British Gas

HC Deb 11 June 1984 vol 61 cc621-2

1. Mr. Rowlands

asked the Secretary of State for Energy when he hopes to meet the chairman of British Gas to discuss the sale of its assets.

The Secretary of State for Energy (Mr. Peter Walker)

I have regular meetings with the chairman of British Gas on a wide range of subjects.

Mr. Rowlands

Will the Secretary of State now confirm that the British Gas Corporation would not have accepted the terms of the Wytch farm sale had the right hon. Gentleman not virtually exonerated all members of the corporation from any responsibility by his letter on the day of the sale? Will the right hon. Gentleman also take the opportunity to make a full statement to the House, rather than one in a hole-and-corner way in the form of a written answer on the eve of the spring bank holiday, on the detailed terms of the arrangements, the safeguards and, especially, the way in which the first tranche of money £80 million or £85 million—is to be paid, not to the corporation, but to the Government?

Mr. Walker

The House has already had the details of the manner in which it will be paid. That has been given in a full answer to a parliamentary question.

Mr. Rowlands

No.

Mr. Walker

It has. I know of nothing in the letter which exonerated anyone. All that I said in the letter was that I thought that the sale was in the national interest, and the corporation accepted that view.

Mr. Patrick McNair-Wilson

When my right hon. Friend has the next of his regular meetings on a variety of subjects with the chairman, will he be able to shed any further light on the Government's attitude towards the importation of gas? Does he agree that if we as a nation followed a path aimed at self-sufficiency, prices would inevitably rise?

Mr. Walker

It is important to ensure that we have sufficient supplies to guarantee the continuance of the activities of the gas industry. This has demanded substantial imports, and it will continue to do so for the foreseeable future.

Mr. Hardy

Before there is any further persecution of the British Gas Corporation, and before the Secretary of State's next meeting with the chairman, will he accept that in his loudly proclaimed desire to restrain energy price inflation he has had far more assistance from the British Gas Corporation than from the private oil interests which he seeks to assist?

Mr. Walker

We had to increase gas prices this year at the request of the corporation. That is the result of the increased cost of imports and of the cheap fuels running out. I have no criticism of the way in which the corporation has acted.

Mr. Dalyell

In the light of the answers given to my hon. Friend the Member for Merthyr Tydfil and Rhymney (Mr. Rowlands) by the Secretary of State on Friday, can the right hon. Gentleman honestly say that in the new circumstances the British Gas Corporation would have accepted the deal if it had known then what it knows now?

Mr. Walker

I have had no protests and no representations from the corporation to the opposite effect.