§ Mr. Richardasked the Minister of Power what action he has taken regarding the dispute between Berkshire County Council and Abingdon Borough Council and the Southern Gas Board over the Board's proposal to build a large gasholder in Abingdon; and if he will make a statement.
§ Mr. FreesonFollowing failure to reach agreement earlier this year between the Southern Gas Board and the local authorities, at the request of my right hon. Friend, I visited Abingdon on 26th April to meet both sides. At the meeting I chaired that day, it was agreed that further discussions should be held on the basis of a detailed breakdown of the Gas Board's estimate of the additional cost of at least £250,000 for installing a high pressure storage system. On 22nd May I chaired a further meeting of local authority and Gas Board representatives to discuss the 281W estimated additional costs but as no agreement on the sharing of these could be reached at the meeting, I subsequently made a further proposal that the additional capital costs of a diesel high pressure system; the additional erection costs; the charge for the cancellation of the contract for the low pressure holder; and the additional running costs, calculated over 10 years, should be shared equally. The local authorities' and the Board would thus pay a total of £104,500 each, plus up to £43,500 each for cancellation and erection charges (since proposed to be referred to the Lands Tribunal for arbitration). The Gas Board, continuing to seek a reduction in cost, now propose to use an electric instead of diesel compressor, thus reducing the amount by £15,000 on both sides. In my view this proposal of equal sharing, which was accepted by the Southern Gas Board at the time, represents a reasonable allocation of the burden between the rate-payers of Abingdon and Berkshire who benefit most from the amenity provided and who need the gas, and the general body of consumers in the Southern Board's area. It has now been accepted by the Berkshire County Council.