§ 3. Mr. BellinghamTo ask the President of the Board of Trade what representations he has received since he announced his conclusions on the Monopolies and Mergers Commission inquiry into the supply of gas.
§ Mr. EggarThere has been a widespread welcome for the decision of my right hon. Friend the President of the Board of Trade to abolish the monopoly and introduce competition to supply all parts of the gas market from 1996.
§ Mr. BellinghamHas my hon. Friend noticed that over the past few years the real price of gas has fallen? Has he also noticed that Eastern Electricity has announced that it will reduce its prices to customers? Does he agree that that is extremely good news for all people who are concerned about VAT on household fuel and that that would not have happened had it not been for privatisation?
§ Mr. EggarI very much agree with my hon. Friend. In fact, gas prices have fallen in real terms since privatisation by 22 per cent. Even after the full implementation of the VAT decision, we shall see a real-terms decrease in bills for gas domestic consumers of about 7 per cent.—a considerable achievement. I welcome the decision by the electricity companies to increase competitiveness. Indeed, in my constituency, I shall be opening the headquarters of Eastern Electricity for the supply of gas to customers throughout its area. Competition is good for all consumers.
§ Mr. SalmondDoes the Minister accept that the reorganisation of British Gas in Scotland will cost more than 1,000 jobs? Does he accept that, in addition to the loss of jobs through the setting up of five new business units, if those units are not headquartered in Scotland, there will be a loss of management control? Why is it that in the British Gas company, as in the House, Scotland supplies the bulk of the energy, but has none of the power?
§ Mr. EggarWhy is it that the hon. Gentleman always looks backwards? Why does not he campaign for competitors to British Gas to come in and open up their headquarters in Scotland and in the north-east?
§ Mr. Nigel GriffithsDoes the Minister realise that millions of senior citizens and other low-income consumers deeply resent the standing charges on gas, on electricity and on telecoms? Does he appreciate their concerns and will he consider doing something about it?
§ Mr. EggarWhy has not the hon. Gentleman got to his feet to welcome the recent reduction in prices announced by BT and the subsequent price reductions by Mercury? Why has he not welcomed my announcement about the reductions in British Gas prices? Why has he not welcomed the fact that the decision of my right hon. Friend 270 to increase competition in the gas market may lead to competitors looking carefully at the level of standing charges?
§ Mr. Malcolm BruceDoes the Minister accept that Liberal Democrats very much welcome the Government's conversion to opening up the gas market to greater competition, which we called for at the time of the privatisation of gas. [Laughter.] Indeed we did. Is he aware of the statement by the Director General of Ofgas to the Select Committee on Trade and Industry in the past week that, as the differential in distributing gas does not vary by more than 2 per cent. anywhere in the United Kingdom, the introduction of competition should lead to further downward pressure on gas prices? Is he satisfied that under those circumstances, a relaxation of the price formula of British Gas is necessary?
§ Mr. EggarI am very satisfied with the decision made by the Director-General, as the hon. Gentleman would expect. The hon. Gentleman's selective quoting of the position that the Liberal Democrats may have taken at one time or another is becoming a laughing matter.