§ The Earl of CromartieMy 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 it is true that any profits made by the North of Scotland Hydro-electric Board are paid into the Treasury: and, if so, whether they would consider using this money for the further development of hydro-electric power in the Highlands.
§ The Minister of State, Scottish Office (Lord Gray of Contin)My Lords, the North of Scotland Hydroelectric Board retains its profits to finance its capital investment programme and to reduce its debt. It is up to the board to make proposals for further investment in hydro schemes where these can be economically justified and the Government will consider such proposals carefully.
§ The Earl of CromartieMy Lords, I thank my noble friend the Minister. I am delighted to see that somebody knows the part of the country I am talking about. I should like to ask my noble friend another question. Many years ago before the first world war my father started the first hydro-electric scheme in Britain for the benefit of the Highlands, so that they would have cheap power. This was carried on, but he had to give it to the Scottish Power Company and it was carried on by them, as it was when the first hydro-electric board was formed, when that great man Tom Johnson was Secretary of State. Then, quite suddenly, without any particular reason, all this was altered. It was taken away. One thing that was also taken away was the headquarters which were supposed to be always in the Highlands. They are now in Edinburgh. Apart from that—
§ The Earl of CromartieMy Lords, the headquarters are not in the Highlands, and are well out of the hydroelectric area. What is more, the Highlands do not get the benefit which they were supposed by all the founders to get. I should like my noble friend to give me some answer to this, if he would.
§ Lord Gray of ContinMy Lords, what a pleasure it is to see my old friend Lord Cromartie with us and to have a Question on the North of Scotland Hydroelectric Board, which I know holds a place of such affection for him. The Government are, of course, constantly faced with competing claims for scarce resources and, given the constraints on public 1134 expenditure, the development of run-of-the-river hydro schemes was not high enough on the north board's own list of priorities to justify inclusion in its capital investment allocation. I can assure my noble friend, however, that should the North of Scotland Hydro-electric Board, having satisfied itself with an up-to-date evaluation of the present situation, again decide that it might consider going ahead with such a scheme, the Government will consider it very carefully at that time.
§ Lord Mackie of BenshieMy Lords, the Minister used the phrase "reduce its debt" with regard to where the profits were going. Can he tell me to whom this debt is owed, and what proportion of the profits go towards this as against capital development?
§ Lord Gray of ContinMy Lords, I cannot give the noble Lord that anwer without notice, but obviously the debt is a borrowing debt and the proportion of profits which goes towards the reduction of borrowing debt must in the long term be in the best interests of those who are within the north board's area.
§ Lord Mackie of BenshieMy Lords, does it borrow from the Treasury?
§ Lord Gray of ContinMy Lords, originally the debt would have been a Treasury debt.
§ Lord Williams of ElvelMy Lords, will the noble Lord the Minister tell us whether it is the Government's intention to privatise the North of Scotland Hydro-electric Board?
§ Lord Gray of ContinMy Lords, there are no plans to do so at the moment.