HL Deb 27 June 1974 vol 352 cc1636-938

3.18 p.m.

BARONESS BURTON OF COVENTRY

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 whether, when a nationalised industry advertises and sells goods by holding out promises which receive publicity but are not kept, such a breach of good faith is subject to prosecution under the variety of consumer protection measures now in existence; and what action should be taken by aggrieved consumers.

TILE MINISTER OF STATE, DEPARTMENT OF ENERGY (LORD BALOGH)

My Lords, nationalised industries are, like other commercial enterprises, subject to a wide range of consumer protection measures. Aggrieved consumers can take up complaints with the consumer councils for the industries, or initiate legal proceedings if they wish. If by any chance my noble friend has in mind the question of off-peak electricity tariffs, I would refer her to the answer given by my noble friend Lady Birk on June 17, the Statement in another place by my right honourable friend the Secretary of State for Energy on June 20, and my own Answer to her Question on June 25.

BARONESS BURTON OF COVENTRY

My Lords, while being grateful for a much longer Answer this time than I received before, I wonder whether I might ask my noble friend, in also referring him to the Answer which my noble friend Lady Birk gave me on June 17, whether we were told that the Director General of Fair Trading could himself have made a reference on this matter to the Consumer Protection Advisory Committee if he had been asked by the Minister to do so, and that alternatively the Minister himself could have asked for a report?

Secondly, does my noble friend recall that I was also told that the Consultative Councils on this occasion made no complaint and had nothing to say about this particular advertisement and this particular matter, and therefore it would not have been the slightest use appealing to them?

LORD BALOGH

My Lords, as to the first supplementary question of my noble friend Lady Burton of Coventry, I would say that the Council's advertisements were fully justified when they were made. They gave no guarantee that the situation would never change. As to the Consumer Council, it seems to me that if any complaints had been received, they would have been transmitted. My right honourable friend the Secretary of State for Energy announced in another place on June 20 that he had asked the Chairman of the Electricity Council to examine urgently the giving of relief to domestic off-peak users. He said his aim would be to restore the differential so that the charge per unit for off-peak electricity would once again be a 50 per cent. charge per unit. I hope my noble friend will wait for the next Statement of my right honour. able friend the Secretary of State on this matter.

BARONESS BURTON OF COVENTRY

My Lords, I thank the noble Lord for that reply. As he knows, I am awaiting a letter from him on that matter, which I hope will arrive fairly soon. But may I just make this point which is really a serious one so far as the consumers are concerned. Does the noble Lord realise that the public thinks that a promise was made of a half-price charge for electricity? This is not a question of merits, but a promise was made. Does the noble Lord further realise that the Minister himself now thinks this, because he has said his aim will be to restore the 50 per cent. charge? It is this matter which is concerning us all.

LORD BALOGH

My Lords, I do not think that the industry has ever made a promise that there will be no change in the relationship between the full tariff and the off-peak tariff. If my noble friend would give me some examples, I can assure her we shall investigate them. But so long as the present situation exists I do beg her to await the next Statement of the Secretary of State.

LORD MAYBRAY-KING

My Lords, in view of the representations made from all sides of the House on the question of night storage heaters, will the noble Lord accept and convey to the Government our congratulations that they have accepted the old principle of the 50 per cent. rate?

LORD BALOGH

My Lords, I shall certainly convey those sentiments to my right honourable friend.

LORD INGLEWOOD

My Lords, may I ask whether the first Answer of the noble Lord applies also to nationalised industries selling services, such as the Post Office, whose advertising with regard to the delivery of mail is very far from being fulfilled?

LORD BALOGH

My Lords, I should have thought that that is rather wide of the Question. If the noble Lord, Lord Inglewood, puts down a Question relating to the Post Office, I hope someone will answer it.

LORD PEDDIE

My Lords, arising out of my noble friend's reference to previous Questions on this subject, may I ask him once again the question I put on a previous occasion, as to whether or not a service has been provided on a contractual basis to the user? If that be not so, may I further ask him whether or not there has been any consideration given to the adoption of such services on a contractual basis?

LORD BALOGH

My Lords, I do not think there was any contract on the 50 per cent. charge, but I shall call the attention of my right honourable friend to what the noble Lord, Lord Peddie, has said. We will answer him in writing.