HC Deb 30 April 1951 vol 487 cc851-4
Mr. P. Noel-Baker

I will now make a statement in reply to the important matter which is dealt with in Question No. 42. The answer is as follows:

With respect, I think the hon. Member for Kidderminster (Mr. Nabarro) is under a misapprehension. There are no impediments or restrictions upon the installation of independent electrical generating plant; any industrialist or farmer is free, if he so desires, to install his own supply, and many have done so. But some firms, which have made contracts to take their electricity from the public supply, desire also to install standby generating plant, as a safeguard against interruptions of supply. Many of the former contracts which were taken over by the B.E.A. prevented the use of this plant except during actual interruptions, since the provision of an electricity supply that is only partly or occasionally used is relatively uneconomic from the standpoint of the undertaking which provides it.

In pursuance of Government policy, however, the electricity supply industry agreed in 1947 to waive such conditions in their contracts, and they also reduced some of the charges which were due under their contracts.

In 1948, the British Electricity Authority and the area boards reviewed the matter, in consultation with the Federation of British Industries. As a result, the Authority and the boards decided to continue these concessions until 31st March, 1952. They have recently decided to continue them still further until 31st March, 1956. I hope that, in view of these concessions, industrial undertakings which have installed such standby plant may be willing to use it next winter, not only when power cuts occur or are expected, but regularly throughout the winter months.

Some industrial undertakings, by using waste steam for generating electricity, can achieve a higher overall fuel efficiency than the public electricity supply. His Majesty's Government are most anxious that any firm which can thus use waste steam for generating power should do so, if the savings it makes in fuel are enough to meet the cost. If a firm, by installing such plant, can produce more power than it needs for its own work, the British Electricity Authority are prepared to buy the surplus for the grid. I hope that these arrangements may help in some degree to solve the problem of peak demand during the winter months.

Mr. Nabarro

Does the right hon. Gentleman realise that the specific restriction to which I refer in my Question is the time limit: 31st March, 1956? Is he aware that that date is only five years hence and that in the recent Budget proposals the initial Income Tax allowances for new plant installed have been withdrawn, which completely alters the whole position? Would the Minister undertake, in all these circumstances, to review this complicated matter once again with the British Electricity Authority with the purpose of completely removing the time limit, and thus inducing all industrialists to instal this standby plant?

Mr. Noel-Baker

I could not undertake to suggest removing the time limit altogether. When, in January, it was moved to 1956, it seemed to be a reasonably generous arrangement, but I have since discussed it with the B.E.A. and I am glad to tell the hon. Member that they are now about to have talks with a delegation of the Federation of British Industries on whether they can extend the concession further.

Mr. C. I. Orr-Ewing

Can the Minister deal with the second part of the Question, about initial allowances? Is not this running absolutely contrary to the stated policy of the Government, to which he has just referred?

Mr. Noel-Baker

That is a matter of Budget policy, on which I cannot answer. As the hon. Member knows, the allowances run for the rest of this year.

Sir H. Williams

May I ask the Minister whether the Minister of Works will instal a standby plant in this building, as it was without electricity this morning?

Mr. Noel-Baker

I am inquiring into the causes of the cut which occurred this morning.

Mr. Fisher

Has the export of this generating equipment, particularly to Soviet Russia, now ceased?

Mr. Noel-Baker

I do not think that any is being exported to Soviet Russia, but I should want notice of that question. Some is, of course, being exported; it is a most valuable form of exports and and helps our balance of trade results.

Sir I. Fraser

In view of the very important change of policy which the Minister has announced, can he give as long-term an assurance as any Government could give that where industrialists put down their own electricity plants, they can be sure of at least an equal right to fuel in emergencies as the public systems?

Mr. Noel-Baker

I think that most of the standby plants would either be run by waste steam, in which case no extra fuel is needed, or else by oil, which does not compete with national power stations.

Sir I. Fraser

Would they have an assurance at least of that?

Mr. Noel-Baker

Nobody can give an assurance about supplies of oil. Oil is provided by private companies, which operate all over the world, and the companies must make the best arrangements they can.

Mr. Nabarro

In view of the technical and complicated nature of this problem, would the Minister make specific reference to it in the speech which he will make shortly on the accounts of the British Electricity Authority? The matter is of the widest interest to every industrial undertaking.

Mr. Noel-Baker

When I come to consider that speech, I will consider what the hon. Member says.