HC Deb 11 March 1958 vol 584 cc206-8
4. Sir D. Robertson

asked the Secretary of State for Scotland, in view of the fact that the capital expenditure on the generation of electricity by the North of Scotland Hydro-Electric Board has exceeded by millions of pounds the amounts approved by Parliament, if he will take immediate steps to withdraw his sanction for new schemes and to halt schemes in course of construction unless they are nearing completion.

Mr. N. Macpherson

The reasons why the completed costs of the Board's schemes have in the past exceeded the estimates given to Parliament when the schemes were approved have been most carefully examined but these increases do not, in my right hon. Friend's view, justify taking the action suggested by my hon. Friend. Clearly, my right hon. Friend must consider new schemes on their merits and once a scheme has become operative the Board has a statutory duty to proceed with it.

Sir D. Robertson

Is the Secretary of State aware that the twelve schemes completed were approved by Parliament at a cost of £21 million, but that they cost £44 million? Is he also aware that the eleven schemes now in progress were estimated to cost £60 million, that they are still uncompleted, and that the estimated completion cost is £98 million? In the interests of the Board, as well as of the people of Scotland, is not it desirable that the Board should stop and rest awhile consolidating?

Mr. Macpherson

I do not think that the second part of the supplementary question follows from what my hon. Friend said. The Select Committee on Nationalised Industries pointed out that constructional works take a long time to complete. Undoubtedly in the early stages the Board had less experience of these matters than it has now, but the mere fact that the estimates have been exceeded in the past is not a reason for not going on with schemes at present.

Mr. Woodburn

Is the hon. Gentleman aware that a great deal of this is not the responsibility of the North of Scotland Hydro-Electric Board but is due to changes in prices? Further, is he aware that the greatly increased cost of interest is landing the Hydro-Electric Board in much greater capital expenditure?

Mr. Macpherson

Yes, Sir, I am aware of both those things.

Sir D. Robertson

Is not it the case that the Secretary of State for Scotland is responsible to Parliament for the Hydro-Electric Board, and not the Select Committee on Nationalised Industries?

Mr. Macpherson

Yes, Sir, but the Select Committee on Nationalised Industries recommended that these figures should be given to the House of Commons. It gave the figures in its Report and my right hon. Friend has made arrangements to lay a statement in the Library showing the estimates and the ultimate out-turn.

10. Sir D. Robertson

asked the Secretary of State for Scotland if he has noted that the balance sheet and accounts of the North of Scotland Hydro-Electric Board for 1957 record a small profit in spite of increased purchases of electricity, much less than a full year's benefits from increased charges for electricity, £2,292,118 charged against revenue for redemption of capital, £798,677 for capital depreciation and £4,929,706 for interest on borrowing; and if he will now therefore withdraw the request to the Board to reduce capital expenditure on distribution to which reference was made in the House by his predecessor on 10th July, 1956.

Mr. N. Macpherson

The present restrictions on the Board's total capital expenditure do not specify separate amounts for expenditure on distribution. They were fixed in relation to the total amount of capital investment that the country can afford and my right hon. Friend sees no reason to withdraw them.

Sir D. Robertson

Is not it amazing that the country can afford excess expenditure of £60 million and £70 million on generation while my constituents and others in the Highlands are unable to get that to which they are entitled under an Act passed by this House—electricity connections—and that the Board should be able to take advantage of a request made under the credit squeeze policy to avoid expensive connections?

Mr. Macpherson

My hon. Friend will be glad to hear that the Board intends to spend rather more in the current year than it did in the past year.

Mr. John MacLeod

Can my hon. Friend ask the Board to arrange some programme when various people will be likely to get electricity connection in the more remote areas, as at present it appears that many of them will have to wait for many years?

Mr. Macpherson

No doubt the Board will take note of what my hon. Friend has said.