§ Mr. O'Halloranasked the Secretary of State for Northern Ireland if he is yet in a position to make a statement about financial assistance to the gas industry, pending a decision on its future.
§ Mr. ConcannonThe Government has decided to pay the gas undertakings an amount equal to their revenue deficits for the years ended 31st March 1977 and 31st March 1978. The deficits are estimated at about £3,000,000 for the two-year period.
Payment will be conditional on the undertakings in deficit increasing their tariffs by up to 10 per cent. in order to restore the relativity with electricity which existed before domestic electricity prices were raised in June last year. While I regret the need for this, it will still leave the majority of consumers able to buy gas at less than cost price pending a decision on the longer-term future of the industry. It does not worsen their position as it was last year in relation to electricity or, for that matter, coal.
The Department of Commerce will write to each gas undertaking about the detailed arrangements.