HL Deb 26 June 1974 vol 352 cc1470-3
LORD SHINWELL

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what target has been set for coal production for the present and following two years respectively; and to what extent it is likely to be reached this year.

THE MINISTER OF STATE, DEPARTMENT OF ENERGY (LORD BALOGH)

My Lords, the National Coal Board's target for deep-mined coal output in this financial year is 120 million tons, which with about 10 million tons from opencast workings would give a total output of about 130 million tons. Deep-mined output is currently at a rate of about 113 million tons a year which is substantially below the rate achieved before last year's industrial action. The Board and unions have launched a joint production drive designed to achieve the 120 million tons target. Specific targets have not so far been set for either 1975–76 or 1976–77.

LORD SHINWELL

My Lords, I am obliged to my noble friend for that Answer. But can he say what is the reason for the failure to reach the target? Is it attributable to a lack of recruitment?

LORD BALOGH

My Lords, I have sent my noble friend a letter explaining the recruitment situation. The recruitment situation is very much better than we had hoped for. Recruitment in the last quarter showed a net growth in total manpower of 2,800, while in the corresponding quarter of last year there was a loss of 4,800. So that if this growth is maintained we hope that at least the manpower total will be reached. Indus trial action has held up essential development and maintenance work. None the less, performance is disappointing and I hope that the secure future indicated by the interim report on the examination of the coal industry will encourage the full co-operation of the whole industry.

LORD AVEBURY

My Lords, is the Minister aware that he did not directly answer the question put to him by the noble Lord, Lord Shinwell, as to whether it was the shortfall in recruitment which accounted for the thoroughly disappointing performance of the National Coal Board? Also, is it not a matter of great concern to the Government that we shall be starting this winter with much lower coal stocks available at the C.E.G.B. power stations than last winter? What steps are the Government taking to improve this situation?

LORD BALOGH

My Lords, I thought I had answered the question, because I said that last year there was a net loss of, approximately, 4,000 and that this year there has been an increase in manpower of almost 3,000, so that the problem has been eased. What has not been eased is the fact that the shortfall in maintenance work in the mines during the last period leading up to the present situation still impedes productivity. Therefore, further development work in the mines might be retarded and we might be confronted later with an even worse situation.

LORD BYERS

My Lords, is the noble Lord saying that we have more manpower but lower production?

LORD BALOGH

Precisely, my Lords. That is why all parties in the industry are now trying to mount an effective productivity drive on a national basis, with due regard to the regions.

LORD BYERS

My Lords, will that be effective before the winter sets in?

LORD BALOGH

My Lords, we very much hope so.

BARONESS WOOTTON OF ABINGER

My Lords, can my noble friend say whether the substantial influx of new, and presumably untrained, labour is one of the factors that prevents a rapid increase in production?

LORD BALOGH

My Lords, fortunately the number of re-entrants is rather high. In the quarter to June 29. which included a period of only ten weeks, we had 4,095 re-entrants, as against 1,089 juveniles and 1,858 adults recruited.

LORD SLATER

My Lords, in view of the questions asked from the Liberal Benches regarding productivity, may I ask whether it is right to say that this problem is not attributable merely to the shortage of manpower in the mining industry? Is it not true that there are other factors which must be taken into consideration? For example, seams become much thinner and production by men engaged in this arduous occupation is bound to be lower until they reach better seams. Only then will it be possible to increase productivity.

LORD BALOGH

My Lords, I am much obliged to my noble friend.

LORD TAYLOR OF MANSFIELD

My Lords, can my noble friend say what is the present situation as regards the proposed New Selby coalfield?

LORD BALOGH

My Lords, plans for New Selby are advanced. The Board is treating the project as a top priority and is pressing ahead with an exploration and evaluation programme. This phase will be completed shortly, and the Board will then be in a position to make a planning application in the normal way. Of course it will be several years before any coal can be produced from Selby.

LORD BLYTON

My Lords, will my noble friend agree that, while we are pleased to see the influx of new recruits, we cannot get good management of the pits because of the devastating effects of Government policies during the last fifteen years, which have run down the pits to the minimum? If we have to rise to a target of 130 million tons, can my noble friend say where we are to get the miners to produce that coal in view of the fact that people do not now like to work in the mines, because of the way in which they have been treated during the last 15 years?

LORD BALOGH

My Lords, I would not dissent from my noble friend on that, but I would say that the sharp turn-round in recruitment shows that there is now much greater confidence in the industry. I believe that if a productivity scheme is enacted we have the best hope of reaching the figure of 120 million tons of deep-mined coal—as 10 million tons is surface-mined. At the present moment, it is thought that if manpower is available, and if productivity increases as we hope it will, we can get much higher figures—about 130 million tons of deep-mined coal—as I explained in my answers to questions about the Statement on the coal industry.

LORD SHINWELL

My Lords, as a possible constructive proposal, will the noble Lord agree to consider making a submission to the National Coal Board that, to some extent, they might relax—in a modest fashion; whatever they regard as satisfactory—the redundancy arrangements? Many men are unemployed in the mining areas in Wales, the North-East and Scotland who have worked in the mines for many years and have been made redundant at the comparatively early ages of 57 or 58, which qualifies them for redundancy. Would it be worth while making that submission to the National Coal Board?

LORD BALOGH

My Lords, the noble Lord can be assured that I will report his suggestion to the Secretary of State.