HC Deb 02 August 1966 vol 733 cc56-7W
11. Dr. Gray

asked the Minister of Power whether he will issue a general direction to the Gas Council to ensure that when natural gas becomes available to domestic users regional savings are passed on in regional costs.

Dr. Bray

No. In any case regional savings in the cost of transmitting bulk supplies to Boards is only one of the elements in the cost of supply and on present information not likely to be a major one.

Mr. Alison

asked the Minister of Power upon what information regarding the production costs to companies drilling in the North Sea for natural gas, he will base his conclusions on the price which the Gas Council should pay to such companies for such gas as is extracted.

Mr. Marsh

If I am called upon to exercise my functions under Section 9 of the Continental Shelf Act, I shall base my conclusions on all relevant information, including estimated costs of exploration and production in the North Sea and a fair rate of return on the licensees investments, and the costs of distribution and marketing.

Mr. Alison

asked the Minister of Power what is the quantity of North Sea gas under discussion between the Gas Council and Shell/Esso.

Mr. Marsh

I would refer the hon. Member to the reply given to him on 1st July, 1966.

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