HC Deb 29 January 1929 vol 224 cc747-9
16. Lieut.-Commander KENWORTHY

asked the Secretary for Mines if he is aware that since the freight relief on coal for export has been granted there has been practically no reduction in the price of coal on the North-East Coast and that for certain grades of coal there has been an increase of price; and whether he intends to take any steps in the matter?

Commodore KING

The answer to the first part of the question is in the affirmative and to the second part in the negative.

Lieut.-Commander KENWORTHY

Was it not the intention of the Treasury in granting this particular relief to bring down the price of coal? Surely it never was intended that it should be a present to the coalowners?

Commodore KING

Yes, Sir, it was meant for the benefit of the industry, and if the hon. and gallant Member will look at the answer I gave to the hon. Member for Spennymoor (Mr. Batey) on 17th December he will see that I dealt with the point.

Lieut. - Commander KENWORTHY

How does the hon. and gallant Member think it can be of benefit to the industry if the price does not come down, so that the exports can increase?

Mr. SHINWELL

Does not this dispose entirely of the Government's contention—the fact that a gift of £3,300,000 in this connection will not reduce prices or affect industry?

Commodore KING

No. As I informed the hon. Member for Spennymoor, it is for the owners to decide whether they will use that benefit for the reduction of prices or for bridging the gap between the costs of production and the selling price.

Mr. PALING

Is it not a fact that they have already decided to use it for increasing their profits?

Commodore KING

It will be for the benefit of the industry if they cease to make losses.

Lieut. - Commander KENWORTHY

Why was not this made clear to the House when the money was voted in the first instance?

Commodore KING

I think the House understood it.

Mr. SHINWELL

When this proposal was first adumbrated, was it the intention of the Government to recoup owners for losses they had sustained and enable them to gain profits?

Commodore KING

It was done to benefit the industry.

Mr. SKELTON

Will my hon. and gallant Friend remind the hon. Member of the proportion in which profits are shared between the owners and the workers?