The force on a charge with velocity $\vec{v}$ in a magnetic field $\vec{B}$ is given by the Lorentz force, which is proportional to the cross product $\vec{v}\times\vec{B}$, which means that if $\vec{v}$ is perpendicular to $\vec{B}$, the resultant force is always perpendicular to $\vec{v}$, so no free flow in a given direction is possible. The charge is just moving around in a circle about the magnetic field line. Only parallel to the latter is a free flow possible i.e. do we have a good electrical conductivity. And inside a good conductor any externally applied electric field will be quickly neutralized as charges can easily move around such as to set up a force free state. A field will only be noticeable outside the conductor.
Having said this, the paragraph quoted by the OP is actually not quite correct, at least not out of its context (which I don't know): even without any magnetic field it can support an electric field in case of inhomogeneities of the plasma or border effects. These lead to some degree of charge separation and thus to a so called plasma polarization field even inside the plasma (which however in this case is strictly speaking not locally neutral anymore).