§ Mr. Ashtonasked the Secretary of State for Energy what is his policy towards helping British industries to compete with those in Holland and other countries which enjoy cheap gas.
§ Mr. Norman Lamont[pursuant to his reply, 18 January 1980, c. 873]: Further information is as follows.
The Government endorse the long standing policy of the British Gas Corporation of selling gas to industry at a price broadly related at the time to that of the competing oil product. The alternative would be some form of arbitrary rationing and the risk of ever increasing supply shortages. It is also the general practice on the Continent to relate gas prices to oil prices for industrial consumers, and gas prices there are also rising sharply. However, international comparisons are complicated for various reasons; but there are also some long term contracts for gas supplies to industry, as in Britain, which were negotiated at very low prices.