HC Deb 10 May 1995 vol 259 cc730-1
2. Mr. Martyn Jones

To ask the President of the Board of Trade what discussions he has held with British Gas about levels of consumer satisfaction. [21943]

The Parliamentary Under-Secretary of State for Industry and Energy (Mr. Richard Page)

Overall levels of consumer satisfaction are a matter for British Gas. Thirty-nine specific standards of service are regulated by the Office of Gas Supply.

Mr. Jones

Does the Under-Secretary think that British Gas's blind, elderly and disabled customers are happy with the service that they are getting, when the home advisory service which British Gas has provided up to now is being cut by 50 per cent.? Does he think that those customers will be satisfied with the fact that the British Gas chairman is giving himself a 75 per cent. pay rise?

Mr. Page

British Gas is not going to cut its services to the elderly and the blind, and it is in fact spending £170 million a year on those services. It also provides a gas care register. Ofgas has agreed some standards of service with British Gas, and British Gas has failed in three areas of service. For example, Ofgas wanted a level of 100 per cent. for the reading of meters for customers moving home, but British Gas has reached only 98.9 per cent. A level of 100 per cent. was demanded for energy efficiency, but British Gas is getting only 99.8 per cent. British Gas is addressing those shortcomings.

Mr. Nigel Griffiths

In view of the soaring number of complaints, will the Under-Secretary join the Pensions Investments Research Consultants—an organisation that advises pension funds that hold £70,000 million in their funds—in condemning the soaring boardroom pay-outs at British Gas, which are in breach of the Institute of Directors' guidelines on best practice? Will the hon. Gentleman advise shareholders at the British Gas annual general meeting on 31 May to support resolution 13 on controlling the pay-outs and perks in the boardroom, as I shall be doing at that meeting? If not, why not?

Mr. Page

The Government have made our position clear on the pay of the directors of British Gas. We will await the report of the Greenbury committee. I hope that the pensioners connected with the PIRC are happy with the 21 per cent. reduction in gas prices since privatisation.

Mr. Lidington

Does my hon. Friend agree that gas consumers have every right to be pleased not only with the reduction in gas prices since privatisation but with the healthy profits being made by British Gas, taxation on which goes to help finance the improvements in public services to which the Government are committed?

Mr. Page

My hon. Friend makes a powerful point. Last year, British Gas contributed £504 million to the Treasury. That was a valuable contribution, and British Gas should be congratulated on that.