HC Deb 24 February 1982 vol 18 cc845-6
5. Mr. Home Robertson

asked the Secretary of State for Scotland if he will issue a Command Paper setting out the Government's policy for Scotland on the recommendations made by the Energy Committee on the Government's new nuclear programme.

The Secretary of State for Scotland (Mr. George Younger)

No, Sir. The Government's response to the report of the Select Committee on Energy is set out in Cmnd. 8317 and includes comments on the Scottish issues involved.

Mr. Home Robertson

Where was the Secretary of State when the House debated the Select Committee's report? Will he now make a statement on the increasing excess of generating capacity over demand in Scotland, caused partly by a drop in demand resulting from the Government's disastrous economic policies? Will the right hon. Gentleman say something to reassure my constituents whose jobs depend on Cockenzie power station?

Mr. Younger

I hope that the hon. Gentleman has not forgotten those whose jobs depend on the construction of Torness power station. The hon. Gentleman seems to be somewhat ambivalent towards that aspect. The overcapacity in the Scottish electricity system is caused by many factors. The closure of the Invergordon smelter has made a considerable difference. I was interested in the points made in the debate to which the hon. Gentleman referred. I read his contribution with great interest.

Mr. Gordon Wilson

Does the Secretary of State recognise that his absence from that important debate was a contempt of the House? The right hon. Gentleman is the Minister in charge of one of the biggest electricity generating bungles in the United Kingdom. That being so, what are his plans to deal with over-generation in Scotland? Does he realise that the consumer has to pay for the extra power stations that are not required because of Government policy and the inability of the industry to accustom itself to the drop in demand over about eight years?

Mr. Younger

The hon. Gentleman could not be more wrong in his assessment. The consumer principally will benefit from Torness power station, which, when completed, will produce cheaper electricity than any of the other stations in Scotland. I should have thought that the hon. Gentleman would be pleased about that.

Mr. Ancram

Nevertheless, does my right hon. Friend accept that the present over-capacity in Scotland is costing the consumer more than it needs to cost? May we have an assurance that in future decisions on power stations, such as Torness, a closer assessment will be made of the demand and cost implications in the interests of the consumer, instead of allowing the South of Scotland Electricity Board to go ahead on the ground of prestige rather than of practical necessity?

Mr. Younger

I cannot agree with my hon. Friend. The greatest care was taken to make an assessment of the financial implications of going ahead with the Torness power station. Indeed, as I have already said, it is because it should make electricity cheaper for the consumer that the building of that station has gone ahead.

Mr. Harry Ewing

The right Gentleman referred to the closure of the Invergordon smelter. Does he agree that the principal issue involved in that closure was the cost of energy to British Aluminium? As the scheme announced by the Chancellor in last year's Budget has not been extended by the Secretary of State to cover Scottish industry—because the right hon. Gentleman does not think that Scottish industry is at a disadvantage in respect of energy costs—may we have an assurance that in the Budget a week next Tuesday the discount scheme for industry will be extended to Scottish industry?

Mr. Younger

The hon. Gentleman is talking about two completely different things. On the one hand, he is talking about the cost of electricity to industry in general. On the other, he is talking about the cost of the special arrangements for the smelter. Both are important but quite different matters. We have clarified the point about the general electricity discount scheme and have pointed out that, on the whole, Scottish electricity prices are lower than those in England. I have made it clear that we are doing everything in our power to find someone new to operate the smelter, and a new power contract will be very much part of that operation.