House Of Commons
Monday 23 February 1987
The House met at half-past Two o'clock
Prayers
[MR. SPEAKER in the Chair]
Oral Answers To Questions
Transport
European Air Services
1.
asked the Secretary of State for Transport what progress has been made, following discussions with his French counterpart, to encourage the further liberalisation of European air services.
I met M. Douffiagues on 4 February and exchanged ideas for significantly more liberal bilateral air service arrangements. At last week's informal Council of Ministers further progress was made. We made it clear again that we would only be party to an agreement which provided for proper competition between airlines.
I congratulate my hon. Friend on the robust action that he is taking, particularly in view of the substantial vested interest. Has progress been made on the introduction of cheaper off-peak fares?
I thank my hon. Friend for his question. Yes, most of our European partners now seem to accept the principle that airlines should be able to introduce low off-peak fares. The British Government are determined that such fares should not be strangled by absurdly restrictive restraints such as the Saturday night or six-day concession.
Will the Minister take it from me that we wish him well in his endeavours, but that he needs an awful lot of luck to be successful?
I thank the hon. Gentleman for his kind words of encouragement.
Is my hon. Friend aware of the difficulties concerning the city of Strasbourg, which is the centre for the Council of Europe and the European Parliament, and, in particular, the apparent attempt by the French to maintain a near monopoly there? Will he press for an improvement in communications with Strasbourg and more allowance for genuine competition?
My hon. Friend is absolutely right in stressing the role of competition in providing better services to Strasbourg, and indeed, elsewhere in Europe. In view of what my hon. Friend said, my right hon Friend will certainly press even stronger for more competition in air services with France and, indeed, with other European countries.
What has the Minister actually done, which was the point of the question? Whatever he has done, why were we deprived of knowing about it? He failed to hold a press conference at the end of his six-month presidency, which is surely unprecedented with Aviation Ministers.
The hon. Gentleman has got it wrong again. Of course we held a press conference. The reason was to stress that we have almost total unanimity on access and capacity. The only matter on which we shall have further discussions is fares, and we are getting somewhere on that as well.
Channel Tunnel
2.
asked the Secretary of State for Transport what information he has been given on the levels of employment in Scotland and the north of England which will result from the construction of the Channel tunnel.
Eurotunnel's contractors, Trans-Manche Link, have already placed orders worth £6·4 million for the first two tunnel-boring machines with James Howden & Co. in Glasgow, and £1·2 million for locomotives with Hunslett Engineering Co. in Yorkshire. Letters of intent placed with these two companies total a further £8·5 million. In all, orders for equipment and materials for Eurotunnel are likely to account for some 7,000 to 8,000 jobs, and orders for British Rail another 2,000 to 2,500 jobs, outside the south-east during the construction period.
Undoubtedly that is good news for the north, but what will be the effect on jobs in the north and in Scotland after the tunnel is opened?
I thank my hon. Friend for his first remark. Of course the effect will depend on the degree to which British manufacturing and commercial industry utilise the tremendous freight advantages in being able to move goods from the United Kingdom into Europe, where about 62 per cent. of our export trade goes. Clearly, for the first time, they will have that unique freight advantage, and I trust that they will benefit from it.
I also welcome the Minister's announcement, but will he bear in mind the reservations that have been expressed by many borough councils, for example in the north-west, including my own in Oldham, and their concern that the rail network should be strengthened sufficiently to make it economic to situate industry in that area and thus gain the advantage that will be forthcoming from the rail tunnel?
Of course, I shall take note of the hon. Gentleman's point. He rightly draws attention to the opportunities for companies connected with our goods railway system. However, I know from the hon. Gentleman's point that he will be conscious of the enormous importance to British Rail, and to the northwest and other areas north of Birmingham, of the Channel tunnel development.
Does the Secretary of State accept that many of us who are in favour of the tunnel on social and political grounds nevertheless have the same reservations about the problems for the north if the development is concentrated on the south-east? Does the right hon. Gentleman further accept that it is important for through running from the north on railway lines across London to be introduced at the same time as the tunnel is opened, rather than for the tunnel to commence operations without through-running trains?
I recognise the great importance of through trains. I recognise the hon. Gentleman's point. I am delighted that he reaffirms his party's support for the Channel tunnel. I hope that he will remember what I said in answer to the question, that the jobs in relation to equipment and materials— all the jobs to which I referred—will be outside the south-east. They will be in the north, where our heavy manufacturing and industrial base is.
With regard to Scotland's involvement, the Scottish Office is to assist financially with the study of the concept of the EuroWest Port. Is it the Secretary of State's intention also to provide some financial assistance for the idea of a EuroWest Port based on the Clyde?
I shall talk to my hon. Friends in the Scottish Office about that point, but we have made it clear time after time that, other than the commercial decisions by British Rail in regard to additional ancillary railway facilities as a consequence of the Channel tunnel, no Government money will be put up for the Channel tunnel. However, I shall certainly look at the hon. Gentleman's specific point about the Clyde.
British Airways
3.
asked the Secretary of State for Transport what information he has about the total value of British Airways shares sold in foreign markets.
About £148 million worth of shares were sold in foreign markets, out of a total capitalisation of £900 million.
As the Secretary of State obviously does not have a clue about the answer to the question that was asked, and in view of massive share trading as a result of the issue being considerably underpriced, how can the right hon. Gentleman guarantee that control of British Airways will not pass to foreigners or even to a predatory competitor foreign airline?
The hon. Gentleman's first statement was total and complete nonsense. The articles require all foreign interests in BA shares to be disclosed to the company. Obviously, a system is already in place. On the hon. Gentleman's second point, I wonder whether he remembers what The Sunday Times said on the day before we priced the issue. The writer said that
and in fact, BA would be worth buying only under 125p."at 125p, I would be luke-warm",
Does my right hon. Friend agree that many potential foreign investors were disappointed because of the tremendous interest of small investors in this country in British Airways, and that that is a tremendous vote of confidence in Lord King, his directors and all the people who work for British Airways, including many of my constituents, who have made it the most attractive airline investment opportunity anywhere in the world?
I am delighted at my hon. Friend's welcome. He is right. He may not recall the only Labour privatisation, if it can be called that, when in 1977 the Labour Government sold British Petroleum shares to the nation, but they did not offer them to the wider public—20 per cent. of them were placed in the United States and the rest went to United Kingdom institutions. My hon. Friends will all be looking forward to a debate on Labour's transport policy document, "Fresh Directions", to see whether the Labour party will confirm— [HON. MEMBERS: "Hear, hear."] I am delighted. Clearly, one of Labour's Supply days will be used to debate that lovely document. We shall look forward to that occasion.
Is not the truth that the Secretary of State swithered and dithered over the British Airways flotation, that he could not make up his mind whether he wanted to encourage or discourage the small shareholder and that in the end he panicked and set the price too low, so that he gave away £300 million of public money? If he is relying on The Sunday Times for advice on how to run his Department, no wonder he gets it so abysmally wrong.
I do not think for one moment that the enormous success of the Government's privatisation programme would at any stage be regarded by the public—no matter how it is regarded by the Labour party—as the result of panic. I believe that the reverse is the case. British Airways was one of the more successful privatisations. The 1·1 million shareholders will be very interested to know the Labour party's "Fresh Directions" attitude towards their share ownership. We look forward to hearing the Opposition's debate on that subject.
Would it not be more to the point to concentrate on those shares that were not sold abroad because the demand in this country, especially from British Airways employees and the small shareholder, was at such a high level that shares were brought back from foreign markets into the British market?
My hon. Friend is absolutely correct to draw attention to the working of the clawback and the fact that 47 per cent. of shares were placed with the employees in the United Kingdom and in the wider individual share-owning market place. I know that my hon. Friend would be happy to remind British Airways employees of Labour's commitment in its new transport document to take back the shares at the issue price. When and how the Opposition do that will be of interest to the employees.
Coaches (Speed Governors)
4.
asked the Secretary of State for Transport if he will report progress on the consultations about fitting of speed governors to coaches.
The Department has been actively involved in the preparation of a British Standard for speed limiters. We expect to be able to consult interested parties on regulations based on a draft British Standard within the next two months.
Is my hon. Friend aware that the tachograph record is used on the continent as a way of making on-the-spot speed checks, which is simple and quick and avoids the need for additional equipment? Would that not be a better way of enforcing speed limits for buses and coaches than requiring operators to fit these expensive new fangled speed governors?
My hon. Friend will accept that if a speed limiter is in operation there cannot be an offence. It is also worth noting that speed limiters are also required in France. I am advised that by themselves tachographs are not sufficient evidence for a prosecution for speeding.
I recognise the importance of a limit being placed on the speeds of coaches and buses, but do not many of the worst accidents happen at fairly low speeds, well below those speeds which would be achieved through the fitting of governors? Is the Minister aware that in my constituency a child was killed about 10 days ago on a road used by buses, coaches and cars, but where there was an insufficient layby area for coaches to pull in to collect and deliver children? Will he consider all aspects of that matter, including those points highlighted by the Anstey lane disaster?
The hon. and learned Gentleman has made a very important point, that 80 per cent. of injuries and deaths on the roads occur in built-up areas where the maximum speed limits applicable in countryside areas do not apply. When my right hon. Friend the Secretary of State publishes the new "Highway Code", he will draw attention to the simple rules that will eliminate virtually all injuries and deaths on our roads. I hope that those responsible for children will ensure that children are under control, and that when they reach the age of discretion they are properly trained. I know that bus and coach drivers will do all that they can to ensure that they do not kill or injure children.
In contradistinction to the point made by my hon. Friend the Member for Wells (Mr. HeathcoatAmory), will my hon. Friend press ahead on that matter as fast as he can? Will he confirm the Government's commitment? Does he share the view expressed by my hon. Friend the Member for Wallasey (Mrs. Chalker) that the driving of some coaches on our motorways is little less than intimidation? Will he confirm that, in addition to governors, seat belts, flammability, and other design features are receiving the Department's attention?
Yes, Sir.
Cycling (Safety)
5.
asked the Secretary of State For Transport if he will convene and attend a meeting of representatives of cycling organisations to discuss safety and related matters; and if he will make a statement.
I am looking forward to opening the Conference on International Innovations for Safer Cycling, organised by Southampton city council and the Southampton Cycling Campaign on 23 May as one of the main events of National Bike Week 1987. The Department will be playing a full part in this event.
I welcome that announcement from the Minister who I know has a genuine interest in cycling. However, as 350 cyclists are killed and more than 6,000 seriously injured every year, is there not now an urgent need to reconsider what must be done in such a serious situation? I am not blaming any particular section of road traffic, but will the Minister consider three aspects of the problem? First, will he attempt to increase the awareness of motorists about cycling? Secondly, will he improve facilites for cyclists at turning places and crossing points? Finally, and this is important, will he institute a major campaign among school children about cycling and safety?
I pay tribute to the work done for cycling by the hon. Gentleman, not only among Members of Parliament, but throughout the country. He rightly emphasises three aspects. I will do what I can on training, but will require much help from schools, local authorities and the Royal Society for the Prevention of Accidents. The hon. Gentleman will be aware of the advisory leaflets produced by the Department, which have been well received in cycling circles. As for awareness, I hope that when the new "Highway Code" is issued on 4 March the hon. Gentleman will welcome many of the changes, most of which are addressed not to cyclists but to others road users who cause so much danger to cyclists.
