HC Deb 13 February 1956 vol 548 cc2057-9
34. Mr. H. Neal

asked the Minister of Fuel and Power what will be the extent of the loss on the sale of coal imported from the dollar area during the present coal year.

Mr. Aubrey Jones

Of the order of £16 million.

Mr. Neal

Is the Minister prepared to introduce the necessary legislation for this burden to fall on the Exchequer and not on the National Coal Board?

Mr. Jones

The burden does not fall on the National Coal Board. The burden falls on the consumer. I see no reason why the Exchequer should subsidise the consumer.

Mr. Jay

Does not my hon. Friend's Question illustrate the absurdity of a situation in which the Coal Board is selling industrial coal to industry in this country at below the economic price? Why should the Coal Board go on subsidising private industry, and will the Minister seriously consider inviting the Board to raise the price of industrial coal to the economic level?

Mr. Jones

There is no distinction between industrial coal and domestic coal. [HON. MEMBERS: "Oh"] The same principles apply to both, and the requirement that the Coal Board shall make ends meet covers all kinds of coal.

Mr. Jay

Is the Minister aware that while I agree with what he says, and I was not questioning that, I was asking him why there should be a distinction between what industry pays for coal abroad and what it pays in this country?

Mr. Jones

To obviate that distinction would mean raising the price of coal by between £2 10s. and £2 15s. a ton. I consider that an increase of this magnitude would be so devastating and upsetting in its effects as to be entirely impracticable and unthinkable.

Mr. Jay

Is it not then rather remarkable that the Coal Board should be selling coal to British industry at £2 10s. a ton less than the economic price?

Mr. Jones

If the Coal Board were, in deference to the right hon. Gentleman's question, to raise the price of coal by between £2 10s. to £2 15s. a ton, it would be making a gigantic surplus, which would be in contradiction to the present Statute.

Mr. B. Taylor

Is the Minister aware that the loss on imported coal appears in the balance sheet of the National Coal Board?

Mr. Jones

The National Coal Board suffers no losses in respect of the import of coal, provided that the average cost is reflected in the domestic prices, and that is the case at present.

Viscount Hinchingbrooke

Is it not true that until now the Socialist Party has been arguing that the nationalised industries should be used as Government agencies for reducing the cost of living to the consumer?