HC Deb 18 February 1980 vol 979 cc13-4
10. Mr. Ioan Evans

asked the Secretary of State for Wales when he last met the chairman of the National Coal Board, Wales region.

Mr. Nicholas Edwards

I last met the area director, NCB South Wales on 20 November 1979.

Mr. Evans

Did the right hon. Gentleman discuss with the area director the possibility of investment in the Ancit process at the Phurnacite plant in Aberaman, bearing in mind that with the increase in gas and other energy prices there is likely to be an increased demand for this type of fuel? Did he discuss the great difficulty that now faces Wales with the possible closure of Port Talbort and Llanwern, and the effect that that will have on the coal industry in South Wales? Will he use his influence in the Cabinet to prevent these closures from taking place?

Mr. Edwards

We discuss all these issues. The Government are making available to the NCB substantial sums for its investment programme. Its programme for the current year amounts to over £600 million, of which about £250 million is in the form of grants. The increase in oil prices makes it a good deal easier for the NCB to meet some of the problems with which it is faced.

Mr. Best

Will my right hon. Friend pay close attention to the imports of coking coal, which are causing so much concern among the mine workers in Wales? Is he aware that in 1978, 9.2 per cent. of coal consumed at United Kingdom coke ovens was imported, and that the provisional figure for 1979 is 15.7 per cent.? Will he look carefully into that?

Mr. Edwards

An agreement has recently been made between the NCB and the British Steel Corporation which will mean no increase in imports of coking coal in the next year. That will undoubtedly be of considerable assistance to the South Wales industry.

Mr. Alec Jones

Is the Secretary of State aware—if he is not he can confirm this fact when he next meets the NCB—that the agreement between the National Coal Board and the BSC is financed entirely by the NCB, with the Government making no contribution? Does he realise that the agreement provides only one year's respite—just a breathing space—for the two industries and for the South Wales coalfield? If that coalfield is to be viable, providing coal from Aberaman and other places—coal which will be badly needed in the future—there will have to be public investment by the Government.

Mr. Edwards

I have indicated the scale of public investment in the coal industry. I do not think that it is entirely wrong that, on a turnover of about £3,000 million, when oil prices have risen sharply, the National Coal Board should have to meet the cost of the additional subsidy required.