Severn Barrage (Hansard, 25 July 1983)

§ 4. Sir Brandon Rhys Williams
asked the Secretary of State for Energy what assessment he has made, in the context of the Severn barrage project, of possible methods of financing the project; and if he will make a statement.

§ Mr. Buchanan-Smith
The primary objective of the two-year study to be carried out by the Severn tidal power group, details of which were announced by my right hon. Friend the Chancellor of the Exchequer on 12 May, will be to assess the technical and financial viability of a barrage built and operated by the private sector.

§ Sir Brandon Rhys Williams
Does my right hon. Friend agree that this highly desirable project will be difficult to finance in the public sector or the private sector because it is bound to take many years to come to fruition? Will he, therefore, seriously consider the possibility of its being financed by an indexed loan linked to the price of electricity?

§ Mr. Buchanan-Smith
One of the main purposes of the assessment is to examine finance. My hon. Friend mentions an interesting idea, the practicability of which is worth further examination. I recommend that my hon. Friend refers any ideas to the Severn tidal power group for its consideration.

§ Mr. Colvin
I welcome what Ministers have said this afternoon about the sale of capital assets in relation to energy, but does my right hon. Friend agree that it is not considered good business to sell capital assets to meet the deficit on current account—

§ Mr. Speaker
Order. The question is about the Severn barrage.

§ Mr. Colvin
I am coming to that, Mr. Speaker, if you will forgive me for a second. Does my right hon. Friend not agree, therefore, that in the case of the Severn barrage, where a feasibility study is recommended by the Bondi committee which will cost about £45 million, that part of the money released by the sale of capital assets should be used to meet the cost of that project?

§ Mr. Buchanan-Smith
The whole purpose of the Severn tidal power group study is to consider the various aspects of these matters. The Government are putting money into that survey. We have to wait for it in terms of practical feasibility and financing.