COAL (CHARgES) (AMENDMENT) (No. 3) ORDER, 1942 (Hansard, 4 February 1943)

§ The Minister of Fuel and Power (Major Lloyd George)
I beg to move, That the Coal (Charges) (Amendment) (No. 3) Order, 1942, dated 31st December, 1942, made by the Treasury under Section 2 of the Emergency Powers (Defence) Act, 1939, a copy of which was presented to this House on 19th January, be approved. Last July a Coal (Charges) (Amendment) Order was approved. It raised the levy up to 3s. 7d. to meet, first, the increased cost of the wages agreed award, certain district costs, the guaranteed wages under the Essential Work Order, and, lastly, a measure of assistance to certain necessitous undertakings. Those four items roughly exhausted the levy, and since then the Government have been looking into the costs of the industry. As I announced some little time ago, they came to the conclusion that certain abnormal costs of winning the coal should be borne by the industry. It is, therefore, necessary to bring in this Order, raising the levy to 5s. We estimate that 6d. of the increase will be absorbed by the cost of the output bonus, which is not easy to estimate exactly, expenses involved in the compulsory transfer of men under the proposals of the White Paper, expenses which are incurred also under the White Paper scheme in regard to the training of new entries into the industry, and the cost of meeting old cases of pneumokoniosis. That, we estimate, will absorb 6d., and, as I announced in December, the remaining sum will be allowed to the industry to meet general increases in cost and to bring the district balances up to the level necessary to maintain efficient production. I would like the House to agree to the Order, on that explanation.

§ Mr. David Grenfell (Gower)
This bringing together of separate coal Charges is certainly a matter of convenience, and it ought to be an opportunity for explaining the position to the general public, who might be led to their own conclusions without some explanation. The right hon. and gallant Gentleman has given an explanation that this did not begin last week. Up to July, 1942, certain additional liabilities had been incurred by the industry, and prices had to be adjusted by the industry. Since then other changes 1134 in the administration of new services in the industry have justified, in the Minister's opinion, an addition of 1s., of which 6d. is to be definitely set aside for meeting certain needs and balancing unequal claims from district to-district. I would ask the right hon. and gallant Gentleman whether he would find it convenient—if not to-day, soon perhaps—to explain that this 5s. a ton is not a frivolous adventure into prices, but a thing which has grown, and which began with the coal levy which the House approved in December, 1940. Since then, other additional levies have been imposed, in addition to Charges on the industry. Who takes charge of these sums; to whom are they paid; what control is there over the fund; and how do the different districts benefit? If the right hon. and gallant Gentleman will say that the Treasury, under the Ministry of Fuel, supervise the disbursement of these sums, that there is no possibility of abuse anywhere, and that this 5s. covers a long period and does not apply only to something which took place after he took office, his explanation will be helpful.

§ Major Lloyd George
Perhaps, with the permission of the House, I might explain. The Coal Charges Account is collected on the tonnage, a return of which is statutory. The money is paid into the Coal Charges Account, for which I am responsible, and it is administered, purely as a matter of machinery, by the district executive boards. I am responsible for the fund and the way it is applied. I am obliged to the hon. Gentleman for making the point perfectly clear that these increases which we have asked for from time to time are to meet many things which we in this House are glad to see brought about.