§ 8. Mr. Nealasked the Paymaster-General how many electricity generating stations are equipped with dual-firing apparatus; and what is the coal equivalent in oil now being consumed at these stations.
§ Mr. MaudlingAs regards the first part of the Question, I would refer the hon. Member to the reply given to the hon. Member for Bedwellty (Mr. Finch) on 22nd June. In the first 24 weeks of this year these stations consumed oil equivalent to approximately 2.7 million tons of coal.
§ Mr. NealIn view of the extreme difficulties the coal industry is experiencing and in view of the highly prosperous oil industry, will the right hon. Gentleman give directions that these stations should all be turned over to coal burning?
§ Mr. MaudlingAs I said before, the Government would not give directions to any nationalised industry to break commercial contracts.
§ 22. Mr. Blytonasked the Paymaster-General to what extent he has given general directions to the Central Electricity Generating Board regarding their future plans for coal burning; and what is the possibility of the Central Electricity Generating Board's increasing their annual consumption of coal during the next 10 years.
§ Mr. MaudlingNo general directions have been given to the Board on this subject. The Board is confident, however, that its consumption of coal should increase substantially during the next ten years.
§ Mr. BlytonCan we take it, therefore, that in future the Government will not force the Central Electricity Generating Board to burn oil?
§ Mr. MaudlingI think that all we have said recently about coal and oil should make the Government's position very clear in these matters.
§ Mr. GowerIs it not a fact that the policies of both the National Coal Board and the Central Electricity Generating Board are in no way governed by restrictions imposed by the present Government but by the terms of the Act passed by the Labour Government?
§ Mr. MaudlingThe real root of the problem is that only a short time ago there was very little prospect of obtaining enough coal to meet our requirements for electricity generation.
§ 33. Mr. P. Noel-Bakerasked the Paymaster-General what estimate he received from the Central Electricity Generating Board of the compensation which would be payable to the oil companies for the cancellation of their present contracts for oil for their power stations, before the Government decided not to instruct the Board to cancel these contracts.
§ Mr. MaudlingNone, Sir.
§ Mr. Noel-BakerDoes not the Paymaster-General think that it would be desirable to know how much the compensation would be so that he could consider whether it would not be right to give a direction to the Electricity Generating Board to use coal where that is economic?
§ Mr. MaudlingNo, Sir. It would be quite wrong for the Government to contemplate giving directions to a nationalised industry to cancel commercial contracts.
§ Mr. Noel-BakerIs the right hon. Gentleman saying that there was no pressure from the Government on the Board to turn over to oil?
§ Mr. MaudlingI am talking about commercial contracts. I said that it would be quite wrong for the Government to consider directing a nationalised industry to break a contract. The main reason why the Government were anxious to see more oil consumed a few years ago was that it was not possible for the coal industry to supply the coal which appeared to be necessary.
§ Mr. Noel-BakerThen I understand from that answer that the Government did bring pressure to bear on the Board to turn over to oil. That being so, would it not be equally right in the national interest for them now to tell the Board that it had better use coal instead?
§ Mr. MaudlingThe right hon. Gentleman cannot really take that from my answer. He has put down a Question about the cancellation of existing 868 contracts. If he wants information about what happened in the past, perhaps he will put down a Question.
§ Mr. Noel-BakerMay I press the Paymaster-General? Is it not a fact that the Government did bring pressure to bear on the Board to use oil?
§ Mr. MaudlingPerhaps the right hon. Gentleman will put down a Question.
§ 34. Mr. P. Noel-Bakerasked the Paymaster-General whether he is aware that the cost of fuel oil imported from abroad in the year 1958 was £37,208,547, and that it is estimated that the cost in 1959 will be considerably increased; and, in view of the heavy drain which this involves on the national reserves of foreign exchange, what general direction he intends to give to the Central Electricity Generating Board to reduce their present consumption of fuel oil.
§ Mr. MaudlingThe oil industry must be viewed as a whole, and as such it makes a very substantial contribution every year to our balance of payments.
§ Mr. P. Noel-BakerIs not the increasing use of fuel oil for purposes which could be equally well served by coal a very heavy drain on foreign exchange which ought to be avoided?
§ Mr. MaudlingIf coal can equally well be used, I cannot see why oil is taking its place. We must look at the thing as a whole, and the cost paid for importing oil is small compared with the enormous gains of foreign exchange by our international oil companies.