HC Deb 10 April 1989 vol 150 cc563-4
10. Mr. Radice

To ask the Secretary of State for Energy when he next expects to meet John Baker, the chief executive of the Central Electricity Generating Board; and what matters will be discussed.

Mr. Michael Spicer

My right hon. Friend and I regularly meet senior members of the Central Electricity Generating Board, including Mr. John Baker.

Mr. Radice

Will the Minister tell the House about an important issue that has arisen from discussions that he might have had with Mr. Baker— that is, the latest estimate of the costs of the flotation of electricity supply industry shares?

Mr. Spicer

No, Sir. Never have any Government made that sort of information available, especially before the enabling legislation has passed through the House of Commons. It would be wrong of us to get estimates and to go into deep preparations for flotation campaigns before Parliament has finally passed judgment on the Bill that would enable us to do so.

Mr. Rost

Will my hon. Friend seek assurances from the chief executive of the CEGB that the privatised generation companies will not inhibit competition by continuing to hoard the 100 or more redundant power station sites that the CEGB has not been interested in redeveloping or refurbishing, but which the private sector is keen to develop with new technologies for the smaller power stations which have planning approvals because it will be difficult to find sites for competitive power stations unless we use those that we already have?

Mr. Spicer

My hon. Friend makes an extremely good point. We have made flexible provisions for compulsory purchase by private power companies should they wish to take over the land that has not been used by the existing operators. I shall ensure that my hon. Friend's words are widely heard.

Mr. Blair

Does the Minister agree that if the costs of selling electricity are the same as those for gas and British Telecom, we are talking about £25 for every household in the country and when that is added to higher prices, to a special nuclear tax and to uncertainty even about security of supply, it is no wonder that the vast majority of people in this country oppose privatisation?

Mr. Spicer

The hon. Gentleman is giving us an overture to what will no doubt be his speech at the beginning of our Report and Third Reading debates later today.

This is the biggest privatisation of all time— and quite rightly so. Many consumers will benefit, and there will be a much increased number of shareholders. One of the Opposition Front Bench Members said that he hoped that the privatisation would be properly undertaken. I can assure the hon. Gentleman that it will be properly undertaken and that there will be a proper campaign to promote it.

Mr. Malcolm Bruce

Does the Minister recall that during the Report stage of the Electricity Bill his right hon. Friend the Secretary of State said that a new code of practice on disconnections would be brought before the House, or at least would be notified to the House, before that stage of the Bill had been completed? Can he tell us what has happened to the code of practice, and when we are likely to hear the details of it?

Mr. Spicer

I hope very much that we shall be able to bring the code of practice forward before the House has finished its consideration of the Bill. I shall have to refresh my memory, but I think that that is what was said. Certainly it is what we shall try, to do.