HC Deb 23 March 1988 vol 130 cc353-4
10. Mr. Malcolm Bruce

To ask the Secretary of State for Scotland what representations he has received on the maintenance of the economic development role of the Scottish electricity supply industry after privatisation.

Mr. Lang

My right hon. and learned Friend has received a number of representations on this matter. The Government intend that the major contribution which the North of Scotland Hydro-Electric Board has made to the development of its area by providing secure supplies at an acceptable cost to remote consumers will be maintained after privatisation.

Mr. Bruce

I am grateful to the Minister for that assurance. Will he acknowledge that there is concern that the Government, either after, or in preparation for privatisation may force up electricity prices artificially? Will he give us an assurance that that will not be the case?

Secondly, will he assure us that the competitive prices that the North of Scotland board has been able to offer in the past will still be able to be offered in the future, so that industry in the north of Scotland can have one compensation for being remote from markets—having cheaper electricity than anywhere else in the United Kingdom?

Mr. Lang

I am happy to give the hon. Gentleman the assurance that he sought in the first part of his question.

Fixing prices is a matter for the boards, not the Government. As for the second part, my right hon. and learned Friend pointed out that common tariffs will apply under the legislation to the whole northern area.

Mr. McKelvey

Will the Minister or the Secretary of State please answer the question asked earlier about discussions between the Secretary of State and the chairman of the South of Scotland Electricity Board? Did the Secretary of State at any time during those discussions raise the matter of the social and economic disaster that will take place after privatisation, or discuss whether a deal can be struck between the SSEB and the coal board? Did he at any time discuss the social costs to the whole Scottish community?

Mr. Lang

My right hon. and learned Friend has already answered that question. The electricity board has made it clear that it is willing to contemplate a phased reduction in prices for coal.

Mr. Nicholas Bennett

Does my hon. Friend agree that one of the best ways of helping the economic development of the Scottish electricity supply industry after privatisation would have occurred if Ford had been able to construct a plant at Dundee, which would have used far more electricity? What representations have been received from hon. Members on the Opposition Front Bench in support of the scheme?

Hon. Members

What scheme?

Mr. Lang

I am not certain to which scheme my hon. Friend refers, but it is true that the development of the economy and of enterprise in Scotland, leading to increased consumption of electricity, could only be of advantage to all consumers in Scotland.

Rev. Martin Smyth

Has the Minister, in his conversations about the development of the Scottish electricity system, discussed the possibility of a connector line with Northern Ireland, which would be in keeping with the EEC policy of interconnecting lines, and appropriate, as the Kilroot power station has contract with the Ayrshire mines?

Mr. Lang

That is an interesting matter, but the hon. Gentleman will have to pursue it with my right hon. Friend the Secretary of State for Energy.