§ Mr. Needham
asked the Secretary of State for. Energy what discussions he has had with the chairman of the British Gas Corporation about the report by Deloitte, Haskins and Sells on the corporation's efficiency.
§ Mr. Peter Walker
1. Deloitte's report was placed in the Library of the House on 23 August 1983. I have now received the British Gas Corporation's response to the report's recommendations, and I am placing copies of this response in the Library of the House.
2. The Government welcome the publication of Deloitte's report, which was jointly commissioned by my predecessor and the corporation. The report both identifies the corporation's successes and achievements over the past decade, and sets out a number of recommendations which could lead to further improvements in efficiency and substantial cost savings.
3. The Government agree with the consultant's overall conclusion that BGC has an impressive record over the last 10 years in the efficient management of the gas industry, but that the time is now opportune for the corporation to re-assess its priorities in the light of present uncertainties in the total market for gas and changes to its statutory position.3W
4. Deloitte's major recommendations relate to the formulation of pricing policy, the need for re-evaluation of the present organisation structure, and the scope for cost savings in regional operating costs.