HC Deb 10 November 1969 vol 791 cc16-7
17. Mr. Frank Allaun

asked the Minister of Technology if, in view of the profits of the State electricity and gas boards, he will give a general direction to the boards to provide for a reduction of power prices for domestic rather than for industrial consumers.

Mr. Alan Williams

No, Sir. The boards relate their prices to the associated costs, and it would not be in the national interest to deprive industrial consumers of price reductions warranted by the reduced costs of supplying them.

Mr. Allaun

Although it is a triumph for public ownership to produce lower charges alongside higher profits and higher wages, is not my hon. Friend aware of the resentment among Labour supporters that some State boards seem to be much more generous to commercial companies than to the ordinary consumer?

Mr. Williams

My hon. Friend will appreciate that in the long-term development of the power industries it is essential that we should have clear criteria where the appropriate investment should lie, and for this reason there has to be a clear relationship between the pricing of products in different parts of the market.

Mr. Edward M. Taylor

Does the Minister think that we might now be able to make a move towards removing the ridiculous situation whereby consumers in Scotland pay about 26 per cent. more for their gas supplies than the average consumers in England and Wales?

Mr. Williams

What will be the exact impact on Scotland of the introduction of natural gas which, I believe, is due to come next year, I cannot as yet prophesy. All I can say is that, where it has been introduced, natural gas has been accompanied by reductions in tariffs.

Mr. Lubbock

Is the hon. Gentleman aware that in the long term it is to the benefit of both domestic and industrial consumers for the C.E.G.B. and other generating boards in the United Kingdom to give power at special prices to large industrial consumers and energy-intensive industries—and to the aluminium smelters, which I welcome—and that there is scope for very much more of this kind of activity?

Mr. Williams

There is truth in what the hon. Gentleman says. The encouragement of bulk consumers gives a wider base for spreading overheads and can in the long term have repressive effects on price trends.

Mr. Atkinson

Does not my hon. Friend agree that one primary function of nationalised industries is the redistribution of wealth, and that therefore the decision to give preference to industrial users is a contradiction of a primary function of the public sector?

Mr. Williams

There may be a certain clash of interpretation of what is the primary function, but the one given by my hon. Friend is certainly not what I would envisage as the primary function of nationalised industry. [HON. MEMBERS: "Oh."] I am sorry, but my hon. Friend asked the question, and I am giving him the answer. I think that this is mainly a role to be played by the Chancellor of the Exchequer and the Department of Health and Social Security.

Mr. Hannan

Is my hon. Friend aware that the charge for electricity to domestic consumers in Scotland is less than the charge of all other area boards and that this is very much appreciated in Scotland?

Mr. Williams

I am grateful for some supporting information.