§ 12. Mr. Thomas Coxasked the Secretary of State for Trade and Industry whether he will review the financial target of the Central Electricity Generating Board.
§ Sir J. EdenThe C.E.G.B. cannot be considered in isolation and it is too early to say what may need to be done about the electricity industry's financial objectives.
§ Mr. CoxIn view of the importance of the wage negotiation now taking place in the industry, will the hon. Gentleman give an assurance that the claim which is being made will be judged on its merits, and that the negotiation will not be subjected to Government interference as the last one was?
§ Sir J. EdenI am sure that the electricity industry, in the negotiations it is about to undertake, will take account of the views expressed by the hon. Gentleman.
§ Mr. EmeryWill my hon. Friend make it clear to the House that the financial target and the return on capital which the Government set for nationalised industries will be maintained and not pushed to one side for any purpose, however justified it may be?
§ Sir J. EdenWe have to take account of the fact that the C.E.G.B. bulk supply tariff is subject to guidelines on price restraint.
§ Mr. David StoddartAre not these targets somewhat phoney, in that they are often levied on assets which have been written off a long time ago? Is not the electricity industry worse off than, for 1213 example, the gas industry, and is this not having an adverse effect not only on the wages paid in the electricity industry but on the charges made to the consumer? Will the Minister urgently consider this?
§ Sir J. EdenAs I think the hon. Gentleman knows, the 7 per cent. objective was set by the previous Administration for the electricity supply industry as a whole. This is an objective of a return of 7 per cent. after depreciation on average net assets during the five-year period ending March, 1974.