Gas Industry (Hansard, 12 June 1980)

§ 4. Mr. Molyneaux
asked the Secretary of State for Northern Ireland what is his 779 estimate of (a) the total cost and (b) the cost to public funds of the discontinuance of the gas industry in Northern Ireland.

§ The Under-Secretary of State for Northern Ireland (Mr. Giles Shaw)
Total capital costs associated with closure of those undertakings which have decided to cease supply of piped gas are estimated to be of the order of £78 million. The Government are committed to a scheme of assistance towards these costs. The details of the scheme are well advanced and I hope to be able to announce the complete package shortly.

§ Mr. Molyneaux
Does the hon. Gentleman not accept that the basis for the original assessment and decision has been transformed by the staggering burden of cost—I think that the figure given by the Minister represents only part of it—and by the discovery of fresh resources?

§ Mr. Shaw
I do not consider that what I have announced discounts the original basis on which the decision was made. The estimated cost for the pipeline today is about £120 million, compared with the rundown cost that I have announced. As regards the discovery of alternative resources, there is not an immediate prospect to enable me to justify a review of the decision.

§ Rev. Ian Paisley
Does not the hon. Gentleman agree that the cost that he has announced, plus the grant that he would have got from the EEC, would have been enough to establish a link with the national grid? Will he remember that the 50 per cent. grant that has been promised for the change of appliances will go only to those who are not able to change their appliances without the grant, because it is the working-class people of Northern Ireland who use gas for domestic purposes?

§ Mr. Shaw
An EEC grant would have been at only about 40 per cent. and that factor was taken into account in arriving at our original decision on the non-viability of the project. As to what the hon. Gentleman said about a possible percentage of compensation, I must remind him that neither I nor the Government have made any official statement on the matter and none will be made until we have completed the current investigation.

§ Mr. Fitt
Does the hon. Gentleman agree that the change from gas to other forms of energy will bring great hardship to poverty-stricken people, particularly in Belfast, but in other areas as well? As the people had no say in the decision to end the gas supply for Northern Ireland, should not the Government bear the full cost of the change to other forms of energy? The people had no say in the decision and, therefore, should not be asked to pay anything.

§ Mr. Shaw
I must remind the hon. Gentleman that the decision was an announcement by the Government not to invest in a gas pipeline. The decision to discontinue piped gas supplies has been a matter for the undertakings. With regard to discussions on those who are disadvantaged, I accept entirely the hon. Gentleman's strong view that they should be specially considered in any arrangements we make for compensation.

§ Mr. Pendry
Is the Minister aware that a detailed study of the Northern Ireland gas industry is about to be published by the Northern Ireland Gas Employers Board following a thorough study by consultants of international repute? When it is published, will the Minister study it carefully and allow the House a full debate on the question?

§ Mr. Shaw
I am obviously extremely interested in any publication offering new information on this project. No doubt this will be considered carefully by those concerned. I remind the hon. Gentleman that the question of a debate is not a matter for me.