HC Deb 09 December 1981 vol 14 cc850-1
7. Mr. Harry Ewing

asked the Secretary of State for Scotland what discussions he has had with the South of Scotland Electricity Board and the North of Scotland Hydro-Electric Board on the implementation of schemes, based on the announcement made in the Budget on 10 March to help large industrial users of electricity in Scotland; and if he will make a statement.

Mr. Alexander Fletcher

At the time of the Chancellor's announcement it was made clear that the concessionary scheme applied only to England and Wales. My right hon. Friend the Secretary of State for Scotland said then that the Scottish electricity boards expected their tariffs for industrial consumers to remain competitive with those in the rest of the United Kingdom and that they would review their terms to ensure that this was achieved. Discussions on these matters have taken place with the boards and there is no indication that industrial consumers in Scotland are paying more than their counterparts south of the border.

Mr. Ewing

How does the Minister explain the fact that Cape Insulation in my constituency wrote to me complaining bitterly that the SSEB had alleged that the Scottish Office was stopping it implementing a scheme for industry in Scotland? Has the Minister received a copy of that letter, which I sent to him? If he has received the letter, will he answer the allegation that the Scottish Office is frustrating the SSEB in implementing a scheme to help industry in Scotland pay less for its electricity?

Mr. Fletcher

I think that there must be a misunderstanding. I have written to the hon. Gentleman today replying to the copy of the letter that he sent me. I assure the hon. Gentleman and the House that the Scottish Office is not interfering with the SSEB' s tariffs. At a meeting with the chairman yesterday, I discussed this, among other matters. The hon. Gentleman's constituent may be referring to the NEDC office's work on comparisons between United Kingdom and EEC prices, which is a different matter.

Sir Russell Fairgrieve

As the United Kingdom continues to lag behind its main European industrial competitors in the generation of a higher proportion of electricity by nuclear power, is there any chance that the SSEB and the North of Scotland Hydro-Electric Board will break out of this United Kingdom stricture and create a higher proportion of nuclear energy?

Mr. Fletcher

My hon. Friend is correct in saying that the United Kingdom has a lower proportion of nuclear energy than some EEC countries, particularly France, where the proportion is very much to France's industrial advantage. Within the United Kingdom, Scotland has a higher proportion of nuclear energy than England and Wales.

Mr. Hugh D. Brown

I recognise that the industrial success of this country is of paramount importance, but will the Minister say whether he has had any discussions with the chairman of the SSEB about adopting a more sympathetic approach to disconnections and so enable the board to project a better public image based on its record and assist it to wipe off debts?

Mr. Fletcher

We have discussed these matters with the board, but the subject comes up again on question No. 11.

Mr. Henderson

Is my hon. Friend aware that there is frustration in some of the continuous process industries, such as the paper industry, over the fact that the continuous use of electricity throughout 24-hour and longer cycles gives considerable economic benefit to the electricity boards, which should be recognised in improved tariffs?

Mr. Fletcher

The boards have a responsibility, to make sure that each user of electricity meets the cost of that electricity; in other words, to ensure that the spread of costs is even. My hon. Friend is correct in saying that other factors must be taken into account where large users are concerned.