19. Mr. Edward M. Taylorasked the Secretary of State for Economic Affairs what estimate he has made of the effect of differential pricing policies by nationalised industries on regional development.
§ Mr. Frederick LeeNo detailed estimates have been made.
Mr. TaylorIs the Minister aware that in Scotland the price of gas is 27 per cent. above the average for England and Wales and the price of coal is more than £1 a ton higher, which differentials can seriously affect our steel expansion plans? If his Ministry does not exist to look into a problem of that kind, what is it supposed to do?
§ Mr. LeeI understand the hon. Gentleman's indignation, but it is precisely the same pricing policy as his Government pursued. To answer his specific question, in the Lancashire coalfield I am paying much more for my coal than he is, and in parts of the Durham coalfield 601 and the Welsh coalfield people are paying more, too. Once one begins cross-subsidisation of nationalised industry in the way the hon. Gentleman suggests, there is no economic sense left in it.
§ W. BaxterIs not my right hon. Friend aware that this puts Scotland in the most unenviable competitive position? Irrespective of difficulties which he may see in having a uniform policy for the whole nation, will he look into the matter and see that some semblance of equity prevails?
§ Mr. LeeI am sorry, but I do not agree with my hon. Friend. A great deal of research has gone into it, and I assert again that, if one begins the process of cross-subsidising, especially—
§ Sir G. NabarroWhat are you doing now?
§ Mr. LeeWhat we usually do. You did the same.
Once one begins cross-subsidisation in an industry like coal, one cannot get a proper economic basis upon which to proceed. There is no victimisation of Scotland whatever. As I have said, there are development areas which are coal-producing areas where the charge is far higher than it is in Scotland.