My hon. Friend will be aware that the headquarters of the Cyclists Touring Club is in my constituency—[Interruption.]
Order. I want to hear about the Cyclists Touring Club.
Before attending any meeting, will my hon. Friend read the club's 1987 manifesto, which was prepared for this European Year of the Environment? What has he done during the past year to publicise the fact that motorists and cyclists are fellow and responsible road users?
I recall an Adjournment debate introduced by my hon. Friend, which was answered by my hon. Friend the Minister of State, Foreign and Commonwealth Office, the former Minister of State, Department of Transport, following which we made 18 changes to the "Highway Code" which provide greater protection for cyclists. I shall consider the CTC '87 manifesto. During the past year, I thought that I earned one brownie point by visiting CTC headquarters with my hon. Friend on a tandem, and I thought that I deserved a second brownie point for not telling the press.
Light Dues
6.
asked the Secretary of State for Transport what is his estimate of the cost to the shipping and ports industries as a consequence of the 14 per cent. increase in light dues he announced on 5 February.
8.
asked the Secretary of State for Transport what representations he has received following the announcement of an increase in light dues.
Well over 80 per cent. of light dues are paid by foreign registered ships. The proposed increase will result in an additional charge to United Kingdom registered shipping of about £500,000 a year. Light dues impose no direct costs on the port industry. I have received several representations for and against the new charges.
The Minister's reply was extremely complacent. Are he and the Secretary of State aware of the immense damage that the measure is likely to cause to United Kingdom ports and shipping? The British Ports Association estimates that light dues could increase container costs by 50 per cent., add £20,000 to the costs of each ship entering United Kingdom ports, and cost one ship owner £1 million per annum.
The Minister must be aware that Britain alone in Europe charges shipowners this levy for entering and embarking from United Kingdom ports. The levy is directed at the industry and is one that the industry can ill afford to bear. The Minister should consult the Chancellor of the Exchequer and ask him, if he has money to give away in this year's Budget, to give it to ports and shipping— an important part of British industry— instead of levying this 14 per cent. increase on them, which will cause great damage.The increases are necessary to cover costs. Before the hon. Gentleman gets completely carried away, he should remember that since 1981–82 light dues have decreased by 18 per cent. in real terms, even taking into account the new rates. He should further remind himself and some of his hon. Friends that light dues were at their peak in real terms in 1975, after Labour had increased them three times in 19 months by 10 per cent., 12 per cent. and 41 per cent. respectively.
What types of fishing vessels are likely to pay dues in the future? Would it not make much more sense to rescind than to extend light dues to fishing vessels?
We are considering proposals to extend light dues to some fishing vessels. It follows the inclusion earlier this year of the cost of operating the United Kingdom navigator transmitters in the general lighthouse fund. I cannot discuss the details, because they have not been finalised.
Although I do not endorse the hyperbole of the hon. Member for Wigan (Mr. Stott), will my hon. Friend recognise that there is genuine anxiety in the shipping industry about the effect of light dues? Will he undertake to listen most carefully and sympathetically to any representations that that industry makes to him?
Of course there are anxieties about increases, even if the charges are coming down in real terms. We shall see whether any restructuring between different types of vessels and what they pay should be undertaken.
What steps has the Department of Transport taken to set up user consultative committees to extend consultation to people who do not necessarily pay light dues? Will the Minister confirm that light dues are not charged by any of our EEC partners, with the exception of Greece and the Republic of Ireland? Does he agree that if a vessel has a choice between Rotterdam and a British port, Rotterdam is likely to be more attractive because increased light dues will now have to be paid in the United Kingdom?
We consult all elements of the industry. The cost differential between average ports on the Continent and in Britain is explained by light dues only to the tune of one seventh.
London Underground
7.
asked the Secretary of State for Transport if, when he next meets the chairman of London Regional Transport, he will raise with him the level of services on the London Underground; and if he will make a statement.
Yes, Sir. While I am not complacent, I congratulate him on increasing by 3 per cent. in 1986–87 alone the mileage of trains run on the Underground, and on his plans for further increases this year.
Is my hon. Friend aware that I am grateful for the interest that he and the chairman are taking in the suffering of my constituents on the Central line? Will sympathetic consideration be given to constructive suggestions which may be made by the Central line users action group and myself?
Following a lengthy discussion with my hon. Friend, who raised several matters on behalf of his constituents, I have written to the chairman of London Underground Ltd. about them and I shall be in touch with my hon. Friend. As for the line users' association, of course I shall be happy to convey its views as well.
When the Minister next meets the chairman of London Regional Transport, will he bear in mind the thousands of south-east London commuters who would love to have an Underground service about which to complain? How long will south-east London remain the forgotten corner of the city when it comes to the development of the Underground system?
London Underground Ltd. is concentrating on improving its existing network and services. The hon. Gentleman may be interested to know that the number of passengers has gone up by 50 per cent. since 1982 to an all-time record and that some £260 million of investment— the highest ever level— will be carried through this year. We should see those improvements through before we undertake a further extension of the system.
Will my hon. Friend have a word with the management of LRT about the irritating failures of electronic time and destination warning signs, especially on the Northern line? They mostly show flashing correction messages rather than times and destinations.
I am grateful to my hon. Friend for drawing attention to that matter and I shall pass it on to the chairman and managing director.
Is the Minister satisfied with the level of service provided by LRT, bearing in mind the number of ticket machines that are switched off or are out of order and the lack of staff issuing or collecting tickets, especially late at night? If there is £20 million to spare in this newly nationalised industry, would it not be better to spend it on providing much needed improvements for passengers who travel on the system than to hand it back to the Government?
Ratepayers are well satisfied at finding less than half the sum which the GLC would have required in subsidy to mop up the industry. Neither I nor the management are complacent. There are plans for automatic ticketing to be introduced.
M6-M61 (M65 Link)
9.
asked the Secretary of State for Transport if he will give the projected date for commencement of construction work on the M65 link to the M6-M61.
Time will be needed for design work and the normal statutory procedures, including a public inquiry. Construction could then start in the early 1990s.
Does the Minister accept that his answer is not acceptable to the people of north-east Lancashire? This motorway has the overwhelming support of the people in that part of Lancashire, and we have been arguing the case for it for more than 20 years. We want the motorway to be started by 1990, and we want it to be up to motorway standards.
We will do the best that we can. The hon. Gentleman mentioned a 20-year delay. Part of that delay was due to the Labour party halving the money for new national roads between 1974 and 1979. Perhaps in the long-promised Supply day debate on "Fresh Directions" we may hear the Labour party's plans for road spending.
There may be problems in Burnley, but a lot of good work is going on in the north-west. However, what about the A6M? There will be overheating not just of engines but of a lot of people in Stockport if something is not done about that soon. When can we expect the public inquiry?
I hope soon to be able to announce the date of the public inquiry. We are considering a large number of representations received since the inquiry into the Denton to Middleton section of the Manchester outer ring road ended in January last year.
Does the Minister not understand that the reason for the inordinate delay in the construction of this link is that the Government cancelled the link altogether in April 1980 and did not restore it until three years later? Is he aware that the result has been to produce major congestion, especially on the northern roads around my constituency and on the road between Blackburn and Preston? Bearing in mind the delays so far, can the Minister give any promise that the work to put this link on to the M61 will be speeded up?
We shall do what we can, but I cannot promise to speed things up. The hon. Gentleman referred to what happened in 1980. The reason why a number of schemes were suspended or shelved in 1980 was that the previous Government cut the money but did not cut the number of schemes. We must recognise the need for bet ter roads without covering the countryside with concrete. We want the roads that are necessary for industrial employment and we look forward to Labour party support as we continue to provide such roads. If the Opposition want to offer an alternative agenda, they should put a few sums to it.
Business Aviation
11.
asked the Secretary of State for Transport what facilities exist for business aviation in the south-east area, particularly around London.
I have recently made visits to seven specialist business aviation airfields in the London area and am confident that the available facilities are well placed to compete in serving a thriving business aviation industry.
Is the Minister satisfied that customs and immigration facilities are adequate at business aviation airfields?
These matters are primarily for my right hon. Friends the Chancellor of the Exchequer and the Home Secretary. I can confirm that the industry has a unique business user concession providing on-call customs and immigration cover at about 40 small airfields throughout the United Kingdom. These are for United Kingdom and EEC nationals travelling for business purposes. The scheme is under continuous review and improvement, and a further enhancement should be made shortly.
Is my hon. Friend aware that that is perhaps an unhappy answer to a situation that he knows very well is extremely unsatisfactory? Is he aware that no really satisfactory customs and excise facilities exist at Gatwick airport for business aircraft arriving and leaving? Will he take what steps he can to urge his right hon. Friends to ensure that this important service is not neglected?
I know that the industry would like to have. 24-hour cover at all airports for business purposes, but that would be extremely expensive. I shall, of course, make sure that my right hon. Friends hear what my hon. Friend has said, but I cannot make any promises.
London Regional Transport (Fares)
12.
asked the Secretary of State for Transport what was the latest fares increase on London Regional Transport undertakings; what was the increase in 1981; and if he will make a statement.
London Regional Transport fares increased in real terms by an average of 0·5 per cent. on 11 January. Fares have again been held broadly at their real level following the last fares change under the GLC-controlled London Transport in 1983.
Through my right hon. Friend, may I congratulate London Regional Transport on that very low increase in fares, which is so much below the level of inflation? May I also invite my right hon. Friend to compare it with the GLC's 100 per cent. increase in London Transport fares in 1982 at the same time as it increased rates by 100 per cent.? Does my right hon. Friend agree that it is to the eternal satisfaction of Londoners that London Regional Transport has been put in charge?
My hon. Friend is quite right. He had experience of the impact of GLC policies on his constituents when they wished to travel. My hon. Friend will be interested to know that Labour's transport policy document "Fresh Directions" offers a GLC-type transport policy if ever we have the misfortune to have the Labour party in government again.
Will my right hon. Friend confirm that keeping fares broadly in line with inflation, and not ahead of it, has resulted in more people using LRT services, particularly on the Underground, and that that has made it possible for management to provide more services? Surely that is a good thing. Will he confirm that it has also led to an increase in the capital investment programme?
My hon. Friend is absolutely right in all the points that he makes. About 30 per cent. more passenger journeys are now being made than in 1983. In fact, there is a record level of travelling on the Underground. That is a clear indication of the success of these policies.
Bus Deregulation
13.
asked the Secretary of State for Transport when he expects to receive the first report of the research he has commissioned into the effects of bus deregulations in rural areas; and if he proposes to publish the report.
I hope to publish first reports of the studies of selected areas in the summer. All the evidence available so far indicates that the level of rural bus services has been broadly maintained.
In view of that reply, does the Minister not realise that the main bus operator in Northumberland reduced services by 25,000 miles a week in the aftermath of deregulation and that very few of those services were taken up by other operators? Must the public wait for the publication of all this research before some of the gaps are filled, and must people give up jobs because they are unable to get to work in the meantime?
Most counties have made such savings by going over to competitive tendering for the provision of socially necessary services and they have adequate resources to provide all the services that are necessary in rural areas.
Is my hon. Friend aware that, contrary to what was said by the hon. Member for Berwick upon Tweed (Mr. Beith), in the west country and in north Devon in particular the deregulation of rural buses has resulted in the appearance of buses where none had been seen for more than a decade and that that has been entirely welcomed by my constituents?
