HC Deb 14 April 1980 vol 982 cc773-4
9. Mr. John H. Osborn

asked the Secretary of State for Energy on what date he plans to make his proposed statement on the reorganisation of the electricity supply industry.

Mr. David Howell

I am continuing consultations, and hope to make a statement in due course.

Mr. Osborn

Will my right hon. Friend bear in mind that many of us would prefer an inquiry, a move away from centralisation—which has been proposed—and provision for independent generation of electricity? Will he take a favourable view of those suggestions?

Mr. Howell

I note my hon. Friend's view on the matter. The central recommendations of the Plowden committee were on the table when the Government came into office. Consideration of the recommendations has formed part of our overall consideration of how we should proceed on electricity reorganisation. We have also considered possible restructuring of the generating boards. I ask my hon. Friend to await my statement on the conclusions that we have reached.

Mr. Palmer

Will the Minister give an assurance that when he is ready to make his statement—which has been longawaited—on the reorganisation of this important basic industry, he will make it from the Dispatch Box and will not use the evasive device of an inspired parliamentary question?

Mr. Howell

The statement will be made in the appropriate form.

Mr. Rost

Will my right hon. Friend confirm that what the industry needs to serve the consumer more efficiently is not more centralisation but far greater regional autonomy?

Mr. Howell

The sentiment reflected in my hon. Friend's question is the right one. Over the years, we have learnt that there are dangers in excessive centralisation. This is not an aid to centralisation. People are seeking organisations on a more manageable and human scale. That thought should be reflected in all major considerations of reorganisation of all major public and national bodies.

Mr. Stoddart

Is the Minister aware that his statement will cause a great deal of disappointment within the electricity industry itself because of the inordinate delay—I appreciate that it is not the Minister's fault—in implementing the Plowden committee report, or some alternative policy? Is he aware that the industry is becoming demoralised? Will he make an announcement as quickly as possible?

Mr. Howell

I am not sure that matters are as bad as the hon. Gentleman suggests. He was kind enough to say that it was not my fault. Indeed, the question of reorganisation of electricity has been on the table for the past 10 years. It was continuously discussed under successive Governments, reached the point of near decision in the fourth year of any parliament, and then was put off as being too late.

The industry has a perfect right to demand that the uncertainty be ended. I undertook that decisions would be reached around Easter, and that I would make a statement some time after Easter on our conclusions, after appropriate consultations and discussions. That is the process in which I am engaged. I am moving towards a stage where I can make a statement, and I shall certainly do so.