§ 14. Mr. Boyd-Carpenterasked the Minister of Fuel and Power whether, in order to implement his undertaking to the consumers of gas that they would secure cheaper gas from a nationalised gas industry, he will make a statement as to the directions of a general character he proposes to issue to the Gas Council and area boards to stop further increases in the price of gas.
§ Mr. GaitskellThe responsibility under the Gas Act for fixing gas prices rests with the area boards, who have a statutory obligation to cover their costs, taking one year with another. I do not, therefore, intend to issue any general directions on this matter.
§ Mr. Boyd-CarpenterDoes that answer mean that the right hon. Gentleman does not intend to implement the undertaking he gave on moving the Second Reading of the Gas Bill on 10th February, 1948?
§ Mr. GaitskellWhat I said on that occasion—and I have the words in front of me—was:
We are all agreed that we need larger areas and greater integration, and this greater integration will achieve benefits for the consumer, because it will enable gas and the other products to be produced more efficiently"—and the hon. Member then interrupted me and said "And more cheaply?" replied:Yes Sir. It is the same thing. I understood that hon. Members opposite agreed that these larger areas were desirable."—[OFFICIAL REPORT, 10th February, 1948; Vol. 447, c. 224.]It is perfectly plain from that extract that what I said was that it would be cheaper under nationalisation than it would be under private enterprise, and I still hold that to be the ease.
§ Colonel Crosthwaite-EyreIf the Minister makes that statement, how can 10 he reconcile the assertion that it would be cheaper under nationalisation with the fact that it has gone up in price since?
§ Mr. GaitskellI should have thought it was perfectly obvious, even to the hon. and gallant Gentleman, that when the area boards put up the price of gas almost immediately after vesting date, it must have been because of the increased costs incurred before vesting date.
§ Mr. Ernest DaviesWould not the Minister agree that in a very large number of cases the gas companies had refrained from raising their prices, in spite of increased costs, because of the pending nationalisation?
§ Mr. GaitskellThat is perfectly true.
§ Mr. Boyd-CarpenterCan the right hon. Gentleman reconcile his supplementary answers with any assertion that he was frank with this House when, on 10th February, 1948, he told the House that nationalisation would mean cheaper production.
§ Mr. GaitskellI have already answered that question.