HC Deb 28 March 1994 vol 240 cc631-2
32. Mr. Riddick

To ask the Chancellor of the Duchy of Lancaster if he will make a statement about how the privatised companies have responded to the citizens charter initiative.

Mr. David Davis

The privatised utilities have an enviable record in implementing the principles of the citizens charter. Some of their many achievements include a fall in real prices for domestic customers of 6 per cent. for electricity, 21 per cent. for gas and 35 per cent. for British Telecom. In addition, they have raised many quality initiatives, and they are excellent flag carriers for the citizens charter movement.

Mr. Riddick

I thank my hon. Friend for his first-rate reply. Is he aware that privatisation has not only brought prices down but led to a dramatic improvement in the quality of service to customers? For example, public telephones now work, and it takes five days to have a telephone installed in one's home, instead of the six months of the bad old nationalised days. Is not it the case that privatisation has been a massive winner, not only for the Government but for consumers?

Mr. Davis

My hon. Friend is entirely right. He has long been an advocate of privatisation, freedom and competition in the interests of the consumer. The competition, quality and charter initiatives are all Government policies in which these are used to the full.

Mr. Enright

I thank the Chancellor for his letter of apology for telling me an untruth the last time he was at the Dispatch Box. I should like to pursue the matter, which concerns Yorkshire Water. Why on earth was Diane Scott sacked from the chair of Ofwat in Yorkshire—the only person to be sacked—with no justification whatsoever? Three people resigned from Ofwat in protest. Is not that scandalous, and does it not deserve whatever is the opposite of a citizens chartermark?

Mr. Davis

Frankly, that is a matter for the director-general of Ofwat. The activities of the regulator have worked very much in the public interest in the past decade. At this point, I cannot comment on the activities of an individual chairman.

Mr. Mans

In relation to the citizens charter initiative, will my hon. Friend take particular note of NORWEB, which has cut its electricity prices to such an extent that, despite the imposition of VAT, pensioners in my constituency of Wyre will pay less for electricity this year than they paid last year?

Mr. Davis

I am happy to commend the activities of NORWEB, which is not alone in this matter. In fact, most electricity boards have done the same and it is reflected in the fact that gas and electricity disconnections have been more than halved and are now at the lowest level ever. That is also a reflection of the charter initiative in the utilities.

Mr. Garrett

Surely the most obvious response of privatised industries has been to increase prices, boost their directors' salaries and fire their workers? Why does not the citizens charter apply to citizens who are employees?

Mr. Davis

I wonder where the hon. Gentleman has been for the past five minutes while I have been telling the House about the reduction in prices in most of the privatised utilities. He clearly has no idea what he is talking about.