§ Mr. Robert Banksasked the Secretary of State for Energy what response has been made by the Yorkshire electricity board to the report on the board by the Monopolies and Mergers Commission which was published last September; and if he will make a statement.
§ Mr. Peter WalkerI have now received the initial response of the Yorkshire electricity board to the report of the Monopolies and Mergers Commission published last September. I am placing copies of the board's response in the Library of the House. This gives the board's comments on the commission's findings and describes the actions it is taking to meet the commission's recommendations.
The commission found that the board is well managed and that its functions are carried out effectively and without waste. It was satisfied that in relation to matters falling within the commission's terms of reference the board is not pursuing any course of conduct which operates against the public interest. At the same time the commission put forward a number of recommendations for improving the board's efficiency and further reducing its costs, in particular that the board should treat as a minimum requirement for cost reduction the performance aim set for the industry as a whole. The commission also recommends that the board plays a more active role in setting strategy with a greater involvement of the board's part-time members.
I welcome the board's acceptance in its response that part-time members can play a greater role in setting objectives. This is an issue which is relevant to the
138Wfuture economics of fields not yet even discovered. Neither is it possible to provide projections for each year to 1990 of such values. Detailed liftings on a field by field basis are a commercial matter for BNOC. The percentages of total production lifted by BNOC — made up of participation and equity oil, royalty in kind, when taken, and commercial purchases—are shown in the table.
per cent. 1978 1979 1980 1981 1982 1983 15 60 59 57 58 57
§ Mr. Gordon Brownasked the Secretary of State for Energy what percentage of North sea oil production was refined in the United Kingdom before export in each year since 1979.
§ Mr. Buchanan-SmithThe United Kingdom's product exports cannot be attributed to any particular source of crude but the table below gives the most relevant available information.
industry as a whole and my noble Friend the Under-Secretary of State intends to offer guidance to the industry's part-time board members on their role.
The commission commented—in conclusion 17—on the board's relations with the Electricity Council. I continue to attach importance to the promotion of close working relationships within the industry. I am pleased to note the board's confirmation in its response of its continued commitment to that policy subject to the needs of its own responsibilities and statutory duties.
The commission's comments on appliance retailing by the board are particularly valuable. The board, as mentioned in its response, is co-operating in the detailed review of these activities being carried out by the Electricity Council on an industry-wide basis. The Electricity Council and boards will be adopting a revised form of accounts providing for full separation of the appliance retailing and contracting accounts from those for the board's main operation.
The commission made important recommendations concerning the board's manpower plan—in conclusion 3 and 33. The board has indicated in its response that action is being taken consistent with the commission's recommendations. I shall follow closely the board's progress in this respect.
The board has accepted the commission's recommendation that it should review the usefulness of its existing performance indicators. I understand that the Electricity Council will be publishing later this year a wide range of performance indicators for all boards. I expect the Yorkshire electricity board to take account of this work in its examination of its use of performance indicators. I will be particularly interested in the result of the board's 139W evaluation of the unit cost of maintenance in its different areas, on which the commission commented in its conclusion 26.
I expect to make a further statement towards the end of the year following receipt of the board's final response and report on actions taken.