I am aware that that is so not just in Devon but in many other parts of the country.
Is the hon. Gentleman aware that the Crosville bus company, which is responsible for both rural and city bus services on Merseyside, has been purchasing bad second-hand buses from Birmingham which its employees have refused to drive? Is he aware that those workers have been sacked and are now unemployed purely as a result of the Government's deregulation policy?
I am grateful to the hon. Gentleman for raising that point. It should perhaps be more widely known that Crosville, having won a large number of contracts that would have provided additional employment at the Love Lane depot, took in 10 second-hand buses which in the previous few weeks had been used on the roads and had been driven in the Birmingham area by Transport and General Workers Union drivers, but that when that opportunity was obtained for Liverpool the men refused to drive the buses. The hon. Gentleman may care to ponder why buses which were perfectly satisfactory when driven on the roads of Birmingham by TGWU drivers should be unacceptable in Liverpool.
Surely the real evidence shows that there has been a severe disruption of bus services in the rural areas. Will the Minister define what he means by "broadly maintained", and will he now name the selected areas in respect of which the studies will be published?
The selected areas in England for the special studies are west Wiltshire, Blackburn, the Medway towns and Nottingham. In Scotland they are parts of the Highland region, north-east Fife, the Dumfries and Galloway regions, parts of Strathclyde and part of Edinburgh. In Wales they are west Glamorgan, parts of Powys and parts of Clwyd. All the evidence so far shows that with minor variations there is broadly the same level of service as before, but with an increasing provision of minibus sevices, which are highly popular.
Midlands, Regional Airport
14.
asked the Secretary of State for Transport what has been the total level of investment in regional airports in the midlands since 1979.
Capital investment at airports in the midlands since 1979 has totalled more than £80 million. That compares with total capital investment of less than £16 million at all regional airports under the Labour Administration.
I thank my hon. Friend for that answer. Does he agree that, despite the Opposition's allegation that we never invest any money in our infrastructure, this substantial investment must mean an increase in traffic at those airports? Has my hon. Friend any idea of the present amount of traffic?
I am happy to tell my hon. Friend that the investment is, as he says, generating valuable new business for the region. At Birmingham airport about 180 direct scheduled services are operated each week to 17 foreign destinations. In 1986 alone, passenger traffic increased by more than 25 per cent. At East Midlands airport about 34 scheduled services a week serve five overseas destinations, and in 1986 traffic rose by 20 per cent.
Attorney-General
Official Secrets Act
50.
asked the Attorney-General what recent discussions he has had with the Director of Public Prosecutions regarding investigations of suspected infringements of section 2 of the Official Secrets Act; and if he will make a statement.
The Attorney-General has frequent meetings with the Director at which current investigations and pending prosecutions under section 2 are discussed when appropriate.
Will the Solicitor-General tell the House how many investigations and prosecutions are current at the present time under this awful, intolerable section? Will he also say which is correct—the Prime Minister's letter to me saying that the Government have, in effect, no intention of amending the section or attempting to do so, or the leading article that appeared on the front page of The Sunday Times a week ago, which reported that Ministers had said that the section was to be amended or repealed?
A total of eight prosecutions or matters are at present under active consideration under section 2 of the Official Secrets Act. The hon. and learned Gentleman will recall that the Government have more than once acknowledged the inadequacies of the Act and sought to introduce amending legislation in the previous Parliament, but it did not find favour. Clearly, whether further legislation is introduced is a matter for my right hon. Friend the Home Secretary.
Does my right hon. and learned Friend agree that although the Official Secrets Act may need amending the growing number of people who are willing to betray their country is a much more important problem?
My hon. Friend acknowledges, as do the vast majority of hon. Members of this House, that any community needs legislation which effectively protects its secrets. The difficulty is to get legislation which actively, accurately and appropriately balances conflicting interests.
Before getting to the question, may I ask the Solicitor-General if he will convey our best wishes to the Attorney-General during his convalescence? We hope to see him back here shortly. [Interruption.] That is not the question. Mild mannered I may be, but not that mild mannered.
On the more contentious matters, will the Solicitor-General give the House an assurance that the matters referred to in Granada television's "World in Action" programme last week about that despicable organisation the Economic League are being investigated, especially the possibility that the league's officials have contravened the Official Secrets Act? Will the Solicitor-General also give us an assurance that there is no political impediment to a prosecution?The hon. Gentleman's opening remarks were characteristic of his generosity and were most gratefully received.
On the second part of the hon. Gentleman's question. the procedures for drawing evidence to the attention of the prosecuting authorities are well understood. As has been made clear by my right hon. and learned Friend the Attorney-General, matters of political partisanship are never taken into consideration.Bbc Scotland (Police Raid)
51.
asked the Attorney-General on what date, and at what time, he first became aware of the police search of the British Broadcasting Corporation offices at Queen Margaret Drive, Glasgow, as part of inquiries initiated at his request into alleged breaches of the Official Secrets Acts in relation to a secret defence project.
On the morning of Sunday 1 February.
Has it dawned on the Government that the raid on the BBC in Glasgow was an illegal act? Why do Ministers think that they know better than Professor Robert Black, professor of Scots law at the University of Edinburgh, who has argued convincingly that since a justice of the peace did not sign a warrant it was an illegal act? Why do they think that they know better than Professor Tony Bradley, professor of constitutional law at Edinburgh university and editor of Public Law, who says that the feelings of the victims—in this case, the Foreign Office—had to be taken into account?
Reluctant though I am to play so tempting a question away into the heather, that is not a matter for the Attorney-General.
Might not those who appear to believe in the divine right of investigative journalists reflect on what would have been thought, said and done if pre-war journalists had betrayed the secret of radar?
My hon. Friend makes an extremely important point. It is all very well for us to pay careful attention—and we need to—to the rights of a free press and freedom of speech, but the need for the United Kingdom to protect its essential security interests tends to receive less vocal support and recognition
Does the Solicitor-General regard it as satisfactory that the law governing the obtaining of search warrants is different in England and in Scotland, thus enabling the authorities to indulge in the sort of gamesmanship of which we heard in relation to the Glasgow search?
The hon. and learned Gentleman invites me to stray into matters which are the responsibility of my Scottish colleagues, but it would he wrong for me to do so. It is right that the Act of Union should be respected and that the Scots should continue to be able to have a law of their own.
Sentencing Policy
52.
asked the Attorney-General what representations he has received about the use of his proposed powers under clause 29 of the Criminal Justice Bill to refer cases to the Court of Appeal for a review of their implications for future sentencing policy; and if he will make a statement.
57.
asked the Attorney-General what representations he has received in favour of a right of appeal for the Crown in rape cases, where he is of the opinion that (a) a judge has been lenient in his sentence or (b) has not complied with the Lord Chief Justice's guidelines on the subject.
I have not received any specific representations about the use of the proposed powers under clause 29 of the Criminal Justice Bill.
Will my right hon. and learned Friend reflect on the victim's position in the recent Ealing vicarage case and in similar cases in which, because the rapist pleads guilty, the full details of the case are not brought out before the judge, the victim's evidence is not heard and the case is thus not open to full assessment by the judge? Does he share my concern that in that situation the judge cannot make a proper evaluation of the mind of the victim and that something needs to be done?
This is an important point. It is' sometimes said that in making a speech in mitigation the defence counsel may reflect adversely on the character of the victim. If anything is said that the prosecution knows to be misleading, the prosecuting counsel should intervene to correct it to avoid the court being misled. The judiciary will always seek to ensure that any judicial observations are squarely based on fact.
Is my right hon. and learned Friend aware of the completely inadequate sentences being given by certain judges? Is he aware that the average sentence for rape is three and a half years and the term actually served only 20 months? Does he agree also also that if all judges looked at the Regina v. Billam case, useful guidelines would be given. Does he agree that when clause 29 is reconsidered there is a possibility of directly amending any particular ludicrously light and lenient sentence and thus the opportunity to deter other potential rapists from committing such a heinous crime?
To the extent that there is current public disquiet, it is important that clause 29 of the Criminal Justice Bill should be enacted, and I hope that it will be enacted. Without accepting the adjectives used by my hon. Friend, it is important— I believe that the House shares this view—that the guidelines that have been laid down by the Court of Appeal criminal division should be adhered to and applied by the judiciary.
Are there any aspects of the Kincora affair that could be brought to the attention of the Court of Appeal under the proposed powers of clause 29 of the Criminal Justice Bill? Is it not true that the file was given to the Prime Minister on 1 November 1984 by Mr. Wallace and Captain Holyroyd, setting out major allegations about the destabilisation of a Labour Government and the Government of the Irish Republic, but that no action was taken? Is it not about time that the Government made a statement so that Parliament can learn the truth? We want to know whether the findings in the report are true or false.
I find it just as difficult as the hon. Gentleman must find it to see how clause 29 can relate to the Kincora affair. However, active consideration is being given to certain reports that have recently appeared about Mr. Holroyd and Mr. Wallace.
Overseas Development
Sub-Saharan Africa
60.
asked the Secretary of State for Foreign and Commonwealth Affairs what measures he is taking to seek to prevent the re-emergence of famine in sub-Saharan Africa.
We are working with the Governments of the affected countries, and other donors, including the international organisations, to help cope with the complex problems of famine. We seek to help increase indigenous food production, to prevent desertification, to develop food security and early warning systems, and to ensure that measures to avert famine can be taken swiftly.
We are also continuing to respond quickly to emergencies. In the past two weeks I have announced more than £3 million for help in Mozambique.Is the Minister aware that his commitment to Mozambique amounts to only 20p per head of the population? As about 4 million people are threatened with starvation, and given the key strategic role of Mozambique for all the front-line states, why does the Minister not commit at least £10 per head for the famine population—or £40 million—through an income and foreign exchange support programme for Mozambique?
What steps has the Minister taken, with his right hon. Friend the Chancellor of the Exchequer, on joint international action to write off a major share of the $130 billion worth of debt in the remainder of sub-Saharan Africa—a debt which denies such countries a chance of fighting famine and saving lives?As the hon. Gentleman should know, we have taken the lead in writing off official aid debts to the poorest countries. We have written off debts to the tune of about £264 million to the 13 poorest African countries. As for our assistance to Mozambique, the hon. Gentleman's views were not shared by Ministers in Mozambique a week ago.
Given the massive scale of the crisis that has developed in sub-Saharan Africa in recent years, and its likely duration, is there not a strong case for a substantial increase in the aid programme for that region alone, rather than having to help that region at the expense of other poor areas?
I am grateful to my hon. Friend for his support. I know how much he knows about the subject. We are hoping to be able to spend more in sub-Saharan Africa in the coming year. This year we are spending about £570 million in Africa on our bilateral programme alone.
Will the Minister acknowledge that we are talking, not just about the quantity of money, but about the quality of investment? Will he also acknowledge the importance of supporting subsistence agriculture? Will he assure the House that the percentage of United Kingdom bilateral aid in that direction will increase?
I certainly agree with the hon. Gentleman about the importance of agriculture and the quality of our programme. I am pleased to be able to say that our bilateral project aid for the renewable natural resources sector rose by 50 per cent. in the five years to 1985 and now stands at £65 million.
