HC Deb 06 February 1968 vol 758 cc204-6
6 and 7. Mr. J. H. Osborn

asked the Minister of Power (1) what consideration he has given to setting up an advanced gas-cooled nuclear reactor, or a modern thermal power station close to the steelworks of Sheffield with a view to supplying electricity at below average prices on the same basis as electricity offered to aluminium and ferro-alloy smelters;

(2) whether he will give a general direction to the Central Electricity Generating Board to supply electricity to aluminium and ferro-alloy industries at special prices below the average prices charged to industrial consumers.

21 and 22. Mr. Webster

asked the Minister of Power (1) what directions he has given to the Central Electricity Board regarding the supply of electric power to potential aluminium and ferroalloy smelters at special prices, and on what basis of charging;

(2) what directions he has given to the Central Electricity Generating Board regarding the supply of aluminium and ferro-alloy smelting plants in development areas.

23. Mr. R. W. Elliott

asked the Minister of Power if he will give his approval to expenditure by the Central Electricity Generating Board on an advanced gas-cooled nuclear reactor or a modern thermal power station close to the chemical industry on the north-east coast with a view to supply electricity at below average prices on the same basis as has been offered to aluminium and ferro-alloy smelters.

Mr. Freeson

My right hon. Friend has given no general directions to the Central Electricity Generating Board on these matters, nor would it be appropriate for him to do so. He is, however, willing to authorise the Board to negotiate special contracts for long-term supplies to selected large-scale new consumers, subject to the conditions set out in the Government statement of 4th October, 1967.

Mr. J. H. Osborn

Is it not a fact that the cheapest coal is in the East Midlands and Yorkshire area and that the most modern electricity generating plant is there? Will the Minister take steps to see that these special terms are made available to the grey areas, particularly Yorkshire and South Yorkshire, so that they can benefit from the natural advantages that are there already?

Mr. Freeson

I think the hon. Member should refer back to the statement which set out this policy, and which I have already mentioned. The position is that specific projects have been submitted for consideration. They will be studied by the Department and a Government decision made on them. It is not a question of general directions being issued in the matter.

Mr. Webster

What is the period of amortisation in mind in the case of A.G.R. and what is the element of subsidy in the case of the aluminium smelter?

Mr. Freeson

I am afraid I do not understand the terms of the question. There is no A.G.R. in mind, so I cannot answer the question.

Mr. Patrick Jenkin

Why does the Minister confine this policy to new industries? What representations has he had, for instance, from the steel industry that it should be entitled to fuel at a low cost which represents the size of its demand?

Mr. Freeson

The general purpose of the policy is to establish additional consumption and to establish prices in relation to this consumption in different industries and projects above marginal costs. However, the policy statement of October last year, to which I have referred, does not preclude absolutely the possibility, in certain circumstances, of existing industries receiving consideration.