HC Deb 27 June 1985 vol 81 cc470-1W
Mr. Phillip Oppenheim

asked the Secretary of State for Energy if he will make it his policy, when setting financial objectives for the nationalised industries for which he is responsible, to specify that their retail outlets should collectively not make a loss; and if he will make a statement.

Mr. Buchanan-Smith

Two of the industries for which my right hon. Friend the Secretary of State is responsible have retail outlets: the electricity supply industry and the British Gas Corporation.

In respect of electricity, my right hon. Friend announced on 26 July 1984, at column 757, that agreement had been reached with the Electricity Council on a package of measures designed to demonstrate that the industry is trading fairly and profitably in the appliance retailing and contracting activities. These measures include the provision that each area board will aim to achieve at least an average 2 per cent. return on current cost net assets employed in these activities in the period 1984–85 to 1987–88. In aggregate, the boards have a target of an average 5 per cent. return over the period. The latest published accounts show that in aggregate the industry's appliance retailing business made a profit in 1983–84 with a return of 6.9 per cent. on average current cost net assets.

In respect of gas, the Government have agreed a financial target with the British Gas Corporation which relates to its business as a whole; there is no separate target for appliance retailing. However, the corporation's annual report and accounts show separately the results of that element of the business. The latest published accounts are for 1983–84 and show that appliance trading made a profit.

Production of crude oil, natural gas liquids and other mineral oils by major world producers
Units: million tonnes
Country 1982 production 1983 production 1984 production Percentage increase 1982 to 1984 1985 forecast production
Union of Soviet Socialist Republics 612 616 613 — n.a.
United States of America 478 479 *485 2 *490
Saudi Arabia 328 256 230 -30 n.a.
Mexico 149 147 150 — n.a.
Iran 120 122 109 -9 n.a.
United Kingdom 103 115 126 22 120–135
China 102 106 115 13 n.a.
Venezuela 101 97 98 -4 n.a.
Sources: BP Statistical Review of World Energy, June 1985; IEA Energy Statistics 1982–83; US Energy Information Administration Short Term Energy Outlook, April 1985; Department of Energy.
*Circa.