Does my hon. Friend agree that the worst way of dealing with sub-Saharan Africa is through a programme of indiscriminate debt write-off and undermining the adjustment programme supported by the IMF, as in the policy advanced by the Opposition last week? Would not such a policy be rightly interpreted as a charter for irresponsible Third world Governments, which all observers agree contribute to the lack of development in the Third world? Is it not essential to face the fact that development in the Third world, like economic activity anywhere else, involves difficult and tough choices?
My hon. Friend is entirely right. There was a marked difference in tone between the action programme agreed by the African countries at the end of the United Nations special session last year and the document produced by the Labour party last week. However, if David Blunkett is to be believed, that document was entirely academic.
Will the geographical redistribution of the British aid effort in the next few years benefit sub-Saharan Africa? In particular, will the countries in the region get an increasing share of whatever that aid budget may be?
That will certainly be my intention over the next year.
Does my hon. Friend agree that any benefit accruing from overseas aid to Mozambique, Zimbabwe and other African nations will be obliterated by the devastation that will follow a policy of universal sanctions against South Africa?
Yes, Sir.
Women's Health
61.
asked the Secretary of State for Foreign and Commonwealth Affairs what impact he estimates the appointment of a women's health specialist at his Department will have on project work on women and development.
We believe that the appointment of a new nursing and health services adviser, with particular interest in women's health matters, should further strengthen our capacity to improve the health and wellbeing of women.
Bearing in mind the Minister's comments when he opened the Overseas Development Administration conference on 2 December, does the appointment of a women's health adviser signify a change of policy within his Department? Can we look forward to much-needed women's educational, economic and agricultural advisers in the near future?
No, the appointment does not represent a change of policy. It represents the reaffirmation of an existing, sensible policy.
Does my hon. Friend accept that all development policies, by definition, affect women? Will his Department continue to consider the impact of such policies on women, without forming separate women's units within the Department?
I totally agree with my hon. Friend. I am against tokenism.
Did the Minister see the article by Mr. Davie in The Observer yesterday? If so, what were his reactions, particularly to the suggestion that more positive help should be given to men and women in the Third world to resolve their problems rather than Western agencies imposing solutions upon them?
I did not read that meaning into the article, but I was impressed by the article, as I am with most of Mr. Davie's articles. I took from the article the important role of non-governmental organisations in the development effort. I am delighted to say that we have spent a considerable extra amount on the joint funding scheme with non-governmental organisations and we intend to increase further the amount that we spend on that scheme in the coming years.
Medically Qualified Personnel
62.
asked the Secretary of State for Foreign and Commonwealth Affairs how many medically qualified personnel are responsible to him in relation to his overseas development responsibilities; and what rank is the most senior of such personnel.
The ODA has two full-time medical advisers on its permanent staff, both of medical officer rank, and a part-time nutrition adviser. One medical adviser post is currently vacant, but will be filled on 2 March. The ODA can also turn for advice to 13 medically qualified lecturers and senior lecturers whom it supports at the Liverpool and London schools of tropical medicine, the University of Edinburgh and the University of London. In addition, the ODA supports more than 80 medically qualified personnel working for Governments or public authorities overseas.
Does my hon. Friend agree that one of the best ways in which this country can help the Third world is through medical advice? From the Minister's reply, it is clear that the Department is inadequat:ely staffed with medical practitioners. Should not the Department have at least somebody of under-secretary rank, or preferably deputy-secretary rank? In view of the current problem of AIDS in Africa, we shall soon have to give a great deal of advice. Does my hon. Friend agree that it is a great deal more important to give sound medical advice than to throw a lot of money into the Third world? Will his Department do a bit better?
I do not agree with everything that my hon. Friend has said, but I agree about the importance of our health and population programmes. At present we are spending about £38 million on those programmes. I believe that in those programmes more emphasis should be placed on primary health care. We should, of course, work through multilateral as well as bilateral prograrnmes and we look forward to giving more support to the World Health Organisation and the work that it is proposing to carry out in relation to AIDS.
Women
63.
asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on his Department's policy towards the role of women in development.
Our policy was set out in the booklet "Women in Development", copies of which are available in the Library.
Is the Minister aware that the Government's attitude seems rather complacent in view of continuing reports that the position of women in development issues is becoming worse, not better? Is he aware that a report to be published on Thursday by War on Want sets out the evidence for this? Will he read it carefully and respond positively to its findings?
I hope that I shall respond positively, but I do not always agree with everything that War on Want says; nor, I think, does the Labour party. I am not complacent. I want to see more women being trained under our own programme. Only about 15 per cent. of places currently go to women. We are talking about how to improve that figure with aid-recipient Governments.
What explanation can my hon. Friend offer for the new-found interest of the Liberal party in women?
After the events of last week, I think that I should be careful about referring to the role of women in politics.
Leyland Trucks—Daf
3.31 pm
I beg to ask leave to move the Adjournment of the House, under Standing Order No. 20, for the purpose of discussing a specific and important matter that should have urgent consideration, namely,
I raise this issue at the earliest opportunity since the full details of the proposal became clear and since the publication of the Industry Act order on Thursday night. The matter is specific because it relates only to the joint venture. It is important because it involves several thousand people, 2,000 of whom are to lose their jobs in the industry. It is urgent because, unless the House has an opportunity to debate the joint venture, the proposal will be formalised within the next few days. The joint venture proposal is one of the largest privatisation measures of this Parliament. Whatever one's views on privatisation, it should not be accepted that the proposal should be implemented without Parliament's endorsement, other than the brief statement which was made last week. If that endorsement is not made, by Executive decision a Dutch company will be given, free of charge and free of debt, substantial public assets and a 23 per cent. share of the United Kingdom market. It will have a virtual monopoly of component supply within that market. Had that been done by Bill or by order, questions could have been asked about the detail of the proposal, the structure of the board of the joint venture and the obligations on the principals concerned in competitive purchasing. I submit that it would be entirely wrong for such proposals to be enacted without further debate in the House and without Parliament's approval."the financial terms of the proposed Leyland Trucks— DAF joint venture".
The hon. Member for Darlington (Mr. Fallon) asks leave to move the Adjournment of the House for the purpose of discussing a specific and important matter that he thinks should have urgent consideration, namely,
I have listened with care to what the hon. Gentleman has said, but I regret that I do not consider that the matter which he has raised meets all the criteria under Standing Order No. 20. 1 cannot, therefore, submit his application to the House."the proposed financial terms of the Leyland Trucks-DAF joint venture".
Personal Statement
I wish, Mr. Speaker, to withdraw my remarks critical of you which I made last Friday outside the House. I realise now how seriously I have offended you and the House. I wish most sincerely to apologise to you, Mr. Speaker, and to the House for my remarks, which I withdraw unreservedly.
I thank the hon. Member for Glanford and Scunthorpe (Mr. Hickmet) for his withdrawal. I accept fully what he has said.
Points Of Order
On a point of order Mr. Speaker. On Friday I sought to table the following early-day motion—
Order. The hon. Gentleman should not read out the motion. I have been informed about it. If the hon. Gentleman is dissatisfied in any way with the advice that he was given by the Table Office—I have not seen the motion, as it was not submitted to me—he should ask the Table Office to refer the matter to me. If he will do that, I shall examine it.
Further to that point of order, Mr. Speaker. Conservative Members unreservedly accept your ruling on the question—
Order. There is nothing more to be said on that matter.
rose—
Order. There is nothing more to be said on that matter. I have accepted the apology that has been proffered.
It is on a different point of order, Mr. Speaker. I wonder whether you could help the House by making it clear what the position is henceforth with regard to the naming of any hon. Member in any early-day motion. Is it now clear, and is it now your policy and that of the Table Office, that from this point on no early-day motion will be accepted that names in any way whatsoever or attributes to any hon. Member any views, opinions or political positions? Is that now the position?
That is certainly not the position. The normal rules apply as before. The only way in which the conduct of an hon. Member may be criticised is by way of early-day motion. What I hope that the House will accept is that hon. Members will refrain from making imputations of dishonour or disloyal conduct against each other, which we would not allow across the Chamber at Question Time and which I certainly would not wish to see as early-day motions on the Order Paper.
Further to that point of order, Mr. Speaker. Is it, then, clear that the attribution of views to an hon. Member is quite permissible and that the association of an hon. Member, where he has taken a position publicly in an early-day motion, is quite acceptable and will be accepted by the Table Office?
I think that the whole House understands exactly what the position is. We have an obligation in the House to uphold the high standards that we have inherited. I hope we shall always do so.
On a point of order, Mr. Speaker. The matter I wish to raise with you came to my notice only while travelling down this morning, in one of the daily journals—[Interruption.] I realise that the main reading of Conservative Members is Beano, but I was reading one of the quality newspapers in the train this morning. Since it arrived after 12 o'clock I could not raise this matter with you as one of the things that has to be brought to your attention by 12 o'clock. Could you advise the House as to what we can do about a very grave matter indeed? It is now quite clear that the President of the United States intended to kill President Gaddafi—
Order. Among my many responsibilities, that is not one. That was certainly known before 12 o'clock.
rose—
On a point of order, Mr. Speaker.
rose—
Order. The hon. Gentleman must resume his seat.
I did not know about it until 12 o'clock.
Order. I cannot help that.
Since the Prime Minister—
Order. The hon. Gentleman is setting a very bad example.
She gets away with murder. (See column 161, "Parliamentary Conduct".)
I am most grateful for your advice, Mr. Speaker. I return to the question of the Table Office and the tabling of early-day motions. Having once done that, may I ask you, because I am unclear—
Order. I am not prepared to allow the hon. Gentleman to read out an early-day motion which is not on the Order Paper. That early-day motion was not brought to me for my attention. If the hon. Gentleman wished it to be drawn to my attention he should have said so. I have now said that if he wants to have it drawn to my attention I shall ensure that it is sent to me. I have no knowledge of what it is.
On a point of order, Mr. Speaker. May I ask whether you can assure the House that the rule which you have applied in connection with recent early-day motions, which is accepted by everybody, will also apply to early-day motions tabled by some people at some time in the past applying to people outside the House who have even less chance to justify themselves than those who are Members of the House?
I am glad to have this opportunity to reaffirm that hon. Members should use with the greatest care their undoubted rights of free speech in naming people outside the House who have no opportunity to reply. Hon. Members should always exercise that right and privilege with the greatest consideration and responsibility.
Further to that point or order, Mr. Speaker. I shall not read out my motion, but I must ask you why an early-day motion submitted by me was altered without reference to you.
I understand that the hon. Member was given certain advice by the Table Office and that he accepted it.
indicated dissent.
If the hon. Member did not accept that advice, he should have asked for me to be informed. I was not so informed.
Further to the point or order, Mr. Speaker.
Order. I am not prepared to take it.
The Prime Minister—
Order. I ask the hon. Member to resume his seat.
Sizewell Nuclear Power Station
Motion made, and Question proposed, That this House do now adjourn.— [Mr. Portillo.]
There is great demand to take part in the debate. If the ten-minute limit on speeches between 6 pm and 8 pm or between 7 pm and 9 pm applied today, I would have operated it. I ask hon. Members to be as brief as possible so that as many hon. Members as possible can be called.
3.40 pm
I welcome the fact that Parliament will today debate the report produced by Sir Frank Layfield following his inquiry. It is, after all, a debate for which we have had to wait four years since my predecessor made it clear that he appreciated the strength of a case for a debate in Parliament before a decision was taken. I have studied his views on that and very much agree with him. I have therefore decided that, without this becoming a precedent, it would be a good idea for Parliament to have the opportunity to express its views before I make a decision on the report.
