HC Deb 14 January 1980 vol 976 cc1192-4
11. Mr. Trippier

asked the Secretary of State for Energy when he plans next to meet the chairman of the British Gas Corporation.

Mr. Norman Lamont

My right hon. Friend and I are in regular contact with the chairman of British Gas. I shall be meeting him next on 28 January.

Mr. Trippier

In view of that reply and as a result of the recent proposed increases in gas prices, will my hon. Friend tell the House whether the substantial profits which will now be made by the British Gas Corporation will be used to reduce the public sector borrowing requirement and/or to assist the less prosperous types of energy?

Mr. Lamont

In a few moments, my right hon. Friend will answer a question about gas pricing which is closely related to the question of the Corporation's profits.

Mr. Campbell-Savours

When the hon. Gentleman meets the chairman of the British Gas Corporation will be raise with him, in the light of the high rate of unemployment in the Northern region, the possibility of introducing a system of subsidising the consumption of gas by industry in the regions? Alternatively, the Corporation could introduce a system whereby its prices varied dependent on the levels of unemployment in various parts of the country. That would be a major incentive for bringing industry to the regions.

Mr. Lamont

I am afraid that I cannot give the undertaking that the hon. Gentleman seeks. At a time when demand is considerably outstripping the supply of gas it would make no sense to increase the element of subsidy. I do not believe in the hon. Gentleman's logic of a regional differential relating to unemployment. Gas must be priced according to the market and according to economic criteria.

Mr. Forman

When my hon. Friend next meets the chairman of the Corporation, will he suggest that the Corporation might consider allowing certain domestic consumers a given amount of gas at a reasonable price, before the price goes up? At present, the greater the quantity of gas that is consumed, the more economic it is.

Mr Lamont

The structure of tariffs and the precise relationship of the small consumer's tariff, is primarily of concern to the British Gas Corporation. If my hon. Friend wishes to make a specific suggestion, I shall be glad to discuss it with the chairman.