HC Deb 26 March 1973 vol 853 cc904-5
15. Mr. Bruce-Gardyne

asked the Secretary of State for Trade and Industry if he will make a statement regarding the progress of his discussions with the management of the nationalised electricity industry about the impact upon its finances of participation in the CBI price restraint scheme and of observance of the prices code under phase 2.

Mr. Tom Boardman

I am not yet in a position to make a statement.

Mr. Bruce-Gardyne

Can my hon. Friend nevertheless indicate whether it is true that electricity boards asked for an 8 per cent. increase in November and that the Government intend to give them only a 2 per cent. increase in tariffs next month? If this is the case, what additional scale of subsidy is to be added to the formidable borrowing requirement in the year ahead? Finally, can my hon. Friend assure the House that any subsidy will be distributed to the regional boards in relation to the shortfall on revenue resulting from price restraint imposed on them and not in relation to deficits incurred by individual boards?

Mr. Boardman

With regard to applications for price increases in future I would point out that the Question relates to past deficits and I will not look into the future or comment upon that. With regard to deficits which have arisen and the request for compensation, my hon. Friend is absolutely right. The boards asked for compensation on the basis of revenue losses, but that principle was not accepted, as demand for a reduction of the effects of price restraint by reimbursement of estimated loss of revenue would not be justified.

Mr. Dalyell

If the hon. Member cannot look into the future, at least he must know what the estimated electricity borrowing requirement is for 1973–74. What is it?

Mr. Boardman

If the hon. Member will table a Question I will deal with it, but that does not arise on this Question.

Mr. Benn

Is the Minister now beginning the process of shielding behind the Price Commission, and is he really telling the House that he cannot answer questions about the future because of the establishment of that body? If the Price Commission is to determine the amount of tariff increases authorised, how can the Government make any calculation about the rate of the borrowing requirement since they will not know till an independent agency reaches its view what the residual borrowing minimum will be? Is not this a total denial of ministerial responsibility?

Mr. Boardman

The right hon. Gentleman is quite wrong. I would refer him to the White Paper which will be published later this afternoon.