HC Deb 28 March 1983 vol 40 cc6-7
5. Mr. Eggar

asked the Secretary of State for Energy what was the total expenditure on advertising by the British Gas Corporation and the electricity supply industry in the last year for which figures are available.

Mr. Gray

I am informed by the industries that in 1981–82 advertising expenditure was £22 million by the electricity industry and £23 million by the gas industry.

Mr. Eggar

Does my right hon. Friend realise that that means that every gas consumer will be paying at last £2 a year for advertising costs and a similar sum in respect of electricity advertising and that those boards will be competing against each other? When will my hon. Friend take action with the boards to ensure that the costs are reduced?

Mr. Gray

I am concerned at the level of expenditure and I have asked the British Gas Corporation to consider ways of reducing it. My noble Friend the Under-Secretary of State, the Earl of Avon, will be discussing the matter with the new chairman of the Electricity Council at the earliest opportunity.

Mr. John Evans

Does the Minister agree that if these bodies did not spend quite so much on advertising the electricity supply industry, in particular, would not need to close showrooms in small towns such as Newton-le-Willows in an effort to save money?

Mr. Gray

The Office of Fair Trading report in April 1982 pointed out that over four years, 1977–78 to 1980–81, the LEB spent more on advertising appliances, as a percentage of turnover, than did other groups of retailers.

Mr. Forman

Would not that combined figure of £55 million be much better spent on the promotion of energy conservation packages by the industries concerned?

Mr. Gray

Perhaps I should correct my hon. Friend. The total was £45 million. What my hon. Friend says highlights the matter and shows that there is room for improvement on the part of both industries for economies in advertising.

Mr. John Smith

Will the Minister reflect on how ironic it is that the hon. Member for Enfield, North (Mr. Eggar) should complain about advertising and competition only when they occur in the public sector, when we hear so frequently about the virtues of both those forces wherever they appear in the private sector?

Mr. Gray

I do not think that it is at all surprising. My hon. Friend is quite correct, and I do not believe that the two can be compared in scale.