§ 6. Mr. McCrindleasked the Secretary of State for Energy if he will make a statement on his policy towards competition in the gas industry and on the implications for the regulation of the industry if the privatisation proposals are implemented.
§ Mr. Buchanan-SmithThe provisions of the Oil and Gas (Enterprise) Act 1982, which have opened up the possibility of greater competition in the gas industry, will be continued.
§ Mr. McCrindleAs one who supports both the privatisation of British Gas and the concept of competition, can my right hon. Friend tell me why it proved possible to allow Mercury to use British Telecom lines to mount some competition when BT was privatised but apparently it is impossible for British Gas pipelines to be used for a similar purpose?
§ Mr. Buchanan-SmithMy hon. Friend should address any questions about BT to my right hon. and learned Friend the Secretary of State for Trade and Industry. It is common knowledge within the industry that the provisions of the Oil and Gas (Enterprise) Act 1982 have had a considerable beneficial effect on competition in the industry.
§ Mr. BruceDoes the Minister acknowledge that there is real concern about the extent to which competition by British Gas will change vis-a-vis other industries in the energy sector following privatisation? There is also concern about the Government's proposal to allow an inflation minus X per cent. pricing policy. During the passage of the Bill through the House, will the right hon. Gentleman seriously consider setting up a public utilities commission, which could apply the same control and regulatory standards to a privatised British Gas as apply to the electricity and other energy industries?
§ Mr. Buchanan-SmithI note the hon. Gentleman's attachment to bureaucracy, and I am sure that we shall have time to debate that during the passage of the Bill.
Mr. John Mark TaylorIf we proceed to privatisation, will there be a more competitive distribution of shares than was the case with Britoil?
§ Mr. Buchanan-SmithI hope that, as happened with British Telecom, those working in the management of the industry, and others, will have an opportunity to share in the industry. One of the great purposes of privatisation is to ensure that ownership is spread very much more widely. I am grateful for my hon. Friend's support.
§ Mr. RowlandsThe Minister spoke about the beneficial competition that has already occurred under the 1982 Act. How many schemes has he approved under the provisions of that Act for private use of any of the pipelines presently owned by British Gas?
§ Mr. Buchanan-SmithThe hon. Gentleman knows that no schemes have been approved. However, from his knowledge of the industry, he equally knows that th[...] have been extremely beneficial effects—as anyo[...] the oil industry will tell him.