HC Deb 29 April 1974 vol 872 cc751-2
8. Mr. Bruce-Gardyne

asked the Secretary of State for Energy what discussions he has had with the gas industry regarding its pricing structure since the Budget ; and with what result.

Mr. Varley

I had a useful exchange of views on the subject with the Chairman of the British Gas Corporation on 5th April.

Mr. Bruce-Gardyne

Does not the right hon. Gentleman agree that for many purposes natural gas in particular is now the most efficient form of industrial fuel? What is the sense in making it the cheapest, bearing in mind that the supply is already incapable of coping with the demand and the effect which restraint on electricity prices has been seen to have on that industry and its future investment prospects?

Mr. Varley

I note the hon. Gentleman's view that gas prices should go up even further.

Mr. Biffen

Hear, hear.

Mr. Varley

One thing which has to be taken into consideration is the Government's determination to moderate the rate of inflation. This is a difficult matter, and I hope that at some stage the price situation for gas can be rectified because it is the intention of my Department to try to move towards more realistic energy pricing.

Mr. Biffen

Is the right hon. Gentleman aware that this Question is intimately connected with Question No. 6 and that it is the unwillingness of his Department to sanction a market price for gas which is putting many consumers who have to engage in manufacturing processes fired by oil at a serious and arbitrary disadvantage?

Mr. Varley

These matters were fully considered before the Budget and an announcement about them was made by my right hon. Friend the Chancellor of the Exchequer in his Budget Statement.