HC Deb 13 November 1972 vol 846 cc6-8
4. Mr. Cronin

asked the Secretary of State for Trade and Industry if he will make a statement on his plans to give financial assistance to the National Coal Board.

38. Mr. Eadie

asked the Secretary of State for Trade and Industry if he will make a statement on the result of his consultations with the National Union of Mineworkers and the National Coal Board.

Mr. Tom Boardman

As I said after my talks with the industry, I found them particularly useful and constructive. I hope to present my proposals shortly.

Mr. Cronin

Would the hon. Gentleman bear in mind that on the eve of entry into the Common Market it is becoming urgent that the coal industry should have its accumulated deficit written off and that there should also be a capital reconstruction? Would he bear in mind the practice of West Germany and certain other Common Market countries which give their coal industries subsidies for coking coals for steel, for power stations and for stocking?

Mr. Boardman

Yes, indeed. The hon. Gentleman will probably have read that there have been lengthy discussions within the industry and between both sides of the industry and myself. Those discussions have covered all these matters and I hope that it will be possible to make a statement to the House announcing our decision before too long.

Mr. Eadie

Is the hon. Gentleman aware that the delay in bringing a coal industry Bill before the House is breeding suspicion in the mining industry? Is he aware that in an article in the financial section of the Sunday Times yesterday it was alleged that the Government were playing politics with industry? Is it the Government's intention to play snakes and ladders with this great industry before introducing a coal Bill?

Mr. Boardman

The hon. Gentleman is quite wrong. What the Government are endeavouring to do is to make sure, after consultation with the industry, that we are able to produce proposals to enable the industry itself to become strong and viable and to provide the sort of employment opportunities that I know the hon. Gentleman would wish to see. Those consultations have been lengthy and detailed. Proposals will come forward and we hope that they will be in the best interests of the industry, the nation and the consumer, all of whom are important in this matter. The announcement will be made as soon as possible.

Mr. Ridley

Will my hon. Friend confirm that after we are members of the Common Market the National Coal Board will be free to charge the prices it thinks fit for its coals in the market and that it will be exempt from any Government control of prices?

Mr. Boardman

The controlling factor in the price of coal is what the consumer will pay for it. The constraint on the price of coal is not Government intervention but the resistance of the consumer in the face of competition from alternative fuels.

Mr. Varley

Is the hon. Gentleman aware that it is widely known throughout the coal industry that a statement about the future finances of the industry was prepared and was ready to be made before the Summer Recess and that it was only the Prime Minister's petulant intervention which prevented its being made? Will he confirm that the calendar imposes a timetable on a coal industry Bill, whenever it comes, so that it would be better to have the Bill now so that we may get discussions going and get matters under way?

Mr. Boardman

I am sorry that the hon. Gentleman has repeated remarks that he made to the Press of his view of the reasons why the statement was not made earlier. It was contemplated that a statement would be made before the House rose for the recess. However, in the meantime there were opportunities for full and useful discussions with both sides of industry, and I hope that the hon. Gentleman will believe it right that we should have taken advantage of those consultations. This was the first time that both sides of the industry sat round the conference table with the Government to discuss these matters. I think it right that this should have been done and that the result of those discussions should be considered before a statement to the House.