HL Deb 14 December 1965 vol 271 cc596-8

2.42 p.m.

LORD ST. HELENS

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government what negotiations, if any, have taken place between the Government and the Electricity Council relating to the marginal expansion plans of the Electricity Council.]

LORD STONHAM

My Lords, the usual annual review of the investment programmes of the Central Electricity Generating Board and the Area Electricity Boards has been carried out in consultation with the Electricity Council. No reductions have been made in the capital expenditure proposed for power stations and associated equipment due to be commissioned up to 1970. A final decision on the amount of new generating plant to be ordered next year, for commissioning in 1971, will be taken during the next year's review in the light of current forecasts of the growth of demand. The Government have approved the expenditure the Area Boards proposed for 1966–67, and their expenditure in later years will he subject to successive annual reviews in the normal way. The total expenditure approved for the Electricity Boards (including the Generating Board) in England and Wales for 1966–67 is £700 million, the highest figure ever.

LORD ST. HELENS

My Lords, while thanking the Minister for that reply, may I ask whether the Government would not agree that, in view of the hardship caused by recent power cuts, it is regrettable that there should have been rumours about a cut-back of investment in the electricity industry? Will the Government give an assurance that no such cut-back is anticipated in the near future?

LORD STONHAM

My Lords, I thought I had made it clear in my Answer that the figure approved has been, or will be, the highest figure ever. In fact, I may mention to the noble Lord that I was unable to understand what he meant in his Question by the "marginal" expansion plans of the Electricity Council; and I am not really aware of the substance behind the supplementary questions he is now putting to me.

LORD ST. HELENS

My Lords, I refer to an article in the Sunday Times on November 7, which referred to a possible cut-back in the electricity industry.

LORD HAWKE

My Lords, would not Her Majesty's Government agree that the vast expenditures on new power-producing plant will be to some extent wasted unless they improve the load factor; and that they can do that only by allowing the electricity industry to advertise its off-peak heaters, in spite of the fact that the gas industry should not be allowed to do so.

LORD STONHAM

My Lords, as I said to the noble Lord, Lord Hawke, in reply to a similar question last week, that is a very sound suggestion, of which the Government and the Electricity Council will, I am sure, take full account. With regard to the second supplementary put by the noble Lord, Lord St. Helens, I had surmised that his Question arose from the report to which he referred, but that did not enlighten me because I took the description to be due to injudicious sub-editing. The position is that there has been no cut in the year I mentioned. After a discussion with my right honourable friend the Chancellor of the Exchequer in August, the Electricity Boards were able to reduce their estimated expenditure in the current year 1965/66 by some £l7 million. But that did not affect by one penny or one kilowatt the recent power cuts. It was done by the reduction of stocks, and such things.

LORD CARRINGTON

My Lords, may I ask how long it will take for the Government to take account of my noble friend's excellent suggestion? Will it be before the end of the winter?

LORD STONHAM

My Lords, may I tell the noble Leader of the Opposition that this is no new suggestion. His noble friend is quite right to keep on putting it forward, but this is a matter of which the Electricity Council have had cognisance for a long time, and it is a policy which has been proceeding.

LORD CARRINGTON

Then I do not understand the answer of the noble Lord. Are they or are they not going to take into account my noble friend's suggestion? If they have already done so, what is the answer?

LORD STONHAM

My Lords, the answer is that the question of the noble Lord, Lord Hawke, like his question the previous week, concerned advertising, which, as the noble Lord will be aware, there has been an agreement to reduce for three months. The long-term policy of encouraging storage heating is, in fact, continuing. It was only a question of advertising.

LORD CARRINGTON

Is the answer, "Yes", or "No"?

LORD STONHAM

That is something like, "Have you ceased to beat your wife?" The answer is, Yes, we are continuing with the policy of expanding the use of storage heaters.

BARONESS HORSBRUGH

My Lords, would the noble Lord say whether advertising of storage heating is now allowed, and why it was ever stopped?

LORD STONHAM

My Lords, the point is that not all advertising has ceased. There has been a sensible arrangement that some parts of the advertising, both of Electricity and of Gas boards, shall not be proceeded with during the current three months.