HC Deb 06 December 1995 vol 268 cc351-2
2. Mr. Mullin

To ask the President of the Board of Trade what estimate he has for the length of time that proven reserves of natural gas will last; and if he will make a statement. [2600]

The Minister for Small Business, Industry and Energy (Mr. Richard Page)

Reserves which have been fully tested and proven would last 10 years at current rates of production. Other UK reserves and known geological potential could raise this to some 58 years.

Mr. Mullin

No doubt more gas will be discovered, but with the benefit of hindsight does the Minister not consider it folly to have collapsed a large part of the coal industry, to have encouraged gas-fired power stations and to have made us dependent on a fuel of which there are only 10 years' of proven reserves left?

Mr. Page

I thank the hon. Gentleman for providing me with two golden opportunities. First, I must point to the success of the gas industry. The hon. Gentleman may remember that, back in 1975, all the pundits and experts were saying that this would be the year when all the supplies would run out. As I have said, however, proven resources will last for at least 10 years, while others could potentially last for up to 58 years. Looking at the hon. Gentleman, I can say that that will see him out without any difficulty whatsoever.

Secondly, the hon. Gentleman's question enables me to say that production levels in the coal industry—now that the industry has moved into other hands—are up by some 9 per cent. That is a huge tribute to privatisation. I thank the hon. Gentleman very much for allowing me to state that.

Mr. Battle

Who does the Minister hold responsible for the locked-in, take-or-pay, long-term North sea gas contracts? Should not the Government be acting now to sort out the mess before the new Gas Act comes into force and the whole gas industry is faced with full-blown competition?

Mr. Page

I should point out that the contracts were entered into when the industry was in its nationalised state. The Government have made it clear that some modification in British Gas's old contracts is inevitable, and we have called for serious and detailed discussions.