HC Deb 23 April 1964 vol 693 cc1481-4
19. Mr. Gourlay

asked the Minister of Power when he last had consultations with the Chairman of the National Coal Board about coal prices; to what extent the reduction of certain coal prices in selected areas was discussed; and if he will make a statement.

20. Mr. W. Hamilton

asked the Minister of Power what consultations he had with the Chairman of the National Coal Board about the proposed reduction of 2s. 6d. per ton in the price of coking coal supplied to the steel industry; and, in view of the ability of the National Coal Board to make this price reduction, to what extent he discussed the possibility that the selective coal price increase of 10s. per ton imposed in Scotland two years ago should be discontinued.

21. Mr. T. Fraser

asked the Minister of Power what discussion he held with the National Coal Board about the proposed reduction in the price of coking coal for the steel industry; what information he received as to the estimated total benefit of this concession to the steel industry, and as to whether the price reduction will be uniform in all parts of the country; and what other reductions in domestic or industrial coal prices were proposed.

24. Mr. Millan

asked the Minister of Power what recent discussions he has had with the National Coal Board on their selective coal price increases in Scotland and the effect of these on electricity costs and industrial costs generally.

Mr. Erroll

The Chairman keeps me regularly informed of the Board's thinking on prices, and I understand that its proposals for reductions, which are being worked out, will be confined to coking coal. Although they will benefit the steel industry in Scotland as elsewhere, the Chairman has made it clear that he sees no early prospect of a general reduction in Scottish coal prices.

Mr. Gourlay

Does not the Minister consider that the 2s. 6d. per ton reduction in the price of coking coal announced by the Chancellor last week indicates a considerable improvement in the financial position of the Coal Board, but is he aware that the higher selective prices for coal in Scotland do not act as an incentive to industrialists to expand in the North? Will he, therefore, press the Chairman of the National Coal Board very soon to reconsider that decision and remove the 10s. increase in coal prices in Scotland?

Mr. Erroll

There is no evidence to show that selective prices of coal in Scotland have deterred any industrialists from going north of the Border. The fact remains that the Scottish Division is still not paying its way. I am glad to endorse the views of the Chairman of the National Coal Board on his price policy.

Mr. Hamilton

Does not the right hon. Gentleman welcome this initiative of a nationalised industry in giving an example to private industry in the reduction of prices, but does he recognise nevertheless that, although there may be no firm evidence that industrialists are being discouraged from going to Scotland on this account, it may well be that in marginal decisions the selective price of coal is an influencing factor? Will he make further representations to the Board, particularly in view of representations made to him over a long period by industries in Fife and elsewhere, that the extra 10s. on industrial coal is having a deleterious effect already on industrial development in Scotland?

Mr. Erroll

I can only repeat that I am not aware of what is suggested in the hon. Gentleman's supplementary question. I shall certainly ensure that his views are brought to the notice of my successor at the Board of Trade.

Mr. T. Fraser

Is not the right hon. Gentleman aware that the market for coal is declining quite frighteningly, and does not he agree that customers for the Coal Board are important in all parts of the country? Is not the right hon. Gentleman aware that the discriminatory high prices in Scotland and the North-West are in fact chasing customers away, and has not he read even Press reports of industrialists having left those areas, quite apart from those who have not been attracted into them, because of high prices? In the south of Scotland, particularly, the Electricity Board has explained that the high price of industrial electricity, the highest in the country, is occasioned by the high price of Scottish coal. Does not the right hon. Gentleman realise now that, if he is to protect the economy of Scotland and the North-West, something must be done to bring uniformity into coal prices?

Mr. Erroll

The hon. Gentleman should realise that English coal fields are rather tired of subsidising Scottish coal fields.

Mr. Millan

That last reply in particular will cause a good deal of resentment in Scotland. Will not the right hon. Gentleman, at the very least, promise that he will keep in touch with the National Coal Board on this matter in view of the Government's policy to encourage industry to go to Scotland?

Mr. Erroll

I know that industry is going to Scotland. I also thought that Scotsmen were not afraid of the truth.

Mr. T. Fraser

In my supplementary question I spoke of the Scottish Division and the North-West, which happens to be in England. Is the right hon. Gentleman aware that some of the most economic and profitable pits in Britain are in Scotland?

Mr. Erroll

I was talking of the Division as a whole in Scotland. Of course, there has been a selective price increase in the North-West as well, and for the same reason.

Mr. J. Griffiths

Will the right hon. Gentleman consider very carefully what he has just said, having regard to the position in the coal mining industry? Does he realise that he makes no contribution to good feeling in the industry by setting one district against another? Will the right hon. Gentleman do at least one thing with regard to the 2s. 6d. reduction in the price of coking coal to the steel industry? Will he ensure that none of it is used by the steel companies for anti-nationalisation propaganda?

Mr. Erroll

I do not think that they could afford to do so.