HC Deb 16 April 1962 vol 658 cc23-4
33. Mr. W. Hamilton

asked the Minister of Power whether, in view of the existence of approximately 20 million tons of stocks of small coal suitable for use only by the electricity industry, and in view of the consumption by that industry of several million tons of imported oil, he will use his statutory powers to achieve closer co-ordination of the policies of the power industries.

The Minister of Power (Mr. Richard Wood)

No, Sir. The consumption of coal in power stations was 19 per cent. higher in the first quarter of this year than in that of last year, and their use of oil was 2 per cent. lower.

Mr. Hamilton

Is the Minister aware that, whatever satisfaction he might derive from those figures, the fact remains that the Coal Board has about £80 million worth of capital tied up in the form of this small coal and that the only possible purchaser in this country which can use it is the electricity industry? Is it not an extremely absurd policy that the Minister, as the co-ordinator of the nation's fuel policies, should allow the electricity industry to use foreign exchange to bring in imported oil and at the same time increase the difficulties of the National Coal Board in tying up so much of its capital in this commodity?

Mr. Wood

The success of the coordination is amply shown by the considerable increase in the use of coal in power stations which has taken place this year and in the likely increase in use in power stations throughout the country in the years ahead.

Mr. Nabarro

Is it not a fact that the reserve stocks of power station coal have been reduced by as much as 40 per cent. in the last twelve months, and is not that an admirable reflection of my right hon. Friend's objective policies in this regard?

Mr. Wood

I am very grateful to have the support of my hon. Friend.

Mr. Hamilton

Can the Minister say whether there is any prospect in the next twelve months of the electricity industry taking more of this available stock of small coal from the Coal Board?

Mr. Wood

I think that the electricity industry's consumption of coal is likely to continue to increase in the months and years ahead.

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