HC Deb 19 March 1979 vol 964 cc1085-6
11. Mr. Jim Lester

asked the Secretary of State for Energy what movements in real coal prices over the next five years are anticipated by his Department.

Mr. Eadie

Coal prices depend on a number of factors, including those of alternative fuels and costs in the industry. Although the Department expects increases in productivity, operating costs will, nevertheless, rise somewhat in real terms.

Mr. Lester

I thank the Minister for his reply. Does he agree that it is in the interests of the industry for it to retain its competitive position in the short and medium-term? What steps is he taking to ensure that that is realised by all involved in the industry?

Mr. Eadie

I endorse what the hon. Gentleman says, and he knows that I have said the same on many occasions. The way for the industry to keep its competitive position is to carry out"Plan for Coal ", the £4,000 million investment, which, incidentally, the NUM executive discussed with the Prime Minister at 10 Downing Street. To achieve more productivity in the mining industry requires more investment—new mines and new machinery.

Mr. Kelley

Is my hon. Friend aware of the enormous subsidies being paid to coal industries in the prinicipal competitor nations in the EEC? That puts the British coal industry at a financial disadvantage. Would the Government be prepared to review their financial support rather more favourably than Conservative Members would?

Mr. Eadie

I understand my hon. Friend's question. He gave us an illustration of the financial help being given, particularly in the EEC, to the coal industry. I hope my hon. Friend agrees with me that the significant point is that, whatever subsidy or financial help we give to our coal industry, it is much less than that given to many others. However, it is staggering that those industries are contracting, while ours is expanding. Britain is becoming more productive and economic. To become more economic, competitive and productive we should invest in the mining industry and make sure that"Plan for Coal"is realised.