HC Deb 08 March 1982 vol 19 c594
14. Mr. Hardy

asked the Secretary of State for Energy how many letters or other communications have been received by his Department in regard to the incereases in gas prices that are to be made during 1982.

Mr. John Moore

In recent weeks my Department has received about 300 letters and other communications about the increases in domestic gas prices announced by BGC on 25 February.

Mr. Hardy

As Ministers seem unaware of the position, will the hon. Gentleman assure the House that the replies to those representations will make it clear that price increases result from Government decisions rather than any decisions of British Gas?

Mr. Moore

The replies sent by the Government will make it clear that the Government have had the courage to face the appalling mess that they inherited in the imbalance and lack of relationship to the real cost of supply that still gives rise—as the hon. Member for Goole (Dr. Marshall) has noted—to a tremendous and potentially more useful relatively cheap source of supply to many people.

Mr. Hal Miller

Will my hon. Friend also make it clear in his replies that the price has been kept so artificially low that demand had outstripped supplies of gas and that many industries have been unable to obtain supplies? Is he aware that the balance had for too long been tipped against industry and in favour of the domestic consumer?

Mr. Moore

I could not agree more with what my hon. Friend says. The 15-month effective industrial gas price freeze to 1 March was the beginning of an attempt to ensure long-term job opportunities through recognising the needs of industry as well as the price of domestic gas.

Mr. Merlyn Rees

If the policy is so self-evident, why was the first action of the Government to freeze gas prices?

Mr. Moore

It is increasingly extraordinary that the right hon. Gentleman's only argument seems to be that previous policies of the Government were so wrong that we should have acted even more quickly to correct them.