§ 24. Mr. Ridleyasked the Minister of Power what is currently the long-term marginal cost of coal at the pit head.
§ Mr. MasonI would refer the hon. Member to the reply given by my hon. Friend the Parliamentary Secretary on 26th July.—[Vol. 769, c. 261.]
§ Mr. RidleyWill the Minister confirm that it is the Government's policy that nationalised industries should charge prices related to long-term marginal costs? Would he further confirm that in the case of the Coal Board these prices are very different from those which are in fact being charged?
§ Mr. MasonLong-run marginal costing is being studied in the current review of the N.C.B.'s present structure, but the hon. Member should be aware that forecasting in this industry is terribly complex because it is subject to a great deal of change and depends on assumptions about productivity, rate of extraction, and, as this is a labour industry, also on the cost of labour.