§ Mr. Skeetasked the Secretary of State for Energy whether he is contemplating any special steps to ease the fuel problems of firms associated with the National Federation of Clay Industries in view of the fact that in these industries energy constitutes between 15 and 60 per cent. of total operational costs.
§ Mr. Norman LamontI am concerned at the problems facing many energy intensive industries during the recession. I believe that the clay industry is benefiting in particular from the ceiling on contract gas prices which British Gas is holding until December and which is providing interruptible gas at prices significantly below that of fuel oil.
§ Mr. Ray Powellasked the Secretary of State for Energy what effect he estimates the increased energy costs will have on the paper manufacturing industry.
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§ Mr. Eyre[pursuant to his reply, 7 July 1981]: Separate figures are not available for Bishop Auckland as bankruptcy cases in that area are among those dealt with by the Durham county court, whose numbers are given in the last column of the following table. The figures requested for the first six months of 1981 are not yet available.
§ Mr. Norman LamontEnergy costs are only one factor contributing to current difficulties in the paper and board industry and it is not possible to treat their effect in isolation. The paper and board industry has traditionally faced large disparities in energy prices with its main North American and Scandinavian competitors, but we are concerned that in this, and in other energy intensive sectors of industry, some firms have more recently been paying more for fuels than competitors on the Continent. The energy supply industries, in consultation with the Government, have introduced measures designed to alleviate this problem within the limits set by costs of production.