I have the responsibility to take a decision on the Central Electricity Generating Board's application to build Sizewell B and today, before making this decision, I shall listen with care to the views expressed in the House. I shall comply with your request, Mr. Speaker, that speeches should be kept to 10 minutes because, although I have the CEGB's application before me. I am unable to express any views on the inspector's report until I make a decision and, for that reason, my role in the debate will be one which I have not previously experienced in my 25 years in the House and one to which I am totally unaccustomed—that of listening and providing no views of my own. I should, however, like to express my gratitude and appreciation for the work that has been done by the inspector and his staff. The inquiry opened in January 1983 and continued until March 1985, having heard 340 days of evidence. Sir Frank Layfield presided over the longest and most exhaustive planning inquiry in our history and he was assisted by a small secretariat and four skilled assessors. In fact, he and his staff dedicated several years of their lives to a painstaking analysis of the arguments for and against the building of a pressurised water reactor at Sizewell. It took from March 1985 until December 1986 to write the bulk of the report. The report summarised the vast quantity of evidence and it certainly illustrates the depth of this inquiry. Sir Frank Layfield prepared a summary of the report, which hon. Members and the public have found most useful. I should like also to express one other appreciation. Irrespective of the views which any of us may have of the recommendations or observations in the report, I think that we can agree that Sir Frank has succeeded remarkably in producing a well-written report which made the task of those who had to read the entire report far less of a burden than it would otherwise have been.For the purposes of the debate and on a point of fact in relation to the Department of Energy, can the right hon. Gentleman say whether the lowest oil and coal prices which the Layfield committee assumed were likely between 1990 and the year 2000 are higher than those which his Department thinks likely, given the recent fall in oil prices? This is a question about departmental judgment and the answer would help any hon. Members who are called in the debate.
I have no intention of commenting or making observations upon that or any other part of the report. I am advised that I should not do so.
Whatever decisions the Government make as to the forms of energy that we shall seek to develop, they are likely to have a profound effect for decades to come. The background to decision-taking on energy matters throughout the world is that this is the first century in which the world has been faced with energy problems. Nobody in the year 1900 would have predicted the quadrupling of the world's population, or the gigantic increase in industrialisation. Virtually all forecasts that have been made throughout this century have had one thing in common, and that is that they were wrong. In the main, they were wrong in underestimating the growth of population and industrialisation. None of us can predict with any certainty changes in population or industrialisation over the coming decades. The experience of this century and the nature of potential worldwide growth in the next century show that Britain and the European Community need to pursue energy policies in whatever form that can meet the potential needs of the future. I am sure that within the debate there will be mention not only of the contribution that can be made by nuclear energy, if that course is pursued, but of the contribution that will come from other forms of energy, some of which, such as coal, oil and gas, we already possess, and others, such as the sun, the wind, the tides and geothermal energy, into which research has taken place both here and abroad on a considerable scale. We also need to recognise the important ingredient of improved energy efficiency. In my judgment, an important contribution can be made to assist the balance between supply and demand. I know the interest and knowledge in the House on the diverse aspects of energy. My task today is to listen to the views expressed on both sides of the House during the debate. I hope that it is a debate of high quality in which constructive and creative views are expressed. I can only assure the House that, in coming to my decision, I shall take great care to note everything that is said in today's debate.3.47 pm
After the Secretary of State's short contribution to the debate, the Government are about to make their most important decision about the future of electricity generation. For eight years, not a single power station has been ordered. On all assessments, the ordering of new capacity must now take place with some degree of urgency. It was with some wonder that in the past we heard from the Government that no decision would be taken on power station ordering until they reached a decision on the proposal to build a PWR at Sizewell. The CEGB itself has got it wrong. It did not anticipate the increased demand for generating capacity. In fact, it went to sleep during the four and a half years of the Layfield inquiry. Now we have had reports that the CEGB requires an urgent go-ahead for new coal-fired stations. To delay further is to create continuing uncertainty in the electricity generating industry, in power manufacturing and in the coal industry. Yet to decide to go ahead with the PWR would be to go into a technological and economic cul-de-sac.
I agree with what the Secretary of State said about the industry and the application of Sir Frank Layfield and his colleagues. But the report is out of date. The inquiry closed in March 1985. Therefore, in over 3,000 pages of the report, there is no reference to Chernobyl. Since March 1985, the prices of oil and coal have altered dramatically. The conclusions reached in the report are based in the main on "substantial elements of judgment." Even without taking latter events into account, my assessment of the report is that the balance of judgment should be not to proceed with the PWR. Layfield's recommendation to go ahead with the PWR at Sizewell is based on two assumptions concerning estimates of future fossil fuel prices and probabilities of safety. Through no fault of his own, Sir Frank Layfield has been unable to take post-1985 events into account in reaching his verdict. However, the Secretary of State has a responsibility to judge the decision on whether to go ahead with Sizewell B, not merely in the light of the inquiry's findings, but having given due consideration to subsequent events. The economics of nuclear power compared with other forms of electricity generation have come under considerable scrutiny. In his report, Sir Frank Layfield commented:Sir Frank Layfield considered that an independent view of the cost benefits was so important that he introduced his own assessors, the Cambridge Energy Research Group. It was the group's submission on the then economics of nuclear power versus coal that convinced the inspector that nuclear power was a cheaper option. It is, therefore, of considerable significance that that same group has published an up-to-date assessment of the economic pros and cons. That report takes account of the major changes in fossil fuel prices since the end of the inquiry. The group has used the same formulas as an earlier Nuclear Energy Agency report, but, being a dispassionate observer, it has come to different conclusions. Mr. Evans and Mr. Bullen say in their report:"The evidence showed that the CEGB had significantly over-estimated the likely future price of both heavy fuel oil and coal."
"The results show that the once prevalent view that nuclear is cheaper than coal cannot now be used as a basis for rational decision making by utilities and Governments. This does not mean that coal represents the cheaper option, simply that the uncertainty is great and that under a broad range of assumptions nuclear power is unlikely to offer substantial economic benefits".
The House should be clear on this point. The right hon. Gentleman says that he opposes the go-ahead for Sizewell. Will he make it clear what the position of a Labour Government will be if Sizewell has been given the go-ahead? Will Labour cancel it? What will happen to people in my constituency who work at Davy McKee, Whessoe, Darchem and Press Construction, which might be working on the project?
I shall deal with the hon. Gentleman's valid point.
The National Coal Board's own evidence on future coal prices was generally accepted by Sir Frank Layfield. He was convinced by the NCB at the time, and noted thatSince that time the NCB has completely revised its views, and it presented its new projections to the Select Committee on Energy. Since the evidence was presented to the Sizewell inquiry, productivity in the coal industry has increased by 23 per cent. The Central Electricity Generating Board has negotiated a contract with British Coal that provides increasingly cheaper coal for our power stations. There can be no doubt that if the Layfield inquiry were taking place now, different and lower assumptions on oil and coal prices would be used. Assumptions on capital costs would also be different. Sir Frank Layfield accepted the CEGB's assertion that it had got capital costs under control, particularly in relation to Heysham B and Torness. We now know that that is not so. In Heysham B and Torness, as well as every other nuclear power station built in the United Kingdom, there have been substantial over-runs and capital cost increases."the NCB has used these projections as the basis for its own investment decision making".
I know that my right hon. Friend may not want to say a great deal about Torness, but will he comment on the fact that there are serious difficulties at Torness in relation to safety, which is delaying the commissioning of Torness? Will he give the House an assurance that we oppose the commissioning of Torness and that a whole host of factors follows from those difficulties?
I shall be asking the Secretary of State for a statement on the fuelling of Torness and the problems that have arisen. I assure my hon. Friend that I shall pursue those points.
Will my right hon. Friend give way?
No, I want to continue now.
By the CEGB's own admission, the capital costs have risen by 11 per cent. since it gave its figures to the inquiry and that is even before construction has commenced. The CEGB estimates that the cost to the country is now £1,550 million. We are dealing with a pressurised water reactor involving imported technology. The design and technology involved in the PWR will not be exportable by Britain. Indeed, the PWR is rapidly becoming out of date technology and the American designers, Westinghouse, are working on an advanced PWR in conjunction with the Japanese. In the United States, nuclear power is supposed to have been operating on a commercial basis since the early 1960s. However, it still receives a third of all federal subsidies. Last year, Forbes Magazine, the United States financial journal concluded:In this country, we are considering buying an American technology which the Americans have rejected. Since 1973, the United States has been cancelling orders for nuclear power stations, including the Westinghouse PWR, not commissioning them. In fact, the United States has not ordered a new PWR in the past 10 years. Modern coal-fired stations, however, provide an important export market for the United Kingdom. British design and construction of coal-fired stations leads the world market and a most modern advanced station is currently being built in India and is breaking both cost and lead time estimates. It is vital for our power manufacturing industry that the industry is able to use its newest designs, incorporating techniques for cleaner coal burn, in the home market to maintain and expand export potential. Further delays in placing those orders, be they bureaucratic blind alleys or lack of political will, continue to undermine the ability of the power manufacturers to maintain jobs and create wealth for this country. A similar position exists with regard to the retrofitting of the flue gas desulphurisation in existing coal-fired power stations. Since the Secretary of State for the Environment announced six months ago that a programme of retrofitting was to take place, no action appears to have been taken. Perhaps the Secretary of State can tell us what progress is being made. It is not simply the power engineering industry that is affected by such decisions. The PWR at Sizewell and the desires of the CEGB to extend that to a family of PWRs throughout the country will have an increasingly detrimental effect on the British mining industry. Britain's mining technology is exported throughout the world. The industry employs more than 80,000 men and women and between 30 per cent. and 50 per cent. of their production is sold abroad because they are able to develop their equipment in the home market. British Coal has operated positive purchasing policies to enable that to happen. Both need to be able to plan ahead. To do that, they need to know that there is an expanding future market for British coal. The arguments about the jobs potential of Sizewell B are deliberately misleading. We know that coal-fired power stations require more personnel to operate them. We have been told by leading power manufacturers— and I have met many representatives of these manufacturers in recent weeks—by NEI, Babcocks and GEC, that more employment is generated in the construction of coal-fired stations. To increase nuclear power in this country is to displace many thousands of jobs in the mining industry. The cost to the nation, let alone the social cost to mining communities and others, of further cuts in that industry must be offset against the cost of nuclear power. Contrary to the Government's propaganda, nuclear power looks increasingly more expensive. That was highlighted by the reports received by many of us this morning from the Council for the Protection of Rural England and the Town and Country Planning Association, among others. How, in those circumstances, can we expect the promised cheaper electricity'? We have been told to look to France as an example of the fulfilment of that promise. The French electricity supply industry is the only one in Western Europe and the United States to have consistently made a trading loss. The 2 billion francs borrowed for its nuclear power programme has made France one of the heaviest borrowers of foreign exchange in the Western world. But has it provided cheaper electricity for consumers? Between 1975 and 1984, electricity prices in Britain doubled; in France, they trebled."nuclear power is an option nobody in their right minds would now consider seriously."
