§ 22. Mr. Pardoeasked the Secretary of State for Industry what estimate he has made of the effect on industry of the 48 per cent. increase in the price of coal for industrial use on 1st April; and what steps he proposes to take to meet the problems caused.
§ The Under-Secretary of State for Industry (Mr. Michael Meacher)It is estimated that these price rises of between 28 per cent. and 48 per cent. from 1st April will produce a revenue for the National Coal Board of £270 million in a full year. The major impact of this will fall on the electricity and steel industries and we are giving urgent consideration to the problems facing these industries.
§ Mr. PardoeBully for the National Coal Board, but will the hon. Gentleman say exactly what effect these increases will have on the wholesale price of home-produced goods in British manufacturing industry?
§ Mr. MeacherThe effect that will be produced on the wholesale price of British manufacturing industry is likely to be relatively small, outside that concerned with electricity and steel. [Interruption.] Let me point out that the rest of industry, apart from electricity and steel, will take only about 10 million tons. An 8 per cent. increase, on average, is expected on charges estimated on top of the increases due to the rise in the electricity industry's oil bill, but this is unlikely to have a major impact on the competitiveness of the electricity industry, because our prices are broadly in line with those or the Continent, which is similarly facing rising costs.
§ Mr. MolloyDoes my hon. Friend agree that while there may be future problems with which we shall have to deal they will be infinitely preferable to having Britain on a three-day week and not having the miners at work? Does he further agree that the end of the three-day week and the return to work of the miners are accomplishments which represent a massive step forward, which any responsible hon. Member should applaud?
§ Mr. MeacherI entirely support what my hon. Friend says. His remarks are both cogent and entirely accurate in the present situation.
§ Mr. EmeryWill the increase subsidise coal prices for the domestic consumer? Would it be right to conclude from the hon. Gentleman's statement that electricity prices, in order to break even, will therefore have to rise by between 38 per cent. and 48 per cent?
§ Mr. MeacherThe previous administration had authorised electricity price increases last year, but the way in which further increases will be handled is a matter for my right hon. Friend the Secretary of State for Energy.