§ Mr. Dudley Smithasked the Secretary of State for Energy if, in view of the practice of all area gas boards of requiring substantial and rapidly increasing contributions from house builders on virtually every new residential development, he will bring forward legislation to enact the conclusions of the 1972 Monopolies and Mergers Commission report that the cost of investment in new infrastructure for the distribution of gas should, apart from exceptional circumstances, be recouped through the tariff.
§ Mr. Norman LamontThe 1972 Monopolies and Mergers Commission report found that it was already the gas industry's practice to ask for capital contributions in respect of new supplies only in cases of exceptional cost, and endorsed the industry's practice of recovering these contributions through the tariff. In recent years the low profitability of the domestic market and the increasing cost of connecting new supplies has made it more difficult for the industry to recover the capital charges through the tariff. I have no plans at present to legislate in this area, but we have raised the question of its charges for new connections with the British Gas Corporation.
§ Mr. Brocklebank-Fowlerasked the Secretary of State for Energy what consultation he proposes to have with the chairman of British Gas before he decides the Government's policy following the report of the Monopolies and Mergers Commission on the gas industry.
§ Mr. Norman LamontThe Government have, of course, already had the corporation's written comments for consideration and I shall be discussing these with the chairman.