§ 23. Mr. ADAMSONasked the President of the Board of Trade whether he was in a position to state if any reduction was to be made in the price of coal; and, if so, the amount?
§ Sir A. GEDDESThe Government have reviewed the whole question of the price of coal in the light of all the information available.
The salient facts are:
The actual obtained output from July to date is less than the rate of 217,000,000 tons per annum, though the output in recent weeks has shown a marked improvement.
The prices ruling for export coal are, however, unprecedentedly high, and the fall which was regarded as inevitable is certainly postponed by events in the United States of America.
The prices for coastwise and foreigngoing bunkers are so high that, in conjunction with other charges, there is danger of the average level of freights rising unless some corrective is applied.
It is from these sources, export and bunkers, that profits are now being made. Coal used for inland purposes is being sold at a loss—that is, the average price is below the average cost of production. This is a very unsatisfactory and very dangerous position for the coal industry. Industrial coal, at any rate, must as much as possible be sold on an economic basis.
In the light of these facts it is desirable at an early date to modify profoundly the present system of coal control, which is, in my opinion, now that more coal is becoming available, unnecessarily hampering.
1419 We propose, therefore, gradually to transform the coal control machinery until it consists of three parts only:
Steps to secure these modifications will be taken as rapidly as circumstances permit.
- 1. A limitation on the amount of coal allowed to be exported;
- 2. A limitation on the owners' profits;
- 3. A special limitation on the price of coal supplied for domestic purposes.
As a direct aid to the cost of living in these exceptional and abnormal times we propose to fix the price of domestic and household coal at a level 10s. per ton below the present price, thus letting the general householder share in some measure in a privilege which the workers in the industry have for long enjoyed and receive some benefit from the present high value of this national asset. We also propose to reduce the price for coastwise bunkers to the industrial level. This will also be effective from Monday next. We are further exploring the position with regard to foreign-going bunkers, but I am not in a position at present to make any announcement on this point
I desire to warn most seriously all householders not to postpone the purchase of necessary coal because of the reduction of price which will become effective next week. If they do and if they expect on next Monday to get unlimited supplies of coal at the now price they will be disappointed. This change can only be made without confusion if we secure the cooperation of all concerned.
The necessary orders and instructions to give effect to these decisions with regard to price will be issued in the course of this week.
§ Sir A. GEDDESNo. We estimate that, approximately, these reductions, with certain other changes contemplated in the near future, will leave the account about square.
§ Lieut. - Commander KENWORTHYWill coastwise traffic include deep-sea fishing vessels?
§ Sir A. GEDDESAll non-foreign-going.
§ Mr. HARTSHORNIs it the intention of the right hon. Gentleman to lay before the House some figures relating to the industry upon which these results are based?
§ Sir A. GEDDESThat has already been announced, and an undertaking given to that effect. We are having them prepared.
§ Mr. HARTSHORNCan the right hon. Gentleman give any idea as to when they will be ready?
§ Sir A. GEDDESIt is very difficult to say, as it is a long job.
§ Mr. HOUSTONDoes the right hon. Gentleman not realise the vital necessity of increasing the quantity of our export coal from the financial point of view?
§ Sir A. GEDDESYes, from the financial point of view, but I also realise the vital necessity of having enough coal in this country.
§ Lieut.-Colonel Sir S. HOAREDo I understand that whilst the price of domestic coal is to be limited, the amount to be allowed to private consumers is not to be limited?
§ Sir A. GEDDESI said nothing about the amount being free at the present moment. I spoke of the direction in which we were moving with regard to coal control, and when we reach the goal of having only the three-parts of coal control to which I referred, then rations will be off, but in the meantime we shall continue them.
§ Mr. SEDDONWill those who give orders this week participate in the reduction coming into force next week?
§ Sir A. GEDDESNot if they get the coal this week.
§ Sir J. BUTCHERWill there be a reduction in the price of domestic coke corresponding with the price of coal?
§ Sir A. GEDDESWe will work out the necessary figures and give the necessary instructions as to the corresponding reduction in the price of coal purchased by gas and electric undertakings, so that allowances may be made in respect of the amount of coal used in producing gas and electric energy for light and power supplied for domestic and household use.