Output

HC Deb 21 February 1967 vol 741 cc1418-21

3. Mr. Rowland

asked the Minister of Power what consultations he has had recently with the National Coal Board about the Board's future level of output and number of collieries required to produce it; and if he will make a statement.

11. Mr. Concannon

asked the Minister of Power what is his policy on the future of the coalmining industry; and if he will make a statement.

13. Mr. Eadie

asked the Minister of Power what consultations he has had with the National Coal Board about the future level of output in Scotland.

21. Mr. Ogden

asked the Minister of Power what studies are being undertaken by his Department into the proper and efficient use of coal as part of the overall power requirements for the period 1968 to 1978; and what consideration has been given to social and economic factors in those studies.

Mr. Freeson

My right hon. Friend is mindful of the concern of hon. Members about the outlook for the coalmining industry and can assure them that the social and economic considerations involved for the various coalfields will be given full weight in the current review of fuel policy.

Mr. Rowland

Is my hon. Friend aware that there is some real apprehension in the coal mining communities about the likely future output of coal? Can he allay these fears by indicating whether it is likely or intended to fall below about 160 million to 170 million tons of coal a year?

Mr. Freeson

No, Sir. It is not possible to give information of that kind at this stage, for the very reasons outlined in answers to the previous Questions, namely, that there is a major study and review in progress with regard to fuel policy. One thing that one can say quite definitely is that the coal industry will remain of great economic importance to this country.

Mr. Concannon

Can my hon. Friend tell me at what point the national interest conflicts with the viability of this industry with regard to the balance of payments?

Mr. Freeson

I can only say that the position of the coal industry and how far it will play a part in the future pattern of fuel consumption in the country must be taken into account along with other requirements which are now being studied as part of the fuel policy review.

Mr. Eadie

Is my hon. Friend aware that in Scotland, for example, coal production has decreased by 5 per cent.? Will he further consider the question of the selective coal price increases which will do a lot to give encouragement and stability to the mining industry in Scotland?

Mr. Freeson

If the National Coal Board wishes to submit proposals to the Ministry on pricing structure it is always open to us to consider them, but we have not received any such suggestions at this stage.

Mr. Ogden

Does my hon. Friend agree that it would be useful, for the confidence of the industry, if emphasis were placed on the social and economic factors involved, rather than leaving the matter to market trends?

Mr. Freeson

I repeat the assurances that I gave earlier. We are very mindful of the social and economic consequences for the areas concerned, but these must not be taken as being the only considerations to be borne in mind in regard to the future of the industry.

Mr. Varley

Has my hon. Friend's attention been drawn to an article in today's Financial Times suggesting that by 1970 the output of coal will be down to 100 million tons a year? If the fall is to be as rapid as that, does not my hon. Friend agree that the social consequences will be quite catastrophic?

Mr. Freeson

Neither I nor any other person in my Ministry can be held responsible for any speculations in the Financial Times or any other journals. I do not know whether the use of the word "catastrophic" is accurate in this context, but I can only repeat that we are very much concerned about the future of the industry and the effect of any changes on the areas concerned.

Mr. Patrick Jenkin

Is it not true that the energy correspondent of the Financial Times is one of the best-informed in this circle, and that the article that he wrote on the Minister of Power disclosed that he had been in closest touch with officials of the Ministry of Power? Is not a great deal of weight, therefore, to be given to the speculation in the article today?

Mr. Freeson

I must return—[Horn. MEMBERS: "Answer."] May I be permitted to answer? I return to the point made in answer to earlier Questions, namely, that any figures concerning the future of the coal industry can be produced only as part of the fuel policy studies now in hand in the Ministry and the industry.

7. Sir G. Nabarro

asked the Minister of Power, in view of coal output of 174 million tons in 1966, or 26 million tons or 13 per cent. below the Coal Board target for 1966, what steps he proposes to take to restore the position in 1967; what are his estimates of coal output this year, of manpower decline, and of exports; and whether he will make a statement.

Mr. Marsh

Coal output in 1966 at 174 million tons was 3 million tons less than consumption, including exports. I understand that output this year is expected to be sufficient to meet all market requirements.

Sir G. Nabarro

But that does not answer any of the questions that I have asked. Will the Minister apply himself to the fact that two independent experts, in the Observer last Sunday and the Financial Times the following day, have reached a conclusion that the coal industry's output will be down to 100 million tons by 1970? As this would involve the displacement of more than 200,000 coal miners, what has he to say to his coal mining Friends behind him? Is he prepared to see the industry wrecked?

Mr. Marsh

I must repeat the point made by my hon. Friend, namely, that I cannot accept responsibility for independent statements made by outside people. At the moment the Government are engaged in a major fuel policy review. We have not yet completed this and therefore are unable to say what the final figures will be. I repeat that on any set of figures there is a very good future in the coal-mining industry for anyone who is prepared to stay in it.