HC Deb 08 July 1957 vol 573 cc11-7
14. Lieut.-Colonel Bromley-Davenport

asked the Paymaster-General if he will issue a table showing the average rate of wages for coal miners during each of the last five years, together with the rise in the price of coal, the increase in mine mechanisation and the average coal output per man for each of those years.

Mr. Maudling

As the Answer contains a number of figures, I will, with permission, circulate a table in the OFFICIAL REPORT.

Lieut.-Colonel Bromley-Davenport

Has not the price of coal been increased on at least 30 separate occasions since the mines were first nationalised, and is it not now nearly double what it was then? Are not the unfortunate taxpayers pouring some £1,000 million of their money into their mines, and are not the only thanks they get increased absenteeism and increased cost? How can any Government keep down the cost of living when coal, on which the ultimate cost of everything depends, keeps rising in price?

Mr. Maudling

I ask my hon. and gallant Friend to study the figures for which he asked before drawing deductions from them.

Mr. Robens

Is it not the case that there have been only five increases in the pithead price of coal and not 30 as the hon. and gallant Gentleman suggested? Is it not true that output per man-shift of British miners and output per man-year are higher than for any country in Europe and that British coal at the pithead is cheaper than anywhere in Europe? Is it not a bad thing that an hon. Member should use this House to denigrate our most vital industry where men are working under great difficulties to do a first-class job for the country?

Mr. Maudling

Without notice, I could not quote the exact figures, but much of what the right hon. Gentleman has said is perfectly true. On the other hand, it is very important we should recognise that output per man-year in 1956 was lower than in 1952. The whole House will agree that that is a matter for concern.

Following is the table:

COAL INDUSTRY
1952 1953 1954 1955 1956
Average weekly earnings per wage earner (a) 225s. 0d. 232s. 1d. 245s. 11d. 261s. 0d. 284s. 8d.
Average proceeds per ton of deep-mined output (b) 57s. 3d. 61s. 2d. 63s. 6d. 68s. 0d. 77s. 0d.
Percentage of total deep-mined coal output mechanically cut 82 83 84 86 87
Percentage of total deep-mined coal output power-loaded 4.9 5.9 7.3 9.8 14.1
Percentage of total deep-mined coal output mechanically conveyed 88 89 90 92 93
Output (tons) per man-year overall 299 (c) 297 302 299 298
(a) Including the value of allowances in kind. Average wage rates in the industry are not known.
(b) For 1955 and 1956, the figures shown exclude that part of the pithead price which was intended to recoup losses on imported coal. In the second half of 1955 this was equivalent to 2s. 10d. per ton saleable and in 1956 to 1s. 7d.
(c) Estimated; on basis of definition for 1953 and subsequent years.

17. Mr. Nabarro

asked the Paymaster-General how much of the recent average increase of 6s. 6d. per ton in coal prices for householders accrues to the National Coal Board, and how much to distributors and merchants.

Mr. Maudling

6s. 6d, was the average price increase at the pithead for all coals on 1st July and the whole of this increase accrues to the National Coal Board. On the same date, retail house coal prices were increased by additional small amounts to recompense merchants for increased costs of distribution.

Mr. Nabarro

Does my right hon. Friend realise how very greatly upset the general public is by the implications of his statement last Monday to the general effect that he is pursuing a deliberate policy of dear coal? Will he recant today and make it quite clear that he does not propose to put up the price of coal any more during the lifetime of this Parliament, having regard to the gravely inflationary effects of such a policy?

Mr. Maudling

If my hon. Friend would be kind enough to study what I said in reply to his supplementary question last week, he will find that it is precisely the opposite of what he has just said. I said there was no question at all of a deliberate dear coal policy.

Mr. Bence

Is the right hon. Gentleman aware that on the Continent of Europe—

Mr. Nabarro

We do not live on the Continent.

Mr. Bence

—members of the Iron and Steel Community—

Mr. Nabarro

Why not go and join the Norwegians?

Mr. Bence

—recognise the advantages to the steel industry of this country of cheap coal? Will the right hon. Gentleman give an assurance that there will be no attempt by the British coal industry to raise coal prices to the general level of prices of coal ruling on the Continental market?

Mr. Nabarro

Certainly not.

Mr. Maudling

I do not see any sign of that in the National Coal Board's policy at the present moment.

18. Mr. Nabarro

asked the Paymaster-General, having regard to the recent coal price increases authorised by the Minister of Power having resulted in consequentially increased rail freight, steel, gas, coke and electricity charges, what estimate he has made of the influence of all these consequential increased costs upon future pithead coal prices; and what part of these consequential increased costs to the coal consumer he took into account when the coal price increase of 6s. 6d. per ton, average, was authorised, with effect from 1st July, 1957, by the Minister of Power.

Mr. Maudling

The direct consequential effects of the recent coal price increases are estimated to add about one-quarter of one per cent. to the costs of the National Coal Board's collieries. This is not therefore, a material consideration.

