HC Deb 27 April 1981 vol 3 cc503-4
4. Mr. Gwilym Roberts

asked the Secretary of State for Energy what discussions he has had recently with the chairman of the National Coal Board about the board's investment programme.

Mr. John Moore

I and my colleagues meet the chairman of the NCB frequently to discuss all aspects of the board's affairs. In the context of the recent tripartite talks I agreed to review the board's financial framework, including the appropriate level of capital investment.

Mr. Roberts

According to the Department's figures, the direct aid that is given to the coal industry in Western Germany is about seven times greater than that given to our industry. Although the present relative level of investment may be quite healthy, may not the low level of direct aid that is given to our industry lead in a short time to a level of investment that is much lower in Britain than in our competitor countries? Does the hon. Gentleman agree that there is a real fear in mining areas, such as Cannock Chase, that a lethargic attitude to new investment is being adopted by the National Coal Board because of financial pressures from the Government? Does he accept that that could endanger the industry's future and the retention of mining skills?

Mr. Moore

The hon. Gentleman must not confuse subsidies with long-term investment in the industry. Britain's investment in coal is considerably greater per tonne than it is under any of the subsidy programmes in the coal areas on the Continent.

Mr. Garel-Jones

Will my hon. Friend confirm that perhaps the greatest difference between the British coal industry and the German industry is that the British Government are committed to Plan for Coal and that we have an expanding coal industry with a future? Will he further confirm that the gains in productivity that have been made should be matched by an appropriate closure programme, and that that issue remains part of the tripartite discussion?

Mr. Moore

The last part of my hon. Friend's supplementary question is especially relevant. Plan for Coal relates to closures in the industry, which are a continuing feature of an extractive industry, and to an appropriate level of investment. These are the two equal and legitimate parts of Plan for Coal. We must protect the future of an expanding industry by ensuring that it produces competitive coal for its growing markets.