§ 1. Mr. Fisherasked the Secretary of State for Energy if he will take steps to bring United Kingdom energy price levels into line with current levels in the European Community.
§ The Minister of State, Department of Energy (Mr. Alick Buchanan-Smith)While particularly intensive energy users may experience disadvantage, the latest evidence shows that energy prices to United Kingdom industry continue to be generally in line with those of other EC member states.
§ Mr. FisherI am glad that the Minister recognises that intensive energy users are at a disadvantage. I believe that that is a direct result of the Government's policy. Will the right hon. Gentleman consider more special arrangements and a more flexible tariff system to help industries, such as the pottery industry in my constituency, which are being discriminated against when compared with their European competitors?
§ Mr. Buchanan-SmithI accept that there are some problems for energy-intensive industries. The CBI report 2 on this matter shows that our prices generally are in line with those of the European Community. Action has been taken through schemes such as loan management. We shall watch the developments.
§ Mr. Michael McNair-WilsonIs my right hon. Friend aware that Reed International, which has a large company within my constituency, believes that it faces a fuel oil tax of £1.5 million more than similar companies in the European Community? Is not the fuel oil tax putting such companies at a considerable disadvantage in terms of competitiveness?
§ Mr. Buchanan-SmithI hope that my hon. Friend will acknowledge that that tax has been frozen during the past three years. Independent reports show a balanced position.
§ Mr. BoyesIs the Minister aware that energy prices are relative to production costs and that in the European Community, Belgium—
§ Mrs. Kellett-BowmanThe hon. Gentleman is reading.
§ Mr. BoyesThat is infantile. I am allowed to look at the figures. The hon. Lady ought to know better than to shout.
§ Mr. SpeakerOrder. I believe that the hon. Member realises that he is not in order. Will he proceed with his question?
§ Mr. BoyesI am trying to do so, Sir.
Does the Minister realise that Belgium subsidises coal prices by—
§ Mrs. Kellett-BowmanThe hon. Gentleman is not allowed to read.
§ Mr. SpeakerOrder. Let us be fair to the hon. Member. He is relatively new to the House. The hon. Member should not read his question; he should paraphrase it.
§ Mr. BoyesIs the Minister aware that other EC countries subsidise coal to a much greater extent than Britain? Belgium, for example, provides production aid of 3 £16 per tonne. That affects not only energy prices, but coal miners' jobs in my constituency. Will the Government subsidise our coal production at a rate similar to the highest in the EC?
§ Mr. Buchanan-SmithI hope that the hon. Gentleman recognises that investment in the British coal industry is among the highest in Europe. He should consider that fact before making comparisons.
§ Mr. GreenwayDoes my right hon. Friend accept that standing charges are a substantial part of energy prices for the domestic user? Will he use his influence to ensure that these charges are kept down as much as possible to reduce the consequences of the recession on pensioners and the unemployed?
§ Mr. Buchanan-SmithI hope my hon. Friend will acknowledge that the former Secretary of State kept standing charges to a low level. A report shows that standing charges reflect the costs that they were meant to cover.
§ Mr. RowlandsIs the Minister aware that my hon. Friends are trying to bring to his attention special problems in key industries? As he has admitted the existence of those problems, will he review them and see what he can do to alleviate them?
§ Mr. Buchanan-SmithThe hon. Gentleman did not listen to what I was saying. Some of our energy industries — including electricity — operate operate management schemes which are helpful to users. I hope the hon. Gentleman will acknowledge that during 1983–84 electricity prices are being frozen and that gas contract prices have been frozen until the end of this year. I acknowledge the problem, and action has been taken.