HC Deb 26 March 1956 vol 550 cc1753-4
22. Mr. Callaghan

asked the Minister of Fuel and Power if he will give an assurance that the recent cuts made by the Government in the new generating programme of the Central Electricity Authority will not lead to load-shedding in due course.

Mr. Aubrey Jones

The Central Electricity Authority's estimates show that load-shedding at times of peak demand in particularly severe winter weather must be reckoned with for some years yet; and the recent cuts do not seriously affect the position.

Mr. Callaghan

If a cut of £9 million is made in the generating programme, how can the Minister say that it will not affect the position? Will not this penny wise pound foolish policy hamper the expansion of our industrial base?

Mr. Jones

The effect of any cuts must be seen in relation to the total gap, in relation to which the effect is, I repeat, small. For the rest, I would once again adjure the hon. Member to have regard not only to investment, but to investment in relation to savings. That is the crucial problem.

Mr. Callaghan

Does the Minister not think that it is his job to fight for the industry and to get rid of some of the unnecessary expenditure that is going on, and not to cut down industrial necessities?

Mr. Jones

I consider that the electricity industry, in common with other industries, would have been most adversely affected had the gap between savings and investment led at an early date to an even more severe balance of payments crisis.