HC Deb 29 April 1974 vol 872 cc752-3
9. Mr. Ridley

asked the Secretary of State for Energy what is expected to be the future annual rate of profit or loss, before interest, achieved by the National Coal Board, taking into account the recent miners' pay settlement and the increase in coal prices; and what is the interest payable annually on the board's capital.

Mr. Eadie

It is too early to make a reliable estimate of NCB's financial out-turn in 1974–75, but, as my right hon. Friend the Chancellor of the Exchequer said in his Budget Statement, the price increases for coal announced in 1974–75 will bring the selling price more nearly into line with production costs. Financial support to the NCB should be reduced to not much more than £50 million. Interest payments by the board during 1973–74 on external loans were £28.7 million.

Mr. Ridley

Is it not extraordinary that the Government cannot tell us whether the National Coal Board will make a profit or a loss or even estimate whether it will do so? Is it not time that the Government allowed the price of coal to reach a proper market level so that the taxpayer may not only cease to subsidise the industry but perhaps receive back some of the huge grants made to it in the past? Why will not the Minister adopt a proper fuel economy based on the market price system?

Mr. Eadie

The hon. Gentleman would have been well advised to address those remarks to his colleagues in the last Government. Any further financial obligation must be taken off the board's profits, which are under examination. The results produced by the board must always be viewed against the background of its past competitive position as against oil, the effects of price restraint policies and industrial action.

Mr. loan Evans

Has my hon. Friend made any calculation about the loss to the board and the country caused by the recent miners' dispute, which was provoked by the last Government? Does he agree that the fact that the miners are back at work and are producing as much coal as ever before shows that they are willing to make a contribution to the economy? Does he also agree that the strike, which was caused by the last Government, resulted in a great deal of harm to the economy?

Mr. Eadie

The loss has been estimated at about £150 million and I welcome this opportunity to say that the industry and the miners have brought about a magnificent recovery in coal production.