Does my right hon. Friend agree that Electricil de France is the largest corporate borrower in the world and is largely responsible for the fact that France is the third biggest borrower in the world? That has never been mentioned by the scores of hon. Members who, during the past three years, have been trumpeting cheap French nuclear power.
My hon. Friend has underlined graphically the points that I have just made. In France, prices to industry are kept artificially low, but prices to domestic consumers are the third highest in Europe and 17 per cent. higher than the average in the United Kingdom. Let us not follow that example.
The inquiry report dismisses other sources of energy, including combined heat and power and the Severn barrage, as not having reached the stage where they can be considered as alternatives. It is vital to the long-term future of our energy resources that the Government give a higher priority to the development of those schemes. As well as stepping up research into all forms of renewable energy resources, a start should be made to the CHP lead city scheme and to the Severn barrage. I welcome the steps that the Government have taken recently to put more money into the Severn barrage, but we need much more investment in the alternatives. We have always argued that energy policy should not be based solely on narrow economic criteria. The Government have always argued that that is a sound basis for deciding the future of our energy resources. It would be extraordinary if they did not apply the same stringent balance sheet approach to the nuclear industry as they have consistently applied to mining, steel and shipbuilding. During the past 30 years, nuclear energy has received a total Government investment more than 40 per cent. greater than that given to coal. But coal and other energy industries must shoulder the burden of their own research and development. Only the nuclear industry has a separate account for part of its research and development, yet, despite the Government's investment, it proposes to import nuclear technology. The construction of the PWR would not only have no economic benefits, it would have serious side effects on jobs in other sectors of British manufacturing, especially in coal mining. On the Government's narrow criteria, the case for Sizewell B is not proven. But the decision on Sizewell B cannot be based only on those criteria. Having considered the economic case, a judgment must be made on whether the risks involved in an extension of nuclear power outweigh the benefits. Layfield is on less secure ground here, even in his now out-of-date report. At one stage, he comments:As the world knows, accidents can and do happen. Layfield was unable to take into account the ramifications of the Chernobyl incident in the Soviet Union. I must put these points to the Secretary of State, bcause the public are asking questions to which we demand an answer. Has he raised that omission with Sir Frank Layfield? Did he at any time seek a reopening of the inquiry? Has Sir Frank Layfield corresponded with him on this issue and, if so, will he make that correspondence available? It is extraordinary that Sir Frank Layfield should spend four and a half years on a report, yet a major disaster in the Soviet Union is not taken into account by the inquiry. At the very least, the inquiry should have been recalled to deal with that. I accept that safety in the British nuclear industry is as good as any in the world. Undoubtedly, engineering expertise can minimise the risk, but no superiority of design can write out human error. Sir Frank concluded:"there is no such thing as absolute safety. Experience has shown that accidents will happen."
Is it not vital that "some such methods" are devised before a judgment is made and that they are not left to some time in the future? The evidence of the Three Mile Island incident, which was studied by the inquiry, only goes to prove that the potential for human error cannot be ignored or shunted aside, but must play a considerable part in reaching a decision. That is not the only area of safety considerations that the report leaves open-ended or up in the air. No preconstruction safety report has yet been submitted to the Nuclear Installations Inspectorate, despite the fact that the Select Committee on Energy recommended— it was accepted by the Government— that the site licence should be given by the NII before the inquiry. The NII still cannot grant that licence. Layfield recommends that the preconstruction safety report be published. Can the Secretary of State give us any idea— if not today, certainly soon—whether that will be the case, when we might expect it and whether he will make a decision in the absence of such a publication and licence? The House is entitled to that information."the evidence on human factors shows that the effect of human error on safety is potentially large. There are no reliable methods yet for quantifying human error. Research and development work is in progress and some such methods should be devised for use in the future."
Those of us who live in the vicinity of Sizewell and have wrestled with the matter would like the right hon. Gentleman's advice on this issue. Since the French pressurised water reactors on the Channel coast could present us with a problem of nuclear safety, how would it reduce the risks of nuclear accident in this country if the Labour party abolished PWR here?
Our point is that the PWR has not been constructed in Britain, so if we did not proceed, at least it is an element of safety. Unfortunately, we can do nothing about the French development, but at least we would be drawing to the attention of the world the fact that such a development is unnecessary. In an energy-rich nation such as Britain, it is certainly unnecessary.
Sir Frank Layfield seems to be prepared to leave the decisions on safety to the CEGB and the NII. He placesBut, on the inspectorate's own admission, the business of assessing the safety of new nuclear projects is well behind schedule because it is understaffed. Giving evidence to the Select Committee on Energy in January, Mr. Eddie Ryder, Her Majesty's chief inspector of nuclear installations, said:"great importance on the Nirs role in monitoring the development and implementation of the quality assurance programme for Sizewell B."
The question that we must ask the Secretary of State and the Government is why the inspectorate is understaffed at a time such as this when there is public concern. What steps are the Government taking, prior to making their decision on Sizewell, to ensure that the NII can fulfil its crucial role of monitoring the safety of existing plants? Layfield makes important recommendations with regard to operator training and safety, military security and increased research into the effects of radiation on the public and workers. He recommends:"Our priority is the safety of operating installations. For those being designed or under construction we face a choice of reducing our standards or delaying the work. We chose to keep up the standards and delay the new projects."
Such training is obviously necessary, and the fact that it must be done for 12 months will affect the cost. The danger is clear if Layfield accords training such priority. Later, he recommends:"fuel loading shall not start until at least one year after a simulator for Sizewell B has been installed and is ready for use by training operators."
Layfield urges:"the Secretary of State for Defence should consider whether there are practicable means of reducing the number of breaches of the Provost Marshal's ban on military flights within a defined air space around the Sizewell site."
None of those precautions is necessary for a coal-fired power station. When assessing the evidence of radiological risks to the public and workers at the plant, Sir Frank Layfield recommends further co-ordinated and analysed studies to be made. The inadequate OPCS report, which was put in the Library last week, is an even more convincing reason for the research to be undertaken as a matter of urgency. My hon. Friend the Member for South Shields (Dr. Clark) will deal with that if he catches your eye, Mr. Speaker. These and the many other recommendations made by the Sizewell B inquiry report must be accepted and acted upon if the Government make the ill-judged decision to proceed. Would it not be better, safer and more economically sound not to have to pursue these drastic measures? The Government need not pursue them if the political concentration was not to further weaken the markets for coal. All this was before the Chernobyl disaster. How much more stringent would Sir Frank's safety recommendations be if he could take evidence on the effects of that disaster? The Chernobyl accident took place 1,600 miles away and almost 12 months ago, but our farming communities are still suffering the after effects. The world has realised that nuclear power is rightly called an unforgiving technology. To ignore the risks is to ignore the effects on present generations and generations to come. Sir Frank concluded that Sizewell B should be built only:"the NII should satisfy itself that the possibility of both generators being out of synchronism with each other and with the grid would not give rise to an intolerable risk".
Nobody believes any longer that that remains the case.The economics have changed and the probabilities of safety have changed. Public acceptability has certainly changed. In a caveat to his recommendations, Sir Frank Layfield stated:"providing that there is expected to be economic benefit sufficient to justify the risks incurred."
Out latest estimate of the public's view is that two thirds oppose any increase in nuclear power. The public do not believe that the risks are worth taking."consent should not be given for building Sizewell B unless the risk is confidently expected to be at or below a broadly set level of tolerability. The level of tolerability should so far as practicable reflect the public's views".
As the right hon. Gentleman is now talking about nuclear power in general, I wonder whether he could enlighten the House on a related and important matter. What would be the stance of his party, if it came into government, on existing contracts for reprocessing at Sellafield and on future contracts? The House needs an answer to that question.
The Labour party has published its policy, which is clear for all to see. We are debating Sizewell B and I am restricting my remarks to that. My party's policy is absolutely clear.
Let us hear it, then.
The hon. Gentleman can read it. If he does not have a copy, I shall send him one.
On all the criteria—on economic grounds, on safety grounds—the case against Sizewell B is the strongest. For the Government to go ahead would be to fly in the face of all rational assessments of our future needs. We urge the Government to reject the recommendations of the Layfield report. If they decide to go ahead, we shall reverse that decision. To end delays, we will strengthen our electricity generating capacity by giving the go-ahead for a programme of modern, clean coal-fired stations. That is the case that I put before the House on behalf of the Labour party.On a point of order, Mr. Speaker. It is a bit churlish to criticise the Secretary of State, because he said that he would listen to the House. My point of order concerns the treatment of the House. Is it not ludicrous to be asked to have rational and informed debate without the latest predictions about 1990 to 2000, which exist in the Department of Energy, and which are substantially different from the projections which Layfield had? I am not blaming the Layfield committee in any way—
Order. That cannot be a point of order for the Chair. I know that the hon. Gentleman is anxious to take part in the debate, and those are just the type of arguments which he should raise if he is called.
4.16 pm
As my right hon. Friend the Secretary of State said, the Layfield report is a painstaking and thorough document. There have been criticisms that its terms of reference were too wide. I do not agree. It is helpful and valuable to have such a comprehensive and detailed report which is such a massively studious and expert document. It provides a good start for the House to hold a debate on this important issue.
The arguments that the right hon. Member for Salford, East (Mr. Orme) advanced have been made informally outside the House and are quite familiar. They are that the Layfield report is outdated, although the right hon. Gentleman acknowledges its thoroughness. He made two groups of charges on that score. One relates to the outcome of Chernobyl and the lessons that we should draw from it, and the other relates to the changed economics, the evolution of oil and coal prices since March 1985, and whether they do not undermine the Layfield arguments in some way. I should also like to explore a third set of considerations—conservation and other forms of investment and the inevitable inflexibility of huge 10-year investment, during which time many things can change. Before we give this gigantic project an affirmative or negative view, we must understand the advantages and dangers of that inflexibility. Chernobyl was a major disaster and of extreme concern to the entire human race. It must be understood, however, what we were looking at and what the Russians were dealing with. We were lucky in that my right hon. Friend the Secretary of State had the opportunity of a close examination of the Chernobyl affair and, unusually, the Soviet authorities decided to be extremely explicit and set out the nature of the problem and what went wrong. The first point for the House to understand and for the right hon. Member for Salford, East (Mr. Orme) to accept, which I am sure he will, is that in the case of Chernobyl we are looking not at pressurised water reactors but at an entirely different generation of pressure tube reactors, which grew from military developments and were rejected by all Western countries four decades ago. In the Western world there is no civil nuclear reactor in any way related to the technology which the Soviet military authorities used and later handed to their civil engineers to build pressure tube reactors. As the House now knows, the feature of pressure tube reactors is that they are unstable below 700 MW. The theory of the Soviet authorities was that instructions to human beings were sufficient to ensure that the reactors were never run below 700 MW. That theory with its reliance on human error has never been applied at any point in Magnox or AGR or any other design in the West. In other words, we build nothing like the Chernobyl reactor. I do not minimise the horror of what happened at Chernobyl, but those who see a comparison between the design of Chernobyl and the design of existing, let alone future nuclear reactors of the kind proposed for Sizewell and possibly elsewhere, are making a comparison between two completely unlike and separate technologies, systems of engineering and scientific patterns of development. That is my view of Chernobyl. It justifies us being concerned about Chernobyl, but it should not lead us to believe that it invalidates the argument for Sizewell.I am trying to follow the right hon. Gentleman's argument. He says that the Russian reactor is a different type and that there is no comparable reactor in the United Kingdom. Surely the right hon. Gentleman must agree that one factor emerges—that civil nuclear power is an unforgiving technology. Sizewell B has not yet been built and his argument about it requires a little bit of elaboration. On the one hand we have an unforgiving technology and on the other we have a proposed nuclear reactor which has not yet been built.
