HC Deb 06 May 1948 vol 450 cc1419-20
1. Mr. Erroll

asked the Minister of Fuel and Power if he will now make a statement on the coal/oil conversion programme.

2. Mr. Vane

asked the Minister of Fuel and Power if he will now make a statement on the coal/oil conversion programme.

3. Mr. Odey

asked the Minister of Fuel and Power if, in view of anxiety of manufacturers, he will indicate his future policy in regard to coal/oil conversion schemes.

The Minister of Fuel and Power (Mr. Gaitskell)

The House will recall that the coal/oil conversion programme was started in the spring of 1946, at a time when our coal stocks were shrinking and there was plenty of fuel oil. By June, 1947, however, the oil supply position had changed radically and it was decided that no more conversion schemes could be authorised. By December, 1947, largely owing to the astonishing increase in American consumption, the world shortage had become more acute and it became necessary to defer the completion of unfinished schemes authorised earlier in the year.

Since then, there has been little improvement, while the closing of the Haifa refinery has created fresh difficulties. Accordingly, it will not be possible at present for all the postponed schemes to come into operation and in the majority of cases, the firms concerned must continue to burn coal, probably for some considerable time to come. The only exceptions to this will be schemes of conversion which have exceptional economic merit, e.g., in certain cases of steel, glass and pottery production, where the actual process of converting to oil is nearly completed. The firms concerned will be notified shortly.

Mr. Erroll

Can the Minister give a guarantee that existing consumers of fuel oil will get their full supplies; and can he make any statement in regard to the oil firing of Bankside Power Station?

Mr. Gaitskell

As regards the first part of the supplementary question, I think that we can take it that there will be sufficient oil for those firms which have already converted; it is because we want them to have enough oil that we have deferred the conversion of others. I have no statement to make about Bankside Power Station.

Mr. Odey

Will the Minister bear in mind that many of these industrial firms changed over to oil from coal at the Government's request, and will he see that those firms that carried out the Government's policy will not be put to any financial loss in the matter?

Mr. Gaitskell

We cannot admit any claims for compensation of this kind. The process of conversion was a voluntary one, although I agree that the Government gave it encouragement.