Power Station Construction (Hansard, 9 July 1973)

§ 8. Sir G. Nabarro
asked the Secretary of State for Trade and Industry what reduction in electric power station construction programmes there will be for the five years 1974–78, inclusive, or other convenient period, as part of the reduction in expenditure on nationalised industries, announced recently by the Chancellor of the Exchequer; what danger of power cuts will thereby be engendered and what further reduction in the demand for coal will be occasioned; and whether he will make a statement.

§ Mr. Emery
My hon. Friend will be pleased to know that the recently-announced reduction in capital expenditure by the nationalised industries in 1974–75 should not affect the power station construction programmes of the CEGB.

§ Sir G. Nabarro
As the prognosis for the next five to seven years shows that there will be a declining supply of petroleum fuels and an increased demand for coal, has my hon. Friend considered the prospect of increasing the number of coal-fired power stations, notably in the North-East and the North of England, and of reducing the number of oil-fired stations?

§ Mr. Emery
That is a slightly different question, but proposals on the fuelling of power stations are a matter for the Central Electricity Generating Board, which has applied for two new stations.

§ Mr. Skinner
Will the Minister tell us why only some nationalised industries and public authorities are told what to do by the Government? Will he explain why British Railways are told to sell massive areas of land to the property speculators, and why local authorities are told by the Government to increase rents when they do not want to do so, whereas on a relatively small matter like the burning of coal the CEGB cannot be told to use solid fuel in new power stations?

§ Mr. Emery
Two matters arise. The CEGB would not consider the fuelling of power stations a relatively small matter.
1004 It believes it to be of major importance. Secondly, on the hon. Member's example about land, all Government Departments, including mine, have urged nationalised industries to release as much land as is humanly possible for the good of the country.

§ Mr. Skeet
The electrical manufacturing industry has to survive. As it depends upon new orders, when will my hon. Friend the Minister authorise the construction of Littlebrook and Killingholme and Drax power stations, for which it is essential to give the go-ahead?

§ Mr. Emery
My hon. Friend is confusing one power station with two. The Littlebrook and Killingholme power stations are now before my hon. Friend the Minister for Industry and a decision will be made in order to ensure that there is no delay in ordering.

§ Mr. Palmer
If the economy is booming as the Government say, we shall need far more power stations in the future. Therefore, why should there be this hint that there are to be restrictions on the capital expenditure of nationalised industries, including electricity supply?

§ Mr. Emery
The hon. Member did not hear my original answer. There will be no reduction in capital cost terms of the CEGB's future generating capacity.

§ Mr. Varley
Is the Minister aware that the Government's delay in announcing the review of power station policy is leaving the field wide open to the ridiculous propaganda of Mr. Arthur Hawkins of the CEGB? Why does he not put an end to this by giving the go-ahead for Drax B and West Burton to be coal-fired? If the Government do not have the powers for this, why do they not take them?

§ Mr. Emery
As the hon. Member knows, the fuelling of Drax B is not a question which is before the Minister. We are considering Killingholme and Little-brook and a decision there will be made in sufficient time to ensure that there is no delay in ordering.