§ 57. Sir W. Smithers
asked the Minister of Fuel and Power the policy of the Government concerning prices allowed to the coalowners; and to what extent are they dependent on maintenance of output?
§ The Minister of Fuel and Power (Major Lloyd George)
The general policy of the Government in relation to pithead prices of coal is that they should be fixed at such a level that they will meet all items of cost incurred in the production of coal and provide a reasonable credit balance, having regard to the importance of maintaining the industry in a healthy condition 1736 and encouraging the maximum. development of marginal output. The national average credit balance is regulated at an amount per ton, and it follows that the profits of the industry are directly dependent on output.