Oral Answers to Questions — Gas Prices

– in the House of Commons at 12:00 am on 31 October 1949.

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Photo of Mr John Boyd-Carpenter Mr John Boyd-Carpenter , Kingston upon Thames 12:00, 31 October 1949

asked the Minister of Fuel and Power whether, in order to implement his undertaking to the consumers of gas that they would secure cheaper gas from a nationalised gas industry, he will make a statement as to the directions of a general character he proposes to issue to the Gas Council and area boards to stop further increases in the price of gas.

Photo of Mr Hugh Gaitskell Mr Hugh Gaitskell , Leeds South

The responsibility under the Gas Act for fixing gas prices rests with the area boards, who have a statutory obligation to cover their costs, taking one year with another. I do not, therefore, intend to issue any general directions on this matter.

Photo of Mr John Boyd-Carpenter Mr John Boyd-Carpenter , Kingston upon Thames

Does that answer mean that the right hon. Gentleman does not intend to implement the undertaking he gave on moving the Second Reading of the Gas Bill on 10th February, 1948?

Photo of Mr Hugh Gaitskell Mr Hugh Gaitskell , Leeds South

What I said on that occasion—and I have the words in front of me—was: We are all agreed that we need larger areas and greater integration, and this greater integration will achieve benefits for the consumer, because it will enable gas and the other products to be produced more efficiently"— and the hon. Member then interrupted me and said "And more cheaply?" replied: Yes Sir. It is the same thing. I understood that hon. Members opposite agreed that these larger areas were desirable."—[OFFICIAL REPORT, 10th February, 1948; Vol. 447, c. 224.] It is perfectly plain from that extract that what I said was that it would be cheaper under nationalisation than it would be under private enterprise, and I still hold that to be the ease.

Photo of Mr Oliver Crosthwaite-Eyre Mr Oliver Crosthwaite-Eyre , New Forest and Christchurch

If the Minister makes that statement, how can he reconcile the assertion that it would be cheaper under nationalisation with the fact that it has gone up in price since?

Photo of Mr Hugh Gaitskell Mr Hugh Gaitskell , Leeds South

I should have thought it was perfectly obvious, even to the hon. and gallant Gentleman, that when the area boards put up the price of gas almost immediately after vesting date, it must have been because of the increased costs incurred before vesting date.

Photo of Mr Ernest Davies Mr Ernest Davies , Enfield

Would not the Minister agree that in a very large number of cases the gas companies had refrained from raising their prices, in spite of increased costs, because of the pending nationalisation?

Photo of Mr Hugh Gaitskell Mr Hugh Gaitskell , Leeds South

That is perfectly true.

Photo of Mr John Boyd-Carpenter Mr John Boyd-Carpenter , Kingston upon Thames

Can the right hon. Gentleman reconcile his supplementary answers with any assertion that he was frank with this House when, on 10th February, 1948, he told the House that nationalisation would mean cheaper production.

Photo of Mr Hugh Gaitskell Mr Hugh Gaitskell , Leeds South

I have already answered that question.

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