HC Deb 21 July 1977 vol 935 cc1834-6
11. Mr. Powell

asked the Secretary of State for Northern Ireland whether he will urgently institute an economic study of the respective roles of gas and electricity in supplying the energy needs of Northern Ireland.

Mr. Concannon

Northern Ireland's energy needs are the subject of continuing study by the Department of Commerce, in the light of the published Shepherd and British Gas Corporation Reports on, respectively, the electricity and gas industries.

I do not think that it will be helpful to commission a separate economic study at this stage, bearing in mind the urgency of the electricity and gas problem; which face us. Decision on these problems will be taken by the Government on the basis of the fullest possible information.

Mr. Powell

Does the Minister of State realise—I am sure that he does—that my Northern Ireland colleagues are not prepared to allow the future of one of these industries to be sacrificed for the future of the other industry? Admitting the urgency to which he refers, does he accept that it is necessary, before a substantive decision is taken, that there should be more technical and economic studies of the possibility of embodying both industries more closely in the corresponding industries of Great Britain?

Mr. Concannon

We have had two discussions in Committee on the gas industry and the electricity industry, and right hon. and hon. Members have let me know their feelings. I shall have to think very seriously about it. However, I must point out that we have all the economic advice that is available in Northern Ireland. The Department also has its own economic unit, headed by a professional economist. I do not know whether that is a good thing. To help us we also have an economic adviser, who is Professor of Economics at Belfast University.

Mr. McCusker

Will the Minister confirm that he agrees with his right hon. Friend the Secretary of State for Energy that North Sea gas is a national asset and not simply for the benefit of Great Britain? Does he accept that Northern Ireland is therefore entitled to benefit from it?

Mr. Concannon

I am sure that the hon. Gentleman does not think that he will trap me as easily as that. In the discussions that we have had we have talked about this. The decision is basically for the British Gas Corporation and how it sees its liabilities in terms of North Sea gas.

Mr. Biggs-Davison

Is it the Government's policy that the energy resources and requirements of the whole United Kingdom should be treated as a single long-term problem? The Minister mentioned the economic advice available to him. Has the Northern Ireland Economic Council been set up, and would this be a subject suitable for the council to consider?

Mr. Concannon

The Northern Ireland Economic Council, after a few hiccups, will be set up very soon indeed. On the other point, we get all the specialist advice available in Northern Ireland. Until a short time ago most of the Northern Ireland electricity and gas services were still in the hands of the local authorities, and the gas industry still is. It is not a matter of saying that it belongs to one large unit. It has never been one unit, and many negotiations will have to take place.

Mr. Skinner

Are all these decisions taken in accordance with the views of the right hon. Member for Down, South (Mr. Powell) about the necessity for market forces and free enterprise to prevail at all times?

Mr. Concannon

If market forces and free enterprise prevailed in the economy of Northern Ireland and it had to deal with its own fuel policy, costs would be much higher. The cost of electricity in Northern Ireland is already 50 per cent. dearer to industry and gas prices are three times as high as in Great Britain. That shows how cheaply the rest of the United Kingdom gets its energy from the gas and oil fields in the North Sea.

Mr. Kilfedder

Have the Government sought the advice and assistance of the Common Market, since the cost of gas and electricity is clearly a severe burden to people in the Province and to industrialists who wish to provide more employment?

Mr. Concannon

Yes. I saw Senor Giolitti when he was in Northern Ireland a short time ago on his first visit in his new capacity. That point was put to him very well indeed. I shall be seeing him again in a series of meetings tomorrow.