HC Deb 25 February 1957 vol 565 cc860-1
52. Mr. Dugdale

asked the Paymaster General whether the Inter-Departmental Committee set up to investigate British African coal resources has completed its deliberations; and when it is intended to publish its findings.

Mr. Maudling

Yes, Sir, and I am circulating a summary of the conclusions reached in the OFFICIAL REPORT.

The quality and transport costs of these coals are such that the United Kingdom Government would not feel justified in offering to finance their development for import into this country. The field is, of course, open to private enterprise.

Mr. Dugdale

Does that apply to all coal throughout Africa? Does it mean that none of the coal throughout Africa is of a sufficiently good quality?

Mr. Maudling

Yes, Sir. This survey was a very comprehensive one.

Mr. Nabarro

Will my right hon. Friend bear in mind that, while he has said that the field is open to private enterprise to import this coal, it is not, of course, a very attractive investment for private enterprise unless the National Coal Board, which is the sole producer and distributor of coal in this country, will give long-term guarantees as to its requirements?

Mr. Maudling

I agree that the attraction of this investment, either for public or for private funds, depends on the comparative costs of the coal when delivered, which will be high, and on the possibility of getting a long-term demand for it, which, in view of the quality of the coal, may be difficult.

Mr. Marquand

The original Question referred to "British" African coal resources. Do we understand the Minister's answer to include Tanganyika, which is a Trusteeship Territory? Does it mean that Tanganyika coal is really not satisfactory?

Mr. Maudling

The reply referred to all coal deposits known to exist in the Commonwealth and Colonial Territories in Africa.

Following is the summary: Given the necessary capital investment in mines and inland transport, there is no doubt that coal production in Commonwealth and Colonial territories in Africa could in time be substantially increased. The prices of the coals at pithead would be comparatively low and it appears that they could be sold f.o.b. at a price either comparable with or less than the f.o.b. price of American coal. Sea transport costs would, however, be higher because of the longer hauls from African ports. The quality of the coals would be less suitable for our requirements. All have a comparatively high ash content and most of them a lower calorific value than imported American coal and a different volatile matter content from the normal run of coals consumed in the United Kingdom. In view of these transport costs and differences in quality, it does not appear likely that these African coals would be competitive here with American coal. Still less does there appear any prospect of African coal being brought here at a price comparable with that at which our own coal can be produced. Any development undertaken on the initiative of the United Kingdom Government to provide supplies for this country would, moreover, require an assurance that there would be a continuing need for the coal for a sufficient number of years after it became available to justify incurring the capital expenditure involved. There are many uncertainties in forecasting the future coal supply and demand position but having regard to the Coal Board's present development plans and the contribution which atomic energy is expected to make to meeting our fuel requirements, there could be no such assurance that the United Kingdom would provide a regular long term market. It is not considered therefore that the United Kingdom Government would be justified in providing direct financial assistance for the development of African coal for export to the United Kingdom. As, however, possible markets for African coal are not confined to this country, it is intended to bring to the attention of the Commonwealth and Colonial Governments concerned the possibilities of these other markets. It is also intended to inform other European Governments of the potential supplies available in Commonwealth territories in Africa.