HC Deb 28 March 1983 vol 40 cc7-8
6. Mr. Hoyle

asked the Secretary of State for Energy if he will seek to bring electricity prices for process industries into line with those charged in Italy, France and Germany.

Mr. Lawson

The recent study by the CBI on international energy prices shows that our electricity tariffs to the process industries are broadly in line with the European average.

Mr. Hoyle

While the Secretary of State may claim that, does he agree that representations have been made to him by the process industries, and in particular by the paper industry, all of which feel that they are at a grave disadvantage on energy prices? Will he re-examine the matter to see whether those industries can be placed in a more competitive position?

Mr. Lawson

The figures in the study to which I referred are not my figures. The study was headed by the CBI. Of course I receive representations from time to time, but I assure the hon. Gentleman that the figures that I quoted are correct.

Mr. John H. Osborn

As my right hon. Friend will have had contact with Mr. MacGregor, as chairman of British Steel, is he aware that electric steel melting is contracting rapidly because it uses electricity generated from coal-fired power stations, which is far more expensive than that used by competitors elsewhere in Europe and the world?

Mr. Lawson

I know of my hon. Friend's deep interest in and concern for the steel industry over many years, particularly the electric arc section of the industry. However, perhaps he has not fully taken into account the change in comparative prices that has occurred as a result of the appreciation of the deutschmark and the depreciation of sterling in recent weeks and months?

Mr. Rowlands

Is the Secretary of State aware of the statement that has been put out by his Department that this problem had gone away? As it clearly has not gone away from the steel industry, the chemical, the textile, and the paper mill industries, will he now call an urgent meeting of all the parties in an effort to resolve the argument?

Mr. Lawson

I had a meeting with my right hon. Friend the Secretary of State for Industry and with representatives of all those industries some weeks ago. I am well aware of what they said and of the current situation. Of course, many things do not go away, including the hon. Gentleman.

Mr. Sever

Does the Secretary of the State accept that the promised upturn of manufacturing and process industries is unlikely to come about when so many industrialists, such as those who are desperate to make progress in the west midlands, feel that they are hampered by the Government's continuing neglect of their problems?

Mr. Lawson

Those problems are not neglected. Through the contracted-consumer load scheme, and in other ways, we have given £100 million a year towards the reduction of electricity prices to those industries. I should add that German prices are now higher than those of the United Kingdom for all industrial consumers, except for a very tiny minority.