HC Deb 09 July 1968 vol 768 cc181-4
1. Mr. Lane

asked the Minister of Power what representations he has received from other large coal consumers about the proposal for a coal-burning aluminium smelter at Lynemouth; and what reply he has made.

The Minister of Power (Mr. Roy Mason)

In view of the commercial considerations involved, I think that any representations should remain confidential.

Mr. Lane

Will the Minister give us an assurance that when coal deliveries to the Lynemouth smelter start other large coal users who get their supplies from the same pit or pits will be able to get them at the same price?

Mr. Mason

I would not give any assurances for three to four years hence, but I can assure the hon. Gentleman that no subsidies are involved in this deal.

Mr. William Hamilton

Is the Minister able to say whether there will be other aluminium smelters fuelled by coal and whether or no a statement will be made about the matter before the Recess?

Mr. Mason

I cannot promise a statement on this matter before the Recess. Negotiations are still proceeding on the two other smelter projects.

Mrs. Thatcher

May I first congratulate the Minister? I hope, for his sake and for the Ministry's sake, that he stays longer in this post than he did in his previous one. May I ask him to look again at the question my hon. Friend asked, since it is crucial in relation to the interpretation of undue preference or advantage in the Coal Industry Act that other buyers of the same quantity, from the same pits, at the same time, should have the same price as the aluminium smelter users?

Mr. Mason

I am obliged to the hon. Lady for her introductory remarks. I personally hope that I shall be able to stay a little longer than on the previous occasion. The National Coal Board is well aware of its statutory duty to avoid, and I quote: any undue or unreasonable preference or advantage".

11. Sir C. Osborne

asked the Minister of Power what information he has obtained as to the price of electricity made available to aluminium smelting concerns in this country, and from international sources the price elsewhere in the world; and if he will make a statement.

Mr. Mason

I have nothing to add to the statement made by my predecessor in reply to the hon. Member for Haltem-price (Mr. Wall) on 6th February last.—[Vol. 758 c. 59.]

Sir C. Osborne

Is the Minister aware that the great hydro-electric plants in Siberia are producing electricity at l/25th of the price being charged by their competitors in the West, and that electricity represents 60 per cent. of the cost of producing aluminium? Before he allows this great capital expenditure in this country, will he look into these two facts and see what their effect is on world markets?

Mr. Mason

I am obliged for that information. I shall certainly look at it, if the hon. Gentleman wishes. He asked about obtaining information from abroad. I must advise him, as did my predecessor, that these contracts are confidential, and we cannot get to know about them.

Mrs. Thatcher

Would the Minister, when considering those facts, also consider taking off the fuel tax on oil for electricity generation for these smelters, because it is thought that they could generate their own cheap electricity without any expensive investment grant or other subsidy if that was done?

Mr. Mason

I cannot give an assurance at this stage, but I will keep the point in mind.

30. Mr. G. Campbell

asked the Minister of Power if he will now make a statement on the siting of proposed aluminium smelters and the supply of fuel or power to them.

Mr. Mason

I would refer the hon. Member to the reply given by the President of the Board of Trade to the hon. Member for Blyth (Mr. Milne) and others on 29th May.—[Vol. 765, c. 1798.]

Mr. Campbell

Does the Minister realise that continuing uncertainty over Invergordon is most unsatisfactory for the North of Scotland; and that the Government clearly did not give proper consideration to all the important factors involved when they made the initial announcement last year?

Mr. Mason

The hon. Gentleman should, I think, direct that question to my right hon. Friend the Secretary of State for Scotland. I am responsible for fuelling the stations but not for fuelling the station that may be in Invergordon.

Mr. William Hamilton

Will my right hon. Friend repeat the assurance of the Minister of State, Scottish Office, last Wednesday, that a statement on the aluminium smelters will be made before the Summer Recess?

Mr. Mason

I cannot give that assurance, because I shall not be making the statement. As my hon. Friend knows, the Board of Trade, the D.E.A. and the Secretary of State for Scotland are all involved, and if a statement affecting Scotland is to be made it will be more proper for my right hon. Friend the Secretary of State for Scotland to make that statement.

Mrs. Ewing

Is the Minister aware that many unemployed persons in Scotland have waited on in the hope of an early announcement, and that many local populations have a real fear of mass exodus unless a decision is announced shortly?

Mr. Mason

The hon. Lady will appreciate that we have announced this redevelopment programme which will result in a new smelter industry in Britain, affecting parts of Wales, the North-East and Scotland.