HC Deb 30 November 1970 vol 807 cc890-1
33. Sir J. Langford-Holt

asked the Secretary of State for Trade and Industry if he will make a statement on his policy towards the contracting activities of electricity boards, in view of the unfair competition which this trading represents with ordinary electrical contractors; and what action he proposes to take.

74. Mr. David Stoddart

asked the Secretary of State for Trade and Industry if he will now give an assurance that he has no plans to dispose of the retailing and contracting activities of electricity and gas boards.

Sir J. Eden

I am considering the present range of the boards' activities, including the treatment of retailing and contracting in their accounts.

Sir J. Langford-Holt

Will my hon. Friend bear in mind that, as well as being suppliers of electricity, the electricity boards are able to pass on to their contracting departments many advantages that are not available to small contracting firms trying to compete with them?

Sir J. Eden

That is one of the aspects that I am examining at present.

Mr. Stoddart

Is the hon. Gentleman aware that that reply and the reply given by him recently to his hon. Friend the Member for Cambridge (Mr. Lane) are causing a great deal of disquiet in the electricity supply and gas industry? Is he also aware that the retailing and contracting activities of these organisations contribute a great deal towards alleviating overhead expenses and also towards keeping the cost of these fuels at a reasonably low level? Will he make up his mind pretty soon?

Sir J. Eden

I am aware of the points that the hon. Member has made about the wish of the industry to know the position as soon as possible, but I want to be certain that I arrive at the right decision and do not take a rushed one.

Mr. Emery

Does my hon. Friend realise that certain of the contracting activities carried on by electricity boards are settled by the C.E.G.B. at the time of letting and purchase of contracts? Does he not, therefore, think that it is unfortunate that the C.E.G.B. should have decided to break up its central purchasing department and spread it in eight sections?

Sir J. Eden

The question of the way in which the department is organised is a matter for the board. I am looking at these matters in the first instance to ensure that proper information is given through the published accounts.

Mr. Michael Foot

Will the hon. Gentleman give the same undertaking about the electricity industry as that given by the Secretary of State for Trade and Industry about the steel industry; namely, that before making any proposals for the alteration of the structure of the industry he will have consultations with the representatives of the workers in it?

Sir J. Eden

Yes, certainly. I have already had the pleasure of meeting them once, and I gave them that undertaking.