Mr. Nabarro

My right hon. Friend is evidently deliberately neglecting the fact—

Hon. Members

Question.

Mr. Nabarro

—that he fixes the price for the consumer. Will—

Hon. Members

Question.

Mr. Speaker

Order. I think a question is coming.

Mr. Nabarro

As my right hon. Friend fixes the price to the consumer, will he pay some regard to the fact that, as freights have now been raised by 10 per cent. and the prices of gas, electricity, coke and steel are all going up, the National Coal Board will have to apply shortly for another price increase and the consumer is going to be hit again? Will not my right hon. Friend have some regard for these very gravely inflationary effects?

Mr. Maudling

If my hon. Friend once again will study what I have said, he will find once again that it is the opposite of what he has said.

Mr. Snow

Apart from all these matters that have been raised, is it not a fact that at a recent international conference on coal production the record of this country on safety in mines, on which figures were produced, is one of which the National Coal Board need not be ashamed?

Mr. Maudling

I think that has been generally recognised, but we are now considering costs and prices, on which the record is much more alarming.

Sir P. Agnew

Is my right hon. Friend aware that this increased price of coal to householders in Worcestershire is causing very great dissatisfaction, in view of the fact that the National Coal Board is buying coal from abroad at a very high price and selling it at a loss to industrial users in the Midlands area?

Mr. Maudling

I quite agree that these recent increases are matters of very considerable concern indeed, and nobody for one moment would deny it. On the question of the price of imported coal, there are some other Questions later on the Order Paper.

19. Mr. Nabarro

asked the Paymaster-General whether he will state, when the Minister of Power authorised the increase in coal prices of an average of 6s. 6d. per ton from 1st July, 1957, what aggregate sum of additional revenue in a full year such increase was designed to yield to the National Coal Board; for what purposes; what sum the National Coal Board asked Ministerial authorisation for, both per ton increase in price and aggregate sum; what reduction in the National Coal Board demands was made by the Minister of Power; and, having regard to the inflationary effects of the price increase, whether he will now make a full statement concerning the negotiations.

Mr. Maudling

As the National Coal Board have announced, the recent price increase is estimated to yield additional revenue amounting to £66 million in a full year, and they have explained for what main purposes this money is required. Increases in the price of coal other than to the domestic consumer do not require authorisation by my noble Friend, but they are the subject of consultations between him and the Board. These consultations are confidential and must remain so.

Mr. Nabarro

Can I do anything to break up the "kissing ring" between the Minister of Power, my right hon. Friend and Sir James Bowman? Why is it that prices always go up, with never any resistance from my right hon. Friend in keeping these prices stable? Who is going to protect the consumer in this country, other than myself?

Mr. Maudling

I am not an expert on the subject of breaking up "kissing rings", but the fact is that costs have been rising, and it was recognised by both the Industrial and Domestic Coal Consumers' Councils that these prices were inevitable in the face of rising costs.

Mr. Nabarro

In view of the grossly unsatisfactory nature of these Ministerial replies, I beg to give notice that I shall take steps to persuade you, Mr. Speaker, to give me an Adjournment debate or otherwise allow me to raise this matter again.

25. Mr. Ridsdale

asked the Paymaster-General what has been the percentage increase in the retail price of coal in the London area compared to the percentage increase in the price of fuel oil, excluding tax, in the London area between 1947 and the recent ending of rationing.

Mr. Maudling

On 18th May last, the retail price of Group 4, an average house coal, had increased by about 100 per cent. Fuel oil is not normally sold retail, but at the same date the wholesale price of light fuel oil had increased by 69 per cent.

Mr. Ridsdale

Does not the Paymaster-General's Answer show that private enterprise is far more capable of keeping prices down than nationalised bodies?

Mr. Maudling

While probably agreeing with my hon. Friend on the general attitude to the question of nationalisation, I do not think one can draw such a deduction from these particular figures.

27. Mr. Ridsdale

asked the Paymaster-General how much the price of Grade 2 house coal, both in terms of money and percentage, has risen in London and north-east Essex, including Harwich, respectively, since 1st January, 1947.

Mr. Maudling

In London by about 106s., or 118 per cent., and in Harwich by about 116s., or 144 per cent.

Mr. Ridsdale

Is the Minister aware that one of the main pointers in regard to the cost of living of pensioners and those living on fixed incomes is their fuel bills? Does not he agree that the nationalised industries should be warned that successive wage rises, unaccompanied by production increases, are making this section of the community despair? As the opportunity occurs, will he see that limitations are put upon price increases in the nationalised industries?

Mr. Maudling

It is true that the cost of fuel falls very heavily upon pensioners and people living on fixed incomes. That is one of the strongest reasons for doing everything possible to increase productivity. I entirely agree with my hon. Friend about that.