HC Deb 12 March 1968 vol 760 cc1159-61
Mr. G. Campbell

asked the Minister of Power what estimates he has made of the increase in costs to the steel industry of the present proposals in the Transport Bill.

Mr. Freeson

The British Steel Corporation expects its annual increase in costs to be rather less than £1 million on a total haulage bill of £76 million, and this may be reduced by the transfer of traffic from road to rail.

Mr. Campbell

Has the Minister investigated the effects of delays and loss of flexibility arising from the quantity licensing proposals, together with the two new taxes?

Mr. Freeson

I have no doubt that the British Steel Corporation is examining the implications of the Transport Bill on the industry.

Mr. Manuel

Is my right hon. Friend aware, in connection with quantity licensing, that if delay should occur, traffic will not be shifted from road to rail?

Mr. Freeson

These questions are better directed to my right hon. Friend the Minister of Transport. I stated in my original Answer the position as we understand it.

3. Mr. G. Campbell

asked the Minister of Power what estimate he has made of the total increase in costs of the electricity generating programme resulting from the Transport Bill.

20. Mr. Edward M. Taylor

asked the Minister of Power what estimate he has made of the extra annual cost to the generation and supply of electricity and to the construction of power stations as a result of the measures contained in the Transport Bill.

22. Mr. Brewis

asked the Minister of Power what detailed estimates he has made of the increased cost to the Central Electricity Generating Board of power stations at present under construction, or for which contracts have already been placed, and for which contracts are not on a fixed basis, as a result of the abnormal load charges in the Transport Bill.

46. Mr. Peter Mills

asked the Minister of Power what estimates he has made of the increase in costs of the electricity generating programme and supply of electricity resulting from effects of the Transport Bill on the south-west of England.

Mr. Freeson

Detailed estimates have not been made for individual stations under construction or for separate parts of the country. The C.E.G.B. estimates that the abnormal loads charge would add about £300,000 a year to construction costs and would increase its fuel transport charges by about £500,000 a year. The overall effect on the cost of electricity, including distribution, is unlikely to be more than 0.1 per cent.

Mr. Campbell

Has the Minister examined, in particular, not only the effects of the abnormal load tax on the building of power stations, but also its effect on the movement of heavy objects connected with the supply of electricity?

Mr. Freeson

These are matters which the industry must examine and take into account. I understand that the C.E.G.B. is in consultation with the Ministry of Transport on these issues, and I have stated the earliest possible assessment of the position that we are able to obtain.

Mr. Taylor

Does the hon. Gentleman accept that the extra costs involved will bear very hard on the Scottish electricity supply part of the industry because of the extra distances involved? Can he give an assurance that this will not result in a further acceleration of the differential price in Scotland?

Mr. Freeson

I do not accept that this will bear particularly hard on Scotland. These are questions for detailed examination by the industry; and we have had no evidence along the lines suggested by the hon. Gentleman.

Mr. Manuel

Is my hon. Friend aware that regarding the abnormal loads charge the Minister of Transport on Second Reading and also in Committee has given a pledge to ask her Department to examine the position very fully in order to make sure that there is no undue price increase to traffic going out of the development areas?

Mr. Freeson

Yes, we are aware of the undertakings given in Committee. As I have said, close consultation is going on, and this no doubt will continue until matters are clarified.

24. Earl of Dalkeith

asked the Minister of Power what detailed estimates he has made of the increased cost to the Gas Council of terminals, pipelines and other facilities for the transmission of North Sea gas already under construction, or for which contracts have already been placed, and for which contracts are not on a fixed basis, as a result of the abnormal load charges in the Transport Bill.

Mr. Freeson

I understand from the Gas Council that the increase in costs is expected to be negligible.

Earl of Dalkeith

Can the hon. Gentleman reconcile that with the forecast that costs in Scotland will rise considerably as a result of the Transport Bill? Will he stick to his pledge that Scotland will not be charged more for North Sea gas than England?

Mr. Freeson

I am not sure what the latter part of that supplementary question has to do with the first. The Gas Council has given its advice and I have said that the increased costs arising from the Transport Bill will be negligible.