HC Deb 12 January 1976 vol 903 cc12-3
11. Mr. Gwilym Roberts

asked the Secretary of State for Energy what study he has made of the potential for the generation of electricity which is based on coal, and coal in conjunction with nuclear fuels; and if he will make a statement.

Mr. Eadie

My Department keeps these questions under constant review. The potential demand for coal for electricity generation was studied in the Coal Industry Examination which reported in 1974 and it will be one of the subjects for consideration in the discussions that my right hon. Friend is arranging to have with the electricity supply industry, the NCB and the unions concerned.

Mr. Roberts

Does my hon. Friend agree that the whole of our future depends on our having an integrated energy policy and that the key to such a policy in the next decade is to bring about a situation in which more and more electricity generation is based on coal, or coal associated with nuclear fuels?

Mr. Eadie

I draw to my hon. Friend's attention the interim report arising from the Coal Industry Examination, in which it is said that total coal demand for the electricity supply industry in the United Kingdom could range up to 100 million tons or more in 1985. That will be the demand for electricity generation. I think that my hon. Friend will agree that the tripartite inquiry gave this matter careful consideration. Its conclusions coincide with the viewpoint that he has put to the House.

Mr. Palmer

Does my hon. Friend agree that the problem in the power stations at the moment is that they have too much coal and not enough load?

Mr. Eadie

It is a fact that there is a surplus of coal at power stations. Incidentally, I am sure that my hon. Friend will agree that that is where the coal should be. There have been times in our history when there has been a greater stockpile of coal than at present. It is a fact that there is a downturn in energy demand and consumption, but, as I have said previously, we believe that the stockpiling of coal is the proper policy. When the upturn in the economy takes place, that coal will be very much needed.

Mr. Skinner

Is my hon. Friend aware that, apart from the effect of the recession, one of the reasons for our stockpiling coal to the extent of about 32 million tons, both distributed and undistributed, is that we are importing coal? Is he aware that one contract is responsible for 40,000 tons of coal being imported and delivered to the Didcot Power Station, in Berkshire? That coal could be replaced by British-mined coal, thereby reducing stocks and saving on the balance of payments. Why does my hon. Friend not get something done about that?

Mr. Eadie

My hon. Friend will recollect that this mater was discussed when we debated the National Coal Board (Finance) Bill a few weeks ago. I then explained, when my hon. Friend the Member for Bolsover (Mr. Skinner) was absent, not through his own fault—

Mr. Skinner

I was at the NEC of the NUM.

Mr. Eadie

I said that it was through no fault of my hon. Friend's. I then explained that the import figures were substantial. Those imports were arranged in a period when it was thought that the coal industry would not be able to meet its capacity. Those contracts were short-term, and it was intended to diminish them as time went on.