HC Deb 10 April 1989 vol 150 cc671-2

Ordered, That, at this day's sitting, the Electricity Bill may be proceeded with, though opposed, until any hour.—[Mr. Durant.]

As amended, further considered.

Mr. Morgan

The CBI spoke of "the nuclear millstone". It wants to be free of that and the Government must address the matter. Consumers, particularly in the north and in south Wales, could well take the Government to the European Court and challenge them that the north subsidises the south on electricity prices and will do so even more under the Bill because of the increasing burden of the nuclear millstone. Have the Government thought about that?

We wonder how the Government will handle a proposed foreign takeover of any of the area boards or generating boards. Will not the EEC disallow the Government from keeping the essential sinews of the electricity industry, which we believe must remain in British hands? The water industry is in a similar position. If France or any other European country suddenly took a fancy to a British area board, as happened with the water boards, could the Government stop such a foreign takeover, given the strictures on restrictive trade in articles 85 and 92 of the treaty of Rome?

Mr. Michael Spicer

I assure the hon. Gentleman that we have thought about the competitive regime implied in the Bill. That is, indeed, when we introduced the Bill. It will have a dramatic effect in ensuring competition in the industry in future.

The amendments seek to remove all exemptions to restrictive agreements. We cannot agree to that because there must be some such agreements. The industry could not exist without, for example, agreements on emergency planning or pooling arrangements.

We have had discussions with the Commission on the hon. Gentleman's question about the EEC. We have absolutely no reason to believe that there should be any problems. We are in the forefront of all European countries in providing a competitive regime for the electricity industry. We shall keep the EEC informed about any future developments. On that basis I hope that the hon. Gentleman will withdraw his amendment and that the House will accept the Government amendments in this group.

Mr. Morgan

I shall accept the Government amendments, but not because we are satisfied with the Minister's reply.

In the EEC, if one calls something public infrastructure and treats it as such, one is allowed all manner of exclusions from the impact of articles 85 and 92. However, if one calls something a straight commercial business and says that one wishes to return all EEC loans because one wants to be on a complete commercial footing, as the Government do, one is in trouble. Therefore, many questions must be answered before we can be assured that the EEC will not find it necessary to interfere on a large scale with the industry. The Government have not thought this through.

Amendment, by leave, withdrawn.

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