HL Deb 17 March 1981 vol 418 cc652-3

2.43 p.m.

Lord Irving of Dartford

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, now that they have received the report of the Task Force on Energy, they will make a statement.

Lord Skelmersdale

My Lords, the Government have announced in another place measures on gas and electricity prices which will cost some £120 million in the coming financial year. These measures, which are additional to steps already taken, will provide considerable benefit particularly to large energy-intensive users. The NEDC Task Force report was taken fully into account in reaching these decisions.

Lord Irving of Dartford

My Lords, is the Minister aware that that is a very disappointing Answer? The Budget itself was a bitter blow to industry. Having got the task force to confirm that the price of energy to large users in British industry was much higher than to their foreign competitors in Europe and the United States, the Chancellor, in the very limited reliefs that he gave, then offset these reliefs in a very complete way by adding 20p to the derv tax. Is the noble Lord aware that that, with the tax on the road fund licence, will add £4 million to the cost of industries, such as the paper industry, which will inevitably lead to further mill closures and further loss of jobs?

Lord Skelmersdale

My Lords, what my right honourable friend the Chancellor of the Exchequer does in his Budget is a matter for him and not, I think, for either me or this House. However, on the earlier part of the noble Lord's supplementary, the NEDC Task Force report discovered that for a small but important group of energy-intensive consumers forming part of the remaining 5 per cent.—that is the 5 per cent. over and above the 95 per cent. of individual industrial customers who remain broadly in line with those on the Continent—the United Kingdom prices had moved significantly ahead of those being charged to some major competitors on the Continent by the end of 1980. Therefore, to that extent I would agree with the noble Lord.

The Earl of Lauderdale

My Lords, would my noble friend agree that the task force report was by no means unambiguous in confirming the complaints of British industry, and that the figures cited from European Commission sources rather support the Government as distinct from the industries' view?

Lord Skelmersdale

Yes, my Lords; I would agree with that.