§ Q1. Sir C. Osborneasked the Prime Minister when his proposed subsidies for nuclear power will be available for the large-scale aluminium smelting industry; how much these subsidies will cost per annum; and if he proposes to increase the cost to other users or to provide the subsidy from taxation.
§ The Prime Minister (Mr. Harold Wilson)The arrangements now being discussed between interested companies and the generating boards would neither involve an Exchequer subvention nor an increase in the cost of electricity to other users, Sir.
§ Sir C. OsborneDoes the Prime Minister mean to honour the promise which he gave to the Durham miners some time ago that they should have a coal-powered aluminium smelter on the North-East Coast, and would he confirm that, even so, it would take 10 years to make 5,000 extra jobs?
§ The Prime MinisterWhat I said at Durham was that the question of Seaton Carew would be most earnestly considered at the highest level, and this is still being done. There was no suggestion of an aluminium smelter in any public statement when I was in Durham in July. The announcement was made in October. In that statement I said that we were prepared to receive proposals from the National Coal Board if it could produce the fuel at comparable prices with what would be possible from a nuclear power station to enable them to have a coal-fired aluminium smelter project. It was not said at Durham.
§ Mr. MaclennanIs my right hon. Friend satisfied that these proposals of his will not be obstructed by our trading partners in E.F.T.A., in view of the urgent need for locating these new large import-saving industries in this country?
§ The Prime MinisterThere is a need for locating them here, and we are insisting that they be located in development areas. The plans that we have do not in any way contravene the terms of E.F.T.A. or of G.A.T.T. or any other international obligations.
§ Mr. David PriceWould the right hon. Gentleman bear in mind that one of the problems here is the fact that for many years the electricity councils have not been giving an adequate rate tariff preference for continuous users of electricity in heavy industry?
§ The Prime MinisterThe hon. Gentleman will know that in this case the proposal is that a nuclear power station will be built, and the cost of that power 214 station will form the basis for pricing. There is no proposal to have a generally lower price for other industrial users. These are new projects creating new demands for electricity and to meet the additional demand for aluminium in this country over and above the present level.
§ Mr. KelleyIs my right hon. Friend aware that the Chairman of the National Coal Board asserts that the Seaton Carew power station can be built for conventional purposes and produce electricity without any Government subsidy at less cost than nuclear power?
§ The Prime MinisterYes, I am aware of that assertion. This question does not really relate to Seaton Carew. I had to explain about Seaton Carew because the hon. Member got the Durham thing wrong, as we are considering the Durham situation.
It is also the view of the Chairman of the National Coal Board that it will be possible—we have not had detailed plans from him yet—to produce plans for an aluminium smelter using cheap coal supplies competitive with electricity. We shall have to study the proposals when we receive them.
§ Mr. HeathCould the Prime Minister now tell the House precisely what decisions have been reached by the Government concerning aluminium smelters and what undertakings have been given to the firms involved?
§ The Prime MinisterWe are in discussion with the firms, but we have not got their views, for example, about where they would like to see these sited. The position is that under the contracts that they are discussing with generating boards, the users will put up the finance to cover the capital cost of the generating capacity and transmission and make annual payments to cover the operating costs. In return they will receive the most modern type of power station at a price based on the cost of operating that station. That is what they have been told.