HC Deb 12 December 1967 vol 756 cc184-6
10. Mr. G. Campbell

asked the Minister of Power what is his estimate of the increase in costs to the Scottish Gas Board of devaluation and the accompanying measures.

11. Mrs. Reníe Short

asked the Minister of Power what effect the Government's decision to devalue will have on development in the West Midlands Gas Board area; and what estimate he has made of the effect on prices to be charged to consumers.

16. Mr. Lane

asked the Minister of Power by what further percentage he expects gas prices to rise as a result of devaluation.

Mr. Freeson

Gas prices are at present being considered by the National Board for Prices and Incomes, which will no doubt take into account the effects of devaluation on the Boards' costs, along with all other factors. I do not expect devaluation to have any significant effect on the course of development in the West Midlands Gas Board area.

Mr. Campbell

Is the hon. Gentleman aware that the price of gas in Scotland is already too high compared with the average in the rest of the country? Will he examine ways of ensuring that it is not increased?

Mr. Freeson

The hon. Gentleman will be aware that this question is now with the N.B.P.I. and that we must await its report.

Mrs. Short

Is my hon. Friend aware that, the day after devaluation was announced, a spokesman of the West Midlands Gas Board said that prices would probably go up and development would have to be cut back, and that, during October, the increase in the cost of living was largely due to the increase in coal and electricity prices? Does he not think that he is putting the wrong burdens on the wrong people for the wrong reasons?

Mr. Freeson

I am not sure what the point was of the last part of that Question. The rest of it was a statement, of which one takes notice. This matter is now with the Prices and Incomes Board and we must await its report before reaching a decision.

Mr. Peyton

What on earth does the hon. Gentleman think the Prices and Incomes Board knows about this matter? Why not deal with it in his own Department rather than put upon the very doubtful Olympian judgment of the Prices and Incomes Board responsibilities for things about which it knows nothing?

Mr. Freeson

I take note of the jovial remarks of the hon. Gentleman about the work, the nature and the quality of the National Board for Prices and Incomes.

28. Mr. Dempsey

asked the Minister of Power if he has now made a study of the report of the National Board for Prices and Incomes regarding high gas prices in Scotland; and if he will make a statement.

Mr. Freeson

The question of gas prices in Scotland, as elsewhere was referred to the National Board for Prices and Incomes on 3rd October. The Board has not yet reported.

Mr. Dempsey

Is my hon. Friend aware that this indefinite delay could have been avoided by using a common denominator which would indicate that prices are higher in Scotland? Is he aware that consumers are now handing back gas heating appliances because of high cost? Will he do his utmost to speed up this investigation?

Mr. Freeson

I think it was right that all the price proposals should have been referred to the Board and that no exceptions should be made. On the second point my hon. Friend is under a misapprehension. My last information was that there was a considerable expansion in gas domestic heating going on in Scotland today.

Mr. Edward M. Taylor

Is the Parliamentary Secretary not aware that he should stop hiding behind the Prices and Incomes Board and the Minister should accept the decision as his? Does he know that the price of gas in Scotland is already 24 per cent, above the national average and that a general increase is not justified?

Mr. Freeson

Hon. Members cannot have it both ways. There have been queries about not having the electricity prices referred to the N.B.P.I. and now we are criticised for having gas price increases referred to the Board.