I do not think that this debate will allow time for the elaboration that all these complex issues require. The technology at Chernobyl grew from a pressure tube military technology of 40 years ago that was abandoned by the Americans, the British and the whole of the West more than four decades ago. The comparison does not stand.
The second major charge laid by the right hon. Member for Salford, East and by many people is not a matter of party politics but one that we must try to examine dispassionately. It is the matter of economics. With the building of more nuclear stations are we heading towards cheaper electricity or will it become more expensive? If that were the case we would be foolish to ask taxpayers to do what business men would not do—invest over 10 years in an enormous project for a lower payback than might be obtained from other kinds of investment. The first question to be addressed is how much weight we put on the variations in fossil fuel prices. At the time the Layfield committee was set up or even since it concluded the oil price first dropped through the floor and then came roaring up again. No one has the slightest clue about how oil prices will shape over the next five or ten years. The oil companies have always been spectacularly wrong. In 1979 they predicted that by now we would have $50 or $60 oil barrels, but we have no such thing. The estimates are heroic but nearly always wildly out or thwarted by events. To a lesser extent the same is potentially true of coal. In the free market in Rotterdam coal is changing hands for about $30. I think that the CEGB is paying up to twice that to the British coal industry and that price could go higher or lower. With great respect to the right hon. Member for Salford, East one cannot base a technology and commitments that will last 10, 20, 30 or even 40 years on very temporary and largely unpredictable trends in fossil fuel prices. The reason why I feel confident to recommend that the right hon. Gentleman should ignore those trends is that in a sense his case is in a plate in front of him. There will be more coal-fired power stations. Everyone knows that more coal-fired stations will be built in Britain and all round the world. As long as British coal is competitive with imported coal, is of high quality—which it is— and is mined efficiently—which in most cases it is—there will be an excellent future for the British coal industry, our mining communities and for our deep-mined coal technologists. When the right hon. Gentleman puts up the case for coal he is not putting down the case for nuclear power. All he is saying, and most people will agree with him, is that we will continue to have a substantial coal-fired electricity generating capacity. The question that he and all of us have to address is how heavily in the 1990s and thereafter do we want to rely for our electricity supply on coal. Do we want the 80 per cent. reliance we have had in the past or have we not learned some bitter lessons from that? Regardless of party, most people would say that we have indeed learned some bitter lessons and that prudence dictates a more balanced electricity generating capacity in future. We need a certain proportion of nuclear power—possibly somewhat higher than we have now and perhaps nearer the German or Japanese levels, as well as a substantial, efficient coal generating capacity. Oil and natural gas will possibly be burnt in power stations and we may have the more diverse technologies which my right hon. Friend the Minister has mentioned. These will make for a better balanced future generating capacity. Coal has a place in it, but so has nuclear power. If we are to expand our nuclear capacity somewhat, which is essential, how should we do it? The price tag for the pressurised water reactor is now £1,550 million. I am advised that a second one would not carry launch costs and would be substantially cheaper. I take the view that it could be very much cheaper still. I should not like anyone to attribute to me the view that I endorse all the costs that arise from the CEGB's operations. Britain still builds and operates power stations too expensively. I am not entirely convinced that a gigantic, centralised organisation like the CEGB is the ideal format for electricity generation for the next 20 years. The Japanese electricity supply industry has 13 per cent. more staff but produces three times as much power for two and a half times as many customers. Perhaps we can get many more efficiencies and larger cost reductions from building the next nuclear power station than the £300 million that has been mentioned. On the overall economics, it is not possible for the right hon. Gentleman to take the trends of the past two years in either coal, oil or natural gas prices and build up a gigantic case for the next 10 or 20 years which says that the Layfield argument is wrong. If we are to have a balanced supply we need more nuclear power. Perhaps not the 40:1 ratio that Layfield recommends, but it is likely that nuclear power stations, if built and operated efficiently, will produce cheaper electricity. If that is true we would be crazy not to have an expanded nuclear element in our power supply. Finally I should like to speak about the whole question of inflexibility. Is it right for us to go nowadays for giant investments that take 10 years to produce any payback, or should we look at small operations and investments of the kind that are employed in some of the American utilities? They are much quicker to build and because of that can be financed by the private market. There is much less risk involved if, while they are being built, the whole demand pattern changes. There is room for these developments, but they do not exclude further nuclear power. We shall see more 10-hour-a-day gas turbines being built in the United States. They can supplement the base load which has to be provided by nuclear power and coal and will continue to do so. It is interesting to note how daily electricity demand in Britain has changed even in the past five years. There are now fewer sharp peaks and a greater opportunity, on top of the base load of fixed stations, to have smaller turbines coming into action for about 10 hours a day. I share with my right hon. Friend an enthusiasm for alternatives such as wind, wave and sun power, but they will be unable to provide the 8,000 to 17,000 additional MW about which we are talking for the next 15 years, although they can and should make a contribution. Perhaps we should have another switching station. I was able to authorise one at Sellindge in 1981. When all the lines are working, that will bring in 2,000 MW a day of French electricity. I do not know what the price is to the French, but it is certainly much cheaper to us. The French have surpluses, and while we should not rely on them for ever, perhaps we should invest another £380 million for those 2,000 MW as that is considerably cheaper than building our own power stations. When all those things have been done, we shall need very big stations to provide the base load, and I believe that such stations will have to be a mixture of coal and nuclear, whether the industry is publicly or privately owned.Does the right hon. Gentleman believe that a privately owned and privately financed electricity industry would embark upon the Sizewell project without subsidy or guarantee?
I have studied the economics of the Kansai Electric Company in western Japan, which is building something very similar to the Sizewell plant, although with certain elaborations. It is doing so with private finance and without subsidy. Therefore, perhaps our private system could do so as well.
It has been argued that if our electricity supply industry was private it would never again build nuclear, but I do not think that that argument stands up, as many private utilities around the world—although not at present in America—are now doing so. Nuclear power in the West has proved by its record that it is as safe as most forms of power generation. In fact, it is very much safer than many other forms of power generation. It is a sad fact that, tragically, deaths occur in our usually very safe mining industry. It is also a sad fact that hydro-electric dams come to bits and are destroyed. Someone told me the other day that 50 had collapsed in the last 50 years. Therefore, they are not very very safe either. Of course there are risks. There is no such thing as total safety, but there is such a thing as efficient and total containment of any accidents that occur. I believe that our nuclear industry and nuclear engineers are fully able to deliver that level of safety.Will my right hon. Friend give way?
I am just about to finish as I know that many other hon. Members wish to speak.
My conclusion is that while we should be cautious about the economics, it is right to go ahead and build the PWR at Sizewell now. That will give us a better balance, better economics and a safer supply of electricity to old and young, industry and the nation, for many years to come.4.33 pm
While agreeing with some of the observations of the right hon. Member for Guildford (Mr. Howell) in respect of some of the alternatives that the Department of Energy should be pursuing, I nevertheless flatly disagree with his conclusion. I want to look principally at the economic and safety arguments.
Sir Frank Layfield was asked to make his report on the three principal questions of national policy, the economic benefits of the PWR, and whether it was necessary and whether it was safe. At the time the CEGB argued that its justification for the reactor was largely on the grounds of anticipated cost savings rather than capacity requirements. The board has subsequently changed its position to the one that has just been argued by the right hon. Member for Guildford— that the PWR is required on the grounds of anticipated shortfall in capacity. It bases this change of view on an unexpected rise in electricity demand. Therefore, in coming to his decision, the Secretary of State must first look at the record of the industry in forecasting demand. I have in front of me the table of forecasts which the CEGB has given to the public from 1967 to 1979 which cover the years 1973 to 1986. I shall not weary the House with all the detailed figures, but throughout that time the CEGB's record on forecasting has contained an average error of 26 per cent. These errors have always been over-estimates in demand. Frankly, errors of that scale make opinion polling look like an exact science in comparison. I do not believe that we can possibly rest our case on the industry's track record in forecasting demand. The hon. Member for Edinburgh, East (Mr. Strang) mentioned Torness. I took a particular interest in that inquiry because of my constituency interests in that project. In the public inquiry in 1974, the South of Scotland Electricity Board predicted a 6 per cent. growth in demand per annum. By 1980, it was possible to assess just how accurate that had been, and our own Select Committee pointed out that the real figure had been 1 per cent. In response to that Select Committee report, the SSEB revised its forward estimates to 1·75 per cent. growth per annum, yet in the six years since then the growth has been only 2·2 per cent. over the whole period. As parliamentarians we are entitled to say that the industry's forecasting record is not one on which we can possibly base a case for making this investment decision now. But even if we accept that, contrary to all previous experience, the board has got it right this time, I would still argue that constructing a PWR is a wholly inappropriate response. Load management and electricity-specific energy conservation would reduce demand more quickly than new capacity of any kind could be constructed and at less cost. I was cheered by the Secretary of State's reference to, and acknowledgment of, the scope for still further conservation measures. That is absolutely correct. There is now an abundance of evidence from the United States that this is by far the most attractive priority. More recently, the Norwegian electricity industry has found that it is cheaper to reduce demand than to build new capacity. Here this House has responsibility, because in my view it is simply the rigidity of the CEGB's statutory basis and its institutional obsession with new power station construction that prevents it from taking full advantage of these opportunities. Were we to change the statutory requirements of the CEGB from providing electricity at the cheapest price to making the most economically effective use of its fuel and capital resources, that would go a long way towards allowing British electricity consumers, both industrial and domestic, access to the benefits that are already available in other countries. In any case, if new capacity were to be required at relatively short notice, new nuclear capacity is surely the least attractive option. That is particularly true if, as the board is now proposing, that new nuclear option is of a design of which it has no previous experience, either in construction or operation. I accept the point made by the right hon. Member for Guildford about the prudence in public policy of achieving a variety of supply. That is the basic weakness of the Labour party's case. It wants to take us back to a position in which we are over-dependent on coal production, despite the history of that sector. Our first national priority should be to implement life extension programmes at some of our existing fossil fuel power stations. If we introduced a programme of rewiring generators, repiping boilers and reblading turbines, the life of those existing stations could be extended, their efficiency and economic performance could be improved, and in our view a regular programme of much-needed employment could be directed to the British electricity supply industry. I am not talking about new stations but about revamping what we have already. The second priority should be to implement a programme of combined heat and power generation. We should insist that the CEGB implements the provisions of the Energy Act 1983 and allows more privately generated electricity to be supplied to the grid. Nothing so much displays the contempt of the board for the interests of the consumers or the wishes of Parliament as its failure to take advantage of the opportunities that we created by that legislation, or for that matter its current decision to sell off the sites that could be available for combined heat and power. I understand that at present there are 64 disused sites, of which 19 have been demolished and 33 are up for sale. Surely, as a matter of national policy we should be arguing that combined heat and power must have a far greater part in our programme. The right hon. Member for Guildford paid lip service to this, but we are in danger of under-estimating the potential of new energy sources, such as the tidal barrages. As with other major projects, I accept that there must be. environmental impact assessments. These are going on at the moment, especially on the Severn and the Mersey. Their capacity for producing power at low cost, although not admittedly in great