§ 18. Mr. Warbeyasked the Minister of Power to what extent the estimated fall of 13 million tons in coal consumption in 1959 compared with 1958 is due to decline in exports, displacement of coal by oil, and other factors, respectively.
§ Mr. GeorgeExports and bunkers are likely to be down by 750,000 tons and increased use of oil may account for about 7 million tons. The balance represents the effect of warmer weather and greater fuel efficiency, partly offset by higher industrial activity.
§ Mr. WarbeyAs we have more than 50 million tons of coal in stock in this country and as oil is displacing coal at present at a faster rate than the coal industry can cope with, will the Government take steps at least to restrict the consumption of oil during the transitional period?
§ Mr. GeorgeMy right hon. Friend made the Government position quite clear on this matter on 9th November. We intend to preserve freedom of choice to users.
§ 19. Mr. Warbeyasked the Minister of Power to what extent the production of coal will be reduced in 1960 compared with 1959 by pit closures, cuts in opencast production and other factors, respectively.
§ Mr. GeorgeThere will be a reduction of 4 million tons in opencast, and about 7 million tons in deepmined, output. The latter will come partly from closures made in 1959 and 1960 and partly from concentrations of working and single-shift working at some pits.
§ Mr. WarbeyAs that will still leave about 7 million tons of opencast production and as there is far greater human hardship caused by pit closures than by reduction of opencast working, will the hon. Gentleman reconsider the question of asking the National Coal Board to take further steps to reduce opencast working?
§ Mr. GeorgeThe National Coal Board has already taken very great steps to reduce opencast working. In fact, by next year the production will have been cut by 50 per cent. in two years.
§ 20. Mr. Warbeyasked the Minister of Power whether he is now able to give estimates of the probable total production and consumption of coal in 1960.
§ Mr. GeorgeThe Board intends to reduce deepmined and opencast production to 195 million tons which it hopes will be a little below the level of demand.
§ Mr. BlytonIs the Minister aware that if we have this increase of 5 per cent. productivity this year and if consumption still goes down, the "Revised Plan for Coal" will not be worth the paper it is printed an?
§ Mr. GeorgeWe shall be debating that matter later this afternoon.
§ Mr. WarbeyIn view of the fact that the Ministry's last year's estimates for this year's production and consumption were out by an aggregate of 9 million tons, is there any prospect that these estimates will bear any relation to reality next year?
§ Mr. GeorgeIn last year's demand figures there were many non-recurring items.
Mr. B. TaylorIs the hon. Gentleman aware that for the first forty-two weeks of this year demand was running at only 180 million tons per annum?
§ Mr. GeorgeYes, I am well aware of that, but it does not in any way lessen our confidence in the estimates for next year.
§ 26. Mr. Nealasked the Minister of Power what recent general direction he has given to the National Coal Board to ensure that the production of coal does not exceed demand.
§ Mr. WoodNone, Sir. The Board is taking steps to bring next year's production into line with demand.
§ Mr. NealMay I take it that the Minister agrees that it is imperative that the National Coal Board should sell all the coal is produces instead of incurring further expense by stocking? If so, how does he intend to achieve this very desirable end without a co-ordinated fuel policy embracing all the energy industries in the country?
§ Mr. WoodThe Board's estimates for next year, which no doubt we shall have 18 a chance of discussing soon, envisage that the demand for coal will be slightly above the supply of coal, and, therefore, the objective which the hon. Member has rightly in mind is likely to begin to be achieved.