Mr Timothy Eggar: The external financing requirement of the nuclear electricity industry is shown in table 6A.5 of the "Financial Statement and Budget Report 1996–97".
Mr Timothy Eggar: The hon. Gentleman, as he knows, is completely misconstruing the figures. The important thing about nuclear privatisation is that it will transfer significant potential and actual liabilities into the private sector along with the assets that are being transferred into the private sector. Furthermore, the reorganisation of the nuclear generating industry will increase efficiency both in the...
Mr Timothy Eggar: I recognise the point that the hon. Gentleman makes, which is that, with the benefit of hindsight, I am sure that the Labour party would not have made the kind of commitment to expenditure on advanced gas-cooled reactors that it made. I am sure that the right hon. Member for Chesterfield (Mr. Benn) will apologise to his hon. Friend.
Mr Timothy Eggar: Clearly, there have already been very significant benefits for electricity consumers following privatisation. The average electricity consumer's bill this year is likely to be about £90 less than it was two years ago. Furthermore, flowing from the decision to privatise the British Energy part of the nuclear industry, there is likely to be a further significant reduction, in excess of 6 per...
Mr Timothy Eggar: The first part of the hon. Gentleman's question made it clear that he does not understand his brief. The second part of his question made it clear that he cannot even deliver the soundbite effectively.
Mr Timothy Eggar: Domestic gas consumers in Worcestershire will be able to benefit from competition in the supply of gas from a date to be determined in 1998. Experience in the first phase of competition in the south-west suggests that consumers may be offered average savings of 15 to 20 per cent. on their gas bills—and more in some cases.
Mr Timothy Eggar: I thank my hon.—and close—Friend for his opening comment. I assure him that I am doing my best to live up to the standards that he set. There is no doubt that domestic consumers will benefit immensely from the Gas Act 1995. The information that we have already received from the south-west trial area shows not only that consumers of average quantities of gas will benefit, but that...
Mr Timothy Eggar: Privatisation of the nuclear power generation industry is expected in the summer.
Mr Timothy Eggar: There was a reference in the manifesto to a review, and it was carried out. It concluded that we should move forward to privatise the nuclear industry. As for the outrageous comments towards the end of the hon. Gentleman's question, there are few things that I despise more than people who bring safety fears into the Chamber of this House.
Mr Timothy Eggar: The separation of British Gas's supply and transportation businesses is a requirement of schedule 5 to the Gas Act 1995. This provision was debated at length during the passage of the Bill. The Act received broad support. It has been widely agreed that separation is a necessary step in opening up competition in the domestic gas market and in ensuring that British Gas operates on the same...
Mr Timothy Eggar: The right hon. Lady asked me who loses. The answer is the Labour party and the right hon. Lady. The right hon. Lady voted against the Bill and in favour of a reasoned amendment that made it quite clear that the Bill would result in harm to the south-west. As she knows very well, the south-west will be the first to benefit from the effect of competition, with most south-west consumers being...
Mr Timothy Eggar: My hon. Friend is absolutely right. I am amazed that the Labour party should regard the matter as worthy of a private notice question. It is a commercial decision by a commercial company.
Mr Timothy Eggar: The British Gas board, in recommending the demerger, has addressed the issue under its Companies Act obligations. The Government are satisfied that the transfer scheme meets the necessary requirements under schedule 5 to the Gas Act 1995.
Mr Timothy Eggar: The decision to demerge is a matter for British Gas; none the less, I absolutely agree with my hon. Friend that the effect of increased competition, which is a direct result of Government policy, will be sharply to reduce prices to consumers and improve the quality of service.
Mr Timothy Eggar: The hon. Gentleman completely misunderstands the position. He particularly fails to understand that everyone who observes the sector or who is involved in it, including the chairman of British Gas and the Gas Consumers Council, recognises that the introduction of competition will result in lower prices to consumers. The old and new Labour parties do not believe in competition. They do not...
Mr Timothy Eggar: I have some difficulty in answering my hon. Friend's question. The Government's responsibility relates to the transfer scheme under schedule 5 to the 1995 Act. The responsibility regarding the demerger of British Gas has nothing to do with the Government, because that is a matter for the board of British Gas.
Mr Timothy Eggar: That is certainly not the view of the British Gas board. The Government have been satisfied about that, and have had regard to the requirements of schedule 5 to the 1995 Act. Of course, the hon. Gentleman may not be aware that the new entity, which is, at least temporarily, being called British Gas Energy, contains the significant assets of the Morecambe Bay north and the Morecambe Bay south...
Mr Timothy Eggar: My hon. Friend is absolutely right. There has not only been a 23 per cent. reduction, in real terms, in prices to domestic consumers, but there are significant further price reductions in the pipeline in the south-west of the United Kingdom. Most people anticipate that, as competition is extended beyond the south-west, there will be further price reductions in the rest of the United Kingdom....
Mr Timothy Eggar: The hon. Gentleman simply does not understand the nature of competition. There is no way in which British Gas will be able to raise its prices when its competitors are lowering prices. The future for consumers is bright because competition will produce significant price reductions and because of improvements in the quality of service. The hon. Gentleman should recognise that.
Mr Timothy Eggar: I absolutely agree with my hon. Friend. The fact is that, when faced with a choice between regulation or state ownership on the one hand and competition on the other, the Labour party always chooses regulation and nationalisation.
