HC Deb 17 January 1967 vol 739 cc14-5
3. Mr. Eadie

asked the Minister of Power if the organisations concerned in retail coal distribution have given him a date when they are likely to report to him arising out of the Prices and Incomes Report of September 1966.

Mr. Freeson

At a meeting earlier this month representatives of the coal trade outlined to my predecessor proposals for pilot scale studies of rationalisation schemes which will shortly be considered by the Central Committee of the Coal Merchants Federation. I shall keep in close touch with developments. In the meantime, a substantial number of schemes for rationalisation and concentration are going ahead.

Mr. Eadie

Is my hon. Friend aware that since 1958, when decontrol was introduced in this industry, the retail margin of profit has increased considerably—indeed, has exactly doubled—whereas the total tonnage distributed has decreased? How does he expect the consumers of this country to be interested in increased production when we have such delays in dealing with very important matters of this sort?

Mr. Freeson

I can only refer my hon. Friend to the Report of the National Board for Prices and Incomes which was issued not long ago and in which the Board stated that it did not consider that the trade was making unreasonable profits.

Mr. Biffen

Would the hon. Gentleman confirm that it is now the policy of the National Coal Board to increase its interest in coal distribution to promote the rationalisation to which he referred in his previous Answer?

Mr. Freeson

It is certainly correct to say that the N.C.B. is extending its activities in this sphere. I believe that it now covers about 4 per cent. of this trade and is in negotiation with one or two major companies with a view to forming an association with them. As I have indicated, considerable rationalisation is going ahead at the present time.

Mr. Hannan

Will my hon. Friend remember that whereas the cost of producing coal has gone up by 28 per cent. since 1958, increased distribution costs have increased by 65 per cent. to 70 per cent.? Will he bear that in mind when giving further consideration to this matter?

Mr. Freeson

I will certainly bear in mind any relevant information that is brought to my attention. However, I must again stress that the National Board for Prices and Incomes stated that it did not believe that the trade was making unreasonable profits.

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