HC Deb 19 July 1976 vol 915 cc1271-3
12. Mr. Teddy Taylor

asked the Secretary of State for Energy if he will make a further statement on gas prices.

Dr. J. Dickson Mabon

I expect a further increase in tariffs in the autumn, but it is too soon to predict its details.

Mr. Taylor

Is it not very distressing when prices for essentials are rising so much and are causing hardship? Can the hon. Gentleman give us two assurances: first, that the public expenditure review in which the Secretary of State took part today did not include any process for a gas tax and, secondly, that in the autumn, when prices go up yet again, there will be complete removal of the differentials between Scottish and English gas prices?

Dr. Mabon

The answer to the first part of the supplementary question by the hon. Gentleman is "Yes". The answer to the second part is that it is not the Government's present intention to impose a gas tax. I have some sympathy with the hon. Gentleman on the third part of his supplementary question concerning the differentials in domestic tariffs between the Scottish Region and the English regions. They have been narrowed in the last two tariff reviews, and at least five of the 10 English regions are paying the same domestic tariffs as Scotland and Wales, which are on a common tariff. I hope that the process will continue in this matter, which is being considered by the Price Commission under a new Price Code not yet formally promulgated and by the National Gas Consumer Council.

Mr. Madden

Can my hon. Friend give any idea of the range of increases in gas prices to which he has referred? Can he assure us that any increase which is agreed to will reflect an increase in costs and will in no way reflect the increase in gas tariffs which is being urged by the electricity industry in particular? If this occurred, it would be totally unacceptable to consumers and to many of us on this side of the House because workers are being asked to limit their wage increases.

Dr. Mabon

The Government are not primarily responsible. In the first instance it is for the British Gas Corporation to make proposals. We expect that the increase will be well below the average of 20 per cent. made last time.

Mr. Donald Stewart

Will the Minister guarantee to Scottish consumers that, as a result of having paid up to 50 per cent. more for gas over the years and thereby contributing to the gas grid network, we shall receive a corresponding concession when Scottish gas is piped south of the border?

Dr. Mabon

These are matters for future consideration. When one takes the average revenue per domestic therm, which is the basis used by the hon. Member for Glasgow, Cathcart (Mr. Taylor)—[Interruption.] Yes, I would associate myself with what has been said. I deplore the differentials in the prices over the years, and I hope that we shall move towards homogeneity of prices, even though it is English gas we are consuming. Gas prices in Scotland have been somewhat distorted by the fact that in Scotland average domestic consumption of gas is lower, and that is not an unfair point.