HC Deb 10 December 1958 vol 597 cc320-2
8 and 9. Mr. Gower

asked the Parliamentary Secretary to the Admiralty (1) in what foreign countries orders have been placed for supplies of coal for use by the Royal Navy; and if he will make a statement;

(2) what considerations led to recent orders being placed for supplies of coal from Poland for use by the Royal Navy; and if he will make a statement.

Mr. R. Allan

I would refer my hon. Friend to the reply I gave last Wednesday to the hon. Member for Cardiff, South-East (Mr. Callaghan).

Mr. Gower

While I appreciate the desirability of increasing East-West trade, may I ask my hon. Friend whether he deems this policy appropriate at this particular time in view of the position of our own coal industry? Is it a fact that the local contractors have offered coal supplied by shippers from South Wales of the type which has been used in Malta in the past?

Mr. Allan

Yes, Sir; but it is different coal. This was a purchase of large coal which at the time the contract was negotiated was not in surplus in this country. In addition, the Polish coal was nearly £4 cheaper than what was offered here, and the Admiralty has a duty to buy coal as cheaply as it can.

Mr. J. Griffiths

In deciding that Polish coal was cheaper, was the reason fully inquired into? Is the hon. Gentleman aware that Polish coal is subsidised? Are we to understand, therefore, that the Government will take advantage of cheap coal which is subsidised in competition with coal produced by our own miners, who are now being put on the road? Does the hon. Gentleman realise that hundreds of miners in my constituency are facing unemployment for the first time for twenty years? The Government, however, are now buying cheap Polish coal and displacing our own miners.

Mr. Allan

The point is that the kind of coal we bought was not in surplus in this country.

Mr. Griffiths

The situation may now have changed. Are we to understand that the Admiralty is reconsidering the whole matter? Will the hon. Gentleman bear is mind that it creates a very bad impression among people who have given their lives to the country when the Government buy subsidised coal from Poland in preference to our own coal?

Mr. Allan

This was a tiny shipment of 3,800 tons out of a total requirement of the Admiralty of 260,000 tons. We will not buy more coal from Poland without further consultations with the Ministry of Power.

Mr. G. R. Howard

What is the procedure for the purchase of coal stocks in Gibraltar and Hong Kong?

Mr. Allan

In Gibraltar and Hong Kong, we buy from local contractors. We do not specify the source of origin of the coal. We buy the coal that is available and meets our requirements.

Mr. G. Thomas

Are we now to understand that the Admiralty will no longer buy this subsidised coal from Poland. or is the custom to continue? This is a matter of first importance to every one of us from the mining areas.

Mr. Allan

We shall certainly not buy any more of this coal without first consulting the Ministry of Power, as we did for this shipment.