HL Deb 10 December 1980 vol 415 cc721-2
The Earl of Lauderdale

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

The Question was as follows:

To ask Her Majesty's Government what prices—as an incentive to their investment—the British Gas Corporation have offered the Southern North Sea offshore gasfield operators, Conoco, Amoco and Shell to produce an extra 50 million cubic feet per day by the winter 1983–84.

The Minister of State, Department of Employment (The Earl of Gowrie)

My Lords, the prices offered by the British Gas Corporation are commercial and confidential between the corporation and the producers concerned.

The Earl of Lauderdale

My Lords, I thank my noble friend for that expected reply. May I ask him whether he is aware that our obligations under the EEC require transparency in gas prices? Also, would he not agree that transparency is in the interests of consumers who have a very proper interest in watching that they are not being overcharged?

The Earl of Gowrie

My Lords, I agree with my noble friend on both counts, but he will appreciate that one cannot be transparent in the middle of negotiation.

Lord Elwyn-Jones

My Lords, can the noble Earl explain how one can be transparent even about prices?

The Earl of Gowrie

My Lords, if I tangle on definitions with the noble and learned Lord, I know that I shall lose.

The Earl of Lauderdale

My Lords, may I ask my noble friend whether it is not the case that agreement has been reached between the BGC on the one hand, and producing companies on the other, to mount an investment of the order of, I think, £100 million or more to put in compressers and an extra pipeline? Therefore is it correct to suggest that negotiations are still in progress?

The Earl of Gowrie

My Lords, I do not think that the negotiations are completely finalised yet. That is why I must be cautious about what I say in public.

The Earl of Lauderdale

My Lords, may I ask just one other question? Can my noble friend say whether it is the case that when these negotiations began the companies in question were saying three years ago that, given a proper price, they could develop more gas, and would it not have been prudent—if I may put it in this way—for negotiations to be started before May of last year?

The Earl of Gowrie

My Lords, with hindsight, that is indeed possible. But since we came into office we have, as my noble friend knows, tried to accelerate proceedings as we all have a very great interest in the development of these valuable fields.

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