volume, could be immense. More important, barrage schemes could and should by now have provided considerable new technology with export potential for this country. It is only after all those measures have been taken that any new centralised generating capacity of any sort should be considered and authorised as a sensible forward investment. Neither I nor the alliance adopt, a flat earth policy to the nuclear industry. We accept that it is possible that in future an energy gap may come up. That is why we continue to support the industry's research and development. We believe that in the immediate future there is no need for further commercial expansion of nuclear power production. Therefore, we would not proceed with this proposal. The Layfield report's dismissal of the conservation and combined heat and power arguments is rather cursory. Sir Frank Layfield seems to have wholly misunderstood the attempts that have been made to compare public investment in conservation with that in new supply, regarding the former as some sort of public subsidy. He also assumes that there is no competition for capital and that money is available for any worthwhile investment. It is instructive for the House to note the recent report of the Comptroller and Auditor-General in which he said that energy management schemes in the National Health Service with a payback period of only two years were being stalled for lack of resources. That seems a short-sighted saving within the Health Service. It is now widely accepted that the Layfield assessments of costs and benefits have been superseded by events since the ending of the inquiry. Although I accept the view of the right hon. Member for Guildford that the changes, for example in coal prices, may be temporary, nevertheless we must look at the balance sheet that was put in the suggested costings in the report as against what has happened since. Changes in the forecast of future coal prices and the rise in the real capital cost of the PWR have transformed a potential net benefit of £500 million over the life of the plant into a potential net loss of about the same range or even up to £1,300 million. The Central Electricity Generating Board has already agreed that the capital cost has increased by 11 per cent. in a year. That alone, on the Layfield report's calculations, will reduce the economic benefits of the PWR to near zero. The assumed world coal price in the year 2000 was $75 a tonne, yet British Coal, quite apart from forecasting a world coal price of around $40 a tonne, is also stating its intention not to produce coal at any price above about $60 a tonne. Its plans schedule any pit operating at above that price level for closure. To have one section of our energy industry operating on that assumption while another operates on a much higher long-term price level cannot be right. Surely some judgment must be made by the Department of Energy. The report's assumptions acknowledges that there is a one in four chance that the PWR would lose money. I would argue, that on those revised figures, the balance now tips precisely against the PWR when compared with any of the other alternatives, including electricity. The overwhelming probability is that, even if the PWR were built on time—that is a feat that has not yet been managed for any British reactor—and even if its capital costs do not increase further, contrary to almost any previous experience anywhere else in the world, and its availability over its lifetime is as promised, it will still prove to be a burden and not a benefit to the electricity consumer. The obvious course that the Government should adopt if they really believe in the economics of the PWR, is to do what they have done with the Channel tunnel and other major developments and that is to say, "All right. Let us invite private participation in the enterprise." The Government put great faith in the market place and the PWR. If the Government had the courage of their convictions, they would let one be the test of the other. [Interruption.] That is not Liberal policy. The Government will not do that either. But if the Government had the courage of their convictions, that is the logic of the case that they would put. The Layfield report and its conclusions have been rather misrepresented. He says:Since the primary purpose of the whole inquiry was to assess the safety arguments and reassure the public, that is a rather startling omission. There were repeated ministerial promises and promises by the nuclear installations inspectorate that the final safety case would be available before the inquiry was completed. Of course, that was not available, and it is still not available. The question that I hoped that the Secretary of State might have mentioned, although perhaps he will when he replies, is: when will the departmental decision be taken in relation to the forthcoming nuclear installations inspectorate report? I am assuming that no decision will be taken until after that report is received. Yet, we have already been told, and the Select Committee was told only last month, that the nuclear installations inspectorate, as the official Opposition spokesman, the right hon. Member for Salford, East (Mr. Orme), mentioned, has not been fully staffed at any point in the past five years and that it failed to complete the 20-year safety reviews of the magnox power stations on time. Indeed, two of the 24-year-old stations have still not been completed, and the inspectorate has failed to provide the Sizewell inquiry with the assessment of the safety case. That is an important matter and not one that we can simply shrug aside. It is just as well that we are debating this on the Adjournment and not as a formal motion. I do not see how we could because the House would not be in a position to come to a conclusion until that report was available. The quotation in the report that particularly worries me is:"I was not able to base my conclusions on a final safety case for Sizewell B, as none was submitted."
The report also states that the safety criterion"the quantitative assessment of risk from Sizewell B has a high degree of uncertainty".
Here I come to the Chernobyl question. Since Chernobyl there have been studies in the Oak Ridge laboratories in the United States which suggest that we might expect a major accident on the scale of Three Mile Island or Chernobyl once in seven years in western Europe, or once in 15 years in eastern Europe. What disturbed me most about the Chernobyl episode at the time that the facts and figures came out was that the Soviet scientists and, indeed, Soviet Ministers, had given the figure to the Soviet public at the time of the construction of Chernobyl of the possibility of an accident once in 10,000 years. That was precisely the same figure that was used by the Americans in the case of Three Mile Island. Therefore, despite the complete difference between the two, that I wholly accept, the basic risk figures for those relative populations, with different technologies, were precisely the same basis."has not been fully justified".
It is not only different technologies. At Three Mile Island no one died. Therefore, there is also a total difference, in circumstance which the right hon. Gentleman should bear in mind.
I accept that, but I am talking about risk factors which are a matter of legitimate public concern. The same figure, once in 10,000 years, was given in the Soviet Union and in the United States for entirely different technologies. I have just quoted to the House the latest assessments given by the laboratory in the United States.
We can all argue to what extent we allow risk to the population, but one thing cannot be disputed is that since the Chernobyl incident, the costs built into the project for insurance have multiplied. The estimate I received is of a tenfold increase. That increase has arisen since the Layfield costings were done. Therefore, it is an additional cost factor that must be updated and put into the accounts. In these circumstances the principal conclusion to which Sir Frank Layfield came was worded somewhat obscurely, or ambiguously. He said:I read that statement over arid over again. It is a statement that is in danger of achieving circularity. If it has any meaning it is to suggest that if economic benefits are sufficiently large to justify the risks, the reactor should be sufficiently safe to be tolerable. In other words, some risks are acceptable only if the economic benefits are sufficiently large. If follows that if there are no economic benefits, as I believe, the risks are not tolerable. Since it is now clear that the purported economic benefits will not materialise, had Sir Frank Layfield been aware of the subsequent factors, it is at least arguable that he would have been compelled by his logic to find against the PWR on safety grounds alone. There have been several questions to the Secretary of State, one only last week from my hon. Friend the Member for Berwick-upon-Tweed (Mr. Beith), about the Government's review of emergency and safety procedures in the light of Chernobyl. The Secretary of State answered all those questions by saying that he was still in a quasi-judicial capacity; so could not give the House the information sought. That is a little disturbing, because pre-Chernobyl the United Kingdom's emergency plans provided logistic arrangements to evacuate a maximum radius around nuclear power stations of one and a half miles. In the United States the plans cover a radius of 10 miles. However, in the Soviet Union evacuation of the civilian population had to take place up to 90 miles from the power station. It is important that we know at some time, if it is not possible now, what the Government's revised planning is and what its cost implications are. That, too, is post-Layfield and must be included in the figures. My colleagues in Somerset county council told me that when they put forward their new emergency plans for Hinkley Point, the CEGB refused to co-operate in extending the area covered by the plans. At some point the Government must make clear their view on that position, and the extra costs involved. The report has gone some way towards clarifying the public debate about PWR generation. Our alliance parties are certainly not convinced of the case for it on either economic or safety grounds. The disposal of nuclear waste and emergency procedures are far from clear. Therefore, we see no case for ordering Sizewell B nor for proceeding with similar reactors at Druridge bay or Hinkley Point. Given that opposition, my conclusion and advice to the Secretary of State is that it would be highly irresponsible to proceed with Sizewell B in advance of a general election."there should be good confidence that Sizewell B, if built, would be sufficiency safe to be tolerable, provided that there is expected to be economic benefit sufficient to justify the risks incurred."
4.52 pm
The Sizewell B inquiry has taken an inordinate length of time, but it has achieved two purposes. First, it has dealt with the installation of a PWR, redesigned by the CEGB with safety in mind. It has taken in the lessons of Three Mile Island and the experience of the operation of PWRs in other countries. Secondly, the inquiry has dealt with the suitability of Sizewell B as a site for the first reactor of this type in Britain.
As a member of a Council of Europe committee that has visited installations in France and elsewhere, I have been given the impression that our procedures tend to make us the laughing stock in other countries. Nevertheless, given that we have these procedures, I congratulate Sir Frank Layfield on completing a tremendous, almost impossible, task and on the way in which he has presented his findings. However, I genuinely wonder whether public inquiries of this type are the best way to tackle such difficult, complex technological and environmental issues. I hope that the Government will look into that. I read with interest Sir Frank Layfield's comments on the successor station to Sizewell B. I spoke in the debate on Chernobyl. At that time the cost of energy to industry and energy strategy seemed vital issues. Indeed, they have been my study and interest. I am well aware that, in the late 1960s and early 1970s when I was a member of the Science and Technology Select Committee under the chairmanship of the late Mr. Airey Neave, it advocated the development of the steam-generated, heavy-water reactor. At that time I was among those who felt that others were too far ahead of this country in the development of the PWR reactor and that Britain should pursue another type. Since then—15 to 20 years ago—the PWR has proved itself. The public debate on the Chernobyl accident went wider than this country and I have come across it in the Council of Europe. Perhaps the fear is the fear of not knowing what radioactivity is. The challenge suggested at a meeting in Berne was to let laymen know how it is measured. Such terms as sieverts and curies mean little to him. The measurement of radioactivity in simple terms so that the man in the street can understand it is a challenge. My approach to the Chernobyl debate was international. In 1955 I was with the Westinghouse team, admittedly for odd industrial reasons, selling the PWR. That was at the first Atoms for Peace conference in Geneva. Since then a large number of PWRs have been brought into operation throughout the world and 75 per cent. of France's electricity is generated by the PWR. I am certain that the hon. Member for Midlothian (Mr. Eadie) remembers replying to a Western European Union debate for me when I was the rapporteur on the subject of Europe's capacity for building reactors. The trouble is that Britain did not move with the rest of Europe at that time. There are 318 PWRs in the world. In France there are 43 in operation and 14 more under construction. All this nonsense—to other countries—about Sizewell justifies some of the comment that I have had from those who have led the way. There is the syndrome that nuclear energy, whether nuclear-fired electricity generation or low-level or high-level nuclear waste disposal, is fine but not in one's back garden. I very much hope the Secretaries of State for Energy and the Environment will arrange financial incentives, perhaps for local communities, so that rates are low where people are affected by this problem. I have been worried about the impact of energy costs in Britain. The National Economic Development Office has been involved and there have been representations from many industries led by Lord Gregson. If energy prices in general and electricity prices in particular are available to our competitive industries at lower prices, because of the reduced cost of production, our industries will be at a disadvantage. It must be appreciated that the French will have surplus electricity generating capacity which they can produce and sell well below Britain's prices. It alarms me that at present this country wishes to attract melting and smelting from other countries, including the United Kingdom, to France on those grounds. That is an entirely different story from that put forward by the right hon. Member for Salford, East (Mr. Orme).