HC Deb 18 October 1989 vol 158 cc131-2
5. Mr. Darling

To ask the Secretary of State for Scotland what representations he has received in respect of electricity prices from industrial and consumer interests in Scotland.

Mr. Lang

My right hon. and learned Friend receives representations from time to time on a range of matters relating to electricity prices applying to industrial and domestic consumers in Scotland. The setting of electricity prices for all categories of consumers is, of course, the responsibility of the electricity boards.

Mr. Darling

Is the Minister aware that on top of the inevitable price rises that will follow the sell-off of the electricity industry, pensioners in particular are being hit by the very high level of standing charges imposed on electricity users? Will he join in the campaign to have those standing charges abolished by the private companies, and will he remind those speculators who clamour for an early sell-off of the industry that they will be seeking to profit from the financial misery suffered by old people who live in a country that has 50 per cent. over-capacity in electricity yet cannot afford to heat their homes in many instances?

Mr. Lang

As under the last Labour Government, standing charges are a matter for the electricity boards and not for the Government. I do not think that the Conservative party needs any lessons from the Opposition on prices, given that while electricity prices have fallen in real terms over the past seven years, under the last Labour Government they increased by 170 per cent. in cash terms and by 20 per cent. in real terms.

Mr. Buchanan-Smith

Will my hon. Friend acknow-ledge that the new arrangements for the industry offer a real opportunity for greater efficiency? Is he aware that those working in the industry want to get ahead with the new arrangements? When will the industry be floated?

Mr. Lang

I entirely agree with my right hon. Friend about the desirability of floating the industry and putting it into private hands. The timing is still to be decided, but the decision will be taken in the best interests of the industry, and it remains our firm intention to achieve privatisation within the lifetime of this Parliament.

Mr. Wilson

Does the Minister accept that the House was seriously misled by Ministers about the likely decommissioning costs of Magnox stations, including those of the one in my constituency, which are to be borne by the taxpayer in order to gild the unwanted privatisation lily? In the light of the leaked information that Magnox decommissioning is likely to cost £6.6 billion of taxpayers' money, can he throw fresh light on the likely decommissioning costs at Hunterston A and under whose auspices they will be incurred?

Given the privatisation shambles, when will the Scottish boards be hawked in the market-place? Best of all, can the Minister assure us that that will not be done this side of a general election?

Mr. Lang

The hon. Gentleman would not expect me to comment on his leaked speculation, but I shall reassure him that I have no reason to believe that the House was misled over this matter.