§ 50. Mr. Nabarroasked the Minister of Fuel and Power the reasons for the recent increases in prices of domestic coal; whether merchants' margins have been increased; and what regard he has had to the effects of the investment allowances under Clause 15 of the Finance Bill, 1954, upon the price of domestic coal, and the need or otherwise to increase the prices of domestic coal.
§ Mr. Joynson-HicksThe recent general increases in the prices of coal, including certain groups of domestic coal, were necessary to enable the National Coal Board to avoid incurring a deficit this year. The increases do not add to the merchants' margins. It is too early to assess the effect of the investment allowances on the revenue position of the Board.
§ Mr. NabarroIs it not a fact that the amount of the increase for all categories of industrial and domestic coals will, in the aggregate, provide additional revenue for the Coal Board of more than twice the rate of their anticipated deficit for the current year? In those circumstances, why is the domestic consumer being called upon to pay artificially high prices for fuel?
§ Mr. Joynson-HicksThe estimate of the revenue to be obtained by the increased prices does not exceed the estimated deficit which would otherwise arise in this year's budget.
§ Mr. NabarroWhat is the amount of that deficit?
§ Mr. Joynson-HicksThe same amount as the estimated increase, about £17 million.
§ Sir H. WilliamsHas my hon. and learned Friend seen the publicity issued by the Coal Board on the screens at theatres, in which it appeals to me and other people to buy our coal before 13th June, because it will be 10s. cheaper per ton? How is that fact reconciled with my hon. and learned Friend's answer?
§ Mr. Joynson-HicksMy hon. Friend is, I think, referring to the lowest summer prices which are now in existence. It is advisable for people who want to stock up with coal to lay in their stocks before 13th June.