HC Deb 12 March 1968 vol 760 cc1153-5
1. Mr. Ridley

asked the Minister of Power whether in view of the fact that the National Coal Board's offer to supply coal to Alcan contains undue or unreasonable preference or advantage, he will take proceedings in respect of this breach of their statutory duty.

8. Mr. Geoffrey Wilson

asked the Minister of Power what study he has made of the classes of users which may qualify for preferential prices for coal supplies; and if he will make a statement.

13. Mr. J. H. Osborn

asked the Minister of Power, based on the revised estimates of coal demand for 1971 to 1975, and as result of the proposed reorgani- sation of the coalmining industry in mechanised cheap production collieries, at what price range per ton and per therm at pithead he estimates that coal will be available to the Central Electricity Generating Board, and selected industrial users requiring deliveries in bulk, with a view to implementing a cheap energy policy.

25. Sir J. Eden

asked the Minister of Power what study he has made of the consequences, other than an increase in price to other consumers or a greater deficit to the National Coal Board, which will follow from coal being offered to some users at 3¼d. a therm or below, while the average price is 4.6d. a therm.

53. Mr. William Hamilton

asked the Minister of Power what progress has been made towards the establishment of a pricing structure for the coal industry which would enable the National Coal Board to quote preferential prices to both public and private customers engaging in large and long-term contracts.

The Minister of Power (Mr. Richard Marsh)

I am in consultation with the Board about its price structure.

Mr. Ridley

Would the right hon. Gentleman agree that if an offer 30 per cent. below the published price of coal was made, that would indeed be an undue advantage? If not, would he say what he would consider to be an unfair preference or advantage?

Mr. Marsh

It is not really for me to say. The Act lays this responsibility on the Board. I do not know if the hon. Gentleman has a specific example in mind, but I assure him that I have received no complaints about unfair advantage being given by the National Coal Board.

Mr. Wilson

Would not the right hon. Gentleman agree that the aluminium smelting industry is being offered an advantage?

Mr. Marsh

I will be answering a subsequent Question on the Alcan project.

Mr. Osborn

Is it not essential in a fuel policy that there should be a correlation between the price of a fuel and the volume required? Will not the volume of coal consumed depend on the price of this fuel?

Mr. Marsh

It depends on price and other factors.

Mr. Hamilton

Does my right hon. Friend accept the soundness of the principle implied in Question No. 53?

Mr. Marsh

This is perfectly normal commercial practice.

Mrs. Thatcher

Does the Minister's Answer—that he is in consultation with the industry—mean that no reported contracts can go ahead without his consent?

Mr. Marsh

Bless my soul, no. The pricing policy of the N.C.B. is a complex matter. I said that we are carrying out a full examination, with the Board, of its pricing policy.

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