HL Deb 08 March 1994 vol 552 cc1339-40

3.2 p.m.

Lord Ezra asked Her Majesty's Government:

What would be the position of coal mines currently licensed to private operators by British Coal after the industry as a whole has been privatised.

Viscount Goschen

My Lords, under Clause 25 of the Coal Industry Bill, holders of licences granted by British Coal under Section 36 of the Coal Industry Nationalisation Act 1946 would not, so long as those licences remain in effect, require a licence from the Coal Authority to carry on coal mining operations. The authority would, broadly, take over the functions of British Coal under those licences for the balance of their term.

Lord Ezra

My Lords, I thank the noble Viscount for reminding me of Clause 25 of the Bill, with which I am familiar. In the event that the conditions of the licences presently granted by British Coal differ markedly from the licences granted by the Coal Authority after the Bill that is presently before another place has gone through Parliament—should that occur—what would be the position? Would there be two groups of licences co-existing, and would that not cause further confusion in the coal industry?

Viscount Goschen

My Lords, the point is that the existing licensees have licences from British Coal enabling them to carry out mining operations. The Government see no benefit in injecting unnecessary uncertainty by interfering with the existing arrangements and insisting that they negotiate new licences with the Coal Authority before the expiry of their current licences.

Lord Morris of Castle Morris

My Lords, is it not a fact that in the private licensed mines sector the five-year average fatal accident rate between 1988–89 and 1992–93 was well over five times the rate for the equivalent period in the British Coal sector, and that in 1992–93 it was over 20 times the rate? Is that a matter of concern to the Government? And what is being done about it?

Viscount Goschen

My Lords, safety remains the very top priority in deciding on licensing arrangements and other arrangements for private mining operators. The Health and Safety Commission has been very clear that the regulation of health and safety is the responsibility of the Health and Safety Commission, enforced by the Health and Safety Executive. The commission argues for the retention of a clear separation of licensing and health and safety regulations. Its advice is that the use of the licensing system to enforce compliance with health and safety law, or to impose penalties on offenders, is neither necessary nor desirable.

Lord Ezra

My Lords, is the noble Viscount concerned that the licensing of individual mines now, and the subsequent possible licensing of groups of mines under privatisation, could lead to a substantial fragmentation of the coal industry at a time when it should be as strong as possible to face up to the competition from other fuels?

Viscount Goschen

My Lords, the Question on the Order Paper refers to the position of the existing private mine operators and the transitional and future arrangements that will pertain to those operators. I have expressed the case that the situation will come under the Coal Authority, but that the existing licences will continue and that new licences for the duration of the existing licences will not be required.