HC Deb 19 July 1976 vol 915 cc1260-1
4. Mr. Patrick McNair-Wilson

asked the Secretary of State for Energy if he is satisfied that sufficient funds are available under existing legislation to enable the National Coal Board to implement to the full the development plans for the industry for the years 1976 to 1980 in line with his stated policy.

The Under-Secretary of State for Energy (Mr. Alex Eadie)

As was explained when the National Coal Board (Finance) Bill was under consideration last December, the present borrowing limits for the board are expected to accommodate its borrowing requirements for about two years. Requirements beyond that will be covered by further legislation that the Government will place before the House in due course.

Mr. McNair-Wilson

Can the Minister confirm that the cost of expanding the industry is now nearly 100 per cent. higher than was estimated two years ago and that the £300 million which was announced by the chairman last month is far and away above the £219 million mentioned in the February White Paper on Public Expenditure? Can the hon. Gentleman confirm that the Government will not affect this programme by any of the public expenditure cuts which are to be announced shortly?

Mr. Eadie

I can confirm that the Government's commitment to the plan for coal holds. We are thoroughly committed to it. It is true that the original estimate of the cost of the plan for coal has been subject to inflation, like anything else. In addition, the National Coal Board has now been able to make a more realistic estimate of the total costs.

Mr. Skinner

Will my hon. Friend also confirm that there is another side to this equation which has not been made public to any great extent? Does he agree that the National Coal Board has handed over about £13 million to the State as a result of the new so-called partnership deal with Gulf and Conoco in the North Sea? Will he also confirm that the NCB has not taken up several million pounds worth of stocking aid grants which could have been taken up in the past financial year? In view of all of this, is it not worth recording that the Government have a further debt to the miners? Would not my hon. Friend do well to lend his support to mine and try to ensure that the miners attain their goal of an earlier retirement age shortly?

Mr. Eadie

That was a long supplementary question, raising some important points. My hon. Friend knows that there have been various conference commitments on the part of the miners to an earlier retirement age and that the Government have said that they are not unsympathetic to this. They believe that men who work in the bowels of the earth should be considered for early retirement in due course. The point about the North Sea holdings of the NCB has been answered on an earlier occasion. The Government have given a firm commitment about the stocking aid grant or any other form of assistance. They have put their money where their mouth is.

Mr. Michael Latham

May I ask whether, as part of the plan for coal, the board is looking seriously at the question of reopening pits which have been closed although resources are still in the earth? If the board has been doing this, may I inquire as to the degree of seriousness in this approach?

Mr. Eadie

There has been, naturally, an examination into the question of new reserves of coal in existing pits. It is more economical and profitable to obtain coal in this way. The board has looked at all aspects of this which would be beneficial to the nation. The coal industry examination gave a specific target for the commitment to coal. I can assure the hon. Gentleman that that policy is being operated.