§ 6. Mr. Biffenasked the Secretary of State for Energy if he will institute a departmental inquiry to assess the consequences for the industrial users of gas and electricity of the differential price increase in these forms of energy ; and if he will make a statement.
§ Mr. VarleyNo, Sir.
§ Mr. BiffenWhile I would not wish to press for increasing bureaucracy through a departmental inquiry, may I ask the right hon. Gentleman whether he is aware that since I tabled this Question I have learned that the problem is more difficult that I at first supposed, particularly in respect of where there is competition between oil and gas? Since the Government have such comprehensive control over the prices of all these energy sources, will not the right hon. Gentleman recognise that for many industrial users there are serious disadvantages in that they are tied to one source the price of which is permitted to increase whereas their competitors are tied to another source whose price is rigorously controlled?
§ Mr. VarleyI understand the problem. When we came to consider these matters we were in some difficulty in view of the prospective deficits of all the fuel industries. If nothing had been done about it, the electricity deficit would have been about £550 million for 1974–75. That could not he allowed to go on. But the prospective deficit for the gas industry would not have been as large as that. This was a very difficult decision.