§ 11. Mr. Biffenasked the Minister of Power by what amount he estimates power generation and distribution costs during 1968–69 and 1969–70 are likely to 1257 be revised on account of the development of North Sea gas; and if he will make a statement.
§ Mr. MarshNo decision to use natural gas in power stations has been taken. The possibilities are being studied by the industries concerned in consultation with my Department.
§ Mr. BiffenNevertheless, is the right hon. Gentleman not aware that there is a great deal of speculation that the Chancellor's hope that he can reduce the levels of public expenditure turns in part upon the relative costs of power distribution which might arise from the exploitation of North Sea gas? Can he, therefore, give an indication to the House when he expects to be able to answer a Question of the character which I have put down?
§ Mr. MarshI would hope to do so primarily as part of the Fuel Policy Review. The scope for using gas in power stations depends very much on two factors of which we are not yet aware. One is the price, and the other is the amount available.
16. Mr. Edward M. Taylorasked the Minister of Power if he will make a statement on the progress made in the talks between the oil companies and the Gas Council about the price at which North Sea gas will be made available to the gas boards.
§ 33. Mr. Hector Hughesasked the Minister of Power if he will state the details and aspects of the negotiations now proceeding, under his authority, between the Gas Council and the producers of gas in the North Sea; when these negotiations will be complete; and what steps he is taking to ensure that British consumers of gas can get supplies at moderate prices and at what prices.
§ Mr. MarshI would refer to the reply which I gave to my hon. Friend the Member for Hampstead (Mr. Whitaker) on 21st April.—[Vol. 745. col. 187.]
Mr. TaylorAs the right hon. Gentleman's own figure for the price of gas in Scotland is more than 20 per cent. above the average for the rest of the country, can he give a categorical assurance that North Sea gas will be made available to the Scottish Gas Board at the same price as to the rest of the country?
§ Mr. MarshAs I explained to the hon. Gentleman before, I am not in a position 1258 to say what will be the terms for the supply of natural gas to the gas boards, because we have not fixed the price for it.
§ 25. Mr. James Johnsonasked the Minister of Power what progress he has made with the piping of natural gas from the North Sea fields to Yorkshire and Humberside.
§ Mr. MarshFirst supplies of North Sea gas are already reaching the gas plant at Killingholme on Humberside. Additional quantities are planned to reach the methane line south of Sheffield this summer when further work on the undersea and land pipelines is completed.
§ Mr. JohnsonIs my right hon. Friend aware that civic leaders and industrialists on Humberside will feel happier with his Answer, since there is a feeling in Hull that they are often neglected by Government Departments? Will he give the House an assurance that he will put his best foot forward to get supplies ashore as quickly as possible?
§ Mr. MarshMy intention is to put both best feet forward as quickly as possible to get the maximum benefit from this find.
§ Mr. WhitakerOn the future price of North Sea gas, have the oil companies now disclosed their figures to my right hon. Friend? Would he confirm what public opinion feels and defend those economic experts who maintain that 2¼d. is a generous profit for the companies?
§ Mr. MarshI do not know what figures my hon. Friend has, but we have access to all the figures we need in this exercise. When the decision is taken, it will be on the basis of that information.