ENERGY CONSERVATION

HC Deb 05 December 1974 vol 882 cc1931-3

Ql Mr. Lamont

asked the Prime Minister whether he is satisfied with the co-ordination between the Department of Energy, the Department of the Environ- ment, and the Department of Education and Science as regards the conservation of energy.

Q8. Mr. Hurd

asked the Prime Minister if he is satisfied with the co-ordination of policy on energy conservation between the departments of Energy, Industry and the Environment.

The Prime Minister (Mr. Harold Wilson)

Yes, Sir.

Mr. Lamont

Is it not now quite clear that Britain's oil deficit this year will vastly exceed the extra £2,000 million forecast by the Chancellor in his Budget? Therefore, is it not all the more culpable that, one year after the Middle East war and nine months after the Government came to office, this country, unlike the United States, France and Holland, still does not have a proper energy conservation programme working? What is the misnamed Department of Energy taking so long about?

The Prime Minister

Without arguing about the figures, it is certainly right, as the hon. Gentleman is trying to suggest, that we should be making the maximum savings in energy, although oil consumption per head is very low compared with the United States. However, my right hon. Friend the Secretary of State for Energy will be making a statement to the House in the near future on measures to conserve energy. These will be relevant and important measures, and we shall have to consider others, but we do not propose to follow our predecessors in trying to save energy by rota cuts on the domestic household and on industry, or by interference with industrial production.

Mr. Mike Thomas

Does my right hon. Friend agree that if we are to conserve energy the present electricity and gas tariffs as applied to the consumer are not satisfactory, in that they make consumption dearest for the small consumer and cheapest for the large? In the course of the current review of nationalised industry prices, will he give instructions that this consideration be taken into account?

The Prime Minister

Yes, Sir. The Chancellor of the Exchequer referred to this matter in the Budget, as other Ministers have done in the House. This is certainly one of the important considerations relating to energy conservation, because there should be nothing in the tariffs which give the wrong incentives in terms of consumption.

Mr. Hurd

The right hon. Gentleman did not answer my hon. Friend's question. Does he not recall that the Chancellor of the Exchequer promised us a statement on this by the end of last month? Why are we lagging behind all the other main countries in the Western world?

The Prime Minister

I do not accept that we are lagging behind. Measures already taken have saved about £150 million worth of imports at current import prices. Although this is a useful contribution, I think that the House would agree that we have to do much more. What we cannot rely on purely are voluntary measures, although they must make the biggest contribution. Nor can we rely on the price mechanism, apart from what my right hon. Friend said in the Budget. It is against this background that my right hon. Friend will be announcing further measures in the next few days.

Mr. Horam

What discussions on this topic is my right hon. Friend involved in internationally, as opposed to purely national considerations?

The Prime Minister

A good deal of international consultation is going on in this field—for example, between the Chancellor of the Exchequer and his colleagues in Washington. My hon. Friend will also be aware, from the statements made after my talks with the Federal German Chancellor last weekend, that we spent a good deal of our time talking not only about the monetary aspects of the energy situation but also about energy itself and about international co-ordination in this field. When I met the President of France two days ago, this was one of the most important subjects that we covered. Of course, it will be very much discussed internationally at the European Council, the summit talks, in Paris on Monday and Tuesday of next week.