HL Deb 02 July 1985 vol 465 cc1044-5

2.51 p.m.

Lord Bruce of Donington

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

The Question was as follows:

To ask Her Majesty's Government whether in order to protect the consumer interest in the event of a privately-owned monopoly being established by the foreshadowed privatisation of the gas industry, they will refer the question of the establishment and functions of a regulatory body to a Joint Select Committee of both Houses of Parliament in good time before the formulation of the appropriate privatisation Bill.

The Minister of State, Scottish Office (Lord Gray of Contin)

My Lords, detailed proposals for the regulatory regime are currently under consideration. It is the Government's firm intention that the regulatory arrangements to be established will adequately protect the consumer as regards prices and the terms and conditions of supply. Both Houses of Parliament will have ample opportunity to discuss those proposals when the legislation comes forward.

Lord Bruce of Donington

My Lords, in view of the difficulties that arose in connection with the establishment of Oftel, and in view of the fact that, very largely, it is not effective, does the noble Lord not agree that it would be far better if, before the Bill itself is formulated, a committee is appointed in order to investigate such vital questions as tariff fixing; the formula for tariff regulation; the extent of the application of the tariff formula itself, when established, to bulk and domestic users; and a whole series of associated matters which ought to be discussed as it is proposed to establish a private monopoly?

Lord Gray of Contin

My Lords, as my right honourable friend explained in another place, the Government's proposals are under consideration. It is too early to say when we will be in a position to publish them. I can reiterate the assurance which I gave the noble Lord that there will be ample opportunity afforded to both Houses of Parliament to discuss them in due course. It would be a mistake to pre-empt what the legislation might contain.

The Earl of Lauderdale

My Lords, does my noble friend not agree that the noble Lord opposite is proposing a constitutional change in that a Select Committee of both Houses would, apparently, review legislation before it is laid?

Lord Gray of Contin

My Lords, my noble friend is correct. I hope that I have been able adequately to explain to the noble Lord who tabled this Question that it is the intention of the Government to have full opportunity for discussion in both Houses.

Baroness Burton of Coventry

My Lords, is the noble Lord aware that this is the first time we have heard from the Government side of the House that there will be any chance of discussion on matters affecting consumers, particularly consumer councils and the nationalised industries? Can the noble Lord say whether the discussions to which he refers will apply only to gas or whether they will apply to other industries where the councils are concerned?

Lord Gray of Contin

My Lords, the Question which I am answering refers to gas, and I fear that I might be out of order, particularly with my noble friend the Chief Whip, if I included other matters in this Question.

Baroness Burton of Coventry

My Lords, will the noble Lord use his influence to endeavour to persuade his noble friend the Chief Whip that there are other industries besides the gas industry which should also be considered?

Lord Gray of Contin

My Lords, the noble Baroness is always very charming in the way that she puts her questions. I shall make sure that her views are conveyed to my noble friend.

Lord Bruce of Donington

My Lords, in view of the assurances that the noble Lord has been kind enough to give, will he give the House the additional assurance that the Government will grant every facility to the all-party Select Committee that is already proposing to look at this matter and, if the press reports are accurate, will proceed to take evidence in September?

Lord Gray of Contin

No, my Lords, I am afraid I cannot give the noble Lord an assurance of that sort. I am sure he would not really expect me to do so. All I can do is assure him that I shall convey his remarks to my right honourable friend.

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