HC Deb 28 March 1955 vol 539 cc14-6
26. Mr. Palmer

asked the Minister of Fuel and Power to state the steps he is taking to encourage the use of oil as a substitute for coal in industry and else-where; and the approximate estimated saving in annual tons at the end of the next five-year period.

Mr. Geoffrey Lloyd

I am discussing with Government Departments, nationalised industries and other public authorities how they can save coal by using more oil; Government loans are available to industrialists who can make worth while savings by changing from coal to oil, and I am glad to say that the use of oil is increasing rapidly.

Mr. Palmer

Is the right hon. Gentleman fully aware of the urgency of this matter, and is he really bringing pressure to bear, particularly on private industry?

Mr. Lloyd

It is not for me to bring pressure, but encouragement.

Mr. Holt

May I ask the Minister why, if he is encouraging the import of oil, he does not encourage still more imports of coal, so that coal rationing can be abolished?

Mr. Lloyd

There is a net balance of payments advantage in importing more oil.

27. Mr. Palmer

asked the Minister of Fuel and Power if, in view of the increasing coal shortage and the urgent need for a positive inducement to conserve industrial coal supplies, he will now reconsider his previous decision against a levy on private industry for the funds of the Fuel Efficiency Company.

Mr. Geoffrey Lloyd

No, Sir.

Mr. Palmer

Could not tremendous savings be made in industry by fuel conservation, and is there any hope of this being done unless the right hon. Gentleman is prepared either to impose some penalty or to give more positive inducements?

Mr. Lloyd

The National Industrial Fuel Efficiency Service is making good progress. Hon. Members may have noticed its more aggressive advertising campaign in all sorts of technical journals.

Mr. McAdden

Are we to understand that, the coal industry now having been nationalised, we now have to pay a levy for using its products?

Mr. Lloyd

That was not my suggestion.

30. Mr. Nabarro

asked the Minister of Fuel and Power what estimate he has made of United Kingdom coal consumption for the year commencing 1st April, 1955, compared with the consumption figure for 12 months ending on that date of approximately 214 million tons; and, in view of increasing production and coal requirements of industry and the small increase in coal production over the last three years, what steps he proposes to meet the mounting coal deficiency by reduced exports of coal, or increased imports, or by promoting improved fuel efficiency and oil-for-coal substitution or otherwise.

Mr. Geoffrey Lloyd

Consumption may increase another four or five million tons in the next coal year, and the Government are taking action in all the various ways mentioned by my hon. Friend to bridge the likely gap between requirements and home supplies.

Mr. Nabarro

Might I return to the earlier Question? Is it not a fact that at the present time we are spending very large sums of money in importing, for example, fruit from Western Europe and elsewhere and paying for it in soft currency, and yet it is said that we cannot afford to import large quantities of coal which are surplus in Western Europe at the present time? Might I have an answer to that specific point?

Mr. Lloyd

It is necessary to import enough coal to ensure that the fuel supplies of the country are maintained during the winter so that industry, etc., can carry on. It is another matter to suggest that we should import that additional quantity at the cost of foreign exchange, even though not in dollars, to do away with coal rationing, which I should very much like to do.

Mr. Robens

With regard to the oil-for-coal substitution suggestion made in the Question, has the right hon. Gentleman considered extending the industrial loans scheme, in view of the heavy capital expenditure required, to domestic consumers who wish to change over to oil?

Mr. Lloyd

No, Sir, not to domestic users. The scheme has been extended so that it can be used by industrialists who wish to change over to oil in suitable circumstances.

Mr. Robens

I understand that, but does not the right hon. Gentleman appreciate that there may be many domestic consumers who would change over except for the heavy capital cost involved? Will he consider extending the industrial scheme to domestic users who would like to take advantage of it?

Mr. Lloyd

That is a useful suggestion.

Mr. Strachey

Did the right hon. Gentleman notice his hon. Friend's conversion to selective import controls, in this case coal for fruit?