HC Deb 22 June 1959 vol 607 cc858-60
31. Mr. Shinwell

asked the Paymaster-General what general directions have been given to the National Coal Board with regard to coal prices.

Mr. Maudling

None, Sir.

Mr. Shinwell

Does that mean that, subject to financial considerations, the National Coal Board can vary the price of coal as it thinks fit, that no restriction of any kind is placed on its commercial activities regarding the prices revealed by the Minister?

Mr. Maudling

As the right hon. Gentleman is well aware, it means that under the nationalisation Statute this matter of commercial policy is primarily for the National Coal Board. But, of course, the Gentleman's Agreement exists, and is well known to the House, whereby the Coal Board consult the Government before increasing the price of coal. There is no restriction which applies to a reduction in coal prices.

Mr. Shinwell

Does that mean that the Board would enter into negotiations and consultations with the Minister regarding a possible reduction in the price levels of certain kinds of coal?

Mr. Maudling

I cannot imagine any Government ever objecting to a reduction in the price of coal.

Mr. Shinwell

Answer the question.

Mr. J. Griffiths

Does not this mean that the Board is completely free from the obligation, to which it has been held by successive Governments and which it has observed, that it will not make any price changes without consulting the Government?

Mr. Maudling

That was not so at all. As I understand it, the obligation on the Board was to consult the Government before making a general increase in coal prices. Any Government would surely welcome a reduction in coal prices. There is the particular problem of the statutory obligation on the Coal Board which hampers its ability to reduce prices in certain circumstances.

Mr. Griffiths

Since I understand that the Government's policy is that the Coal Board must fend for itself in competition with other coal supplies, the Board might find that it is already getting lower prices than it should from some consumers and perhaps it is charging more to others. Therefore, is it not essential that the Board should have a completely free hand?

Mr. Maudling

I think the limitation on the National Coal Board's commercial policy arises from two things. One is the gentleman's agreement about the National Coal Board seeking approval from and consulting the Government before there is any general increase in pithead prices, and the other is the statutory obligation, arising from the Nationalisation Act, whereby it must not give undue preference in the course of settling its coal prices.

Sir G. Nicholson

Can we get this matter clear? Surely the National Coal Board is constantly in unofficial touch with the Government. Surely it does not pursue its policy in complete separation from the Ministry of Power, except in regard to rises in price?

Mr. Maudling

We are in constant consultation with the National Coal Board on all these matters.

Mr. Shinwell

In view of the replies which the right hon. Gentleman has now given to Questions put to him on this matter, would he not like to look at some of the Answers which he has given to previous Questions and compare them? He may realise—I mean no offence by this—that he has misled the House of Commons.

Mr. Maudling

I think that my Answers are consistent both with my previous Answers and with the right hon. Gentleman's own Act.