HC Deb 10 May 1962 vol 659 cc620-3
19. Mr. Willis

asked the President of the Board of Trade what estimates he has made of the effect of higher costs of Scottish coal upon industry in Scotland.

Mr. Erroll

In general, I do not expect the price increases which came into effect on 1st January to have any appreciable effect upon industry in Scotland.

Mr. Willis

Does the right hon. Gentleman not think that this schizophrenic policy of the Government is disastrous for Scotland? What on earth is the use of his trying to attract industry to Scotland if at the same time his right hon. Friend the Minister of Power is driving it away?

Mr. Erroll

I do not accept the implication of that supplementary question, because we are inducing manufacturers to go to Scotland with the aid of the Local Employment Act and because labour is available there. I do not think that this increase in coal prices will have any effect on that at all.

Mr. Lawson

Is the President of the Board of Trade aware that his views as to the effect are certainly not shared by those who control the steel industry in Scotland? They have shown that they are bitterly opposed to the policy imposed on Scotland. Does he not think that the people who run the steel industry in Scotland might know as well as, if not better than, he the facts about their industry, which is the key to the whole prosperity of Scotland?

Mr. Erroll

I realise that the steel industry is more affected by the increase than manufacturing industry where the effect is only about one half of 1 per cent. on costs.

24. Mr. Willis

asked the President of the Board of Trade what representations he has received from the paper-making industry in Scotland concerning increased industrial coal prices.

Mr. Erroll

None, Sir.

Mr. Willis

Scottish Members of Parliament have received representations about this. One mill in my constituency has had £12,500 added to its costs annually as a result of it. Other mills throughout Scotland have had similar sums added to their costs. Does the right hon. Gentleman think it fair to place Scottish industry at this disadvantage compared with its competitors south of the Border.

Mr. Erroll

I am sure that the industry will have had other advantages which it can use to set against the small increase of half of I per cent. in costs brought about by the increase in coal prices.

26. Mr. Steele

asked the President of the Board of Trade what assessment he has made of the effect of this year's selective increases in the price of industrial coal upon his Department's endeavours to stimulate industrial development in areas of high unemployment.

Mr. Erroll

As I told the hon. Member for Edinburgh, East (Mr. Willis) earlier this afternoon, I do not expect the effect of the increase on production costs to be significant. It should not, therefore, impede my efforts to encourage new industry and industrial expansion in development districts.

Mr. Steele

That is not the point. The fact is that these selective coal price increases are taking place in areas of high unemployment. This is quite contrary to the policy being pursued by the right hon. Gentleman's Ministry, which is to give inducements to industry to go to such areas under the Local Employment Act. It seems odd to us in Scotland that the right hon. Gentleman's Ministry should be giving these inducements while another Ministry is making the implementation of his policy more difficult.

Mr. Erroll

When showing a prospective undertaking the advantages of a site in a development district in Scotland, we point out all the advantages, including the possibilities of financial and other assistance, and the firm concerned naturally makes its own calculations about the costs of fuel and other supplies.

Mr. Steele

Why make the position more difficult by making selective increases in coal prices in the very areas that the right hon. Gentleman wants to help?

Mr. Erroll

The increase will have a very small effect on the production costs of most industries likely to be going to Scotland.

27. Mr. Rankin

asked the President of the Board of Trade what representations he has received from Scottish chambers of commerce on the likely effects upon Scottish industry and commerce of this year's selective industrial coal price increases.

28. Mr. W. Hamilton

asked the President of the Board of Trade what representations he has received from Scottish local authorities concerning the probable effects of this year's selective industrial coal price increases upon their efforts to attract additional industry to their respective areas.

Mr. Erroll

I have received no representations from local authorities or chambers of commerce on this matter.

Mr. Rankin

We have received representations on this matter. Does the right hon. Gentleman fully appreciate that the imposition of these selective increases is compelling industries to seek alternative sources of power, such as electricity; and give rise to continual demands for the importation of coal from America at a time when the coal mining industry in Scotland is already heavily hit and thousands of miners face unemployment? Does the right hon. Gentleman think it wise to do this when there is no alternative employment for the displaced miners?

Mr. Erroll

The question of the price of coal in Scotland is for my right hon. Friend the Minister of Power.

Mr. Willis

Do we understand that the Government, in spite of their continual preaching about growing economic rivalry and the necessity for not pricing ourselves out of markets, still think that these increases have no effect?

Mr. Erroll

It depends on the industry, but, generally speaking, they have an insignificant effect. In any case, I should have thought that coal should be paid for at a price approximating to the cost of producing it.

Mr. Jay

Is the right hon. Gentleman saying that he no longer accepts responsibility for reviving employment in Scotland?

Mr. Erroll

I certainly continue to accept that responsibility.