause to many of the poorer sections of the community, does he propose to take any further action?

§ Mr. Stanley
Although no sanction by my Department is required preliminary to increasing gas prices in London, the Board of Trade were informed of the intention to increase prices shortly before the published announcement was made. I have no reason to believe that the increases are not justified.

§ Mr. Green
Is the Minister aware that the gas companies have not given the proper legal notice to the consumers before putting the increase into operation, and in his inquiries, has he satisfied himself that the increased prices obtained for the by-products of gas making have been taken into account?

§ Mr. Stanley
The first part of the Supplementary Question raises another point, and if the hon. Member will put a question on that on the Paper, I will look into it. As to the second part of the Supplementary Question, the House will appreciate that the greatest factor in the increase in prices is the fall in consumption, and there are well-recognised tables which show the increase in costs as the consumption decreases.

§ Mr. Green
Will the right hon. Gentleman answer the second part of the Supplementary Question, as to whether the increased prices obtained for the byproduct's have been taken into account in calculating the increase?

§ Mr. Stanley
Yes, Sir.

§ Mr. Shinwell
As this is a matter of increasing the cost of living spread over the community, has the right hon. Gentleman satisfied himself in his investigation that the increased charges are justified, and if it is a question of the interests of the shareholders and the interests of the community, ought not the interests of the community to come first?

§ Mr. Stanley
The position of the gas companies is regulated by Act of Parlia- 996 ment. Although I have no statutory obligation to inquire into this, I am quite satisfied that the increase is not only justified, but that it would have been possible to justify an even greater increase.