§ Mr. Hugh D. Brown
asked the Secretary of State for Scotland whether he is satisfied that other consumers of the North of Scotland Hydro-Electric Board are not being required to meet any losses incurred by the board in supplying electricity to the British Aluminium Company's smelter at Invergordon.365W
§ Mr. William Ross
Yes. The payments by the company were based principally on the expected cost of generation at the South of Scotland Board's Hunterston B nuclear station and were arranged so that deficits incurred by the board in the early part of the 30-year period covered by the special arrangements would be extinguished by gains in the latter part of the period. Although no final calculations can yet be made it now seems improbable that the payments from the company will fully cover these initial deficits. I have, therefore, assured the board that I will, if necessary. seek statutory powers to make payments to the board towards meeting this deficit. Meanwhile the accumulated deficits amounting at 31st March 1974 to £6.9 million are being dealt with as explained in note 12 to the 1972–73 accounts of the North of Scotland Board, so that no consequential burden is falling on the board's other consumers.